DGAP-News: 3W Power S.A. / AEG Power Solutions / Key word(s): 9-month figures 3W Power S.A. / AEG Power Solutions: 3W Power/AEG Power Solutions reports results for 9M and Q3 2016 10.11.2016 / 12:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Order intake for 9M EUR134.3m, a slight increase year on year, but weak in Q3 - Revenue for 9M EUR119m, close to last year period on a like-for-like basis - Fixed cost reduction program on track - Solid order intake for services on a like-for-like basis. Luxembourg / Zwanenburg, The Netherlands - November 10, 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, announced today its results for first 9 Months (9M) and Q3 2016. Group results*

(in EUR            9M 2016   9M 2015  Δ in %   Q3 2016     Q3 2015  Δ in %
million)            
Order backlog        94.1       97.2  -3.2%       94.1       97.2    -3.2%
Orders              134.3      137.2  -2.1%       39.6       50.3   -21.2%
Revenue             119.0      126.3  -5.8%       39.3       42.2    -6.9%
Book to Bill         1.13       1.09   3.9%       1.01       1.19   -15.4%
EBITDA              (0.5)      (7.4)  93.4%      (1.6)      (2.6)    40.2%
EBITDA margin       -0.4%      -5.8%             -4.0%      -6.2%
Normalized          (4.3)      (4.5)     na      (0.6)        0.1      na
EBITDA
Normalized          -3.6%      -3.6%             -1.5%       0.2%
EBITDA margin

Industrial Products and Services (IPS)*

(in EUR           9M 2016    9M 2015  Δ in %    Q3 2016    Q3 2015   Δ in %
million)
Order backlog        94.1       97.2   -3.2%       94.1       97.2    -3.2%
Orders              134.3      137.2   -2.1%       39.6       50.3   -21.2%
Revenue             119.0      126.3   -5.8%       39.3       42.2    -6.9%
Book to Bill         1.13       1.09    3.9%       1.01       1.19   -15.4%
EBITDA                2.6      (4.4)  158.8%      (0.4)      (1.7)    78.2%
EBITDA margin        2.2%      -3.5%              -0.9%      -4.0%
Normalized          (1.3)      (1.5)   18.6%        0.4        0.9   -58.7%
EBITDA
Normalized          -1.1%      -1.2%               1.0%       2.2%
EBITDA margin

Unallocated*

(in EUR million)  9M 2016    9M 2015  Δ in %    Q3 2016    Q3 2015   Δ in %

EBITDA              (3.1)      (2.9)  -5.4%      (1.2)      (0.9)    -31.0%
Normalized          (3.0)      (3.0)  -1.1%      (1.0)      (0.9)    -12.3%
EBITDA

Orders by geographical area (Quarterly comparison)*

(in EUR million)   9M 2016    9M 2015    Δ in %   Q3 2016   Q3 2015  Δ in %
Orders
Europe excl.            
Germany              61.0       56.3       8.4%     15.1      17.1   -12.2%
Germany              29.0       30.9      -6.1%     10.0      10.9    -8.2%
Asia                 25.2       28.1     -10.3%      8.1      10.0   -19.0%
Africa/Middle East   15.8       19.3     -18.1%      4.9      11.1   -55.9%
Rest of the world     3.4        2.6      30.8%      1.5       1.2    25.0%
Total orders        134.3      137.2      -2.1%     39.6      50.3   -21.3%
thereof products     91.8       93.6      -1.9%     26.7      36.3   -26.5%
thereof services     42.6       43.6      -2.3%     13.0      14.0    -7.1%

(like-for-like)**

  
Of which Products    91.5       91.3       0.2%     26.7      35.3   -24.4%
Of which Services    42.0       39.3       6.9%     13.0      12.6     3.2%

** like-for-like : excluding orders and sales from Fluxpower GmbH and Primetech s.r.l., which were sold on February 5, 2016. Revenue by geographical area (Quarterly comparison)*

(in EUR million)   9M 2016    9M 2015    Δ in %   Q3 2016   Q3 2015  Δ in %
Revenue
Europe excl.            
Germany             46.9        46.8     0.21%      15.7      15.7     0.0%
Germany             26.2        32.4    -19.1%       9.0      10.9   -17.4%
Asia                25.7        23.2     10.8%       8.2       6.9    18.8%
Africa/Middle East  17.2        20.9    -17.7%       6.0       8.0   -25.0%
Rest of the world    3.0         3.0      0.0%       0.4       0.7   -42.9%
Total revenue      119.0       126.3     -5.8%      39.3      42.2    -6.9%
thereof products    83.7        87.4     -4.2%      27.3      28.6    -4.6%
thereof services    35.5        38.9     -8.7%      12.2      13.6   -10.3%

(like-for-like)**

Of which Products   83.6        85.4     -2.1%      27.3      28.0    -2.5%
Of which Services   35.2        35.1      0.3%      12.2      12.3     0.8%

- All numbers are rounded to millions. AEG Power Solutions finished 9M 2016 with EUR134.3 million in orders and EUR119.0 million in revenue. Compared to 9M 2015, orders were slightly down 2.1% (9M 2015: EUR137.2 million) and revenue was down 5.8% (9M 2015: EUR126.3 million). Order recognition in the last quarter was affected by continued weakness in capital investment in Oil & Gas markets. The Middle East decreased 55.9% compared to Q3 2015. The company experienced project delays, notably in the United Kingdom as a result of the UK's decision to leave the EU as indicated in the referendum held in late June 2016. 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 9M 2016 were EUR42.0 million, a 6.9% increase (9M 2015: EUR39.3 million) and orders for products were EUR91.5 million, a 0.2% increase (9M 2015: EUR91.3 million). Revenue for services for 9M 2016 were EUR35.2 million up 0.3% (9M 2015: EUR35.1 million) and revenue for products EUR83.6 million slightly down 2.1% (9M 2015: EUR85.4 million). The Group has a stable order backlog in 9M 2016 reaching EUR94.1 million, slightly down 3.2% compared to 9M 2015 (9M 2015: EUR97.2 million). The backlog is diversified and generally healthy which should help revenue generation in the last quarter of 2016. Group EBITDA for 9M 2016 was -EUR0.5 million compared to 9M 2015 EBITDA of -EUR7.4 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 9M 2016, which is EBITDA adjusted for one-time transactions was -EUR4.3 million, a 5.6% increase (9M 2015: -EUR4.5 million) while Q3 2016 Normalized EBITDA was - EUR0.6 million slightly down compared to Q3 2015 (Q3 2015: EUR0.1 million) albeit with lower revenues. The Group cash position was EUR15.4 million as at 30 September 2016, an utilization of EUR7.3 million compared to EUR22.9m at June 30, 2016; interest payment of EUR1.3m, restructuring payments of EUR2.0m and working capital utilization of EUR3.9m were the main areas of outflow. The company is actively pursuing multiple options to ensure adequate short and medium term liquidity and to implement longer term refinancing plans for its debt. The company's ability to grow and to achieve positive cash flow is dependent in part on lower financing costs, the normalization of working capital and additional cash investment. The Group is in 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 and continued weakness in Oil & Gas, the company benefits from good diversification both in terms of product offering and geographic reach which contributes to a certain stability. Outlook The challenge to grow in Q3 means that the group will not achieve like for like growth year on year. The medium term objective remains that of achieving double-digit revenue growth and an EBITDA margin approaching 10%. The Group expects better margins and savings from the completion of restructuring plans and other cost-cutting measures take full effect. The Group expects savings in its fixed-cost. Those savings continued to take effect in Q3 2016, with EUR4.9 million realized to date. More savings will gain traction in the forthcoming quarter (Q4 2016). Furthermore, the Group continues to invest in their ability to compete through investments in new products which follow the technology trends. -- End of Announcement -- About 3W Power/AEG Power Solutions: 3W Power S.A. (WKN A114Z9 / ISIN LU1072910919), based in Luxembourg, is the holding company of AEG Power Solutions Group. The Group is headquartered in Zwanenburg in the Netherlands. The shares of 3W Power are admitted to trading on Frankfurt Stock Exchange (ticker symbol: 3W9K). For more information, visit www.aegps.com This communication does not constitute an offer or the solicitation of an offer to buy, sell or exchange any 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. For further information, please contact: Christian Hillermann Hillermann Consulting Investor Relations for AEG Power Solutions Phone: +49 40 320 279 10 Email: [email protected] --------------------------------------------------------------------------- 10.11.2016 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 --------------------------------------------------------------------------- 519419 10.11.2016