EANS-Adhoc: SOLON SE / SOLON SE starts the year with a significant gain in revenue

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.


SOLON SE starts the year with a significant gain in revenue

  • Revenue rises 132% to EUR88.8 million
  • Strong demand in the components business
  • EBIT loss of EUR6.6 million
  • Net loss after minority interests of EUR8.2 million

Berlin, May 12, 2010 - Berlin-based SOLON SE (ISIN DE0007471195), today published its interim report for the period ended March 31, 2010. The report shows that the Company more than doubled its Group revenue compared to Q1 2009. This favorable development was due in particular to the high demand for solar systems in the German market which proved to be very robust despite the long winter. In contrast, the system technology business continued to lag behind expectations. In the opinion of management, this was due not least to the wait-and-see attitude of customers related to the fact that progress was not achieved in resolving the Group's funding situation until late March.

The most important performance indicators of the first quarter of 2010 are broken down as follows: Group revenue rose by 132% to EUR88.8 million (Q1 2009:
EUR38.3 million). EBIT and EBITDA also improved significantly to an EBIT loss of EUR6.6 (Q1 2009: EBIT loss of EUR20.7 million) and EBITDA loss of EUR2.4 million (Q1 2009: EBITDA loss of EUR16.2 million). SOLON SE recorded a net loss after minority interests of EUR8.2 million in the first three months of 2010 (Q1 2009:
net loss of EUR19.2 million). There were no one-time effects in the period under review. The net loss per share declined to EUR0.65 in the first quarter of 2010 (Q1 2009: net loss per share of EUR1.53). More than 40% of Group revenue in the first quarter of the year was generated outside of Germany; the production volume amounted to 41 MWp.

The pickup in demand in the components business is also reflected in incoming orders, including a multiyear agreement signed in the first quarter with the German solar wholesaler entrason gmbh with a scope of delivery of 20 MWp in 2010.

The higher production output planned for 2010 increased the carrying amount of inventories to EUR110.9 million (December 31, 2009: EUR90.6 million). This resulted in a negative operating cash flow of EUR31.0 million in the first three months after a negative cash flow of EUR39.6 million in Q1 2009. The higher inventories caused working capital to increase slightly to EUR175.6 million.

Net debt as of March 31, 2010 amounted to EUR384.9 million. In late March, an agreement was reached with the banks concerning the restructuring of the Group's medium-term financing. The full credit documentation is currently being finalized.

Based on the current business performance, the Management Board reaffirms its target of closing fiscal year 2010 with a double-digit percentage increase in revenue and a break-even Group operating result.

The complete interim report of SOLON SE for the quarter ended March 31, 2010 is available for download from the company's website (www.solon.com).

Therese Raatz
Investor Relations
Phone: +49 / 30 / 818 79 - 9305
Fax: +49 / 30 / 818 79 - 9300
E-Mail: investor@solon.com

end of announcement euro adhoc

issuer: SOLON SE Am Studio 16 D-12489 Berlin phone: +49 30 818 79-9305 FAX: +49 30 818 79-9300 mail: investor@solon.com WWW: www.solon.com sector: Energy

ISIN: DE0007471195
indexes: Midcap Market Index, CDAX, HDAX, Technology All Share, GEX, ÖkoDAX stockmarkets: regulated dealing/prime standard: Frankfurt, regulated dealing:
Berlin, Hamburg, Stuttgart, Düsseldorf, München language: English

Rückfragen & Kontakt:

Therese Raatz
Head of Corporate Communications
Tel.: +49 30 818 79-9305
E-Mail: therese.raatz@solon.com