Conergy targets 60% growth in revenue and doubling of annual net profit for 2007

Frankfurt - Hamburg-based Conergy AG (ISIN DE 0060 40025) today published its Annual Report 2006 and presented plans for its growth. The management expects a leap in revenues of around 60% for 2007 to EUR 1.25 billion and to at least double the annual net profit.

In 2006 the company boosted its sales by 42% to EUR 752.2 million (2005: EUR 530.2 million). All sectors made a considerable contribution to this significantly higher growth rate. Revenues in markets outside Germany grew disproportionately by 268% to EUR 278.2 million and already account for 37% of total sales. Foreign sales are set to at least double again during the current business year. The revenue share of solar heating, wind power and bioenergy more than doubled, exceeding the planned 26% (previous year: 12%).

Conergy is thus well on the way to successfully implementing the 50/50/08 growth strategy. Sales from markets outside Germany and sales beyond the core photovoltaics business are expected to reach 50% of total sales in 2008. As such the company is opening up extra revenue and profit generating potential and simultaneously will be more able to compensate for supply and demand surpluses in the cyclically fluctuating markets for renewable energy systems.

Conergy plans dividend at same level as last year

Conergy AG’s Management Board has put before the Supervisory Board for its consideration a proposal on the allocation of profits, including a proposal that part of the 2006 accumulated profits should be used to pay a dividend of 10 Eurocent per participating share on the total of 32,999,999 shares. Taking into account the stock split and the capital increase, this represents a similar dividend level to last year. As a company experiencing strong growth, Conergy expects to continue to finance its expansion primarily from its own resources.

Rising profits despite investments in foreign markets and production

Conergy improved the company net annual profit for 2006 by 8.6% to EUR 30.2 million (previous year: EUR 27.8 million). The gross profit margin rose clearly in 2006 to 19.3% (previous year: 16.1%). EBIT improved to EUR 52.1 million (previous year: EUR 47.4 million). Returns are reduced as a result of investment expenditure for the expansion of complementary technologies (EUR 12.2 million), including the new fully integrated solar wafer, cell and module production together with the penetration of new international markets including the establishment of 26 companies (EUR 8.7 million). This special expenditure is balanced by the extraordinary profit of EUR 15 million from the sale of two properties. The equity ratio was 26% on the date of balance. By means of a successful increase of capital, the company’s own capital resources could be increased at the beginning of March 2007 by an extra EUR 150 million to around EUR 330 million. In preparation for the targeted leap in sales in 2007 the number of employees was doubled from 724 in early 2006 to 1,480 at the end of the year. Before the end of the current year Conergy plans to recruit a further 1,000 staff in order to expand the global market share in the renewable energy systems sector.

Plan for the expansion of product lines for electricity and heating from renewable energy sources

The construction of the globally-unique fully-integrated solar module factory in Frankfurt an der Oder is well on target and, as far as can be seen, will start production in the summer of 2007. More than 100 staff have been recruited for this purpose. The negotiation of contracts for the supply of silicon for 2007 and 2008, together with stages of expansion beyond 2008, are proceeding well. Because of its own production, Conergy was able to reduce the number of solar module providers from 20 to the current 8 strategic partners, and thus tighten up the range of products offered to customers through our sales channels in the current 24 countries. Sufficient quantities of solar modules for the planned growth of the core photovoltaic business in 2007 have already been secured. Alongside the range of products for the generation of electricity from solar heating, wind power or bioenergy, Conergy has now completed the product line for renewable heating systems. Through the integration of thermo-siphon and drain-back technologies, and the introduction of the own production of heat pumps, Conergy offers its customers a system for utilising solar and ground heating to fit the particular energy requirement. Conergy already expects profits during the current business year from the investments in new markets and the expansion of the production lines for solar heating, wind power and bioenergy. In addition, there are already signs that the continuing rapid growth of international trade and the fall in procurement prices in the photovoltaic sector will further raise Conergy’s capacity to compete.


Frankfurt, 30 March 2007

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Attention editorial offices: For further questions please contact Mr. Thorsten Vespermann, Conergy AG.


Anckelmannsplatz 1
20537 Hamburg
PR Department: Mr. Thorsten Vespermann
Phone: +49 (0)40 / 23 71 02-171 Fax: +49 (0)40 / 23 71 02-148
E-Mail: press@conergy.com>press@conergy.com
Internet: http://www.conergy.com



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