Oerlikon as a supplier of Green Technologies

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 is essentially contributing to making solar power a main energy source of the future.

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

Five segments and fields of competence of the Oerlikon Group Segments Business Units Oerlikon Coating Systems (Data Storage & Wafer Processing) Solar Services Coating Oerlikon Vacuum Oerlikon Textile Oerlikon Drive Systems Oerlikon Assembly Equipment Systems Vacuum Fibers & Nonwoven Gears & Components Services Filaments Automotive Transmission Solutions Off-Highway Drivelines Assembly Equipment Staple Yarn Twisting & Embroidery Oerlikon Textile Components Oerlikon Fairfield Drive Systems Optics Space

Importance and growth of renewable energies

Solar energy has the greatest advantages Geothermal energy Advantages Disadvantages • Constantly available (irrespective of sun and wind) • Little change in landscape • Low space requirement • Cannot be used everywhere • Great cost • Risk of earthquakes through drilling (Basel) Wind • Low operating & maintenance costs • No follow-on costs • Only works with wind • Noise emission • High investment • Large installations (change in nature) Water Biomass • Simple technology • High efficiency • Constantly available • Recycling • High investment costs • Submersion of biotopes and useful space • Disruption of biological equilibrium • In poor countries: displacement of resource production of local life (biomass production) • Increased output of nitrous oxide (fertilisation and combustion of biomass) Solar • No pollutant emissions • Surplus electricity can be stored • Low maintenance & operating costs • Integrates into environment • Long life of systems • In some cases, still low efficiency

Multiple applications for solar technology Not connected to the electricity supply grid Applications Features Near settlements (189 MW)* Everywhere (322 MW)* Connected to the electricity supply grid Distributed (2, 417 MW)* § Small domestic § Use in undeveloped systems (>1 km from regions supply grid) § Above all in developing countries § 0. 1– 1 k. W § 0. 5– 1 k. W § Energy supply of buildings § Villages (e. g. street lighting, schools) § Households (e. g. lighting, refrigerators) § “Normal” house roofs § Commercial buildings § Photovoltaic system integrated into building § Commonly used electronic devices (e. g. calculators § Agriculture (e. g. water pumps) § Space/high-tech Centralized (51 MW)* § Power stations for production of alternative energy § 500– 5, 000 k. W § 0. 4 - 100 k. W Source: IEA, Sarasin, Lit. research, Expert interviews (Global installed PV power 2004) § Power stations

Global Market 2005: dominated by Germany, Japan, USA Global production 2005: 1, 400 MWp(= 1. 4 GWp) Germany, Japan, USA: 1, 200 MWp 828 USA Japan Germany 290 103

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 for instance 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 production location since already exceptionally well positioned Source: “Solar Generation”, Greenpeace 2006

Different technologies for solar power generation Thinfilm silicon Composition Raw material Applications Wafer 0, 002 mm silicon layer Processgas Silan, 200 times less Si Large surface, solar powerplants 0, 3 mm silicon wafer ultrapure silicon wafer Small surfacees, roofs Cost advantage Higher efficiency

Thin film solarmarket with strongest growth Market growth per year (CAGR 2006 - 2009) Primary Energy ~2% Renewable Energy ~5% Solar PV ~ 50 % Si Thin Film > 50 % Thin Film Equipment > 50 %

Leading technology supplier of thin film silicon solar modules Milestones End of 2004 First research facility delivered to Schott Solar 2005 - 2006 Cooperation with Schott Solar: Development of a-Si modules March 2006 Contract for the first 40 MWp production facility for Schott Solar March 2006 Contract for the first 20 MWp production facility for ERSOL Sept. 2006 Raising of ERSOL-Contract up to 40 MWp Sept. 2006 First jointly developed TCO-System for ERSOL Dec. 2006 Delivery of the first production facility to ERSOL March 2007 Launch of ERSOL production facilities June 2007 Official opening of ERSOL production facility

Oerlikon is the single supplier of turnkey solutions Clean TCO Laser PECVD Laser TCO Laser Assembly

Oerlikon Solar's growth strategy § Increase in efficiency of solar modules § Development of new solar module concepts Technology § Increase in production efficiency § Huge expansion of own production capacities § Expansion of existing staff to 300 (by 2008) Production § Implementation of a research production line (by end 2007) § Proactive, aggressive marketing Marketing & Sales § Global market presence § Maintenance and development of technology leadership § Market leadership with market share > 50 % Targets § Annual growth rates significantly above market average

Oerlikon – supplier of green technologies § Oerlikon Balzers Coatings in the automotive sector § 10 times longer life of components § 4% less fuel consumption § Elimination of polluting lubricants § Oerlikon Leybold Vacuum § Develops and builds vacuum solutions for the solar industry (wafer-based and thin film technology) § Oerlikon Textile § Introduction of the e-save® program for sustainable energy savings in textile production machines Bild folgt

Oerlikon – supplier of green technologies § Oerlikon Fairfield Drive Systems § Develops and builds transmission systems for leading manufacturers of wind power systems § Oerlikon Space § Developer and fitter for various satellite programs for researching climate changes on our planet § Oerlikon Solar § Develops and builds turnkey end-to-end systems for thin film solar production systems § Leading researcher and developer in thin film silicon solar technology

Summary The switch has started Key position of solar energy Oerlikon as first mover § The switch to renewable energies has already started – climate change and finiteness of fossil resources demand action. § Among the renewable energies, solar energy plays a key role. It has the greatest potential and has no disadvantages. § Oerlikon is the world‘s first supplier of the thin-film silicon process, which can provide users with industrially ready, turnkey production plants. The use of solar energy presents completely new prospects. § Market demand in the long term will be greater than the supply capability of the suppliers Economic success § Oerlikon Solar is exceptionally well positioned as a technology leader and is expanding this field of business at a rapid pace.

The technologies to handle the arising challenges of climate change are already available – Oerlikon Solar