Intermediate Report. Intermediate Report

Transcription

1 Intermediate Report Intermediate Report January 1 March 31, 2010

2 2 PVA TePla AG Intermediate Report Q Important consolidated figures at a glance in EUR 000 Q Q Q Sales Revenues 33,032 38,634 34,588 Industrial Systems 6,813 10,854 10,866 Semiconductor Systems 3,370 10,858 15,992 Solar Systems 22,848 16,922 7,730 Gross profit 8,156 11,152 7,312 in % sales revenues R&D expenses Operating result (EBIT) 3,201 4,716 2,150 in % sales revenues Consolidated net profit for the period 1,975 2,905 1,586 in % sales revenues Earnings per Share (EPS) in EUR 1) Capital expenditure 206 1,285 4,224 Total assets 137, ,995 2) 122,081 2) Equity ratio in % ) ) Employees as of Incoming orders 18,694 16,292 33,116 Order backlog 71, , ,571 Book-to-bill ratio Cash Flow from operating activities ,490-5,798 1) Circulating shares on average: ) As of the reporting date December 31 Sales Revenues Q1, EUR million EBIT Q1, EUR million Consolidated Net profit Q1, EUR million

3 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 3 Content Intermediate Report January 1 March 31, 2010 Foreword by the Management Board 4 PVA TePla Shares 7 Interim Management Report 11 Sales Revenues 12 Orders 12 Research & Development 12 Investments 13 Net Assets and Financial Position 13 Results of Operations 14 Personnel 14 Market Opportunities and Risks 14 Developments after March 31, 2010, and Outlook 15 Interim Consolidated Financial Statements Consolidated Balance Sheet 18 Consolidated Income Statement 20 Consolidated Statement of Comprehensive Income 21 Consolidated Cash Flow Statement 22 Consolidated Statement of Changes in Equity 23 Selected Notes to PVA TePla AG Interim Consolidated Financial Report 24 Financial Calendar 29 Imprint 29

4 4 PVA TePla AG Intermediate Report Q Foreword by the Management Board Dear shareholders, business partners and colleagues, PVA TePla s consolidated sales revenues and profit developed as planned in the first quarter of Revenues amounted to EUR 33.0 million in the first three months, which is less than the EUR 38.6 million generated in the previous year. Together with an operating profit of EUR 3.2 million, we are on the way to achieving our annual targets: EUR 120 million in revenues and 8% 10% operating profit. Order intake in the first quarter developed differently in each division. While business in the Vacuum Systems, Plasma Systems and Analysis Systems business units became more upbeat, the Solar Systems division did not receive any further orders after the order from China for crystal growing systems last December. However, we are conducting a number of interesting negotiations with existing and potential new customers and are confident of achieving a positive order situation in the near future. With EUR 6.8 million revenues, the Industrial Systems division did not manage to reach the previous year s figure of EUR 10.9 million. As in the Semiconductor Systems division, which generated EUR 3.4 million in revenues compared to EUR 10.9 million in the same period last year, low order backlog from the previous financial year had a negative effect in this division. We took these revenues into account when making our plans for the entire year. Revenues in the Solar Systems division went up from EUR 16.9 million to EUR 22.8 million as a result of increasing business in China. values in the previous quarters, cash and cash equivalents amounted to EUR 27.0 million as of the reporting date on March 31, 2010, only slightly down on the high value on December 31, The balance sheet press and analysts conference on April 1, 2010, in Frankfurt on the publication of the 2009 business figures was well attended again this year. The participants mainly analysts and representatives of our banks gained an insight into the past and current financial years. That we receive invitations to conferences and road shows demonstrates the interest players in the national and international markets are continuing to display. We would like to thank you on behalf of ourselves and our division managers for the trust and commitment you have shown our Company. Peter Abel Chief Executive Officer Arnd Bohle Chief Financial Officer The liquidity position of PVA TePla Group remains positive. Despite cash flow from operating activities of EUR -0.6 million being slightly negative compared to the very positive

5 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 5

6 6 PVA TePla AG Intermediate Report Q1 2010

7 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 7 PVA TePla Shares PVA TePla AG, Wettenberg PVA TePla Shares 8 Shareholdings and Subscription Rights of Executive Body Members 8 Performance of PVA TePla Shares 9

8 8 PVA TePla AG Intermediate Report Q PVA TePla Shares In the first four months of 2010, the price of the PVA TePla share moved from EUR 5.13 to EUR 4.89 on May 6, In recent months, interest in our share continued to increase, which is also reflected in its trading volume. Companies similar to ours and relevant Prime Standard indices such as Technology All Share and DAXSubs. Advanced Industrial Equipment recorded comparable share price performance. In the first quarter, we introduced our Company at conferences and road shows in Germany and abroad and gave investors and analysts an idea of our latest progress. The future development of each division s order situation was the main topic. We are very pleased that another renowned financial institution, Commerzbank, started in February providing coverage for PVA TePla. Shareholdings and Subscription Rights of Executive Body Members Management Board Shares Mar. 31, 2010 Shares Dec. 31, 2009 Subscription rights Mar. 31, 2010 Subscription rights Dec. 31, 2009 Peter Abel 5,616,275 5,616, Arnd Bohle 3,000 3, Supervisory Board Shares Mar. 31, 2010 Shares Dec. 31, 2009 Subscription rights Mar. 31, 2010 Subscription rights Dec. 31, 2009 Alexander von Witzleben Dr Gernot Hebestreit Prof Dr Günter Bräuer

9 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 9 Performance of PVA TePla Shares January 2007 May 2010 in % / 1-day-interval PVA TePla AG DAXSubs. Advanced Industrial Equipment Tec All Share

10 10 PVA TePla AG Intermediate Report Q1 2010

11 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 11 Interim Management Report PVA TePla AG, Wettenberg January 1 March 31, Sales Revenues Orders Research & Development Investments Net Assets and Financial Position Results of Operations Personnel Market Opportunities and Risks Developments after March 31, 2010, and Outlook 15

12 12 PVA TePla AG Intermediate Report Q Interim Management Report PVA TePla AG, Wettenberg January 1 March 31, Sales Revenues Consolidated sales revenues amounted to EUR 33.0 million in the first three months of 2010 (previous year: EUR 38.6 million), down year on year. Due to the low order intake in 2009, revenues in the Industrial Systems division came to EUR 6.8 million (previous year: EUR 10.9 million). As expected, revenues in the Semiconductor Systems division dropped to EUR 3.4 million (previous year: EUR 10.9 million) due to a lack of new orders for crystal growing systems. The Solar Systems division was able to increase its revenues to EUR 22.8 million (previous year: EUR 16.9 million). 2. Orders In the first quarter of 2010, PVA TePla received orders to the value of EUR 18.7 million (previous year: EUR 16.3 million). The book-to-bill ratio therefore went up to 0.57 (previous year: 0.42). Order intake in the Industrial Systems division amounted to EUR 8.9 million, significantly up on the low value of EUR 4.5 million in the previous year. This was mainly due to the sale of hard-metal sintering systems to Asia. We are particularly pleased to have sold a second large vacuum-pressure sintering furnace for the production of hard metal to Japan, a market that has until now been largely closed for this type of systems. The Industrial Systems division had already received an order for such a system in the fourth quarter of The Semiconductor Systems division achieved order intake of EUR 9.0 million (previous year: EUR 8.5 million). We were able to secure orders for systems from Japan in this division as well. Several crystal growing systems for producing silicon carbide crystals are going to be delivered to a Japanese wafer manufacturer during the course of Order intake in the Plasma Systems and Analysis Systems business units developed very positively. The Solar Systems division generated an order intake of EUR 0.8 million (previous year: EUR 3.2 million). As this division is mainly dependent on large orders for crystal growing systems and we did not expect to receive such orders in the first quarter, order intake was extremely low. We are currently conducting several promising negotiations about large projects in this division. Order backlog, consolidated and after already realized revenues shares according to the Percentage of Completion method (PoC), was EUR 71.1 million as of March 31, 2010 (previous year: EUR million). The Industrial Systems division had an order backlog of EUR 13.8 million as of the reporting date on March 31, 2010 (previous year: EUR 21.4 million). The Semiconductor Systems division recorded an order backlog to the value of EUR 16.0 million compared to EUR 35.5 million in the previous year. The Solar Systems division had an order backlog of EUR 41.3 million (previous year: EUR 72.8 million) as of March 31, This order backlog is mainly attributable to an order placed by Bosch Solar Energy, previously ersol Wafers (ASi Industries GmbH), in April 2008 and an order from a Chinese customer placed in December 2009 for crystal growing systems for the production of monocrystalline silicon crystals. 3. Research & Development PVA TePla Group invested EUR 0.6 million into research and development in the first three months of 2010 (previous year: EUR 0.6 million). The Industrial Systems division carries out new developments as part of customer orders. These are not separately recognized as R&D expenses. The Semiconductor Systems division tested and successfully completed a newly developed blind pulling automation system for the floatzone system FZ-14M. This system

13 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 13 automates the crystal growing process to a large extent, therefore increasing the productivity of our customers. In the competence center for crystal growing systems in Wettenberg, the Solar Systems division continued its work on optimizing the productivity of the crystal growing process. Apart from lowering operating costs, another aim was to further speed up the growth process of crystals. 4. Investments Investments totaled EUR 0.2 million in the first quarter of 2010 (previous year: EUR 1.3 million) and related mainly to fixtures and fittings. 5. Net Assets and Financial Position The balance sheet total as of March 31, 2010, increased to EUR million compared to EUR million as of the reporting date on December 31, Non-current assets rose only slightly from EUR 47.6 million as of December 31, 2009, to EUR 48.4 million. The largest increase was recorded for deferred tax assets, which went up from EUR 3.3 million as of December 31, 2009, to EUR 4.5 million. Current assets totaled EUR 89.5 million (December 31, 2009: EUR 80.4 million). The largest change was the rise in coming receivables on construction contracts to EUR 15.4 million (December 31, 2009: EUR 8.9 million) due to order backlog being processed, particularly in the Solar Systems division. The value of inventories also increased from EUR 20.0 million as of December 31, 2009, to EUR 25.5 million in line with the order backlog being processed. Raw materials, consumables and operating supplies went up to EUR 9.8 million (December 31, 2009: EUR 7.5 million), work in progress to EUR 11.9 million (December 31, 2009: EUR 9.2 million), and finished products to EUR 3.8 million (December 31, 2009: EUR 3.3 million). Trade receivables dropped from EUR 17.2 million as of December 31, 2009, to EUR 13.6 million. Advance payments amounted to EUR 4.0 million, an insignificant change compared to EUR 3.7 million as of December 31, Other receivables rose to EUR 2.8 million (December 31, 2009: EUR 2.0 million) and tax assets (mainly from tax prepayments) to EUR 1.3 million (December 31, 2009: EUR 0.2 million). Cash and cash equivalents came to EUR 27.0 million, only slightly below the high value of EUR 28.4 million as of December 31, Non-current liabilities increased from EUR 25.2 million on December 31, 2009, to EUR 27.0 million. However, noncurrent financial liabilities dropped slightly to EUR 13.2 million (December 31, 2009: EUR 13.3 million) due to the scheduled repayment of loans. Retirement pension provisions rose slightly to EUR 7.8 million (December 31, 2009: EUR 7.7 million) as a result of a scheduled addition. The largest change resulted from deferred tax liabilities increasing to EUR 5.7 million (December 31, 2009: EUR 3.9 million) due to profits being realized on the basis of the PoC method and earlier than under tax accounting. Total current liabilities increased from EUR 51.7 million as of December 31, 2009, to EUR 57.9 million. Current financial liabilities primarily relate to the current positions of noncurrent financial liabilities. The Company had no significant current liabilities to banks as of March 31, 2010, due to its positive liquidity position. Trade payables went up to EUR 5.1 million (December 31, 2009: EUR 3.5 million) as a result of procuring materials for current orders. Obligations on construction contracts rose to EUR 1.3 million (December 31, 2009: EUR 0.6 million). Advance payments received on orders went down only slightly from EUR 16.4 million as of December 31, 2009, to EUR 15.9 million. The increase of other current provisions to EUR 15.6 million (December 31, 2009: EUR 12.6 million) was mainly attributable to higher provisions for follow-up costs. The rise of deferred liabilities to EUR 9.5 million (December 31, 2009: EUR 7.4 million) was primarily due to provisions for vacation entitlements and accrued overtime and for commissions. Due to the generated profits, the Company was able to increase its shareholders equity further to EUR 53.0 million (December 31, 2009: EUR 51.1 million). As the balance sheet total also increased, the equity ratio went down slightly, currently amounting to 38.5% (December 31, 2009: 39.9%). Cash flow from operating activities in the first quarter of 2010 was slightly negative at EUR -0.6 million compared to the excellent values of recent quarters (previous year: EUR +4.5 million). Cash flow from investing activities amounted to EUR -0.2 million (previous year: EUR -1.1 million). Cash flow from financing activities came to EUR -0.6 million (previous year: EUR -0.2 million). Total cash flow in the reporting period 2010, including changes caused by exchange rate movements, was EUR -1.4 million (previous year: EUR +3.0

14 14 PVA TePla AG Intermediate Report Q million). Free cash flow came to EUR -0.8 million (previous year: EUR +3.2 million). PVA TePla Group s liquidity position remains excellent, mainly as a result of the high level of cash and cash equivalents. 6. Results of Operations In the first quarter of the financial year 2010, revenues and profit were down on last year s values, as we had anticipated. The Group achieved an operating profit (EBIT) of EUR +3.2 million (previous year: EUR +4.7 million) and consolidated net income of EUR +2.0 million (previous year: EUR +2.9 million). The EBIT margin of 9.7% fell within the forecast range, but was also down on previous year s value of 12.2%. Return on sales came to +6.0% as of March 31, 2010, compared to +7.5% in the previous year. In line with revenues being lower, gross profit also dropped to EUR 8.2 million (previous year: EUR 11.2 million). The resulting gross margin was 24.7% (previous year: 28.9%). Selling and distribution expenses amounted to EUR 2.7 million, up on previous year s value of EUR 2.4 million. Administration expenses of EUR 2.1 million, on the other hand, were down on previous year s figure of EUR 2.4 million. A look at each division shows: The Industrial Systems division managed to increase its EBIT margin despite lower revenues. The Semiconductor Systems division suffered an operating loss, mainly due to very low revenues. The Plasma Systems business unit has by now been able to implement and complete the majority of restructuring measures explained in the Annual Report This did not have any material effects on the presentation in the 2009 annual financial statements. The savings generated by these measures in this division will significantly increase income from the second quarter onwards. The Solar Systems division was able to considerably push up revenues and income year on year. At EUR 0.6 million, financing expenses were lower than previous year s figure of EUR 0.8 million. The net interest position rose to EUR -0.5 million (previous year: EUR -0.7 million).the associate PVA MIMtech LLC generated income of EUR 0.03 million (previous year: loss of EUR 0.02 million). Income taxes of EUR -0.7 million (previous year: EUR -1.1 million) comprised actual tax expenses of EUR million (previous year: EUR -0.5 million) and deferred taxes of EUR -0.7 million (previous year: EUR -0.5 million). Please refer to our explanations in section C. of the notes to these interim financial statements for more details. 7. Personnel As of the reporting date March 31, 2010, the Group employed 507 people (March 31, 2009: 511 employees; December 31, 2009: 501 employees). The number of employees has therefore changed only slightly compared to the previous year. 8. Market Opportunities and Risks For the products of our Company, the opportunities in the markets depend on the investment activities of customers who process or produce high-tech materials. In particular, ongoing and future infrastructure measures in many countries create opportunities for the sale of our systems. Future markets such as photovoltaics also continue to harbor considerable growth potential. Here the Company is very well positioned since it has mastered all industrially relevant technologies for pulling silicon crystals, making it an attractive partner for solar wafer producers. Experts from various institutes are forecasting growth rates of approximately 50% in this industry for the next few years. The possible market entry of large corporations into this rapidly growing market will also result in new opportunities for system manufacturers, as will technological leaps in photovoltaics, which bring grid parity with conventionally produced electricity closer. Once the industry recovers, further new growth opportunities will also present themselves for the products of the Semiconductor Systems division mainly crystal growing systems used for pulling silicon crystals with a diameter of 300mm. The industry is only just starting to convert to larger wafer diameters and this process will need to continue in order to achieve further productivity improvements. Risks in the particular niche markets served by PVA TePla relate especially to unexpected fluctuations in capital investment activity on the part of customers and within specific industries. Risk is reduced by diversifying our range of products and services across different sectors including semiconductors, photovoltaics, tool making and hard metal technology, the production of high-quality metals and ceramics, the automotive and aerospace industries, and the electrical and electronic engineering sectors. The

15 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 15 effects of cyclical, commonly foreseeable fluctuations in market volume are primarily offset by increasing or decreasing outsourcing levels, although unexpectedly high demand can give rise to production bottlenecks. The strategy of maintaining a relatively low level of vertical integration allows rapid response in this regard. The PVA TePla Group also provides high-quality contract processing work such as plasma treatment, high-vacuum brazing and heat treatment of components in which greater customer demand has historically been seen in times of generally restrained capital expenditure. The semiconductor business a key segment for the Group is highly cyclical in nature, and for that reason involves the described opportunities as well as risks. In recent decades, the semiconductor industry has enjoyed average annual growth rates well above those of most old-economy industries, throughout periods of robust growth and recession. In recent years, the PVA TePla Group has seen major opportunities in expanding capacity to accommodate the manufacture of 300mm crystals. Risks resulting from markets affected by crises are reduced by diversifying into other markets in particular solar technology and new application areas for our systems. The general global economic situation can still not be reliably assessed at this time. While major industrialized nations are no longer in the midst of a recession as a result of the global financial and economic crisis during the current financial year, subsequent economic developments and especially the investment plans of many companies remain unclear. The Company is following economic developments closely. At this time, the order backlog is sufficient for capacity utilization until mid Order intake presented a mixed picture for each division at the beginning of Demand in the markets served by the Industrial Systems division is reviving. An increase in demand has been noted in the segments with series business (e.g. plasma systems) for the Semiconductor Systems division. There are a large number of occasionally larger projects in the photovoltaics field. Because of the extended negotiations involved in the project business, an overall clear outlook is difficult to define. Looking at the project situation however, especially in Solar Systems, we expect targets for 2010 to be obtained. Maintaining a low level of verticality affords a flexible structure for adjusting capacity as needed in the event of lower demand. This involves such things as increased assembly depth, reduced reliance on labor leasing and temporary employees, and the use of flextime working hours models. Potential implications for PVA TePla or our customers are incorporated into planning at an early stage. Should the projects currently under negotiation in the Solar Systems division be delayed, PVA TePla is ready to adjust its cost structure by implementing corresponding measures. In view of general economic developments, we are monitoring the financial position of our business partners even more closely. There are no discernible risks such as potential defaults. In the first three months of 2010, the opportunities and risks presented in detail in the Annual Report 2009 on pages 36 et seq. did not change significantly. 9. Developments after March 31, 2010, and Outlook There are no significant events after the close of the first quarter of We expect markets relevant to the Company to recover further in the coming months. Order backlog as of March 31, 2010, reassures us that our planning for the current financial year with regard to revenues is realistic. PVA TePla confirms its published 2010 forecast of an anticipated EUR 120 million consolidated sales revenues and an EBIT margin in the region of 8% 10%. We continue to see opportunities for large orders in the photovoltaics industry.

16 16 PVA TePla AG Intermediate Report Q1 2010

17 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 17 Interim Consolidated Financial Statements PVA TePla AG, Wettenberg as at March 31, 2010 Consolidated Balance Sheet 18 Consolidated Income Statement 20 Consolidated Statement of Comprehensive Income 21 Consolidated Cash Flow Statement 22 Consolidated Statement of Changes in Equity 23 Selected Notes to PVA TePla AG Interim Consolidated Financial Report 24

18 18 PVA TePla AG Intermediate Report Q PVA TePla AG, Wettenberg Interim Financial Statements Consolidated Balance Sheet as at March 31, 2010 Assets in EUR '000 March 31, 2010 Dec. 31, 2009 Non-current assets Intangible assets 8,656 8,726 Goodwill 7,615 7,615 Other intangible assets 1,041 1,111 Property, plant and equipment 34,077 34,477 Land, property rights and buildings, including buildings on third party land 29,789 30,044 Plant and machinery 2,003 2,102 Other plant and equipment, fixtures and fittings 2,285 2,331 Investment property Non-current investments Investments in associates Other non-current receivables Deferred tax assets 4,516 3,319 Total non-current assets 48,394 47,607 Current assets Inventories 25,452 20,028 Raw materials and operating supplies 9,802 7,536 Work in progress 11,852 9,223 Finished products and goods 3,798 3,269 Coming receivables on construction contracts 15,446 8,884 Trade and other receivables 20,300 22,885 Trade receivables 13,561 17,221 Payments in advance 3,972 3,708 Other receivables 2,767 1,956 Tax repayments 1, Cash and cash equivalents 26,996 28,369 Total currents assets 89,470 80,388 Total 137, ,995 The following notes are an integral part of the Interim Consolidated Financial Statements.

19 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 19 Liabilities and shareholders equity in EUR '000 March 31, 2010 Dec. 31, 2009 Shareholders' equity Share capital 21,750 21,750 Revenue reserves 32,059 30,081 Other reserves Minority interest Total shareholders' equity 53,044 51,126 Non-current liabilities Non-current financial liabilities 13,206 13,308 Other non-current liabilities Retirement pension provisions 7,816 7,739 Deferred tax liabilities 5,706 3,856 Other non-current provisions Total non-current liabilities 26,963 25,219 Current liabilities Short-term financial liabilities 2,671 2,702 Trade payables 5,146 3,480 Obligations on construction contracts 1, Advance payments received on orders 15,895 16,410 Accruals 9,504 7,383 Other short-term liabilities 1,414 2,070 Provisions for taxes 6,335 6,365 Other short-term provisions 15,630 12,627 Total current liabilities 57,857 51,650 Total 137, ,995 The following notes are an integral part of the Interim Consolidated Financial Statements.

20 20 PVA TePla AG Intermediate Report Q PVA TePla AG, Wettenberg Consolidated Income Statement January 1 March 31, 2010 in EUR '000 Jan. 01 March 31, 2010 Jan. 01 March. 31, 2009 Sales revenues 33,032 38,634 Cost of sales -24,876-27,482 Gross profit 8,156 11,152 Selling and distributing expenses -2,741-2,394 General administrative expenses -2,142-2,364 Research and development expenses Other operating income 1,154 1,148 Other operating expenses ,198 Operating profit (EBIT) 3,201 4,716 Finance revenue Finance costs Share of profits from associates Financial result and share of profits from associates Net profit before tax 2,698 3,956 Income taxes ,051 Consolidated net profit for the period 1,975 2,905 of which attributable to: Shareholders of PVA TePla AG 1,978 2,910 Minority interest -3-5 Consolidated net profit for the period 1,975 2,905 Earnings per share Earnings per share (basic / diluted) in EUR Earnings per share (diluted) in EUR Average number of share in circulation (basic) 21,749,988 21,749,988 Average number of share in circulation (diluted) 21,749,988 21,749,988

21 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 21 PVA TePla AG, Wettenberg Consolidated Statement of Comprehensive Income January 1 March 31, 2010 in EUR '000 Jan. 01 March 31, 2010 Jan. 01 March 31, 2009 Consolidated net profit for the period 1,975 2,905 of which attributable to shareholders of PVA TePla AG 1,978 2,910 of which attributable to minority interest -3-5 Other comprehensive income Currency changes Income taxes 0 0 Changes recognized outside profit or loss (currency changes) Changes in fair values of derivative financial instruments Income taxes 0 40 Changes recognized outside profit or loss (derivative financial instruments) Other comprehensive income after taxes (changes recognized outside profit or loss) of which attributable to shareholders of PVA TePla AG of which attributable to minority interest 0 0 Total comprehensive income 1,918 2,796 of which attributable to shareholders of PVA TePla AG 1,921 2,801 of which attributable to minority interest -3-5

22 22 PVA TePla AG Intermediate Report Q PVA TePla AG, Wettenberg Consolidated Cash Flow Statement January 1 March 31, 2010 in EUR '000 Jan. 01 March 31, 2010 Jan. 01 March 31, 2009 Consolidated net profit for the period 1,975 2,905 Adjustments to the consolidated net profit for the period for reconciliation to the cash flow operating activities: + Income tax expense 723 1,051 - Finance revenue Finance costs = Operating profit 3,226 4,698 - Income tax payments -1, Amortization and depreciation Share of profits from associates /+ Gains / losses on disposals of non-current assets 1-2 +/- Other non-cash expenses (income) ,846 5,425 -/+ Increase / decrease in inventories, trade receivables and other assets -9,252-4,315 +/- Increase / decrease in provisions 2, /- Increase / decrease in trade payables and other liabilities 3,000 2,815 = Cash flow from operating activities ,490 + Receipts from associates Proceeds from disposals of intangible assets and property, plant and equipment Acquisition of intangible assets and property, plant and equipment ,285 + Interest receipts = Cash flow from investing activities ,146 + Receipts from issuance of debt and borrowing of loans Payments from redumption of debt and loans /- Change in short-term bank liabilities Payment of interest = Cash flow from financing activities net change in cash and cash equivalents -1,284 3,106 +/- Effect of exchange rate fluctuations on cash and cash equivalents Cash and cash equivalents at beginning of the period 28,369 5,198 = Cash and cash equivalents at the end of the period 26,996 8,234

23 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 23 PVA TePla AG, Wettenberg Consolidated Statement of Changes in Equity January 1 March 31, 2010 in EUR '000 Shared issues Revenue reserves Other equity components Total Minority interest Total Shareholders equity Number As at January 01, ,749,988 21,750 19, , ,360 Total income 2, , ,796 As at March 31, ,749,988 21,750 22, , ,156 As at January 01, ,749,988 21,750 30, , ,126 Total income 1, , ,918 As at March 31, ,749,988 21,750 32, , ,044

24 24 PVA TePla AG Intermediate Report Q Selected Notes to PVA TePla AG Interim Financial Report January 1 March 31, 2010 A. General Information and Basis of Presentation PVA TePla AG is a stock corporation in accordance with German law. The Company is entered in the Commercial Register of the Giessen Local Court under HRB The registered address of the Company is Wettenberg, Germany. General Principles and Accounting Standards This quarterly financial report was prepared in accordance with International Financial Reporting Standards (IFRS). The interim financial report thus also complies with IAS 34 (Interim Financial Reporting). This interim financial report has not been audited. These notes mainly contain details of items in which there have been significant changes as against the consolidated financial statements as of December 31, Reporting Currency and Currency Translation The reporting currency and currency translation principles applied are the same as those used for the 2009 consolidated financial statements. The significant exchange rates of countries outside the euro zone that are included in the interim financial report are as follows: EUR = 1 Average rate Closing rate at reporting date Mar. 31, 2010 Dec. 31, 2009 USA (USD) China (CNY) Denmark (DKK) Singapore (SGD) Norway (NOK) Companies Included in Consolidation These interim consolidated financial statements of PVA TePla include its fully consolidated subsidiaries and one associate accounted for using the equity method. The following companies were fully consolidated in the interim financial statements as of March 31, 2010: Name PVA TePla AG (parent company) Registered office Wettenberg, Germany Equity interest PVA TePla America Inc. Corona / CA, USA 100% PVA Jena Immobilien GmbH Jena, Germany 100% PVA Vakuum Anlagenbau Jena GmbH Jena, Germany 100% Xi an HuaDe CGS Ltd. Xi an, China 51% PVA Löt- und Werkstofftechnik GmbH Jena, Germany 100% PVA Control GmbH Plasma Systems GmbH Wettenberg, Germany 100% Feldkirchen, Germany 100% PlaTeG GmbH Siegen, Germany 100% PVA TePla Singapore Pte. Ltd. Singapore 100% PVA TePla Analytical Systems GmbH Aalen, Germany 100%

25 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 25 The consolidated interim financial statements also include PVA MIMtech LLC, Cedar Grove / NJ, USA, an associate in which PVA TePla AG has a participating interest of 50%. The companies included in the PVA TePla AG consolidated group have not changed as against December 31, Principles of Consolidation The principles of consolidation applied in this interim financial report are the same as those applied in the consolidated financial statements as of December 31, The single entity financial statements included in the interim financial statements are prepared with consistent accounting policies according to IAS 27 (Consolidated and Separate Financial Statements). Accounting and Valuation Principles The accounting and valuation principles applied in this interim financial report as of March 31, 2010, are the same as those applied in the consolidated financial statements as of December 2009, with exception of a small change to low-value assets. Since January 01, 2010, the Group applies the new regulations on amortization and depreciation of low-value assets. Low-value assets costing up to EUR 410 are written down immediately, all other assets costing more than that are recognized and written down over their useful lives. Roundings The tables and figures used in these interim financial statements are based on precisely calculated amounts that are subsequently rounded to the nearest thousand euros or million euros. Rounding differences within tables and between figures thus cannot always be avoided. B. Notes to Selected Balance Sheet Items Coming Receivables on Construction Contracts As part of the partial recognition of sales revenues from customer-specific construction contracts based on the percentage of completion, any amount due from customers for contract work is reported as an asset in accordance with IAS These items are shown separately under Coming receivables on construction contracts. Obligations on Construction Contracts As part of the partial recognition of sales revenues from customer-specific construction contracts based on the percentage of completion, any amount due to customers for contract work is reported as a liability in accordance with IAS This results from the excess of invoiced amounts over the corresponding proportionate revenue. In the same way as for Coming receivables on construction contracts, these items are reported separately in the balance sheet. Only partial payments that are due on the basis of the progress of each individual system, and hence that meet the scope of progress billing, are recognized as invoiced amounts. Payments received at the inception of the order or partial payments that do not correspond to the progress of completion are presented separately as advance payments. Retirement Pension Provisions The addition to pension provisions was based on information on the expected pension provisions as of December 31, 2010, contained in the actuarial reports used to prepare the consolidated financial statements as of December 31, Short-term Financial Liabilities Current financial liabilities reported here totaling EUR 2.7 million (December 31, 2009: EUR 2.7 million) primarily relate to the current positions of non-current financial liabilities. Current liabilities to banks amounted to EUR 0.0 million (December 31, 2009: EUR 0.0 million).

26 26 PVA TePla AG Intermediate Report Q Other Financial Obligations Expenses for taxes on income break down as follows: There were no notable changes in other financial obligations from leases and other contracts as against the 2009 annual financial statements. in EUR 000 Jan. 01 Mar. 31, 2010 Jan. 01 Mar. 31, 2009 Current tax expense C. Notes on Selected Income Statement Items Taxes on Income Taxes on income are calculated on a best-estimate basis applying the projected weighted average tax rate for the full fiscal year. For companies in Germany, we have applied a tax rate of 28%. This includes corporation tax of 15%, a solidarity surcharge of 5.5% on corporation tax and trade tax of 12%. Deferred taxes were measured after they had been incurred using the tax rates stated above or, for companies outside of Germany, the country-specific tax rates. The actual tax charge is based on probable future tax liabilities and reimbursement claims. Deferred tax expense / income Total income taxes ,051 D. Notes on the Cash Flow Statement The cash flow statement was prepared in line with the same principles as in the annual financial statements 2009 and is structured in the same way. E. Additional Disclosures Segment Reporting PVA TePla Group is divided into three divisions: Industrial Systems, Semiconductor Systems and Solar Systems. This should afford a sharper product focus in individual markets and enhance operational transparency for the capital markets. Performance is assessed and decisions regarding the assignment of resources to the segments are made on the basis of PVA TePla AG s three divisions. The following segment reporting therefore follows the Group s organizational structures of three divisions based on PVA TePla s group internal management system. Cross segment transaction this mainly concerns PVA Vakuum Anlagenbau Jena GmbH, which is assigned to Semiconductor Systems for organizational purposes but also works for Solar Systems are broken down accordingly for segment reporting. The following tables provide a general overview of the operating segments of PVA TePla AG. In line with IFRS 8, segment reporting also includes a reconciliation from the total segment results to the Group s net income for the period.

27 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 27 The segment information for the first quarter is as follows: in EUR 000 External sales revenues Internal sales revenues Total sales revenues EBIT % of sales revenues EBIT % of sales revenues Industrial Systems 6,813 10, ,730 11, % 1, % Semiconductor Systems 3,370 10, ,283 10,760-1, % % Solar Systems 22,848 16, ,848 16,922 3, % 2, % Segment total 33,032 38,634 1, ,861 39,035 3, % 4, % Consolidation Group 33,032 38,634 1, ,861 39,035 3, % 4, % The reconciliation of the segment results (EBIT) to the consolidated net profit for the period is as follows: in EUR 000 Q1 / 2010 Q1 / 2009 Total segment results 3,131 4,475 Consolidation Group operating profit (EBIT) 3,201 4,716 Financial result Share of profits from associates Net profit before tax 2,698 3,956 Income taxes ,051 Consolidated net profit for the period 1,975 2,905 Business relationships between the segments were eliminated in consolidation. Derivative Financial Instruments In PVA TePla Group, derivative financial instruments are used exclusively to hedge risks. In particular, these include exchange risks from sales in foreign currencies and interest rate risks. Currency Forwards and Hedging As the majority of sales are conducted in the respective currency of the supplying country (EUR in the euro zone, USD in the US), exchange risks only arise in a limited number of cases. If material contracts are concluded in a foreign currency, the exchange rate risks occurring as a result are covered by corresponding hedging transactions. A foreign exchange contract with an open volume of EUR 201 thousand or USD 282 thousand has been entered into in order to hedge the US Dollar payments on a delivery in the Industrial Systems division. The due date on this foreign exchange contract was set to correspond with the date when money was expected to be received. This foreign exchange contract was measured at fair value on the basis of the forward currency rate on the balance sheet date for the remaining term of the contract and its fair value as of March , totaled EUR -8 thousand. Foreign exchange contracts with an open volume of EUR 3,544 thousand or USD 4,910 thousand have been entered into in order to hedge the US Dollar payments for deliveries by the Semiconductor Systems division. The due dates on these foreign exchange contracts were set to correspond with the date when money was expected to be received. They were also carried at fair value at the balance sheet date. The fair value of these contracts is EUR -74 thousand.

28 28 PVA TePla AG Intermediate Report Q Interest Rate Hedging To hedge the interest rate risk for financing investments in newly constructed buildings at the Wettenberg and Jena sites, interest rate hedges originally totaling EUR 11,600 thousand were concluded. The open amount of these hedges as of the reporting date of March 31, 2010, was EUR 9,880 thousand. The fair value of these instruments is reported under other provisions, totaling EUR -752 thousand as of the reporting date. The loan of originally EUR 10 million to finance the new building at the Wettenberg site on which the above interest rate hedge is based had not been utilized as of March 31, Accordingly, the fair values of the interest rate derivatives and deferred taxes on these were not reported under other provisions. The fair values (cumulatively EUR -720 thousand, EUR -109 thousand of which are recognized in income in the first quarter of 2010) were recognized under financing expenses. Related Parties There are two relevant categories of transactions with related parties for PVA TePla Group: transactions with companies in which executive officers of PVA TePla AG have significant shareholdings or over which they exercise significant influence, and relationships with the associated company PVA MIMtech LLC, Cedar Grove / NJ, USA. Relationships with Executive Officers The ordinary business activities of PVA TePla Group involve the exchange of services with companies in which the Chief Executive Officer of PVA TePla AG holds shares or over which he exercises significant influence. All transactions are conducted at arm s length conditions. As in the past, the relevant transactions by PVA TePla AG with related parties are limited to IT companies. In the first quarter of 2010, the value of the purchases from these companies amounted to EUR 260 thousand and the value of sales to EUR 0 thousand. The net amounts of outstanding receivables and liabilities as of the reporting date on March 31, 2010, were EUR 0 thousand and EUR 34 thousand respectively. Relationships with Associated Companies No services were exchanged between PVA TePla AG and the associated company PVA MIMtech LLC, Cedar Grove / NJ, USA.

29 Foreword PVA TePla Shares Management Report Financial Statements Financial Calendar / Imprint 29 Financial Calendar 2010 Date June 21 Annual Shareholders Meeting August 13 November 5 November Publication of the Q2 Report Publication of the Q3 Report German Equity Forum Imprint PVA TePla AG Im Westpark Wettenberg Germany Phone +49 (0) 641 / Fax +49 (0) 6 41 / info@pvatepla.com Internet Investor Relations Dr Gert Fisahn Phone +49 (0) 6 41 / gert.fisahn@pvatepla.com Text PVA TePla AG German / English Layout / Print IR-One AG & Co,. Hamburg Photos Jürgen Jeibmann Photographik Naumburger Straße Leipzig Germany This report is available for download in English and German on the Internet at under Investor Relations / Reports. In case of doubt, the German version shall be authoritative. Published by PVA TePla AG

30 PVA TePla AG Im Westpark Wettenberg Germany Phone +49 (0) 641 / Fax +49 (0) 641 / info@pvatepla.com Internet