Cencorp - Company Announcement

Summary of Cencorp's financing negotiations

Cencorp Corporation  Stock Exchange Release 30 March 2012 at 17:15 Finnish time

SUMMARY OF CENCORP'S FINANCING NEGOTIATIONS

Cencorp's auditor has in the draft Auditor's Report, issued on 29 March 2012,
provided a so-called Emphasis of Matter, concerning the company's financing
position. The draft Auditor's Report is of a standard format. Cencorp will
publish the final Auditor's Report immediately upon its completion. The company
currently believes that the draft Auditor's Report, issued on 29 March 2012,
will not be changed. In the Emphasis of Matter, the auditor states the
following: 

“Emphasis of Matter

Without qualifying our opinion, we draw attention to the basis of preparation
of the financial statements and to Note 28: 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
2012. The company has initiated discussions with its major financiers and
shareholders on measures to strengthen the financing position until the
company's cash flow is expected to return to positive. The company believes
that these measures will secure the sufficiency of working capital for the next
twelve (12) months. However, should the company fail to arrange financing, it
is possible that the company will not be able to realize its assets and repay
its liabilities within usual business operations to a sufficient extent or
quickly enough. This would jeopardize the company's operations in their current
form.” 

In Cencorp's view, the company's financing position will remain challenging,
but the situation has improved since the end of 2011 and the publication of the
financial statement release on 17 February 2012 as a result of the following
measures, through which Cencorp believes that the company has secured
sufficient working capital for the next twelve (12) months. 

The Extraordinary General Meeting authorized in its meeting on 30 January 2012
the Board of Directors to decide on share issues, share options and other
share-entitling rights referred to in Chapter 10, Section 1 of the Limited
Liability Companies Act. The Board justified the granting of the authorization
with potential need for additional financing, for example for investments and
working capital, with the use of equity derivatives and instruments for
corporate transactions and incentive systems. This authorization gives the
Board of Directors the possibility to act quickly if required, for example, to
finance investments and to increase working capital through equity
arrangements. 

The company has initiated discussions with its major financiers and
shareholders on measures to strengthen the financing position until the
company's cash flow is expected to return to positive. 

Cencorp announced on 28 March 2012 that its Chinese subsidiary Savcor Face
(Beijing) Technologies Co., Ltd carried out a sale-leaseback of its plant
building in Beijing with a real-estate investor in the amount of RMB 38.5
million, i.e. around EUR 4.7 million. The company will recognize a gain of
approximately EUR 1.1 million on the real estate transaction. Cencorp used the
consideration received for the property to repay the Bank of China a loan of
RMB 32 million, i.e. some EUR 3.9 million. 

Cencorp announced on 31 December 2011 that the maturity of a loan of
approximately EUR 1.2 million from Savcor Group Oy, the company's main owner,
will be extended to 30 June 2012. At the same time Cencorp announced that it
had been notified by the Australian company Savcor Group Ltd that the due date
for the unpaid share of around EUR 560,000 of the purchase price for the Face
(Telecom) corporate transaction will be extended to the end of March 2012.
Cencorp has been notified on this date that the due date will be extended to 30
April 2013. 

On 31 January 2012 Cencorp announced that the company has agreed with AC
Finance BV, a subsidiary of Ahlström Capital Oy, on transferring the maturity
of a loan of one million euro from the end of January to 30 June 2012. At the
same time the company announced that, due to the brighter market outlook
particularly in the North American markets, Cencorp had decided to end the
temporary lay-offs that started in September of 2011 and affected all of the
company's employees in Finland. Cencorp expected the Group's order book to
develop favorably over the next few months. The company was also seeking to
increase its investments in product development, especially in the area of
renewable energy technologies. 

Summary of the company's financial position

The company has either paid off or agreed on the transfer of all major loan
installments to the end of June 2012 at minimum. 

Cencorp's main financiers are long-term investors or shareholders in the
company. The company has no reason to expect the further transfer of loan
maturities to cause such problems which could jeopardize the company's current
operations. 

The company has been authorized by the Annual General Meeting to issue at most
100,000,000 new shares. The Board thus has the authorization to act quickly to
improve the company's financing position and to finance investments. 

Mikkeli, 30 March 2012

CENCORP CORPORATION

BOARD OF DIRECTORS



For more information:
CEO Mats Eriksson, tel. +358 400 358 982, mats.eriksson@cencorp.com

Distribution:
NASDAQ OMX, Helsinki
Main media
www.cencorp.com

Cencorp Corporation is a leading provider of industrial automation solutions.
The equipment included in the product portfolio designed for depaneling,
odd-form assembly, testing and laser materials processing substantially
improves the efficiency of customers' production. The product range also
includes EMI shielding solutions, flexible circuits, decorations and RFID
antennas. Cencorp's customers are automotive electronics manufacturers and
manufacturers operating in telecommunications, industrial automation and EMS.
Cencorp's head office is located in Mikkeli, Finland. The company is part of
the Finnish Savcor Group.