Ad-hoc-Notice according to § 15 WpHG by Tognum AG
Posted on December 29, 2010
+ + + DGAP-Ad-hoc: Tognum discontinues fuel-cell activities; guidance for full-year 2010 confirmed + + +
- Fuel-cell activities for stationary power generation discontinued due to a lack of medium-term commercial viability, given current market conditions and subsidy schemes
- Non-operational, one-off impact of approximately €60 million on FY2010 results
- Existing FY2010 guidance confirmed
- Current dividend policy will be maintained
- Positive outlook for 2011 unaffected by fuel-cell exit; company maintains medium-term growth targets
Friedrichshafen, 29 December 2010. The Executive Board of Tognum AG, specialist for propulsion and power solutions, has decided to discontinue its fuel-cell activities for stationary power generation. Having carefully examined the most recent demand forecasts and carried out a thorough risk/reward analysis, Tognum opted against further active engagement in this area. The company has come to the conclusion that the fuel-cell business is unlikely to become commercially viable in the medium term, given current market conditions and subsidy schemes.
In the course of this year, management had actively looked at additional market initiatives in support of fuel-cell technology in Asia. Management also analysed potential partnerships for serial production in Asia, which, however, proved not sufficiently promising. After negotiations with a potential Asian partner, which had appeared promising at first, ended without agreement on 28 December 2010, the Executive Board took the decision to discontinue its fuel-cell activities.
Impact on 2010 and 2011
Guidance for the full year 2010 is unaffected by this decision: Tognum continues to expect revenues of around €2,550 million and an adjusted EBIT margin in the upper range of the previously given corridor of 7.5 to 9%. The company will also maintain its dividend policy of paying out 30 to 50% of adjusted net profit.
Moreover, the decision has no impact on the company’s prospects for 2011: Tognum expects revenue growth of around 10% and an adjusted EBIT margin in the high single-digit percentages. Equally, medium-term growth targets are unchanged.
Full-year results for 2010 will show a non-operational one-off impact of approximately €60 million, based on a re-evaluation of assets of approximately €40 million, including capitalised development cost and provisions of approximately €20 million required as a result of the exit from the fuel cell business.