Meyer Burger Technology Ltd - 1st Half Hear 2011
Excellent results once againContinuing dynamic growth and attractive profit marginsGuidance for full year 2011 increasedMeyer Burger Group increased its net sales by 61% to CHF 575.0 million in the first half of 2011 compared with CHF 356.9 million in the corresponding period in 2010, despite an economic environment that was marked by strong turbulence in foreign exchange rates. The increase in sales is solely due to organic growth. Adjusted for foreign exchange rate effects, net sales actually grew by 66%. With this achievement in net sales, Meyer Burger Group is on track to meet its ambitious full year sales target of CHF 1,200 million. The order backlog as of 30 June 2011 amounted to CHF 1,240.8 million, which provides an excellent basis for the business performance during the second half of 2011 and for the year 2012.
EBITDA in the first half of 2011 reached CHF 154.9 million, corresponding to a margin of 26.9% (H1 2010: EBITDA of CHF 64.6 million and a margin of 18.1%). At EBIT level, Meyer Burger generated a profit of CHF 125.1 million and an EBIT margin of 21.8% (H1 2010: EBIT of CHF 34.4 million, EBIT margin of 9.6%). Group earnings for the first half of 2011 came to CHF 76.6 million compared with CHF 23.6 million in the same period last year.
Meyer Burger is adjusting its guidance for full year 2011 and expects, excluding the pro-rata results of Roth & Rau AG, net sales for the entire year of CHF 1,200 million as previously communicated. In terms of EBITDA, the Company increases its margin guidance for the entire year 2011 to between 23 to 25%. This outlook is still based on the assumption that customers will realise their expansion projects as planned.
Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) achieved once again excellent results in the first half of 2011. The increase in net sales by 61% to CHF 575.0 million clearly demonstrates the Group’s excellent market position in the photovoltaics industry. With this achievement in net sales, the Company is also on track to reach its ambitious full year sales target of CHF 1,200 million. Meyer Burger is an innovative, well financed and profitable technology group that will – also in future – continue to sustainably profit from the growth potential of its markets.
Growing dynamically
The economic environment during the first half of 2011 was marked by strong turbulences in the US Dollar and Euro exchange rates and by fiscal policy problems in various European countries. In the photovoltaics market, the discussions at the end of 2010 about cuts in feed-in tariffs (e.g. in Germany, Italy, Spain) led to uncertainties in the market and accelerated the consolidation process that Meyer Burger had expected to see among solar cell manufacturers and suppliers. However, global interest in solar energy and specifically in photovoltaics has risen considerably.
In this challenging environment, Meyer Burger achieved a total volume of CHF 787.6 million in new orders (H1 2010: CHF 590.1 million). The order backlog as of 30 June 2011 amounted to CHF 1,240.8 million, which provides an excellent basis for the further business performance during the second half of 2011 and for the year 2012.
Net sales increased by 61% to CHF 575.0 million in the first half of 2011 compared with CHF 356.9 million in the same period last year. The increase in net sales is solely due to organic growth. Adjusted for negative foreign exchange rate effects caused by the weak US Dollar and Euro, net sales actually grew by 66% at constant exchange rates. Asia continued to be the most important sales region in the first half of 2011, accounting for 77% of net sales (sales growth +76%; percentage of sales in H1 2010: 71%). Europe generated 21% of net sales (sales growth +53%; percentage of sales in H1 2010: 22%) and the USA accounted for 2% of net sales (change in sales -54%; percentage of sales in H1 2010: 7%).
Attractive profit margins
Gross profit almost doubled again in the first half of 2011 to CHF 306.5 million compared with CHF 164.9 million for the same period last year. The gross margin improved to 53.3% compared with 46.2% in the first half of 2010. The gross margin is also slightly exceeding the already high level in margin that was achieved during the second half of 2010 (52.0%). The increase in margin compared to the first half of 2010 is mainly due to continued high production volumes at the manufacturing sites in Thun and Zülpich, consistent continuation of the modularisation and leverage on fixed production costs, in addition to certain foreign exchange rate effects (Euro), process optimisation in a number of areas and changes in the product mix.
Personnel expenses increased to CHF 82.5 million in the first half of 2011 compared with CHF 62.4 million in the previous year period. As of 30 June 2011, the Group employed 1,530 people on a full-time basis, an increase of 20% compared with year-end 2010 and 36% compared to 30 June 2010, respectively. In addition, the Group employed 223 FTEs on a temporary basis (170 temporary FTEs as of 30 June 2010). The number of temporary employees was reduced by approximately 13% compared to year-end 2010.
Other operating expenses rose to CHF 69.1 million compared with CHF 37.9 million in the first half of 2010. This increase is primarily attributable to volume-related higher transportation costs, increased external R&D expenses, higher IT expenses and costs arising from the expansion of the Group.
EBITDA reached CHF 154.9 million in the first half of 2011, corresponding to a margin of 26.9% compared to CHF 64.6 million and a margin of 18.1% in the same period last year. Depreciation and amortisation amounted to CHF 29.8 million (H1 2010: CHF 30.2 million). Out of this amount, CHF 23.7 million was attributable to amortisation of intangible assets, mainly in conjunction with the M&A activities of the previous years.
At EBIT level, Meyer Burger generated a profit of CHF 125.1 million compared with CHF 34.4 million in the first half of 2010. The EBIT margin reached 21.8% compared with 9.6% in the corresponding period of last year.
The persistent weakness of the Euro and the US Dollar against the Swiss Franc (Euro -3.8%, USD -11.4%) once more led to a lower valuation of the intercompany loans made by Meyer Burger Technology Ltd and MB Wafertec (Meyer Burger Ltd, Thun) to foreign subsidiaries as of the balance sheet date 30 June 2011. The financial expenses of CHF 34.2 million include unrealised exchange rate losses of CHF 29.8 million in conjunction with these intercompany loans and other balance sheet assets in Euros and US Dollars. Income taxes for the first half of 2011 came to a total of CHF 15.3 million, and a corresponding tax rate of about 16.7%. The relatively low tax rate is mainly a result of the tax relief granted to MB Wafertec retrospectively since 2008.
Earnings amounted to CHF 76.6 million compared with CHF 23.6 million in the first half of 2010. This corresponds to earnings per share for the first half of 2011 of CHF 1.63 (diluted) compared with CHF 0.54 for the same period last year.
High cash flows
The Group generated an operating cash flow of CHF +178.5 million in the first half of 2011 compared with CHF +84.1 million in the same period last year. The strong cash flow is due primarily to high volumes of sales, higher margins and a further reduction in net working capital.
Free cash flow (cash flow from operating activities less cash flow from investing activities) was CHF 83.6 million in the first half of 2011. Investments in property, plant and equipment amounted to CHF 24.5 million net for the reporting period and the cash investment in associated companies (Roth & Rau AG) was CHF 69.4 million.
Solid balance sheet structure
Mainly due to the flourishing business development and the business combination achieved in stages of Roth & Rau AG, total assets grew by about 22% to CHF 1,302.8 million, compared to year-end 2010. Cash and cash equivalents as of 30 June 2011 were CHF 479.1 million. Equity increased by 18% to CHF 760.5 million, which corresponds to an equity ratio of 58.4%.
Successful acquisition of Roth & Rau AG
Meyer Burger made another major step in its long-term corporate strategy during the first half of 2011 by launching a public tender offer for Roth & Rau AG in April 2011. As of balance sheet date 30 June 2011, Meyer Burger held a participation of 24.99% in Roth & Rau AG, which is reflected in the Group’s balance sheet as investment in associated companies, in accordance with IFRS. The settlement and payment of the offer price of EUR 22 per share took place on 9 August 2011. As of this date, Meyer Burger Group holds a total of 82.57% of the share capital and voting rights of Roth & Rau AG. The total amount of the investment in this acquisition up to 9 August 2011 came to approximately CHF 318 million. Roth & Rau is fully consolidated in the financial statements of Meyer Burger Technology Ltd since August 2011.
Outlook
With its broad product portfolio in wafering, solar cells and solar modules, Meyer Burger Group fulfils the needs of its customers to simplify and harmonise production processes and to achieve additional significant cost reductions and efficiency improvements through cutting-edge technology. The Company therefore places high priority in a fast integration of Roth & Rau into Meyer Burger Group during the next 18 to 24 months.
For the full year 2011, Meyer Burger expects, excluding pro-rata results of Roth & Rau AG, net sales for the entire year of CHF 1,200 million as previously communicated. In terms of EBITDA, the Company increases its margin guidance for the entire year 2011 to between 23 to 25%. This outlook is still based on the assumption that customers will realise their expansion projects as planned. Regarding business expectations of Roth & Rau AG, Meyer Burger refers to the statements that were made by Roth & Rau itself.
KEY FIGURES 1st HALF YEAR 2011
Consolidated income statement
in TCHF
1.1. - 30.6.2011
1.1. - 30.6.2010
Net sales
575 029
356 920
Gross profit
306 483
164 872
in % of net sales
53.3%
46.2%
EBITDA
154 885
64 575
in % of net sales
26.9%
18.1%
EBIT
125 110
34 368
in % of net sales
21.8%
9.6%
Group earnings
76 590
23 581
Consolidated balance sheet
in TCHF
30.06.2011
31.12.2010
Total assets
1 302 804
1 066 799
Equity
760 527
642 927
Equity ratio
58.4%
60.3%
Consolidated cash flow statement
in TCHF
1.1 .- 30.6.2011
1.1. - 30.6.2010
Cash flow from operating activities
178 477
84 126
Cash flow from investing activities
-94 911
20 937
Cash flow from financing activities
3 836
-34 980
Change in cash and cash equivalents
87 402
70 083
Cash and cash equivalents at the end of period
479 130
164 815
Number of employees (FTE) as of 30 June 2011 /
31 December 2010
1 530
1 276
The full Half Year Report 2011 is available for download on the Company website http://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
w.buchholz@meyerburger.ch
About Meyer Burger Technology Ltd
http://www.meyerburger.com/
Meyer Burger is one of the world’s leading providers of innovative systems and production lines for photovoltaics in the solar industry and for the semiconductor and optoelectronic industries. Highly efficient wafers made from silicon, sapphire and other crystals are required in these three markets to manufacture solar modules, switching circuits or high-performance LEDs. 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 module 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 photovoltaics value chain. The merger of the two companies creates a full-line system provider which covers the most important technology elements in the photovoltaics value chain, from crystalline silicon to complete solar systems, specifically in the production processes of wafering, solar cells and solar modules. The Group’s comprehensive range of products includes a worldwide service network with wear and tear parts, consumables, re-grooving services, process know-how, customer support, after-sales services, training and other services. As a globally active company, Meyer Burger Group is represented in Europe, Asia and North America in the respective key markets and has over 2,500 employees since the Group’s expansion in August 2011.
Meyer Burger has its headquarters and the production facility of MB Wafertec (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 Wire Materials Tech, Inc. has its headquarters in Colorado Springs, CO, USA. The production facilities of 3S Modultec, 3S Photovoltaics and Pasan are also located in Switzerland, while Somont is located in Germany. The recently integrated Roth & Rau Group has its headquarters in Hohenstein-Ernstthal in Germany and has subsidiaries in Germany, Italy, the Netherlands, USA and various far Eastern countries. The entire Meyer Burger Group has subsidiaries and own service centres in Germany, Norway, Spain, USA, China, Japan, Singapore, South Korea, Taiwan and India. 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).
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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