S.A.G. Solarstrom AG / Key word(s): Quarter Results 11.11.2010 08:18 --------------------------------------------------------------------------- Corporate News S.A.G. Solarstrom AG - significant sales and earnings growth in the first nine months of 2010 - EBIT increases by 213.8% to EUR7.5 million, EBIT margin at 5.4 % - Group sales increase by 82.5 % to EUR139.5 million - Foreign share of total sales at 48 % - Whole year 2010 well on target with forecast EUR8 to EUR11 million EBIT and between EUR190 and EUR210 million sales Freiburg, November 11, 2010. S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008), Freiburg, is impressively substantiating their growth targets for fiscal year 2010 with the results of the first nine months. EBIT tripled in comparison with the same period in the previous year and rose to EUR7.5 million (Q1 to Q3 2009: EUR2.4 million), and sales also grew strongly by 82.5% to EUR139.5 million (Q1 to Q3 2009: EUR76.5 million). The period result without minority interests increased by 124.6% to EUR3.9 million (same period in previous year: EUR1.7 million). All business areas contributed positively to the sales and earnings growth. The main drivers were the business areas Partner Sales and Plant Operation and Services, but the business area Project Planning and Plant Construction was also able to close the first nine months on a positive basis, despite considerable start-up costs for major projects abroad, with an EBIT of EUR2.5 million (Q1 to Q3 2009 -EUR0.3 million). The S.A.G. Solarstrom Group continued its impressive growth in sales and earnings in the third quarter of 2010. This was due firstly to the pull-forward effects of the reductions in the feed-in tariff as part of the Renewable Energy Act (EEG) in Germany, which were implemented on July 1 and October 1, 2010. Secondly, however, the well-filled project pipeline in other European countries is becoming increasingly important. 'We deliberately relinquished windfall gains in the German market and continued to forge ahead with our foreign projects', says Dr. Karl Kuhlmann, CEO of S.A.G. Solarstrom AG. 'This is now paying off. The foreign share of our sales is already 48% after nine months.' Project Planning and Plant Construction - German market remains very strong in third quarter The business area Project Planning and Plant Construction benefited from the strong German market and was able to compensate for the usual start-up costs for major projects, in Italy and France in particular this year. EBIT reached EUR2.5 million (Q1 to Q3 2009: -EUR0.3 million), sales increased to EUR80.8 million (Q1 to Q3 2009: EUR46.1 million). The EBIT margin was 3.1%. The margin fluctuates during the year due to reporting date effects, as it is essentially influenced by the degree of project completion or by the time of sale. For the entire year, S.A.G. Solarstrom AG is also anticipating an EBIT margin of over 5% in this business area. Partner Sales increases EBIT margin from 0.3% to 5.7% The pull-forward effects in Germany resulting from the reduction in feed-in tariffs for photovoltaics were highly visible in the business area Partner Sales. Sales doubled to EUR44.9 million in the first three quarters of 2010 (Q1 to Q3 2009: EUR22.8 million). The share of total sales rose to 32.2% (same period in previous year: 29.9 %). EBIT increased to EUR2.6 million (Q1 to Q3 2009: EUR0.07 million). The leap of EUR2.53 million in results shows that the 40 exclusive partners were able to fully exploit the market potential. The realignment of Partner Sales, focusing on strong, exclusive sales partners has thus completely paid off - the EBIT margin achieved 5.7% in the reporting period, compared with 0.3% in the same period of the previous year. Plant Operation and Services benefits from globally increasing service demand The business area Plant Operation and Services is documenting their continued first-class growth trend in the first three quarters of 2010. EBIT more than doubled with EUR1.7 million (Q1 to Q3 2009: EUR0.7 million) in the first nine months of 2010, the EBIT margin increased even futher to 15.1% (Q1 to Q3 2009: 13.2%). Sales increased by 96.6% to EUR11.2 million (Q1 to Q3 2009: EUR5.7 million). Around 80% of these sales are recurring. The reason for the rapid increase is the rising need for professional monitoring and forecast services worldwide, which is growing in proportion to the installed power. Power Production with increase in margin in the third quarter In the first nine months of 2010, the EBIT of the business area Power Production was at EUR0.8 million (Q1 to Q3 2009: EUR1.8 million), and the EBIT margin was 30.7%. The previous year's period included a one-time income in the amount of EUR1.2 million from the scheduled waiver of residual loans for certain installations constructed between 1999 and 2001 as a one-off special effect. Sales increased from EUR1.9 million in the previous year's period to EUR2.6 million in the first nine months of 2010. Up to now, the business area was only able to show a below-average profit from the 4.2 MWp Dehner Garden Center extension to the power plant park. This was due to the delays in the usual optimization and adjustment work at the beginning of the year caused by ice and snow, and locally contained damage to the system, following which it was disconnected for safety reasons. The below-average turnover was completely consumed by depreciation and fixed costs. The loss of earnings will be compensated by insurances, but is not yet included in the result of the first nine months of 2010. The system was only operated at full load again in the third quarter of 2010 and was able to generate significantly positive earnings - in the breakdown, the margin increased from 39.6% in the third quarter of 2009 to 43.2% in the third quarter of 2010. Foreign business perpetuates corporate growth The Executive Board is expecting strong project business to continue in the fourth quarter. The Group will forge ahead with medium-sized roof-top projects in France and the large-scale project with 48 MWp in North Italy. The Group's expansion and growth policies continue to remain ambitious, yet always with a careful assessment of the risks involved. One example of this is the foundation of meteocontrol North America. With the local presence of their service subsidiary as a 'door opener' for the US market, the S.A.G. Solarstrom Group will be able to minimize barriers to market entry and expansion costs, so that in future, USA projects can also be implemented profitably. The diversification of countries overall balances out regulatory risks from individual countries. 'Corporate growth could be considerably accelerated by additional capital or simpler financing processes. However, we are very satisfied overall with the business performance in the first three quarters, despite a challenging market environment', says Dr. Karl Kuhlmann. S.A.G. Solarstrom AG are anticipating sales of between EUR190 and EUR210 million and an EBIT of between EUR8 and EUR11 million for the whole year. The Executive Board and the Supervisory Board will publish the forecast for 2011 in December 2010. About S.A.G. Solarstrom AG S.A.G. Solarstrom AG (German security identification number: 702 100, ISIN: DE0007021008) of Freiburg i.Br., Germany, are a manufacturer-independent provider of high-quality photovoltaic plants configured to customers' individual needs. The group constructs efficient plants of all sizes both in Germany and abroad. S.A.G. Solarstrom AG also produce solar energy at their 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, remote and plant 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. Founded in 1998, S.A.G. Solarstrom AG are considered pioneers in the solar industry. Around 175 specialists work at the four locations in Germany and the foreign subsidiaries. S.A.G. Solarstrom AG are listed in the General 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 StraÃe 5 79111 Freiburg Germany www.solarstromag.com Public Relations / Investor Relations Jutta Lorberg phone: +49-(0)761-4770-311 Armin Baltzer phone: +49-(0)761-4770-368 e-mail: pr@solarstromag.com / ir@solarstromag.com 11.11.2010 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory 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 Deutschland Phone: + 49 761 4770 0 Fax: + 49 761 4770 555 E-mail: mail@solarstromag.com Internet: www.solarstromag.com ISIN: DE0007021008 WKN: 702100 Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Hamburg, München (m:access), Düsseldorf, Berlin, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: S.A.G. Solarstrom AG: Solarstrom AG - significant sales and earnings growth in the first nine months of 2010
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