EANS-Adhoc: SOLON SE / SOLON Presents Figures for H1 2011

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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10.08.2011

SOLON Presents Figures for H1 2011

- Group revenues lower than expected at EUR221.9 million
- Negative EBIT of EUR32.7 million; EUR63.1 million net loss
- Investment in Blue Chip Energy GmbH fully written off

Berlin, August 10, 2011. Berlin-based SOLON SE today presented its
figures for the period ended June 30, 2011.

In the past quarter, business performance continued to be impacted by
a weak market environment. In the period from April to June in
particular, demand in Germany lagged significantly behind
expectations. Against the backdrop of the nuclear energy debate, many
customers appear to have deferred the purchase of solar systems or
speculated on a further erosion of system prices.

In the persistently difficult market environment, SOLON generated
Group revenue of EUR221.9 million in the first six months of the
year, of which EUR156.7 million came from the second quarter. This
represents an increase by 140% from the weak initial quarter of 2011.
At the same time, revenues in the first half of 2011 were 8% lower
year on year (H1 2010: EUR242.4 million). This means the company
missed its revenue target for the first six months. Some 57% of sales
revenues came from the power plant business in the first half of the
year, and 79% were generated outside of Germany. SOLON produced
photovoltaic systems with a total operating performance of 114 MW in
the reporting period (H1 2010: 117 MW). As of June 30, 2011, SOLON
had a total of 805 employees at various locations in Europe and the
USA (December 31, 2010: 912).

The weak revenue performance also had a negative effect on the
earnings side. As a consequence, the company posted an EBIT loss of
EUR32.7 million (H1 2010: EUR2.3 million EBIT loss) and a EUR63.1
million net loss (H1 2010: EUR9.5 million net loss). This corresponds
to a net loss per share of EUR3.66 (H1 2010: EUR0.73 net loss). Net
financing expenses amounted to EUR32.7 million in the reporting
period (H1 2010: net financing expense of EUR11.5 million). Alongside
higher interest expenses, it included special effects in the amount
of EUR18.0 million related to the insolvency of the Austrian cell
manufacturer Blue Chip Energy GmbH (full impairment loss on a
shareholder loan and the interest on it).

Against the backdrop of the weak business performance, net debt as of
June 30, 2011 remained high at EUR402.4 million (March 31, 2011:
EUR402.1 million). Working capital decreased by EUR28.7 million to
EUR184.3 million (March 31, 2011:EUR213.0 million), which represents
a working capital ratio of 31% in relation to revenues of the past
twelve months. Receivables due as of June 30, 2011 declined by
EUR17.1 million to EUR131.3 million from the prior quarter (March 31,
2011: EUR148.4 million). Inventories of finished and unfinished goods
dropped to EUR142.0 million as of June 30, 2011, due to forced sales
accompanied by an adjustment of production planning (March 31, 2011:
EUR160.3 million).

The business trend in the current quarter indicates a noticeable
revival of demand in Germany. First signs of recovery are evident in
Italy, too, at least in the industrial rooftop segment, which in
contrast to large greenfield installations still offers attractive
returns under the new Italian feed-in law. As a provider of a number
of photovoltaic systems tailored for this segment, SOLON is well
prepared for the changed market conditions in Italy.

Considering the uncertainty regarding the speed of the expected
market recovery in the primary markets of Germany and Italy, however,
SOLON management does not at this point expect to offset the revenues
lost in the first six months by the end of the current year.
Accordingly, it confirmed its recently adjusted revenue and earnings
outlook. For the year as a whole, Group revenue is now expected to be
around EUR500 million, with a significant net loss and EBIT loss.

In response to the weak operating performance, management stepped up
the ongoing restructuring measures. In this context, additional cost
reduction potentials in the double-digit millions were identified in
cooperation with experienced consultants; they are now being
implemented as priorities with the objective of adapting cost
structures to the changed conditions as quickly as possible and hence
strengthening the competitiveness of SOLON in this difficult market
environment. SOLON management is also engaged in intensive
negotiations with the lending banks and guarantors regarding the
restructuring of corporate financing and is confident that these
negotiations will be successfully concluded in the course of the
fourth quarter.

The complete interim report of SOLON SE for the quarter ended June
30, 2011, is available for download from the company´s website
(www.solon.com).

SOLON SE
Therese Raatz
Investor Relations
Phone: 030 / 818 79 - 9305
Fax: 030 / 818 79 - 9300
Email: investor@solon.com

Further inquiry note:
Therese Raatz
Head of Corporate Communications
Tel.: +49 30 818 79-9305
E-Mail: therese.raatz@solon.com

end of announcement euro adhoc
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issuer: SOLON SE
Am Studio 16
D-12489 Berlin
phone: +49 30 818 79-9305
FAX: +49 30 818 79-9300
mail: investor@solon.com
WWW: www.solon.com
sector: Energy
ISIN: DE0007471195
indexes: Midcap Market Index, CDAX, HDAX, Technology All Share, GEX, ÖkoDAX
stockmarkets: regulated dealing/prime standard: Frankfurt, regulated dealing:
Berlin, Hamburg, Stuttgart, Düsseldorf, München
language: English