Centrotherm international : takes positive stock of 2018 and decides strategic course of action for the future

centrotherm international AG, Blaubeuren, (ISIN: DE000A1TNMM9 and DE000A1TNMN7) has exceeded its targets for fiscal year 2018. Group revenue in-creased to EUR 180.0 million and exceeded the forecast range of between EUR 110 and 150 million. The Group also outperformed its forecast of breakeven in EBITDA by achieving earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 6.6 million. centrotherm significantly raised its operating result in 2018, particular-ly when compared with the previous year. Adjusted for one-off effects, EBITDA in fiscal year 2017 was still negative at around EUR -6.0 million. After tax, the centrotherm Group delivered a positive result of EUR 2.0 million.Jan von Schuckmann, Chief Executive Officer: 'The successful acceptance of major projects before the end of 2018 was a factor that enabled us to outperform our targets. Bringing these projects to a conclusion forms an important basis for the future of the centrotherm Group.' Gunter Fauth, Chief Operations Officer went on to add: 'Measures under our challenge 23 strategy concept have already contributed to im-proving earnings. We were successful in reducing costs and improving efficiency at both centrotherm international AG and at our subsidiary FHR Anlagenbau GmbH.' Positive order trend despite low investment activity in the photovoltaic industryDemand from the semiconductor and microelectronics industry was very positive in the year under review. New orders in this business unit doubled to around EUR 45 million compared with the previous year, marking the highest level of order intake from the semiconductor and microelectronics industry in the history of the company. A tempo-rary hold was put on significant investments in new production capacities for high-efficiency solar cells during the past fiscal year due to changes made in China's photo-voltaic subsidy policy in May 2018. Despite the lower order volume from the photovol-taic industry, the centrotherm Group received orders totaling EUR 88.2 million in fiscal year 2018. In the previous year, major projects had contributed to a high order intake. The order backlog as of December 31, 2018 stood at EUR 84.9 million. Launch of new innovative system generations in all business units centrotherm has established itself in the photovoltaic market with its production solu-tions for the manufacturing of PERC solar cells with efficiencies of significantly more than 22 %. A new system generation for PECVD and LPCVD processes and solar cell concepts with passivated contacts will enable solar cell manufacturers to achieve fur-ther significant increases in efficiency. In the semiconductor segment, production sys-tems with innovative automation enable customers to process 300 mm wafers in mass production. Furthermore, centrotherm has recently extended its product range with ovens for the manufacturing of high-performance fibers, examples being ceramic or carbon fibers. The c.OXI Carbon oxidization oven in particular has achieved recogni-tion in the sector thanks to its significant energy savings and substantially improved fiber quality.Jan von Schuckmann: 'With this new innovative generation of systems, we are provid-ing a very broad range of product solutions for various industries. This reinforces our technology leadership as well as our competitive capabilities on the international mar-kets.'challenge 23 strategy concept paves the way for the future centrotherm is positioning itself for the future with challenge 23 and its extensive pack-age of measures. The aim is to enhance the productivity and efficiency of production workflows. Further training for staff in preparation for a wider scope of tasks also plays an important role in building flexibility into production at the Blaubeuren location. In addition, production capacities required in the important sales market of China will be created by centrotherm Machinery Kunshan newly established in 2018. The cen-trotherm technology group can generate valuable cost advantages through manufac-turing components in China and through the global purchasing of parts. In addition, delivery times that represent a significant and also decisive factor in the awarding of contracts are shortened.'Along with our innovative capability, expanding our presence in China is very signifi-cant in strategic terms. On the one hand we are closer to our customers. On the other, we have a good basis for holding our own as a German company against the competi-tion in the sales market of China that is so important to us. Our technology expertise and Research & Development remain in Blaubeuren. Critical and sensitive system components such as the process modules will be produced here,' Gunter Fauth em-phasizes. Outlook for the current fiscal year 2019The Management Board considers the centrotherm Group to be technologically well equipped to serve market requirements. This is also emphasized by a major order worth more than EUR 40 million that was placed with centrotherm in mid-February 2019. In fiscal year 2019, the Management Board anticipates that all sectors will gen-erally perform well. Owing to large-scale projects that will largely only impact revenue in 2020, the revenue target for the centrotherm Group has been set between EUR 90 and 150 million in fiscal year 2019. Due to high price- and competitive pressure, in particular in the photovoltaic industry, breakeven through to positive EBITDA is ex-pected for the Group.Note: The full report for the financial year 2018 is available in German for downloading from our website under the Investor Relations heading.

About centrotherm international AG

centrotherm has been developing and realizing innovative thermal solutions for more than 70 years. As a leading, globally active technology group, we offer production solutions for the photovoltaic, semiconductor and microelectronics industries.

The continuous further development of our successful solutions in thermal processing and coating, such as for crystalline solar cell and semiconductor manufacturing, forms the basis for successful partnerships with industry, research and development.

Our customers worldwide appreciate the process stability, scalability and availability of our production systems in mass production. Our work is also distinguished by the fact that we create specific, high-end process technology solutions tailored to our customers' requirements, and that we are outstanding in system construction.

Together, we face the daily challenges of setting new trends, maximizing production efficiency (such as for solar cells and semiconductors), and - paired with our systems' durability - securing investments.

We thereby generate sustainable competitive advantages for our customers through targeted innovations in processes and production solutions.

We engage around 650 employees worldwide to further develop high-tech solutions for key markets.

centrotherm international AG
Württemberger Str. 31
89143 Blaubeuren
Internet: www.centrotherm.de
German Securities Identification Number (WKN): A1TNMM (bearer shares); A1TNMN (unlisted shares from the non-cash capital increase)
ISIN: DE000A1TNMM9 (bearer shares); DE000A1TNMN7 (unlisted shares from the non-cash capital increase)
Inclusion: Basic Board, Frankfurt Stock Exchange
Corporate domicile: Germany

Contact:

Nathalie Albrecht
Manager Public & Investor Relations
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