Centrosolar Group AG  / Key word(s): Restructure of Company/Preliminary Results

19.02.2013 23:29

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Munich, February 19, 2013 - CENTROSOLAR has announced provisional figures
for the 2012 financial year. As a result of the deepening crisis in the PV
industry in 2012, provisional calculations show that revenue for the past
financial year amounted to EUR 228 million (previous year EUR 293 million).
In value terms this represents a decrease of 22 % that is attributable to
falling prices, whereas the sales volume remained unchanged from the
previous year. The EBITDA margin is expected to be between -8 % and -10 %
of revenue (previous year -1.3 %). Net financial liabilities amounted to
EUR 90 million (previous year EUR 69 million) at the balance sheet date. At
the same date the company had cash and cash equivalents of EUR 18.3 million
(previous year EUR 25.9 million). The final figures are due for publication
on March 28, 2013.

In light of this situation the Management Board of CENTROSOLAR has agreed a
comprehensive restructuring programme that envisages all parties concerned
making significant contributions. The programme rests on three pillars:

1. Operational reorganisation: the company is to be significantly
streamlined, to equip it to function well on a lower market volume. This
will involve reducing costs over and above the measures already implemented
last year. Among other things some administrative functions will now be
handled centrally, and sales operations refocused. In addition,
administrative operations in the holding company and the group companies
will be significantly scaled back. Finally, senior management employees
will be deferring a significant portion of their remuneration to help the
company.

2. Balance sheet reconstruction: the company's financial liabilities are to
be reduced to below half the current level. The measures involved include
converting the BondM-listed bond for a nominal EUR 50 million into
shareholders' equity in the form of shares. The collateralised financial
creditors - banks and lessors - support this plan and are themselves
prepared to contribute towards reconstruction. They have signalled their
willingness to the company to defer interest and capital repayments in
part, and to pledge financing until the end of 2014.

3. Capital strengthening: to boost the equity base and protect the existing
shareholders against dilution, there are plans to raise fresh funding by
way of a capital increase with subscription rights. Shares not taken up by
existing shareholders are to be placed with new investors.

In the course of March, BondM creditors and shareholders will be informed
of the plans to hold a creditors' and shareholders' meeting to resolve the
proposed measures.

The Centrosolar Glas segment, which is run and financed independently, is
likewise implementing a comprehensive programme of restructuring. This
comprises capacity reductions at the German production location, supported
by financial contributions by its financial creditors.

The strategy of international expansion and of focusing on higher-value
systems for applications on private and industrial roofs will be retained,
as this positioning remains the company's strength. This was the key reason
why CENTROSOLAR was able to maintain its sales volume in MWp at a stable
level in a crisis-hit 2012, at a time when other competitors are reporting
double-digit decreases in volume. The restructuring programme gives the
company the necessary clout as the industry enters the consolidation phase,
and will enable it to grow again once photovoltaics as a market of the
future regains stability.


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Information and Explaination of the Issuer to this News:

About CENTROSOLAR Group AG: 

The listed company CENTROSOLAR Group AG, Munich, (stock exchange code WKN
514850) is one of the leading suppliers of photovoltaic (PV) systems for
roofs and key components, with around 1,000 employees in Europe and North
America and annual revenue of more than EUR 200 million (2012). Its product
range comprises solar integrated systems, modules, inverters, mounting
systems and solar glass. Over two-thirds of revenue is generated
internationally. There are CENTROSOLAR branches in Italy, France, Greece,
Switzerland, the Netherlands, the UK, Canada and the USA.

CENTROSOLAR manufactures solar glass at plants in Germany and China as well
as photovoltaic modules at a production plant in Wismar (Germany). The
production lines for the finishing of glass have an annual production
capacity of eight million square metres. The module plant certified to DIN
ISO 9001:2008 in Wismar is one of the largest and most efficient such
plants in Europe, with an annual capacity of 350 MWp. For further
information, visit: www.centrosolar-group.com.

For more information, please contact: MetaCom GmbH, Georg Biekehör, tel.:
+49 (0)6181 9828030, e-mail: g.biekehoer@go-metacom.de

19.02.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Centrosolar Group AG
              Walter-Gropius-Str. 15
              80807 München
              Germany
Phone:        +49 (0)89 20 1800
Fax:          +49 (0)89 20 180 555
E-mail:       info@centrosolar.com
Internet:     http://www.centrosolar-group.de
ISIN:         DE0005148506
WKN:          514850
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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