Conergy AG

EANS-Adhoc: Conergy AG
Financial statements of Conergy AG approved: further risks taken into account in the 2008 results

@@start.t1@@--------------------------------------------------------------------------------   ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro   adhoc with the aim of a Europe-wide distribution. The issuer is solely   responsible for the content of this announcement. --------------------------------------------------------------------------------@@end@@


Financial statements of Conergy AG approved: further risks taken into account in the 2008 results

@@start.t2@@-          Conergy aims for a cancellation of the supply contract with MEMC
-          Prepayment written down as a precaution
-          Legal doubts over the enforceability of certain contractual provisions;
Supervisory Board authorizes Management Board to initiate legal challenge@@end@@

Hamburg, April 20, 2009 - The Supervisory Board of Conergy AG today approved the consolidated financial statements for the 2008 fiscal year, as submitted by the Management Board. According to these financial statements, and as previously announced in the preliminary figures at the beginning of March, revenue amounts to EUR 1,006m. This represents an increase of 40% compared to the previous year (EUR 719m). In relation to the preliminary figures presented on 5 March 2009, earnings before interest and taxes (EBIT) fell by EUR 54m to EUR -213m (2007: EUR -213m). The additional losses are caused by write-downs and reserves which are not cash-effective. As Conergy is aiming for a cancellation of the supply contract with MEMC Electronic Materials, Inc., using legal means if necessary, this amount includes writedowns of prepayments, which Conergy made in mid 2008 in connection with the long-term wafer supply contract. This leads to a corresponding worsening of the result.

The publication of the annual results, originally intended for March 27, 2009, had to be postponed because of the ongoing negotiations with MEMC Electronic Materials, Inc. Contrary to expectations, it has not yet been possible to bring these negotiations to a conclusion. Earlier this year, Conergy entered into talks with MEMC with the aim of renegotiating the wafer supply contract. This action was taken because of the significant changes in the economic environment, particularly the very rapid swing from a seller's to a buyer's market. Since there are also legal doubts over the enforceability of some contractual provisions and the validity of the contract as a whole, the Supervisory Board of Conergy AG has today authorized the Management Board to take legal action contesting the supply contract no later than the end of April, if an amicable agreement cannot be reached in the next few days. As a precautionary measure, the Management Board has therefore already written down the prepayment made in the annual accounts approved today. In addition, expected litigation costs have been taken into account. At the same time, negotiations are continuing, with the aim of an amicable cancellation of the contract, in return for the prepayment made remaining with MEMC and a new supply contract with a term of one year. Although it appears that the general terms of this solution will be acceptable to both parties, the parties have not yet entered a formal agreement and the outcome remains uncertain.

In its continued operations, the annual loss 2008 recorded by the company therefore now stands at EUR -254m (previous year: EUR -213m). Including discontinued operations, the annual loss came to EUR 307m (previous year: EUR -248m). Conergy will present its complete financial statements on 29 April 2009.

Revenue in first quarter below prior-year level Business at the beginning of the year developed below expectations for the Conergy Group. According to preliminary estimates, revenue in the first three months of the year amounted to EUR 65m. This would correspond to a decline of 70% compared with the prior-year quarter, which had exceptionally high revenue. Following a difficult fourth quarter, which was burdened by the financial crisis and the recession in particular, January and February continued to be influenced by the same factors. On the other hand, there was some improvement in business in March, but the comparatively poor preceding months could not be compensated. Accordingly, the Management Board assumes that it will be very difficult to maintain revenue this year at the same level as in 2008. This is also caused by a change in the business model of Epuron, which will lead to lower revenue but at the same time to higher gross margins. The complete first quarter report will be published on May 14, 2009.

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ots Originaltext: Conergy AG
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Christoph Marx
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Branche: Energy
ISIN:      DE0006040025
WKN:        604002
Index:    Midcap Market Index, TecDAX, CDAX, HDAX, Prime All Share,
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Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse Berlin / free trade
              Börse Hamburg / free trade
              Börse Düsseldorf / free trade
              Börse Hannover / free trade

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