centrotherm photovoltaics AG Interim Report 1 January to 31 March 2008 15 May 2008
Today s Speakers Robert M. Hartung CEO Oliver Albrecht CFO Tel: +49 (0) 7344 918 9111 Email: rmhartung@centrotherm.de Tel: +49 (0) 7344 918 8880 Email: oliver.albrecht@centrotherm.de Responsible for Group Strategy Legal Silicon Business Responsible for Finance Controlling Human Resources Investor Relations 2
Disclaimer We have exercised utmost care in the preparation of this presentation. It contains forecasts and/or information relating to forecasts. Forecasts are based on facts, expectations, and/or past figures. As with all forward-looking statements, forecasts are connected with known and unknown uncertainties, which may mean the actual result deviates significantly from the forecast. Forecasts prepared by third parties, or data or evaluations used by third parties and mentioned in this communication, may be inappropriate, incomplete, or falsified. We cannot assess whether information, evaluations, or forecasts made by third parties are appropriate, complete, and not misleading. To the extent that information in this presentation has been taken from third parties, or these provide the basis of our own evaluations, such use is made known in this report. As a result of the above-mentioned circumstances, we can provide no warranty regarding the correctness, completeness, and up-to-date nature of information taken, and declared as being taken, from third parties, as well as for forward-looking statements, irrespective of whether these derive from third parties or ourselves. Rounding differences may arise. 3
Content Highlights Update on Order Book Financials Outlook Performance of centrotherm photovoltaics share Financial Calendar and further IR-Dates 4
Highlights Expansion of the business Sales up fourfold (67.7 million euros) EBIT- Margin improved significantly to 12.5% (previous year: -0.2%) Number of employees rose to 330 as of 31 March 2008 New service and sales companies founded in Taiwan, the USA and Italy FHR Anlagenbau GmbH part of the Group since January 1, 2008 - FHR supplements technology in the thin-film area New large orders in the polysilicon business Further upward trend in the order backlog with a volume of 677.4 million euros 5
Update on Order Book Further upward trend on order book Development of Order Book ( m) 800 677 Strong increase of order book 1 thin-film turnkey line 600 463 24 turnkey solar cell lines (capacity: 775 MWp) 400 200 221 326 5 orders for delivery of key equipment for silicon production (capacity: 12,150 tons) 0 Analyst Presentation 13.08.2007 221 30.09.2007 31.12.2007 31.03.2008 Strong pipeline of single equipment orders by new and repeat customers Breakdown by Business Area as of 31.03.2008 Realization time 2010 Solar silicon 18 Mio. 35.6% 2008 2009 330-350 Mio. Solar cell 308 Mio. 57.9% Thin-film 6.5% 6
Sales and Total Output Sales and total output continued to increase in the first quarter 2008 Sales ( '000s) 80,000 40,000 0 Sales 67,677 + 435.3% 15,546 3M 2007 3M 2008 Sales amounted to 67.7 million euros 4 turnkey production lines and 31 singleequipments were delivered in the first three months of 2008 Total Output* Total Output ( '000s) 80.000 40.000 0 + 404.0% 67,985 16,829 3M 2007 3M 2008 Total output* increased to 68.0 million euros * Total output is the relevant key figure for the analysis of centrotherm photovoltaics business, as it comprehends changes of work in progress 7
Sales Breakdown Sales breakdown shows further increase of export quota Sales Breakdown by Region 3M 2008 Other 2.7% Europe 24.5% Export: 93.7% Asia continues to be the most important market with a share of sales of 66.5% Germany 6.3% Asia 66.5% Invoices almost solely in Euros Growing demand in Southern Europe, India and in the US expected Sales Breakdown by Product 3M 2008 Service and Replacement 2.4% Other 7.0% Sales from single equipment was higher than from turnkey production lines Turnkey production lines 40.8% 4 turnkey production lines were delivered in the first quarter 2008 Single Equipment 49.8% 8
Material and Personnel Expenses Group expansion as a cost driver for material and personnel expansion Material Expenses ( '000s) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Material Expenses 78.2% 73.0% 49,620 13,165 Material Expenses ratio* 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Material expenses amounted to 49.6 million euros resulting from the significant rise in business volume Material expenses ratio declined to 73.0% due to economies of scale 3M 2007 3M 2008 Personnel Expenses Personnel Expenses ( '000s) 8,000 6,000 4,000 2,000 0 7.8% 1,307 5.8% 3,936 3M 2007 3M 2008 Personnel Expenses ratio* 8% 7% 6% 5% 4% 3% 2% 1% 0% Personnel expenses rose to 3.9 million euros due to a strong increase in staff (from 95 employees as of 31 March 2007 up to 330 employees as of 31 March 2008) Personnel expenses ratio declined to 5.8% * referring to total output 9
Other operating expenses (1) Expenses show strong group expansion Other operating expenses ( '000s) 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Other operating expenses 17.1% 2,875 9.1% 6,220 3M 2007 3M 2008 Other operating expenses ratio* 16% 12% 8% 4% 0% Other operating expenses increased to 6.2 million euros due to the expansion of the business However, other operating expenses ratio declined to 9.1% due to a higher total output * referring to total output 10
Other operating expenses (2) Expenses breakdown shows high consultancy costs Other operating expenses breakdown by cost category 18.3% 4.1% 7.1% 9.5% 10.4% 12.5% 22.8% 15.3% Consultancy and other services Sales commissions Travel expenses Freight and packaging Research and development Insurance and contributions Premises expenses Others 11
EBIT and Net Income Strong development of EBIT and Net income margins in the first quarter 2008 EBIT ( '000s) 12,000 10,000 8,000 6,000 4,000 2,000 0 EBIT and EBIT Margin 12.5% 8,499-0.2% -38 3M 2007 3M 2008 EBIT Margin 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% EBIT amounted to 8.5 million euros EBIT margin increased to 12.5% mainly due to a higher total operating performance in relation with an improved expense situation Net Income and Net Income Margin Net Income ( '000s) Net Income Margin 10,000 8,000 6,000 4,000-0.6% 8.9% 6,080 9% 6% 3% 0% Net income rose to 6.1 million euros due to the higher operating profit and net financial result Net income margin increased to 8.9% 2,000 0-98 3M 2007 3M 2008-3% -6% Note: Margins refer to Total Output 12
Cash Flow Positive development of Cash Flow from Operating Activities ( 000s) Cash Flow from Operating Activities after NWC 60.000 59.346 50.000 40.000 30.000 20.000 10.000 3.345 0 3M 2007 3M 2008 Cash Flow from Operating Activities increased to 59.3 million euros due to improved EBT (+8.7 million euros) Increased trade payables (+9.4 million euros) higher received prepayments from customers and liabilities relating to construction contracts (+63.6 million euros) which overcompensated the rise in inventories, future receivables from construction contracts and prepayments rendered (-30.5 million euros) Total Cash Flow ( 000s) 18,000 10,000 2,000-6,000 3M 2007-1,103 11,884 3M 2008 Total Cash Flow rose to 11.9 million euros mainly due to the increased operating cash flow Cash flow from investment activities amounted to -47.5 million euros due to higher outgoing payments for investments in short-term securities, financial assets and goodwill Cash flow from financing activities was 0 million euros (selffinancing) Total cash was 196.9 million euros (including liquid funds amounting to 42.2 million euros and investments in money market funds amounting to 154.7 million euros) 13
Balance Sheet - Assets Assets 000s Non-current assets 37,541 10.3% ASSETS in TEUR 31.03.2008 31.12.2007 Non-current assets Intangible assets Goodwill 21,786 3,852 Internally generated intangible assets 3,619 2,404 Other intangible assets 213 170 Property, plant and equipment 10,727 4,309 At-equity investments 1,036 0 Other receivables and assets 160 113 Total 37,541 10,848 Current assets Inventories 3,424 1,058 Current assets 89.7% Receivables relating to production orders 47,729 28,013 Trade receivables 22,569 28,445 Other receivables Receivables due from equity interests 505 0 Receivables due from related companies 379 144 Advance payments made 41,653 32,072 Other assets 12,949 10,452 Securities 154,697 132,910 Cash and cash equivalents 42,185 30,301 Total 326,090 263,395 326,090 Total assets 363,631 274,243 Non-current assets amounted to 37.5 million euros due to investments in property, plant and equipment and the higher goodwill resulting from the acquisition of FHR Current assets rose to 326.1 million euros due to an increase in receivables relating to production orders, advance payments made and securities and cash (mainly from IPO) 14
Balance Sheet - Equity and Liabilities Equity and liabilities Equity EQUITY AND LIABILITIES in TEUR 31.03.2008 31.12.2007 000s 168,676 46.4% Equity Equity attributable to parent company shareholders Subscribed capital 16,000 16,000 Capital reserves 130,484 130,484 Revaluation reserve 1,537 732 Retained earnings 628 628 Consolidated net income 19,444 13,611 Minority interests 583 662 Total 168,676 162,117 Non-current liabilities Other non-current liabilities 2 0 Deferred tax 4,138 3,412 Total 4,140 3,412 Non-current liabilities 4,140 Current liabilities 190,815 1.1% 52.5% Current liabilities Provisions for taxes 2,321 1,624 Other current provisions 2,089 1,752 Liabilities arising from construction contracts 0 1,884 Trade payables 32,419 25,845 Advance payments received 139,202 67,047 Liabilities due to equity interests 1,875 0 Liabilities towards related companies 2,556 1,940 Other current liabilities 10,353 8,622 Total 190,815 108,714 Total equity and liabilities 363,631 274,243 Equity rose to 168.7 million euros mainly due to an increase in consolidated net income Equity ratio was 46.4% Currents liabilities increased to 190.8 million euros mainly caused by higher prepayments from customers 15
Key figures Positive development of key financials Key Figures 01.01.- 31.03.2008 01.01.- 31.03.2007 Revenue in TEUR 67,677 15,546 Total operating performance in TEUR 67,985 16,829 EBITDA in TEUR 8,678 36 EBITDA margin in % 12.8% 0.2% EBIT in TEUR 8,499-38 EBIT margin in % 12.5% -0.2% Consolidated net income in TEUR 6,160-135 Earnings per share in EUR 0.39-0.02 01.01.- 01.01.- 31.03.2008 31.03.2007 Capex in TEUR 22,788 452 Operating cash flow in TEUR 59,346 3,345 Number of employees as of the reporting date 330 95 31.03.2008 31.12.2007 Total assets in TEUR 363,631 274,243 Equity in TEUR 168,676 162,117 Equity ratio in % 46.4% 59.1% Order book in TEUR 677,397 462,686 16
Outlook centrotherm photovoltaics expects an ongoing strong market development Ongoing increase of order book anticipated in 2008 Focus of investments in R&D, technology and capacity increase Foundation of further subsidiaries in Asia in order to establish local presence for our international customers 17
Guidance 2008 confirmed Sales 330-350 million euros EBIT 12.5% How to reach? Solar Cell Thin Film Solar Silicon Employees Forecast: Forecast: Forecast: Forecast: 12-14 Crystalline Solar Cell Turnkey Lines 1 Thin-film Turnkey Line 16 units (reactors and converters) Number of employees by the end of 2008 > 450 > 140 Single- Equipments 18
centrotherms expansion: New Headquarters New Production Building Administration Building II (further expansion) Administration Building I Area: approx. 80 hectare! 19
Performance of centrotherm photovoltaics share 80 70 60 50 40 30 20 10 0 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 CT PV DAX TecDAX GEX Prime IG Renewable Energy 20
Financial calendar and further IR dates Financial calendar 2008 Investor Relations Events Q2 2008 14 August 2008 Publishing of interim report as of 30 June 2008 12 November 2008 Publishing of interim report as of 30 September 2008 11 June 2008 First annual general meeting US and European Roadshows and Conferences 21
Thank you for your attention!