DGAP-News: Q-Cells SE / Key word(s): Final Results
Q.CELLS publishes annual results for 2011 - significant progress made
in financial restructuring process
27.03.2012 / 08:00
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Bitterfeld-Wolfen (Germany), 27 March 2012. Q.CELLS, one of the world's
leading photovoltaic companies, today published its unaudited annual
results for the 2011 fiscal year. These results show that the company
achieved sales in 2011 of EUR 1,023.1 million, thereby surpassing its
target of over EUR 1 billion. In 2010, sales totalled EUR 1,354.2 million.
EBIT (earnings before interest and tax) amounted to EUR -717.4 million in
2011 due to the unexpectedly difficult economic environment and
extraordinary items, while in 2010 EBIT had come to EUR 82.3 million.
Q.CELLS was therefore forced among others to revise down the value of
tangible and intangible assets by EUR 398.5 million and take EUR 129.1
million in impairment charges on inventories. Following net profit fell
from EUR 18.9 million in 2010 to EUR -845.8 million in 2011.
The company's net working capital was reduced from EUR 339.8 million at the
end of 2010 to EUR 149.9 million at the end of the last fiscal year. Cash
and cash equivalents at the end of 2011 came to EUR 304.9 million, in line
with the forecast. As a result, net debt fell to EUR 431.8 million at the
end of 2011, down from EUR 515 million at the end of Q3 2011. At the end of
January 2012, Q.CELLS reported a loss in equity according to German GAAP
(HGB) for the individual company Q-Cells SE. The executive board announced
a loss of half of the share capital in compliance with legal requirements
at an extraordinary general meeting held on 9 March 2012.
Production volumes for 2011 came to approx. 783 megawatt peak (MWp). Solar
cells, of which about 60% were produced at the Malaysian production
facilities, accounted for 717 MWp. The production of thin-film modules at
the subsidiary Solibro in Germany amounted to 66 MWp. Besides that,
crystalline modules with a total volume of 390 MWp were processed at
external partners and at the in-house module production line at
Bitterfeld-Wolfen.
Despite the decline of overall sales, the impact of the new Modules and
Systems business units was considerable: module sales accounted for about
26%, while systems sales came to around 33%. Q.CELLS would have shown a
much more severe fall in sales, if it had still operated as a pure play
solar cells manufacturer, given a fall in production volumes for solar
cells by 20 % and a fall in prices by 60 %. This shows that the strategic
transformation to becoming a supplier of PV solutions was the right
decision and delivers results.
The financial results are unaudited and therefore subject to potentially
further changes. The complete annual report will most likely be published
following the approval of the bondholders and shareholders of the proposed
financial restructuring. Developments until the date of publication can
result in a revision of the financial figures. The report at hand is based
on the assumption that Q.CELLS will succeed in restructuring its financial
obligations and in implementing the medium-term business plan to ensure its
survival as a going concern.
Significant progress made in financial restructuring
Q.CELLS continues to progress the restructuring of the company's financial
liabilities and has already reached a number of important milestones in
this process. At the beginning of February 2012, the company reached an
agreement in principle with main bondholders of all three outstanding
convertible bonds. The restructuring plan entails that the owners of the
convertible bonds originally due on 28 February 2012 will receive a cash
payment of EUR 20 million after all parties have agreed to our financial
restructuring plan and these measures have been implemented. Moreover, the
concept provides that holders of convertible bonds due in 2012, 2014 and
2015 exchange their bonds for shares in the company as part of a
debt-to-equity swap. A majority vote by bondholders had deferred the
maturity of that convertible bond originally due on 28 February 2012 to 30
April 2012 to prepare the implementation steps required in the
restructuring. In addition, the current planning foresees the distribution
of available liquidity to the bondholders to the extent that liquidity
exceeds certain minimum levels at the date the financial restructuring is
completed.
Following, current shareholders will then hold 5 % of Q.CELLS shares. In
addition, by exercising subscription rights shareholders will have the
opportunity to increase their shareholding by up to
5 % via new cash contributions.
In order to successfully implement the planned measurements, the holders of
the three convertible bonds must approve the proposed restructuring at
further creditor meetings that are to be held in the course of April 2012.
Afterwards, Q.CELLS will hold another extraordinary general meeting, likely
to take place at the end of May or in June, where the company will
recommend its shareholders to agree to the proposed capital cut and
subsequent capital increase, thereby securing the companies continued
viability.
Successfully restructuring the financial liabilities will enable Q.CELLS to
free itself from the majority of its debt and create a solid balance sheet
with adequate equity. As nearly debt-free company, Q.CELLS will be in a
unique position in a continuous challenging market environment, to benefit
from the high level of international growth predicted for the sector in the
medium term. The company expects the implementation of the agreed measures
for the restructuring of the financial liabilities to be completed at the
end of 2012.
Forecast
Q.CELLS expects another loss making year in 2012, following intense
competitive pressure and consolidation. However, after successfully
implementing the financial restructuring and medium-term business plan,
Q.CELLS is expected to return to a positive EBITDA (earnings before
interest, taxes, depreciation and amortisation) for the 2013 fiscal year.
The consequences of the changes in the German subsidies regime that are
currently being discussed are very difficult to predict. Despite the
expected negative impact on the business in Germany, it is the main
objective to minimise the effects on Q.CELLS' income and financial position
by strengthening the measures already taken. Current trends in purchasing
and sales prices, limitations on subventions for open field photovoltaic
installations and the movements on the euro-dollar exchange rate will, in
our view, have a short-term impact, in particular on sales. However, the
business plan prepared at the end of 2011 remains the basis of our
planning.
2011 2010
Production 783 MWp 1.014 MWp
Sales EUR 1.023,1 Mio. EUR 1.354,2 Mio.
EBIT EUR -717,4 Mio. EUR 82,3 Mio.
Net profit EUR -845,8 Mio. EUR 18,9 Mio.
The presentation of the full year figures 2011 can be downloaded in the
Investor Relations section on the website of Q.CELLS: www.q-cells.com
CONTACT
Q.CELLS
OT Thalheim, Sonnenallee 17-21
06766 Bitterfeld-Wolfen, Germany
FAX +49 (0)3494 6699.10000
WEB www.q-cells.de
Q.CELLS Corporate Communications
Ina von Spies, Alberta Rohardt
TEL +49 (0)3494 6699.10121
EMAIL presse@q-cells.com
Q.CELLS Investor Relations
Stefan Lissner
TEL +49 (0)3494 6699.10101
EMAIL investor@q-cells.com
Management: Dr Nedim Cen (CEO, CFO), Dr Andreas v. Zitzewitz (COO, CSO)
Chair of supervisory board: Prof Dr h c Karlheinz Hornung
End of Corporate News
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Language: English
Company: Q-Cells SE
Sonnenallee 17-21, OT Thalheim
06766 Bitterfeld-Wolfen
Germany
Phone: +49 (0)3494 - 6699-0
Fax: +49 (0)3494 - 6699-199
E-mail: q-cells@q-cells.com
Internet: www.q-cells.com
ISIN: DE0005558662, Wandelanleihe 2012: DE000A0LMY64,
Wandelanleihe 2014: DE000A1AGZ06, Wandelanleihe 2015:
DE000A1E8HF6
WKN: 555866
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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162352 27.03.2012
DGAP-News: Q.CELLS publishes annual results for 2011 - significant progress made in financial restructuring process
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