silicon & wafer solar cell& module thinfilm semiconductor · r&d thin film research and...

Annual Report 2008March 31, 2009

Silicon & Wafer

Solar Cell & Module

Thin Film

Semiconductor

2centrotherm photovoltaics AG Annual Report 2008

Disclaimer

We have exercised utmost care in the preparation of this presentation. It contains forecasts

and/or information relating to forecasts. Forecasts are based on facts, expectations, and/or

past figures. As with all forward-looking statements, forecasts are connected with known and

unknown uncertainties, which may mean the actual result deviates significantly from the

forecast. Forecasts prepared by third parties, or data or evaluations used by third parties and

mentioned in this communication, may be inappropriate, incomplete, or falsified. We cannot

assess whether information, evaluations, or forecasts made by third parties are appropriate,

complete, and not misleading. To the extent that information in this presentation has been

taken from third parties, or these provide the basis of our own evaluations, such use is made

known in this report. As a result of the above-mentioned circumstances, we can provide no

warranty regarding the correctness, completeness, and up-to-date nature of information taken,

and declared as being taken, from third parties, as well as for forward-looking statements,

irrespective of whether these derive from third parties or ourselves.

Rounding differences may arise.


1. Highlights 2008

4. Financial Results

3. Research and Development

2. Market Development

5. Outlook

6. Appendix

Contents


Contents

1. Highlights 2008




5. Outlook

6. Appendix


Highlights 2008

� Sales: € 374.7 million (+125.4%)

� EBITDA margin: 15.3% (previous year: 12.9%)

� EBIT*: € 55.7 million (+163.8%)

� Consolidated net income: € 34.6 million (+154.0%)

� Capital increase completed (in cash and in kind)

� Integration of affiliated company centrotherm thermal solutions GmbH & Co. KG

� Strengthening of world-wide presence

� New products successfully launched: Vent Gas Recovery System, new optical

measuring systems

� March 2009: “First silicon out” in Asia

*before purchase allocations


Key Figures Summary

€ 21.5 million

(Margin: 12.9%)

€ 57.5 million

(Margin: 15.3%)EBITDA

€ 1.36€ 2.06Earnings per

Share

€ 21.1 million

(Margin: 12.7%)

€ 43.5 million

(Margin: 11.6%)EBIT

€ 168.7 million€ 383.7 millionTotal Output

€ 166.2 million€ 374.7 millionSales

20072008

Margins referring to sales


Update on Order Book (1)

326

463

677

9781,005 990

0

200

400

600

800

1,000

1,200

Development of Order Book

in million €

Order book contains:

� Silicon: 6 orders

(capacity: 16,700 tons)

� Solar cell: 36 turnkey lines

(capacity: 1,355 MWp)

� Thin film: 1 turnkey line

(capacity: 30 MWp)

Order intake in Q4 2008: € 123 million

New orders in January / February 2009:

(ad hoc preliminary figures): € 320 million

� Silicon: 1 order

(capacity: 2,500 tons)

� Solar cell: 2 turnkey lines

(capacity: 100 MWp)

� Thin film: 1 turnkey line

(capacity: 50 MWp)

03/0812/07 06/08 09/08 09/07 12/08


Update on Order Book (2)

Solar cell:

€ 445 million (44.9%)

Thin film:

€ 49 million (4.9%)

Silicon:€ 496 million (50.1%)

Total:

€ 990 million

Split by Business Segments as of December 31, 2008


Stability of Order Book

Split by Project Classification as of December 31, 2008

A-Projects: Orders under transaction

B-Projects: Secured by prepayments / LC‘s

C-Projects: Firm orders

Total:

€ 990 million

B-projects

€ 595 million

A-projects

€ 203 million

C-projects

€ 192 million

38

406

193

907511

177

0

100

200

300

400

500

Solar cell Thin film Silicon

C-Projects

B-Projects

A-Projects445496

49

Split by Project Classification per Segment as of December 31, 2008

in million €

Solar cell Thin film Silicon


Contents

1. Highlights 2008




5. Outlook

6. Appendix


Market Development

0

10

20

30

40

50

60

70

80

90

100

110

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022

subsidy driven consumer grid parity off-grid utility grid parity

bright futurePV = established

industry

reduced cost

sunny take-offwave of start-ups

start of mass production

silicon shortage

high margins

consolidation

phaseindustry

consolidation

price decline

GW production volume

grid parity consumer

take-off

grid parity utility

take-off

centrotherm photovoltaics AG

Market & Technology Research


Can projects be generated now?

Preparatory Stage

1 Year

1. Initial discussion

2. Preparation Business Plan

3. Financing conversation A

4. Draft contract

5. Signature supplier

6. Financing conversation B

7. Possibly consultation

8. Counter-signature customer

9. L/C / Downpayment

10. Acceptance for order backlog

1. Year

Solar Cell

Thin Film

Silicon

2. YearsProject

Start3. Years

Example of project execution


Unique supplier along PV value chain

Capturing / access to over 70% of the “capex pie”

Main Competitors: Applied Materials, GT Solar, Roth & Rau as an example

Crystalline solar value chain

SiliconIngot/

WaferCell Module

Turnkey

Production

Plants

Turnkey Lines

Key

equipment

Key

equipment

Services Services

CIGS CdTe a-Si

Thin-film

Turnkey Lines

Key

equipment

Services

centrotherm

2007A industry

capex split¹ 33% 25% 27% 5% 10%

¹ Solarbuzz, March 2008

“Industry sweet spot”

Strong market presence No market presence

Fab

engineeringFab

engineering

Turnkey Lines


Contents

1. Highlights 2008




5. Outlook

6. Appendix


Research and Development

Research and development expenses 2008: € 16.8 million

R&D ratio: 4.5%

� More than 100 employees are working in R&D-centers in Blaubeuren, Constance and

Burghausen

� Close cooperation with universities and institutes


Silicon: Polysilicon Production Plant

Vent Gas Recovery Unit

� Treatment of vent gases

� Capacity: 2,500 t/a polysilicon

� Highest recovery rates

Reactors & Coverters

� High capacity

� High purity

� Low energy

� Conversion of silicon tetrachloride to

trichlorosilane

� Cost efficient process

Products & Services:

- Fab design & engineering

- Key equipment

(CVD reactors & STC-TCS converters)

- Technology


R&D Silicon

Research and development expenses totaled at € 4.6 million in 2008

� Process optimizations in polysilicon production:

� Higher output

� Lower energy consumption

� Optimized CAPEX

� Crystallization processes:

� Large ingot yield

� Shorter cycle times

� Cost reduction

� Next generation CVD reactors

� Higher production capacity

� Higher efficiency

� Increased cost-effectiveness


Solar Cell: Crystalline Solar Cell Turnkey Line

Wafer Inspection System

Quality control and sorting of raw

solar wafers in terms of

� Geometry

� Mechanical stability

� Resistivity

� Thickness

� Carrier lifetime

Process Equipment

� Direct plasma nitride layer

� POCL diffusion

� Highest process performance

� Low cost of ownership

� Processes: diffusion, oxidation, PECVD,

LPCVD and annealing

� Market leadership

Inspection System

� Inline system

� Checking optical quality of metal

print pattern

� Direct feedback to the operator

Conveyer Furnaces

� Inline solar cell production

� Highest throughput

� Low cost of ownership

� Different types for: drying (type HTO), sintering

(type FF) or combination (type FF-HTO)

� Market leadership

Efficiency:

Mono-crystalline:

18+%

Multi-crystalline:

16.6%

Yield:

96%


R&D Solar Cell


� Next solar cell generation

� New design for front and back side

� Alternative process routes

� Improved process sequences

� Target: Increasing efficiency

� Mono-crystalline: 18 to 18.5%

� Multi-crystalline: 16.6 to 17%

Key figures FlexLine Plus

Evolutionary development: Selective Emitter Technology

Output: 60 MW

Efficiency: Mono-crystalline: 18%, Multi-crystalline: 16.6 %


Thin Film: Thin Film Turnkey Line

Sputter Equipment

Deposition of:

� front contact (Zinc Oxide)

� metal back contact (Molybdenum)

� absorber film (Copper-Gallium-Indium)

Selenium System

� Atmospheric pressure deposition

� Internal automated handling tools

� Exhaust treatment to recover excess selenium

Products & Services:

- Facility design

- Fab design

- Engineering

- Key equipment

- Technology


R&D Thin Film


� CIGS pilot line started operating (module size: 30 x 30 cm²)

� Optimization of individual systems and processes

� Target:

- Further improvement of cost effectiveness of mass production

- High quality

- High efficiency

� Technology can easily be scaled up to large module sizes

Efficient transfer of pilot line results to customer production lines


Contents

1. Highlights 2008




5. Outlook

6. Appendix


Sales and Total Output

15.5

45.5

30.6

74.667.7 72.5

96.8

137.7

0

20

40

60

80

100

120

140

160

Q1 Q2 Q3 Q4

166.2

374.7

0

50

100

150

200

250

300

350

400

2007 2008

383.7

168.7

0

50

100

150

200

250

300

350

400

450

2007 2008

Sales

+125.4%

in million €

Total Output

+ 127.4%

2007 2008

16.8

48.235.2

68.568.078.1

97.6

140.0

0

20

40

60

80

100

120

140

160

Q1 Q2 Q3 Q4

2007 2008

in million €

in million €

in million €


Sales Breakdown

4 4

21

11

0

2

4

6

8

10

12

Q1 Q2 Q3 Q4 Total

Sales Breakdown by Region 12M 2008

Asia

252.0 (67.2%)Germany

51.4 (13.7%)

Rest of Europe

50.4 (13.5%)

Rest of World

20.9 (5.6%)

Sales Breakdown by Product 12M 2008

Turnkey Production Lines

112.6 (30.1%)

Single Equipment

192.6 (51.4%)

Service and Replacement

17.0 (4.5%)

Other

52.5 (14.0%)

Deliveries Turnkey Lines 2008

31

59 5341

184

412 16

0

20

40

60

80

100

120

140

160

180

200

Q1 Q2 Q3 Q4 Total

Deliveries Single Equipments 2008

Total:

374.7

Total:

374.7

in million €

Export Quota: 86.3%

in million €

Solar cell Silicon


Segment Information


Material and Personnel Expenses

48.749.659.6

73.4

90.2

13.227.031.5

0

40

80

120

160

200

Q1 Q2 Q3 Q4

120.4

272.8

72.8%

72.4%

0

40

80

120

160

200

240

280

2007 2008

0%

20%

40%

60%

80%

8.7

27.8

7.4%

5.2%

0

4

8

12

16

20

24

28

32

2007 2008

0%

2%

4%

6%

8%

10%

12%

* referring to sales

Material Expensesin million €

Material Expensesratio*

Personnel Expenses

3.33.9

5.16.5

12.3

1.32.12.0

0

2

4

6

8

10

12

14

16

18

Q1 Q2 Q3 Q4

Personnel Expenses ratio*

in million €

in million €

in million €

2007 2008

2007 2008


Other Operating Expenses

18.8

35.1

9.4%

11.3%

0

4

8

12

16

20

24

28

32

36

2007 2008

0%

2%

4%

6%

8%

10%

12%

7.36.2

7.56.5

14.9

2.9 2.6

6.0

0

4

8

12

16

20

24

Q1 Q2 Q3 Q4* referring to sales

Breakdown By Cost Category

Ratio*

in million €

in million €

4.6

1.3

3.9

1.8

3.8

1.1

2.3

2.1

2.3

2.1

4.0

1.6

3.1

9.7

2.15.0

2.5

0.6

0

4

8

12

16

20

24

28

32

36

2007 2008

Other

Sales commissions

Legal and Consultancy Costs

Insurance and Contributions

Research and Development

Other Services

Freight and Packaging

Travel Expenses

Management Services

18.8

in million €

35.1

2007 2008


EBIT and Consolidated Net Income

21.1

43.5

11.6%

12.7%

0

4

8

12

16

20

24

28

32

36

40

44

2007 2008

10%

11%

12%

13%

14%

15%

16%

17%

9.28.59.9

12.0 13.1

0.02.9

9.0

0

10

20

30

40

Q1 Q2 Q3 Q4

13.6

34.6

9.2%8.2%

0

4

8

12

16

20

24

28

32

36

40

2007 2008

0%

2%

4%

6%

8%

10%

12%

EBIT

Consolidated Net Income

6.36.28.4 9.2

10.8

-0.11.8

5.6

-8

2

12

22

Q1 Q2 Q3 Q4

in million €

in million €

in million €

in million €

EBIT Margin*

Net Income Margin*

* referring to sales

** excluding purchase price allocation

14.9%**

2007 2008

2007 2008


Cash Flow

21.5

49.0

16.1

1.8

0

20

40

60

80

22.9

10.4

0

4

8

12

16

20

24

12M 2007 12M 2008

Total Cash Flow

23.3

Cash Flow from Operating Activities after NWC

65.1

-138.5

-71.3

-140

-120

-100

-80

-60

-40

-20

0

Cash Flow from Investment Activities

12M 2007

16.6

138.0

0

20

40

60

80

100

120

140

12M 2007 12M 2008

Cash Flow from Financing Activities

12M 2008

NWC

EBT

NWC = Changes in Net Working Capital

EBT = Earnings Before Taxes

12M 200812M 2007

in million €

in million €

in million €

in million €


Balance Sheet as of December 31, 2008

� Equity Ratio: 47.8%

� Balance Sheet volume totally increased mainly due to acquisitions

665.8

Total Assets

665.8

Total Equity and Liabilities

273.0

Non-current Assets

thereof:

Securities

93.9

318.2

Equity

278.8

Current Liabilities

68.8

Non-current Liabilities392.7

Current Assets

thereof:

Advanced payments

received

158.9


Integration of centrotherm thermal solutions

� Integration of centrotherm thermal solutions GmbH & Co. KG (CTTS):

In-house access to key thermal equipment and production capacities

� Product portfolio: Thermal key equipment for the PV and semiconductor industry

� Purchase price CTTS: € 137 million – 62 million discount to valuation from E&Y

� Net result CTTS: € 4.8 million* (period: November 1 to December 31, 2008)

� Sales according to German Commercial Code: € 164.8 million (12M 2008)

� Profit according to German Commercial Code: € 15.4 million (12M 2008)

*including purchase price allocation and consolidation effects


Depreciations from Purchase Price Allocation

1.2

4.1

4.1

7.5

5.8

5.4

2.0

3.3 3.5

1.4

0.3

0

2

4

6

8

10

12

14

16

2008 2009 2010

FHR SolMic CTTS Glatt

in million €

12.2

15.4

11.0


Contents

1. Highlights 2008




5. Outlook

6. Appendix


Outlook

� Double-digit growth

� Sales: EUR 500 - 550 million

� Further increase in EBITDA planned


Contents

1. Highlights 2008




5. Outlook

6. Appendix


centrotherm photovoltaics at a Glance

Silicon Solar Cell Thin Film

� Technology and equipment supplier for PV industry

� Leading market player of turnkey crystalline solar cell production lines

� Unique supplier of turnkey solutions over full crystalline solar cell value chain and

leading thin film technology

Technology &

Equipment

Key Figures 2007 2008

Employees: 178 1,050

Sales: € 166 million € 375 million

EBIT: € 21 million € 56 million*

Business

Divisions

Semiconductor &

Microelectronics

Turnkey Production Plants - Turnkey Lines - Key Equipment - Services

*before purchase price allocations


Portfolio: Major Equipment and Technology

� Silicon � Crystalline Solar Cell

� Equipment� Equipment

(Reactor & Converter)

� Sputtering Equipment

� Module

� 5/10/30 MW module production lines

Fab Design

Facility

Design

Technology

Equipment

Turnkey &

Single

Equipment

� 2,500 t Silicon

Production Plant

� 30/50/60 MW

Solar Cell Production Plant

� 30/50/100 MW CIGS-

Thin Film Modules

Production Line

� Thin Film

CIGS* Technology

*CIGS= Copper Indium Gallium Diselenide


Purchase Price Allocation CTTS


International Presence


Blaubeuren, Germany

centrotherm Sitec GmbH

Blaubeuren/Burghausen,

Germany

centrotherm thermal

solutions GmbH & Co.KG

Blaubeuren, Berlin, Dresden,

Frankfurt (Oder), Hanover,

Germany, France,

USA, Asia

centrotherm photovoltaics

technology GmbH

Constance, Germany


Italia S.r.I

Treviso


Asia Pte. Ltd.

Taiwan, Singapore


Trading (Shanghai) Co. Ltd.

Shanghai

FHR Anlagenbau GmbH

Ottendorf-Okrilla, Germany

GP Solar GmbH

Constance, Germany

Michael Glatt

Maschinenbau GmbH

Abensberg, Germany


USA Inc.

Beverly, Massachusetts


The Share


Financial Calendar 2009

� May 14, 2009:

Publication of Interim Report as of March 31, 2009

� June 30, 2009:

Annual General Meeting of Shareholders

� August 13, 2009:

Publication of Interim Report as of June 30, 2009

� November 11, 2009:

Publication of Interim Report as of September 30, 2009


centrotherm - empowering photovoltaics

Contact: Saskia Schultz-Ebert

Investor Relations


Johannes-Schmid-Strasse 8

89143 Blaubeuren

Tel +49 (0)7344 9188-890

Fax +49 (0)7344 9189-389

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