DGAP-News: 3W Power Holdings S.A. / AEG Power Solutions / Key word(s): Quarter Results/Quarter Results 3W Power Holdings S.A. / AEG Power Solutions : 3W Power/AEG Power Solutions Reports Strong Q1 2011 Revenue Growth in Line With Agenda 2012 18.05.2011 / 08:30 =-------------------------------------------------------------------- 3W Power/AEG Power Solutions Reports Strong Q1 2011 Revenue Growth in Line With Agenda 2012 (in EUR millions) Q1 2011 Q1 2010 Change% Order intake 94.0 69.0 +36% Revenue 86.4 64.7 +34% Normalized EBITDA2 2.3 -1.6 - Continuous order growth: Order intake up 36% y-o-y to EUR94.0 million - Revenue increased 34% y-o-y to EUR86.4 million (EUR64.7 million) despite typically weaker Q1 seasonality - Strength in global solar markets: RES orders up 87% y-o-y, revenues up 74% y-o-y - Growth in industrial markets: EES revenues up 13% y-o-y, book to bill 1.13 - Normalized EBITDA of EUR2.3 million for the Group - Target revenues of above EUR400 million in 2011 reaffirmed - EBITDA margin forecast to approach double digits by year end: Profitability driven by revenue growth and realization of Agenda 2012 Luxembourg / Zwanenburg, The Netherlands - May 18, 2011 - 3W Power Holdings S.A. (WKN A0Q5SX / ISIN GG00B39QCR01 / Ticker Euronext: 3WP, Ticker Deutsche Börse Frankfurt: 3W9), the holding company of AEG Power Solutions (AEG PS), a global player in premium power electronics, today announced its quarterly management report for the quarter ending March 31, 2011. Financial Report on Q1 2011 The Q1 2011 financial results are a continuation of the strong results reported in Q4 2010. Orders increased by 36% to EUR94.0 million in the quarter (2010: EUR69.0 million). Seasonally typically the weakest quarter of the year, revenues were up 34% to EUR86.4 million (2010: EUR64.7 million). Normalized EBITDA was EUR2.3 million (2010: -EUR1.6 million). Adjusted EBIT was EUR0.5 million (2010: -EUR3.1 million) and adjusted Net Income was -EUR4.6 million (2010: -EUR4.5 million). The cash position of the Company stood at EUR120.4 million (2010: EUR42.2 million). The Group Renewable Energy segment (RES) combines the Power Controllers business as well as solutions for the solar industry. Orders rose 87% y-o-y in RES. Revenues were up 74% y-o-y to EUR38.2 million (2010: EUR22.0 million) with skytron contributing EUR2.3 million (2010: EUR0.3 million). Adjusting for one-time income of EUR5.6 million in Q1 2010, RES y-o-y growth was 133%. Power Controllers benefited from renewed investment in polysilicon manufacturing and modules and systems for non-polysilicon applications. In Solar, the Company strengthened its high power central inverter portfolio with the launch of the Protect PV 500 central inverter. AEG Power Solutions global footprint allows the company to meet shifts in demand for solar installations across countries and regions. A new facility in India will position the Group well to serve emerging markets in India and Asia. The first significant orders have already been booked in India. skytron continues to perform well and contributed EUR1.9 million in orders in Q1 (2010: EUR1.6 million). The Energy Efficiency Solutions segment (EES) includes the production of highly reliable electricity supply systems for the oil & gas, transportation, energy generation, electricity transmission and distribution, data and information technology industries and other industries as well as telecommunications solutions. EES recorded a 14% y-o-y increase in orders to EUR54.4 million (2010: EUR47.8 million) with all product lines reporting increases. Revenues were up 13% to EUR48.2 million (2010: EUR42.7 million). Targeted industrial market segments show continuous growth of project activities with notable orders in the nuclear business. In the telecoms business, the first hybrid power supply installation branded 'Ecopx(R)' was commissioned, a major step as this hybrid market shows important growth potential. For the converter business orders were in line with expectations. RES and EES have different profitability profiles. RES normalized EBITDA was EUR7.1 million or 19% of revenue (2010: EUR2.5 million, 11% of revenue) and Adjusted EBIT was EUR6.4 million or 17% of revenue (2010: EUR2.2 million, 10% of revenue). EES normalized EBITDA was -EUR1.1 million or -2% of revenue (2010: -EUR1.3 million, -3% of revenue) and Adjusted EBIT was -EUR2.2 or -0.4% (2010: -EUR2.3 million, -0.5% of revenue). The structural lack of profitability in EES is being addressed through the active restructuring program initiated in 2010 as part of Agenda 2012. Market Conditions Buoyancy persists across all areas of AEG Power Solutions Group. In the RES segment, growth in solar markets beyond Western Europe is largely compensating for softening market conditions in Germany and Italy. Markets such as India are emerging as meaningful participants. With the solar market more than doubling to 17.5 GW of installed capacity in 2010, predictions of a long term supply surplus for polysilicon manufacturers failed to materialize with many report being sold out through 2014. Polysilicon manufacturing capacity expansion or step change in efficiency leading to increased throughput is required to meet any sustained annual solar demand above 17 GW per annum. The EES segment is benefiting from the strength of the current industrial cycle. Of particular note is Nuclear Power Generation programs that are under review in many countries. This could have a positive impact on EES where upgrades on safety and additional investment in back up power (UPS) for nuclear plants is a key market for EES. With AEG PS' traditionally strong position in countries such as Egypt and Tunisia, recent events in the North Africa region have delayed the implementation of some telecom-related business. Events in Japan have no direct impact on AEG PS. Outlook The second quarter is expected to follow the trend already seen in Q1 of recording y-o-y growth. For Q2, revenues are estimated to be about 50% higher and normalized EBITDA is expected to improve significantly compared to the same quarter in the prior year. The key contributor to the growth in revenues and profitability will be the RES segment in which revenue growth is forecast to be double Q2 2010. The Group also expects Q2 2011 revenues and profitability to be substantially higher compared to Q1 2011. The Group maintains its full year guidance of above EUR400m in revenue for 2011. RES revenues will contribute more than half this amount with EES forecast to grow approximately 10% y-o-y. The Group expects significant improvement in normalized EBITDA compared to 2010. Both operating segments expect to be profitable but RES will clearly be the main contributor. The Group maintains its ambitious target of achieving 13-15% normalized EBITDA margins for 2012. For more detailed information please visit: www.aegps.com/en/investor/investor_news/2011/05_Q12011_earnings.html 3W Power Holdings S.A. =- End of Announcement-- About 3W Power/AEG Power Solutions 3W Power Holdings S.A. is the holding company of AEG Power Solutions Group. Shares and Warrants in the company are admitted to trading on NYSE Euronext, Amsterdam (ticker symbol: 3WP and 3WPW, respectively). Additionally, the shares are traded on the Frankfurt Stock Exchange (ticker symbol: 3W9) AEG Power Solutions is a world provider of innovative premium power solutions. Backed by more than a century of innovation and customer service, AEG Power Solutions offers a full-range of highly reliable, cost effective solutions, from power conversion modules, solar inverters and solutions to high reliability UPS systems, industrial chargers and DC systems. System solutions from AEG PS are designed to interface with the electrical power grid and to offer power solutions for mission-critical applications in harsh environments, such as utility-scale renewable energy plants, polysilicon manufacturing process, power plants, offshore oil rigs or chemical refineries. AEG Power Solutions activities consist of two complementary operating segments: Renewable Energy Solutions, gathering power controller systems and solar solutions and Energy Efficiency Solutions, dedicated to all infrastructure applications. Thanks to its distinctive expertise, bridging both AC and DC power technologies and spanning the worlds of both conventional and renewable energy, the company is uniquely positioned to benefit long-term from emerging demand for intelligent micro-energy grids. This communication does not constitute an offer or the solicitation of an offer to buy, sell or exchange any securities of 3W Power. This communication contains forward-looking statements which include, inter alia, statements expressing our expectations, intentions, projections, estimates, and assumptions. These forward-looking statements are based on the reasonable evaluation and opinion of the management but are subject to risks and uncertainties which are beyond the control of 3W Power and, as a general rule, difficult to predict. The management and the company cannot and do not, under any circumstances, guarantee future results or performance of 3W Power and the actual results of 3W Power may materially differ from the information expressed or implied in the forward-looking statements. As a result, investors are cautioned against relying on the forward-looking statements contained herein as a basis for their investment decisions regarding 3W Power. 3W Power undertakes no obligation to update or revise any forward-looking statement contained herein. Financial calendar 19 May 2011 Annual General Meeting, Luxembourg 20 May 2011 German & Austrian Corporate Conference, Deutsche Bank, Frankfurt am Main (Germany) 27 - 28 June 2011 Small & Mid Cap Conference, Close Brothers Seydler Bank,
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