Ad-hoc release: Phoenix Solar AG releases preliminary figures for the financial year 2010 and announces dividend payment

- Highest revenues and best EBIT in the history of the company
- Share of international business leaps to 26 percent
- Proposal for dividend payment of EUR 0.35 per share


Sulzemoos - Based on preliminary figures, Phoenix Solar AG, a leading international photovoltaic system integrator listed on the German TecDAX, closed the financial year 2010 with the highest revenues and the best earnings before taxes (EBIT) in the history of the company. Consolidated revenues came to EUR 635.7 million and EBIT stood at EUR 36.4 million. The international share of revenues leapt from 5.8 percent in 2009 to 25.9 percent. A new record was also set for the sale of modules: Based on a peak power of 313 megawatt (MWp), 55 percent more solar modules were sold through the two sales channels of Components & Systems and Power Plants than in 2009.


Unscheduled curtailment of feed-in tariffs and the early onset of winter determined demand

The performance of the company, especially in the first half-year, was characterised by strong domestic demand, as the feed-in tariffs for photovoltaic electricity in Germany were subject to unscheduled curtailments on 1 July and 1 October additional to the regular reduction in remuneration. In the second half of the year, international business gained significant momentum and contributed around 44 percent to total revenues. The early and severe onset of winter already by late November in Europe caused demand to decline and revenues to fall short of expectations in the fourth quarter.


Revenues grow by more than one third

Total revenues climbed by 34.4 percent to EUR 635.7 million in the financial year 2010 (2009: EUR 473.0 million). Phoenix Solar AG\'s international business developed exceptionally well. In the year under review, revenues from international business rose by almost 500 percent to EUR 164.5 million, up from EUR 27.6 million in 2009, and achieved a share in total revenues of 25.9 percent.


Business dominated by Components & Systems

The Components & Systems segment, which contributed a share of 58 percent to revenues, dominated business. All in all, this segment grew by 23.2 percent, from EUR 299.0 million in 2009 to EUR 368.5 million in the financial year 2010. The Power Plants segment developed even more positively, delivering a growth of 53.6 percent and generating total revenues of EUR 267.2 million (2009: EUR 174.0 million). It achieved a share in revenues of 42 percent.


Increase in earnings

Based on preliminary figures, EBIT amounted to EUR 36.4 million (2009: EUR 12.2 million). In comparison to the previous year, the earnings situation has improved significantly: In the financial year 2010, the EBIT margin (ratio of EBIT to revenues) climbed to 5.7 percent, up from 2.6 percent in 2009. EBIT in the Components & Systems segment stood at EUR 28.1 million and the EBIT margin at 7.6 percent. The Power Plants segment delivered an EBIT of EUR 8.3 million and an EBIT margin of 3.1 percent.

The preliminary consolidated profit after tax almost trebled during the period under review and came to EUR 24.0 million compared with EUR 8.6 million on 31 December 2009. Earnings per share therefore came to EUR 3.42 (2009: EUR 1.28).

As per 31 December 2010, the equity ratio stood at 45.4 percent (2009: 53.4 percent).


Order situation

On 1 January 2011, the order book came to EUR 209 million (2009: EUR 296 million). Of this amount, EUR 46 million was attributable to the Components & Systems segment and EUR 163 million to the Power Plants segment. Adjusted for work in progress, orders on hand totalled EUR 93 million (1 January 2010: EUR 234 million).


Development anticipated in the year 2011

Based on the strong growth in the year 2010, the Executive Board of Phoenix Solar AG anticipates stagnation in the global market in the current financial year. The German market was once again global leader in 2010 but is likely to have reached its maximum market volume, which leads the Executive Board of Phoenix Solar AG to assume that market volume will decline from 2011 onwards.


Executive Board proposes dividend payment

Based on the preliminary 2010 figures, the Executive Board has taken the decision today to propose to the Annual General Meeting of Shareholders that a dividend of EUR 0.35 per share be paid for the financial year 2010 (2009: EUR 0.20). This resolution is subject to the adoption of the annual financial statements for the financial year 2010 and approval by the Supervisory Board.

The 2010 Annual Report with a complete set of consolidated financial statements will be published in electronic form on 18 April 2011 and can be downloaded from the company\'s website at www.phoenixsolar.com under the headings \"Investor Relations\", \"Financial Reports\".

Overview of the preliminary figures as per 31 December 2010

		2010	2009	Change
Volume	MW	313	202	55 %
Total revenues	€ m	635.7	473.0	34.4 %
Components & Systems segment	€ m	368.5	299.0	23.2 %
Power Plants segment	€ m	267.2	174.0	53.6 %
International sales	€ m	164.5	27.6	496.0 %
EBIT	€ m	36.4	12.2	198.4 %
Consolidated profit	€ m	24.0	8.6	179.1 %
Earnings per share	€	3.42	1.28	167.2 %

This is an English translation of the German original. Only the German version is binding.


Disclaimer

The content of this press release is solely for information purposes and is not intended to constitute a recommendation for investment or a solicitation to subscribe or an offer to buy or sell securities of the company. Phoenix Solar AG shall undertake no liability whatsoever for any loss in connection with this press release or the information made available. This also applies particularly to any eventual loss in connection with the shares of Phoenix Solar AG.

This document contains forward-looking statements on future developments which are based on management’s current assessment. Words such as \"anticipate\", \"assume\", \"believe\", \"estimate\", \"expect\", \"intend\", \"can/could\", \"plan\", \"project\", \"forecast\", \"should\", and similar terms are indicative of such forward-looking statements. Such statements are subject to certain risks and uncertainties which are mainly outside the sphere of influence of Phoenix Solar AG, but which have an impact on the business activities, the success, the business strategy and the results. These risks and factors of uncertainty include, for instance, climatic change, changes in the state subsidisation of photovoltaics, the introduction of competitor products or technologies of other companies, the development of the planned internationalisation of business activities, fierce competition as well as rapid technological change in the photovoltaic market. If one of these or other factors of uncertainty or risks should occur, or if the assumptions underlying the statements should prove incorrect, the actual results may diverge substantially from the results in these statements or implicit indications. Phoenix Solar AG does not have the intention nor will it undertake any obligation to realise forward-looking statements on an ongoing basis or at a later point in time as this is entirely dependent on circumstances prevailing on the day of their release.

In some countries, especially in the United States of America, the dissemination of this press release and the information contained therein may be restricted or prohibited under the law. This press release is therefore expressly not intended for persons resident in the United States of America or any other legal system under which such an offer or solicitation is not permissible, or for persons for whom such an offer or invitation would constitute a breach of the law.



Sulzemoos, 15 March 2011


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Attention editorial offices: For further questions please contact Mrs.
Anka Leiner, Investor Relations Phoenix Solar AG.

Hirschbergstr. 8
D-85254 Sulzemoos
Tel: 08135-938-315
Fax: 08135-938-399
E-mail: a.leiner@phoenixsolar.de
Internet: http://www.phoenixsolar.de

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