DGAP-News: S.A.G. Solarstrom AG confirms overall annual

DGAP-News: S.A.G. Solarstrom AG / Key word(s): Half Year Results S.A.G. Solarstrom AG confirms overall annual forecast 08.08.2013 / 07:30 --------------------------------------------------------------------- S.A.G. Solarstrom AG confirms overall annual forecast - Sales in first half of 2013 increased to EUR62.9 million (+64.6%) - Positive EBIT in Q2 at +EUR0.5 million, cumulated EBIT in first half-year at -EUR2.1million - Overall annual forecast confirmed at over 117 MWp installation volume and positive operating result Freiburg i. Br., August 8, 2013. S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008) has achieved a growth in sales of +64.6% to EUR62.9 million in the first half of 2013 (first half of 2012: EUR38.2 million). 23.8% of sales were achieved in Germany, 67.5% in the UK and 8.7% in other foreign countries. The EBIT in Q2 2013 was already positive at +EUR0.5 million. Although the cumulated EBIT was still -EUR2.1 million at the half-year mark, and the Group period result was -EUR6.3 million accordingly (first half of 2012: -EUR3.5 million), due to the high prefunding costs of project activity and still unrealized contributions to the result from the Wymeswold project, the positive result development is clearly visible. The Group has thus succeeded in implementing successful projects at home and abroad, despite the market environment, which remains very difficult and volatile. The S.A.G. Solarstrom Group, however, is taking two important steps as a result of the increasingly difficult market environment in Europe - it is considerably accelerating the internationalization of project activity outside of Europe and the loss-making business area Partner Sales is to be discontinued. At the same time, the secondary market business, integrated energy projects and power production projects for own consumption are being combined in a new business area called Project Sales. In the first half of 2013, the Group successfully established an international project pipeline beyond Europe and therefore confirms its forecast of an installation volume of more than 117 MWp and a positive operating result, despite massive market downswings in Europe. 'We currently see considerably greater opportunities for growth for plant construction in new markets outside of Europe. Mistakes in political decisions in Europe have led to a prosperous market being stifled', says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. 'Partner Sales is thus no longer viable for us. However, Europe remains a market for power production projects for own consumption, integrated energy projects, for services and the secondary market. We are very well positioned here. Despite the changed framework conditions in Europe, and based on our success in internationalization, we are anticipating that we will achieve our goals for 2013.' Plant Construction: Installation volume tripled The business area 'Project Planning and Plant Construction' has been renamed 'Plant Construction', in order to better distinguish it from the new business area 'Project Sales', with regard to its name. In the first half of 2013, S.A.G. Solarstrom AG tripled the installation volume to a total of 44.4 MWp (first half of 2012: 14.5 MWp), in comparison with the previous year's period, despite the difficult framework conditions. The focus of project activity in the business area Plant Construction (previously: Project Planning and Plant Construction) was in the UK in the first half of 2013. Other projects were implemented in Germany and Romania. Sales doubled to EUR51.4 million (first half of 2012: EUR25 million). At the half-year mark, at -EUR3.8 million (first half of 2012: -EUR4 million), the operative result still showed the prefunding costs of further planned project activity, including the activity in new markets such as Latin America, Turkey and South Africa. Moreover, the anticipated additional income from the 33 MWp Wymeswold project had not yet been realized by the key date. In this regard, S.A.G. Solarstrom AG will profit from a resale of the project company by the owner through a financial agreement. Partner Sales: Business area will be discontinued After two loss-making fiscal years in 2011 and 2012 as well as a loss-making business trend in the first half of 2013, S.A.G. Solarstrom AG will terminate the retail business with small photovoltaic systems performed by partners and discontinue the business area Partner Sales. The continuing pressure of competition in the German market, in which most of the partners operate, the massive regulatory changes and, last but not least, the discussion regarding punitive tariffs on Chinese module imports, robbed this market segment of its economic basis. In the entire first half of 2013, only around 3 MWp was installed by S.A.G.'s partners, while in the first half of 2012 it was 17.5 MWp. On June 30, 2013 this now discontinued business area achieved sales of EUR1.8 million (first half of 2012: EUR15.1 million), which corresponds to a decline in sales of 87.8% compared with the previous year's period.EBIT was -EUR0.9 million (first half of 2012: -EUR0.2 million), of which almost -EUR0.3 million amounts to the depreciation on goodwill. New business area Project Sales The new business area Project Sales includes the secondary market business with photovoltaic systems. In addition, power production projects for the production of electricity for own consumption as well as the development and implementation of integrated energy projects for small energy networks are included here, such as combined heat power and cooling systems in conjunction with photovoltaic systems. In the first half of 2013, no sales were yet realized in this new business area, but further projects for the secondary market have already been identified and negotiations initiated. Plant Operation and Services: Number of monitored systems increasing continuously The business area Plant Operation and Services achieved sales in the first half of 2013 in the amount of EUR8.5 million (first half of 2012: EUR9.4 million). The EBIT in the first half of 2013 achieved EUR1.4 million (first half of 2012: EUR1.6 million). In the previous year's period, the business area profited from pull-forward effects in anticipation of feed-in tariff changes, and in addition meteocontrol GmbH invested in further international expansion - an important setting of the course for further growth in sales and result. The number of systems monitored by meteocontrol GmbH rose on June 30, 2013 to around 32,800 systems with a total output of 7.4 GWp (June 30, 2012: around 27,000 systems, 5.6 GWp), and currently the figure is around 33,000 systems with a total output of 7.5 GWp. Power Production: EBIT in Q2 2013 above previous year's level As a result of the extraordinarily long and dull winter, sales in the business area Power Production was 24.3% below the previous year at EUR2.9 million in the first half of 2013 (first half of 2012: EUR3.8 million). EBIT was EUR0.3 million (first half of 2012: EUR0.7 million) and still shows the losses of Q1 2013. Even though sales in Q2 2013 at EUR2.1 million (Q2 2012: EUR2.4 million) did not quite reach the previous year's level, EBIT in Q2 2013 was still above the previous year's period at EUR0.7 million (Q2 2012: EUR0.6 million), due to the drop in overhead costs. Over the whole year, this business area still ensured two-digit EBIT margins, even taking into account fluctuations during the year caused by the weather. Strong project activity reflected in the balance sheet - positive operative cash flow At the key date of June 30, 2013 strong project activity was shown in the balance sheet with a high working capital and an expanded balance sheet total. The equity capital ratio was correspondingly temporarily at 12.3%. Without the impact of large-scale projects and the financing of the Group's own system park, the equity capital ratio would have been a solid 29.4%. The current debts were covered at 120% by current assets at June 30, 2013. Despite the considerable expansion in project activity, and the still negative EBIT in the first half of 2013, the operative cash flow in the first six months of fiscal year 2013 was +EUR1.1 million (first half of 2012: +EUR104.4 million, mainly due to the purchase price payment for a large-scale project. In Q2 2013 alone, a positive operative cash flow in the amount of EUR12.2 million was achieved (Q2 2012: -EUR53.4 million). Outlook for 2013 confirmed In view of its success in establishing an international project pipeline, the S.A.G. Solarstrom Group has confirmed its forecast for 2013 to further increase its installation and sales volume, which was around 117 MWp in 2012, and to achieve a positive operating result. About S.A.G. Solarstrom AG S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008) of Freiburg i.Br., Germany, is a manufacturer-independent provider of photovoltaic plants configured to customers' individual needs. The Group constructs plants of all sizes both in Germany and abroad. S.A.G. Solarstrom AG also produces solar energy at its own plants. S.A.G. Solarstrom AG's service portfolio covers the entire life cycle of photovoltaic plants, including forecast and energy services, yield reports, and remote service and maintenance, as well as insurance and financing. The Group thus offers a comprehensive value chain in photovoltaics, from yield reports, planning, construction, operations, and monitoring to optimization, repowering, and deconstruction. S.A.G. Solarstrom AG was founded in 1998. Around 200 specialists work at the four locations in Germany and the foreign subsidiaries. S.A.G. Solarstrom AG is listed in the Prime Standard of the Frankfurt Stock Exchange as well as according to the rules and standards M:access of the Munich Stock Exchange. Further information: www.solarstromag.com Contact: S.A.G. Solarstrom AG Sasbacher Stra�e 5 79111 Freiburg Germany www.solarstromag.com Public Relations / Investor Relations Jutta Lorberg phone: +49-(0)761-4770-311 e-mail: pr@solarstromag.com / ir@solarstromag.com End of Corporate News --------------------------------------------------------------------- 08.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: S.A.G. Solarstrom AG Sasbacher Str. 5 79111 Freiburg Germany Phone: + 49 761 4770 0 Fax: + 49 761 4770 555 E-mail: mail@solarstromag.com Internet: www.solarstromag.com ISIN: DE0007021008, DE000A1E84A4, DE000A1K0K53, WKN: 702100, A1E84A, A1K0K5 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München (m:access), Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 224782 08.08.2013