Meyer Burger – Strong results in the first half of 2010

Meyer Burger increased its net sales by 67% to CHF 356.9 million in the first half-year of 2010 (H1 2009: CHF 213.4 million). Organic growth was 36% whereas 31% of growth was due to M&A activities. EBITDA reached CHF 64.6 million corresponding to a margin of 18.1% and EBIT rose by 161% to CHF 34.4 million at a margin of 9.6%. Meyer Burger closes the first half-year of 2010 with group earnings of CHF 23.6 million, representing an increase of 95% compared with the previous year period. The company has a very solid financing situation: As of 30 June 2010, Meyer Burger has total assets amounting to CHF 916.3 million and cash and cash equivalents of CHF 164.8 million. Equity was CHF 574.5 million, corresponding to an equity ratio of 62.7%. Meyer Burger Group is well positioned with its products and technologies, and expects ongoing strong and sustainable growth in the years to come. For the entire fiscal year 2010, Meyer Burger expects net sales of approx. CHF 730 million and an EBITDA margin of 15-17%.

Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) achieved strong results in the first half of 2010 and has further expanded its prominent market position in the photovoltaics industry. An increase of 67% in net sales, higher profit margins, sound cash flows and a solid balance sheet structure demonstrate the healthy condition of Meyer Burger Group.

Strong growth in incoming orders and sales

In the first half of 2010, the solar industry experienced a return to normal concerning the financing situation for several large projects, which will substantially increase manufacturing capacities at solar cell producers in the years 2011-2013. Meyer Burger succeeded in concluding a number of large contracts in this environment. In total, the Group posted a volume of CHF 590.1 million in new orders during the first six months of the year. As of 30 June 2010, the order backlog amounted to CHF 770.0 million, which once more provides an excellent basis for the overall performance in fiscal years 2010/2011.

Net sales grew by 67% to CHF 356.9 million during the first half of 2010, compared with CHF 213.4 million during the first six months of the previous year. The increase was based on 36% organic growth and 31% growth as a result of M&A activities. Customers in Asia accounted for 71% of net sales in the first half of 2010, whereas 22% were generated with European and 7% with US customers.

Increased profitability

Gross profit more than doubled in the first half of 2010 to CHF 164.9 million, compared with CHF 76.4 million in the same period last year. Gross margin rose to 46.2% versus an exceptionally low 35.8% in the first half and 40.4% for the full year of 2009. The increase in gross margin was mainly due to high manufacturing volumes at the facility in Thun, leverage on fixed production costs and a slightly changed product mix.

Personnel expenses increased to CHF 62.4 million in the first half of 2010, compared with CHF 31.3 million in the previous year. As of 30 June 2010, the number of employees came to 1,125 FTE, including 300 jobs arising from the merger with 3S Industries. Operating expenses rose to CHF 37.9 million, compared with CHF 20.9 million in the previous year. The increase was primarily due to volume-related higher transportation costs, additional costs arising from the expansion of the Group and M&A expenses in conjunction with the merger with 3S Industries Ltd.

EBITDA reached CHF 64.6 million in the first half of the year, corresponding to an above-average margin of 18.1%, compared with an EBITDA of CHF 24.2 million and a margin of 11.4% in the first half of 2009. At EBIT level, Meyer Burger recorded an increase of 161% to CHF 34.4 million, compared with CHF 13.2 million in the first half of 2009. The EBIT margin increased by 3.4 percentage points to 9.6%.

The sharp decline of the Euro against the Swiss Franc led to a substantially lower valuation of intercompany loans by Meyer Burger Technology Ltd to foreign subsidiaries as of balance sheet date 30 June 2010. The financial expenses of CHF 16.6 million include unrealised foreign exchange rate losses of CHF 14.3 million net, which are mainly due to these intercompany loans. A retroactive tax relief granted by the federal and cantonal tax authorities to subsidiary Meyer Burger Ltd generated a non-recurring positive effect on income taxes of around CHF 10.4 million, and a reduction in tax expenses for the reporting period of around CHF 7.5 million. The income statement for the first half of 2010 therefore shows tax income of CHF 5.6 million compared with a tax expense of 4.7 million for the same period in 2009.

Group earnings in the first half of 2010 rose by 95% to CHF 23.6 million, compared with CHF 12.1 million for the first half of 2009.

Very solid balance sheet

As of 30 June 2010, Meyer Burger Group had total assets of CHF 916.3 million. The high level of cash and cash equivalents and the company’s sound cash flows enabled Meyer Burger to make an early partial repayment of CHF 29.2 million on its syndicated credit that it had arranged in September 2009, and to repay a further CHF 6.9 million of bank liabilities. Following these repayments, cash and cash equivalents amounted to CHF 164.8 million as of 30 June 2010. Equity increased to CHF 574.5 million, corresponding to an equity ratio of 62.7%.

Integration of 3S companies runs according to plan

Integration of the business activities of 3S Group companies is on track and will be largely completed by the end of 2010. During the first half-year, priorities were set on amalgamating the service and sales network, and on creating a uniform brand identity for the various technologies in the Group. Additional success was achieved in China, where 3S products and solutions are now being offered to customers through the existing organisation.

As a global technology group covering the most important technology elements in the photovoltaic value chain from solar silicon to entire solar systems, Meyer Burger attaches the highest importance to connecting and integrating the different technologies along the solar industry’s value chain. A variety of cross-selling activities within the Group have led to joint customer contracts in the first half of 2010. Diamond wire technology is being further developed and various tests are now running on customer installations, mainly in Europe and the USA. Meyer Burger Group is convinced that with the use of diamond wire in band and wire saws, the solar cell manufacturers are able to achieve a further significant reduction in their production costs. Accordingly, the development and launch activities in this area are being driven forward intensively.

Outlook

In general, it remains difficult to make a judgement on how the high government deficits, turbulent foreign exchange rate developments and the price increases of various raw materials will affect the economy in the mid-term. From today’s point of view, it seems that the difficult financing situation, which solar cell manufacturers were faced with, has been overcome and various customers are planning further growth steps. Meyer Burger Group, with its products and technologies, is well positioned to profit sustainably from this growth.

With revenues from a number of large projects, Meyer Burger expects net sales for the entire fiscal year 2010 to be in the order of approx. CHF 730 million and an EBITDA margin of between 15%-17%. For the long-term, the company has great confidence in both, the solar industry and Meyer Burger Group, and believes in continuously strong and sustainable growth in the years to come.

KEY FIGURES 1st HALF-YEAR 2010

Consolidated income statement

in TCHF

1.1.-30.6.2010

1.1.-30.6.2009

Net sales

356,920

213,427

Gross profit

164,872

76,383

in % of net sales

46.2%

35.8%

EBITDA

64,575

24,233

in % of net sales

18.1%

11.4%

EBIT

34,368

13,188

in % of net sales

9.6%

6.2%

Group earnings

23,581

12,123

Consolidated balance sheet

in TCHF

30.6.2010

31.12.2009

Total assets

916,302

460,195

Equity

574,459

196,287

Equity ratio

62.7%

42.7%

Consolidated cash flow statement

in TCHF

1.1.-30.6.2010

1.1.-30.6.2009

Cash flow from operating activities

84,126

37,433

Cash flow from investing activities

20,937

(1,982)

Cash flow from financing activities

(34,980)

(3,841)

Change in cash and cash equivalents

70,083

31,610

Cash and cash equivalents at end of period

164,815

75,586

No. of employees (FTE) as of 30 June / 31 December

1,125

738

The entire Half-Year Report 2010 is available on Meyer Burger’s website www.meyerburger.com  under – Investor Relations – Financial Reports.

http://www.meyerburger.com/en/investor-relations/financial-reports/

Further information:

Werner Buchholz

Head of Corporate Communications

Tel +41 (0) 33 439 05 06

w.buchholz@meyerburger.ch

About Meyer Burger Technology Ltd

www.meyerburger.com

Meyer Burger is a leading and globally active technology group for innovative systems and processes for cutting and handling crystalline and other high-grade materials.

The machines, competences and technologies of the different companies within the group are used in the solar industry (photovoltaics), semiconductor and optical industry. The thinnest wafers made from silicon, sapphire or other crystals are required in these three markets to manufacture solar modules, switching circuits or high-performance LEDs. The group’s core competences are made up of a whole range of production processes, machines and systems that are used within the value chain in the manufacture of high quality wafers. Since the merger in January 2010 with 3S Industries Ltd, the worldwide leader in turnkey production lines and single equipment for the manufacturing of solar modules, the group also covers the entire value chain for solar module production and combines the key technologies of soldering, laminating and testing under one roof. Solar module manufacturers worldwide use the string soldering machines of Somont, the laminating lines of 3S and the testing technologies of Pasan, to produce solar modules whose performance, operating life and quality meet the highest demands. The group’s comprehensive range of products includes a worldwide service network with wear and tear parts, consumables, re-grooving services, process know-how, servicing, after-sales service, training and other services. As a globally active company, the group is represented in Europe, Asia and North America in the respective key markets.

Meyer Burger has its headquarters and the production facility of Meyer Burger Ltd in Switzerland, while the group companies, Meyer Burger Automation GmbH, Hennecke Systems GmbH and AMB Apparate + Maschinenbau GmbH have their headquarters and production facilities in Germany. Diamond Materials Tech, Inc. has its headquarters in Colorado Springs, CO, USA. The production facilities of 3S and Pasan are also located in Switzerland, while Somont is located in Germany. Meyer Burger Group has also subsidiaries and own service centres in Germany, Norway, Spain, USA, China, India, Japan, Singapore and Taiwan. In other important markets, the company relies on selected independent agents. The registered shares of Meyer Burger Technology Ltd are listed on SIX Swiss Exchange (Ticker: MBTN).

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