Strictly Private and Confidential
“How to be a start-up company in the solar industry”
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Table of Contents
Introduction
• Vetro Solar in brief
• Vetro Solar Management and Board of directors
• Annual worldwide installed PV capacity from 2000 to 2010
• European Markets
• Evolution of global cumulative installed capacity worldwide
• The Solar industry needs high quality glass
• The flat glass industry
• The Vetro Solar concept and core business
Vetro Solar Phase I, Germany
• Value chains. Glass processing
• Glass processing
• Line#1 and Line#2 setups
• Project funding
Vetro Solar Phase II, Germany
• Value chain. Primary glass production
• State of the art solar glass production and processing
• This is why we will succeed
• Concluding remarks and summary
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Introduction
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Introduction
Vetro Solar in brief
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Norwegian idea, concept, founders, business development, vision and ambition
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Vetro Solar will produce customized glass especially designed to optimize solar energy
transmission for PV modules
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Founded in Q4 2006, located in Kristiansand, Norway. Daughter company; Vetro Solar GmbH
established in Sandersdorf-Brehna/Solar Valley, Germany in 2008
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NOK 75 mill invested
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Strong wish to maintain company holding and business development in Norway
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Desired listing at Oslo Stock exchange
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Knowledgeable board and management in place.
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Site and building Phase 1 finished 30.th June. Financed through a 12,4 mill € leasing arrangement
with the community of Sandersdorf-Brehna
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Will start up one processing line with a capacity of ~ 5 million sqm per year in Q4 2011
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Continuous dialogue with customers to phase in supplies in accordance with our scheduled ramp
up/productions start-up. MOU’s and supply agreement frame works in place.
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Subsidies and grants Phase 1 of 10,6 mill € confirmed.
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Entitled to subsidies and grants Phase 2, 30% of Capex
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Vetro Solar Management and Board of directors
Management team with proven trackrecord
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Morten Hansen, CEO
Bjørn Glenn Hansen, EVP Commercial Affairs
Tor Helge Midtbø, CFO
Dr. Jan Vedde, R&D manager
- Teknova/Dr. Thomas Meyer, R&D program manager
Dr. Christin Püttmann, Man.director Germany
Morten Hansen, CEO
Dr. Christin Püttmann,
Man.director Germany
Board of directors with extensive experience and network
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Roy M. Slettvold, Chairman
Arvid Grundekjøn
Eivind Brøvig
Synne Syrrist
Øyvind Aske
Gabriel Smith (observer)
Roy Slettvold, Chairman of the board
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Introduction
Annual worldwide installed PV capacity
from 2000 to 2010 in the World (in MW)
PV markets have never performed
so well in their entire history.
The global PV market in 2010: approx 16 GW
While the awareness about the PV’s
capabilities grows in the public
opinion, it now appears on the
energy map of several countries. The
total of newly installed capacity added
in 2010 represents in average the
electricity production of two large
coal-fired power plants. In several
countries, grid parity for residential
systems is reachable in the coming
years. In some specific cases in
countries or regions with very high
electricity prices, PV could already
become competitive soon with netmetering only.
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Source: EPIA
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Introduction
European Markets
At least 3 ”GW markets” in 2010
Germany retains its
leadership for the second
year in a row.
In 2010, Europe alone added
between 11.6 and 13.3 GW of
new PV installed capacities.
Source: EPIA
Transformed to Watt the Vetro Solar glass processig capacity at Phase 1
represents approx ”just” 1 GW
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Introduction
Evolution of global cumulative installed capacity worldwide (MW)
Solar PV generates electricity
in well over 100 countries and
continues to be the fastest
growing power-generation
technology in the world.
Between 2004 and 2009, gridconnected PV capacity
increased at an annual average
rate of 60 percent.
The increase of the capacity from
2009 to 2010 is the most
impressively represented in
absolute values.
The total installed capacity
reached at least the 37 GW mark
and can be possibly almost 40
GW .
Source: EPIA
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Introduction
The Solar industry needs high quality glass
- to improve efficiency and output
All solar modules require glass, which
is the only material that combines the
functionalities of protecting the
cells/modules and allows enough light
transmittance.
Glass as carrier in a wafer based module
Thin ﬁlm’s share of the global market
increased from 14 percent in 2008 to 19
percent in 2009 for cells, and from 16 to 22
percent for modules
In 2008 the glass demand for these
purposes represented approx 100 mill m2
glass
In 2010 the demand was approx 160 mill
m2
The 2020 scenario with a capacity of 100
GW would demand approx 1 billion m2
glass. In 2010 the global total primary
glass production was approx 6.6 billion
m2.
Glass as carrier in a thin-film solar cell1)
Vetro Solar at full scale Phase 2 would
represent 1-2% out of such a demand.
Establishing a 1GW plant (like Vetro Solar)
including primary glass production and
glass processing takes about 24 months
Glass is projected to be the next
bottleneck in this industry.
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Introduction
The flat glass industry 2010
Glass applications
2%
Global market structure
Architectural
18 %
• 70% consumed in windows for buildings
Automotive
• 10% consumed in glazing products for automotive applications
• 20% used in furniture , interior and other applications
• Solar PV applications represent approx 2% out of ”other applications”
Furniture/interior
10 %
Solar
70 %
What does 70/10/18/2 % mean?
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The global players’ focus and core business are in Architectural and Automotive segments
Obligations and commitments upon present customers in these segments represent 98% of tonnage distribution
The float glass lines and the glass processing lines are designed to meet these demands
Float lines and Processing lines are mostly de-centralized from primary glass production
• The PV sector, calling for highly sofisticated glass products is treated unfairly
Vetro Solar has a 100% PV focus
• Primary glass production involving only 2-3 glass thicknesses
• Ultimately with only one glass body tint, optimized for highest possible light transmittance and superior glass surfaces allowing depositions of 1- or 2- sided
PV customized coatings for Anti reflection, self-cleaning and conductivity
• Centralized primary glass manufacturing and processing
• Potential of consuming 100% of own primary glass production directly conveyed into own glass processing and value adding
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Introduction
Float glass lines, market shares and demand 2010
Market shares
202 float glass lines globally
FSU 16
16 %
NSG
30 %
Europe 69
China 47
AGC
STG
23 %
Guardian
Others
South America 9
15 %
Asean 20
US/Canada 31
16 %
Japan 10
Demand
• The global market for flat glass in 2009 was approximately 53 million metric tonnes (~6.6 billon m2. On average 1 tonne is approximately 125 m2).
• At current price levels, this represents a value at the level of primary manufacture of around € 22 billion.
• World demand for flat glass is forecast to rise 6.0 percent per year through 2014 to 8.1 billion square meters. Maintaining the trend seen over the 1999-2010
period, demand will easily outpace real (i.e., inflation-adjusted) gains in the global economy.
• Projected global demand requiring up to 120 additional float lines (230 t/d) thru 2014
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Introduction
Vetro Solar core business Primary glass production and glass processing
Value chains
PV cSI
Silicon
feedstock
(Crystaline
Silicone)
Ingot
Wafer
Solar cell
PV
Modules
PV
Systems
2
1
Glass
(Float glass
and
Cast glass)
Raw materials
Primary glass
production
MF
module
assembly
Glass
processing
Building
installation
Building
architecture
& design
End
user
1
2
PV TF
PV Modules
Feedstock
(Thin Film)
1
Where glass enters PV value chains
2
Where solar cells enter multi function (MF) value chain
Vetro Solar core business
PV
systems
Vetro Solar’s customers
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Introduction
Investment highlights
Vetro Solar is positioned as the leading dedicated supplier of glass optimised for the PV industry
• Sales and R&D approach appreciated by PV customers
• Project development well progressed (engineering, securing of property, EU grants, etc.)
• Positioning confirmed by leading global glass producers
Vetro Solar will produce and process glass customized and dedicated to the PV industry
• Glass is projected to become the next bottleneck in the PV indutstry
Vetro Solar has secured access to critical raw materials
• Limited availablility in Europe
Vetro Solar is in negotiations with regard to off take agreements and R&D collaboration
• Contracts under negotiation. Several LOIs in place
• R&D programs in place with focus on glass surface optimization and next generation PV modules with thin glass/glass compounds
Vetro Solar has secured attractive location in Solar Valley (Sandersdorf-Brehna) in Germany for first site and is ready
to break ground for Phase II
• Optimized location with regards to logistics, a region with a significant share of world solar module production
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Introduction
Investment highlights, cont.
Highly experienced managment team and knowledgable board of directors in place
Robust business model
• Targeting PV industry with optimized and customised glass and technological solutions,
Attractive financials
• 1 float line in full operational mode including belonging processing: approx 100 MEUR MEUR revenue , EBITDA of approx 30-40 MEUR .
Significant expansion potential in Europe, Asia, Asean, South America, Middle East and US
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Vetro Solar Phase I
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Vetro Solar Phase I
Value chains
Glass processing
PV cSI
Silicon
feedstock
(Crystaline
Silicone)
Ingot
Wafer
Solar cell
PV
Modules
PV
Systems
2
1
Glass
(Float glass
and
Cast glass)
Raw materials
Phase II
Primary glass
production
Phase I
Glass
processing
MF
module
assembly
Building
installation
Building
architecture
& design
End
user
1
2
PV TF
PV Modules
Feedstock
(Thin Film)
1
Where glass enters PV value chains
2
Where solar cells enter multi function (MF) value chain
Vetro Solar core business
PV
systems
Vetro Solar’s customers
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Vetro Solar Phase I
Glass processing
Phase I
Glass
processing
PV demands strongly considered by processing line configurations and technology choice, such as :
Cut to size
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High precision and
accuracy
Holes
Edge grinding
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High precision and
accuracy
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Non-circular holes /
cut-outs reducing
tension in the glass
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High trough put
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High trough put
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Fully automated, no
hand touch
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Superior edge quality
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Reduced tension in
glass
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High accuracy
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High trough put
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Fully automated, no
hand touch
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Edge working down to
1.6 mm glass
thicknesses
Toughening
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Holes and cut-outs in
thin glass
Fully automated no
hand touch
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Air cushioned inclined
toughening process
enabling:
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Higher strength
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Superior glass
surfaces
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Toughening / heat
strengthening of
glass thicknesses
1.6-8 mm
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High trough put
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Fully automated, no
hand touch
Cleaning
Separation
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Inline cleaning systems •
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High trough put
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Fully automated,
no hand touch
Flexible inline systems
enabling powdering,
papering or stringing
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High trough put
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Fully automated,
no hand touch
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Vetro Solar Phase I
Line #1 and #2 setups
1. Cutting
2. Handling
3. Rotating
4. Grinding
5. Drilling
6. Cleaning
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2
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7. Buffer/Unloading/Sheets separation
8. Tempering
9. Unloading/Sheet separation
Processing lines prepared for pre- and/or post glass surface treatments
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Vetro Solar Phase I - How to be a start up company in a “ nut shell”
Project funding
€ ’000
Funding VS GmbH
Equity (registered share capital)
Additional paid-in equity per 31.12.2010
Additional funding from parent company
Total Equity
33,0
3 054,0
2 051,3
5 138,3
Mietkauf/leasing Sandersdorf Brehna (5 year)
Goodvent IBG Loan (3 year)
Investitionsbank Sachsen-Anhalt Loan IMPULS (10 year)
Investitionsbank Sachsen-Anhalt Loan MUT (10 year)
Bridge loan (1 year)
Total additional finance sources
12 400,0
2 991,7
2 500,0
500,0
2 000,0
20 391,7
Total equity and loans / funding
25 529,9
Subsidies
Grants
7 694,3
2 818,6
10 512,9
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Guarantees:
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2,0 mill € bank guarantee from CTH
towards NORDEA
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0,7 mill € guarantees from MH/BGH
towards IB & GoodVent
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15 mill NOK guarantee from
Kristiansand based investorgroup
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Buy back guarantee from Lisec; 35%,
30, 25, 20, 10 of the gross purchase
value of hardware 6,9 mill €
Strictly Private and Confidential
Vetro Solar Phase II
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Vetro Solar Phase II
Value chains
Primary glass production
PV cSI
Silicon
feedstock
(Crystaline
Silicone)
Ingot
Wafer
Solar cell
PV
Modules
PV
Systems
2
1
Glass
(Float glass
and
Cast glass)
Raw materials
Phase II
Primary glass
production
Phase I
Glass
processing
MF
module
assembly
Building
installation
Building
architecture
& design
End
user
1
2
PV TF
PV Modules
Feedstock
(Thin Film)
1
Where float glass enters PV value chains
2
Where solar cells enter multi function (MF) value chain
Vetro Solar core business
PV
systems
Vetro Solar’s customers
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Vetro Solar Phase II
State of the art solar glass production and processing
Solar roof 1 MWp, connected to grid in June 2010
Vetro Solar GmbH, Phase 1
Solar Valley, Sandersdorf-Brehna, Germany
Area available for further PV installation
• 13 000 m2 Factory and offices in place
• Glass processing customized for PV
• Glass processing capacity 10 mill m2
Phase I
Glass
processing
• Line#1, SOP Q4/2011
• Line#2, planned SOP Q1/2012
Vetro Solar GmbH Phase 1+2 at full scale
• Fully integrated primary glass production and glass processing
• Key pre-engineering and local allowances in place for the primary glass
production.
• Key raw material supplies pre-negotiated
• Construction periode approx 24 months
• Capacity 230 t/d, annualy 10 mill m2 (3 mm glass thickness)
15 mill m2 (2 mm glass thickness)
• In full operational mode the Vetro Solar float line will generate additional
42 MEUR in revenues with corresponding EBITDA of
22 MEUR ( 50%)
• Possible first glass production Q2 2013 (assuming start of project Q2/2011)
• Work force:
- Direct jobs 122
- Indirect jobs ̴ 160
Phase II
Primary glass
production
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Vetro Solar Phase II
This is why we will succeed
Thin Glass Technology is the future
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Vetro Solar will be able to provide thinner glass solutions enabling higher module efficiencies and reduced cost
Reduced weight
Stronger module construction
R&D programs are ongoing in order to develop a new glass-glass panel replacing film as back plate on wafer modules with thin front and back
glass. Test results already document very promising module performances.
Development of customized coating for Thin Film and Wafer Modules
• Vetro Solar will develop and patent customized coating solutions to our customers with focus on higher module efficiency and module
quality.
• R&D programs in place and ongoing with PV customers and Norwegian institutions and expertice
The entire PV value chain is dependent on glass
• Glass is a strategic material carrier for all different thin film and wafer technologies
•. Without glass, no PV industry.
Development of Thin Film will require increased need for glass
• The Thin Film segment is expected to grow strongly as the technology improves by obtaining higher efficiency combined with its attractive
competitive manufacturing cost
• The need for both front and back glass increases the need for glass into the Thin Film segment of the PV market
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Vetro Solar Phase II
Dedication of our organization to the PV industry
• Our strategy is founded on being dedicated to the PV market only.
Fully integrated glass production and glass processing set up for solar glass purposes
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One of a kind business set-up
One of a kind market and customer approach
Yield maiximization
Maximum cost efficiency
Location in customer clusters or proximity
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Industry cluster general business development advantages
“Fence-to-fence” in day-to-day business
Significant logistical effects in cost efficiency and safety
Enviromental friendly
THIS IS WHY WE WILL SUCCEED
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Vetro Solar
Concluding remarks
Summary
As a startup company – financial strategy a must !
Share holder list a challenge – stronger share holders / industrial partner a necessity for long term development
Focus on key commercial requirements when establishing new business
People & Competence
Customers & Markets
Cost of operation
Political stability and predictability
Incentive schemes
Cluster opportunities
THANK YOU !
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