DGAP-News: 3W Power S.A. / AEG Power Solutions / Key word(s): 9-month figures/Quarter Results
3W Power S.A. / AEG Power Solutions: 3W Power/AEG Power Solutions reports results for 9M and Q3 2017

16.11.2017 / 08:46
The issuer is solely responsible for the content of this announcement.


November 16, 2017

3W Power/AEG Power Solutions reports results for 9M and Q3 2017
 

  • Order intake, revenue conversion and profits still reflect the disruption to business operations and associated impacts from the protective shield proceedings in the group's largest entity, AEG PS GmbH in Germany
  • Situation improved in September which accounted for 44% of Q3 orders and 40% of Q3 revenue
  • Industry wide shortage of some key components impacted the business; the company has implemented mitigating actions
  • Company secured EUR5 million short term working capital financing
  • Third party expert restructuring opinion nearing completion; negotiation of final financial restructuring measures with key stake holders underway


Luxembourg / Zwanenburg, The Netherlands - November 16, 2017.  3W Power S.A. (ISIN LU1072910919, WKN A114Z9), the holding company of AEG Power Solutions Group, a global provider of UPS systems and power electronic solutions for industrial, commercial, renewable and distributed energy markets, today announced its results for the first 9 months (9M) and Q3 2017. The figures include full consolidation of AEG PS GmbH for 2017.

 

Group results*

(in Euro million)9M 20179M 2016? in %Q3 2017Q3 2016? in %
Order backlog 96.0 94.1 2.0% 96.0 94.1 2.0%
Orders 117.9 134.3 -12.2% 33.5 39.6 -15.6%
Revenue 100.3 119.0 -15.7% 33.3 39.3 -15.4%
Book to Bill 1.18 1.13 4.2% 1.01 1.01 -0.3%
EBITDA 8.0 (0.5)   (10.8)** (1.6)  
EBITDA margin 8.0% -0.4%   -32.4% -4.0%  
Normalized EBITDA (8.8) (4.3)   (2.2) (0.6) -
Normalized EBITDA margin -8.8% -3.6%   -6.7% -1.5%  
 

*Q3 and 9M figures include full consolidation of AEG PS GmbH
**Q3 EBITDA includes a correction to insolvency gains as part of the reconsolidation of the German entity (EUR 7.6m); YTD EBITDA confirmed as EUR 8.0m positive

AEG Power Solutions finished 9M 2017 with EUR117.9 million in orders (down 12.2% yoy) and EUR100.3 million in revenue (down 15.7% yoy). For 9M 2017, Products accounted for EUR74.9 in orders and EUR63.6 million in revenues. Services accounted for EUR43 million in orders and EUR36.7 million for revenues. Order intake, sales and profit improved towards quarter end, with September accounting for 44% of Q3 orders and 40% of Q3 revenue. Q4 revenue projections show an improvement on Q3.


Business was impacted by an industry wide shortage of certain key electronic components is impacting the supply chain. The company implemented mitigating measures including stocking policies and changes in design to reduce dependencies.


Management's focus was still on overcoming the disruption to business operations and associated impacts from the protective shield proceedings in the group's largest entity, AEG PS GmbH in Germany, which supplies to markets and customers worldwide.


Normalized EBITDA for Q3 2017 was EUR-2.2 million compared to EUR-6.6 million in the first half of 2017. Despite the shortfall in revenue, the result shows improvement in margin and costs.
 

Industrial Products and Services (IPS)*

(in Euro million)9M 20179M 2016? in %Q3 2017 Q3 2016? in %
Order backlog 96.0 94.1 2.0% 96.0 94.1 2.0%
Orders 117.9 134.3 -12.2% 33.5 39.6 -15.6%
Revenue 100.3 119.0 -15.7% 33.3 39.3 -15.4%
Book to Bill 1.18 1.13 4.2% 1.01 1.01 -0.3%
EBITDA 12.1 2.6   (8.8)** (0.4)  
EBITDA margin 12.1% 2.2%   -26.5% -0.9%  
Normalized EBITDA (5.3) (1.3) - (1.0) 0.4  
Normalized EBITDA margin -5.3% -1.1%   -3.0% 1.0%  
 

*Q3 and 9M figures include full consolidation of AEG PS GmbH
**Q3 EBITDA includes a correction to insolvency gains as part of the reconsolidation of the German entity (EUR 7.6m); YTD EBITDA confirmed as EUR 8.0m positive

Q3 2017 Normalized EBITDA for IPS was EUR-1.0 million, compared to EUR-4.3 million for the first half 2017.
 

Orders by geographical area (Quarterly comparison)*

(in Euro million)9M 20179M 2016? in %Q3 2017Q3 2016? in %
Orders

Europe excl. Germany
52.0 61.0 -14.8% 12.9 15.1 -14.6%
Germany 28.0 29.0 -3.4% 7.7 10.0 -23.0%
Asia 19.2 25.2 -23.8% 6.7 8.1 -17.3%
Africa/Middle East 15.0 15.8 -5.0% 5.5 4.9 12.2%
Rest of the world 3.7 3.4 8.8% 0.7 1.5 -53.3%
Order total117.9134.3-12.2%33.539.6-15.4%
Of which Products 74.8 91.8 -18.5% 21.3 26.7 -20.2%
Of which Services 43.1 42.6 1.1% 12.2 13.0 -6.2%
 

*Q3 and 9M figures include full consolidation of AEG PS GmbH

 

Revenue by geographical area (Quarterly comparison)*

(in Euro million)9M 20179M 2016? in %Q3 2017Q3 2016? in %
Revenue
Europe excl. Germany
46.0 46.9 -1.9% 15.3 15.7 -2.5%
Germany 21.9 26.2 -16.4% 7.5 9.0 -16.6%
Asia 17.1 25.7 -33.5% 6.7 8.2 -18.3%
Africa/Middle East 12.5 17.2 -27.3% 3.0 6.0 -50.0%
Rest of the world 2.8 3.0 -6.7% 0.8 0.4 100.0%
Revenue total100.3 119.0-15.7%33.339.3-15.3%
Of which Products 63.7 83.7 -23.9% 19.7 27.3 -27.8%
Of which Services 36.6 35.5 3.1% 13.6 12.0 13.3%
 

*Q3 and 9M figures include full consolidation of AEG PS GmbH
 

The business in Europe generally performs except for the direct German business into Eastern Europe and Asia. A continued weakness of the Oil and Gas industry impacted the business in Asia, Africa and the Middle East. Service grew by 13.3% Q3 2017 on Q3 2016.


On September 5, 2017 the company issued an ad hoc with the intention to take a final step in its financial restructuring by obtaining a third party restructuring opinion. The opinion is nearing completion and will outline measures to restructure the balance sheet leading to reduced debt and to improve the ability to grow profitably. To achieve this, 3W Power S.A. and key stakeholders entered into a non-binding memorandum of understanding outlining key elements and next steps as well as pre-requisites to provide additional capital. On October 11, 2017 the company secured a EUR5 million bridge facility to finance short term working capital needs.


The restructuring opinion is expected to be completed by the end of November 2017 and shall serve as a base for negotiating balance sheet restructuring agreements. The Board of 3W Power S.A. assumes that the required measures can be implemented, and will closely monitor and assess the balance sheet restructuring process going forward.


The company launched the next generation UPS systems Protect Plus M400 and M600 which are modular and provide one of the lowest total cost of ownership factors in its class. To strengthen its position in the light industrial marketplace, the company introduced its new Protect Flex solution that will provide access to new market opportunities.

 

Outlook
With new UPS products and services, a lower fixed cost base and better execution, the Company expects to see improved business. Demand for AEG PS products and services continues and there is an ever growing need for the power conversion products and solutions within the areas of critical infrastructure and energy storage that the company serves.


 

For further enquiries please contact:

Christian Hillermann
Hillermann Consulting
Investor Relations for 3W Power/AEG Power Solutions
Tel.: +49 40 320 279 10
Email: investors@aegps.com

 

This communication does not constitute an offer or the solicitation of an offer to buy, sell or exchange sany securities of 3W Power. This communication contains forward-looking statements which include, inter alia, statements expressing our expectations, intentions, projections, estimates, and assumptions. These forward-looking statements are based on the reasonable evaluation and opinion of the management but are subject to risks and uncertainties which are beyond the control of 3W Power and, as a general rule, difficult to predict. The management and the company cannot and do not, under any circumstances, guarantee future results or performance of 3W Power and the actual results of 3W Power may materially differ from the information expressed or implied in the forward-looking statements. As a result, investors are cautioned against relying on the forward-looking statements contained herein as a basis for their investment decisions regarding 3W Power. 3W Power undertakes no obligation to update or revise any forward-looking statement contained herein.



16.11.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: 3W Power S.A. / AEG Power Solutions
19, rue Eugène Ruppert
L-2453 Luxemburg
Luxemburg
Phone: +31 20 4077 800
Fax: +31 20 4077 801
Internet: www.aegps.com
ISIN: LU1072910919
WKN: A114Z9
Listed: Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Munich, Tradegate Exchange

 
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629965  16.11.2017 

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