Oerlikon as a supplier of Green Technologies –market position and growth potentials

Dr. Uwe Krüger, CEO OC Oerlikon Management AG, Pfäffikon

Solar Day, Trübbach 13. Juni 2007

Vision

Solar power everywhere: we are entering the mass market with innovative and industrial production solutions for the utilization of solar energy. Oerlikon Solar isessentially contributing to making solar power a main energy source of the future.

Oerlikon is the world‘s first supplier that is able to deliver production plants for thinfilm silicon solar modules – here and now!

Reality

Five segments and fields of competence of the Oerlikon Group

Systems(Data Storage & Wafer Processing)

Solar

ServicesCoating

Fibers & Nonwoven

Filaments

Staple Yarn

Twisting & Embroidery

Oerlikon Textile Components

Business Units

Optics

Space

Solutions

Assembly Equipment

SystemsVacuum

Services

Gears & Components

Automotive Transmission

Off-Highway Drivelines

Oerlikon FairfieldDrive Systems

Segments Oerlikon Coating Oerlikon AssemblyEquipment

Oerlikon Vacuum Oerlikon Drive Systems

Oerlikon Textile

Importance and growth of renewable energies

Solar energy has the greatest advantages

Advantages

Dis-advantages

• Constantlyavailable(irrespective of sun and wind)

• Little change in landscape

• Low spacerequirement

• Cannot be usedeverywhere

• Great cost• Risk of

earthquakesthrough drilling

(Basel)

• Only works withwind

• Noise emission• High investment• Large

installations(change in nature)

• High investmentcosts

• Submersion of biotopes and useful space

• Disruption of biologicalequilibrium

• In poorcountries: displacement of resourceproduction of local life (biomassproduction)

• Increased outputof nitrous oxide(fertilisation and combustion of biomass)

• In some cases, still lowefficiency

• Low operating & maintenancecosts

• No follow-oncosts

• Simple technology

• High efficiency

• Constantlyavailable

• Recycling

• No pollutantemissions

• Surpluselectricity can bestored

• Low maintenance & operating costs

• Integrates intoenvironment

• Long life of systems

Geothermal energy Wind Water Biomass Solar

Multiple applications for solar technologyFe

atur

esA

pplic

atio

ns

Not connected to the electricity supply grid

Near settlements (189 MW)* Everywhere (322 MW)*

Connected to the electricity supply grid

Distributed (2,417 MW)* Centralized (51 MW)*

Small domestic systems (>1 km from supply grid)Above all in developing countries0.5–1 kW

Use in undeveloped regions

0.1–1 kW

Energy supply of buildings

0.4 - 100 kW

Power stations for production of alternative energy

500–5,000 kW

Villages (e.g. street lighting, schools)Households(e.g. lighting, refrigerators)

Commonly used electronic devices(e.g. calculatorsAgriculture(e.g. water pumps)Space/high-tech

“Normal” house roofsCommercial buildingsPhotovoltaic system integrated into building

Power stations

Source: IEA, Sarasin, Lit. research, Expert interviews (Global installed PV power 2004)

0

100

200

300

400

500

600

700

800

900

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

annu

ally

inst

alle

d ca

paci

ty M

Wp

USAJAPANGERMANY

828

290

103

Global Market 2005: dominated by Germany, Japan, USA

Global production 2005: 1,400 MWp(= 1.4 GWp)Germany, Japan, USA: 1,200 MWp

USA

Japan

Germany

103

290

828

Price development for photovoltaic modules in $ per Watt

Source: MRS Bulletin, Vol.30, No.1,Jan 2005

„Distributed fossil fuel“ refers to off-grid generation of power, using forinstance gas-driven generators.

Solar economy creates new jobs

By 2025: around 3.2 million jobs

Production: 490,000

Maintenance: 900,000

Installation & trade: 1.8 mill.

Chance for Europe as high-tech productionlocation since already exceptionally well positioned

Source: “Solar Generation”, Greenpeace 2006

Different technologies for solar power generation

WaferThinfilm silicon CompositionRaw materialApplications

Cost advantage Higher efficiency

0,002 mm silicon layerProcessgas Silan, 200 times less SiLarge surface, solar powerplants

0,3 mm silicon waferultrapure silicon waferSmall surfacees, roofs

Thin film solarmarket with strongest growth

Primary Energy

Renewable Energy

Solar PV

Si Thin Film

Thin Film Equipment

Market growth per year(CAGR 2006 - 2009)

~ 2 %

~ 5 %

~ 50 %

> 50 %

> 50 %

Leading technology supplier of thin film silicon solar modules

First research facility delivered to Schott Solar

Cooperation with Schott Solar: Development of a-Si modules

Contract for the first 40 MWp production facility for Schott Solar

Contract for the first 20 MWp production facility for ERSOL

Raising of ERSOL-Contract up to 40 MWp

First jointly developed TCO-System for ERSOL

Delivery of the first production facility to ERSOL

Launch of ERSOL production facilities

Official opening of ERSOL production facility

End of 20042005 - 2006March 2006March 2006Sept. 2006Sept. 2006Dec. 2006March 2007June 2007

Milestones

Oerlikon is the single supplier of turnkey solutions

Clean TCO Laser PECVD TCO AssemblyLaser Laser

Oerlikon Solar's growth strategy

Proactive, aggressive marketingGlobal market presence

Maintenance and development of technology leadershipMarket leadership with market share > 50 %Annual growth rates significantly above market average

Huge expansion of own production capacitiesExpansion of existing staff to 300 (by 2008)Implementation of a research production line (by end 2007)

Increase in efficiency of solar modulesDevelopment of new solar module conceptsIncrease in production efficiencyTechnology

Production

Marketing & Sales

Targets

Oerlikon – supplier of green technologies

Oerlikon Leybold VacuumDevelops and builds vacuum solutions for the solar industry(wafer-based and thin film technology)

Bild folgt

Oerlikon TextileIntroduction of the e-save® program for sustainableenergy savings in textile production machines

Oerlikon Balzers CoatingCoatings in the automotive sector

10 times longer life of components4% less fuel consumptionElimination of polluting lubricants

Oerlikon – supplier of green technologies

Oerlikon SpaceDeveloper and fitter for various satellite programsfor researching climate changes on our planet

Oerlikon SolarDevelops and builds turnkey end-to-end systemsfor thin film solar production systems

Leading researcher and developer in thin film silicon solar technology

Oerlikon Fairfield Drive SystemsDevelops and builds transmission systems forleading manufacturers of wind power systems

Summary

Market demand in the long term will be greater than the supply capability of the suppliersOerlikon Solar is exceptionally well positioned as a technology leader and isexpanding this field of business at a rapid pace.

Oerlikon is the world‘s first supplier of the thin-film silicon process, which canprovide users with industrially ready, turnkey production plants. The use of solar energy presents completely new prospects.

Among the renewable energies, solar energy plays a key role. It has thegreatest potential and has no disadvantages.

The switch to renewable energies has already started – climate change and finiteness of fossil resources demand action. The switch

has started

Key position

of solar energy

Oerlikon as first mover

Economicsuccess

The technologies to handle the arisingchallenges of climate change are already

available – Oerlikon Solar