Solar Millennium again achieves significant gains in turnover and results

• Group turnover up by 75% to 31.15 million euros
• 18% improvement in annual surplus after tax to 11.87 million euros
• Consistent implementation of growth strategy as planned
   
  

Erlangen/Munich, 14.02.2008 Solar Millennium (ISIN DE0007218406) presents its consolidated balance sheet for the 2006/2007 fiscal year at a financial statement press conference in Munich today. The group has again achieved significant increases in both turnover and results for the year ending 31 October 2007.

Sales according to the International Financial Reporting Standards (IFRS) rose some 75 percent from around 17.83 million euros the previous year to 31.15 million euros. The annual surplus after tax rose by approximately 18 percent from 10.08 million euros to around 11.87 million euros. These results match the planning parameters and equate to a profit per share of 1.20 euros.

The progress of projects in Spain made a particular contribution to the positive results and turnover development of the past fiscal year. In addition to part invoices for project developments, the conclusion of the financing and the final invoicing for the project development services for the Andasol 2 solar power plant also contributed to the profit increase. The group also benefited from technology subsidiary Flagsol's increasing order volumes where the focus of operational activities in the past fiscal year was on the supply of engineering and controls for the first parabolic trough power plants Andasol 1 and 2.

Solar Millennium was also able to generate appreciable sales in the project financing segment with the inclusion of the Portuguese EDP group in two Spanish projects and the sale of 50 percent of the shares in the respective project companies. In addition, there was the sale of shares in the Andasol 2 power plant company amounting to 25 percent to a holding company.

MAN Solar Millennium GmbH was founded in May 2007 to grow the power plant construction segment. This joint venture is expected to make its first contribution to the planned significant increase in group turnover and results during the current fiscal year. The board intends consistent further implementation of its strategy for growth and Solar Millennium will shortly be undertaking a cash capital increase for the purpose of financing further expansion within the scope of the existing business model.

Business developments in the first months of the current fiscal year match expectations. The implementation of the Spanish solar power plants is progressing according to plan. Andasol 1, the first parabolic trough power plant in Europe and, with over 510,000 square meters of collector space, the largest solar power plant in the world, will be connected to the grid in the summer of this year. The conclusion of the financing for and the start of the construction of both Andasol 3 and a further power plant in Spain are planned for the current fiscal year. The development of further projects in Spain and the USA are in line with overall expectations. The group is accelerating its project development activity in further countries in the earth’s Sun Belt as part of its move towards increased internationalization.

Orders for Solar Millennium’s subsidiary Flagsol are also progressing according to plan. The technology company is providing engineering services for the Andasol power plants currently under construction, for the compilation of a feasibility study for the construction of the first parabolic trough power plant in China, as well as for the implementation and layout of a solar field for a hybrid power plant – the first of its kind in Egypt. The group is investing in research and development in order to further develop its leading technology position, with a new generation of highly-efficient collectors having been developed, for example. The sale of shares in completed project developments and/or the invoicing thereof are planned for the project financing segment. In the power plant construction segment the board anticipates the commissioning of MAN Solar Millennium with two own power plant projects as well as with one project for third parties.

Christian Beltle, Chairman of the Solar Millennium Board, is convinced: “Solar thermal power plants are on the threshold of above-average growth in the booming renewable energy market. With our leading position in parabolic trough technology we are able to play a decisive role in this development and to thus contribute to sustainable energy supplies in many countries around the world. We are therefore continuing to implement our strategy for growth on a consistent basis.” Thomas Mayer, Solar Millennium’s Chief Financial Officer, adds: “Solar Millennium has adopted a targeted approach to the continual expansion of its company activities. It has an outstanding reputation on the world market and with the positive market developments, the increasing number of projects, and the further development of our technology, we are going to be continuing our positive turnover and results development on a consistent basis.”

The annual report together with the group’s 2006/2007 balance sheet can be downloaded here.

About Solar Millennium AG:
Solar Millennium AG, Erlangen, is a globally active company in the renewable energy sector, with its main focus on solar thermal power plants. Together with its subsidiaries, Solar Millennium specializes in parabolic trough power plants - a reliable, proven technology in which the company is a worldwide leader. The company covers all major business sectors of the value-added chain for solar thermal power plants, from project development to technology and turn-key construction of power plants, to the operation and ownership of power plants. In Spain, Solar Millennium developed Europe's first ever parabolic trough power plants, two of which are already under construction. Further projects are planned with a capacity of several hundred Megawatts located worldwide, with the focus upon Spain, the USA, China and North Africa. The company is also developing solar chimney power plants, with the aim of making this technology ready for the market.

About the technology:
Solar thermal power plants generate electricity using heat energy captured from solar radiation. In a parabolic trough power plant, trough-shaped mirrors concentrate the sun’s rays onto a pipe in the focal line of the collector. Their absorption heats a transfer fluid in the pipe, generating steam in the power block by way of heat exchange. As with conventional power plants, the steam is utilized in a turbine to generate power, and by integrating thermal storage, this power can be supplied on demand. Thus, solar power plants can also generate electricity after sunset.

You can download the press release here.