Capital increase initiated to reduce interest burden
-Turnover from January to September 2008 increased by 65% to EUR 817m
-Positive EBITDA before one-time expenses
-Further important restructuring measures completed
-Asia's biggest solar farm successfully expanded by 4.4 MW, connected to the grid and handed over to the operator ready for use
-Capital increase also a basis for further growth
Hamburg – The Hamburg solar specialist Conergy AG has seen dynamic growth once more in Q3 of 2008 and has made further progress in its restructuring programme. Conergy increased its turnover by 27% to EUR 235m in Q3 of 2008 compared with Q3 in the previous year. This means that the company has boosted its turnover to EUR 817m for the first nine months of 2008, a 65% increase on the same period last year. Conergy was able to improve its gross margin to 15%, compared with 13% last year.
This, together with the results from comprehensive restructuring measures, has allowed Conergy to achieve an improved earnings before interest, taxes and amortisation (EBITDA) of EUR -29m (previous year: EUR -67m). Adjusted for one-time expenses, the EBITDA in Q3 comes to a small positive total of EUR 3m. In the first nine months of 2008, the company was also able to reach a positive EBITDA, of EUR 5m before one-time and special items.
One-time and special items amounting to EUR -13m were also reflected in the EBIT in Q3 of 2008. Nevertheless, at EUR -15m, the EBIT was a significant improvement on the same period last year (EUR -27m). The cumulative EBIT of the first nine months of 2008, standing at EUR -48m, also showed an improvement (previous year: EUR -75m). After taxes and interest, which represent a heavy burden due to the high proportion of debt, this leads to a result of EUR -40m for continuing operations in Q3 of 2008 (previous year: EUR -19m) and of EUR -98m for the first nine months of 2008 (previous year: EUR -51m). Taking into account the discontinued business units, the earnings after taxes for Q3 of 2008 amounted to EUR -78m (previous year: EUR -20m) and for the nine-month period they amounted to EUR -144m (previous year: EUR -53m).
Dieter Ammer is satisfied: “I am proud of our team, which has maintained its focus on our customers despite the restructuring programme. We are also making good progress with the restructuring of our business. Excluding special and one-time expenses, we have been able to report a steady improvement in operating results.”
Growth in all segments
Within the group segments, EPURON increased its turnover in Q3 by 56% to EUR 50m. In 2008, EPURON is responsible for planning and implementing large-scale projects in the fields of photovoltaics, wind, concentrated solar power and bio energy, and, in the quarter under report, benefited most substantially from the completion of two thin-film projects with a total capacity of around 9 MW.
In the Conergy PV segment, in which all photovoltaics activities including the large-scale projects will be bundled from 2009, the company increased its turnover by 21% in Q3 to EUR 185m. This reflects in large part successful sales in Spain, Italy and Asia. Asia's largest solar farm, in South Korea, has now been expanded by 4.4 MW to 24 MW and has been successfully connected to the grid.
In Q3, Conergy also put in place important measures in the context of its restructuring programme. The plant in Frankfurt (Oder) has started receiving wafers from the silicon supply contract with MEMC for the first time; the business units have been reorganised; business units which are not part of the core business have been largely divested and the structures within the group have been greatly simplified. Following the end of negotiations with LG Electronics, Conergy will continue to consider all options regarding the plant in Frankfurt (Oder).
Strengthening equity capital
In the third quarter, the positive operating results continued to be influenced by the currently high interest burden of the company. Therefore, Conergy has decided upon a capital increase of around EUR 400m. The company expects to receive the approval from the Federal Financial Supervisory Authority (BaFin) required for the prospectus today. As soon as this has been received, 363,000,000 new shares can be offered for EUR 1.10 per new share as part of the subscription offer yet to be published. The subscription period is likely to begin on 18 November 2008 and to end on 2 December (see separate press release for more information on this). “With this capital increase, we are significantly strengthening our balance sheet, thus making a large step towards sustainable, stable financing. We will thus gain the financial flexibility we need in order to concentrate fully on our downstream business,” says Dieter Ammer. Conergy intends to use the funds from the capital increase for the repayment of its EUR 240m bridge financing and for a part-repayment of its syndicated loan. In addition, the inflow is to be used for the continuation of the restructuring programme and for the growth planned for the years 2009 and 2010.
Dieter Ammer declares: “Even if the changed credit environment leads to shifts in individual distribution channels in the future, the global solar market is and will remain intact. Conergy benefits from a loyal customer base and offers its customers leading solar products. The improved financial structure will allow us to get off to a strong start in 2009. Here at the company, we are proud to be able to finally implement one of the last major steps in our restructuring programme. And because of this capital increase, we will use every opportunity for further operative improvement.”
About Conergy
Since its founding in 1998, Hamburg-based Conergy AG has sold more than a gigawatt in renewable energy, making it one of the biggest European suppliers of solar energy and other renewable energies, and a world leader in solar system integration. Of the one gigawatt in renewable energies, Conergy has installed more than 400 megawatts in its major projects, Of the total one gigawatt, 200 megawatts falls to its wind energy park projects and 800 to its globally marketed solar modules. According to the German Solar Industry Association (BSW) this is just under a fifth of the entire installed photovoltaic output in Germany. Calculative one in ten modules worldwide was produced, sold or installed by Conergy.
Listed on the Frankfurt Stock Exchange since 2005, the group pursues a global growth strategy, The company now produces, installs and designs solar power systems and wind turbines in around 20 countries. The Conergy Group is represented with its own branches on five continents.
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DISCLAIMER:
This communication is neither a prospectus nor does it constitute an offer to sell or the solicitation of an offer to purchase the shares or other securities of Conergy AG and it does not substitute the prospectus. Subject to the approval by the German Financial Supervisory Authority, which is expected today, a securities prospectus will be published prior to the offer period and made available free of charge by Conergy AG and the coordinators. The shares will be offered exclusively on the basis of the prospectus required to be approved by the German Financial Supervisory Authority.
This communication is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”).Any public offering of securities to be made in the United States of America will be made by means of a prospectus that may be obtained from Conergy AG and that will contain detailed information about the company and management, as well as financial statements. Conergy AG does not intend to register any part of the offering in the United States.
The information contained in this communication is not for publication or distribution in or into the United States of America, Canada, Australia or Japan and does not constitute an offer of securities for sale in the United States of America, Canada, Australia or Japan.
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