DGAP-News: 3W Power/AEG Power Solutions reports preliminary results for fiscal year end and Q4 2012
(firmenpresse) - DGAP-News: 3W Power S.A. / AEG Power Solutions / Key word(s):
Preliminary Results/Final Results
3W Power/AEG Power Solutions reports preliminary results for fiscal
year end and Q4 2012
20.03.2013 / 20:46
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3W Power/AEG Power Solutions reports preliminary results for fiscal year
end and Q4 2012
(in EUR million) 12M 2012 12M 2011?in %
Order backlog 126.9 150.3 -15.6
Orders 371.3 380.8 -2.5
Revenue 368.0 402.5 -8.6
Book to Bill 1.01 0.95 6.6
EBITDA 18.3 53.9 -66.0
EBITDA margin 5.0% 13.4%
Normalized EBITDA 27.0 52.7 -48.6
Normalized EBITDA margin 7.3% 13.1%
(in EUR million) Q4 2012 Q4 2011?in % Q4 2012 Q3 2012?in %
Order backlog 126.9 150.3 -15.6 126.9 135.3 -6.2
Orders 111.0 73.9 50.3 111.0 89.2 24.4
Revenue 113.4 120.0 -5.5 113.4 81.0 40.0
Book to Bill 0.98 0.62 59.0 0.98 1.10 -10.9
EBITDA 2.2 12.6 -82.3 2.2 11.0 -80.0
EBITDA margin 2.0% 10.5% 2.0% 13.6%
Normalized EBITDA 7.4 12.7 -41.3 7.4 13.7 -46.0
Normalized EBITDA margin 6.6% 10.6% 6.6% 16.9%
Historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation during Q3 2012.
Luxembourg/ Zwanenburg, The Netherlands - March 20, 2013 - 3W Power SA
(Prime Standard, ISIN GG00B39QCR01, 3W9), the holding company of AEG Power
Solutions B.V., a leading global provider of power electronic systems and
solutions for industrial power supplies and renewable energies, today
announced preliminary results for fiscal year end and Q4 2012.
Group results for fiscal 2012
AEG Power Solutions finished fiscal 2012 with EUR371.3 million of orders,
EUR368.0 million of revenue and a 7.3% Normalized EBITDA margin. Compared
to fiscal 2011, orders were down 2.5% (2011: EUR380.8 million) and revenue
was down 8.6% (2011: EUR402.5 million). Normalized EBITDA of EUR27.0
million (2012 EBITDA: EUR18.3 million) was down 48.6% (2012 EBITDA: down
66.0%) from 2011 Normalized EBITDA of EUR52.7 million (2011 EBITDA:
EUR53.9 million).
Normalized EBITDA fell short of the Company's guidance following
management's decision to take a reserve provision for past due receivables
of EUR8.5 million. The provision is held against overdue receivables in
relation to several solar projects. Excluding this provision, the
Normalized EBITDA margin for 2012 would have been 9.1%. 2012 EBITDA was
also impacted by a significant drop in highly profitable polysilicon
systems in POC within RES and the initiation of multi-faceted cost
improvement initiatives aimed at increasing structural profitability within
EES. The initiatives consist of a global EES headcount reduction of more
than 100 employees in Q4 2012, principally in Warstein-Belecke, Germany,
product clinics aimed at reducing complexity, implementation of global
purchasing aimed at achieving economies of scale and improved efficiency.
Taken together, these initiatives are expected to achieve run-rate cost
savings of approximately EUR7 million per annum. In addition, the Company
has further focused on reducing its central overhead cost to approximately
EUR10 million per year. Restructuring provisions and one-off costs for all
of these initiatives totaled EUR9.0 million for 2012. In addition, the
Group incurred one-off costs (e.g., professional fees) in relation to the
failed Andrem take-over and reported a capital gain of EUR1.4 million on
the sale of premises in Malaysia.
With the ongoing weakness in the polysilicon market and with no recovery
expected for POC in 2013, the Company has adjusted its business plans,
which has led to an impairment charge on goodwill, intangibles and
accelerated amortization charges of EUR175.3 million for the full year
2012. The Q4 RES charges comprise EUR72.1 million against goodwill (fully
written off) and EUR54.9 million against intangibles (EUR40.0 million -
customer relationships and EUR14.9 million - technology). These amounts
are in addition to the EUR43.3 million RES accelerated amortization charge
already taken in Q3. In Q4, the Company also took an accelerated
amortization charge of EUR5.0 million against customer relationships within
EES. AEG Power Solutions continues to diversify the POC business beyond
polysilicon applications into promising new areas.
The Group maintained EUR42.9 million cash and cash equivalents as at 31
December 2012.
Regarding the publication of its annual report, AEG Power Solutions issued
an ad hoc release today announcing that the Board of Directors and
management of AEG Power Solutions will be finalizing and publishing the
Company's annual report within two weeks instead of tomorrow (March 21,
2012) as previously announced. Additional time is needed to prepare the
Outlook and Risk Factors sections of the annual report given payment delays
from a European customer, which have been exacerbated by the current
banking situation in Cyprus. As of December 31, 2012 this customer, who
centralizes its procurement through a Cyprus subsidiary, represented 37.5%
of AEG Power Solutions' EUR124.5 million receivables. The customer's past
due amounts as of December 31, 2012 have been fully reserved for. Given
the size of the customer's receivables, failure to collect a material
amount owed from the customer could present significant financial
difficulty for the Company. However, the Company at present fully expects
to collect on the outstanding amounts due and to continue its strong
business relationship with this customer.
Group and segment results for Q4 2012
Order intake in Q4 2012 was EUR111.0 million, up 50.3% year-on-year as a
result of a significant increase in Solar orders in areas outside of
Western Europe which continue to show steady growth. Compared to the prior
quarter, orders were up 24.4% driven by growth in Solar, while order
backlog in Q4 2012 was EUR126.9 million, down 15.6% year-on-year and down
6.2% compared to Q3 2012.
Revenue in Q4 2012 was EUR113.4 million, up 40.0% compared to the prior
quarter (Q3 2012: EUR81.0 million) but down 5.5% compared to Q4 2011
(EUR120.0 million) with increases in Solar revenue offset by lower POC and
EES revenue. Normalized EBITDA in Q4 2012 was EUR7.4 million, which
excludes one-time charges of EUR5.2 million. This corresponds to
Normalized EBITDA of EUR12.7 million in Q4 2011 and EUR13.7 million in Q3
2012.
Renewable Energy Solutions (RES)
(in EUR million) Q4 2012 Q4 2011?in % Q4 2012 Q3 2012?in %
Order backlog 57.2 79.2 -27.8 57.2 54.5 5.0
Orders 70.5 28.1 151.0 70.5 42.1 67.5
Revenue 64.0 66.3 -3.4 64.0 42.3 51.3
EBITDA 8.6 17.4 -50.5 8.6 11.8 -27.1
EBITDA margin 13.4% 26.2% 13.4% 27.9%
Normalized EBITDA 8.6 17.4 -50.5 8.6 11.8 -27.1
Normalized EBITDA margin 13.4% 26.2% 13.4% 28.0%
Historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation during Q3 2012.
Orders in RES were EUR70.5 million in Q4 2012, up 151.0% year-on-year (Q4
2011: EUR28.1 million) and up 67.5% compared to the prior quarter (Q3 2012:
EUR42.1 million), with both increases resulting from strong order intake
from Solar (up 219.3% year-on-year and up 75.1% compared to the prior
quarter). RES order backlog was EUR57.2 million in Q4 2012, down 27.8%
year-on-year and up 5.0% compared to Q3 2012.
RES revenue was EUR64.0 million in Q4 2012, up 51.3% compared to the prior
quarter (Q3 2012: EUR42.3 million) driven by Solar (up 77.6%), but down
3.4% compared to Q4 2011 (EUR66.3 million) with increases in Solar revenue
(up 29.0%) not sufficient to offset the weakness in POC (down 52.4%). RES
EBITDA was EUR8.6 million in Q4 2012, down 50.5% from Q4 2011 (EUR17.4
million) and down 27.1% from Q3 2012 (EUR11.8 million).
Energy Efficiency Solutions (EES)
(in EUR million) Q4 2012 Q4 2011?in % Q4 2012 Q3 2012?in %
Order backlog 69.8 71.2 -2.0 69.8 80.8 -13.6
Orders 40.5 45.8 -11.5 40.5 47.1 -14.0
Revenue 49.4 53.7 -8.0 49.4 38.7 27.6
EBITDA -1.5 2.7 -1.5 2.5
EBITDA margin -3.0% 5.0% -3.0% 6.5%
Normalized EBITDA 1.7 2.9 -42.2 1.7 4.0 -57.5
Normalized EBITDA margin 3.3% 5.3% 3.3% 10.3%
Historical numbers have been represented for comparative purposes to
reflect the classification of the telecom converter business (CVT/LED) as a
discontinued operation during Q3 2012.
Order intake in EES was EUR40.5 million in Q4 2012, down 11.5% year-on-year
(Q4 2011: EUR45.8 million) due to lower DC Telecom (DCT) volume. Compared
to the prior quarter, EES orders were down 14.0% (Q3 2012: EUR47.1
million), again mainly due to lower DCT business. The order backlog stood
at EUR69.8 million in Q4 2012, down 2.0% year-on-year (Q4 2011: EUR71.2
million) and down 13.6% compared to Q3 2012 (EUR80.8 million).
Revenue was EUR49.4 million in Q4 2012, down 8.0% compared to the prior
year (Q4 2011: EUR53.7 million) due to lower DCT but up 27.6% compared Q3
2012 (EUR38.7 million) driven by seasonally strong EMS revenue in Q4.
EBITDA for EES in Q4 2012 was
- EUR1.5 million including restructuring charges of EUR3.0 million, down
from EUR2.7 million in Q4 2011 including 1.1 million income as a result of
a reversal of a restructuring provision and EUR2.5 million in Q3 2012.
This corresponds to Normalized EBITDA for EES in Q4 2012 of EUR1.7 million,
compared to EUR2.9 million in Q4 2011 and EUR4.0 million in Q3 2012.
During Q3 2012, the Company decided to divest the loss-generating telecom
converter and LED business in Lannion, France within EES classifying the
business as a discontinued operation and asset held for sale. For the
twelve months ending December 2012 and Q4 2012, the Company's loss from
discontinued operations was EUR9.6 million and EUR1.6 million,
respectively. The decision is consistent with the Company's ongoing effort
to minimize complexity within the Group and to reduce its exposure to
telecommunications.
AEG Power Solutions continues to focus on improving the profitability of
EES with expected margin improvements to come from the multifaceted cost
improvement initiatives initiated during 2012.
Outlook
'The diversity of the Company's business mix and its exposure to the solar
market makes accurate forecasting in the current economic environment
difficult', affirms Horst J. Kayser, CEO of 3W Power and AEG Power
Solutions. 'While AEG Power Solutions is well diversified and excellently
positioned both technologically and also geographically to capture
opportunities in its key global industrial vertical markets as well as in
the renewable energy markets, we expect 2013 to be a challenging year.'
Aside from the continued global macroeconomic issues, the most significant
challenge in the business in the past year was the lack of investment in
new polysilicon capacity in the market. 'In the past, our participation in
polysilicon systems through POC was a leading contributor to positive free
cash flow for the Company, though for the foreseeable future we do not
anticipate a return of this lucrative business', says Horst J. Kayser.
'Despite this market volatility, the POC business remains profitable on the
basis of other systems and applications, though at much lower revenue
levels.' In the meantime, POC will continue to be a center of innovation
and technological strength. The Company continues to develop and redirect
its efforts into promising new systems and applications such as advanced
industrial applications and power control systems for energy storage and
Smart Grid applications. These activities should contribute meaningful
growth and profitability in the medium-term.
AEG Power Solutions' Solar business is well positioned and less exposed to
the challenging Western European markets than many of its competitors. The
Solar business has a strong footprint in growth regions around the world.
In Eastern Europe, the Company was awarded its third large solar contract
covering photovoltaic utility scale equipment and services for 240 MW as
well as in India where the Company was awarded a 30 MW solar power plant
project providing inverters and monitoring and control equipment. The
Company continues the drive for growth in key Solar end-markets of Asia,
Africa, the U.S, South America and Eastern Europe. While the Solar
business has continued to grow and the Company has maintained healthy
margins, the growth has also required a sizeable investment in working
capital. Much of this working capital is tied to large projects in Eastern
Europe.
AEG Power Solutions' industrial business continues to provide a solid and
resilient base that helps to insulate the Company from the more volatile
and cyclical business segments within RES. AEG Power Solutions continues
to focus on improving the profitability within its industrial UPS business
of EES whilst supporting the growth and development of Solar. The Company
expects EMS to grow moderately and with incremental margin improvements
resulting from the business improvement initiatives introduced in 2012.
Profitability in the telecommunications sector will remain challenging and
the Company is seeking ways to reduce exposure to this market.
For the Group, replacing the cash flows and profitability of polysilicon
systems business will be a challenge. The company has aggressively adapted
to the changing dynamics by actively managing our capital spend and
redirecting our efforts to capitalize on market opportunities around the
world. For 2013 AEG Power Solutions expects to achieve overall sales
volumes near 2012 levels and Normalized EBITDA comparable to 2012
performance. On a segment level for 2013, AEG Power Solutions currently
anticipates the following:
- EES, excluding the telecom converter business (CVT/LED), will achieve
modest year-on-year revenue growth but with modest profitability
improvement given the significant cost improvement initiatives;
- Solar orders and revenue will grow profitably year-on-year;
- POC orders and revenue will fall short of 2012 levels on continued
weakness inthe polysilicon market; POC will remain profitable even at
substantially lower volumes;
'AEG Power Solutions is fortunate to have such a diversified business both
geographically as well as across industries and markets', emphasizes Horst
J. Kayser. 'With a focus on both cash flow and exciting new growth areas
we are uniquely positioned for the future.'
-- End of Announcement --
Characters: c. 13,800
About 3W Power/AEG Power Solutions:
3W Power S.A. (WKN A0Q5SX / ISIN GG00B39QCR01), based in Luxembourg, is the
holding company of AEG Power Solutions Group. The Group is headquartered in
Zwanenburg in the Netherlands. The shares of 3W Power are admitted to
trading on Frankfurt Stock Exchange (ticker symbol: 3W9).
AEG Power Solutions Group is a global provider of power electronic systems
and solutions for all industrial power supplies and offers one of the most
comprehensive product and service portfolios in the area of power
conversion and power controlling. The two complementary operating business
units Renewable Energy Solutions (RES) and Energy Efficiency Solutions
(EES) are serving customers worldwide. The RES product and service
portfolio consists of systems and solutions for solar power plants like
solar inverter, monitoring and control systems as well as power controller.
The EES product and service portfolio includes high performance
uninterruptable power supplies (USPs), industrial power controller and
DC-converter.
Thanks to its distinctive expertise, bridging both AC and DC power
technologies and spanning the worlds of both conventional and renewable
energy, the company creates innovative solutions for smart grids.
AEG Power Solutions' footprint is global including 17 subsidiaries and
competence centers around the world, employing 1,600 employees.
For more information go to: www.aegps.com
This communication does not constitute an offer or the solicitation of an
offer to buy, sell or exchange any securities of 3W Power. This
communication contains forward-looking statements which include, inter
alia, statements expressing our expectations, intentions, projections,
estimates, and assumptions. These forward-looking statements are based on
the reasonable evaluation and opinion of the management but are subject to
risks and uncertainties which are beyond the control of 3W Power and, as a
general rule, difficult to predict. The management and the company cannot
and do not, under any circumstances, guarantee future results or
performance of 3W Power and the actual results of 3W Power may materially
differ from the information expressed or implied in the forward-looking
statements. As a result, investors are cautioned against relying on the
forward-looking statements contained herein as a basis for their investment
decisions regarding 3W Power.
3W Power undertakes no obligation to update or revise any forward-looking
statement contained herein.
For more information, contact:
Investor Relations:
Katja Buerkle
Associate Director
AEG Power Solutions
Phone: +31 20 4077 854
Cell: +31 6 1095 9019
E-mail: investors(at)aegps.com
Media Relations:
Christiane L. Döhler
M. A. - Exec. MBA HSG
DOEHLER COMMUNICATIONS
Phone: +49 89 51616810
Cell: +49 175 2905054
E-mail: cd(at)doehler-communications.com
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Language: English
Company: 3W Power S.A. / AEG Power Solutions
19, rue Eugène Ruppert
L-2453 Luxembourg
Grand Duchy of Luxembourg
Phone: +31 20 4077 863
Fax: +31 20 4077 875
E-mail: michael.julian(at)aegps.com
Internet: www.aegps.com
ISIN: GG00B39QCR01, DE000A1A29T7,
WKN: A0Q5SX, A1A29T,
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, München, Stuttgart
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