Phoenix Solar AG expects to return to positive EBIT in 2014

Sulzemoos, Germany - Phoenix Solar AG, an international photovoltaic system integrator has issued Annual Report 2013, attested by the independent auditor and adopted by the Supervisory Board.

Overview of performance In the financial year 2013, Phoenix Solar AG achieved consolidated revenues of EUR 141.2 million, which is nine percent lower in a year-on-year comparison. The sales of photovoltaic power plants and modules decreased by 3.1 percent to 126 MWp (2012: 130 MWp). The share in revenues generated by domestic business corresponded to 11.8 percent (2012: 29.9 percent), down from EUR 29.7 million to EUR 16.7 million, equates to a decline of 64.0 percent owing to the termination of the trading and project business in Germany. International markets accounted for 88.2 percent of sales revenues (2012: 70.1 percent). Nonetheless, earnings before interest and taxes (EBIT), which posted EUR - 1.4 million, increased significantly compared with the previous year (EBIT 2012: EUR - 31.8 million). This result also includes the cost of the last restructuring phase amounting to EUR 1.9 million. The consolidated net result for the period attributable to the shareholders stood at EUR -10.7 million (2012: EUR - 37.3 million). The loss per share posted EUR 1.45 (2012: EUR 5.06).

Impact of strategic realignment This positive development is due to far-reaching changes decided over the course of the financial year which were initiated and successfully implemented. In February 2013, Phoenix Solar AG completed the process of strategically realigning the Group's business towards the US and Asian growth regions. Over the course of the year, revenues were more than doubled in both sub-markets. Revenues achieved in the USA amounted to EUR 53.8 million (2012: EUR 23.2 million), while the company generated revenues of EUR 38.2 million (2012: EUR 16.2 million) in Asia. By contrast, business in Europe fell significantly short of the previous year and of expectations owing to the considerable deterioration in political framework conditions. Sales revenues in this region stood at EUR 33.2 million, which is only half the revenues of EUR 69.8 million generated in 2012.

The discontinuation of the trading and project business in its previous form operated from Germany was at the heart of the strategic alignment. Business activities retained included the operation and maintenance of power plants located in Ulm. In addition, Phoenix Solar AG commenced with the development of new business models independent of government subsidies which are meanwhile already in the test phase. Given these fundamental changes, we realized revenues in Germany of only EUR 16.7 million,

Source: IWR Online, 03 Apr 2014