DGAP-News: 3W Power S.A. / AEG Power Solutions / Key word(s): Half Year Results 3W Power S.A. / AEG Power Solutions: 3W Power/AEG Power Solutions reports results for first half year and Q2 2016 11.08.2016 / 12:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - H1 2016 orders EUR94.7 million, 13.3% like-for-like growth 1.19 book to bill ratio - Revenue EUR79.7 million, -1% like-for-like - Normalized EBITDA -EUR3.7 million, a 19.6% improvement vs H1 2015, Q2 close to break even at EUR-0.1 million - Fixed cost reduction program on track and results beginning to show Luxembourg / Zwanenburg, The Netherlands - August 11, 2016. 3W Power S.A. (ISIN LU1072910919, 3W9K), 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 first half year (H1) and Q2 2016. Group results *

(in Euro million) H1 2016    H1 2015   Δ in %    Q2 2016    Q2 2015  Δ in %
Order backlog        95.3       87.6     8.8      95.3       87.6      8.8
Orders               94.7       86.9     8.9      43.1       43.6     -1.0
Revenue              79.7       84.1    -5.2      42.6       45.7     -6.9
Book to Bill         1.19       1.03              1.01       0.95
EBITDA                1.1      (4.8)   122.4       0.7      (1.4)    148.6
EBITDA margin        1.3%      -5.7%              1.6%      -3.0%
Normalized          
EBITDA              (3.7)      (4.6)    19.6     (0.1)      (0.9)     89.5
Normalized          
EBITDA margin       -4.7%      -5.5%             -0.2%      -1.9%

Industrial Products and Services (IPS) *

(in Euro million) H1 2016   H1 2015    Δ in %   Q2 2016   Q2 2015    Δ in %
Order backlog      95.3      87.6        8.8      95.3      87.6      8.8
Orders             94.7      86.9        8.9      43.1      43.6     -1.0
Revenue            79.7      84.1       -5.2      42.6      45.7     -6.9
Book to Bill       1.19      1.03                 1.01      0.95
EBITDA              3.0     (2.7)                  5.9     (1.3)
EBITDA margin      3.7%     -3.3%                13.8%     -2.9%
Normalized        
EBITDA            (1.6)     (2.5)                  1.0       0.2
Normalized       
EBITDA margin     -2.1%     -2.9%                 2.3%      0.5%

Unallocated *

(in Euro million) H1 2016   H1 2015    Δ in %    Q2 2016    Q2 2015  Δ in %
EBITDA              (1.9)    (2.0)      6.0       (5.2)      (0.0)
Normalized          (2.1)    (2.1)                (1.1)      (1.1)
EBITDA

Orders by geographical area (Quarterly comparison) *

(in Euro million)   H1 2016    H1 2015  Δ in %   Q2 2016   Q2 2015   Δ in %
Orders
Europe excl.           
Germany                45.8      39.1      17.1      18.3      19.2    -4.7
Germany                19.0      20.0      -5.0       9.3      11.0   -15.5
Asia                   17.1      18.2      -6.0       9.1      10.4   -12.5
Africa/Middle East     10.9       8.2      32.9       5.9       2.2   168.2
Rest of the world       1.9       1.4      35.7       0.6       0.7   -14.3
Order total            94.7      86.9       9.0      43.2      43.5    -0.7
Of which Products      65.1      57.3      13.6      29.5      27.6     6.9
Of which Services      29.6      29.6       0.0      13.7      15.9   -13.8
(like-for-like)
Of which Products      64.8      56.0      15.7      29.5      27.1     8.9
Of which Services      29.0      26.8       8.2      13.7      14.2    -3.5

Revenue by geographical area (Quarterly comparison) *

(in Euro million)     H1 2016   H1 2015  Δ in %   Q2 2016   Q2 2015  Δ in %
Revenue
Europe excl.             
Germany                 31.2      31.0     0.6      18.2      16.4     11.0
Germany                 17.2      21.6   -20.4       9.4      11.5    -18.3
Asia                    17.5      16.3     7.4       8.5      10.4    -18.3
Africa/Middle East      11.2      13.0   -13.8       5.7       6.7    -14.9
Rest of the world        2.6       2.2    18.2       0.8       0.7     14.3
Revenue total           79.7      84.1    -5.2      42.6      45.7     -6.8
Of which Products       56.4      58.8    -4.1      30.0      32.3     -7.1
Of which Services       23.3      25.3    -7.9      12.6      13.4     -6.0
(like-for-like)
Of which Products       56.3      57.5    -2.1      30.0      31.7     -5.4
Of which Services       23.0      22.8     0.9      12.6      11.8      6.8

- All numbers are rounded to millions. AEG Power Solutions finished H1 2016 with EUR94.7 million in orders and EUR79.7 million in revenue. Compared to H1 2015, orders were up 8.9% (H1 2015: EUR86.9 million) and revenue was down 5.2% (H1 2015: EUR84.1 million). Revenue recognition in the second quarter was affected by industrial actions in the French affiliate regarding the 2015 restructuring plan and the new work conditions to be implemented from September 1, 2016. These and other actions had a EUR3 million impact on recognized revenues for the quarter. On a like-for-like basis (excluding orders and sales from Fluxpower GmbH and Primetech s.r.l., which were sold on February 5, 2016), orders in services for H1 2016 were EUR29.0 million up 8.2% (H1 2015: EUR26.8 million) and orders for products were EUR64.8 million up 15.7% (H1 2015: EUR56.0 million). Revenue for services for H1 2016 were EUR23.0 million up 0.9% compared to H1 2015 (H1 2015: EUR22.8 million) and revenue for products were EUR56.3 million slightly down 2.1% (H1 2015: EUR57.5 million). The Group continues to establish a growing order backlog in H1 2016 reaching EUR95.3 million, up 8.8% compared to H1 2015 (H1 2015: EUR87.6 million). The backlog is diversified and generally healthy which should lead to revenue growth in the coming quarters. Group EBITDA for H1 2016 was EUR1.1 million compared to H1 2015 EBITDA of - EUR4.8 million. Improvement in EBITDA is primarily driven by the capital gain following the sale of Fluxpower and Primetech and the achieved savings in the overall operating expenses. Normalized EBITDA for H1 2016, which is EBITDA adjusted for one-time transactions was -EUR3.7 million, a 19.6% improvement compared to previous half year (H1 2015: -EUR4.6 million) while Q2 2016 Normalized EBITDA was -EUR0.1 million, a 97.5% improvement compared to the previous quarter (Q1 2016: -EUR3.6 million). The Group's cash position was EUR22.9 million as at 30 June 2016, compared to EUR23.4 million as at June 30, 2015. The Group is in the process of changing its structure from a product driven model towards a business focused on markets, customers and the services they require. In addition to focusing on the core critical infrastructure business activities for both Industrial and Data & IT, there continues to show tremendous promise in new emerging areas of energy storage and grid management. There is an observable shift towards EPC's based in the Middle East/Far East including China vs traditional western participants. Despite challenging market conditions, the company benefits from good diversification both in terms of product offering and geographic reach which contributes to a certain stability. Outlook The Group expects to achieve modest growth in its industrial activities in 2016. The medium term objective remains that of achieving double-digit revenue growth and an EBITDA margin approaching 10%. The Group expects further improvement in margins in the remainder of the year, with both like-for-like growth in 2016 and improved profitability as savings from the completion of restructuring plans and other cost-cutting measures take full effect. As announced in Q3 2015, the Group expects savings in its fixed- cost. Those cost savings began to take effect in Q2 2016, with EUR3.0 million realized to date. More savings will gain traction in the forthcoming Q3, and the remaining measures in Q4. For further enquiries please contact: Christian Hillermann Hillermann Consulting Investor Relations for 3W Power/AEG Power Solutions Tel.: +49 40 320 279 10 Email: [email protected] --------------------------------------------------------------------------- 11.08.2016 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: 3W Power S.A. / AEG Power Solutions 19, rue Eugène Ruppert L-2453 Luxemburg Grand Duchy of Luxembourg Phone: +31 20 4077 800 Fax: +31 20 4077 801 E-mail: [email protected] Internet: www.aegps.com ISIN: LU1072910919, DE000A1A29T7, WKN: A114Z9 , A1A29T, Listed: Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Munich, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 491709 11.08.2016