EANS-News: centrotherm photovoltaics publishes preliminary results and announces extensive efficiency program and refocusing

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annual result

Blaubeuren (euro adhoc) - - Revenue up 11.9 % to EUR 698.5
million

- EBIT operating loss of EUR 19.8 million
- "ct focus" efficiency program launched to reduce costs and further
adjust capacities
- Business refocusing: strategic concentration on crystalline silicon
along photovoltaic value chain

Blaubeuren, March 6, 2012 - centrotherm photovoltaics AG, Blaubeuren,
continued to report growth in the 2011 financial year, which was a
difficult year for the solar sector: revenue generated by the
globally leading provider of technology and equipment to the
photovoltaic sector grew by 11.9 % to EUR 698.5 million according to
preliminary figures (previous year: EUR 624.2 million). Earnings
before interest, tax, depreciation and amortization (EBITDA) fell
from EUR 101.3 million to EUR 10.2 million in the 2011 reporting
period. The company reported a EUR 19.8 million operating loss at the
earnings before interest and tax (EBIT) level (previous year: EUR
75.4 million profit). Continued tensions within the sector, in
particular, tangibly affected the 2011 earnings trend. One-offs
amounting to a loss off EUR 75.0 million arose from adjustments to
individual large-scale projects, and a weak third- and fourth-quarter
operating profit and corresponding adjustments, which reflected
market trends. Due to the surprisingly drastic deterioration in
market and financial circumstances, the Group failed to achieve its
guidance for the 2011 financial year of EUR 710 million of
consolidated revenue, and a slightly positive EBIT margin.

Segment trends In the Solar Cell & Module segment, revenue was up
from EUR 404.5 million in the previous year to EUR 607.9 million in
2011, thereby running counter to a generally difficult trend in the
sector. The strained market situation, particularly in the fourth
quarter of 2011, resulted in the postponement and cancellation of
some projects, and necessitated a revaluation of inventories, which
fed through to a fall in segment earnings to EUR 71.9 million
(previous year: EUR 91.6 million). In the Silicon & Wafer segment,
revenue stood at EUR 57.9 million (previous year: EUR 201.7 million),
and EBIT reported a loss of EUR 70.3 million (previous year: EUR 21.2
million profit). This segment's business trend was primarily affected
by the tense sector situation, and the polysilicon price fall. Given
the extremly worsening of the market and financial situation, the
Management Board was prompted to apply adjustments to individual
large-scale projects in Asia in the third quarter, which exerted a
considerably negative impact on segment operating earnings.

In the Thin Film Module segment, the company reported EUR 32.7
million of revenue (previous year: EUR 18.0 million) - predominantly
from the wholly-owned FHR Anlagenbau subsidiary. EBIT improved to a
EUR 21.4 million loss, in line with expectations (previous year: EUR
37.4 million loss).

Sector environment affects order trends The financial year elapsed
was characterized by ongoing uncertainty on financial markets, the
difficult photovoltaic sector market environment, and customers'
continued reluctance to invest. Correspondingly, centrotherm
photovoltaics reported EUR 423.4 million as its total new order
intake in the 2011 financial year. The Solar Cell & Module segment
generated 90 % 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 orders generated
in the Thin Film Module segment.

"ct focus" efficiency program launched The Management Board has
responded to the continued tensions on the market, and has launched
its "ct focus" efficiency program, which will run alongside costs and
sales initiatives that are already in place. The program's declared
objective is to grow profitably and sustainably with a streamlined
and efficient organizational structure, and a strategic focus on
crystalline silicon along the photovoltaic value chain. This
program's first step will entail a significant reduction of costs,
and an adjustment to Group personnel capacities. The company aims to
achieve around EUR 22 million of cost savings per year by the end of
2013. Along with a refocusing on business entailing production
systems and technologies to manufacture crystalline solar cells and
modules, and the production of high-purity silicon, a further
significant component of the program will be the expansion of the
Semiconductors & Microelectronics area. The Management Board has
decided in this connection to close the Thin Film Module segment at
the Blaubeuren site and to transfer some areas to Asia. This move
will bundle resources, and create a unit that is closely geared to
the market. An extensive sales campaign conducted by all segments
will complete the "ct focus" package of measures.

---- End of the ad hoc announcement ----

Supplementary information to the ad hoc announcement: "The course of
our business the past 2011 financial year shows that we were unable
to decouple from the difficult sector environment, despite our
excellent market position and technological strength," commented Dr.
Thomas Riegler, CFO of centrotherm photovoltaics AG. "We are still in
a turbulent market environment characterized by moderate order
intake. This requires us to flexibly adjust our organization
capacities in order to maintain our future competitiveness."

Measures in the "ct focus" efficiency program: COST PERSPECTIVE -
Cost reduction and capacity adjustment centrotherm photovoltaics has
reported dynamic growth over recent years, and has created capacities
accordingly. As a logical and consistent step, these capacities are
to be further adjusted to match current market requirements. We
reduced the massive buildup of overtime hours and vacation that we
acquired during the boom phase, and we launched short-time working in
the production area, for example. In addition, personnel adjustments
are to be implemented with the aim of significantly reducing costs
across the entire Group. Around 400 jobs are to be cut by mid-2012
from the 1,928 Group employees worldwide (status as of December 31,
2011).

ORGANISATIONAL PERSPECTIVE - Reorganization and refocusing As part of
the internal reorganization, process adjustments and more streamlined
management structures within individual Group companies will allow
synergies to be tapped, and the entire organization to be optimized.
The refocusing entails centrotherm photovoltaics' future activities
being concentrated on the traditionally stronger business of Solar
Cell & Module, including Semiconductors and Microelectronics, as well
as Silicon & Wafer. This area will include the further development of
new production technologies and procedures, and an ongoing
improvement of existing technologies and production systems. The
Group's refocusing in its Thin Film Module segment has already
started successfully with the conclusion of the CIGS project in
Taiwan.

- Large-scale project business and integrated factories as strategic
cornerstone The large-scale project business comprises a combined
offering of engineering, technology and production systems to build
silicon factories and integrated factories that range from silicon
through to the solar module. This business is an important
sales-driver, and will form an important strategic cornerstone as
part of the future corporate organization. With the founding of
centrotherm power solutions GmbH in Vienna, centrotherm photovoltaics
has expanded its engineering expertise in the project business to
include many years of specialist knowledge in large-scale plant
construction.

Particularly in its Silicon & Wafer segment, centrotherm
photovoltaics has successfully concluded several projects over recent
months, thereby qualifying for further orders. Two customer projects
were brought to a successful conclusion at the start of the 2012
financial year. Advanced discussions are currently being conducted
with customers for further projects in North Africa, the Middle East
and Asia.

SALES PERSPECTIVE - "Sales Push" The Management Board is assuming
that future growth opportunities will arise from the solar sector's
structural shift. The so-called "Sales Push" initiative was launched
in order to tap these potentials, and to continue to achieve rapid
sales successes. These measures include the cross-segment management
of key customers and core markets, a strategic evaluation of current
and future customer requirements, a strengthening of customer loyalty
activities, and the further tapping of certain customer segments such
as state companies and major industrial conglomerates.

- MENA growth region in focus Sales activities in the MENA region
(Middle East and North Africa) were bolstered considerably in 2011.
Along with the traditionally strong Asian business, centrotherm
photovoltaics' already good market position is to be further expanded
in this growth region in the future. The Middle East and North Africa
are witnessing growing interest in renewable energy sources, with the
aim of creating domestic industries. The MENA countries possess
favorable energy supplies, allowing them to competitively cover the
energy-intensive production steps along the photovoltaic value chain:
starting with metallurgical silicon, the raw material to produce
polysilicon, and moving through to polysilicon production, and the
manufacturing of ingots and wafers. The political will to create
local jobs is supporting and driving this strategy. With its range of
products and services, centrotherm photovoltaics is optimally
positioned to benefit from future investments in the MENA region.

Summary and outlook Robert M. Hartung, CEO of centrotherm
photovoltaics, drew the following summary: "The 2011 business year
posed major challenges for us. We failed to achieve the targets we
set ourselves as a result of the surprising deterioration in the
market and financial circumstances, particularly during the last few
weeks of the year. I am nevertheless pleased that we won new orders
against the sector trend in our traditionally strong Solar Cell &
Module business, and that we grew our revenue by 50 percent in this
segment. 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. We believe that photovoltaics is quite
clearly on a medium- and long-term growth path due to rising energy
demand worldwide, and the turnaround in energy policy that has
started. We aim to benefit from this with a streamlined and efficient
organization."

Note: The above figures are still subject to a final audit by the
company's auditor. The finalized figures and 2011 annual report will
be published on March 27, 2012.

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 modules, 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 around 1,900 staff, and operates
globally in Europe, Asia and the USA. The company is listed in the
TecDAX index on the Frankfurt Stock Exchange.

Further inquiry note:
Saskia Feil
Tel: +49 (0) 7344 918-8890
saskia.feil@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