Interim Report as at 30th June 2006 - aleo-solar.com

2006
First-Half Report
aleo solar Aktiengesellschaft
Gewerbegebiet Nord | 17291 Prenzlau
T +49 (0) 3984 83 28-0 | F +49 (0) 3984 83 28-15
Osterstraße 15 | 26122 Oldenburg
T +49 (0) 441 219 88-0 | F +49 (0) 441 219 88-15
info@aleo-solar.de | www.aleo-solar.de
aleo

➔
Figures at a Glance
➔
Contents
30 June 2006 30 June 2005
Production output Megawatts 22.9 14.6
Total operating performance € million 64.6 48.1
Sales revenues € million 55.7 47.6
EBIT € million 6.1 7.9
EBIT margin in % 11.0 16.6
Earnings before taxes € million 5.8 7.8
Net income for the year € million 3.7 4.8
Fixed assets € million 18.6 8.1
Current assets € million 42.8 20.9
Balance sheet total € million 61.5 34.8
Equity € million 14.9 11.1
Equity ratio in % 24.2 32.0
Cash flow € million 0.5 -0.5
Investment € million 5.1 0.3
Depreciation € million 1.0 0.7
2 Foreword
4 Business Development
11 Consolidated First-Half
Financial Statements
12 Consolidated Balance Sheet
14 Consolidated Profit and
Loss Statement
15 Consolidated Cash Flow Statement
16 Consolidated Statement of
Changes in Equity
18 Consolidated Notes
Cost of materials € million 52.3 36.7
Cost of materials ratio in % 80.9 76.2
Earnings per share € 0.36 0.47
No. of employees on 31 March 239 190
Personnel costs ratio in % 4.8 4.3
Sales per employee € ’000 233.0 250.5

➔
Foreword
Dear Sirs,
aleo solar AG has made it to the trading floor of the Frankfurt Stock Exchange.
We are proud to have succeeded in taking this important step in the further development
of our company. Access to the capital market enables us to step up the pace of
our growth and to achieve our strategic objectives swiftly. aleo solar will thus play an
important role in the ongoing growth of the photovoltaics market, and the development
of business in the first half of 2006 confirms this view.
Positive industry environment
The solar industry’s positive environment continues unabated. The market for photovoltaics
in Germany is growing at a high rate, demand for solar installations is increasing
perceptibly in other European countries, and the German Environment Minister has reaffirmed
the federal government’s commitment to promoting renewable energy. Our business
has also developed successfully in the first six months of 2006.
Business developing successfully
Experience has shown that business is somewhat weaker in the first half, yet compared
with the previous year we were able to improve our total operating performance by
nearly 34%. Production is therefore running according to plan in 2006. We attribute this
to a balanced solar cell procurement strategy and to the high reputation that aleo enjoys
as a quality brand.
Top marks from the Stiftung Warentest Foundation
In May the Stiftung Warentest Foundation, Germanys leading institute for product testing,
tested 15 solar modules. The aleo solar module was awarded the top rating of 1.9.
It was found to be particularly good in power generation and durability. The findings
demonstrate that our modules are among the best in the world. We will maintain this
high quality standard and continue to set standards with our products.
Access to new technology assured
Our modules use solar cells made of silicon, but silicon is a scarce commodity and we
are taking the precaution of looking into alternative technologies. In April 2006 we
acquired a stake in Johanna Solar Technology GmbH and thereby made sure of access
to a new, silicon-free thin-film technology. In our opinion it is one of the most promising
developments in the photovoltaic industry.
aleo solar becomes an Aktiengesellschaft
(public limited company)
In the first quarter we changed our equity structure
and with effect from 17 March increased
our capital stock from company funds by
EUR 7.6 million to EUR 10.2 million. The decisive
reason for this move was the company’s conversion
in May from an unlisted GmbH (limited
liability company) to a listed Aktiengesellschaft.
Along with the change in legal status we changed
the company’s name. S.M.D. Solar-Manufaktur
Deutschland GmbH is now known as aleo solar
AG and bears the name of our established
aleo brand.
In future our company will be subject to even
stricter transparency requirements. We have
allowed for this by converting our accounts to
International Financial Reporting Standards
(IFRS). That makes us well prepared for the
capital market’s information requirements.
In this connection we are reporting earnings per
share both for this first half and for the first half
of last year. Earnings per share for the first half
of 2006 were EUR 0.36.
Prenzlau, August 2006
Heinrich Willers
Jakobus Smit

➔
Business Development
Underlying conditions
Sound general economic situation
At the beginning of 2006 economic development
was positive all over the world. The
German economy also gained momentum and is
said by economic experts to be on the upturn.
The order position in industry has improved further,
with the result that an increase in economic
performance is generally expected.
The Germans’ propensity to consume improved
by the month in the first half of 2006. The
increase in value-added tax at the beginning of
next year has particularly prompted consumers
to bring purchases forward.
The stock market got off to a rip-roaring start in
2006, and the year began particularly well for
solar stocks. At the beginning of May shares
listed in the TecDax index sustained a setback
when investors took profits and sold stocks that
realised the highest gains. At the same time
there was no further increase in crude oil
prices.
Stock market sentiment has since improved,
and interest in solar stocks is unabated, especially
as problems with conventional energy
supplies persist.
Energy price and security of supplies
Energy demand is growing inexorably all over the
world, with the result that energy prices stayed
at a high level in the first half of 2006. A further
factor is political instability in countries that
produce fossil fuels. Political unrest in Nigeria,
the dispute over the Iranian nuclear programme
and speculation about the threat of supply bottlenecks
in the United States sent oil prices
soaring further. At the end of the first half, crude
oil cost about US$69 per barrel, an increase of
more than 25% on the year before. The position
was much the same for natural gas. Gas supplies
to Europe were hit by the gas dispute
between Russia and the Ukraine, underscoring
our increasing reliance on energy imports and
making it clear yet again that the use of alternative
sources of energy must be taken forward
partly to ensure safety of supplies.
External costs, an important factor, have in the
past been disregarded in connection with energy
prices, but a recent study commissioned by the
German Environment Ministry shows that electricity
from renewable sources of energy prevents
damage that runs into billions. Generating
power from lignite and brown coal leads to
external costs of 6 to 8 cents per kilowatt hour,
whereas generating power by photovoltaics currently
leads to costs of merely one cent per kilowatt
hour. The enormous overall economic
significance of these external costs lends extra
momentum to political interest in renewable
energy.
Continued high demand for solar
technology
Demand for solar installations in Germany continued
to be high at the beginning of the year
even though sales were delayed slightly by
heavy snowfall. Lower interest rates and
Renewable Energy Act subsidies underpin this
high level of demand.
Internationally there are clear signs of strong
market growth. Greece and France have joined
Spain and Italy in passing attractive energy
supply legislation that has given the photovoltaics
market a boost. What is more, there is
more sunshine in these countries than in
Germany, and that too makes the investment in
photovoltaics attractive.

➔
Business Development
Course of business
Good progress in H1 2006
2006 got off to a satisfactory start for aleo solar
AG. In the first half we produced according to
plan solar modules with a total peak output of
22.9 megawatts (MWp), a 56.8% year-on-year
increase. This significant growth was made possible
by both the second production line, taken
into service at the end of last year, and our
balanced solar cell procurement strategy.
Made-to-order (OEM) production increased from
0.6 MWp to 6.1 MWp.
Investing in the future
Solar grade silicon, the raw material required to
make solar cells, continues to be scarce. In our
opinion there will be a supply shortfall in the
medium term. That is why we have looked very
carefully into alternative technologies and
acquired in April a stake in Johanna Solar
Technology GmbH, a company that will be producing
solar modules based on a silicon-free
thin-film technology. The new technology is
based on the five elements copper, indium, gallium,
sulphide and diselenide. With its high efficiency
potential of up to 15%, it is developing
into an equivalent alternative to the current silicon
technology.
Important steps in foreign markets
In the first half of 2006 we consistently pursued
our course of internationalisation. We took up
distribution in Spain and achieved initial sales
success. We are currently building near
Barcelona a solar module production plant with
a planned capacity of 10 MWp that is scheduled
to start production for the Spanish market at the
beginning of 2007. We have already made contact
with a large number of potential customers
in the Spanish market.
Our presence at the Italian Solar Expo in Vicenza
led to the establishment of initial business contacts.
They are the prerequisite for a successful
market launch in Italy.
In June 2006 we appointed Christopher Dunne,
an acknowledged industry sales professional, as
director of international sales. US-born Dunne
has worked in the solar industry in various countries
since 1994.
As in Germany, we plan to supply Spanish and
Italian specialist dealers and solar installers
directly. Existing distribution partnerships with
German specialist dealers are paying dividends
in that they are increasingly setting up branches
in other countries. Unlike in Germany, open-air
projects are attractive in other countries, with
the result that solar cells are supplied to project
developers there.
Earnings position
Sales and earnings continue at a high level
First-half 2006 sales were EUR 55.7 million, or
16.9% higher than the previous year. On that
basis our EBIT was EUR 6.1 million, equivalent to
an EBIT margin of 11.0%. The first-half 2005 EBIT
margin was 5.6 percentage points higher. The
reasons for this are, especially, the increase in
the cost of materials. In addition, at the end of
2005 we expanded production capacity in
Prenzlau in order to service the high demand
more quickly in future. This resulted in pre-operating
costs in 2006. Since plant is being installed
step by step, capacity take-up has not yet
reached the previous year’s level.
Inventories increased in the first half year. We
will be using the finished solar modules for a
consistent continuation of our internationalisation.
Higher stocks are also a result of the
expansion of production and of the product
range to include other types of solar modules
and solar cell.
Further increase in international sales
International sales in the first half of 2006
totalled EUR 2.8 million compared with EUR 0.2
million the previous year, taking our export
quota up to 5.1% from 0.5%. Sales were mainly in
the Spanish market, where we have been
increasingly successful.
Substantial increase in production
With the aid of the second production line that
went into operation in September 2005, we
were able to boost production by 56.8% from
14.6 to 22.9 MWp in the first half of 2006. As a
result, personnel expenses rose less steeply
than production, totalling EUR 3.1 million in the
first half of 2006.
Financial and asset position
Balance sheet total well above
previous year
In the first half of 2006 the balance sheet
total rose to EUR 61.5 million from EUR 36.2
million.

➔
Business Development
New production line holds pride of place
on the assets side
On the assets side, long-term assets increased
by 22.3% to EUR 18.6 million. This increase
was due to the shareholding in Johanna
Solar Technology that the company acquired.
Inventories were up too, to EUR 22.7 million
due to the above-mentioned increase in stocks.
Capital increase undertaken
Equity at EUR 14.9 million as of 30 June 2006
was up 28.9% on 30 June 2005. It included
EUR 3.3 million in revenue reserves. In March
2006, the company’s share capital was increased
to EUR 10,180,000 from EUR 2,545,000 by the
addition of EUR 7,635,000 from the revenue
reserve.
Advance payments ensure solar cell
deliveries
Short-term financial debts increased from EUR
0.5 million at 31 December 2005 to EUR 23.8
million at 30 June 2006. The disproportionate
increase is attributable to advance payments for
the procurement of solar cells, to the shareholding
in Johanna Solar Technology GmbH that the
company acquired and to the increase in working
capital as a result of the expansion of production.
Increase in liabilities corresponds to higher
cost of materials
Trade payables and other liabilities increased
as at 30 June 2006 to EUR 11.0 million. This
increase was therefore more or less on a par
with the increase in cost of materials.
Addendum
IPO on 14 July 2006
The company’s shares have since 14 July 2006
been listed on the Frankfurt Stock Exchange in
the Prime Standard segment. The issue price
was EUR 13.50. A total 7,033,061 shares were
placed, earning the company gross issuance
proceeds of around EUR 38.5 million. Against
the background of a difficult market environment
we are satisfied with the stock market
start. The inflow of capital to the company will
be used to further accelerate the implementation
of our plans for the future.
Risk management report
We do business in a sophisticated technology
market of the future that holds opportunities
and risks. We have taken various measures to
ensure the continued existence of aleo solar AG
and to support the company’s positive development.
An important aspect of these measures is
our risk management, which is integrated into all
of the fundamental corporate procedures as a
continuous process. It helps us to identify
opportunities and risks at an early stage and
react accordingly. At present aleo solar AG is not
aware of any risks that pose a threat to the company’s
continued existence.
Sales market coupled to statutory
framework conditions
The aleo solar Group’s business activity is
dependent on government subsidies for renewable
energy. Without them solar power generation
would not yet be competitive. Cancellation
or a change for the worse in the statutory framework
conditions could reduce the demand for
photovoltaic installations in our main sales market,
Germany. We anticipate stable framework
conditions in other countries and are already
oriented toward Spain and Italy, where attractive
subsidy plans for renewable energy have lately
been drawn up.
Interest rates influence profitability
Photovoltaic installations are mostly funded by
means of borrowed capital. Low interest rates in
the past have exerted a positive influence on
their profitability. A significant increase in interest
rates would have a negative effect on profitability
and demand might fall as a result.
Production depends on raw material
supplies
The solar cells used in our modules consist of
silicon, which as the solar industry’s most
important raw material at present is in short
supply because the demand is so heavy. That is
why aleo solar AG secured at an early date by
means of supply contracts the quantities it
needs in 2006. We also acquired a stake in
Johanna Solar Technology GmbH, a company
that uses an alternative, silicon-free thin-film
technology.
Outlook
Our target markets are, in particular, the
European growth markets. Before the end of this
year we plan to set up a distribution organisation
of our own in Italy.
We also plan a further increase in our export
quota, and initial successes are already apparent.
Gamesa Solar S.A., a renewable energy
group based in Madrid, has ordered more than
11,000 modules with a total capacity of about
2 MWp. Most of these modules will be supplied

➔
Business Development
➔
Consolidated First-Half
Financial Statements
in 2006 and the order will be completed at the
end of the first quarter of 2007. It will have an
announcement effect. By means of collaboration
with companies that are established in the market
we will quickly make the aleo brand well
known in international markets too.
We expect the photovoltaic market to continue
to grow in 2006. We will participate in this
growth and have already made sure of the solar
cells required for the increase in production.
Experience has shown that first-half results are
lower than results for the second half. Against
this background the company anticipates
further growth in the months ahead for which
we will use our stock of finished products. It will
be run down step by step in the course of the
second half.
As we expected, the market is changing into a
buyer’s market. Despite falling prices of solar
modules we will this year achieve an above-average
EBIT margin compared with the market in
general. What is more, dependant on the upturn
in demand in the German market that we
expect to see, we plan to increase full-year 2006
sales by 25% to 35% on the year (in 2005
EUR 106.9 million).
12 Consolidated Balance Sheet
14 Consolidated Profit and Loss Statement
15 Consolidated Cash Flow Statement
16 Consolidated Statement of Changes in Equity
18 Consolidated Notes
10 11

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Consolidated Balance Sheet
at 30 Juni 2006
Assets in € ’000 30 June 2006 31 Dec. 2005 30 June 2005
Equity and debts in € ’000 30 June 2006 31 Dec. 2005 30 June 2005
A. Long-term assets
1. Fixed assets 15,010 15,213 8,060
2. Intangible assets 58 52 54
3. Financial assets 3,563 0 0
B. Short-term assets
18,631 15,265 8,114
1. Inventories 22,712 14,355 11,014
2. Trade receivables 7,513 4,106 5,364
3. Current earnings tax entitlement 207 101 0
4. Other short-term assets and
advance payments 11,250 1,724 9,738
5. Cash and cash equivalents 1,159 630 590
42,841 20,916 26,706
A. Equity
1. Subscribed capital 10,180 2,545 2,545
2. Capital reserve -251 208 208
3. Revenue reserves 3,345 2,500 2,500
4. Result brought forward -2,049 1,095 1,096
5. Consolidated result 3,686 9,335 4,791
14,911 15,683 11,140
B. Long-term debts and deferrals
1. Deferrals from public sector grants 6,361 6,823 5,150
2. Financial debts 2,218 2,462 2,306
3. Deferred taxes 332 266 200
4. Warranty provision 712 578 627
9,623 10,129 8,283
C. Short-term debts
1. Financial debts 23,845 489 3,073
2. Trade payables and other liabilities 11,011 3,667 7,502
3. Current earnings tax liabilities 2,082 6,213 4,822
36,938 10,369 15,397
61,472 36,181 34,820
61,472 36,181 34,820
12
13

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Consolidated Profit
➔
Consolidated Cash Flow
and Loss Statement
Statement
for 1 January to 30 June 2006
for the first half of 2006
in € ’000
1 January to
30 June 2006
1 April to
30 June 2006
1 January to
30 June 2005
1 April to
30 June 2005
1. Sales revenues 55,663 29,949 47,621 26,325
2. Increase in stocks
of finished products 8,902 2,144 524 351
3. Other income 816 382 869 577
4. Cost of materials -52,262 -26,188 -36,665 -20,306
5. Personnel expenses -3,100 -1,618 -2,055 -1,071
6. Other expenses -2,926 -1,482 -1,744 -1,012
7. EBITDA 7,093 3,187 8,550 4,864
8. Expenditure on
scheduled depreciation -961 -490 -686 -348
9. EBIT 6,132 2,697 7,864 4,516
10. Financial income 3 2 9 5
11. Financial expenditure -296 -204 -107 -66
12. Earnings before taxes 5,839 2,495 7,766 4,455
13. Taxes on earnings -2,153 -883 -2,975 -1,699
14. Consolidated result 3,686 1,612 4,791 2,756
Earnings per share for the reporting period
to which shareholders are entitled
(in euros per share)
Undiluted earnings per share of
nominal capital 0.36 0.16 0.47 0.27
in € ’000 30 June 2006 30 June 2005
I. Cash flow from ordinary business activity
Consolidated result for the year after earnings taxes and interest 3,686 4,791
Earnings taxes 2,153 2,975
Expenditure on scheduled depreciation 961 686
Change in long-term provisions 134 -9
Loss / -Profit from disposals of long-term assets -12 1
Interest income -3 -9
Interest expenditure 296 107
Expenditure / -Income without effect on payments -462 601
Change in trade receivables and other short-term assets -4,294 -9,984
Change in inventories -17,655 -4,037
Change in trade payables and other short-term liabilities 6,726 3,317
= Cash flow from business activity -8,470 -1,561
Interest paid -245 -82
Interest received 3 9
Earnings taxes paid -6,059 -442
= Net cash flow from ordinary business activity -14,771 -2,076
II. Cash flow from investment activity
Acquisition of fixed assets -1,478 -272
Proceeds from the sale of fixed assets 70 1
Acquisition of intangible assets -19 -11
Acquisition of financial assets -3,563 0
Payments received in public sector grants 1,178 1,852
= Net cash flow from investment activity -3,812 1,570
III. Cash flow from financing activity 1
Financial debts incurred 22,649 1,440
Repayment of financial debts -244 -195
Dividend paid to shareholders -4,000 -2,000
= Net cash flow from financing activity 18,405 -755
Net changes in cash and
cash equivalents (I to III) -178 -1,261
Cash and cash equivalents held at the
beginning of the financial year 630 727
Cash and cash equivalents held at the end
of the quarter 452 -534
Current account loans 707 1,124
Cash in the balance sheet 1,159 590
1
Money owed to banks on current account is shown under Financial Funds in the Cash Flow Statement.
14 15

➔
Consolidated Statement of
Changes in Equity
for the first half of 2006
Equity allocable to shareholders in the parent company
in € ’000
Subscribed
capital Capital reserve Revenue reserves
Result
brought forward
Consolidated
result
Sum total
of equity
Position on 1 January 2005 2,545 208 0 -1,034 6,630 8,349
Reclassification/Transfer to revenue reserves 0 0 2,500 2,130 -4,630 0
Distributions 0 0 0 0 -2,000 -2,000
Consolidated result 0 0 0 0 4,791 4,790
Rounding 0 0 0 -1 0 0
Position on 30 June 2005 2,545 208 2,500 1,095 4,791 11,139
Position on 1 January 2006 2,545 208 2,500 1,095 9,335 15,683
Reclassification/Transfer to revenue reserves 0 -459 8,480 -3,145 -5,335 -459
Capital increase 7,635 0 -7,635 0 0 0
Distributions 0 0 0 0 -4,000 -4,000
Consolidated result 0 0 0 0 3,686 3,687
Rounding 0 0 0 1 0 0
Position on 30 June 2006 10,180 -251 3,345 -2,049 3,686 14,911
16
17

➔
Notes to the Consolidated
Financial Statements
erstes Halbjahr 2006
1. Basic principles
aleo solar AG, Prenzlau, (formerly S.M.D Solar-
Manufaktur Deutschland GmbH, Prenzlau) drew
up its consolidated financial statements for the
financial year 2005 in accordance with the
International Financial Reporting Standards
(IFRS) issued by the International Accounting
Standards Board (IASB) and with their interpretation
by the International Financial Reporting
Interpretations Committee (IFRIC). This interim
financial report to 30 June 2006 was accordingly
also drawn up in accordance with IAS 34.
2. Accounting and valuation methods
In drawing up the consolidated interim financial
report and comparative figures for the previous
year, the same consolidation principles and
accounting and valuation methods were in principle
used as for the consolidated financial
statements for 2005. A detailed description of
these methods is included in the Notes to the
Consolidated Financial Statements for 2005. It
can also be downloaded from www.aleo-solar.de
as part of the share issue prospectus.
The consolidated interim financial report covers
aleo solar AG, Prenzlau, (formerly S.M.D Solar-
Manufaktur Deutschland GmbH, Prenzlau) as
the parent company and, as fully consolidated
subsidiaries, aleo solar Deutschland GmbH,
Oldenburg, (hereinafter referred to as aleo),
Solar Manufaktur Producción, S.L., Barcelona,
Spain, and aleo solar distribución España, S.L.,
Barcelona, Spain. Comparative figures for the
Spanish companies were not required as they
were founded in September 2005. All of these
subsidiaries are wholly owned.
We have observed all new or amended IFRS for
quarterly reports that were mandatory and had
to be used for the first time as of 1 January
2006. The first-time use of these new or amended
standards had no effect on the asset, financial
and earnings position or the cash flow of
aleo solar AG, Prenzlau (formerly S.M.D Solar-
Manufaktur Deutschland GmbH, Prenzlau).
3. Consolidation entity
This consolidated interim financial report to
30 June 2006 was drawn up in accordance with
IAS 27 (revised 2003). The consolidated interim
financial report accordingly includes all major
companies whose financial and business
policies aleo solar AG, Prenzlau, (formerly
S.M.D Solar-Manufaktur Deutschland GmbH,
Prenzlau) is able directly or indirectly to determine
in such a way that the Group’s companies
derive benefit from the activity of these companies
(subsidiaries).
4. Segment reporting
A business segment is a group of assets and
business activities that provides products or
services which in respect of their risks and
opportunities differ from those of other business
areas. A geographical segment provides products
or services within a certain economic environment
that in respect of its risks and opportunities
differs from those of other economic
environments.
18
19

➔
Notes to the Consolidated
Financial Statements
IAS 14.3 requires companies whose dividend
papers or debt securities are traded publicly or
that have initiated trading in them to publish a
segment report. Since 14 July 2006 shares in
aleo solar AG, Prenzlau, (formerly S.M.D Solar-
Manufaktur Deutschland GmbH, Prenzlau) have
been listed in the Prime Standard segment on
the Frankfurt Stock Exchange.
aleo solar AG, Prenzlau, (formerly S.M.D Solar-
Manufaktur Deutschland GmbH, Prenzlau)
intends in the near future to access the public
capital market. By the terms of IAS 14.9 the
company is therefore required to provide segment
reporting.
Given, however, that aleo solar AG, Prenzlau,
(formerly S.M.D Solar-Manufaktur Deutschland
GmbH, Prenzlau) is a single-product company
that only manufactures solar modules and that
its sales are for the most part generated in
Germany, providing a segment report is considered
to be superfluous.
5. Seasonal or cyclical influences on
business activity
The sales of aleo solar AG, Prenzlau, (formerly
S.M.D Solar-Manufaktur Deutschland GmbH,
Prenzlau) tend to be lower in the first half of a
calendar year than in the two following quarters.
The company assumes that its earnings
position could continue to be subject to seasonal
fluctuation.
6. Notes on the Consolidated Interim
Financial Statements
Equity and conversion of legal status
Conversion into an Aktiengesellschaft
(public limited company)
Based on the March 2006 capital increase, the
meeting of shareholders resolved on 12 April
2006 to convert the company into an Aktiengesellschaft.
aleo Solar AG, Prenzlau, now
trades, with an entry dated 4 May 2006 (HRB
7522 NP) in the Commercial Register of
Neuruppin District Court (Amtsgericht), as aleo
solar Aktiengesellschaft, Prenzlau.
The EUR 10.180 million (31.12.2005: EUR 2.545
million) of subscribed capital is divided in such a
way into 10,180,000 non-par registered shares
each with a nominal value of one euro that each
shareholder receives a registered share for each
euro originally invested.
Resolution to increase the company’s capital
stock
By the terms of a resolution adopted by the
annual general meeting of shareholders held on
23 May 2006 the company’s capital stock was
increased in cash by up to EUR 2,850,400 to up
to EUR 13,030,400 by the issue of up to
2,850,400 new shares. The capital increase was
registered in July 2006.
Earnings per share
The figures for earnings per share relate both for
this interim financial report and for the comparative
period last year to the 10,180,000 shares
outstanding as of 30 June 2006.
7. Major business transactions
Participation in Johanna Solar Technology
GmbH
aleo solar Aktiengesellschaft, Prenzlau, acquired
on signing the 13 April 2006 participation agreement
a 19% stake in Johanna Solar Technology
GmbH, located in Brandenburg an der Havel. The
participation sum of EUR 1,907,000 and an
agreed extra sum of EUR 712,500 make up an
investment totalling EUR 2,619,500. On 5 May
2006 a capital increase was undertaken at
Johanna Solar Technology GmbH. aleo solar
Aktiengesellschaft, Prenzlau, took part in
this capital increase and invested a further
EUR 943,000. So the total amount invested is at
present EUR 3,562,500. The shareholding is
unchanged at 19%.
By the terms of a contract dated 13 April 2006,
aleo Solar AG, Prenzlau, agreed with 3E Finanz
GmbH, which after the capital increase entered
into the Oldenburg Commercial Register on 25
April 2006 held 38.0% of the shares in Johanna
Solar Technology GmbH, that aleo Solar AG,
Prenzlau, was to be given an option to acquire
20 21

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Notes to the Consolidated
Financial Statements
from 3E Finanz GmbH at least a further 31.1% of
the shares in Johanna Solar Technology GmbH.
This option will be open from 1 January 2008 to
31 March 2009. Should sales of thin-film solar
modules by Johanna Solar Technology GmbH in
2008 fall short of EUR 43 million, the abovementioned
option period will be postponed by a
year. The precondition for this entitlement and
for the share purchase is that the two parties
agree on a price for the shares to be acquired.
Pricing orientation aids will be the Principles of
Company Valuation (IDW Standard S1) drawn up
by the Institute of Accountants in Germany
(Institut der Wirtschaftsprüfer in Deutschland
e. V.) and a comparison with the market
valuation of a peer group of comparable listed
companies.
Insofar as aleo solar Aktiengesellschaft, Prenzlau,
still holds a 19% share in Johanna Solar Technology
GmbH at the time when the option is
exercised, it would then hold a majority stake in
the company. If aleo solar Aktiengesellschaft,
Prenzlau, were to exercise this option, the other
shareholders in Johanna Solar Technology GmbH
would have the right to offer their shares for
purchase by aleo solar Aktiengesellschaft,
Prenzlau.
8. Further details
Dividend payment
Dividends totalling EUR 4.0 million were paid out
in the reporting period. No proposals for further
dividend payments were made.
Management Board:
Members of aleo solar AG’s Management Board
in the reporting period were:
- Jakobus Smit
- Heinrich Willers
Supervisory Board:
Members of aleo solar AG’s Supervisory Board
in the reporting period were:
- Marius Eriksen, Chairman
- Claus von Loeper, Vice-Chairman
- Jörg Friedrich Bätjer
- Prof. Dr. Jürgen Parisi (since 23 May 2006)
- Dr. Stefan Reineck (since 23 May 2006)
- Gerold Heinen (since 23 May 2006)
- Dr. Andreas Zanner (until 23 May 2006)
- Dr. Rupert Doehner (until 23 May 2006)
- Helmut Bögershausen (until 23 May 2006)
Employees
The aleo solar Group’s headcount as at 30 June
2006 was 239 employees, including management
and Board members (30 June 2005: 190).
Investments
In the second quarter of 2006 the aleo solar
Group invested a total of EUR 1.478 million.
Much of this investment went toward setting up
the Spanish subsidiaries and enlarging production
capacities accordingly.
9. Events since the reporting date
IPO
aleo solar AG has been listed on the Frankfurt
Stock Exchange since 14 July 2006 in the Prime
Segment. The issue price was EUR 13.50. The
company earned gross issuance proceeds of
around EUR 38.5 million from the sale of the
2,850,400 new shares.
By 30 June 2006 expenditure totalling
EUR 724,000 had been incurred in direct connection
with the IPO. IAS 32.35 requires this
expenditure to be charged to equity in the
balance sheet. This deduction is, however, to be
reduced by any earnings tax benefits gained
(IAS 12.61). Taking these regulations into
account, the sum of EUR 448,000 was charged.
Prenzlau, August 2006
Heinrich Willers
Jakobus Smit
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Contacts and Dates
Contact for investors:
Yvonne Meyer
Investor Relations,
Legal & Compliance
Phone +49 441 – 21988-58
Fax +49 441 – 21988-69
meyer@aleo-solar.de
Franz Nieper
Head of Investor Relations,
Legal & Compliance
Phone +49 441 – 21988-35
Fax +49 441 – 21988-69
nieper@aleo-solar.de
Contact for the media:
Tanja Brüdersdorf
Marketing & PR
Phone +49 441 – 21988-54
Fax +49 441 – 21988-15
bruedersdorf@aleo-solar.de
aleo solar AG
Gewerbegebiet Nord
17291 Prenzlau
Phone +49 3984 – 83 28-0
Fax +49 3984 – 83 28-15
Osterstraße 15
26122 Oldenburg
Phone +49 441 – 219 88-0
Fax +49 441 – 219 88-15
info@aleo-solar.de
www.aleo-solar.de
Dates
Publication date for third-quarter figures: 28 November 2006
Imprint
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