Topsil Semiconductor Materials A/S · The insulated gate bipolar transistor (IGBT) ... MEMS,...

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, [email protected]

JENS CHRISTIAN NIELSEN (CFO)+45 2010 2320, [email protected]

10-10-07COMPANY PRESENTATION

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%

10-10-07COMPANY PRESENTATION 10-10-07COMPANY PRESENTATION Page 3

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


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


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

COMPANY PRESENTATION 10-10-07

100

Topsil’s markets market drivers3 Topsil s markets, market drivers

Insulated Gate Bipolar Transistors (IGBTs) fuelling growth


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7



14

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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

)


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


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


10-10-07

100ESTIMATED MARKET SIZE OF IGBT + DIODE PACKS FOR PVESTIMATED MARKET SIZE OF IGBT + DIODE PACKS FOR PV

$800 M


$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


100

ESTIMATED MARKET SIZE FOR IGBT DIODE PACKS FOR WIND TURBINEESTIMATED MARKET SIZE FOR IGBT + DIODE PACKS FOR WIND TURBINE

$35M


$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



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


100AGENDAAGENDA

Topsil’s markets market drivers3 Topsil s markets, market drivers

Insulated gate bipolar transistors (IGBTs) fuelling growth


3

7



14

19


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


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.


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


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


APPENDIX

Topsil in briefp


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


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


100

FROM SAND TO HIGH END PRODUCTFROM SAND TO HIGH END PRODUCT

FZ

CZ


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


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


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


Revenues SOI 09 Revenues FZ 09 Revenues CZ 09


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


Topsil Semiconductor Materials A/S · The insulated gate bipolar transistor (IGBT) ... MEMS,...

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