EANS-News: centrotherm photovoltaics reports a successful first half in 2011: Sales and earnings up strongly thanks to outstanding technology and market leadership

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Company Information

Subtitle: • Sales up 54.0 % at EUR 428.6 million, operating
profit climbs 57.2 % to EUR 53.2 million • Solar Cell & Module
division returns EBIT margin of 21.4 % • Full-year sales and
earnings forecast for 2011 confirmed

Blaubeuren (euro adhoc) - August 10, 2011 - The technological
strengths of centrotherm photovoltaics AG have once again proven
their worth in the first half of 2011. In the first six months the
world´s leading supplier of equipment and technology to the
photovoltaics sector increased its sales by 54.0 % to EUR 428.6
million (H1 2010: EUR 278.3 million). At the same time, consolidated
operating profits (EBIT) were up 57.2 % at EUR 53.2 million (H1 2010:
EUR 33.9 million). The EBIT margin came in at 12.4 % (H1 2010:
12.2 %). The Solar Cell & Module division accounted for the lion´s
share of the company´s success, contributing around 89 % of sales
with an EBIT margin of 21.4 % (H1 2010: 23.4 %). Consolidated
earnings in the first half were up 63.3 % at EUR 37.4 million (H1
2010: EUR 22.9 million). As a result, earnings per share climbed
63.9 % to EUR 1.77 (H1 2010: EUR 1.08). The equity ratio amounted to
44.7 % (December 31, 2010: 49.2 %). The return on capital employed
(ROCE) rose to 29.8 % (H1 2010: 26.5 %).

"In the first six months of this year, we have profited from strong
demand which is clearly reflected in our Group figures," commented
Dr. Thomas Riegler, CFO of centrotherm photovoltaics AG. "Sales were
driven predominantly by single systems which accounted for 86.1 % of
sales revenues - that`s more than four fifths - especially in the
Solar Cell & Module segment." Sales revenues generated by the service
and replacement parts business in the first half of 2011 climbed
79.7 % to EUR 17.0 million (H1 2010: EUR 9.5 million). This business
is scheduled for further development in future.

Development by segments In the first half of 2011, the Silicon &
Wafer segment was determined by technological developments and
non-recurrent effects, alongside the consistent implementing of
projects, with several major projects being brought to completion at
the same time. centrotherm photovoltaics achieved sales revenues of
EUR 33.9 million through the sale of technology and plants for the
production of silicon, thereby falling short of the high level posted
a year ago (H1 2010: EUR 90.7 million). Segment EBIT came to EUR
minus 15.8 million due to a comparatively low level of revenues
coupled with non-recurrent expenses (H1 2010: EUR 7.8 million).
Improvements in the result are to be achieved by the end of the
financial year 2011 through a focused sales campaign and a cost
efficiency program. Moreover, centrotherm photovoltaics anticipate a
positive contribution to revenue and profit from the major project in
Qatar in the second half of 2011. In addition, customers are
currently placing increasing importance on integrated production
lines and positioning themselves along the whole value chain.
centrotherm photovoltaics therefore expects considerable revenue
potential in the future, particularly from the Ingot & Wafering
business. With this in mind, the photovoltaics specialist has
strategically positioned itself through new products such as brick
cropping and ingot squaring saws and upgrades to the current
crystallisation furnaces. On June 30 this year, orders on hand in
this segment stood at EUR 243.4 million (December 31, 2010: EUR 277.1
million).

The company achieved record results in the Solar Cell & Module
segment: Sales revenues doubled to EUR 382.0 million (H1 2010: EUR
180.3 million). This segment contributed 89.1 % of consolidated
turnover (H1 2010: 64.8 %). Operating profits (EBIT) were up 93.4 %
at EUR 81.7 million (H1 2010: EUR 42.2 million), with an EBIT margin
of 21.4 % (H1 2010: 23.4 %). At the end of the first six months
orders on hand in the Solar Cell & Module segment stood at EUR 444.9
million (December 31, 2010: EUR 513.8 million).

In the Thin Film segment centrotherm photovoltaics generated sales
revenues of EUR 12.7 million (H1 2010: EUR 7.2 million). Earnings
(EBIT) developed in line with expectations, improving to a negative
EUR 12.6 million (H1 2010: minus EUR 16.2 million), due in particular
to the cost of the ongoing technological development of thin film
systems. On June 30, orders on hand in this segment came in at EUR
27.0 million (December 31, 2010: EUR 52.9 million).

Order book and R&D On June 30, 2011 the Group had orders on hand
totaling EUR 715.2 million (December 31, 2010: EUR 843.8 million).
Orders received in the first six months amounted to EUR 344.5 million
(H1 2010: EUR 353.3 million). The number of employees on the
qualifying date of June 30, 2011 stood at 1,899 (December 31, 2010:
1,448). This increase was primarily due to the increased volume of
business and the first-time consolidation of the Group´s Chinese
subsidiary in Shanghai. As a pioneer in the solar industry
specializing in high-tech products, centrotherm photovoltaics
invested a total of EUR 21.7 million (H1 2010: EUR 18.8 million) in
research & development (R&D) in the first six months of 2011.

Outlook: Full-year sales and earnings forecast for 2011 confirmed In
a difficult market, the company is nevertheless aware that
manufacturers of solar cells are experiencing a perceptible demand
for high-performance cells and modules. In order to achieve high
levels of efficiency they in turn require the latest technology,
resulting in growing demand for upgrade packages from centrotherm
photovoltaics. "Both the market in general and our customers in
particular recognize our technological strengths and our competence
all along the solar value chain. With this in mind we are confirming
our forecast for financial year 2011 with sales rising to between EUR
690 and 710 million and an EBIT margin in the low double-digit
range," explained Robert M. Hartung, CEO and Management Board
Chairman of centrotherm photovoltaics AG.

Note: The full report for the first half of 2011 can be downloaded
from the Investor Relations section of company´s website at
www.centrotherm.de.

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, ingots and bricks, 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 employs about 1,900 staff members, and operates
in Europe, Asia and the USA. Centrotherm photovoltaics achieved
revenue in the 2010 financial year of EUR 624,2 million, EBIT of EUR
75.4 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: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English