SOLON SE Generates Operating Profit in Second Quarter 2010

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6-month report


- Revenue rises 104% to EUR243.6 million in H1 2010 - EBIT loss reduced to EUR2.3 million in H1 2010 - Positive EBIT of EUR4.3 million in Q2 2010 - Net loss after minority interest at EUR9.5 million in H1 2010

Berlin, August 18, 2010 - Berlin-based SOLON SE (ISIN DE0007471195) today published its interim report for the six months ended June 30, 2010, according to which Group revenue once again nearly doubled year on year. This favorable financial development is first and foremost a consequence of brisk business in Germany. The decision to adopt the mid-year reduction of the feed-in compensation for solar power sparked high demand among German customers, and this, in turn, had a very positive effect on the components business of SOLON, which as previously generated the largest portion of Group revenue (82%). Conversely, due to the wait-and-see attitude of several banks in financing customer projects, the system technology business was still unsatisfactory in the second quarter. After the successful conclusion of its refinancing negotiations at the beginning of June, however, the Company observed a noticeable recovery in this area. The improvement was evidenced by a number of new orders, particularly in Italy and the USA, that will lead to revenue in the coming quarters.

The key financial indicators of the first half of 2010 are broken down as follows: Group revenue rose 104% to EUR243.6 million (H1 2009: EUR119.4 million). Compared to the first half of 2009, EBIT and EBITDA also improved significantly to an EBIT loss of EUR2.3 million and positive EBITDA of EUR6.7 million (H1 2009: EBIT loss of EUR52.6 million and EBITDA loss of EUR42.7 million). SOLON SE recorded a net loss after minority interests of EUR9.5 million in the first six months of 2010 (H1 2009: net loss of EUR110.1 million). No one-time effects on net income occurred in the period under review. Accordingly, the loss per share declined to EUR0.73 (H1 2009: loss per share of EUR8.79). Some 36% of Group revenue was generated outside of Germany in the first half of 2010. Production volume reached 117 MWp.

Due to high demand anticipated for the third quarter, the carrying amount of inventories increased to EUR123.3 million (December 31, 2009: EUR90.6 million). This resulted in a negative operating cash flow of EUR18.2 million in the first six months (H1 2009: negative operating cash flow of EUR10.3 million). Working capital was EUR172 million and hence slightly lower than on March 31, 2010. The ratio of working capital to revenue generated in the past twelve months declined to 36%. Net debt as of the reporting date amounted to EUR367 million.

In consideration of the favorable business trend in the first half of the year and the strong outlook for sales in the third and fourth quarters, the Company´s management projects that Group revenue for the year 2010 will be significantly higher than EUR500 million with a breakeven operating result. The complete interim report of SOLON AG for the six months ended June 30, 2010, is available for download from the Company´s website (

SOLON SE Therese Raatz Investor Relations Phone: 030 / 818 79 - 9305 Fax: 030 / 818 79 - 9300 E-mail

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ots Originaltext: SOLON SE
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Further inquiry note:
Therese Raatz
Head of Corporate Communications
Tel.: +49 30 818 79-9305

Branche: Energy
ISIN:      DE0007471195
WKN:        747119
Index:    Midcap Market Index, CDAX, HDAX, Technology All Share, GEX,
Börsen:  Frankfurt / regulated dealing/prime standard
              Berlin / regulated dealing
              Hamburg / regulated dealing
              Stuttgart / regulated dealing
              Düsseldorf / regulated dealing
              München / regulated dealing

Weitere Meldungen: SOLON SE

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