Meyer Burger Technology AG — Earnings Release 2011

Feb 6, 2012

News Details

Ad-hoc | 6 February 2012 18:00

Roth & Rau AG: Preliminary results for 2011

Roth & Rau AG / Key word(s): Preliminary Results

06.02.2012 18:00

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Roth & Rau AG:
- Preliminary results for 2011
- Further measures adopted within cost and structure optimisation programme
- Future financing secured

Hohenstein-Ernstthal, 6 February 2012 - The tough market climate in the
solar industry clearly left its mark on the sales and earnings performance
of Roth & Rau AG in the 2011 financial year. Based on preliminary figures,
consolidated sales fell year-on-year from EUR 285 million to EUR 208
million. New orders net of cancellations amounted to EUR 153 million (2010:
EUR 537 million). Orders on hand totalled EUR 141 million as of 31 December
2011 (31.12.2010: EUR 336.5 million). At EUR -107 million, earnings before
interest and taxes (EBIT) were sharply down on the previous year's figure
of EUR -27.3 million. The high negative earnings figure posted for the 2011
financial year was chiefly due to one-off items of EUR 93 million. This
figure included goodwill impairment losses of EUR 18 million recognised for
subsidiaries. Write-downs of receivables accounted for a EUR 19 million
charge on earnings. Furthermore, write-downs and impairment losses
totalling EUR 39 million were recognised on inventories and for property,
plant and equipment and intangible assets. Alongside these, as a risk
precaution provisions of EUR 12 million were recognised for contractual
risks. One-off expenses of EUR 5 million were incurred for the CRiSP cost
and structure optimisation programme and for the legal advice in the
context of the takeover by Meyer Burger Technology AG. Adjusted for these
items, EBIT amounted to EUR -14 million. Consolidated net income dropped to
EUR -123 million (2010: EUR -25.8 million).

Due to these negative earnings figures, shareholders' equity fell from EUR
251 million to EUR 127 million. The equity ratio as of 31.12.2011 remained
solid at 53% (31.12.2010: 58%) - not least given the substantial curtailing
in the balance sheet due to adjustments for one-off items. The Group had
cash and cash equivalents of EUR 30 million as of the balance sheet date
(31.12.2010: EUR 108 million).

Further figures and details will be published with the Annual Report on 22
March 2012.

Far-reaching restructuring programme adopted
At a meeting held today, the Supervisory Board of Roth & Rau AG approved
the proposal submitted by the Management Board to supplement the actions
already taken within the CRiSP cost and structure optimisation programme
with additional measures. The aim is to adjust cost structures at short
notice in line with the changed market position so as to ensure a rapid and
sustainable improvement in the company's earnings and financial strength.
It is planned to close locations and cut significant numbers of personnel.
Following the implementation of all measures, of the current total of 26
subsidiaries only 12 companies will remain within the Group. The workforce
is to be downsized from 1,350 to less than 1,150 employees.

Simplification of group structure
Roth & Rau's affiliation within the Meyer Burger Group since 2011 has
resulted in synergy potential, especially in the Asian market, in terms of
both market and cost structures. In future, local customer support in Asia
is to be provided by Meyer Burger's sales and service companies. Roth &
Rau's subsidiaries and outlets in China, Taiwan, India, Korea and Singapore
will therefore be closed. To safeguard the company's market presence, the
sales and service employees will be taken over by Meyer Burger. By merging
their sales activities, the companies can pool their competencies and
generate personnel and administration cost savings. To further boost the
Group's earnings strength, loss-making subsidiaries are to be discontinued.
This measure will affect the production company in Italy and the sales
companies in Australia and the USA. In Germany, the complexity of the group
structure is to be further reduced by merging companies.

Creation of competitive cost structures
Further components of the restructuring package are aimed at returning the
Roth & Rau Group's costs to competitive levels. At the Hohenstein-Ernstthal
location, where around 420 employees currently work, the ongoing crisis in
the solar industry will lead to around 15% of these jobs being cut. The
Management Board regrets these measures extremely, but views them as
indispensable to ensure the company's competitiveness in an ever tougher
market climate. Furthermore, material and other non-personnel costs will be
reviewed across all production companies to generate further cost savings.

All measures are planned to be implemented in full by the end of the first
half of 2012. Annual savings of EUR 18 million are expected from 2013. The
one-off restructuring expenses are expected to result in a EUR 3 million
charge on earnings in 2012. Provided that the underlying framework does not
deteriorate even further, the measures initiated will create the conditions
necessary for significantly lowering the Group's breakeven and for
returning to sustainably positive earnings.

Financing
Given the change of control triggered by the majority takeover by Meyer
Burger Technology AG, existing guarantee credit lines had to be
restructured in line with requirements. Accordingly, the existing syndicate
loan agreement for EUR 75 million was terminated by Roth & Rau AG within
the respective deadline as of 22 December 2011. Since 23 December 2011, the
Roth & Rau Group has had bilateral guarantee credit lines of EUR 42 million
made available on attractive terms by Meyer Burger Technology AG via German
banks. Furthermore, as of 10 January 2012 Meyer Burger Technology AG also
issued a binding letter of comfort in favour of the Roth & Rau Group. This
secures the allocation of liquidity by Meyer Burger Technology AG up to a
maximum amount of EUR 50 million should the need arise.

Contact:
Roth & Rau AG
Mario Schubert
Head of PR & Communications
Phone: 03723/671-3340
Email: mario.schubert@roth-rau.de

Better Orange IR & HV AG
Linh Chung
Phone: 0211/17804720
Email: linh.chung@better-orange.de

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Language: English
Company: Roth & Rau AG
An der Baumschule 6-8
09337 Hohenstein-Ernstthal
Germany
Phone: 03723 6685-0
Fax: 03723 6685-100
E-mail: info@roth-rau.de
Internet: www.roth-rau.de
ISIN: DE000A0JCZ51
WKN: A0JCZ5
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

End of Announcement DGAP News-Service

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