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.

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

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

Importance and growth of renewable energies

Solar energy has the greatest advantages Advantages Dis- advantages 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) Only works with wind Noise emission High investment Large installations (change in nature) 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) In some cases, still low efficiency Low operating & maintenance costs No follow-on costs Simple technology High efficiency Constantly available Recycling No pollutant emissions Surplus electricity can be stored Low maintenance & operating costs Integrates into environment Long life of systems Geothermal energy WindWaterBiomassSolar

Multiple applications for solar technology Features Applications Not connected to the electricity supply grid Near settlements (189 MW)*Everywhere (322 MW)* Connected to the electricity supply grid Distributed (2,417 MW)*Centralized (51 MW)*  Small domestic systems (>1 km from supply grid)  Above all in developing countries  0.5–1 kW  Use in undeveloped regions  0.1–1 kW  Energy supply of buildings  kW  Power stations for production of alternative energy  500–5,000 kW  Villages (e.g. street lighting, schools)  Households (e.g. lighting, refrigerators)  Commonly used electronic devices (e.g. calculators  Agriculture (e.g. water pumps)  Space/high-tech  “Normal” house roofs  Commercial buildings  Photovoltaic system integrated into building  Power stations Source: IEA, Sarasin, Lit. research, Expert interviews (Global installed PV power 2004)

Global Market 2005: dominated by Germany, Japan, USA Global production 2005:1,400 MW p (= 1.4 GW p ) Germany, Japan, USA:1,200 MW p USA Japan Germany

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 WaferThinfilm silicon Composition Raw material Applications Cost advantageHigher efficiency 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

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

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

Oerlikon is the single supplier of turnkey solutions CleanTCOLaserPECVD TCOAssembly Laser

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

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

Oerlikon – supplier of green technologies  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  Oerlikon Fairfield Drive Systems  Develops and builds transmission systems for leading manufacturers of wind power systems

Summary  Market demand in the long term will be greater than the supply capability of the suppliers  Oerlikon Solar is exceptionally well positioned as a technology leader and is expanding this field of business at a rapid pace.  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.  Among the renewable energies, solar energy plays a key role. It has the greatest potential and has no disadvantages.  The switch to renewable energies has already started – climate change and finiteness of fossil resources demand action. The switch has started Key position of solar energy Oerlikon as first mover Economic success

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