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Singulus Reports Q2 2016 Results

Singulus Technologies announced financial results for the second quarter of 2016.

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Unedited press release follows:

SINGULUS TECHNOLOGIES publishes financial figures for the first half year of 2016

• High order intake and order backlog

• Sales in the period under review at low level

• Restructuring income results in significantly positive net profit

• Equity ratio positive at 24 %

• Segments Optical Disc and Semiconductor weak, Solar division impacted by one large order in the CIGS solar segment

• Additional solar orders in negotiation

• Bond restructuring successfully concluded

• Resolved capital increase for cash still pending

Kahl am Main, August 18, 2016 – The course of business in the first half of 2016 for SINGULUS TECHNOLOGIES AG (SINGULUS TECHNOLOGIES) was mainly driven by two factors: the successful implementation of the bond restructuring as well as the conclusion of several contracts for the delivery of machines for the production of CIGS solar modules with two subsidiaries of the Chinese state-owned enterprise China National Building Materials (CNBM) in the course of the trade fair SNEC in Shanghai, China. The planned final output volume of each factory will amount to around 300 MW in the end. This goal is targeted by the customer in a subsequent, second expansion step for the respective factory sites. The first advanced payment could not yet be received to the deadline of the present report. The respective advanced payment was announced, however, in written form and will be expected promptly.

In the half-year under review SINGULUS TECHNOLOGIES (SINGULUS TECHNOLOGIES) signed one major order for CIGS production equipment with an order volume of around € 110 million. Accordingly, the order intake of € 131.5 million in the first half of 2016 was significantly higher than the previous year’s level of € 73.1 million. Correspondingly, the order backlog increased to € 133.5 million (June 30, 2015: € 57.9 million). The half-year sales for 2016 at € 24.6 million were below the prior-year level of € 29.2 million. In the second quarter of 2016 sales in the amount of € 10.5 million were below the level of € 16.6 million achieved in the same quarter one year ago. In the first half of 2016 earnings before interest and taxes (EBIT) stood at € -9.3 million (previous year: € -9.8 million). In the second quarter 2016 EBIT stood at € -3.5 million (previous year: € -3.9 million).

Adjusted for restructuring income the second quarter of 2016 produced an adjusted EBIT in the amount of € -4.7 million (previous year: € -3.9 million). In connection with the bond restructuring a restructuring income in the amount of € 41.2 million was realized in June 2016. The income was reported as financial income. From this a financial result of € 38.6 million was recognized.

The number of employees in the SINGULUS TECHNOLOGIES Group slightly decreased from 335 salaried employees as of December 31, 2015 to 333 employees as of June 30, 2016.

Successful implementation of the resolved bond restructuring
In the past couple of weeks, SINGULUS TECHNOLOGIES has largely concluded the restructuring of the corporate bond due in 2017. Only the capital increase for cash resolved by the Extraordinary General Meeting is still pending.

The purchase offer envisaged bondholders of the old SINGULUS bonds receiving 96 new shares and two new notes with a nominal value of € 100 each exchanging with a nominal value of € 1,000 each (including all ancillary claims) for each old SINGULUS note. Within the subscription period from June 29, 2016 until July 13, 2016, the former bondholders exercised the overall existing purchase rights to the following extent:

• Exercised share purchase rights: 4,725,408 shares, corresponding to 82.04 %
• Exercised bond purchase rights: € 9,858,200.00 nominal value, corresponding to 82.15 %

The new shares and new bonds in respect of which former bondholders did not exercise their subscription right were publicly offered for purchase to the former bondholders, subscription-entitled shareholders and individual subscribers. The purchase price for each liquidation share after the conclusion of the rights offering period was determined at € 3.25. The purchase price for the liquidation bond amounted to 71.25 % of the nominal value. The payments of the share cash compensation and the bond cash compensation took place between July 27–29, 2016.

The admission of the new shares (WKN A1681X / ISIN DE000A1681X5) from the exchange capital increase to the Regulated Market at the Frankfurt Stock Exchange (Prime Standard) and the admission of the new bonds (WKN A2AA5H / ISIN DE000A2AA5H5) to the Quotation Board of the Frankfurt Stock Exchange became effective on July 20, 2016. The first quotation of the new shares took place on July 21, 2016, and the new bonds were quoted for the first time on July 22, 2016.

Outlook for the business year 2016
On June 1, 2016 SINGULUS TECHNOLOGIES with immediate effect revoked the forecasts for the business years 2016 and 2017 published on March 24, 2016. The reason is the order received at the end of May from two subsidiaries of the Chinese state-owned enterprise China National Building Materials for around € 110 million for the delivery of machines for the production of CIGS solar modules.

Generally, SINGULUS TECHNOLOGIES realizes sales in the Solar division according to the progress of project work. Consequently, the amount of sales expected in the current business year strongly depends on the course of the implementation of the order described above. At present, we anticipate that a major share of sales and earnings for the 2016 business year will not be realized until the business year 2017, as the order was placed later than had been assumed at the time of providing the outlook.

The company intends to review and publish the sales and earnings forecasts for the business year 2016 in the course of the second half of 2016.

SINGULUS company key figures according to IFRS (unverified)

First Half Year 2015 2016
Sales (gross) in million € 29.2 24.6
Order intake in million € 73.1 131.5
Order backlog (June, 30) in million € 57.9 133.5
EBIT in million € -9.8 -9.3
EBITDA in million € -8.0 -8.1
Earnings before taxes in million € -12.2 29.3
Net profit/ loss in million € -12.3 29.2
Employees (June, 30) 338 333
Earnings per share, basic in € -40.22 67.53

Second Quarter 2015 2016
Sales (gross) in million € 16.6 10.5
Order intake in million € 10.3 121.1
EBIT in million € -3.9 -3.5
EBITDA in million € -3.0 -2.9
Earnings before taxes in million € -5.2 36.4
Net profit/ loss in million € -5.4 36.3

SINGULUS TECHNOLOGIES – Innovations for new Technologies
SINGULUS TECHNOLOGIES is an engineering company and develops and builds machines for economic and resource-efficient production processes. The range of use of the machines built by SINGULUS TECHNOLOGIES include vacuum thin-film and plasma coating, wet-chemical cleaning and etching processes as well as thermal processing technology.

For all machines, processes and applications SINGULUS TECHNOLOGIES utilizes its know-how in the areas of automation and process technology in order to provide additional, attractive work areas with innovative products next to the existing application areas of Solar, Semiconductors and Optical Disc.