Meyer Burger Technology Ltd – Substantial improvement in financial results during the first half of 2016

 

 

Meyer Burger Technology Ltd – Substantial improvement in financial results during the first half of 2016

 Incoming orders +20.4% to CHF 267.8 million

Net sales +75.0% to CHF 217.8 million

Turnaround with positive EBITDA of CHF 6.2 millionCash flow from operating activities of CHF 15.4 millionLong-term growth opportunities remain positive

 

Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) achieved substantial improvements in its financial results during the first half of 2016. Incoming orders increased by 20.4% to CHF 267.8 million (H1 2015 CHF 222.6 million). Net sales rose by 75.0% to CHF 217.8 million (H1 2015 CHF 124.4 million). As a result of the higher net sales and lower operating expenses, the company achieved a turnaround at the EBITDA level with a profit of CHF 6.2 million (H1 2015 CHF -32.7 million). Cash flow from operating activities also improved substantially and amounted to a positive cash flow of CHF 15.4 million (H1 2015 CHF -28.0 million). 

 

With the strong incoming orders, an order backlog of CHF 307.4 million and the improvements in the results for the first half of 2016, Meyer Burger is on track, to reach and actually exceed its targets of solid growth in net sales and to achieve break-even at the EBITDA level for fiscal year 2016.

 

Details on the half-year results 2016

 

Incoming orders, Order backlog

The volume in new orders rose compared to the previous year period by 20% to CHF 267.8 million (H1 2015 CHF 222.6 million). This substantial increase in incoming orders is a continuation of the trend that has already become apparent during fiscal year 2015 and reflects the high demand of wafer and solar cell manufacturers and their need to either renew existing production lines through upgrades or to assemble entirely new production capacities.

 

Overall, the monthly average run-rate of the “normal business” (without larger orders) amounted to CHF 29 million, representing an increase of 23% compared to the first half of 2015 (H1 2015 CHF 23.5 million). In addition, in the Photovoltaic segment, various larger orders were received for diamond wire saws, Heterojunction technology, SmartWire Connection and MB PERC / MAiA technologies for a total amount of about CHF 93 million (H1 2015 CHF 82 million). It is particularly pleasing that on both on the manufacturers’ as well as on the end-customers’ sides and following Meyer Burger’s success with Ecosolifer, CSEM and Genossenschaft Migros Aare in 2015, a further customer, Hevel LLC, has chosen Heterojunction technology and SmartWire cell connection technology for the production of high-performance solar modules. The Specialised Technologies segment also achieved important orders in different special markets addressed by this business segment.

 

The order backlog increased to CHF 307.4 million as at 30 June 2016 (31.12.2015 CHF 257.5 million), which provides a solid base for net sales in the second half of 2016. The book-to-bill ratio (incoming orders to net sales) was 1.23 for the first half of 2016 (H1 2015: 1.79). 

 

Net sales

Net sales increased by 75% to CHF 217.8 million for the first half of 2016 (H1 2015 CHF 124.4 million). Adjusted for some slightly positive currency translation effects and the divestment of the Roth & Rau Ortner companies in August 2015, the organic sales growth on a like-for-like basis was 84%.

 

Asia remained the most important market with 70% of net sales in the first half of 2016 (H1 2015 49%), whereas Europe accounted for 23% (H1 2015 27%) and America for 7% (H1 2015 24%) of net sales.

 

Operating income after costs of products and services

Operating income after costs of products and services increased by 51% to CHF 107.2 million (H1 2015 CHF 70.9 million). The margin for the first half of 2016 was 49.2% (H1 2015 57.0%). The exceptionally high margin in the previous year period was mainly due to positive one-time effects (net sales recorded in conjunction with GTAT and positive cost effects on materials). The normalised margin for both reporting periods stood at about 48%. 

 

Operating expenses

The various measures executed during the previous years to reduce the operating costs have shown their full effects as expected during the first half of 2016. Personnel expenses amounted to CHF 74.9 million, a decline of CHF 5.7 million compared to the first half of 2015 (H1 2015 CHF 80.6 million). With 1,547 people employed on a full-time basis, the staff level remained almost unchanged compared to year-end 2015, but was 98 FTEs below the comparable level at 30 June 2015 (31.12.2015 1,525 FTE; 30.06.2015 1,645 FTE).

 

Other operating expenses were CHF 26.1 million (H1 2015 CHF 23.1 million) and only moderately increased by about 13% despite the growth in net sales of 75% and the substantially increased business volume.

 

Turnaround achieved at EBITDA level

With EBITDA of CHF 6.2 million for the first half of 2016, Meyer Burger achieved a positive EBITDA for the first time since 2012 (H1 2015 CHF -32.7 million). The substantial improvement in EBITDA is a result of the higher net sales and the optimised cost base mentioned above.

 

EBIT amounted to CHF -20.8 million (H1 2015 CHF -68.5 million). Depreciation and amortisation came to a total of CHF 27.0 million (H1 2015 CHF 35.8 million) and are divided as follows: CHF 9.0 million for scheduled depreciation of property, plant and equipment and CHF 18.0 million for scheduled amortisation of intangible assets, which resulted mainly from the M&A activities in 2011 and previous years.

 

Financial result, Taxes

The financial result, net, amounted to CHF -7.9 million for the first half of 2016 (H1 2015 CHF -25.3 million). The change compared to the first half of 2015 is mainly due to effects regarding the valuation of intercompany loans to foreign subsidiaries at each balance sheet date. For the first half of 2016 there was almost no effect on the income statement from these valuations, whereas in the first half of 2015 unrealized negative foreign currency translation effects of CHF -13.2 million were included due to the strong appreciation of the Swiss Franc at that time. 

 

Taxes for the first half of 2016 amounted to a tax income of CHF 3.2 million (H1 2015 CHF 0.8 million). The tax income in the first half of 2016 is mainly due to a reduction of deferred tax liabilities on intangible assets.

 

Net result

The loss at net result level was also reduced considerably and amounted to CHF -25.6 million (H1 2015 CHF -93.0 million). The net result per share amounts to CHF -0.28 for the half-year period 2016 (H1 2015 CHF -1.03).

 

Balance sheet

Total assets increased slightly during the first half of 2016 and were at CHF 585.8 million as at 30 June 2016 (31.12.2015 CHF 572.3 million). Cash and cash equivalents were CHF 113.5 million and have increased by CHF 12.1 million compared to year-end 2015. Inventories stood at CHF 128.0 million. Non-current assets mainly include property, plant and equipment of CHF 114.0 million, intangible assets of CHF 60.6 million and deferred tax assets of CHF 95.1 million.

 

Total liabilities amounted to CHF 435.7 million, of which trade receivables were CHF 50.9 million, customer prepayments CHF 68.9 million, provisions CHF 11.5 million and financial liabilities CHF 252.0 million. Equity amounted to CHF 150.1 million, which is mainly due to the net loss that still had to be accounted for in the first half of 2016 (31.12.2015 equity of CHF 175.0 million). The equity ratio as of 30 June 2016 was 25.6% (31.12.2015 30.6%).

 

The project to refinance the straight bond, which will mature in 2017, is moving at full speed. Meyer Burger is currently working on various alternatives and has intensive discussions with the relevant parties. Further information in this regard will be published, once the discussions and negotiations are finally concluded. 

 

Positive cash flow from operating activities

With a positive cash flow from operating activities in the amount of CHF +15.4 million for the first half of 2016 (H1 2015 CHF -28.0 million), Meyer Burger achieved another important target in the turnaround of the Group. Cash earnings were CHF +0.17 per share (H1 2015 CHF -0.31 per share).  

 

Cash flow from investing activities was CHF -2.9 million (H1 2015 CHF -2.9 million) and included normal conservative investments in non-current assets.

 

Cash flow from financing activities amounted to CHF -0.5 million (H1 2015 CHF -1.4 million) and included mainly the purchase of further shares in Meyer Burger (Germany) AG.

 

Outlook

With the broadest and most cutting-edge technology and product portfolio, combined with a strong global sales and service organisation, Meyer Burger is very well positioned in the Photovoltaic growth market to profit from the long-term dynamics of this market.

 

With the strong incoming orders, the high order backlog and the substantial improvements in the results, Meyer Burger is on track, to reach and actually exceed its targets of solid growth in net sales and to achieve break-even at the EBITDA level for fiscal year 2016.

 

 

Contacts:

 

Werner Buchholz
Head of Corporate Communications
Phone: +41 33 221 25 06
werner.buchholz@meyerburger.com

 

Ingrid Carstensen

Corporate Communications

Phone +41 (0)33 221 28 34

ingrid.carstensen@meyerburger.com

 

 

KEY FIGURES FIRST HALF-YEAR 2016

 

Consolidated income statement

in TCHF

H1 2016

H1 2015

Net sales

217 759

124 425

Operating income after costs of products and services

107 226

70 907

in % of net sales

49.2%

57.0%

EBITDA

6 247

-32 749

in % of net sales

2.9%

-26.3%

EBIT

-20 802

-68 500

in % of net sales

-9.6%

-55.1%

Earnings before taxes

-28 717

-93 810

Net result

-25 559

-93 009

 

 

 

Consolidated balance sheet

in TCHF

30.06.2016

31.12.2015

Total assets

585 779

572 304

Current assets

314 116

279 495

Non-current assets

271 663

292 809

Liabilities

435 679

397 301

Equity

150 100

175 003

Equity ratio

25.6%

30.6%

 

 

 

Consolidated cash flow statement

in TCHF

H1 2016

 

H1 2015

 

Cash flow from operating activities

15 445

-28 003

Cash flow from investing activities

-2 914

-2 872

Cash flow from financing activities

-478

-1 440

Change in cash and cash equivalents

12 053

-32 314

Currency translation differences in cash and cash equivalents

4

-3 525

Cash and cash equivalents at end of the period (30 June)

113 514

133 929

 

Number of employees (FTE) at 30 June

 

1 547

 

1 645

 

 

The Half-Year report 2016 and the Conference Call presentation for the first half-year 2016 results are available for download on the Company website www.meyerburger.com at the link – Investor Relations – Financial Reports & Publications.

 

Half-Year Report under the section Reports:

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

Presentation under the section Publications:

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

 

  

About Meyer Burger Technology Ltd

www.meyerburger.com

 

Meyer Burger is a leading global technology company specialising on innovative systems and processes based on semiconductor technologies. The company’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 company currently employs over 1,500 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.

 

Meyer Burger’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 company’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 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, Malaysia, the Netherlands, Switzerland, Singapore, Taiwan and the USA. The company 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).

 

 

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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