david b. miller, group vp dupont electronic...
TRANSCRIPT
DuPont Photovoltaic Solutions
David B. Miller, Group VPDuPont Electronic &
Communication Technologies
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Regulation G
The attached charts include company information that does not conform to generally accepted accounting principles (GAAP). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the company and allows investors to better evaluate the financial results of the company. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies.
This data should be read in conjunction with previously published company reports on forms 10-K, 10-Q, and 8-K. These reports, along with reconciliations on non-GAAP measures to GAAP are available on the Investor Center of www.dupont.com.
During the course of this presentation we may make forward-looking statements or provide forward-looking information. All statements that address expectations or projections about the future are forward-looking statements. Some of these statements include words such as "expects," "anticipates,” "plans," "intends," "projects," and "indicates.” Although they reflect our current expectations, these statements are not guarantees of future performance, but involve a number of risks, uncertainties, and assumptions. Some of those risk factors include economic conditions, competitive pressures, challenges associated with research and development, market acceptance of new products, and regulatory approval. We urge you to review DuPont's SEC filings, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, for a discussion of some of the factors which could cause actual results to differ materially. The Company does not undertake to update any forward-looking statements as a result of future developments or new information.
Forward Looking Statements
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
DuPont…A Market Driven Science Company… What you should expect
Robust product pipelines
End-user relevance
Protected inventions
Sustainable solutions
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Growth StrategiesProtect & grow base business in materialsExpand emerging technologies; thin filmLeverage “One DuPont” to create newopportunities down value chain
AccomplishmentsSignificant product launches:
Solamet® PV159 metallization pasteTedlar® SP Series film
Tedlar®/Toppan licensing agreement 12 expansions: R&D & manufacturing Established market facing enterprise3X Increase: DPVS Sales & R&D resourcesSupplying 18 of top 20 manufacturers
DuPont Photovoltaic Solutions (DPVS)
$0
$250
$500
2006 - 2008 Sales
20082006
($ M
illio
ns)
DPVS growing faster than the PV market
69% CAGR
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Asia31%
2006 Regional Sales Distribution
Europe57%
NorthAmerica
12%
DuPont Photovoltaic Solutions Regional growth shifting to Asia
Asia43%
2008 Regional Sales Distribution
Europe47%
NorthAmerica
10%
Well established global footprint
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Photovoltaics IndustryGlobal trends driving big opportunities
Demand for Renewable EnergyLocal subsidies & feed-in-tariffsRenewable portfolio standardsDramatic cost reduction through new technologiesBroad application development opportunities
Large Market Growing Fast*~$30B today~$70B by 2013
Source: Lux Research Inc.
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Photovoltaics Industry
Silicon, Ingot &
Wafer Mfg
Cell metallization& process chemicals
Films for backsheets& frontsheets
Module encapsulation
Engineering resins & components
DPVS is an industry leader in several critical materials…
c-Si Cell Mfg
ModuleMfg
Systems Integration
& Installation
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Photovoltaics Industry
…and is aligned with the leaders in the industry
Silicon, Ingot &
Wafer Mfg
c-Si Cell Mfg
ModuleMfg
Systems Integration
& Installation
The company names listed on this page are the property of the companies identified above, and some, as indicated, are registered trademarks of those companies.
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Solar Cell TechnologyCrystalline Si (c-Si) PV cells & modules
Amorphous Si (a-Si) thin film PV modules
Elvax® EVA
Teflon® ETFESolamet®MetallizationPastes
Tedlar® PV 2001
Rynite® PET resin Mylar® PET film
Rynite® PET resin
Tedlar® PV 2001
Teflon® ETFE
DuPont™ PV5200 encapsulation sheet
Fastest growth in thin film
Vertical integration by top module producers
Rapid growth of commercialand utility segments
Strong need for improvedmodule reliability
DuPont focus on partnerships,enabling technologies, andend market requirements
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Well Positioned For Growth
New investments consistent with growth strategy
Expanded encapsulationlab capabilities
(Belgium)
Expanded technical center (Taoyuan, Taiwan)
Doubled capacity of Solamet®metallization pastes(Dongguan, China)
Doubled capacity of Solamet®metallization pastes
(Bristol, UK)
New R&D lab & Technical center (2010)
(Hyderabad, India)
Invested $50M on Tedlar®
polymer capacity expansion (Fayetteville, NC)
R&D Facilities
Manufacturing
New R&D thin film lab(Hong Kong)
Building thin film production facility (Shenzhen, China)
Expanded R&D lab (Kanagawa, Japan)
Expanded technical center(Shanghai, China)
Expanded encapsulationtesting capabilities(Wilmington, DE)
Announced intent to more than double global production for
Tedlar® (2010 start-up)
New PV R&D Center (Geneva, Switzerland)
New PV R&D Center (2010)(Wilmington, DE)
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
2009 DuPont Photovoltaics PipelineIndustry Leading Technology
Peak Sales: 321 < $25M > $100M$25M - $100M
ValueAdv. Dev.Early Dev.
Proof of Concept Pre-Launch
321 4DiscoveryProject
Higher Temperature Substrates
Integrated Films for Thin Film Modules
Tedlar Gen III Backsheet
Higher Efficiency Metallization Pastes
Simplified Module Installation
DuPont Apollo
PV 5300 Next Generation Encapsulant
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2
3
2
2
1
Thin
Film
Materials for Concentrator Systems
c-Si
Advancing key pipeline initiatives connected to strategic customers
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Integrated Films for cSi Modules
2
Printable Photoactive Semiconductors2
2
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
DuPont Photovoltaic Solutions Strong Brand Positioning
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
DPVS Top Line Growth Drivers (2008–2012)
$400
$1,000
$0
$500
$1,000
Sales 2008 Base Growth* New Products* BusinessExtensions*
Sales 2012E
$ M
illio
n
Multiple growth opportunities
* Company Estimates
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Growing Solar Installations
DuPont Sustainability Goals In ActionPioneer Hi-Bred Waimea Research Center 1,500 panels; 1 acre arrayOffsets 55% of facility’s electrical usage5 yr payback with high teens project returns
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© 2009 E.I. du Pont de Nemours and Company. All Rights Reserved.
Summary
DuPont Photovoltaic Solutions is on a growth trajectory to exceed $1B by 2012
We are investing to meet growth requirements and product renewal in base businesses
We are creating new opportunities through innovation in emerging thin film technologies