Post on 26-Sep-2020
Topsil Semiconductor Materials A/SMaterials A/S
LD SmallCap Seminar7 October 2010
100AGENDAAGENDA
Topsil’s markets and market drivers3 Topsil s markets and market drivers
Insulated gate bipolar transistors (IGBTs) fuelling growth
Update on strategy 2010 2012 implementation
3
7
14 Update on strategy 2010-2012 implementation
Appendix: Topsil in brief
14
19
LINDEGAARD ANDERSEN (CEO)+45 2170 8772, KLA@TOPSIL.COM
JENS CHRISTIAN NIELSEN (CFO)+45 2010 2320, JCN@TOPSIL.COM
10-10-07COMPANY PRESENTATION Page 2
100THE FOUR TOPSIL GROUP MARKETSTHE FOUR TOPSIL GROUP MARKETS
Source: Yole Developpement and the Topsil Group, 2009
Revenue split for Topsil Group (2009)90% 3% 2% 5%
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100PRODUCT RANGE MATCHES THE MOST SIGNIFICANT GROWTH DRIVERSPRODUCT RANGE MATCHES THE MOST SIGNIFICANT GROWTH DRIVERS
• According to Yole Developpement, annual growth rates in the Topsil G ’ f i d k f 2009 20 2 ill bGroup’s four semiconductor markets from 2009 to 2012 will be between 8% and 20% (CAGR)
CAGR f h P k i d b 11%• CAGR for the Power market is expected to be 11%• Above 3.3kV: 9% for NTD-based components used e.g. for the distribution of energy, a
not so cyclical segment
• 2kV-3.3kV: 15% for NTD and partly for other substrates used in e.g. industrial or 2kV 3.3kV: 15% for NTD and partly for other substrates used in e.g. industrial or transport applications or in wind turbines
• 1.2kV-1.7kV: More than 15% for PFZ, and in some cases also CZ-EPI and CZ used in industrial applications, medical equipment and the automobile industry
• Less than 900V: Around 10% for applications based mainly on CZ substrates• Less than 900V: Around 10% for applications based mainly on CZ substrates
• Core products FZ-NTD, FZ-PFZ and CZ-EPI expected to generate the highest growth rateshighest growth rates
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100MARKET DRIVERS
• INDUSTRY:Focus on energy-efficient solutions in industry, e.g. industrial motors (”Smart power”)
MARKET DRIVERS
gy y, g ( p )
• TRANSPORTATION & AUTOMOTIVE:Movement towards more efficient and more climate-friendly transport of people and goods including electric vehicles
• ENERGY:• ENERGY:New investments in infrastructure and integration of new energy sources in existing grids
Projected world energy consumption, 1990-2030
10-10-07COMPANY PRESENTATION Page 5
100TRANSITION FROM TODAY TO TOMORROW
Today Tomorrow: Decentralised network with more power variation
TRANSITION FROM TODAY TO TOMORROW
Gas l t Coalplant Coal
plant
Transmission Network
Source: Yole Developpement and Topsil
= Distribution Network
Page 6COMPANY PRESENTATION 10-10-07
100
Topsil’s markets market drivers3 Topsil s markets, market drivers
Insulated Gate Bipolar Transistors (IGBTs) fuelling growth
Update on strategy 2010 2012 implementation
3
7
14 Update on strategy 2010-2012 implementation
Appendix: Topsil in brief
14
19
10-10-07COMPANY PRESENTATION Page 7
100IGBTs BASED ON SILICON KEY ELEMENT IN ELECTRICAL APPLICATIONSIGBTs – BASED ON SILICON, KEY ELEMENT IN ELECTRICAL APPLICATIONS
Manufactured on the basis of FZ or CZ silicon, IGBT modules are an integral part of e g :of e.g.:
• Industrial motors• Pumpsp• Ventilators• High speed trains• Hybrid vehicles• Solar panels
Photos: Yole Developpement and www.eng.wikepedia.org
• Solar panels• Wind turbines• The Grid (Energy transmission)
The insulated gate bipolar transistor (IGBT) functions as the speeder or electronic
brain in various high power applications
)
10-10-07COMPANY PRESENTATION Page 8
100ESTIMATED MARKET VOLUME FOR SILICON WAFERS IN EV/HEV APPLICATIONS
IGBT, PFZ medium voltage
ESTIMATED MARKET VOLUME FOR SILICON WAFERS IN EV/HEV APPLICATIONS
140 000
160 000
180 000 Market volume for Si wafers in EV/HEV
80000
100 000
120 000
size (U
nits)
20 000
40 000
60 000
80 000
Market s
2008 2009 2010 2011 2012 2013 2014 2015
8" (Units) 0 2 150 10 192 28 713 55 798 98 505 132 259 163 439
0
20 000
6" (Units) 73 817 72 699 72 570 76 665 53 480 30 942 12 391 0
Source: Yole Developpement, 2009
Page 9COMPANY PRESENTATION 10-10-07
100
ESTIMATED MARKET SIZE FOR IGBT MODULES USED IN RAIL TRACTIONESTIMATED MARKET SIZE FOR IGBT MODULES USED IN RAIL TRACTION
$
IGBT, NTD, very high voltage
$300M
$350MIGBT modules for rail transportation market size (M$)
6.5kV
4.5kV
$200M
$250M
et size (M
$) 3.3kV
2.5kV
1.7kV
$100M
$150MMarke
$M
$50M
$M
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Yole Developpement, 2009
Page 1010-10-07
100ESTIMATED MARKET SIZE OF IGBT + DIODE PACKS FOR PVESTIMATED MARKET SIZE OF IGBT + DIODE PACKS FOR PV
$800 M
IGBT, PFZ medium voltage
$600 M
$700 M
$IGBT Pack market size for PV business
$400 M
$500 M
Market (M$)
$100 M
$200 M
$300 M
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
IGBT pack market (M$) $32.9 M $47.9 M $81.5 M $108.5 M $132.4 M $161.2 M $209.4 M $272.2 M $345.4 M $424.0 M $538.4 M $683.7 M
$ M
$100 M
Yole Developpement 2009: Based on full-bridge IGBT pack with: 2-legs, single-phase for small inverters and 3-legs, 3-phases for med & large inverters
Page 11COMPANY PRESENTATION 10-10-07
100
ESTIMATED MARKET SIZE FOR IGBT DIODE PACKS FOR WIND TURBINEESTIMATED MARKET SIZE FOR IGBT + DIODE PACKS FOR WIND TURBINE
$35M
IGBT, PFZ medium voltage
$30 M
$35 MIGBT pack market for wind turbines
$20 M
$25 M
Market (M
$)
$10 M
$15 M
$M
$5 M
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
6‐pack market (M$) 9.85 M$ 12.48 M$ 11.16 M$ 11.68 M$ 13.02 M$ 13.51 M$ 15.64 M$ 16.46 M$ 20.30 M$ 23.91 M$ 25.28 M$ 26.88 M$ 31.51 M$
$ M
Source: Yole Developpement, 2009
Page 12COMPANY PRESENTATION 10-10-07
100
ESTIMATED MARKET SIZE FOR TRANSMISSION OF ENERGYESTIMATED MARKET SIZE FOR TRANSMISSION OF ENERGY
$80MIGBT, NTD, high + very high voltage
$60M
$70M
$80MMarket for Thyristor & IGBT packs in HVDC
IGBTMarket (M$)
$40M
$50M
$60M
t size in M
$
IGBT Market (M$)
Thyristor Market (M$)
$20M
$30M
$40M
Market
$M
$10M
$
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Yole Developpement, 2009 HVDC: High voltage direct current
Page 13COMPANY PRESENTATION 10-10-07
100AGENDAAGENDA
Topsil’s markets market drivers3 Topsil s markets, market drivers
Insulated gate bipolar transistors (IGBTs) fuelling growth
Update on strategy 2010 2012 implementation
3
7
14 Update on strategy 2010-2012 implementation
Appendix: Topsil in brief
14
19
10-10-07COMPANY PRESENTATION Page 14
100
STRATEGY 2010 2012 SEIZING THE OPPORTUNITYSTRATEGY 2010-2012 – SEIZING THE OPPORTUNITYSituation Opportunities Strategy chosen Objectives
Market growth
Access to raw material &
Expansion
Four strategic focus areas1 – Improve Topsil’s customer satisfaction 2 – A stronger Cemat3 – Reduce Topsil’s costs4 – A stronger financial position for the group
•Significant expansion of competitive position Access to raw material &
competitive prices
rela
ted
during the strategy period
•Build up scalable production capacity, capacity to be increased
New customer contracts(increased volumes)
Clo
sely
capacity to be increased by four to five times
•Profitable growth –EBITDA margin of at l t 25% b th d f
Customer requirements: • Reduced costs• Stable quality• Shorter production time
Improvements & expansion
The Topsil Group:• Greenfield (Topsil)• Wafering (Cemat) • R&D (8”)
least 25% by the end of 2012
• Increased automation
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100NEW FUTURE PROOF FLOAT ZONE MACHINES INSTALLEDNEW FUTURE PROOF FLOAT ZONE MACHINES INSTALLED
• Installation completed June 2010• Installation completed June 2010.
• Tested and running according to plan.
• New pullers improved in a number of ways, compared to earlier models.New pullers improved in a number of ways, compared to earlier models.
• Designed to be able to manufacture 8’’ FZ wafers.
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100GREENFIELD – PLANNING PROGRESSES AS SCHEDULEDGREENFIELD – PLANNING PROGRESSES AS SCHEDULED
md 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Financing, sketch, site 4Financing ok ‐ Green light 2
Greenfield time schedule 2010 2011 2012
VVM screening 3Local community plan 9Project approval by authorities 6Engineering and procurement 6Erection of building 7Erection of building 7Clean room and installations 5Machines in (FZ, etch, mechanical) 1Moving and closing old site 5
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100TOPSIL TO MEET INCREASING DEMANDTOPSIL TO MEET INCREASING DEMAND
• Positive market outlook to continue for the coming years
• Share issue completed + New bank arrangement with committed loan facilities for three years
• New machinery to secure increased level of activity in 2011, overlapbetween existing and new facility in 2012
• Topsil to accommodate to continuous growth, both in terms of equipment and in terms of human resources, including training
10-10-07COMPANY PRESENTATION Page 18
APPENDIX
Topsil in briefp
07-10-2010COMPANY PRESENTATION Page 19
100TOPSIL – A NICHE PRODUCER OF SILICON FOR THE SEMICONDUCTOR INDUSTRYINDUSTRY
• +50 years’ experience in the processing of silicon to the semiconductor industry
• Strong position within the production of float zone (FZ) and since 2008 czochralski (CZ) silicon
• Sells mainly to semiconductor markets, the Power market, MEMS, Optoelectronics & detectors as well as RF electronics / IPD, a market totalling USD 1.3bn or around 10% of the total silicon market for the semiconductor industry (2009)
• Favourable position among the four largest suppliers of silicon with a global market share of 7% of the Power market
• Professionalism and technological weight as core competencies
• Strong customer and supplier relations
Ni h l t t f i hi h/ di d t • Niche plus strategy focusing on high/medium power products for selected customers
• Long-term contracts running until the end of 2015 and 2017 with the only two producers of the FZ raw material (polysilicon)(polysilicon)
• Long-term contracts running until the end of 2015 with the largest and most important customers, ensuring a significant part of revenue
10-10-07COMPANY PRESENTATION Page 20
100
GROUP OVERVIEWGROUP OVERVIEW
• Production based on FZ technology
The Topsil Group
TOPSIL Semiconductor Materials A/S
(Denmark)
gy• Head office with administrative functions• Development of FZ-based production• 82% of 2009 revenue – about 100 employees
Cemat Silicon S.A.
100%
• Production based on CZ technology and in-house production of CZ and FZ wafers
(Poland)
53%
• Development of CZ-based production• 15% of 2009 revenue – about 220 employees
Cemat 70 S.A(Poland)
• Property company – non-core activity – held for sale• 47% owned by the Polish state (24.7%), SPEC (9.4%) and other
private investors (12.9%) • Earnings and cash flow neutral - 55 employeesg p y
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100
FROM SAND TO HIGH END PRODUCTFROM SAND TO HIGH END PRODUCT
FZ
CZ
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100THE TOPSIL GROUP’S SILICON IS USED AS CRITICAL COMPONENTS IN NUMEROUS SMART POWER SOLUTIONSNUMEROUS SMART POWER SOLUTIONS
M k t f hi h / hi h d hi h i ti it L d di k t
FZ market CZ market
• Market for high / very high power and high resistivity • Low and medium power markets
• High-volume, low-cost market
Topsil Group revenue by product, 2009
NTD NTD
PFZ
CZ+Epi
CZ67%
10%
6%
PFZ7%
HPS 10%
Source: Yole Developpement and The Topsil Group, 2009
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100TOPSIL IS DEDICATED TO HIGH PERFORMANCE DEVICES
• Low to medium power
• High volumes and strong price
• High and very high power with high resistivity
g pcompetition
NTD CZ
• Low and medium power
• High Power• Increasing
CZ EPI PFZ
power• High volumes and price competition
proliferation of medium power products
Source: Yole Developpement, France
10-10-07COMPANY PRESENTATION Page 24
100THE GROUP IS ONE OF FOUR LARGE PLAYERS IN THE POWER MARKETTHE GROUP IS ONE OF FOUR LARGE PLAYERS IN THE POWER MARKET
• Topsil has a substantial share of the FZ market and ranks as number
Revenue in the Power market, 2009
four in the Power market with a global market share of around 7%
• Management believes Topsil has won substantial market share
250
300
won substantial market share during the past few years
• The CZ segment is more competitive while CZ-EPI is more of
150
200
US
Dm
pa protected niche segment
• The industry (especially the FZ market) is characterised by the
d t ’ l lif l d
50
100
products’ long life cycles and significant switching costs / barriers to entry in terms of quality
0
Source: Yole Developpement, 2009
Revenues SOI 09 Revenues FZ 09 Revenues CZ 09
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100LONG TERM SUPPLIER AND CUSTOMER AGREEMENTS SIGNIFICANTLY INCREASE THE CERTAINTY OF FUTURE PROFITABILITYINCREASE THE CERTAINTY OF FUTURE PROFITABILITY
Suppliers CustomersValue chain
INGOTFloat Zoning(pulling the crystal)
WAFER• Cutting• Lapping • Etching
IRRADIATIONTopsil has app.10 reactorPartner
Two global suppliers of FZ raw
Around 100 FZ customers, the three largest account for
In DKCore Tech. basis
• Etching• Polishing
Partner Contracts Worldwide
materialworldwide
around 60% of aggregated FZ volume
Suppliers
• Long term agreements with both global suppliers of FZ silicon (2010-2015/2010-2017), supporting customers’ extensive growth plans, offering guaranteed prices and the ability to offer the widest FZ range of all FZ suppliers
Customers
• Long term sales contracts on both minimum volumes and pricing with our six largest customers for 2010-2015
• Contracts add up to around 40% of Topsil Group’s forecast revenue for 2010 more than three times • Contracts add up to around 40% of Topsil Group s forecast revenue for 2010,more than three times the amount of previous contracts
• Beyond the minimum levels, the contracts signal strong confidence and commitment from the customers
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