euro adhoc: Conergy AG / Earnings Forecast / Conergy AG launches programme focussing on profitable growth and efficiency

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9-month report

25.10.2007

Conergy AG launches programme focussing on profitable growth and
efficiency

• Aim: Distinct improvement in Conergy AG´s profitability •
Provisional figures for first nine months of 2007 well below
expectations • Revenues and profit guidance for 2007 reduced

Hamburg, 25 October 2007 - The Board of Management of Conergy AG is
launching a comprehensive company-wide programme focussing on
profitable growth with the aim of achieving a sustainable improvement
of the company´s efficiency and profitability.

The core elements of the programme are the strategic focus on
profitable areas of business, a stronger alignment towards profitable
growth in the photovoltaic sector together with an improvement in
cost and business structures. Initial measures, starting with a
comprehensive analysis of international activities, the business
sectors and the corporate structure, are to be implemented during the
current business year already.

Conergy´s Board of Management is initiating this programme against
the background of an unsatisfying earnings performance in the
financial year 2007.

On the basis of provisional figures for the first nine months of
2007, consolidated net income was EUR -8.8 million with revenues of
EUR 641.1 million. The development of revenues and gross earnings in
the third quarter was significantly influenced by delays in
deliveries of modules. These delays resulted in a revenue loss of
around EUR 130 million. Further variables influencing the development
of the group profit were a rise in personnel costs and in other
operating expenses. Working capital rose to around EUR 525 million at
the end of the third quarter. The target ratio of 20 per cent of
revenues by the end of the year is no longer regarded as achievable.

Up to the last moment there was the expectation that the quantity of
modules lacking would be delivered as agreed in the fourth quarter.
According to an up-to-date assessment, however, on-time delivery of a
considerable quantity in the fourth quarter is not secured. Hence the
Board of Management now anticipates revenue growth of at least 33 per
cent to over EUR 1 billion.

Concerning the development of earnings for the business year 2007,
the Board of Management expects operating earnings (EBIT) of EUR 40
million. This is set against expected risks in the region of EUR 30
to 50 million. The current expectation is therefore a corresponding
net loss.

This amended guidance is based on an up-to-date assessment of
potential opportunities and risks. Operating earnings will be
affected particularly by the anticipated negative influence of delays
in deliveries as well as by difficult business conditions in the
bio-energy sector.

The expected risks of 30 to 50 million Euros concern mainly risks
associated with the progress of major projects, risks from currency
hedging transactions and the expected impact of writedowns of
inventories and receivables.

The sales and earnings forecast for the 2008 business year is
expected to be updated after the end of the 2007 business year.

Preliminary figures for the third quarter and the first nine months
2007 (in EURm): Q3 2007

Revenues: 223.0
Gross profit: 53.9
Personnel costs: -31.1

Other operating income/
other own work capitalized: 8.5
Other operating expenses: -35.6
EBITDA: -4.4
EBIT: -8.9
Financial result: -4.1
Income tax: 2.8
Consolidated net income: -10.3

Q1-3 2007
Revenues: 641.1
Gross profit: 144.8
Personnel costs: -82.1
Other operating income/Other own work capitalized: 20.7
Other operating expenses: -76.3
EBITDA: 6.7
EBIT: -1.4
Financial result: -9.3
Income tax: 2.0
Consolidated net income: -8.8

end of announcement euro adhoc 25.10.2007 21:45:58
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ots Originaltext: Conergy AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Thorsten Vespermann
Tel.: +49 (0)40 27142-1631
Email: t.vespermann@conergy.de

Branche: Energy
ISIN: DE0006040025
WKN: 604002
Index: TecDAX, Technologie All Share, CDAX, HDAX, Prime All Share,
Midcap Market Index
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade


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