CENTROSOLAR exceeds revenue and earnings forecast

• Record revenue and earnings figures in fourth quarter: EBIT more than 10 % of revenue
• Annual revenue (EUR 309 million) and EBITDA earnings (EUR 13.6 million) well above forecasts
• Net debt cut by 41 %
• Outlook for 2010: revenue growth of 10-20 % and doubling of EBIT to EUR 14‑16 million

With revenue of EUR 105 million and an EBITDA operating result of EUR 13.5 million, CENTROSOLAR Group AG yet again easily exceeded the previous quarter´s record figures (revenue EUR 82 million, EBITDA EUR 8.7 million) in the fourth quarter of 2009. Compared to the prior-year period, revenue actually showed an improvement of 17 % and EBITDA increased six-fold. With an operating result before interest and taxes of EUR 10.8 million, it moreover exceeded an EBIT margin of 10 % for the first time ever. CENTROSOLAR was consequently able to demonstrate the very dynamic growth and profitability inherent in its business model.

Both operating segments contributed to a similar degree to this achievement. The Solar Integrated Systems segment posted revenue growth of 26 % compared with the prior-year quarter. This achievement was substantially thanks to its strong position for small, roof-integrated systems in the French market, where the company has now advanced to become market leader. Whereas this division reported a negative EBIT margin of -4.8 % in the previous year, it achieved a positive margin of 8.5 % in the fourth quarter of 2009. The Solar Key Components segment, too, turned in a stronger revenue performance of EUR 28.7 million, compared with EUR 27.8 million in the previous year, and actually improved its EBIT margin from 11.5 % to 14.1 %.

CENTROSOLAR has thus posted record figures for the second successive quarter. This healthy performance in the second half of the year compensated for the operating burdens of the first half following the drastic slump in market prices, the closure of the production plant in Doesburg and the discontinuation of the cell manufacturing joint venture with Qimonda. Consolidated revenue for the year as a whole reached EUR 308.7 million (previous year EUR 332.6 million) and the EBITDA operating result EUR 13.6 million (previous year EUR 21.4 million). The company thus easily exceeded its own forecasts, according to the most recent of which revenue was expected to reach EUR 280 to 290 million and the operating result EUR 6 to 8 million.

The operating result before interest and taxes (EBIT) amounted to EUR 6.9 million (previous year EUR 12.0 million) and was strongly influenced by non-recurring effects. After elimination of IFRS 3 depreciation and amortisation, the costs of closing down the Doesburg plant and the operating costs for the establishment of Itarion, EBIT totalled EUR 12.3 million. It was moreover necessary to write down inventories by EUR 7.9 million in the past financial year following the dramatic slump in prices. Although it is impossible to rule out future write-downs on inventories, rising EBIT figures are expected for the current financial year thanks to the reduced level of inventories and the much slower pattern of price movements.

Earnings per share of EUR -1.94 were well down on the previous year´s figure of EUR 0.31, very largely due to the investment result of EUR -26.7 million caused by the discontinuation of Itarion. It was moreover not possible to offset this non-recurring effect against tax.

The company appreciably improved its balance sheet structure in 2009. The net working capital was virtually halved from EUR 68.6 million in the previous year to EUR 35.3 million. Net debt, too, was reduced from EUR 74 million (2008) to EUR 44 million (2009) despite the considerable added burden of having to absorb Itarion´s financial debt of EUR 16.5 million. It was influenced positively by both the capital increase effected in November, as a result of which the company accrued cash amounting to EUR 19.3 million, and the aforementioned improvement in working capital, on top of operating profit, of course. The equity ratio of 43 % is now actually higher than in the previous year (40.6 %).

For 2010, CENTROSOLAR Group AG expects to see revenue growth of 10 to 20 %, to a total of EUR 340 to 370 million, and a doubling of EBIT to EUR 14 to 16 million. The company also expects a continuation in profitable growth in subsequent years. Thanks to the strong international position that was built up through the export drive of recent years, CENTROSOLAR will benefit increasingly from global growth in the photovoltaic market. In the past year, the company already generated half its revenue outside Germany and is thus one of the "export champions" of the solar industry.

The Solar Key Components segment supplies patented mounting and solar glass products to the entire solar industry. The international business share of the Solar Integrated Systems segment, too, will continue to rise. The success factors here are its focus on roof systems and the strong position that its sales organisation has built up with local partners over many years. CENTROSOLAR furthermore has one of the best cost positions in Europe for solar module manufacturing. Thanks to the flexible sourcing of cells and production processes optimised with the help of experts from the solar, semiconductor and automotive industries, CENTROSOLAR´s large-scale plant in Wismar is operating increasingly profitably.

About CENTROSOLAR Group AG:
The listed company CENTROSOLAR Group AG, Munich, (stock exchange code WKN 540750) is one of the leading suppliers of photovoltaic (PV) systems for roofs and key components, with over 1,000 employees in Europe and the USA and annual revenue in excess of EUR 300 million (2009). Its product range comprises solar integrated systems, modules, converters, mounting systems and solar glass. It generates around half its revenue internationally. There are CENTROSOLAR branches in Spain, Italy, France, Greece, Switzerland, the Netherlands and the USA.

CENTROSOLAR has a solar glass manufacturing plant in Fürth and a module production plant in Wismar (Germany). Over the past two years, the production lines for the finishing of glass have been substantially extended in response to rising demand and now have an annual production capacity of up to six million square metres. Module manufacturing was also stepped up quite substantially in response to soaring demand. A completely new module plant certified to DIN ISO 9001:2000 with an annual capacity of 110 megawatt peak was erected in Wismar in 2008 (rising to 150 MWp in 2010), making it one of the largest and most effective such plants in Europe.