Meyer Burger Technology Ltd
2010 another record yearPeter Pauli proposed for election as a member of the Board of DirectorsIn 2010, Meyer Burger Group recorded net sales of CHF 826.0 million (2009: CHF 420.9 million), representing an increase of 96%. The sales growth was based on 62% organic growth and 34% as a result of M&A activities. EBITDA rose to CHF 187.5 million with a margin of 22.7% (2009: EBITDA CHF 63.3 million, margin 15.0%). At EBIT level, Meyer Burger increased its profit to CHF 127.9 million und the EBIT margin reached 15.5% (2009: 9.8% margin). Group earnings amounted to CHF 97.9 million (2009: CHF 29.2 million). As of year-end 2010, Meyer Burger has a very solid and healthy balance sheet structure. As a result of the merger with 3S Industries Ltd and the excellent result in 2010, total assets increased to CHF 1,066.8 million. Cash and cash equivalents amounted to CHF 393.5 million as of 31 December 2010, and equity increased to CHF 642.9 million (31.12.2009: CHF 196.3 million). The equity ratio rose to 60.3% (31.12.2009: 42.7%). With its products and technologies, Meyer Burger is very well positioned in its markets, and expects ongoing strong growth in the solar industry in the years to come. For fiscal year 2011, Meyer Burger anticipates net sales of about CHF 1.2 billion and an EBITDA margin of around 20%. The Board of Directors will propose to the Ordinary General Meeting of Shareholders on 21 April 2011 to elect Peter Pauli, Chief Executive Officer, as member of the Board of Directors.
Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) achieved excellent results in fiscal year 2010. Both, incoming orders and order backlog surpassed the CHF 1 billion mark, and net sales almost doubled. Higher profit margins, sound cash flows and a very solid balance sheet structure demonstrate the outstanding condition of Meyer Burger Group.
Dynamic growth
The solar industry recovered significantly during 2010. It became already evident during the first half of 2010 that large projects, which will substantially increase manufacturing capacities at solar cell producers in the years 2011-2013, received financial backing at normal conditions again. This trend was further confirmed during the second half of the year. Meyer Burger succeeded in concluding a number of major orders in this environment and recorded CHF 1,329.8 million in new orders (previous year: CHF 193.7 million). For the first time in the company’s history, incoming orders and order backlog surpassed the CHF 1 billion mark. As of 31 December 2010, the order backlog amounted to CHF 1,048.5 million.
Net sales rose by 96% to CHF 826.0 million (previous year: CHF 420.9 million). The increase is based on 62% organic growth and 34% growth as a result of M&A activities. Sales grew most rapidly in Asia (+150%), which continuous to be the most important customer region with 76% of net sales. Europe provided 17% of net sales and customers in the USA accounted for 7%.
Attractive profit margins
Gross profit more than doubled year-on-year to CHF 408.8 million compared to CHF 170.1 million in 2009. The gross margin for the period rose to 49.5% from 40.4% in 2009. The increase in margin was mainly due to very high production volumes at the manufacturing sites in Thun and Zülpich, which resulted in leverage on fixed production costs. This effect was further supported by general process optimisation, as well as a changed product mix.
In 2010, personnel expenses rose to CHF 133.9 million (previous year: CHF 66.8 million). As of 31 December 2010, the Group employed 1,276 people on a full-time basis compared with 738 employees by year-end 2009. The increase includes 311 positions resulting from the merger with 3S Group and the acquisition of the SGS companies in the USA, as well as 227 newly created positions. In addition, 225 temporary employees (as of year-end 2010) were hired, predominantly in the second half of 2010.
Operating expenses increased to CHF 87.4 million, compared to CHF 40.0 million in 2009. The increase was primarily due to volume-related higher transportation costs, additional costs arising from the expansion of the Group, and M&A expenses in conjunction with the merger with 3S Industries Ltd in January 2010. In 2010, EBITDA amounted to CHF 187.5 million, with an excellent margin of 22.7% (previous year:EBITDA CHF 63.3 million, margin 15.0%). At EBIT level, Meyer Burger increased its profit to CHF 127.9 million, and the margin grew by 5.7 percentage points to 15.5% (previous year: EBIT CHF 41.3 million, margin 9.8%).
The decline of the Euro and the US Dollar against the Swiss Franc led to a substantial lower valuation of intercompany loans made by Meyer Burger Technology Ltd to foreign subsidiaries as of the balance sheet date 31 December 2010. The financial expenses of CHF 37.6 million include unrealized foreign exchange rate losses of CHF 31.6 million net, which were predominantly related to the intercompany loans.
In the first half of 2010, the federal and cantonal tax authority granted tax relief of 50% on federal, cantonal, municipal and church taxes to the subsidiary MB Wafertec (Meyer Burger Ltd). The tax relief was granted retroactively to 1 January 2008. The tax relief resulted in a non-recurring positive effect on income taxes of CHF 9.6 million (tax credit for years 2008 and 2009) and in a reduction in tax expenses of CHF 14.1 million for 2010. In total, the income statement for 2010 includes recognised tax income of CHF 4.6 million, compared to tax expenses of CHF 10.1 million for the previous year.
For 2010, Meyer Burger Group reported an increase in earnings to CHF 97.9 million compared to CHF 29.2 million in the previous year. This corresponds to diluted earnings per share of CHF 2.18, compared to CHF 0.94 in 2009.
Very solid balance sheet
The balance sheet of Meyer Burger Group is entirely free of debt, very solid and healthy. As of 31 December 2010, Meyer Burger had total assets of CHF 1,066.8 million. The high amount of cash and cash equivalents and the sound cash flows allowed the Group to make an early repayment of CHF 29.2 million in June 2010, and a further repayment of USD 20 million in September 2010 on the syndicated loan that was agreed in September 2009. In addition, a further CHF 6.9 million in bank liabilities was repaid. Despite these repayments, cash and cash equivalents amounted to CHF 393.5 million as of 31 December 2010. As a result of the excellent earnings and the capital increase in conjunction with the merger with 3S Industries Ltd, equity increased to CHF 642.9 million from CHF 196.3 million as of year-end 2009. The equity ratio rose to 60.3% (previous year: 42.7%).
Proposals to the General Meeting of Shareholders
As in previous years, the Board of Directors proposes to the Ordinary General Meeting of Shareholders on 21 April 2011 that the retained earnings shall be carried forward to finance further growth of the Group.
The Board of Directors will also propose to the General Meeting the election of Peter Pauli as a member of the Board of Directors. Peter Pauli has been acting as Chief Executive Officer of Meyer Burger Technology Ltd since 2002 and was also a member of the Board of Directors from 2002 until the date of the merger with 3S Industries Ltd on 14 January 2010. He and Prof. Dr. Eicke Weber stepped down from the Board on the date of the successful merger.
With his industry know how and strong commitment as member of the Board of Directors and as CEO, Peter Pauli has had a leading role in the success and development of Meyer Burger Group over the last years. With the election of Peter Pauli, the Board of Directors will be expanded from six to seven members.
Outlook
Meyer Burger remains very positive that the solar industry will continue to enjoy strong growth, and will meet a high proportion of the world’s energy needs in future, as an efficient and environmentally sound source of energy. Meyer Burger enjoys an excellent position along the value chain of the solar industry, and with its strong presence in Asia and Europe, the Company will benefit from the capacity expansions by solar cell manufacturers.
The Company has made a very positive start into fiscal year 2011 with a healthy order backlog of CHF 1,048.5 million. For 2011, Meyer Burger anticipates net sales of about CHF 1.2 billion and an EBITDA margin of around 20%, assuming that the economic conditions will remain relatively stable and that customers will be able to carry out their expansion plans without major disruption.
KEY FIGURES FISCAL YEAR 2010
Income Statement
in TCHF
2010
2009
Net sales
826 005
420 943
Gross profit
408 752
170 076
in % of net sales
49.5%
40.4%
EBITDA
187 535
63 323
in % of net sales
22.7%
15.0%
EBIT
127 851
41 314
in % of net sales
15.5%
9.8%
Group earnings
97 949
29 177
Balance sheet
in TCHF
31.12.2010
31.12.2009
Total assets
1 066 799
460 195
Equity
642 927
196 287
Equity ratio
60.3%
42.7%
Cash flow statement
in TCHF
2010
2009
Cash flow from operating activities
347 520
55 265
Cash flow from investing activities
10 147
(50 794)
Cash flow from financing activities
(53 557)
48 851
Change in cash and cash equivalents
304 109
53 322
Currency translation differences on cash and cash equivalents
(7 177)
(451)
Cash and cash equivalents at end of period
393 543
96 610
No. of employee (FTE) at 31 December
1 276
738
The entire Annual Report 2010 is available for download on the Company website www.meyerburger.com under the link – Investor Relations – Financial Reports. Details to the Curriculum Vitae of Peter Pauli are available on page 58 of the Annual Report 2010.
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
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 optics industries. Highly efficient wafers made from silicon, sapphire or 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 machines, production processes and systems that are used for the production of 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. Meyer Burger Group covers the most important technology steps in the value chain of photovoltaics with its products and solutions portfolio. The Group’s comprehensive range of products includes a worldwide service network with wear and tear parts, consumables, re-grooving services, process know-how, servicing, after-sales service, training and other services. As a globally active company, the Group is represented in Europe, Asia and North America in the respective key markets and has over 1,200 employees as of year-end 2010.
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 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. Meyer Burger Group has also 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 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.
Press Release Annual Results FY 2010
