DGAP-News

3W Power/AEG Power Solutions reports results for Q1 2015 - Seite 4

2014: EUR45.4 million) and down 33.2% compared to Q4 2014 (EUR57.5
million). Adjusted for the aforementioned change in the product mix Q1 2015
revenue included EUR2.4 million for POC and SOLAR solutions; Q1 2014 EUR7.3
million and Q4 2014 EUR7.6 million. The revenue for core IPS business
activities in Q1 2015 was EUR36.0 million, Q1 2014 EUR34.3 million (up
4.7%) and Q4 2014 EUR49.9 million (down 28.0%). The Q4 2014 deviation is
mainly affected by the seasonal revenue pattern. Revenue recognized in the
Transportation segment is promising; all other segments are in line or just
below expectations.

Q1 2015 EBITDA came to - EUR3.4 million (Normalized EBITDA, which is EBITDA
impacted by one-time transactions, was - EUR3.7 million), compared to Q1
2014 EBITDA of EUR3.7 million (Q1 2014 Normalized EBITDA: - EUR12.9
million). The reported EBITDA for Q1 2014, however, included a EUR18.2
million one-time capital gain resulting from the sale of the POC modules
business to Advanced Energy Systems in February 2014 (Q1 2015 included
EUR1.0 million capital gain from Advanced Energy Systems).

Adjusted for this extraordinary effect in the previous year, losses have
narrowed substantially in the period under review, as positive one-time
effects of just EUR1.0 million on balance were included in Q1 2015 EBITDA.
The significant reduction in fixed operating costs deriving from the
operational restructuring measures contributed to this development. Q1 is
typically the weakest quarter of the year.

The Group's cash position on March 31, 2015 closed at EUR25.8 million,
EUR3.5 million lower than at the end of fiscal 2014.

The separate disclosure of service-related orders and revenue moreover
reveals management's objective of shaping the various services activities
into an established services business. The reason for this is that services
contribute to the defined growth objectives, independently of the defined
growth in markets. In general, services allow the Group to develop the
installed customer base and present opportunities to offer a full set of
products, especially post completion of large project transactions.

The Group is in the midst of a difficult business transformation and
development path that requires sustained effort to overcome the obstacles
and foster the structural improvements necessary to create a sustained and
profitable business. Creating a customer-facing organization that is
proactive, receptive to input and adaptive to changing commercial