February 24, 2009

Erfurt, Germany: ersol Solar Energy Issues Preliminary Key Figures as of December 31, 2008

Bosch subsidiary, ersol Solar Energy AG (ersol) saw consolidated 2008 revenue almost double in comparison with 2007, climbing 93.3 percent from € 160.2 million to € 309.6 million.

This growth in revenue is mainly attributable to the start-up of long-term supply agreements. Sales were driven upward by an increase in cell production to 123 MWp (2007: 53 MWp output, 2006: 40 MWp output) and the start of thin-film module production with an output of 20 MWp. The delays in customer projects in the third and fourth quarters of 2008, which were brought about by the financial market crisis, led to a slightly weaker sales trend for thin-film modules in the second half of the year. Overall, however, the sales trend for the Group was extremely positive.

The operating result also increased more than threefold in 2008: in 2007 the operating result (EBIT) stood at € 22.3 million, but reached € 70.7 million in the year under review – an increase of 216.4 percent. The EBIT margin was 22.8 percent (2007: 13.9 percent), thus far exceeding the strategic target of 20.0 percent. The development of the financial result was also positive, with earnings before taxes (EBT) increasing almost fivefold.

"2008 was a very good year for ersol, in which we achieved the anticipated jump in sales and earnings. We shall continue to pursue ambitious goals in future, too, together with our new majority shareholder, Bosch," says Holger von Hebel, CEO of ersol Solar Energy AG, explains the preliminary business figures of the Thuringian photovoltaic company.

Due to the financial market crisis, ersol anticipates a temporary slowdown in the momentum of growth on the supply and demand side. ersol expects a return to the "old vitality" by 2010 at the latest. Long term, renewable energies will definitely play a strong role, with photovoltaics having a firm place. In terms of revenue for 2009: the Company is predicting an output of around 180 MWp solar cells and around 30 MWp in the thin-film segment, despite the current difficulties on the market. Combined with the other areas of the Company, ersol anticipates revenue of more than € 420 million. Revenue of more than € 700 million is forecast for 2010 with the start-up of new solar cell production capacities. Due to the significant preproduction costs for the further expansion and the growing price pressure on the market, EBIT is expected to increase moderately to between € 80 and 90 million in 2009.

ersol continues to have its sights set on growth from 2009 to 2012. "Together with Bosch we plan to expand crystalline production capacities to 520 MWp by the end of 2010, and to around 630 MWp by the end of 2012. Our second technology segment, thin-film modules, will also continue to develop. We also intend to expand capacities here by the end of 2012 – depending on the achievement of milestones – to around 200 MWp," says von Hebel of the ersol Group's future plans.

Solar cell production capacities and a plant for crystalline modules are to be constructed – subject to approval of the EU subsidies – on the site of Cell Fab 2 in Arnstadt. ersol plans to invest about € 530 million in the expansion of the crystalline segment until 2012. EU approval has now been granted for subsidies to extend the Erfurt site for the expansion of thin-film production capacities.

"In 2008 we welcomed ersol's 1,000th employee. By 2010 our payroll will have grown to more than 2,000. We will achieve this, in spite of intense competition for qualified employees," says an optimistic von Hebel.

In order to safeguard this future scenario, ersol again concluded new longterm supply agreements in 2008, which will ensure ersol continued security of supply. On the customer side, ersol is banking on a long-term order structure: in 2008, therefore, contracts were concluded with five long-term customers. As of 31 December 2008 the ersol Group's orders on hand for solar cells and thin-film modules amounted to around € 4 billion, compared with around € 3 billion in the previous year. "The conclusion of these customer contracts means that we have already sold more than 60 percent of our production output until 2012," concludes Holger von Hebel.

Further details about: ersol Solar Energy AG