Q2 2012: Conergy achieves first positive EBITDA since 2010

• Module sales at 110 megawatts, sales at € 145.5m • EBITDA at € 0.5m • Net cash flow at € 7.0m in Q2 2012, continued to be positive

Hamburg, 14 August 2012 – Hamburg-based solar company Conergy continues the positive trend and has improved the quality of earnings in the second quarter 2012. The system supplier achieved the first positive earnings before interest, taxes, depreciation and amortization (EBITDA) since the third quarter 2010. Net cash flow also continued to be positive in the second quarter 2012.

"Despite an unchanged difficult market environment we have managed to return to the black at operating level in the second quarter," said Conergy CEO Dr. Philip Comberg. "We continue to work hard on bringing Conergy back on track and the results are an important milestone on our way. It clearly shows that our strategic realignment and improved cost structures yield results."

Q2 2012: Sales dynamics clearly visible during course of the year

As expected, the overall decline in prices lead to lower sales in the second quarter 2012 compared to the same period in the previous year. Sales were about 35% lower at € 145.5m (Q2 2011: € 225.2m) compared to the same period in 2011. Allowing for price and currency effects, the decline was significantly lower at 7.5%. Total sales volume in the second quarter was at 110 megawatts and only slightly below the previous year's value (Q2 2011: 119 megawatts).

Compared to the first quarter 2012 business notably picked up; Conergy increased its sales during the current fiscal year by about 48% (Q1 2012: € 98.2m) and sales volumes by almost 60% (Q1 2012: 70 megawatts).

In Germany, Conergy achieved sales of € 30.6m in the second quarter 2012 (Q2 2011: € 61.8m), while international sales added up to € 114.9m (Q2 2011: € 163.4m). The share of international business was accordingly at about 79%. Quarterly developments in Italy, Greece, and USA were particularly promising, as Conergy substantially increased sales volumes. The system supplier compensated the decline in prices and kept sales in these countries stable. In the US growth market Conergy increased sales even by 41%.

Q2 2012: Earnings performance – EBITDA, EBIT, net income

In the second quarter 2012, Conergy achieved the first positive earnings before interest, taxes, depreciation and amortization (EBITDA) of € 0.5m (Q2 2011: € -5.9m) since the fall of 2010. This marks a clear improvement by € 6.4m compared to the second quarter 2011.

Compared to the first quarter 2012 the positive trend has become more visible: In the first three months of the current fiscal year EBITDA was at € -7.6m, while Conergy improved EBITDA by € 8.1m to € 0.5m in the second quarter 2012.

In the second quarter 2012 earnings before interest and taxes (EBIT) were at € -3.1m (Q2 2011: € -12.7m) and net income after tax for the continuing operations at € -5.6m (Q2 2011: € -18.6m). Conergy reduced losses by about 70% year-on-year.
Q2 2012: Net cash flow repeatedly positive in Q2
As in the first quarter 2012, Conergy repeatedly generated a positive net cash flow, amounting to € 7.0m in Q2 (Q1 2012: € 6.2m). Compared to the same quarter last year, this is an improvement of € 9.7m (Q2 2011: € -2.7m). This positive development is due to, among others, a continuously strict Working Capital Management.

First half-year 2012: Sales, EBITDA, EBIT, net income

In the first half of the fiscal year 2012, Conergy achieved a sales volume of 180 megawatts (1. HY 2011: 199 megawatts), sales of € 243.7m (1. HY 2011: € 388.5m) as well as an EBITDA of € -7.1m (1. HY 2011: € -16.9m). Conergy reduced losses on EBITDA level by more than half year-on-year. Other financial indicators show positive developments, too: EBIT was at € -14.6m in the first half of the fiscal year (1. HY 2011: € -29.4m), net income after tax for the continuing operations at € -20.3m (1. HY 2011: € -41.0m).

2012: Outlook third quarter and full year 2012
"The solar industry and important markets, especially in Europe, were characterized by insecurity concerning subsidy programs and instability as a result of the euro crisis as well as a continuing decline in prices in the first half of 2012. Given that we were able to maintain our position in these surroundings and to improve our results, we are full of hope for the further course of the year," said Comberg.

In 2012, the Management Board continues to expect sales to be lower year-on-year and the EBITDA to improve to a low positive figure.

About Conergy
Conergy delivers solar energy systems from a single source. As a system supplier, Conergy offers all components for a solar installation as well as all related services.

With its portfolio of modules, inverters and mounting systems, the solar expert creates Conergy System Technology, which is efficient solar energy systems for private or commercial rooftops, as well as for multi-Megawatt Parks.

Conergy System Services deliver a "Worry-Free Package" for Conergy solar installations – from "A" for architectural planning to "Y" for yield insurance and "Z" for zero trouble. Conergy's experts not only install on-site turn-key solar projects, but they also manage the planning and financing, project implementation, system monitoring, operation and on-going maintenance of the project for maximum performance. With this comprehensive technology and service package, Conergy offers yield insurance for its installations.
Conergy System Sales brings Conergy premium products to more than 40 countries. From "A" for Australia to "T" for Tunisia – the solar expert supports homeowners, installers, wholesalers and investors in their efforts to "go solar". With sales activities on five continents, Conergy has close relationships with all its customers. In 2011, around three quarters of Conergy's sales were generated outside of Germany.

Listed on the Frankfurt stock exchange, Conergy employs around 1,300 people worldwide. Since Conergy's founding in 1998, it has produced and sold 2 GW of clean solar energy. Thus, in 2011 Conergy solar installations have generated more power than a nuclear reactor.

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