D EVELOPING THE BEST TECHNOLOGIES FOR THE INDUSTRIES OF THE FUTURE J ANUARY , 2020
WE PROVIDE INDUSTRIAL COMPANIES WORLDWIDE WITH INNOVATIVE SOLUTIONS ENHANCING THE PERFORMANCE OF THEIR PRODUCTS AND SERVICES S ALES €879 M K EY FIGURES AND EBIT M ARGIN * 10.4% PROFILE E MPLOYEES 6,900 2018 figures * Before non recurring items
E XPERTISE WITH LEADERSHIP POSITIONS ELECTRICAL POWER – 45%* ADVANCED MATERIALS – 55%* * 2018 Sales NO. 1-2 NO. 1-2 NO. 1-2 NO. 1 WORLDWIDE WORLDWIDE NO. 2 WORLDWIDE WORLDWIDE WORLDWIDE Components Graphite Industrial fuses High-temperature Brushes for industrial for power electronics anticorrosion applications motors equipment ANTICORROSION GRAPHITE POWER TRANSFER ELECTRICAL PROTECTION SOLUTIONS FOR EQUIPMENT SPECIALTIES & CONTROL POWER MANAGEMENT TECHNOLOGIES Competition EATON (US), ROGERS (US), TOYO TANSO (JP), MORGAN ADVANCED SGL CARBON (Ger) EATON (US), LITTELFUSE (US) MATERIALS (UK), METHODE (US), LYTRON (US), TOKAI CARBON (JP), SCHUNK (Ger) CORNELL DUBILIER (US), SGL CARBON (Ger) PANASONIC (JP) SCHUNK (Ger) 3 January 2020 - Mersen
H ALF OF M ERSEN SOLUTIONS ARE FOR GROWING SUSTAINABLE DEVELOPMENT MARKETS S USTAINABLE DEVELOPMENT MARKETS ~50% 19% 34% ENERGY PROCESS INDUSTRIES RENEWABLE ENERGIES ENERGY EFFICIENCY 19% ELECTRONICS 2018 SALES SEMICONDUCTORS POWER CONVERSION 17% 11% CHEMICALS TRANSPORTATION WATER TREATMENT RAIL ELECTRIC VEHICLES 4 January 2020 - Mersen
F OR PRESTIGIOUS AND EXACTING CUSTOMERS 34% 11% 17% 19% 19% PROCESS CHEMICALS TRANSPORTATION ELECTRONICS ENERGY as a % of sales in 2018 INDUSTRIES > 65% customized products Replacement market 65% of sales Largest client ~3% of sales Longstanding ties 5 January 2020 - Mersen
G LOBAL FOOTPRINT Headcount 2,360 EUROPE Headcount 2,100 34%* NORTH AMERICA Industrial plants 22 33%* Industrial plants 13 50% 1 of the plants are ISO 14001 certified 1 environmental perimeter Headcount 1,780 ASIA-PACIFIC 29%* Industrial plants 13 SOUTH AMERICA- 89% of the employees Headcount 670 AFRICA are proud to be part of Industrial plants 5 4%* the Group (2018) * % 2018 Sales 6 January 2020 - Mersen
H UMAN CAPITAL : THE GROUP ’ S FOUNDATION PREVENTION AND PROTECTION A SHARED CULTURE A WEALTH OF DIVERSITY Excellence, Collaboration, People Develop and consolidate a culture of health Teamwork and collaboration for creativity conscious, Agility & Entrepreneurial Spirit, and safety within the Group and a better understanding of customer Partnering with our customers needs worldwide 88% human capital success rate in 25% to 30% of women managers and Improve by 15% the number of safety 2021 (85% in 2018) professionals by 2022 visits by 2021 Reach LTIR<= 1.4 and SIR<=60 by 100% of managers trained on the Open (20% in 2018) Manager program by 2021 2021 7 January 2020 - Mersen
L EADERSHIP POSITIONS THAT ARE SOURCE OF PROFITABILITY STRENGTHS Leader : >65% Expertise : customized high barriers #1 or #2 products to entry in our markets SUSTAINABLE DEVELOPMENT HIGH GROSS MARGIN GLOBAL OPERATIONS MARKETS 34% Customer proximity 32% Access to local Solar Semicon EV 30% markets Wind 28% 26% 2013 2014 2015 2016 2017 2018 8 January 2020 - Mersen
L ONG - TERM RELATIONSHIPS WITH OUR SHAREHOLDERS B OARD OF DIRECTORS INDIVIDUAL & EMPLOYEE 10 members BPI & CDC 15% SHAREHOLDERS, 2 representatives from Ardian TREASURY SHARES 15% 2 representatives from BPI 1 employee director ARDIAN 10% SHAREHOLDER Independance: 55% STRUCTURE Women at the board: 44% AT JUNE 30, 2019 OTHER Compliance with INSTITUTIONAL the AFEP-MEDEF SHAREHOLDERS 25% corporate governance code FRENCH INSTITUTIONAL SHAREHOLDERS 3 5% 9 January 2020 - Mersen
COMMITTED TO THE FUTURE Capex program for Strategic acquisitions O UTLOOK growing markets in 2019 G ROWTH POTENTIAL FOR THE MEDIUM TERM CONFIRMED
A PROGRAM OF I NVESTMENTS IN 2019 TO UNDERPIN MID - TERM GROWTH ENVIRONMENT GROWTH CAPEX CAPEX LASER SCAN SIC SEMI- CONDUCTORS €65-75m* MAINTENANCE EV CAPEX POWER ELECTRONICS SOLAR DIGITAL CAPEX … THAT WILL CONTINUE IN 2020-2021 * Columbia starting date delayed 11 January 2020 - Mersen
S OLAR : CONSISTENT GROWTH AHEAD MERSEN OFFER NUMBER OF PANEL INSTALLATIONS GROWING EACH YEAR Annual (GW) FURNACE INTERNAL PARTS IN GRAPHITE 2019-2024 CAGR 200 +8% GRAPHITE RESISTANCE 190 180 180 CRUCIBLE SUPPORT 160 169 IN C/C COMPOSITE 158 140 FLEXIBLE FELT 144 INSULATION SOLUTIONS 120 125 100 2011-2018 CAGR 106 99 +20% 80 76 60 59 40 47 35 32 20 28 0 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E Sources: IHS Markit, Exawatt, Bloomberg NEF, SolarPowerEurope, IEA 12 January 2020 - Mersen
I NVESTMENTS FOR THE FAST - GROWING S I C SEMICONDUCTORS MARKET COMPOUND SEMICONDUCTORS MATURE MATURING OTHER MARKET MARKET TECHNOLOGIES GaN/ RAW MATERIAL/ Silicon SiC GaN GaAs InP Sapphire SUBSTRATE Memory Power component RF Opto COMPONENTS Microprocessor LED chip (IGBT, MOSFET, JFET) component electronic Networks and Speed Energy Renewable END-MARKET EV Lighting Communications computers drives storage energies 13 January 2020 - Mersen
S I C SEMICONDUCTORS MARKET SET TO ACCELERATE AFTER 2020-2022 IN LINE WITH EV MARKET GROWTH POWER SIC DEVICE MARKET REVENUE MERSEN OFFER IN USD MILLIONS INSULATION GRAPHITE CRUCIBLE 2500 2022-2024 CAGR Other +40% 2000 Speed drivers 1500 2016-2021 EV CAGR 1000 +25% Renewables 500 Rail Power supply 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: Yole Development, Power SiC 2017 for 2016&2017 Power SiC 2019 from 2018 to 2024 14 January 2020 - Mersen
F URTHER PROGRESS IN EV FOR HIGH-END PASSENGER FOR HEAVY VEHICLES CARS Power conversion Battery management Cooling devices Bus bars Fuses Bus bars Battery management Battery protection Selected by a Cooling devices Bus bars Fuses leading manufacturer DC hybrid Protection Battery protection Fuses Fuses 15 January 2020 - Mersen
S TRATEGIC ACQUISITIONS IN 2019 COLUMBIA AGM Italy GAB NEUMANN Italy (Malonno) Germany (Maulburg) USA (Columbia) Sales: ~€17m Sales: ~10M€ O BJECTIVE O BJECTIVE O BJECTIVE - Access to complementary - Capacity of finishing of - Strengthening presence isostatic graphite production customized extruded graphite in specialty chemicals in - Repatriation within the parts the DACH countries Group of the production of - Synergies with Columbia - Broader expertise in specialty extruded graphite plant which will eventually heat exchanger supply with blocks 16 January 2020 - Mersen
C OLUMBIA : AN EXCELLENT OPPORTUNITY FOR M ERSEN 12,000 t Columbia: additional Isostatic graphite production production capacity of capacity not utilized graphite Isostatic graphite production capacity utilized 2016 2017 2018 2019 2020 2021 2022 2023 17 January 2020 - Mersen
C OLUMBIA : A NEW INDUSTRIAL BASE FOR THE FUTURE Delivering Malonno June 28, 2019 End of 2019 End of 2020 End of 2021 Production Commissioning start Closing Cash-out 7 MUSD CAPEX ~€20m Decision for additional capex 18 January 2020 - Mersen
2019 OUTLOOK : FY GUIDANCE RAISED IN JULY 2019 I NITIAL GUIDANCE between 2 and 5% ORGANIC* GROWTH in SALES VS 2018 between 4 and 5% CURRENT GUIDANCE G UIDANCE ( BEFORE POSITIVE IMPACT OF IFRS 16) OPERATING MARGIN BEFORE between 10.5 et 10.7% NON-RECURRING ITEMS I NITIAL GUIDANCE between €60m and €70m CAPEX between €65m and €75m (o.w. €5m for Columbia) CURRENT GUIDANCE * Excluding foreign change and scope effects 19 January 2020 - Mersen
Q3 2019: S TRONG PERFORMANCE IN THE CURRENT MACRO - ECONOMIC ENVIRONMENT 2019 QUARTERLY SALES 9-months sales figures +10% vs 2018 Total growth +15.3% +9.7% +5.1% +2.5% Like for like +8.4% +4.8% Incl. +5% like-for-like Organic growth in all regions: Europe: +5.7% Asia-Pacific: +0.4% 240.5 243.2 234.3 243,2 240,5 234,3 North America: +8.4% Rest of the World: +7.1% Q1 2019 Q2 2019 Q3 2019 20 January 2020 - Mersen
VERY STRONG PERFORMANCE IN H1 2019 Further improvement in sales and operating results H1 2019 10 TH CONSECUTIVE QUARTER OF ORGANIC GROWTH IN SALES 7 TH CONSECUTIVE HALF - YEAR OF GROWTH IN OPERATING RESULTS BEFORE NON - RECURRING ITEMS
A GOOD HALF - YEAR 2019 OPERATING MARGIN BEFORE SALES OPERATING CASH-FLOW NON-RECURRING ITEMS +6.5% vs H1 2018 +30 pts before IFRS16 vs H1 2018 +10% before IFRS 16 vs H1 2018 Organic growth 20 54 484 430 +12.4% 18 46 11.1% 10.9% 10.6% before IFRS16 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Sales (€m) Operating income Net cash-flow from operations (€m) before non-recurring items (€m) 22 January 2020 - Mersen
R ISE IN PROFITABILITY As a % H1 2018 operating margin before non-recurring items 10.6% Higher prices to Volume/mix effects +0.8% offset the increase in Price/raw materials net impact +0.6% the cost of raw materials: net Impact of productivity +1.6% positive Cost inflation -1.8% Impact of exchange rates, change in scope and other -0.9% Cost inflation Comparable H1 2019 operating margin before offset by 10.9% non-recurring items productivity plans IFRS 16 impact +0.2% H1 2019 operating margin before non-recurring items 11.1% 23 January 2020 - Mersen
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