EANS-News: centrotherm photovoltaics confirms preliminary results and looks back on a challenging 2011

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Company Information

Subtitle: • Revenue up by 11.9 percent to EUR 698.5 million

• Earnings trend reflects difficult sector environment:
Operating loss (EBIT) of EUR 19.8 million
• Group launches ct focus efficiency program to cut costs and further adjust
capacities

Blaubeuren (euro adhoc) - March 27, 2012 - With today's publication
of its 2011 annual report, centrotherm photovoltaics AG confirms the
preliminary results it announced on March 6, 2012, and presents
further figures. Revenue advanced by 11.9 percent to EUR 698.5
million (2010: EUR 624.2 million), with the export share standing at
95.4 percent (2010: 94.7 percent). Total operating performance grew
by 11.1 percent to EUR 757.0 million (2010: EUR 681.2 million).
Earnings before interest, tax, depreciation and amortization (EBITDA)
fell from EUR 101.3 million to EUR 10.2 million. The Group incurred
an operating loss before interest and tax (EBIT) of EUR 19.8 million
(2010: operating profit of EUR 75.4 million), and a consolidated net
loss of EUR 15.9 million (2001: net income of EUR 51.1 million).

The equity ratio fell to 41.1 percent due to the consolidated net
loss and the dividend payout (2010: 49.2 percent). Our liquidity
position amounted to EUR 137.6 million as of the December 31, 2011
balance sheet date.

"2011 was no easy year for us. While the first half of the year was
still characterized by a thoroughgoing order boom that prompted us to
expand our production capacities, we were confronted by price falls
and a deteriorating market from the third quarter of 2011.
Overcapacities and ruinous price declines burdened polysilicon
manufacturers, from wafers through to modules. This difficult sector
environment, coupled with the late-summer European debt crisis, the
banking crisis and uncertainties on financial markets demanded much
of our customers and us," commented Dr. Thomas Riegler, CFO of
centrotherm photovoltaics AG, at today's publication of the 2011
annual report. "These overall circumstances severely curbed our
customers' propensity to invest and their financing possibilities,
which fed through to modest new order intake in the third quarter.
The sector and financing situation worsened in the fourth quarter,
with our order situation finally undergoing a further drastic
deterioration."

The Management Board has responded to the continued strains in the
market and launched its ct focus efficiency program to run alongside
cost and sales campaigns that are already in place. The program's
stated objective is to grow sustainably and profitably with a
streamlined and efficient organizational structure, and a strategic
focus on crystalline silicon along the photovoltaic value chain.

Segment trends In the Solar Cell & Module segment, revenue was
increased from EUR 404.5 million in the previous year to EUR 607.9
million in a difficult 2011, thereby running counter to the general
sector trend. The strained market situation, particularly in the
fourth quarter 2011, fed through to the postponement and cancellation
of individual projects, necessitating the revaluation of inventories.
This pushed segment operating earnings down to EUR 71.9 million
(previous year: EUR 91.6 million). Revenue in the Silicon & Wafer
segment amounted to EUR 57.9 million (previous year: EUR 201.7
million). A loss of EUR 70.3 million was incurred at the EBIT level
(previous year: operating profit of EUR 21.2 million). This segment's
business trend was primarily affected by the strained sector
situation and the polysilicon price decline. Given the extreme
deterioration in the market and financing situations, the Management
Board was prompted to apply impairment charges to individual large-
scale projects in the third quarter of 2011, which significantly
burdened operating earnings.

Revenue of EUR 32.7 million was generated in the Thin Film Module
segment (previous year: EUR 18.0 million) - and predominantly by the
wholly-owned subsidiary FHR Anlagenbau. A EUR 21.4 million loss was
incurred at the EBIT level, in line with expectations (previous year:
operating loss of EUR 37.4 million).

Order trend reflects sector environment The reporting year elapsed
was characterized by continued uncertainty on financial markets, the
difficult PV sector market environment, and customers' investment
reticence. centrotherm photovoltaics nevertheless booked new orders
with a total volume of EUR 423.4 million in the 2011 financial year.
The Solar Cell & Module segment generated 90 percent of these orders.
The order book position stood at EUR 423.0 million as of December 31,
2011, of which EUR 234.6 million was attributable to the Solar Cell &
Module segment, EUR 176.1 million to the Silicon & Wafer segment, and
EUR 12.3 million to the Thin Film Module segment.

2012 outlook centrotherm photovoltaics will be confronted by
challenges again in 2012 with some uncertainties. The sector is
undergoing a consolidation phase, and its further development depends
on a large number of factors, including influences from politics and
the financial markets, which are currently difficult to predict.
centrotherm photovoltaics has prepared accordingly with our ct focus
efficiency program. The technology and equipment provider is not
assuming a significant change to the current situation during the
first half of 2012.

"We also regard continued cost pressure in the photovoltaic sector as
an opportunity for two reasons. First, our customers, manufacturers
of solar cells and modules, and polysilicon, are focusing on
highly-efficient technologies and production systems that lend them
competitive advantages. Second, photovoltaics is quite clearly on a
medium- to long-term growth path driven by the rising energy demand
worldwide, and the energy policy turnaround that has started,"
commented Robert M. Hartung, CEO and Management Board Spokesman of
centrotherm photovoltaics AG. "We prefer to refrain from issuing a
revenue and earnings forecast for the 2012 financial year given the
current market situation. We have positioned ourselves very well for
the future in strategic terms with our focus on our core
competencies, a strong large-scale project business and by directing
our sales efforts towards the MENA countries."

Note: The 2011 annual report can be downloaded from our website at
www.centrotherm.de, within the Investor Relations area.

About centrotherm photovoltaics AG centrotherm photovoltaics AG,
which is based at Blaubeuren, Germany, is the world's leading
technology and equipment provider for the photovoltaics sector. The
company equips well-known solar companies and new sector entrants
with turnkey production lines and single equipment to manufacture
silicon, crystalline solar cells and thin film modules. As a
consequence, the Group possesses a broad and well-founded
technological basis, as well as key equipment at practically all
steps of the photovoltaics value chain. centrotherm photovoltaics
guarantees its customers important performance parameters such as
production capacity, efficiencies, and completion deadlines. The
Group employed around 1,900 staff as of the December 31, 2011
reporting date, and operates globally in Europe, Asia and the USA.
centrotherm photovoltaics achieved revenue in the 2011 financial year
of around EUR 700 million. The company is listed in the TecDAX index
on the Frankfurt Stock Exchange.

Contact:
Saskia Feil
Senior Manager Investor & Public Relations
Tel: +49 7344 918-8890
E-mail: saskia.feil@centrotherm.de

Dr. Torsten Knödler
Manager Public Relations
Tel: +49 7344 918-8898
E-mail: torsten.knoedler@centrotherm.de

Further inquiry note:
Dr. Torsten Knödler
Manager Public Relations
Tel.: 07344 - 918-8898
E-Mail: torsten.knoedler@centrotherm.de

end of announcement euro adhoc
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company: centrotherm photovoltaics AG
Johannes-Schmid-Str. 8
D-89143 Blaubeuren
phone: +49 (0) 7344 91880
mail: info@centrotherm.de
WWW: http://www.centrotherm.de
sector: Energy
ISIN: DE000A0JMMN2
indexes: TecDAX
stockmarkets: free trade: Berlin, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing/prime standard: Frankfurt
language: English