Centrosolar Group AG / Key word(s): Restructure of Company/Quarter Results 17.10.2013 16:52 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Munich, October 17, 2013. The Management Board of CENTROSOLAR Group AG and Centrosolar AG as well as the directors of Centrosolar Sonnenstromfabrik GmbH have each taken the decision today to apply to the Local Court of Hamburg, the court responsible in this instance, for the opening of protective shield proceedings in order to achieve swifter implementation of the restructuring plans along with a fresh direction in the corporate strategy. It had originally been planned to address reorganisation and debt clearance through continuing business operations. However the improvement in the market conditions specifically from CENTROSOLAR's perspective, which is still expected following the introduction of anti-dumping measures by the EU and the elimination of current overcapacity in the market, is progressing significantly more slowly than had been anticipated; as a result that the Management Board and directors of the three companies now believe there are clear advantages in a reorganisation using the broader scope of protective shield proceedings. The parts of the company affected by the protective shield proceedings will - once the proceedings have been approved by the court - continue to be run by the current Management Board and directors. Business operations at the Hamburg, Wismar, Paderborn, Kempten and Munich sites will continue without restriction. All other domestic and international subsidiaries will fundamentally continue to operate as previously and will not be involved in the proceedings. The subsidiaries, in particular Renusol GmbH, Centrosolar America Inc. and Centroplan GmbH, are not part of the protective shield proceedings and continue to exist unchanged. These companies do not have any material borrowings from third parties, are operating profitably or close to profitability, and are fully financed. The instrument of protective shield proceedings in self administration should enable CENTROSOLAR to restructure itself on the basis of a workable reorganisation and future concept. During the 'protective shield' phase, which is limited to three months, the above mentioned CENTROSOLAR companies remain fully able to act, advised by a preliminary administrator. Goal is to clear the debt of these parts of the company and to refocus on their profitable core areas. According to provisional calculations CENTROSOLAR achieved revenue of EUR 27.5 million in the third quarter of 2013. This figure was 40 % down on the corresponding figure for the previous year - EUR 46.1 million - and above all fell short of the expectations on which the restructuring plan was based. For the first nine months CENTROSOLAR thus achieved a provisional revenue total of EUR 85.0 million (previous year EUR 145.0 million). In line with the weaker revenue, the result too fell short of expectations. According to initial calculations, third-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) came to EUR -4.4 million (previous year EUR -3.1 million), totalling EUR -18.2 million for the first nine months (previous year EUR -7.0 million). CENTROSOLAR shares and the CENTROSOLAR bond remain tradeable. The planned conversion of the BondM-listed bond has provisionally been suspended. The next steps in this respect will be decided upon in the restructuring process. --------------------------------------------------------------------------- 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: [email protected] 17.10.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- 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: [email protected] Internet: http://www.centrosolar-group.de ISIN: DE000A1TNS13, DE000A1E85T1, WKN: A1TNS1, A1E85T, Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------