DGAP-News: 3W Power S.A. / AEG Power Solutions / Key word(s): Half Year Results 3W Power S.A. / AEG Power Solutions : 3W Power reports strongest performance in two years for Q2: delivering on Agenda 2012 11.08.2011 / 08:30 =-------------------------------------------------------------------- August 11, 2011 3W Power reports strongest performance in two years for Q2: delivering on Agenda 2012 (in EUR million) Q2 Q2 Change H1 H1 Change 2011 2010 in % 2011 2010 in % Order intake 127.3 84.7 +50% 221.3 153.7 +44% Revenue 106.7 76.4 +40% 193.1 141.1 +37% EBITDA 21.3 (4.3) 23.6 (0.3) EBIT (adjusted) 18.0 1.2 18.5 3.7 Net income 9.4 0.6 4.8 0.0 (adjusted) - Strong order intake and high revenue growth are driving profitability of 3W Power - The RES business segment shows 137% revenue growth y-o-y with exceptional profitability driven by power controllers and solar solutions - The EES business segment shows solid order growth of 11% y-o-y and book-to-bill of 1.2 achieving positive EBITDA on implementation of operational improvement program - Revenue and EBITDA targets for 2011 reaffirmed; Agenda 2012 on track Luxembourg/Zwanenburg, The Netherlands - August 11, 2011 - 3W Power S.A., the holding company of AEG Power Solutions (AEG PS), today announced its financial results for the half-year ended June 30, 2011. The group revenue was 37% higher than in the same period in 2010, reaching EUR193.1 million (2010: EUR141.1 million). This is the combined revenue of the two company business segments Renewable Energy Solutions (RES) with EUR95.6 million (2010: EUR46.2 million, +107%) and Energy Efficiency Solutions (EES) with EUR97.5 million (2010: 94.9 million, +3%). 'This high revenue growth combined with a strong gain in order intake highlights the underlying strength in our technologies and products, the successful execution of our Agenda 2012 and the healthy growth in the renewable energy market. These factors are key drivers of our growing profitability', comments Horst Kayser, CEO of AEG Power Solutions. In the half year to June 2011, the group enjoyed strong growth in orders compared to 2010 as order intake reached EUR221.3 million (2010:EUR153.7 million), up 44% on the prior year. Orders in the second quarter of 2011 were EUR127.3 million, 35% higher on the first quarter and up 50% on the second quarter of 2010. In the six months to June 2011, the group reported adjusted EBIT (which means EBIT adjusted for the effect of one-time items and for the amortization of intangibles on acquisition) of EUR18.5 million (9.6% of revenue) compared to EUR3.7 million (2.6% of revenue) in the same period of 2010. This turnaround is largely the result of much improved trading, with the group capitalizing on its leading position within the growing renewable space. The group's preferred measure of EBITDA (which excludes all depreciation and amortization charges) was EUR23.6 million/12.2% of revenue (2010: loss of EUR0.3 million/0.2%). RES business segment As predicted, growth was particularly impressive in the RES business segment. In the second quarter RES revenue was EUR57.4 million, 50% higher than the first quarter of 2011 and 137% up on the second quarter of 2010. In the first half, orders amounted to EUR108.1 million (2010: EUR52.7 million). EBITDA was EUR23.8 million in the second quarter 2011, significantly higher than in the same period last year (Q2 2010/EUR1.0 million). EBITDA of the RES segment for the first half year includes EUR6.5 million received following the successful settlement of litigation against a customer. RES growth is driven by continuing demand within the solar value chain, from the upstream manufacturing of polysilicon (power controllers) to the installation of solar power generation plants (solar inverter solutions). As a result, both the power controller and solar business lines of RES performed well. The power controller activity also continues to increase its business outside the polysilicon industry value chain. The power controller modules business increased by 85% in the six months to June 2011 compared to the same period in 2010. In Q2 2011, strategically important contracts were awarded for our high-end power supply solutions for LED sapphire crystallization growing equipment as well as for hydrogen electrolysis applications. Some softening in Western European solar orders (primarily Germany and Italy) was compensated by gains in growing territories. In Eastern Europe, AEG PS has continued to book major projects both in solar inverters and in monitoring systems. The newly introduced solar inverter 'Protect PV500' has proven to be a commercial success and has definitely contributed to winning significant projects, especially in India, where the company has booked orders for more than 25MW in the first half of the year. EES business segment In the EES business segment, orders in the half year to June 2011 were up 12% to EUR113.2 million (2010: EUR101.0 million). In the second quarter EES revenue was EUR49.3 million, 2% higher than in the first quarter. The book-to-bill ratio in this quarter was 1.2, which indicates strong growth momentum. EES achieved positive EBITDA in Q2 of EUR2.5 million (2010: EUR0.6 million) aided by the implementation of Agenda 2012 operational improvements. For Q2 2011, all EES business lines reported improved EBITDA. In the industrial segment, the most active market was Oil & Gas where major contracts were awarded in Europe and in the Middle East. In the Telecom 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 LED business, intensive work with the R&D lab of Schreder, the Belgian lighting group, has paid off: a first design has been won with their South African subsidiary, Beka, for street lighting equipment. Market environment and outlook - The overall group revenue growth for Q2 was impressive at 40% y-o-y, although slightly behind predictions made in the first quarter due to the solar regulatory developments in certain countries and the timing of certain projects. - The company predicts further RES growth coming from new emerging markets, innovative product developments and through focusing on utility scale and large commercial segments. Despite volatility in the photovoltaic industry, RES could also gain market share and strengthen its product portfolio with new inverters covering the power range between 10 kVA to 15 kVA and 500 kVA. - The EES segment is benefiting from the strength of the industrial cycle. - Agenda 2012, which sets operating and financial objectives for RES and EES, is on course to reach the annual revenue target of above EUR400 million in 2011 and above EUR500 million in 2012. With the growth in revenue and the effects of Agenda 2012, the group continues to expect significantly improved profitability over 2010 and reaffirms that the group EBITDA margin for this year will approach double digits. The group also remains on track to achieve EBITDA margin of 13%-15% by 2012. =- End of Announcement-- Characters: c. 6,700 About 3W Power/AEG Power Solutions: 3W Power S.A. (WKN A0Q5SX / ISIN GG00B39QCR01), based in Luxembourg, is the holding company of AEG Power Solutions Group. The Group is headquartered in Zwanenburg in the Netherlands. Shares and warrants of 3W Power 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 business 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 in the long term from emerging demand for intelligent micro-energy grids. For more information go to: www.aegps.com For the interim report go to: www.aegps.com/en/investor/reports/index.html 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
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