DGAP-Adhoc: CENTROSOLAR announces preliminary results for first quarter: operating performance as scheduled - implementation of restructuring measures progressing

Centrosolar Group AG / Key word(s): Preliminary Results/Quarter Results

10.05.2013 11:05

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, May 10, 2013. According to preliminary, unaudited calculations
CENTROSOLAR Group AG sold 20.4 MWp of photovoltaic modules and systems in
the first quarter. That represents a decrease of 25 % on the previous year
(27.4 MWp). This fall is almost exclusively attributable to market
developments in Germany. A special boom there in the previous year, in
anticipation of a change in the feed-in tariffs from April 1, 2012 led to
relatively high sales. This year, the wintry conditions lasting into March
moreover damped demand for solar systems. According to statistics from the
Federal Network Agency, new installations of small and medium-size
photovoltaic systems up to 500 kWp in the first quarter showed a slump of
around two-thirds compared with the previous year.

Although the development in module prices stabilised in the course of the
first three months, the price level for standard modules was on average 25
% below the level of the prior-year quarter. The group's total revenue for
the continuing operations of EUR 24.5 million was correspondingly 46 % down
on the prior-year figure (EUR 45.2 million). In line with the general
market development, the share of revenue achieved in Germany also fell from
39.1 % in the prior-year quarter to now 21.9 %.

Despite the considerable pressure on prices, the gross profit margin of
27.2 % could be held almost at the previous year's level (28.0 %).
Nevertheless the slump in revenue meant the gross profit available to fund
running costs was down 47 % compared with the previous year (EUR 12.7
million) at EUR 6.7 million.

The Management Board of CENTROSOLAR approved a comprehensive restructuring
programme in February. This programme is resulting in considerable
non-recurring expenses in particular for legal and consultancy services and
as a result of the costs of personnel cutbacks. Provisions amounting to EUR
4.1 million have been created to meet the anticipated overall costs of
restructuring. As many measures have already been implemented, an
additional EUR 0.5 million in restructuring expenses is already included in
the first-quarter operating costs.

After elimination of these non-recurring expenses for restructuring, the
operating costs (personnel costs, other operating expenses) less other
income showed a significant year-on-year fall in the past quarter, from EUR
15.3 million to EUR 11.7 million, substantially attributable to
cost-cutting measures already implemented.

This development has compensated at least in part for the decline in gross
profit: the EBITDA operating result before restructuring costs came to EUR
-4.9 million (previous year EUR -2.7 million). After deduction of
restructuring costs along with depreciation and amortisation, there
remained a loss of EUR -11.0 million at EBIT level (prior-year loss EUR
-4.1 million). The net earnings per share came to EUR -0.64 (previous year
EUR -0.26).

The cash flow from operating activities totalled EUR -10.7 million
(previous year EUR -9.0 million). As well as the operating losses, this
item reflected the coupon payment on the bond of EUR 3.5 million due each
February. The cash inflow from the sale of a major project in Spain
originally expected for the first quarter was moreover not realised until
May.

The economic performance in the first quarter is broadly in line with the
expectations on which the restructuring agreement concluded with the
financing banks has been based. Implementation of the operational
restructuring measures remains on track. The sale of Centrosolar Glas was
moreover in line with the assumptions in the valuation prepared for the
planned restructuring of the balance sheet.

The date for publication of final financial figures for the first quarter
will be announced as soon as auditing of the 2012 Annual Report has been
completed.

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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 over 700 employees in Europe and North
America and annual revenue of EUR 189 million (2012) for the continuing
operations. Its product range comprises solar integrated systems, modules,
inverters and mounting systems. Over two-thirds of revenue is generated
internationally. There are CENTROSOLAR branches such countries as Italy,
France, Greece, Switzerland, the Netherlands, the UK, Canada and the USA.
CENTROSOLAR manufactures modules at a plant in Wismar (Germany). The module
production plant certified to DIN ISO 9001:2008 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

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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, DE000A1E85T1,
WKN: 514850, A1E85T,
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart

End of Announcement DGAP News-Service

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