Friday, February 21, 2014

SolarWorld AG releases medium-term plan for 2014 to 2016

BONN,GERMANY: The continuing crisis in the solar industry and political developments make it difficult to forecast future business development. Nevertheless, in November 2013 SolarWorld compiled a medium-term plan for the years 2014 to 2016, which was validated by PwC.

As basis of its planning, the Management Board of SolarWorld assumes that during 2014 the solar industry will have reached the final stage of consolidation. Whilst global demand for solar energy products is likely to continue to grow in 2014, prices will probably remain at the current level. SolarWorld expects that market growth will also have an effect on its own sales development.

In line with our sales strategy, in 2014 SolarWorld is planning to increase the share of sales of complete solar systems both in the private household segment as well as in international project business. A prerequisite for implementing these plans is the successful implementation of the approved measures to restructure the financial liabilities and balance sheet by the end of February 2014.

Under these assumptions, the SolarWorld Group is planning to increase shipments of modules and kits in 2014 by at least 40 percent compared with the previous year (548 MW). This rise is intended to be generated in all sales markets. As a result of volume growth and a higher share of the system business, SolarWorld is planning with revenues of over € 680 million for 2014 and an increase to more than € 1 billion in 2016.

The operational restructuring measures shall take effect during the course of 2014. The Management Board is therefore expecting a positive result before interest, taxes and depreciation (EBITDA) in 2014 of more than € 10 million.

On this basis, a positive cash flow from operating activities is also expected. The operating result (EBIT) 2014 is likely to be between € –35 million and € –20 million. For 2015 the SolarWorld Group is expecting a positive operating result as well as further increases in revenues of over 20 percent.

In this context, the Management Board of SolarWorld AG would expressly like to point out that the assumptions and framework conditions used for the corporate planning might be subject to changes.

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