Edisun Power Europe Ltd. Corporate Governance Report 2010 ...

Editorial
Edisun Power Group looks back on an eventful 2010.
While we were able to post a striking increase in sales despite
massive delays in connecting our French plants to
the grid, one-off write downs and currency losses saw the
Group close the year with a net loss.
One-off effects weigh on a good result
The solar markets of relevance to our business developed
positively during the year in review, and Edisun Power
Group was able to build on this basis to post a marked
increase in sales. Total sales rose year on year by 120%,
while sales of electricity rose 23% (30% at constant exchange
rates). Total installed capacity (in kWp) rose by
32.3% (40.2% gross including sales). Despite this striking
growth, tangible assets diminished by CHF 2.9 million
with the sales of a 610-kWp facility in Germany.
EBITDA rose by 36% to CHF 2.9 million (2009: CHF 2.1 million).
The operating result (EBIT) dropped by 82% to TCHF
60 (2009: TCHF 331). The Group result after taxes, weighed
down by the financial result and one-off write downs on
projects and solar panels in storage, was TCHF -1073.
Net loss, adjusted for extraordinary write downs of TCHF
728 and exchange rate losses, comes to TCHF -116.
Cash flow analysis reflects the above: operative cash flow
amounted to TCHF 992, capital expenditures occasioned
liquidity outflows of CHF 7.1 million, and financing activities
brought in CHF 6.2 million.
International profile strengthened
Electricity sales abroad accounted for 64% of total revenues,
as compared to 57% in 2009. As a result, the Group
has become more dependent on the development of the
euro. So as to reduce the attendant risk, we have for some
time been building facilities abroad only with guaranteed
local financing, thus ensuring a natural hedge. Our sale of
the 610-kWp facility in 2010 was a first step in the direction
of plant construction for third parties, and we will be
developing this division in 2011 further in keeping with
our new corporate strategy.
At year's end a bond issue brought us an additional CHF
5.8 million and bolstered our financing; in addition, two
projects were refinanced to the tune of CHF 2.9 million.
As per balance-sheet day the Group enjoyed a solid equity
ratio of 31% (2009: 41%) and is thus well equipped to
meet the future.
Mirjana Blume
CEO and CFO, Edisun Power Group