VALOE CORPORATION, INTERIM REPORT FOR JANUARY

Valoe Corporation Interim Report 27 May 2015 at 19.15 Finnish time

VALOE CORPORATION, INTERIM REPORT FOR JANUARY - MARCH 2015

SUMMARY

- The restructuring of Valoe Corporation (“Valoe”) from a company providing electronics automation solutions to a technology company focusing on clean energy solutions, particularly on photovoltaic solutions, is completed. Since FTTK Company Limited bought 70 percent of Valoe’s electronics automation business the company has reported of only one business segment. The segment is the Clean Energy Segment that is the company’s only continuing business. The company aims to close the FTTK transaction in terms of the remaining 30 percent as soon as possible.

- The net sales of the continuing operations of Valoe for the reporting period January – March 2015 was EUR 0.1 million (EUR 0.6 million in 2014). The operating profit of continuing operations was EUR -0.02 million (EUR -1.2 million), profit for the period EUR -0.2 million (EUR -1.6 million), earnings per share were EUR -0.0002 (-0.002) and EBITDA was EUR 0.2 million (EUR -0.8 million). On the corresponding period in 2014 the Beijing factory had still operations but the figures of the reporting period in 2015 include only the net sales of Valoe.

- Based on tax indemnity in the share and asset sale agreement between Valoe and Savcor Group Ltd done in 2009 a claim of EUR 0.7 million against Savcor Group Ltd has been booked in the other operating income in relation to taxation of the Beijing factory in China on the reporting period January – March. The outcome of the claim will have a major importance while evaluating the sufficiency of the parent company’s equity.

- The financing situation of Valoe continues to be very tight. If the company does not succeed in securing sufficient short-term and long-term financing, the continuity of the company’s operation may be jeopardized. Since the sale of the electronics automation business Valoe has moved on to the next phase in its Cleantech strategy. In August 2014, according to the strategy and in order to obtain finance for it, Valoe decided to sell the remaining operations not included in its strategy, i.e. the production of RFID components and flexible electronics for mobile phones, to become a company providing solely clean energy solutions. Valoe is having ongoing negotiations for the sale of the operations and production machinery but likelihood of a sale has decreased in the course of time. Valoe Group has no longer any future expectations or assets relating to the factory in Beijing in its balance sheet.

- Valoe’s equity decreased below half of the share capital as on 31 December 2014. Thus, the Board of Directors convened a general meeting to consider measures to remedy the financial position of the company and to reduce the share capital among other things. The matter will be handled in the annual general meeting on 28 May 2015. In practice Valoe has already commenced measures to remedy the financial position of the company.

OVERVIEW

More information on principle activities and events during the reporting period can be found in the stock exchange releases published on Valoe’s website at www.valoe.com. The Interim Report has been drawn up in compliance with the IAS 34 Interim Financial Reporting standard. In the Interim Report Valoe has applied the same accounting principles as in its Annual Report 2014. The Interim Report has not been audited.

FINANCIAL DEVELOPMENT

Since Valoe transferred its electronics automation business to Cencorp Automation Oy and sold at first 70 percent and in December 2014 the remaining 30 percent of this company to FTTK Valoe reports of only one business segments, the Clean Energy segment. In terms of the latter 30 percent the transaction has not yet been closed.

Part of the deliveries of orders received by LAS and LCM segments before the transaction remained in Valoe. Net sales originating from these orders decreases and gradually finishes as the orders will be delivered during the financial year 2015. The LAS and LCM Segments are reported in the discontinued operations. In Valoe’s financial reports the profit of discontinued operations is reported on a separate line, apart from continuing operations, thus, the income statement, excluding the discontinued operations item, concern the company’s continuing operations only. The group’s segment information is based on the management’s internal reporting and on the organisation structure of the company.

Valoe’s equity decreased below half of the share capital as on 31 December 2014. Thus, the Board of Directors convened a general meeting to consider measures to remedy the financial position of the company and to reduce the share capital among other things. The matter will be handled in the annual general meeting on 28 May 2015. In practice Valoe has already commenced measures to remedy the financial position of the company.

The figures in brackets are comparison figures for the corresponding period in 2014, unless stated otherwise. In this Financial Statement Release the figures for Beijing have been reported in the continuing operations.

January - March 2015 (continuing operations)

- Valoe Group’s net sales decreased by 77.8 percent to EUR 0.1 million (In 2014: EUR 0.6 million including the component production at the Beijing factory).

- EBITDA was EUR 0.2 million (EUR -0.8 million).

- Operating profit was EUR -0.02 million (EUR -1.2 million).

- The profit before taxes was EUR -0.2 million (EUR -1.6 million).

- Profit for the period was EUR -0.2 million (EUR -1.6 million).

- Earnings per share were EUR -0.0002 (EUR -0.002) and diluted earnings per share EUR -0.0002 (EUR -0.002).

- Net sales of the Clean Energy segment (CCE) decreased by 77.8 percent to EUR 0.1 million (EUR 0.6 million) due to close-down of antenna production at the Beijing factory and operating profit was EUR -0.02 million (EUR -1.2 million). The segment’s EBITDA was EUR 0.2 million (EUR -0.8 million). On the reporting period the operating profit increased due to a claim of EUR 0.7 million against Savcor Group Ltd relating to the taxation of the Beijing factory in China that was booked in the other operating income. The claim is based on the tax indemnity in the share and asset sale agreement between Valoe and Savcor Group Ltd done in 2009. The outcome of the claim will have a major importance while evaluating the sufficiency of the parent company’s equity.

MANAGING DIRECTOR IIKKA SAVISALO’S REVIEW

In 2015 Valoe’s most important objective is to conclude the ongoing business negotiations successfully; to secure short- and long-term financing facility; and to sign the first manufacturing partnership agreements.

On the first quarter of 2015 the company’s net sales were very low. The net sales consisted of small deliveries of PV modules and solar power plants. In terms of technology the company is ready for mass production and as the CEO I trust the net sales will grow on the second quarter.

Domestic demand for solar energy systems has grown clearly compared to the previous year. Valoe has received several orders which have only minor economic value but which are important reference cases for the company generating valuable knowledge and experience of the module manufacturing recipe, system design and installations. Reference cases are important while Valoe is endeavouring to sign agreements on module plant deliveries and manufacturing partnerships with foreign partners.

The company has ongoing negotiations with several candidates interested in manufacturing partnership. Some of the negotiations have proceeded significantly during the reporting period. It is possible that Valoe signs its first agreement exceeding the limit of EUR 0.4 million set for public releases on the second quarter of 2015. The company is aiming to sell one PV module plant and one production line during 2015. The total value of Valoe’s quotations has increased during the reporting period and the value of a single quotation, the biggest one in the company’s history, totals more than EUR 60 million.

Valoe has earlier announced that it has signed a Term Sheet with Vikram Solar, an Indian based company. The companies continue negotiating to find a cooperation model acceptable for both parties. In the future Valoe will make no separate announcement on the cooperation with Vikram unless a deal between the parties exceeds the company’s current limit for stock exchange releases.

During the reporting period Valoe has further improved its sales and developed its Conductive Back Sheet (“CBS”) technology for solar modules and related production. In my opinion the ongoing development will improve the competitiveness of Valoe’s technology and solutions.

As a material technology specialist Valoe participates, when possible, in the development of silicon based solar cells. Cells are the most crucial component in a module. Together with the German Fraunhofer ISE Valoe has developed and manufactured the first prototype of its own back contact solar cell. The company aims to develop a cost-efficient cell optimized for CBS technology by the end of 2015 and to build a CBS based module of 60 cells with efficiency of more than 290 Wp (nominal power) using the new solar cell.

The company is trying to find a manufacturing partner with mass production capability for the above mentioned cell production technology, developed by Valoe, within the next few years. Worldwide there are only very few advanced manufacturers of high efficiency modules with the power exceeding 290 Wp. Typically the cells are heterojunction (HJ) or interdigitated back contact (IBC) cells that are produced using complex and expensive methods. The price level of modules with HJ or IBC cells is significantly higher than the price level of traditional polycrystalline silicon modules of 250 – 260 Wp. Valoe’s objective is to achieve efficiency of HJ and IBC modules, i.e. more than 290 Wp, using lower-cost structure.

Valoe strives to develop new pioneering CBS based modules as well as components and production solutions for modules. If Valoe succeeds in its goal, future users, component suppliers, manufacturers and developers of CBS based modules will form an ecosystem. If the ecosystem is strong enough it is expected to draw in new manufacturing and other partners who operate in their own local geographical areas. Thus the partners can speed up commercialization of Valoe’s technology remarkably and enhance establishment of the technology in larger geographical area compared to Valoe using only its own resources.

Risks are described in detail in the item “Risk management, risks and uncertainties” of this Interim Report.

REVIEW BY SEGMENTS

- The net sales for the reporting period January - March decreased by 77.8 percent to EUR 0.1 million compared to the corresponding period in 2014. The EBITDA increased to EUR 0.2 million from the previous year’s EUR -0.8 million due to non-recurring income of EUR 0.7 million. Valoe will no longer give written reports on LAS and LCM segments. From 17 September 2014 the LAS and LCM business has been operated by Cencorp Automation Oy.

- FTTK has used its option to purchase the remaining 30 percent of the shares in Cencorp Automation Oy and the parties have signed an agreement on exercising the option in December 2014. However, in terms of the remaining 30 percent the transaction has not yet been closed.

The net sales of Valoe’s Clean Energy segment will be generated by the following four product concepts:

1. Photovoltaic modules and systems

Sales of modules and small photovoltaic systems are probably Valoe’s most visible but in terms of revenue potential the smallest product group. All Valoe’s PV modules are manufactured at the company’s factory in Mikkeli. They are mainly delivered to the company’s distributors and future manufacturing partners. Further, the company provides solar power plants and systems to its customers in Finland.

Current capacity of the company’s Mikkeli factory is designed to annually produce PV modules worth max EUR 6 – 8 million at the current market prices. Thus, the module sales do not form a major part of the sales of the company.

The first module manufacturing recipes fully developed by Valoe has passed the demanding test programs of the German Fraunhofer ISE, which enables Valoe’s modules to be certified in all market areas the company is targeting. After required administrative certification Valoe or its manufacturing partners are able to quote for their modules in competitive tendering where the certification in question is required.

2. Production lines and related components

Typically, manufacturers operating in the developing markets, e.g. in China, could be interested in investing in new production lines. These Valoe’s potential customers are producing traditional H-pattern modules. According to the information available to Valoe many manufacturers are going to start to manufacture next generation modules using the CBS technology. At least one of the world’s biggest manufacturers has already announced in public that it will start using CBS technology in 2015. These kinds of customers usually have their own module manufacturing recipe and require only production equipment or lines. According to Valoe’s estimation typical price of production equipment or a production line for solar modules is EUR 4 – 6 million.

The company is having negotiations for delivering solar module plants or production lines with several potential customers interested in Valoe’s production technology worldwide. The value of the contracts Valoe is negotiating for varies from approximately 2 million Euros to approximately 60 million Euros.

If Valoe is able to achieve market position it is targeting as a supplier of CBS production lines expected development in the market facilitates orders for tens of production lines in the next five years. The company estimates it will get the first order for this kind of production line in 2015.

3. Manufacturing partners

For the moment Valoe is negotiating for cooperation agreements with several potential manufacturing partners who as newcomers on the market would commit themselves to both Valoe’s production technology and module manufacturing recipe. In these cases Valoe would provide a partner with a turnkey delivery project and commit to minority shareholding in a manufacturing company if required. Manufacturing partners operate mainly in developing markets and produce solar energy modules for local and nearby markets. Value of a typical turnkey plant delivery is more than ten million euros. Valoe is aiming to sign at least 10 manufacturing partner contracts in the next five years.

4. Special components

Special components are the most important part in Valoe’s strategy and most remarkable in terms of net sales potential. Valoe’s first component is Conductive Back Sheet (CBS) developed by the company. All back contact modules require conductive back sheet in order to function. One normal size production line using back contact technology needs approximately 300,000 – 500,000 conductive back sheets in a year when operating at full capacity. Based on current estimation, considering price level in the near future, each production line will annually require back sheets worth approximately 5 – 11 million Euros.

In the future Valoe is planning to offer its partners other components too. These components might include e.g. various intelligent components, components relating to energy storages and special silicon wafer technology based on back contact.

The non-binding objectives of Valoe for both market share and the number of partners are ambitious and attainment of the objectives involves significant risks. However, Valoe views it has a technological concept that provides the company a good position to achieve the objectives. Attainment of the objectives is subject to sufficient financing.

During the reporting period January – March the gross investments in the Clean Energy i.e. the continuing operations totaled EUR 0.04 million. No investments were made in the discontinued operations.

OPERATING ENVIRONMENT

Valoe operates in industries applying clean energy technology.

Valoe’s operating environment is global. The company’s customers operating in the clean energy business are companies that provide products and services locally and/or worldwide.

Valoe’s key products and services have been designed for the photovoltaic market. Modern next generation conductive back sheet based solar modules can be manufactured with Valoe’s own module manufacturing recipe and automated production.

In the market, general attitude to the solar energy investments improved clearly already at the end of 2013. The same trend continued the whole year 2014 and still continues at the beginning of 2015. Many solar module manufacturers with solid market position have started to plan investing in capacity, partly to increase the amount of their production capacity and partly to replace production capacity for old H-pattern solar modules.

Valoe has previously announced that it views the focus of its future business will be in the developing countries. This view has further strengthened during the last quarter of 2014 and in 2015. Many of the mega trends such as national climate protection objectives; increasing industrialisation in the developing countries and increasing energy self-sufficiency, favour local manufacturing of solar modules. For the moment major part of the world’s solar module manufacturing is concentrated in China. Modules are manufactured in large labour-intensive units and are delivered to the world market to be installed.

In the developed countries solar electricity is mainly produced in large solar power plants located in open landscape feeding electricity to main grid. In this kind of power plants logistics costs, among others, can be optimized and such parameters as module’s capacity per square meter have not had major importance. In the developing countries logistics costs, in particular, are significant and demand is focused on so called mini grid systems where solar power plants have been decentralized and new local grid is built around them. Grids are connected to each other and to new small power plants as electricity consumption, distribution and production increases steadily. Electricity production is decentralized and electricity is distributed through a new type of grid infrastructure. Small power plants are often so called hybrids where solar power plants are operated together with diesel, water and wind power plants in same grid and where various energy storages can be integrated.

In an environment described above a local producer has much better possibilities to control logistics costs and adopt legislation favouring local production. Many of the partners Valoe is negotiating with have noticed that local production costs are clearly lower than prices of modules imported from China. When modules are produced locally possibilities to control the quality increase, too. In Valoe’s view CBS based modules have typically solid quality which improves module capacity in most of the cases.

MARKET OUTLOOK

Demand for high capacity modules has increased in the EU, US and Japanese markets as well in the last six months. Valoe is having negotiations on delivering solar modules developed by the company to these markets. Valoe views that in the future major part of its modules sold by distributors will be manufactured by Valoe’s manufacturing partners.

As announced on 21 August 2012 Valoe has decided not to give any financial guidance for the time being as the company is in a transition phase to become a company providing solely clean energy solutions. As the transition phase is still partly continuing Valoe does not give any financial guidance either for the 2015.

LONG-TERM OBJECTIVES FOR MANAGING DIRECTOR

Based on Valoe’s experience in the clean energy business so far and knowledge of technological development in the industry as well as the company’s evaluation of market development the Board of Directors of the company has set the long-term financial objectives for Managing on 12 November 2014. The objectives have been disclosed in the Interim Report for the third quarter of 2014. The objectives set for Managing Director should not be considered as the financial guidance.

The long-term objectives set for Managing Director and realization of the company’s business model involve significant risks and the objectives should not be considered as the company’s financial guidance. The long-term objectives set for Managing Director and their attainment fully depend on sufficiency of the company’s short-term financing and success in securing the long-term financing. Negotiations for both short-term and long-term financing are going on. The risks related to the long-term objectives set for Managing Director are described in detail in the item “Risk management, risks and uncertainties” of this Interim Report.

FINANCING

Cash flow from business operations before investments in January – March was EUR -0.1 million (EUR -2.0 million). Trade receivables at the end of the reporting period were EUR 0.8 million (EUR 1.2 million). Net financial items amounted to EUR 0.2 million (EUR 0.4 million).

At the end of March the equity ratio was -148.7 percent (7.1 %) and equity per share was EUR -0.012 (EUR -0.002). The equity ratio including capital loans was -102.5 percent (23.4 %). At the end of the reporting period, the Group’s liquid assets totaled EUR 0.2 million (EUR 0.3 million) and unused export credit limits and bank guarantee limits amounted to EUR 0.0 million (EUR 0.5 million).

The financing situation of Valoe continues to be very tight. The company has reviewed different options for its short-term and long-term financing and for ensuring the company’s strategy to be materialized as planned. Valoe has begun negotiations with domestic and international investors to find an arrangement for its financing. The negotiations, where an investment bank in London assists Valoe are going on.

On 17 March 2015 Valoe announced that it postpones the targeted schedule for signing of the first manufacturing partnership agreement and the long-term financing negotiations from the end of the first quarter of 2015 to the second quarter. Negotiations for manufacturing partnership agreements, deliveries of production lines, strategic deliveries of solar modules and long-term financing arrangement continue as usual and the company continues focusing on finding an overall solution as soon as possible.

Valoe’s financing situation continues to be very tight. Very significant risks are involved in sufficiency of Valoe’s working capital for the next twelve months. Valoe’s management views that the company requires bridging financing until long-term financing arrangement has been secured and the cash flow from the business operations of the company has turned positive. The company is also having ongoing negotiations for arranging short-term bridging financing. The company continues to have a significant deficit in its working capital until the first delivery of production technology for solar modules will start to generate positive cash flow. If the company does not succeed to secure sufficient short-term and long-term financing, the continuity of the company’s operation may be jeopardized.

Valoe has agreed to sell its electronics automation business to FTTK. The business transaction generated working capital to the company but decrease in the company’s financing limits agreed at the sale reduced the transaction’s positive effects on the company’s working capital. Only 70 percent of the transaction has been closed so far.

In terms of the short-term financing of the company, Valoe’s preliminary object is to turn the cash flow before investments with the company's current cost structure into profit as soon as possible.

Should there be delays in getting new orders or should the market conditions weaken compared to the company’s current view, changing orders into sales may slow down and have a major impact in the schedule in which the cash flow of the business operations turns positive. In such case the financing situation of the company would further tighten if all or part of the other on-going financing negotiations would not have been materialized by then.

Another object relating to short-term financing is to obtain bridging loan for the company until the aforesaid long-term financing has been secured. In the company’s view a bridging loan together with cash flow of business operations before investments turning positive would ensure sufficiency of financing for the next twelve months or until long-term financing arrangement has been concluded.

Valoe has agreed with Danske Bank Plc on extending the overdraft facility of EUR 0.95 million available to the company until 30 September 2015. The export credit limit and the bank guarantee limit have expired. For the moment Valoe does not have significant number of projects which would require export credit limits and bank guarantee limits. In the future Valoe is aiming to have necessary export credit limits and bank guarantee limits available when the company has signed new export contracts. Valoe has agreed with Savcor Group Oy on extending the loan period of a convertible bond of ca. EUR 0.364 million until 30 September 2015, with SCI Invest Oy on extending the loan period of a convertible bond of ca. EUR 0.746 million until 30 September 2015, and with Savcor Invest B.V. on extending the loan period of a loan of EUR 1.0 million until 30 September 2015.

Very significant risks are involved in sufficiency of Valoe’s working capital for the next twelve months. In Valoe’s current view, due to decrease in the financing limits from Danske Bank the company requires more bridging financing until long-term financing arrangement has been secured and the cash flow from the business operations of the company has turned positive. The company continues to have a significant deficit in its working capital until the first delivery of production technology for solar modules will start to generate positive cash flow.

In the Auditor’s Report in the Annual Report 2013 the company’s auditor drew attention to the financial risk management with a so called Emphasis of Matter as follows: “Without qualifying our opinion, we draw attention to the basis of preparation of the financial statements and to the note 29. Financial risk management. The financial statements have been prepared under the going concern assumption. The continuity of operations requires the company to be able to obtain supplementary funding and to negotiate changes to the terms of payment during 2015. The company continues negotiating with its major financers and shareholders on measures to strengthen the financing situation until the company’s cash flow is expected to turn positive. The sufficiency of the company’s financing and working capital for the next twelve months involve very significant risks. According to the current view of Valoe’s management the company needs to obtain a bridging loan until long-term financing arrangement has been secured and the cash flow of the business operations of the company has turned positive. Negotiations for bridging financing are going on. The company will have a significant deficit in its working capital until the first delivery of production technology for solar modules will start to generate positive cash flow. If the company does not succeed in securing sufficient short-term and long-term financing, the continuity of the company’s operation may be jeopardized. The valuation of the assets is based on the going concern assumption. If the estimates are not achieved the assets may become impaired.”

If the company does not succeed to secure sufficient short-term and long-term financing, the continuity of the company’s operation may be jeopardized.

RESEARCH AND DEVELOPMENT

The Group’s research and development costs during the January – March period amounted to EUR 0.3 million (EUR 0.4 million) or 127.9 (17.2) percent of net sales. The research and development costs of the Group’s continuing operations during the January – March period totaled EUR 0.3 million (EUR 0.2 million) or 262.3 (30.8) percent of net sales.

INVESTMENTS

Gross investments in the continuing operations during the January – March period amounted to EUR 0.04 million (EUR 0.1 million). Almost all of the investments on the reporting period and all of the investments on the corresponding period were in development costs.

PERSONNEL

At the end of March the Group employed 26 (144) people, out of which 21 persons worked in Finland, 3 persons in China and 2 persons in the USA. During the reporting period the Group’s salaries and fees totaled EUR 0.4 million (EUR 1.2 million).

SHARES AND SHAREHOLDERS

Valoe’s share capital amounted to EUR 3,425,059.10 at the end of the reporting period. The number of shares was 862,472,136. The company has one series of shares, which confer equal rights in the company. Valoe did not own any of its own shares at the end of the reporting period.

The company had a total of 6,184 shareholders at the end of March 2015, and 0.6 percent of the shares were owned by foreigners. The ten largest shareholders held 79.9 percent of the company’s shares and voting rights on 31 March 2015.

The largest shareholders on 31 March 2015

shares percent

1 SAVCOR GROUP OY 328 451 387 38,08

2 SAVCOR GROUP LIMITED 133 333 333 15,46

3 GASELLI CAPITAL OY 95 000 000 11,01

4 KESKINÄINEN ELÄKEVAKUUTUSYHTIÖ ETERA 63 673 860 7,38

5 SAVCOR INVEST B.V. 39 374 994 4,57

6 FRATELLI OY 9 223 250 1,07

7 SCI INVEST OY 6 870 645 0,80

8 HUHTALA KAI 4 787 500 0,56

9 NORDEA PANKKI SUOMI OYJ 4 476 035 0,52

10 VUORENMAA TIMO ANTERO 3 859 860 0,45

Others 173 421 272 20,10

TOTAL 862 472 136 100,00

The members of the Board of Directors and the President and CEO, either directly or through companies under their control, held a total of 469,697,026 shares in the company on 31 March 2015, representing about 54.5 percent of the company’s shares and voting rights. Iikka Savisalo, Valoe’s Managing Director, either directly or through companies under his control, held a total of 374,697,026 shares in the company and 15,852,856 options connected to bond I/2012.

The price of Valoe’s share varied between EUR 0.007 and 0.01 during the January – March period. The average price was EUR 0.009 and the closing price at the end of March EUR 0.008. A total of 31.7 million Valoe shares were traded at a value of EUR 0.3 million during the January – March period. The company’s market capitalization at the end of March stood at EUR 6.9 million.

No share options were granted to the company’s management during the reporting period. On 31 March 2015, the company hold 15,852,856 options connected to bond I/2012 with subscription period ended on 7 December 2014. Options connected to bond I/2012 are held by SCI Invest Oy and Savcor Group Oy. On 31 March 2015 the company had 30,000,000 options connected to bond I/2013 with a subscription period ending on 2 June 2015. The options connected to bond I/2013 are held by Keskinäinen Vakuutusyhtiö Etera and Oy Ingman Finance Ab.

SHARE ISSUE AUTHORIZATIONS IN FORCE

At the extraordinary general meeting held on 29 April 2015 the Board of Directors was authorized to decide on a share issue of max. 900,000,000 shares to enable the company to realize its financial arrangements fast after financial negotiations have been finished. Simultaneously the general meeting revoked all previous authorizations.

THE MAJOR EVENTS ON THE REPORTING PERIOD

The events presented below comprise a summary of the stock exchange releases as they were disclosed by the company on the reporting period. Thus the trade name Cencorp is still used in the texts even though the company’s trade name was changed to Valoe on 13 May 2015 and tenses refer to the time of disclosure.

16.2. 2015: WRITE-DOWNS IN THE ASSETS RELATED TO THE FACTORY IN BEIJING

In the reporting period January – December 2014 a write-down of totally EUR 6.2 million was made in the continuing operations in the fixed assets and inventories of the Beijing factory. On 20 August 2014 the Board of Directors of the company decided to make a write-down of EUR 3.2 million in the assets related to the factory and the production machinery in Beijing and transferred the CBS production to its factory in Mikkeli. As Cencorp has not been able to find a buyer for the production of RFID components and flexible electronics for mobile phones who could utilize the technology in its production the company made another write-down of EUR 3.0 million in the assets related to its factory in Beijing in the Financial Statement for 2014. After the write-downs the value of the Beijing factory has been fully written down. However, despite the write-down Cencorp continues to take actions to sell the technology and production machinery related to the production of RFID components and flexible electronics for mobile phones.

19.2.2015: THE SHARES OF CENCORP CORPORATION TO OBSERVATION SEGMENT

Cencorp Corporation published on 18 February 2015 a Financial Statement Release 2014. On the grounds of the Financial Statement Release there is a material adverse uncertainty in respect of the company’s financial position. Nasdaq Helsinki transfers the shares of Cencorp Corporation to the Observation segment on the grounds of the Rules of the Exchange (rule 2.2.8.2 article (vi)). Rules of the Exchange rule 2.2.8.2 article (vi): "There is a material adverse uncertainty in respect of the company’s financial position." The purpose of the observation segment is to alert the market to special facts and circumstances or actions pertaining to the subject issuer or security. The observation segment is a subset of the Official List.

2.3.2015: CHANGE IN THE SCHEDULE FOR THE EXECUTION OF THE SHARE TRANSFER AGREEMENT BETWEEN FTTK AND CENCORP FOR THE REMAINING 30 PERCENT OF ALL THE SHARES IN CENCORP AUTOMATION OY

On 2 March 2015 Cencorp announced that it has previously estimated that the share transfer of the remaining 30 percent of all the shares in Cencorp Automation Oy between FTTK Company Limited (”FTTK”) and Cencorp will be completed by 1 March 2015. The entire purchase price has been paid but the closing of the transaction has been postponed. The change in the schedule relates to division of costs of an unfinished customer project in electronics automation business between Cencorp and FTTK. The parties are aiming to close the transaction as soon as possible.

17.3.2015: THE ESTIMATED REALIZATION OF CENCORP’S FINANCING NEGOTIATIONS AND THE FIRST MANUFACTURING PARTNERSHIP AGREEMENT WILL BE POSTPONED TO THE SECOND QUARTER – THE COMPANY’S FINANCING SITUATION CONTINUES TO BE VERY TIGHT

On 17 March 2015 Cencorp announced that it has previously estimated that the company’s long-term financing arrangement will be secured during the first quarter of 2015, and that the schedule of the long-term financing negotiations will be highly depended on whether the company succeeds to sign its first manufacturing partnership agreement on solar module manufacturing technology during the first quarter of 2015. Further, Cencorp has previously stated that should the signing of the first manufacturing partnership agreement be delayed the long-term financing arrangement will be delayed too and the company will have to seek for bridge financing, and it is not yet secured that the company succeeds in securing bridge financing by the end of the first quarter.

It is still possible to sign the first manufacturing partnership agreement and to get a relating order by the end of the first quarter, but the company views that it is no longer probable that the company is able to secure project financing for an order in this schedule. Thus the company postpones the targeted schedule for signing of the first manufacturing partnership agreement and the long-term financing negotiations from the end of the first quarter of 2015 to the second quarter. Negotiations for manufacturing partnership agreements, deliveries of production lines, strategic deliveries of solar modules and long-term financing arrangement continue as usual and the company continues focusing on finding an overall solution as soon as possible.

Cencorp’s financing situation continues to be very tight. Very significant risks are involved in sufficiency of Cencorp’s working capital for the next twelve months. Cencorp’s management views that the company requires bridging financing until long-term financing arrangement has been secured and the cash flow from the business operations of the company has turned positive. The company is also having ongoing negotiations for arranging bridging financing. The company continues to have a significant deficit in its working capital until the first delivery of production technology for solar modules will start to generate positive cash flow. If the company does not succeed to secure sufficient short-term and long-term financing, the continuity of the company’s operation may be jeopardized.

25.3.2015: CENCORP POSTPONES THE RELEASE OF ITS ANNUAL REPORT

In Cencorp’s stock exchange release regarding the financial information in 2015 the company announced that it will release its official annual report for 2014 today on 25 March 2015. Cencorp’s Board of Directors has resolved to postpone the release of the annual report because an Auditor’s report is not yet available. The annual report has to be released by 31 March 2015. The annual report figures are not expected to change from the Financial Statement Release issued on 18 February 2015.

31.3.2015: CENCORP HAS APPLIED FOR EXEMPTION PERMIT FROM THE FINNISH FINANCIAL SUPERVISORY AUTHORITY TO THE DEADLINE OF THE DISCLOSURE OF THE FINANCIAL STAMENT AND THE REPORT OF THE BOARD OF DIRECTORS

Pursuant to Chapter 7, Section 18, Subsection 2 of the Finnish Securities Market Act Cencorp has applied for an exemption permit from the Finnish Financial Supervisory Authority to the deadline of the disclosure of the Financial Statement and the Report of the Board of Directors to disclose its Financial Statement and the Report of the Board of Directors for the financial period ended on 31 December 2014 latest on 30 April 2015 instead of the deadline of three months pursuant to Chapter 7, Section 5 of the Finnish Securities Market Act. The Finnish Financial Supervisory Authority granted Cencorp an exemption permit pursuant to the company’s application and Cencorp disclosed its Financial Statement and the Report of the Board of Directors on 30 April 2015.

31.3.2015: CENCORP HAS AGREED WITH DANSKE BANK PLC ON AMENDMENT OF THE OVERDRAFT FACILITY, AND ON EXPIRY OF THE EXPORT CREDIT LIMIT AND THE BANK GUARANTEE LIMIT; AND WITH SAVCOR GROUP OY, SAVCOR INVEST BV AND SCI INVEST OY ON TRANSFERRING THE LOAN MATURITY DATES

Cencorp has agreed with Danske Bank Plc on extending the overdraft facility of EUR 0.95 million available to the company until 30 September 2015. The export credit limit and the bank guarantee limit have expired. For the moment Cencorp does not have significant number of projects which would require export credit limits and bank guarantee limits. In the future Cencorp is aiming to have necessary export credit limits and bank guarantee limits available when the company has signed new export contracts. On 19 March 2015 Cencorp announced that it postpones the targeted schedule for signing the first manufacturing partnership agreement from the end of the first quarter of 2015 to the second quarter. Cencorp has agreed with Savcor Group Oy on extending the loan period of a convertible bond of ca. EUR 0.364 million until 30 September 2015, with SCI Invest Oy on extending the loan period of a convertible bond of ca. EUR 0.746 million until 30 September 2015, and with Savcor Invest B.V. on extending the loan period of a loan of EUR 1.0 million until 30 September 2015.

THE MAJOR EVENTS AFTER THE END OF THE REPORTING PERIOD

The events presented below comprise a summary of the stock exchange releases as they were disclosed by the company after the end of the reporting period. Thus the trade name Cencorp is still used in the texts even though the company’s trade name was changed to Valoe on 13 May 2015 and tenses refer to the time of disclosure.

7.4.2015: CENCORP POSTPONES ITS ANNUAL GENERAL MEETING TO BE HELD LATER ON AND GIVES A NOTICE TO AN EXTRAORDINARY GENERAL MEETING TO BE HELD ON 29 APRIL 2015 TO HANDLE THE BOARD’S PROPOSALS FOR CHANGING THE COMPANY’S NAME TO VALOE OYJ, AMENDING THE COMPANY’S LINE OF BUSINESS TO CLEAN ENERGY AND FOR AUTHORIZATION FOR SHARE ISSUE

Deviating from the previously announced, Cencorp’s Board of Directors has today resolved to postpone the annual general meeting to be held later on. As previously announced an annual general meeting was supposed to be held on 29 April 2015. The reason for postponing the meeting is that the company’s financial statement for the financial year 2014 is not yet available. The Finnish Financial Supervisory Authority has granted Cencorp an exemption permit to deviate from the deadline of the disclosure of the Financial Statement and the Report of the Board of Directors pursuant to the Finnish Securities Market Act. According to the exemption permit, Cencorp has to publish the Financial Statement and the Report of the Board of Directors on 30 April 2015 at latest.

Cencorp’s Board of Directors has today resolved to give a notice to an extraordinary general meeting to be held on 29 April 2015 to handle the following proposals:

1. Amendment to the Articles of Association, article 1 The trading name and domicile of the company

The Board of Directors proposes to the general meeting that the Article 1 in the company’s Articles of Association is amended as follows: ”1§ The trading name and domicile of the company: The trading name of the company is Valoe Oyj, Valoe Abp in Swedish and Valoe Corporation in English. The company’s domicile is Mikkeli.”

The trading name change is based on Cencorp Corporation’s commitment to change its trading name pursuant to the agreement between Cencorp and FTTK Company Limited regarding the automation applications business transaction. Further, the Board of Directors views that the trading name Valoe describes well the company’s clean energy business.