centrotherm reports on 2012 and 2013 abbreviated financial years
- Revenue mirrors collapse in photovoltaic capital goods market
- High impairment charges and extraordinary items burden results
- Restructuring and efficiency program cuts fixed costs
- Strengthened liquidity and equity base
The revenue of the centrotherm Group amounted to EUR 69.2 million in its 2013 reporting period (October 1, 2012 until May 31, 2013), compared with EUR 149.2 million during the first nine months of 2012 ("2012 reporting period"). This marked revenue decline is due to the sharp contraction in the photovoltaic equipment market that impacted not only centrotherm but also its competitors. The export share dropped to 80.2 % in the 2013 reporting period and 67.1 % in the 2012 reporting period, compared with 95.4 % in the 2011 financial year. Total operating performance amounted to EUR 68.6 million in the 2013 reporting period, compared with EUR 128.2 million in the 2012 reporting period. Earnings before interest, tax, depreciation and amortization (EBITDA) stood at a loss of EUR 25.3 million in the 2013 reporting period. Besides the lower operating performance, EBITDA was especially burdened by extraordinary items connected with the achieved restructuring. EBITDA in the 2012 reporting period was also principally burdened by a high level of valuation adjustments applied to inventories, and amounted to a loss of EUR 107.8 million. The Group incurred an operating loss before interest and tax (EBIT) of EUR 29.7 million in the 2013 reporting period, and a loss of EUR 375.8 million in the 2012 reporting period. EBIT in the 2012 reporting period was particularly hit by a high level of depreciation, amortization and impairment charges totaling EUR 268.0 million. Most of this amount reflected EUR 243.7 million of impairment charges. These impairment charges arose from a new appraisal in the measurement of intangible assets and of property, plant and equipment following the significant collapse in the photovoltaic market. The Group incurred a total consolidated net loss of EUR 77.4 million in the 2013 reporting period, compared with a total consolidated net loss of EUR 372.1 million in 2012 reporting period.
New order intake and order book position
Total new order intake amounted to EUR 163.2 million in the 2013 reporting period. Of this amount, EUR 123.2 million was attributable to the Silicon segment, EUR 35.4 million to the Photovoltaics & Semiconductors segment and EUR 4,5 million to the Thin Film & Customized Systems segment. The order book position amounted to EUR 305.7 million as of May 31, 2013 reporting date.
Emergent success of the restructuring
The centrotherm Group restructured itself in the 2012 and 2013 reporting period, focusing on its strengths in production technology and processes for the photovoltaic, semiconductor and microelectronics industry. "With our concentration on our core competencies, we aim to return centrotherm to a strong position for the future, and to further expand our market position: as a technology leader for the photovoltaic industry and as a specialist for the semiconductor and microelectronics industry," emphasized the members of the Management Board. In this context, the semiconductor and microelectronics area is to be further diversified and expanded as the Group's second pillar in order to better offset future negative market trends, as currently in photovoltaics. centrotherm has also utilized this reorganization and restructuring phase to create a streamlined and efficient structure and organization with optimized corporate processes for future operations.
Positive equity and available liquidity form basis for the future
With the coming into legal force of the insolvency plan, creditors assigned 70 % of their receivables (determined as unconditional and without restriction) to Sol Futura Verwaltungsgesellschaft mbH in mid-May 2013. Sol Futura contributed these receivables as non-cash capital contributions to centrotherm photovoltaics AG. These receivables have expired as a consequence, allowing the company to deleverage considerably. The remaining 30 % of the receivables are deferred until the end of 2015 on a non-interest-bearing basis. Mainly due to the contribution of these insolvency receivables, equity improved considerably, by EUR 56.7 million, from EUR -7.3 million as of September 30, 2012 to EUR 49.4 million as of May 31, 2013.
The Group has liquidity of around EUR 110.0 million as of October 21, 2013 (May 31, 2013: EUR 108.4 million), which is available to finance the operating business as well as for planned investments, especially in research & development. R&D work remains for centrotherm one of the most important pillars to retain and extend its market position.
"As soon as the global market for production technology for the photovoltaic industry starts to show a significant recovery we are confident that centrotherm will benefit accordingly, and that a positive earnings trend is possible over the next two years," is how the Management Board summarized the outlook, before noting: "We are convinced of the photovoltaic market's positive long-term trend as electricity derived from solar plant will enjoy a fixed share of the energy mix over the coming decades. A significant target of our strategy is to help to structure this trend technologically, and to drive it further ahead."
Note: Due to the opening of insolvency proceedings in the company's own administration in October last year and the termination of these proceedings at the end of May 2013, the company reports on the basis of abbreviated financial years from January 1 until September 30, 2012 and October 1, 2012 until May 31, 2013. The report for both periods can be downloaded from our website www.centrotherm.de within the Investor Relations area.
About centrotherm photovoltaics AG
centrotherm has been developing and realizing innovative thermal solutions for over 50 years. As a leading and globally operating technology group, we offer production solutions for the photovoltaic, semiconductor and microelectronic industries.
The continuous further development of our successful solutions in thermal processing and coating, such as for manufacturing crystalline solar cells and power semiconductors, form the basis for our successful partnerships with industry, research and development.
Our customers worldwide appreciate our production systems' process stability, scalability and availability in mass production. Above and beyond this, our work is distinguished by the fact that we create high-end process technology solutions which are specific for our customers and tailored to their requirements, and the fact that we are outstanding in system building.
We jointly confront the daily challenges of setting new trends, maximizing the efficiency of producing, for example, solar cells and semiconductors, and, coupled with our long machine durations, of securing investments.
In this way, we generate valuable competitive advantages for our customers through targeted innovations to processes and production solutions.
Our more than 800 staff worldwide are committed to the further development of high-tech solutions for key markets.
centrotherm photovoltaics AG
German Securities Identification Number (WKN): A1TNMM (bearer shares); A1TNMN (unlisted shares from the non-cash capital increase)
ISIN: DE000A1TNMM9 (bearer shares); DE000A1TNMN7 (unlisted shares from the non-cash capital increase)
Admitted to the Regulated Market/General Standard, Frankfurt Stock Exchange
Corporate domicile: Germany
Manager Public & Investor Relations
Tel: +49 7344 918-6304