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Meyer Burger Technology Ltd reports fiscal year 2013 results and announces launch of share placement Overall difficult market environment; improving towards end of 2013Incoming orders of CHF 287.7 million; +29% compared to the previous yearOperating expenses reduced by over CHF 97 million year-on-yearNet sales 2013 of CHF 202.7 million; EBITDA of CHF -117.3 millionNet result of CHF -162.8 millionHigh equity ratio of 52.1%Share placement of 4.8 million registered shares out of the authorised capital
Meyer Burger Group was faced with a difficult market situation in the solar industry during most of fiscal year 2013. Towards the end of 2013, the Company successfully concluded several strategically important and in some cases long negotiated contracts for photovoltaic projects with existing and new customers as well as contracts for specialised technologies outside the PV industry. New orders amounted to CHF 287.7 million with over 70% generated during the second half of the year. This represents an increase in incoming orders by 29% year-on-year. Operating expenses were reduced by CHF 97.7 million compared to the previous year as a result of the cost reduction programmes that were completed during 2013. Meyer Burger reported net sales of CHF 202.7 million for fiscal year 2013 and despite this sustained cost reduction mentioned, posted an EBITDA of CHF -117.3 million and a net result of CHF -162.8 million.
Meyer Burger continues to have a solid balance sheet structure with an equity ratio of 52.1% as of 31 December 2013, even after the change of its financial reporting from IFRS to Swiss GAAP FER. The Company launches a share placement out of its existing authorised capital (up to 4.8 million registered shares) to further strengthen its balance sheet and liquidity.
Share placement out of authorised capital
Meyer Burger Technology Ltd has an authorised capital of up to 4,800,000 fully paid-in registered shares with a nominal value of CHF 0.05 each. The Company has mandated a banking syndicate consisting of Credit Suisse and UBS to place these 4,800,000 shares through an accelerated bookbuild procedure as a private placement in Switzerland and outside of Switzerland in accordance with applicable securities laws. The placement represents 5.7% of total shares issued. Subscription rights of shareholders will be excluded. The price of the new shares will be published after the close of the bookbuilding, which is currently expected to be on 20 March 2014. The net proceeds from the placement will be used to increase Meyer Burger’s financial flexibility and for general corporate purposes.
Application was made and granted for listing of and trading in the new shares to commence on 21 March 2014. The offered new shares will rank pari passu with the Company’s existing shares. Delivery against payment of the new shares is expected to be on 25 March 2014.
The Company has agreed to enter into a lock-up period of 180 days after this announcement and not to issue or sell any additional shares without the prior consent of Credit Suisse and UBS.
Comments to results fiscal year 2013
Meyer Burger changed its financial reporting from IFRS to Swiss GAAP FER in 2013. The change was effective retroactively from 1 January 2013 and the previous year’s consolidated financial statements have been restated accordingly.
Incoming orders and Order backlog
Meyer Burger recorded CHF 287.7 million in new orders in 2013, resulting in an increase of 29% compared to the previous year (previous year CHF 223.4 million). The dynamics in incoming orders increased during the second half of the year, with a total order income of CHF 205.2 million compared to CHF 82.5 million achieved in the first half. The orders included new equipment for capacity expansions and technology upgrades in existing PV markets, entire production lines for new PV markets and a variety of orders in specialised technologies.
The book-to-bill ratio amounted to over 1 for the first time since the beginning of the solar market crisis and reached 1.42 in fiscal year 2013 (previous year 0.35). The order backlog stood at CHF 399.6 million as of 31 December 2013 (previous year CHF 405.5 million). The order backlog includes orders for PV equipment dated from 2011 and earlier, for which deliveries have been postponed for an undefined period due to the solar crisis. From today’s point of view, the equipment from these orders will not be delivered in the once ordered form in the near future. Meyer Burger therefore decided to adjust the order backlog by these orders. The remaining net order backlog amounts to CHF 190.3 million (previous year CHF 111.9 million).
Net sales
Net sales amounted to CHF 202.7 million (previous year CHF 645.2 million). This amount was below Meyer Burger’s expectations at the beginning of the year, but this can be attributed mainly to the fact that demand for equipment increased later than expected and that the majority of the orders were received at the end of 2013. These orders were therefore not relevant in terms of sales in 2013. The revenue breakdown by region changed mainly due to the low level of sales and a different sales mix compared to the previous year. Net sales per region were as follows: Asia 45% (previous year 81%), Europe 40% (previous year 16%), USA 14% (previous year 3%) and other countries 1% (previous year 0).
Profitability
The optimisation and consolidation measures that had been initiated in 2012 were completed during fiscal year 2013. In total, operating expenses (personnel expenses, other operating expenses) were reduced by CHF 97.7 million compared to the previous year. These cost savings will have a sustainable positive effect on the cost structure and the cash flow.
Meyer Burger employed 1,781 people on a full-time basis as of 31 December 2013, which represented a decline of 18.5% compared to year-end 2012. In addition, the Group employed 194 temporary employees at the end of 2013 (79 at year-end 2012). The short-term increase in temporary employees became necessary due to the new orders received by year-end 2013. Personnel expenses declined by 22.5% to CHF 165.7 million (previous year CHF 213.7 million).
Other operating expenses fell by 47.8% to CHF 54.2 million (previous year CHF 103.8 million), mainly due to reduced rental charges, lower external R&D expenses, lower transport costs as a result of the smaller business volume and the positive effects of the cost reduction measures in conjunction with the optimisation programmes.
Due to the low volume of sales, EBITDA was negative as expected, even though operating expenses had been reduced substantially. EBITDA for 2013 amounted to CHF -117.3 million (previous year CHF -32.9 million). After depreciation and amortisation, EBIT was at CHF -196.8 million (previous year CHF -128.0 million). The net result for fiscal year 2013 came to CHF -162.8 million (previous year CHF -110.8 million), of which CHF -158.8 million is attributable to the shareholders of Meyer Burger Technology Ltd. The net result per share reflects a loss per share of CHF 2.26 (previous year loss per share of CHF 2.23).
Balance sheet
Total assets were CHF 784.0 million as of 31 December 2013 (31.12.2012 CHF 834.8 million). Current assets include cash and cash equivalents of CHF 173.2 million, inventories are CHF 147.9 million. Long-term assets mainly include property, plant and equipment of CHF 141.7 million, intangible assets of CHF 178.1 million and deferred tax assets of CHF 85.9 million.
Total liabilities amounted to CHF 375.4 million, of which trade payables were CHF 44.0 million, customer prepayments CHF 66.1 million, provisions CHF 50.0 million and financial liabilities CHF 163.5 million. The equity amounted to CHF 408.6 million as of 31 December 2013 and the equity ratio stood at a solid 52.1% as of year-end 2013.
Cash flow
Operating cash flow was CHF -130.4 million (previous year CHF -168.0 million). Despite the significantly reduced cost base, the operating cash flow remained negative during a long period in 2013 because of the situation in demand mentioned above. The cash burn improved substantially during the second half of 2013 (operating cash flow of CHF -48.1 million in the second half compared to CHF -82.3 million in the first half). This is mainly due to the optimisation programmes that ended as per June 2013, customer prepayments that had been received in conjunction with the new orders during the second half and to payments that usually occur during the first half (interest payments).
Cash flow from investing activities was CHF -7.5 million (previous year CHF -68.0 million). Net investments in property, plant and equipment amounted to CHF 6.8 million and represent normal investments in CAPEX. Cash flow from financing activities was CHF +176.1 million (previous year CHF +111.6 million). The capital increase resulted in an inflow of CHF 144.8 million in net proceeds and the loan secured by mortgage securities (on the building in Thun) increased the cash position by a further CHF 30.0 million.
Outlook
In 2013, around 37 GW of new photovoltaic capacity was installed at private and commercial end users worldwide, reflecting another high year-on-year growth rate of 37% (source: EPIA press release March 2014). Global installed capacity has therefore risen to approximately 137 GW. This growth trend is set to continue over the long-term. Leading industry organisations such as the International Energy Agency (IEA) or the European Photovoltaic Industry Association (EPIA) expect the global installed PV base to increase to 260 – 420 GW by 2017 (average growth rate of 17 – 33% p.a.).
The list of countries that added the most installed PV capacity in 2013 is headed by China (+11 GW), Japan (+6.9 GW) and the USA (+4.8 GW), making 2013 the first year in which the majority of new installed PV capacity globally (about 72%) was added outside Europe. The major economies in the world’s “sun belt” in particular will play a key role in future growth. Large projects are planned for the development of a local solar production along the North / South American axis, the Mediterranean, Northern Africa / Middle East, India, China and a number of countries in Southeast Asia.
Capacity utilisation at the large (tier 1) manufacturers improved again significantly during the course of 2013. The higher capacity utilisation, stabilising prices for cells and modules as well as a rising need for technology upgrades and capacity expansions are key indicators that the market for manufacturers of solar production equipment has bottomed out.
The incoming orders for the first two months in the current fiscal year 2014 amount to a total of CHF 42 million, which corresponds approximately to the average monthly run rate of incoming orders in 2013. Meyer Burger expects to sign additional contracts for production capacity expansions and for investments in technology upgrades during 2014. The Company also has a good pipeline of long-term large projects in new markets, some of which may come to fruition in the current year. Meyer Burger already invests in various countries and projects during the planning and preparation phase of such large projects, where for example highly efficient technologies such as heterojunction coating technology for cells or SmartWire connection technology for solar modules are used and being tested in local and geographical conditions.
In terms of sales and earnings, Meyer Burger expects a substantial improvement compared to 2013 particularly during the second half of the year. However, the Company is still forecasting a loss at EBITDA level for 2014. A return to profitability at EBITDA level is not anticipated before 2015 at the earliest.
Meyer Burger is well positioned with proven systems and new technologies such as diamond wire, heterojunction and SmartWire connection and commands the broadest and most advanced technology and product portfolio in the photovoltaic industry. With an equity ratio of 52.1% and cash and cash equivalents of CHF 173.2 million as of 31 December 2013, Meyer Burger has sufficient financial power to secure its technology leadership and to ensure further development of the various markets. The planned share placement out of authorised capital will further increase the financial flexibility of the Company.
For further information:
Werner Buchholz
Head of Corporate Communications
Phone +41 (0)33 221 25 06
werner.buchholz@meyerburger.com
Ingrid Carstensen
Corporate Communications
Phone +41 (0)33 221 28 34
ingrid.carstensen@meyerburger.com
Detailed report on the results of fiscal year 2013
As previously announced, Meyer Burger Technology Ltd will hold a press and analyst conference and presentation of its financial results for fiscal year 2013 on Monday, 24 March 2014. Further details to the results for 2013 will be presented at this event.
Location ConventionPoint, SIX Swiss Exchange, Selnaustrasse 30, 8021 Zurich
Start 09:15 a.m.
KEY FIGURES FISCAL 2013
Consolidated income statement
in TCHF
2013
2012
Net sales
202 655
645 242
Operating income after costs of products and services
102 544
284 654
in % of net sales
50.6%
44.1%
EBITDA
-117 294
-32 917
in % of net sales
-57.9%
-5.1%
EBIT
-196 848
-128 007
in % of net sales
-97.1%
-19.8%
Net result
-162 817
-110 773
Consolidated balance sheet
in TCHF
31.12.2013
31.12.2012
Total assets
784 017
834 769
Equity
408 621
416 144
Equity ratio
52.1%
49.9%
Consolidated cash flow statement
in TCHF
2013
2012
Cash flow from operating activities
-130 419
-168 014
Cash flow from investing activities
-7 467
-67 997
Cash flow from financing activities
176 050
111 583
Change in cash and cash equivalents
38 165
-124 428
Currency translation effects on cash and cash equivalents
511
-1 248
Cash and cash equivalents at the end of the period
173 179
134 504
Number of employees (FTE) as of 31 December
1 781
2 186
Meyer Burger Technology Ltd changed its financial reporting from IFRS to Swiss GAAP FER in fiscal year 2013. The previous year results have been restated accordingly.
The Half-Year 2013 report is available for download on the company website www.meyerburger.com under the link – Investor Relations – Financial Reports & Publications.
http://www.meyerburger.com/en/investor-relations/financial-reports-publications/
About Meyer Burger Technology Ltd
www.meyerburger.com
Meyer Burger is a leading global technology Group specialising on innovative systems and processes based on semiconductor technologies. The Group’s focus is on photovoltaics (solar industry) while its competencies and technologies also cover important areas of the semiconductor and the optoelectronic industries as well as other selected high-end markets based on semiconductor materials. The Group currently employs more than 1,700 people across three continents. Over the past ten years, Meyer Burger has risen to the forefront of the photovoltaic market and established itself as an international premium brand by offering superior precision products and innovative technologies.
The Group’s offering in systems, production equipment and services along the photovoltaic value chain includes the manufacturing processes for wafers, solar cells, solar modules and solar systems. Meyer Burger provides substantial added value to its customers and clearly differentiates itself from its competitors by focusing on the entire value chain.
The Group’s comprehensive product portfolio is complemented by a worldwide service network with spare parts, consumables, process know-how, customer support, after-sales services, training and other services. 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, Switzerland, Singapore, Taiwan and the USA. The Group is also working intensively to develop new markets such as South America, Africa and the Arab region. The registered shares of Meyer Burger Technology Ltd are listed on the SIX Swiss Exchange (Ticker: MBTN).
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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.
Important Note
This press release has been prepared solely for purposes of complying with the ad-hoc disclosure rules of SIX Swiss Exchange and is for information only. It does not constitute an offer or invitation to sell, or a solicitation of an offer to buy shares in Meyer Burger Technology Ltd (the “Shares”) in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefore. The Shares will solely be sold by way of a private placement to selected qualified investors who do not purchase the Shares with the intention to distribute them to the public and without any public advertisement.
This press release does not constitute (i) an offering prospectus, and no securities will be offered directly or indirectly to the public, within the meaning of Art. 652a of the Swiss Code of Obligations, (ii) a listing prospectus within the meaning of the SIX Swiss Exchange Listing Rules, nor (iii) a prospectus within the meaning of the EC Directive 2003/71/EC of the European Parliament and of the Council dated November 4, 2003 (the "Prospectus Directive").
This press release is only addressed to, and is only directed at, qualified investors in any member state of the European Economic Area within the meaning of the Prospectus Directive ("Qualified Investors").
The Shares that are the subject of the placement are not being offered or sold to any person in the United Kingdom, other than to qualified investors as defined in Section 86(7) of the Financial Services and Markets Act 2000, being persons falling within Article 2.1(E)(i), (ii) or (iii) of Directive 2003/715/EC of the European Parliament and of the Council dated 4 November 2003 (Prospectus Directive), which includes legal entities which are regulated by the Financial Services Authority and entities which are not so regulated whose corporate purpose is solely to invest in securities and who also fall within the definition of "Investment Professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (the "FPO") and high net worth entities falling within Article 49(2)(a) to (d) of the FPO.
IN ADDITION, THE SECURITIES REFERENCED HEREIN HAVE NOT BEEN AND ARE NOT INTENDED TO BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER THAT ACT OR AN AVAILABLE EXEMPTION FROM REGISTRATION REQUIREMENTS UNDER THAT ACT.
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