Record sales of CHF 1.32 billion and solid balance sheetEBITDA increased by 48% to CHF 278.4 millionGuidance on Sales and EBITDA reachedProfit for the year of CHF 35.8 million influenced by high amount of special items regarding Roth & RauChallenging market environment to continue in 2012, upturn in demand expected in 2013 Focussing our strengths and optimising synergies within the Group
Meyer Burger Group increased net sales by 59% to CHF 1,315.0 million in fiscal year 2011 (2010: CHF 826.0 million). Organic growth was 44%, whereas 15% of growth was based on the Roth & Rau acquisition. The Group posted an increase in EBITDA of 48% to CHF 278.4 million (2010: CHF 187.5 million). On the levels of EBIT and profit for the year, the results were negatively influenced by special items in conjunction with the acquisition of Roth & Rau. Meyer Burger achieved EBIT of CHF 116.7 million (2010: CHF 127.9 million) and profit for the year amounted to CHF 35.8 million (2010: CHF 97.9 million). The balance sheet structure remains very solid with net liquidity of CHF 250.3 million and an equity ratio of 55.4%.
In view of the continuing challenging market situation in photovoltaics and despite a good order backlog, Meyer Burger remains cautious regarding the outlook for 2012. At this point in time, there is little market visibility about the timing of new investment programmes by cell and module manufacturers. Meyer Burger Group will combine its resources and consolidate sales activities and subsidiaries in key markets worldwide during 2012. The Company will optimise synergies within the Group and strengthen efficiencies and sales activities along the value chain in photovoltaics.
Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) performed excellent again in 2011. The Group achieved strong organic growth and high incoming orders, despite the difficult market environment that solar cell and module manufacturers suffered from during the second half of 2011.
Record sales: guidance reached
2011 proved to be a difficult year for the solar industry. Solar cell and module manufacturers had increased production capacities for solar modules to approximately 50 GW over the past few years, which met newly installed PV capacity of approximately 27 GW in 2011. This mismatch between overcapacities and demand lead to a sharp drop in the price of solar cells and modules and to a painful consolidation phase throughout the entire solar industry particularly in the second half of 2011.
Meyer Burger Group recorded CHF 876.8 million of new orders in this environment (2010: CHF 1,329.8 million). The order backlog at the end of 2011 was CHF 909.9 million (2010: CHF 1,048.5 million).
With a high order backlog from the previous year and new orders in 2011, the company increased net sales by 59% to CHF 1,315.0 million (2010: CHF 826.0 million). The increase in net sales was based on 44% organic growth and CHF 125.9 million or 15% of growth resulting from the full consolidation of the Roth & Rau companies as of August 2011. Meyer Burger Group has reached its own targets for net sales with this high organic growth rate.
The highest growth was achieved in region Asia (change in net sales +68%), which continued to represent the most important customer region with 80% of net sales in 2011. Region Europe provided 17% of net sales (change in net sales +60%), while customers in the USA accounted for 3% of net sales (change in net sales -40%).
EBITDA CHF 278.4 million: guidance reached as well
Operating income after costs of products and services amounted to CHF 608.0 million (2010: CHF 408.8 million). This represents an increase of 49%. The margin declined by 3.3 percentage points to 46.2% (2010: 49.5%). The margin decline is mainly due to accruals on product commitments (CHF 58.5 million), depreciation and impairments of products (CHF 12.7 million) and a lower contribution to the margin by Roth & Rau companies.
Personnel expenses increased to CHF 194.7 million in 2011 (2010: CHF 133.9 million). The Group employed 2,791 people on a full-time basis as of 31 December 2011 (year-end 2010: 1,276 FTE). The increase in personnel includes 1,300 positions resulting from the takeover of Roth & Rau AG. The remaining 215 positions were newly created, mainly in research and development and in sales / service areas. Operating expenses rose to CHF 134.9 million (2010: CHF 87.4 million). The increase is mainly due to the expansion of the Group and is a result of the significantly increased business volume.
EBITDA amounted to CHF 278.4 million (2010: CHF 187.5 million), including about 1% of consolidation effects from Roth & Rau. Without the pro-rata results of Roth & Rau, Meyer Burger Group achieved an EBITDA margin of 23.5% and thus also reached its EBITDA margin guidance (margin in 2010 was 22.7%). The EBITDA margin declines slightly to 21.2% when pro-rata net sales and EBITDA results of Roth & Rau are taken into account.
EBIT and Profit for the year: influenced by special items in conjunction with the acquisition of Roth & Rau
Depreciation, amortisation and impairments during 2011 totalled CHF 161.7 million (2010: CHF 59.7 million). It includes CHF 41.7 million for scheduled amortisation of intangible assets, which are mainly related to acquisitions (Hennecke, AMB Automation, Diamond Wire) and the merger with 3S Industries Ltd (3S Modultec, 3S Photovoltaics, Somont and Pasan) from previous years. Amortisation and impairments for Roth & Rau were as follows: approximately CHF 19.4 million for scheduled amortisation of intangible assets, a non-recurring impairment on goodwill of Roth & Rau AG and OTB Solar B.V. in the amount of CHF 73.6 million and impairment on Roth & Rau CTF thin-film technology of CHF 7.0 million. The total consolidation effects of Roth & Rau amounted to approximately CHF -107 million on EBIT level.
Meyer Burger Group achieved an EBIT of CHF 116.7 million (2010: CHF 127.9 million). The EBIT margin was 8.9% (2010: 15.5%).
The financial result, net, amounted to CHF -21.4 million and includes foreign currency translation effects of approximately CHF -16.8 million, which resulted mainly from the valuation of intercompany loans to foreign subsidiaries that had been granted during the year in conjunction with the acquisition of Roth & Rau Group. Interest expenses in fiscal year 2011 were CHF 3.9 million (2010: CHF 3.5 million).
Prior to 9 August 2011 (which was the takeover date and starting date for the full consolidation of Roth & Rau AG), Meyer Burger Group already held a participation of 29.62% in Roth & Rau AG, which had been valued at market value in accordance with IFRS 3 as at 9 August 2011. A fair value adjustment in the amount of approximately CHF 25.4 million became necessary as a result of the market valuation (it is shown in the income statement as part of the loss from investments in associated companies).
Income tax expenses of CHF 34.2 million (2010: tax benefit of CHF 4.6 million), corresponding to a tax rate of 48.8%, were substantially above the expected tax rate of 22.5%. The deviation is mainly due to the following: The income statement contains expenses that are not tax-deductible (goodwill impairment Roth & Rau AG and OTB, fair value adjustment of investments in associated companies) and in addition there was an adjustment of capitalised tax loss carry-forwards of OTB Solar B.V. Against these non-recurring negative effects on taxes (in total approximately CHF 44.5 million), there were positive effects from tax reliefs granted to Swiss subsidiaries and tax losses at foreign subsidiaries with higher tax rates.
Profit for the year 2011 was CHF 35.8 million (2010: CHF 97.9 million). The profit attributable to equity holders of Meyer Burger Technology Ltd amounted to CHF 40.8 million (a loss of CHF 5.0 million is attributable to the non-controlling interests). Diluted earnings per share reached CHF 0.86 in 2011 (2010: CHF 2.18). As in previous years, the Board of Directors will propose to the Annual General Meeting on 26 April 2012 that retained earnings shall be carried forward. In addition, the Board of Directors will also propose to the AGM that the registered office of Meyer Burger Technology Ltd shall be changed from Baar to Gwatt (Thun).
Solid balance sheet structure: equity ratio of 55.4%
Total assets increased to CHF 1,377.4 million (31.12.2010: CHF 1,066.8 million) as a result of the takeover of Roth & Rau AG and the profit for the year. Cash and cash equivalents amounted to CHF 260.2 million. At year-end 2011, Meyer Burger had a net liquidity of CHF 250.3 million and additional credit lines in the amount of CHF 180 million and EUR 50 million, of which CHF 162.6 million and EUR 29 million are still available.
Equity amounted to CHF 762.5 million as of 31 December 2011 (31.12.2010: CHF 642.9 million), representing a solid equity ratio of 55.4% (31.12.2010: 60.3%).
Strong cash flow from operating activities
The Group generated cash flow from operating activities of CHF +218.8 million in 2011 (2010: CHF +347.5 million). The cash flow was mainly due to the positive business development and strong sales growth. Cash EPS amounted to CHF 4.62 (2010: CHF 7.72).
Cash flow from investing activities was CHF -320.1 million (2010: CHF +10.1 million). A total of CHF 261.3 million was invested until 9 August 2011 for the purchase of shares in Roth & Rau AG. Capital expenditure in property, plant and equipment, net, during 2011 was CHF 56.5 million. Cash flow from financing activities amounted to CHF -38.0 million (2010: CHF -53.6 million). An amount of CHF 26.7 million was invested for purchases of Roth & Rau shares after 9 August 2011.
Cautious outlook for 2012
2012 will be a very challenging year, taking into account the current overcapacities at cell and module manufacturers. It would be premature to make a clear estimate of when these overcapacities will be eliminated and positive signals in demand from end consumers will once again trigger new investment programmes by cell and module producers.
Giving guidance for 2012 is therefore extremely difficult: Meyer Burger Group targets net sales of between CHF 600-800 million and an EBITDA margin of between 4-8% for 2012. During this transitional year, the Group will observe strict cost control, manage its cash flows efficiently and use the time to push forward further technology developments and improvements. Meyer Burger expects demand for production equipment to increase again substantially from 2013 onwards.
Focussing our strengths: optimising synergies within the Group
In 2012 the Meyer Burger and the Roth & Rau Groups will increasingly optimise their synergies and the entire Meyer Burger Group will focus on the changing conditions in the photovoltaic market.
The central focus will be the Group’s unique, industry leading technology portfolio. Under the single, uniform Meyer Burger brand, the technology portfolio will be streamlined to focus on the Group’s core competency as a system supplier to the photovoltaic market. The Group’s integrated system offering will play an influential role in the consolidated PV market. The sales and service locations and various company locations in key markets will be consolidated and will operate under the single Meyer Burger brand name. The consolidation will reduce the number of sales and service locations and optimally align the Group to customer and market needs. As part of these measures, Meyer Burger is planning to reduce its overall global personnel by 15%. At this point in time it is not possible to break down the percentage of reduction in the individual Group companies or within the various countries.
MB Wafertec’s (Meyer Burger Ltd) move to its new production facilities and centre of competence will begin in May 2012 and it will consolidate the strengths and the know-how from 17 locations in and around Thun into one central facility. This will enable the existing organisational structure to work even more efficiently and the upcoming challenges in the market to be addressed more effectively and sustainably. It will also lead to significant cost savings in the operation and maintenance of infrastructure as well as reducing the cost of personnel.
The implementation of this consolidation and optimisation programme will result in non-recurring expenses and accruals in a CHF single-digit million amount which will be incurred in the 2012 Income Statement. Meyer Burger will achieve a sustainable reduction of approximately CHF 20-30 million in operating costs with this programme from 2013 onwards.
KEY FIGURES FISCAL YEAR 2011
Consolidated income statement
in TCHF
2011
2010
Net sales
1 315 039
826 005
Operating income after costs of products and services
608 026
408 752
in % of net sales
46.2%
49.5%
EBITDA
278 367
187 535
in % of net sales
21.2%
22.7%
EBITDA margin excluding pro-rata results of Roth & Rau AG
23.5%
22.7%
EBIT
116 686
127 851
in % of net sales
8.9%
15.5%
Profit for the year
35 825
97 949
Consolidated balance sheet
in TCHF
31.12.2011
31.12.2010
Total assets
1 377 352
1 066 799
Equity
762 534
642 927
Equity ratio
55.4%
60.3%
Consolidated cash flow statement
in TCHF
2011
2010
Cash flow from operating activities
218 758
347 520
Cash flow from investing activities
-320 096
10 147
Cash flow from financing activities
-38 020
-53 557
Change in cash and cash equivalents
-139 358
304 109
Currency translation differences on cash and cash equivalents
5 995
-7 177
Cash and cash equivalents at the end of the period
260 180
393 543
Number of employees (FTE) as of 31 December
2 791
1 276
The Annual Report 2011 is available for download on the Company website www.meyerburger.com under the link – Investor Relations – Financial Reports.
http://www.meyerburger.com/en/investor-relations/financial-reports/
For further information please contact:
Werner Buchholz
Head of Corporate Communications
Tel +41 (0) 33 439 05 06
werner.buchholz@meyerburger.com
Ingrid Carstensen
Corporate Communications
Tel +41 (0) 33 439 38 34
ingrid.carstensen@meyerburger.com
About Meyer Burger Technology Ltd
www.meyerburger.com
Meyer Burger Technology Ltd is a leading global technology group. With its innovative systems and production equipment, Meyer Burger creates sustainable added value for customers in photovoltaics (solar industry), in the semiconductor and optoelectronic industries as well as other selected industries which focus on semiconductor materials. The Group currently employs more than 2,500 people across three continents. In its core business – photovoltaics – customers rely on comprehensive solutions and complementary technologies along the entire value chain including the manufacturing processes for wafers, solar cells, solar modules and solar systems.
The Group’s core competences encompass a broad range of production processes, machines and systems that are used for the production of ultra-thin, high quality wafers, for the inspection and measurement of solar cells, for laminating, soldering and testing of solar modules and for building-integrated solar systems. With the acquisition of Roth & Rau AG, with its cutting-edge products and technologies for the next generation of crystalline silicon solar cells, Meyer Burger Group is further expanding its market leadership along the entire photovoltaic value chain.
Meyer Burger Group is a full line system provider who covers all of the most important technology elements along the photovoltaic value chain from crystalline silicon to complete solar systems. A worldwide service network including spare parts, consumables, re-grooving services, process know-how, customer support, after-sales services, training and other services completes the comprehensive product portfolio. Meyer Burger Group is represented in Europe, Asia and North America in the respective key markets and has subsidiaries and own service centres in China, Germany, India, Japan, Korea, the Netherlands, Norway, Switzerland, Singapore, Spain, Taiwan and the USA. The company relies on selected independent agents in other important markets. The registered shares of Meyer Burger Technology Ltd are listed on SIX Swiss Exchange (Ticker: MBTN).
THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO U.S. PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR, EXCHANGE OR PURCHASE ANY SECURITIES. IN ADDITION, THE SECURITIES OF MEYER BURGER TECHNOLOGY LTD HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS.
This press release may contain “forward-looking statements”, such as guidance, expectations, plans, intentions, or strategies regarding the future. These forward-looking statements are subject to risks and uncertainties. The reader is cautioned that actual future results may differ from those expressed in or implied by the statements, which constitute projections of possible developments. All forward-looking statements included in this press release are based on data available to Meyer Burger Technology Ltd as of the date that this press release is published. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
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