Roth & Rau AG / Key word(s): Preliminary Results06.02.2012 18:00Dissemination of an Ad hoc announcement according to § 15 WpHG, transmittedby DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------Roth & Rau AG: - Preliminary results for 2011 - Further measures adopted within cost and structure optimisation programme- Future financing securedHohenstein-Ernstthal, 6 February 2012 - The tough market climate in thesolar industry clearly left its mark on the sales and earnings performanceof Roth & Rau AG in the 2011 financial year. Based on preliminary figures,consolidated sales fell year-on-year from EUR 285 million to EUR 208million. New orders net of cancellations amounted to EUR 153 million (2010:EUR 537 million). Orders on hand totalled EUR 141 million as of 31 December2011 (31.12.2010: EUR 336.5 million). At EUR -107 million, earnings beforeinterest and taxes (EBIT) were sharply down on the previous year's figureof EUR -27.3 million. The high negative earnings figure posted for the 2011financial year was chiefly due to one-off items of EUR 93 million. Thisfigure included goodwill impairment losses of EUR 18 million recognised forsubsidiaries. Write-downs of receivables accounted for a EUR 19 millioncharge on earnings. Furthermore, write-downs and impairment lossestotalling EUR 39 million were recognised on inventories and for property,plant and equipment and intangible assets. Alongside these, as a riskprecaution provisions of EUR 12 million were recognised for contractualrisks. One-off expenses of EUR 5 million were incurred for the CRiSP costand structure optimisation programme and for the legal advice in thecontext of the takeover by Meyer Burger Technology AG. Adjusted for theseitems, EBIT amounted to EUR -14 million. Consolidated net income dropped toEUR -123 million (2010: EUR -25.8 million).Due to these negative earnings figures, shareholders' equity fell from EUR251 million to EUR 127 million. The equity ratio as of 31.12.2011 remainedsolid at 53% (31.12.2010: 58%) - not least given the substantial curtailingin the balance sheet due to adjustments for one-off items. The Group hadcash and cash equivalents of EUR 30 million as of the balance sheet date(31.12.2010: EUR 108 million).Further figures and details will be published with the Annual Report on 22March 2012.Far-reaching restructuring programme adopted At a meeting held today, the Supervisory Board of Roth & Rau AG approvedthe proposal submitted by the Management Board to supplement the actionsalready taken within the CRiSP cost and structure optimisation programmewith additional measures. The aim is to adjust cost structures at shortnotice in line with the changed market position so as to ensure a rapid andsustainable improvement in the company's earnings and financial strength.It is planned to close locations and cut significant numbers of personnel.Following the implementation of all measures, of the current total of 26subsidiaries only 12 companies will remain within the Group. The workforceis to be downsized from 1,350 to less than 1,150 employees.Simplification of group structureRoth & Rau's affiliation within the Meyer Burger Group since 2011 hasresulted in synergy potential, especially in the Asian market, in terms ofboth market and cost structures. In future, local customer support in Asiais to be provided by Meyer Burger's sales and service companies. Roth &Rau's subsidiaries and outlets in China, Taiwan, India, Korea and Singaporewill therefore be closed. To safeguard the company's market presence, thesales and service employees will be taken over by Meyer Burger. By mergingtheir sales activities, the companies can pool their competencies andgenerate personnel and administration cost savings. To further boost theGroup's earnings strength, loss-making subsidiaries are to be discontinued.This measure will affect the production company in Italy and the salescompanies in Australia and the USA. In Germany, the complexity of the groupstructure is to be further reduced by merging companies.Creation of competitive cost structuresFurther components of the restructuring package are aimed at returning theRoth & Rau Group's costs to competitive levels. At the Hohenstein-Ernstthallocation, where around 420 employees currently work, the ongoing crisis inthe solar industry will lead to around 15% of these jobs being cut. TheManagement Board regrets these measures extremely, but views them asindispensable to ensure the company's competitiveness in an ever toughermarket climate. Furthermore, material and other non-personnel costs will bereviewed across all production companies to generate further cost savings.All measures are planned to be implemented in full by the end of the firsthalf of 2012. Annual savings of EUR 18 million are expected from 2013. Theone-off restructuring expenses are expected to result in a EUR 3 millioncharge on earnings in 2012. Provided that the underlying framework does notdeteriorate even further, the measures initiated will create the conditionsnecessary for significantly lowering the Group's breakeven and forreturning to sustainably positive earnings.Financing Given the change of control triggered by the majority takeover by MeyerBurger Technology AG, existing guarantee credit lines had to berestructured in line with requirements. Accordingly, the existing syndicateloan agreement for EUR 75 million was terminated by Roth & Rau AG withinthe respective deadline as of 22 December 2011. Since 23 December 2011, theRoth & Rau Group has had bilateral guarantee credit lines of EUR 42 millionmade available on attractive terms by Meyer Burger Technology AG via Germanbanks. Furthermore, as of 10 January 2012 Meyer Burger Technology AG alsoissued a binding letter of comfort in favour of the Roth & Rau Group. Thissecures the allocation of liquidity by Meyer Burger Technology AG up to amaximum amount of EUR 50 million should the need arise.Contact:Roth & Rau AGMario SchubertHead of PR & CommunicationsPhone: 03723/671-3340Email: mario.schubert@roth-rau.deBetter Orange IR & HV AGLinh ChungPhone: 0211/17804720Email: linh.chung@better-orange.de06.02.2012 DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language: EnglishCompany: Roth & Rau AG An der Baumschule 6-8 09337 Hohenstein-Ernstthal GermanyPhone: 03723 6685-0Fax: 03723 6685-100E-mail: info@roth-rau.deInternet: www.roth-rau.deISIN: DE000A0JCZ51WKN: A0JCZ5Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
