2014-05-14 14:15:00 CEST
2014-05-14 14:15:04 CEST
REGULATED INFORMATION
Cencorp - Interim report (Q1 and Q3)
CENCORP CORPORATION, INTERIM REPORT JANUARY - MARCH 2014
Cencorp Corporation Interim Report
14 May 2014 at 15.15 Finnish time <span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">CENCORP CORPORATION, INTERIM REPORT JANUARY - MARCH
2014</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The net sales of Cencorp Corporation (“Cencorp”) for
the reporting period January - March 2014 was EUR 2.4 million (EUR 2.5 million
in 2013). The operating profit of continuing operations was EUR -1.7 million
(-0.7), profit for the period EUR -2.1 million (-0.7), earnings per share were
EUR -0.003 (-0.001) and EBITDA was EUR -1.2 million (-0.2).</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Major part of the operating loss (EUR 0.8 million) is
created at the Beijing manufacturing plant, part of the Cencorp Clean Energy
segment. Production volumes of mobile phone components have decreased
continuously and were clearly at too low level during the first quarter of the
year. At the Beijing factory the company is, as soon as possible, trying to
close production of all products excluding the Conductive Back Sheets (CBS).</span></span><strong style="font-size: 11pt;"><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">OVERVIEW</span></span><span style="font-size:11pt;font-family:Courier New, Courier,
monospace;">Cencorp belongs to the Finnish Savcor Group Corporation (“Savcor”).
Savcor Group companies owned approximately 60.8 percent of the Cencorp shares
on 31 March 2014.</span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">More information on principle activities and events
during the reporting period can be found in the stock exchange releases
published on Cencorp's website at www.cencorp.com. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The Interim Report has been drawn up in compliance with
the IAS 34 Interim Financial Reporting standard. In the Interim Report Cencorp
has applied the same accounting principles as in the Annual Report 2013. The
Interim Report has not been audited.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">FINANCIAL DEVELOPMENT</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp reports on the results of three business
segments. The segments are Laser and Automation Applications (LAS), Life Cycle
Management (LCM) and Cencorp Clean Energy (CCE). CCE also includes the former
Special Components segment.</span></span><span style="font-family:Courier New,
Courier, monospace;"><span style="font-size:11pt;">Cencorp's segment
information is based on the management's internal reporting and on the
organisation structure of the company. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The figures in brackets are comparison figures for the
corresponding period in 2013, unless stated otherwise. Since the shutdown of
the factory in Guangzhou, China, and the exit from decoration business Cencorp
reports on corresponding figures in the discontinued operations in the</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">comparison figures for 2013. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">January - March 2014 </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">- Cencorp Group's net sales decreased by 2.2 percent to
EUR 2.4 million (EUR 2.5 million).</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">- EBITDA was EUR -1.2 million (EUR -0.2 million).
- Operating profit was EUR -1.7 million (EUR -0.7 million).</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">- The Group's profit before taxes was EUR -2.1 million
(EUR -0.7 million).</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">- Profit for the period was EUR -2.1 million (EUR -0.7
million).
- Earnings per share were EUR -0.003 </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">(EUR -0.001) and </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">diluted earnings per share EUR </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">-0.003 (EUR -0.001). </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">- Net sales of the Laser and Automation Applications
segment (LAS) increased by 39.8 percent to EUR 1.1 million (EUR 0.8 million)
and operating profit was EUR -0.5 million (EUR -0.6 million). The segment's
EBITDA was EUR -0.4 million (EUR -0.4 million).</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">- Net sales of the Life Cycle Management segment (LCM)
decreased by 9.8 percent to EUR 0.8 million (EUR 0.9 million) and operating
profit was EUR 0.03 million (EUR 0.1 million). The segment's EBITDA was EUR 0.1
million (EUR 0.1 million). </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">- Net sales of the Cencorp Clean Energy segment (CCE)
decreased by 35.2 percent to EUR 0.6 million (EUR 0.9 million) due to reduction
in antenna production at the Beijing factory and operating profit was EUR -1.2
million (EUR -0.2 million). The segment's EBITDA was EUR -0.8 million (EUR 0.1
million).</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">MANAGING DIRECTOR IIKKA SAVISALO'S REVIEW</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In the near future, Cencorp's success will depend on
the development of the Cencorp Clean Energy segment and on Photovoltaic (PV)
related business, in particular. There are high expectations for this business.
Cencorp is having several negotiations on delivering whole solar module plants
or production lines to partners interested in the company's production
technology. The negotiations are still going on. The company continues to
streamline its traditional laser and automation business (LAS and LCM) to
improve profitability and enable restructuring. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">During the first quarter of the fiscal year the company
carried out a successful share issue which secured the financing for
implementing the first phase of the business plan as planned. Cencorp has
started to review financing options to carry out the next phase of the business
plan. Further, the company continued developing its operations to be able to
utilize more and more mass customizing in the deliveries of automationsolutions in the future. During the first quarter Cencorp also reviewed its
operations thoroughly, based on which the operations will be restructured to
improve profitability. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The Cencorp product family for customers operating in
the automation business has just been renewed and there are no immediate needs
for developing new equipment. Thus, the company focuses the major part of its
research and development investments on the clean energy solutions and on the
solutions increasing the profitability of the automation product family
business. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Risks are handled in more detail in the item “Risk
management, risks and uncertainties” of this Interim Report.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">REVIEW BY SEGMENTS</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The net sales for the reporting period January - March
decreased by 2.2 percent to EUR 2.4 million compared to the corresponding
period in 2013. The EBITDA decreased to EUR -1.2 million from the previous
year's EUR -0.2 million. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">CENCORP CLEAN ENERGY (CCE)</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In the CCE segment deliveries of the mobile phone
components continued to decrease. The delivery volumes were clearly below the
break-even point. As Cencorp has previously announced the production of the
mobile phone components is no longer part of the company's core business.
Cencorp is reviewing its options to exit the production of these components as
soon as possible and at the end of the reporting period the company commenced
effective actions to review options for the exit. At the beginning of the
second quarter almost all of the production of unprofitable products were
closed down at the Beijing factory. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Test deliveries of Cencorp's Conductive Back Sheets
(CBS) for solar modules, produced at the Beijing factory, were continuing for
Chinese module manufacturers. However, the CBS business did not yet generate
any remarkable net sales during the reporting period. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The Cencorp Clean Energy segment is the key factor of
the company's growth strategy and the company continued investing in it
according to the company's strategy. During the reporting period the gross
investments in the Cencorp Clean Energy totaled EUR 0.1 million as the other
investments amounted to EUR 0.05 million. The company expects to generate
remarkable net sales from the new business in the financial year 2014.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In the first quarter of the year Cencorp signed a
significant Term Sheet with Vikram Solar that is one of the biggest module
manufacturers in India. This agreement got a lot of attention in the global
business journals.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">During the reporting period Cencorp has signed several
minor contracts on delivering solar modules. Additionally Cencorp is
negotiating on delivering whole solar module plants or production lines to
partners interested in Cencorp's production technology. The negotiations are
still going on. The value of the contracts Cencorp is negotiating on varies
from ca. four million Euros to ca. 20 million Euros. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">LASER AND AUTOMATION SOLUTIONS SEGMENT
(LAS)</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The renewal of Cencorp's automation product families
launched in the last quarter of 2013 introduced totally new and significantly
improved depaneling solutions and odd-form assembly for special components in
the market. The new products were brought into the market at the end of 2013.
With the new products Cencorp's LAS business segment started the fiscal year
with order backlog amounting close to a new record, EUR 2.7 million. However,
the sales have not been as good since then at the beginning of the year. This
is partially due to fluctuation in demand which is typical of the industry.
Another reason is that many of the Cencorp customers interested in the new
odd-form assembly solution are waiting for the first reference delivery that
will be launched in May 2014. The new odd-form assembly solution will replace
the robots of the Cencorp HiSac product line that are coming to the end of
their economic life. There are still hundreds of these robots being used by
Cencorp's customers and according to the company's view major part of the
robots will be replaced over the next five years. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">LIFE CYCLE MANAGEMENT (LCM)</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The net sales of the LCM segment decreased but the
EBITDA stayed positive. In the next few months the company will focus on
improving the business of the LCM segment, in particular. Cencorp has a wide
global customer base which gives the company very good opportunities to offer
its customers extra services. Cencorp's automation solutions are known to be
reliable as well as for their extremely long economic lifetime. The life time
of Cencorp's production equipment is clearly longer than the lifetime of
software and electronics components used in them in general, thanks to the
equipment's strong structure. This makes refurbishment of equipment
economically reasonable. Cencorp's customers have an opportunity to refurbish
their equipment and to extend the lifetime of their equipment with low cost and
thus decrease the cost per processed product and component remarkably. Cencorp
believes that the future growth in the LCM business segment will be based on
the sales of these refurbishment and modernization services in particular. The
company will restructure its operations to finally start the targeted growth in
the LCM segment. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">OPERATING ENVIRONMENT</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp operates in industries applying electronics and
clean energy technology.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp's operating environment is global. The
company's traditional customers in the electronics industry as well as new
customers operating in the clean energy business are companies that provide
products and services worldwide. 97.1 percent of Cencorp's automation products
and services are either exported from Finland or they are manufactured by
Cencorp in the US and in China. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">MARKET OUTLOOK</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In Cencorp's LAS segment the short and middle-term
outlook is reasonable. Even though the net sales in the first quarter did not
reach the level of the net sales of the last quarter the amount of Cencorp's
quotations has stayed at a reasonable level as Cencorp's customers are
evaluating the company's new products introduced in the market at the end of
last year. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The new industrial automation solutions Cencorp brought
in the market in the last quarter of 2013 give the company's long-term
customers a good opportunity to bring up to date the automation applications
bought at the beginning of the 21st century. After an upgrade they meet the
latest technological requirements. There are still hundreds of these automation
applications in the market that are coming to the end of their life cycle. The
high quality and long economical life time of Cencorp's automation applications
have created reasonable large and loyal customer base for Cencorp. The company
believes it will renew major part of these applications within the next five
years. Thus, the LAS segment's future growth will be driven by maximizing the
potential of refurbishment of the automation solutions that are coming to the
end of their lifetime. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Even though the LCM segment's operation has been
profitable it has not yet succeeded to meet the growth and profitability
targets. In this LCM business segment Cencorp will focus on fast development of
operations in the near future. The company will pay special attention to
increasing the volume of the business and to focusing more resources on the
growth of the LCM sales, especially, for improvement of its profitability.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp has its biggest growth expectations in the CCE
segment. Cencorp's key products and services have been designed for the
photovoltaic market. Cencorp has its own “recipes” for module manufacturing
including detailed material selection and process parameters. With its module
manufacturing recipes and automated production Cencorp is able to manufacture
modern next generation solar modules based on conductive back sheet.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In the market, general attitude to the solar energy
investments improved clearly at the end of 2013. The same trend has continued
in the first quarter of 2014. Many solar module manufacturers with solid market
position have started to plan investment in capacity, partly to increase the
amount of their production capacity and partly to replace old production
capacity for old H-pattern solar modules. Vikram Solar, India's leading solar
module manufacturer, is one of these manufacturers. On 7 February 2014 Cencorp
published the signing of a Term Sheet with Vikram Solar on reviewing</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">business and partnership opportunities. During the
reporting period Cencorp and Vikram Solar have continued negotiations and
reviewed business opportunities as agreed upon in the Term Sheet. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Many new local operators are entering the industry as
well. Their interest in the latest production automation and Cencorp's module
manufacturing recipes is increasing. Cencorp is actively negotiating with this
kind of new operators on technology transfer agreements. Cencorp and its
offering are very well prepared to meet the demand. According to the
information available to the company at the moment there is no other provider
for a full-scale offering with turnkey delivery. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The first phase of Cencorp' pilot production line for
solar modules has been started in Mikkeli. The first commercial sample modules
have been delivered to partners. Further, Cencorp has started to offer turnkey
solar plants with Cencorp's own modules at first mainly in Finland. The company
trusts it will sign delivery contacts for solar plants this year. The values
of the contracts currently under negotiations vary from tens of thousands of
Euros to approximately 1.5 million Euros depending on the scope. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">However, Cencorp emphasizes that the focus of the
company's future strategy is in delivering production technology to the global
markets. In the near future the developing markets will be among the most
interesting market areas for the company. The company is having negotiations on
technology transfer to India, Japan, China, Dominican Republic and to several
African countries. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">For about two years Cencorp has been developing fully
automated production technology for CBS modules. The technology has been
introduced to almost all of the most significant solar module manufacturers.
Innovations relating to the technology have been protected by applying several
patents. There is only a limited amount of competitors in the market and the
customer feedback on Cencorp's production technology has been positive.
Cencorp's production technology has special features: production lines have
high level of automation, they are easy to use and require only little space.
Start-up cost for setting up solar module production from zero amounts
approximately to EUR 6 - 15 million depending on the existing level of the
infrastructure and required capacity. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp's Clean Energy strategy, if realized, will
remarkably change the company's cost structure and the targets set for the near
future. Cencorp cannot assess how the change in company's business focus will
impact to the company as the transition period is still going on. Due to this
the company has decided not to give any financial guidance for the time being,
as stated in the release of 21 August 2012. As the transition period is still
continuing Cencorp does not give any financial guidance for the 2014, either. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp's future outlook will be highly dependent on
the company's ability to reach the targeted market position in the global
photovoltaic module market as well as on the company's long-term and short-term
financing. </span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">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. </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Risks are handled in more detail in the item “Risk
management, risks and uncertainties of this Interim Report”.</span></span><strong style="font-size: 11pt;"><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">LONG-TERM OBJECTIVES FOR MANAGING
DIRECTOR</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">On 21 August 2012 Cencorp's Board of Directors
published its long-term financial and other objectives for Managing Director as
follows: </span></span><span style="font-size:11pt;">- </span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Thorough but fast transition from a company
manufacturing only production automation systems and special components into a
company that develops and provides Cleantech applications using laser and
automation technology. The company's objective is to have a strong market
position, in various market areas, as a provider, of locally produced,
high-quality photovoltaic modules and, particularly, of solar module plants.</span></span><span style="font-size:11pt;">- </span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp's goal is to increase its shareholder value
with growth and profitability. Cencorp aims for growth in Cleantech business
where the company has good possibilities to achieve a strong global position
and fast growth. </span></span><span style="font-size:11pt;">- </span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Laser and Automation Applications segment has its main
focus on the Life Cycle Management of systems and equipment with growth
expectations for service business. </span></span><span style="font-size:11pt;">- </span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In the long run Cencorp is aiming for remarkable growth
in its net sales with net sales target of more than EUR 200 million for 2016,
with growth coming mainly from Cleantech operations, especially from solar
photovoltaic and fuel cell applications, provided the company has sufficient
capital. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp has thoroughly reviewed its possibilities to
achieve the net sales target of EUR 200 million by the end of 2016 set for the
Managing Director. According to the Managing Director the target is very
challenging but he trusts it can be achieved if Cencorp succeeds to sign</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">a contract for delivering at least one normal sized
solar module plant during the fiscal year 2014 and three other in 2015, and if
Cencorp's partners commit themselves to Cencorp's module manufacturing recipes
and components. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The long-term objectives set for the Managing Director
involve also risks and the long-term objectives should not be considered as the
company's financial guidance. Even though the objectives are based on market
knowledge and technical surveys, the risks are significant and it is not
certain if the Managing Director reaches all or part of the targets set for
him.</span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;"> If Cencorp's strategy change is
delayed, the risk of the Managing Director reaching the objectives set for him
in the stated timetable will increase. If Cencorp does not succeed to sign a
contract for delivering at least one normal sized solar module plant during the
fiscal year 2014, the company has to re-evaluate the objectives set for the
Managing Director and their timetable in the second half of 2014.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">FINANCING </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cash flow from business operations before investments
in January - March </span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">was EUR -2.0 million (EUR 0.2
million). </span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">Trade receivables at the end of
the</span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;"> reporting period were EUR 1.2
million (EUR 1.8 million). </span></span><span style="font-family:Courier New,
Courier, monospace;"><span style="font-size:11pt;">Net financial items amounted
to EUR 0</span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">.4 million (EUR -0.01
million).</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">At the end of March, the equity ratio was</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">7.1 percent (22.9 %) and </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">equity per share was</span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;"> EUR 0.002 (EUR 0.01). The equity ratio including
capital loans was 23.4 percent (35.3 %). At the end of the reporting period,
the Group's liquid assets totaled EUR 0.3 million (EUR 0.4 million)</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">unused export credit limits, bank guarantee limits and
factoring loans amounted to EUR</span></span><span style="font-family:Courier
New, Courier, monospace;"><span style="font-size:11pt;">0.5 million (EUR 1.3
million). </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">As previously announced, Cencorp's financing position
has been tight and it involves risks. As the investments are still continuing
and the company is preparing for significant increase in its net sales, working
capital is probably to be tight until the operations turn into profit in terms
of EBITDA. However, the company will have a deficit in its working capital at
least until the first delivery of production technology for solar modules will
start to generate cash flow. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Based on an authorisation </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">given to Cencorp's Board of Directors on</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">4 December 2013 by </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">the extraordinary </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">general meeting, the </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Board of Directors resolved on 9 December 2013 on</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">a share issue to the shareholders of the company and to
the holders of the convertible bonds of I/2010, I/2012 and I/2013 with maximum
number of 508,151,045 new shares to be issued. The subscription period ended on
24 January 2014. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">According to the result of the Share Issue, the total
amount of subscriptions was 627.064.325 shares, which represented 123 percent
of the 508.151.045 shares offered in the Share Issue. Due to the
oversubscription, the Board had to reject part of the subscriptions made on the
basis of the secondary subscription rights in accordance with the terms of the
Share Issue. In total, 2.413 subscribers participated in the Share Issue.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The Company collected 4,911,973 Euros of new equity
through the Share Issue. Approximately 2.4 million Euros of the total
subscription price was paid by the capital and/or interest receivables related
to loans with interest that the Company owed to the respective subscribers.
This includes the subscription of approximately 2.1 million Euros by Savcor
Group Oy. The subscription price of 4,911,973 Euros for the Share Issue was
entered in whole into the fund of the invested unrestricted equity of the
Company. The Share Issue did not have any effects to the registered share
capital of the company. The new shares were registered with the Trade Register
on 4 February 2014 and were entered into public trading on 5 February 2014.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp agreed with its financiers on amendment of the
financial agreements and announced on 10 January 2014 that:</span></span><span style="font-size:11pt;font-family:Courier New, Courier, monospace;">-
Danske Bank Oyj's financial facility agreement totaling EUR 4 million was
continued until 31 March 2015. However, the extension is subject to Finnvera
extending accordingly its guarantee connected to the facility agreement.
Finnvera's current guarantee, connected to the facility agreement, is valid
until 29 June 2014. If Finnvera does not extend its guarantee, Danske Bank's
facility agreement signed on 10 January 2014 will be valid until 27 June
2014.</span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">- The maturity date of a convertible bond of some EUR
1.2 million from Savcor Group Oy was extended until 31 March 2015 provided
Danske Bank's facility agreement shall be valid until 31 March 2015. Should
Danske Bank's facility agreement be due already on 27 June 2014, Savcor Group
Oy's loan shall be due 27 June 2014 accordingly. At the share issue with
subscription period ending on 24 January 2014 Savcor Group Oy subscribed
Cencorp shares for the total amount of the loan. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">- The maturity date of a loan of EUR one million from
Savcor Invest BV, a daughter company of Savcor Group Oy, was extended until 31
March 2015 provided Danske Bank's facility agreement shall be valid until 31
March 2015. Should Danske Bank's facility agreement be due already on 27 June
2014, Savcor Invest B.V.'s loan shall be due 27 June 2014 accordingly. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In the directed share issue for a fee to certain
Cencorp´s directors and a previous Board Member, released on April 11, 2014
altogether 8,159,821 new company shares were subscribed. The subscription price
for the shares in the directed share issue was 0.025 Euro per share. Company
has accepted the subscriptions. The company collected approx. 203,996 Euros of
new equity through the directed share issue and 201,996 Euro of the
subscriptions has been paid by the setting-off non-disputed contractual based
receivables. According to the terms and conditions of the directed share issue,
the subscription price shall be recorded entirely to the company's invested
free equity fund. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Based on the current information available to the
Company, the Company believes that the cash flow of the business operations of
the Company will turn positive during the second half of the year 2014 with the
Company's current costs structure, provided that the Company achieves its
minimum turnover objective for 2014 the likelihood of which is in the Company's
view reasonable given its previous turnover levels, recent order book and
tender activity. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In case the cash flow of the Company will not turn
positive at the latest during the second half of the year 2014 pursuant to the
objective of the Company; and/ or the Company does not have at least the credit
limits corresponding to the current limits of 4.0 million Euros; or the Company
does not manage to negotiate postponement of the maturity dates for its
maturing loans; and/or the Company does not manage to acquire separate
financing for its investments pursuant to the investment program of the Company
(from clients, partners, venture capital investors or from other third parties
such as Tekes - the Finnish Funding Agency for Technology and Innovation), the
Company may be obliged to reconsider the scope of its clean energy business and
to lower its growth target for the future. As other alternatives, the Company
has considered, and will consider in the future, the possibilities to divest
such business operations that do not belong to its key business operations
pursuant to the current strategy of the Company. Such business operations are
i.e. RFID and flexible electronics for mobile phones businesses. At the moment,
the Company is investigating possible buyers for these business operations as
disclosed previously.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">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 repared
under the going concern assumption. The continuity of operations requires that
during the year 2014 the company is able to obtain supplementary funding, to
negotiate changes to the terms of payment and that cash flow from business
operations turns positive. 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. These factors, together with other issues
mentioned in the report of the Board of Directors and the notes to the
financial statements show material uncertainty, which may challenge the
company's going concern assumption.”</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">RESEARCH AND DEVELOPMENT</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The Group's research and development costs during the
January - March period amounted to EUR 0.4 million (EUR 0.5 million) or 17.2
(19.1) percent of net sales. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">INVESTMENTS</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Gross investments during the January - March period
amounted to</span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;"> EUR 0.15 million (EUR 1.8 million).
All of the investments were in development costs. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">PERSONNEL</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">At the end of March the Group employed 144 (160)
people, out of which 51 persons worked in Finland, 79 persons in China and 14
persons in other countries. </span></span><span style="font-family:Courier New,
Courier, monospace;"><span style="font-size:11pt;">During the reporting period,
salaries and fees totalled EUR 1</span></span><span style="font-family:Courier
New, Courier, monospace;"><span style="font-size:11pt;">.2 million (EUR 1.0
million). </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">SHARES AND SHAREHOLDERS </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp's share capital amounted to EUR</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">3 425 059.10 at the end of the reporting period.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The number of shares was</span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">854 312 315. The company has one series of shares,</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">which confer equal rights in the company. Cencorp did
not own any of its own shares at the end of the reporting period.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The company had a total of 6 111 shareholder at the end
of March 2014, and 0.6 percent </span></span><span style="font-family:Courier
New, Courier, monospace;"><span style="font-size:11pt;">of the shares were
owned by foreigners. </span></span><span style="font-family:Courier New,
Courier, monospace;"><span style="font-size:11pt;">The ten largest shareholders
held 82.5 </span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">percent of the company's shares and
voting rights on </span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">31 March 2014. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The largest shareholders on</span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;"> 31 March 2014 </span></span><span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">Votes</span></span>
style
="font
-famil
y:Cour
ier
New,
Couri
er,
monos
pace;"><span
style
="font
-size:
11pt;">Share
s</spa
n></sp
an>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">40.6</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">1. >346
SAVCO 591
R 142</
GROUP span><
OY</s /span>
pan></
span>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">15.6</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">2. >133
SAVCO 333
R 333</
GROUP span><
LIMIT /span>
ED</sp
an></s
pan>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">11.1</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">3. > 95
GASEL 623
LI 474</
CAPIT span><
AL /span>
OY</s
pan></
span>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">7.5</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">4. > 63
KESKI 673
NÄINEN 860</
ELÄKE span><
VAKUUT /span>
USYHTI
Ö
ETERA </span ></spa
n>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">4.6</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">5. > 39
SAVCO 374
R 994
INVES </spa
T n></sp
B.V.< an>
/span></span >
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">1.1</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">6. > 9
FRATE 223
LLI OY 250</ </spa span><
n></sp /span>
an>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">0.8</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">7. > 6
SCI 870
INVES 645</
T span><
OY</s /span>
pan></
span>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">0.5</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">8. > 4
TROBE 000
OY</s 000</
pan></ span><
span> /span>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">0.4</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">9. > 3
HUHTA 687
LA 500</
KAI</ span><
span>< /span>
/span>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">0.3</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">10.PA > 2
RPOLA 498
VILLE 759</ </span span><></spa /span>
n>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">17.5</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">OTHER >149
S</spa 435
n></sp 358</
an> span><
/span>
--------------------------------------------------------------------------------
-------------------------------------------- <span <span <span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">100.0</span></span>
style style
="font ="font
-famil -famil
y:Cour y:Cour
ier ier
New, New,
Couri Couri
er, er,
monos monos
pace;" pace;"><span ><span
style style
="font ="font
-size: -size:
11pt;" 11pt;">TOTAL >854
LY</sp 312
an></s 315</
pan> span><
/span>
--------------------------------------------------------------------------------
-------------------------------------------- <span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The members of the Board of Directors and the President
and CEO, either directly or through companies under their control, held a total
of 526,170,114</span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">shares in the company on 31 March
2014, </span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">representing about
61</span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">.6 percent of the company's shares
and voting rights. Gaselli Capital Oy's, that is under Sauli Kiuru's control,
shareholding in Cencorp has not been recognized in the shareholding of the
Board Members because Sauli Kiuru was elected in the Board at the general
annual meeting hold on 25 April 2014, after the reporting period had ended.
Iikka Savisalo, Cencorp's Managing Director, </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">either directly or through companies under his control,
held a total of</span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">526,170,114</span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;"> shares in the company </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">and 15,852,856 options connected to bond I/2012.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The price of Cencorp's share varied between EUR</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">0.01 and 0.04 during the January - March period. The
average price was EUR 0.02 and </span></span><span style="font-family:Courier
New, Courier, monospace;"><span style="font-size:11pt;">the closing price at
the end of March</span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;"> EUR 0.01. A total of 69.8 million
Cencorp shares were traded at a value of EUR 1.6 million during the January -
March period. The company's market capitalization at the end of March</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">stood at EUR 8</span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">.5 million. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">No share options were granted to the company's
management during the reporting period. On 31 March 2014, the company had</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">On 31 December 2013 the company hold 15,852,856 options
connected to bond I/2012 with subscription period ending on 7 December 2014.
Options connected to bond I/2012 are held by SCI Invest Oy and Savcor Group Oy.
On 31 March 2014 the company </span></span><span style="font-family:Courier
New, Courier, monospace;"><span style="font-size:11pt;">had 30,000,000 options
connected to bond I/2013 with a subscription period ending on 2 June 2015. The
options</span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;"> connected to bond I/2013 are held by
Keskinäinen Vakuutusyhtiö Etera and Oy Ingman Finance Ab. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">SHARE ISSUE AUTHORIZATIONS IN FORCE</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp's Extraordinary General Meeting held on 30
January 2012 decided to authorize the Board of Directors to issue 100,000,000
new shares. 36,411,608 shares remain under the authorization. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The Extraordinary General Meeting of Cencorp
Corporation held on 4 December 2013 authorized the Board of Directors of the
company to decide on a share issue to the shareholders of the company and to
the holders of the convertible bonds of the company, so that the maximum number
of new shares to be issued based on the authorization is 510 000 000 new shares
of the company. The Board of Directors is entitled to resolve on any other
terms and conditions of the share issue. The authorization is in force until
further notice, however, in maximum for five years as of the resolution of the
General Meeting. The authorization does not revoke the earlier authorizations.
508,151,045 shares, under the authorization, were issued in the share issue
ended on 24 January 2014. There remain 1,848,955 shares under the
authorization. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">THE MAJOR EVENTS ON THE REPORTING PERIOD</span></span><strong style="font-size: 11pt;"><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">Cencorp's share issue</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In Cencorp's share issue, ended on 24 January 2014, the
total amount of subscriptions was 627,064,325 shares, which represents 123
percent of the 508,151,045 shares offered in the Share Issue. Due to the
oversubscription, the Board had to reject part of the subscriptions made on the
basis of the secondary subscription rights in accordance with the terms of the
Share Issue. As a result of the Share Issue, the number of the Company's shares
shall increase by 508,151,045 to 854,312,315 shares. In total, 2,413
subscribers participated in the Share Issue. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The Company collected 4,911,973 Euros of new equity
through the Share Issue. Approximately 2.4 million Euros of the total
subscription price was paid by the capital and/or interest receivables related
to loans with interest that the Company owed to the respective subscribers.
This includes the subscription of approximately 2.1 million Euros by Savcor
Group Oy. The subscription price of 4,911,973 Euros for the Share Issue shall
be in whole entered into the fund of the invested unrestricted equity of the
Company. The Share Issue has no effects to the registered share capital of the
company. </span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">The new shares were registered with
the Trade Register </span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">on 4 February 2014 and were entered
into public trading on 5 February 2014. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Vikram Solar and Cencorp consider opportunities for
business and partnership collaboration </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Vikram Solar Pvt, Ltd ("Vikram Solar"), an Indian
company, and Cencorp have started to review collaboration opportunities for
using Cencorp's MWT (Metal Wrap Through) technology for photovoltaic modules in
Vikram Solar's solar energy projects. MWT technology refers to Conductive Back
Sheet (CBS) based module structure. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The parties have signed a Term Sheet on collaboration
on 7 February 2014. As agreed in the Term Sheet consideration of collaboration
options shall take six months, at the most. During that time the parties
negotiate both business opportunities in photovoltaic module business and
opportunities for ownership arrangements between the companies. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Vikram Solar is the leading provider of solar energy
projects in India and it belongs to a technology group Vikram Group
(www.vikram.in). </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The non-binding Term Sheet Cencorp has signed with
Vikram Solar involves risks which have been handled in the item “Risk
management, Risks and Uncertainties” of this Interim Report. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">THE MAJOR EVENTS SINCE THE END OF THE REPORTING
PERIOD</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Reverse stock split</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencop has previously announced that the company's
Board of Directors has commenced preparations for convening an extraordinary
general meeting to decide on reduction of the number of the shares without
reducing the value of the shares (so called reverse stock split). The purpose
of the reverse stock split is to boost trading and pricing of the shares of the
company. At that point it was estimated that the issue will be handled either
at an extraordinary general meeting during the spring 2014 or at Cencorp's
annual general meeting. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">On 1 April 2014 the company's Board of Directors
resolved not to take the reverse stock split to the annual general meeting held
on 25 April 2014. However, preparations of the issue continue. According to the
current knowledge the issue will be handled at an extraordinary general meeting
to be held during year 2014. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Directed share issue for the fee for certain directors
and employees and a former member of the Board of Directors of the
company</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In directed share issue for a fee to certain Cencorp´s
directors and a previous board member, released on April 11, 2014 alltogether
8,159,821 new company shares were subscribed. The subscription price for the
shares in the directed share issue was 0.025 euro per share. Company has
accepted the subscriptions. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The company collected approx. 203,996 Euros of new
equity through the directed share issue and 201,996 Euro of the subscriptions
has been paid by the setting-off non-disputed contractual based receivables.
According to the terms and conditions of the directed share issue, the
subscription price shall be recorded entirely to the company's invested free
equity fund. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Due to the accepted share subscriptions the amount of
the shares in the company shall increase from 854,312,315 shares to 862,472,136
shares once the new shares have been registered with the Trade Register. The
Company aims to apply for listing of the new shares at the official list of
NASDAQ OMX Helsinki Ltd together with the shares already issued and listed
latest approximately on May 30, 2014. For the listing of the new shares, the
company will separately publish a supplement to the Registration Document dated
December 9, 2013 as well as a Summary and a Securities Note prior to the
listing of the new shares. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Decisions at the annual general meeting and organizing
of the Board of Directors </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp Corporation's Annual General Meeting was held
on 25 April 2014 in Mikkeli, Finland. The AGM approved the 2013 financial
statements and discharged the members of the Board and the President and CEO
from liability for the financial year 2013. According to the Board' proposal,
it was decided that no dividend for the financial year 2013 will be
distributed. It was also decided that the loss for the financial period that
ended on 31 December 2013 will be entered in retained earnings. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">It was decided that 4 members will be elected to the
Board of Directors of Cencorp. MSc (economics) Mr. Sauli Kiuru (b. 1972) who
was elected as new board member, works as Chairman of the Board of Gaselli
Capital Oy and CEO of Siesta Group Oy. Previously Mr. Kiuru has been working as
CFO and board member of Barona Group Oy, as auditor in KPMG and as secretary of
the Auditor´s Committee of Finnish Central Chamber of Commerce. Mr. Kiuru has
wide experience concerning board work in growth companies. Sauli Kiuru is the
chairman of the board of Siesta Group Oy, BiiSafe Oy and Stata Oy. He has been
board member of Cencorp previously in years 2006 - 2008. Gaselli Capital Oy
which is controlled by Mr. Kiuru owns 95,000,000 Cencorp shares, which
represents approx. 11.1 percent of the share capital of Cencorp. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Mrs. Marjukka Karttunen, industrial counsellor Mr.
Hannu Savisalo and CEO Mr. Iikka Savisalo continue as old Board members in the
Cencorp </span></span><span style="font-size:11pt;font-family:Courier New,
Courier, monospace;">Corporation´s Board of Directors.</span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">At its organizing meeting following the AGM, Cencorp's
Board of Directors elected Hannu Savisalo as the Chairman and Marjukka
Karttunen as the Vice Chairman of the Board. The Board of Directors decided,
due to the scope of the company's business, that it is not necessary to
establish any separate Board committees. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The AGM decided that an annual remuneration of EUR
40,000 will be paid to the Chairman and to the Vice Chairman of the Board, and
EUR 30,000 to the members of the Board of Directors. Travel costs of the Board
members will be paid according to the company's travel policy. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Ernst & Young Oy, Authorized Public Accounting Firm,
continues as the Company auditor and Mikko Rytilahti, APA, as the responsible
auditor. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Change in Cencorp's management team on 7 May
2014</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Mr Jari Ketoluoto, (Diploma in Business Administration,
born 1962) has been appointed as CEO of Laser and Automation Solutions segment
(LAS). Previously he acted as Vice President of Laser and Automation Solutions.
Mr Ketoluoto continues in Cencorp's Management Team. He reports to Mr Iikka
Savisalo, Cencorp's CEO. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Mr Petri Kivelä's, Vice President LCM, employment with
Cencorp and membership in the company's Management Team has ended. Mr Jari
Ketoluoto is responsible for the Life Cycle Management segment as
well.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">RISK MANAGEMENT, RISKS AND UNCERTAINTIES</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp's Board of Directors is responsible for the
control of the company's accounts and finances. The Board is responsible for
internal control, while the President and CEO handles the practical arrangement
and monitors the efficiency of internal control. Business management and
control are taken care of using a Group-wide reporting and forecasting
system.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The purpose of risk management is to ensure that any
significant business risks are identified and monitored appropriately. The
company's business and financial risks are managed centrally by the Group's
financial department, and reports on risks are presented to the Board of
Directors as necessary.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Due to the small size of the company and its business
operations, Cencorp does not have an internal auditing organization or an audit
committee.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The sufficiency of the company's financing and working
capital involve risks that are handled in more detail in the item “Financing”
of this Interim Report. </span></span><span style="font-family:Courier New,
Courier, monospace;"><span style="font-size:11pt;">Pursuant to the
understanding of the management of the company on the date hereof, with the
share issue and the extension of the financial agreements described in the item
“Financing”, the company has ensured the sufficiency of its working capital for
the period of next twelve months, provided that the Company has at its disposal
at least the credit limits corresponding to the current limits of 4.0 million
Euros; the aforesaid Finnvera guarantee will be extended and will be valid also
after 29 June 2014; the company has in its use separate financing for the
investments pursuant to its investment program as planned; and the cash flow of
the business operations of the company will turn positive during the second
half of the year 2014, at the latest. </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">However, the company will have a deficit in its working
capital until the first delivery of production technology for solar modules
will start to generate cash flow.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">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 repared
under the going concern assumption. The continuity of operations requires that
during the year 2014 the company is able to obtain supplementary funding, to
negotiate changes to the terms of payment and that cash flow from business
operations turns positive. 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. These factors, together with other issues
mentioned in the report of the Board of Directors and the notes to the
financial statements show material uncertainty, which may challenge the
company's going concern assumption.”</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In case the cash flow of the company will not turn
positive at the latest during the second half of the year 2014 pursuant to the
objective of the company; and/ or the company does not have at least the credit
limits corresponding to the current limits of 4.0 million euros; or the company
does not manage to negotiate postponement of the maturity dates for its
maturing loans; and/or the company does not manage to acquire separate
financing for its investments pursuant to the investment program of the company
(from clients, partners, venture capital investors or from other third parties
such as Tekes - the Finnish Funding Agency for Technology and Innovation), the
company may be obliged to reconsider the scope of its clean energy business and
to lower its growth target for the future. As other alternatives, the company
has considered, and will consider in the future, the possibilities to divest
such business operations that do not belong to its key business operations
pursuant to the current strategy of the Company. Such business operations are
i.e. RFID and flexible electronics for mobile phones businesses. The company is
investigating possible buyers for these business operations as disclosed
previously.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">As it is difficult to make forecasts in an industry
that is dependent on economic cycles, the biggest business risks are related to
fluctuations in the demand for products and to the adjustment of operations to
meet demand.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In terms of profitability, the most essential risks are
related to the achievement of a sufficient invoicing volume in all three
business segments and the success achieved with the programs underway at
Cencorp to improve profitability, such as improvements in productivity and
business flexibility through outsourcing production. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp has announced that its objective is to
transform from a company manufacturing only production automation systems and
special components into a company that develops and provides cleantech
applications using laser and automation technology as well as into a company
that has a strong market position as a provider of, in various geographical
areas, locally produced high-quality photovoltaic modules. Achievement of the
objectives as well as realization of the transformation involves risks. Even
though Cencorp's strategy and objectives are based on market knowledge and
technical surveys, the risks are significant and it is not certain if the
company reaches all or part of the targets set for it. Cencorp's future outlook
will be highly dependent on the company's ability to reach the targeted market
position in the global photovoltaic module market as well as on the company's
short and long-term financing. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The execution of the non-binding Memorandum of
Understanding signed with a major Chinese photovoltaic module manufacturer
involves risks. </span></span><span style="font-family:Courier New, Courier,
monospace;"><span style="font-size:11pt;">The final terms of an agreement are
still under negotiations, thus execution of the agreement is not yet
guaranteed. Additionally, the agreement is subject to Cencorp's short-term and
long-term financing. Thus, Cencorp is not yet able to estimate the agreement's
possible execution, effective date neither the agreement's impact in Cencorp
nor the final risks relating to it. However, in regard to the Memorandum of
Understanding on delivering CBS to the Chinese photovoltaic module
manufacturer, the estimated minimum value of EUR 20 million for three years'
period from the start of mass production will probably stay non-binding even
though the actual Memorandum of Understanding turns into a binding supply
contract. In this business customers do not give binding order
estimations.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The execution of the non-binding cooperation agreement
signed between Cencorp and Vikram Solar involves risks. </span></span><span
style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The negotiations for business and partnership
collaboration between the parties, including detailed terms, are still under
negotiations, thus it is not yet certain that the transactions will be
materialized. Further, realization of the transactions defined in the
non-binding Term Sheet is subject to several issues such as due diligence and
especially to Cencorp's short and long term financing. Therefore, Cencorp is
not yet able to estimate possible realization and effective date of the
transactions, the transactions' influence in Cencorp or risks relating to them.
Cencorp will announce further information as soon as the negotiations have been
finished. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">The long-term objectives set for the Managing Director
involves also risks and the long-term objective should not be considered as the
company's financial guidance. Even though the objectives are based on market
knowledge and technical surveys, the risks are significant and it is not
certain if the Managing Director reaches all or part of the targets set for him
within estimated timetable. If Cencorp's strategy change is delayed, the risk
of the Managing Director reaching the objectives set for him in the stated
timetable will increase. If Cencorp does not succeed to sign a contract for
delivering at least one normal sized solar module plant during the fiscal year
2014, the company has to re-evaluate the objectives set for the Managing
Director and their timetable in the second half of 2014.</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Other risks connected to Cencorp have been presented in
more detail in the Share Issue Registration Document and its appendixes
published on 9 December 2013 as well as in the Annual Report. </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">In Mikkeli, 14 May 2014</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp Corporation </span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">BOARD OF DIRECTORS</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">For more information please contact:</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Cencorp: Iikka Savisalo, President and CEO, tel. +358
40 521 6082, </span></span><span style="font-family:Courier New, Courier,
monospace;"><span
style="font-size:11pt;">iikka.savisalo@savcor.com</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Distribution:</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">NASDAQ OMX, Helsinki</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">Main media</span></span><span style="font-family:Courier New, Courier, monospace;"><span
style="font-size:11pt;">www.cencorp.com</span></span>
Consolidated statement of comprehensive income
(unaudited)
1 000 EUR 1-3/2014 1-3/2013 1-12/2013
--------------------------------------------------------------------------------
Net sales 2 436 2 492 11 126
Cost of sales -2 720 -2 327 -10 662
Gross profit -284 165 464
--------------------------------------------------------------------------------
Other operating income 54 702 933
Product development expenses -418 -475 -2 002
Sales and marketing expenses -487 -414 -1 512
Administrative expenses -580 -540 -1 945
Other operating expenses -14 -121 -1 103
Operating profit -1 729 -683 -5 165
Financial income 96 367 460
Financial expenses -503 -354 -2 247
Profit before taxes from continuing -2 137 -668 -6 953
operations
Income taxes 0 2 -11
Profit/loss for the period from -2 137 -669 -6 964
continuing operations
Discontinued operations
Profit/loss after tax for the period 0 -9 -44
from discontinued operations
Profit/loss for the period -2 137 -678 -7 008
--------------------------------------------------------------------------------
Profit/loss attributable to:
Shareholders of the parent company -2 137 -678 -7 008
Earnings/share (diluted), eur -0,003 -0,001 -0,01
Earnings/share (basic), eur -0,003 -0,001 -0,01
Continuing operations:
Earnings/share (diluted), eur -0,003 -0,001 -0,01
Earnings/share (basic), eur -0,003 -0,001 -0,01
Profit/loss for the period -2 137 -678 -7 008
Other comprehensive income
Translation difference -98 23 155
Net other comprehensive income to be
reclassified to
profit or loss in subsequent periods -98 23 155
Total comprehensive income for the -2 235 -654 -6 853
period
--------------------------------------------------------------------------------
Total comprehensive income attributable
to:
Shareholders of the parent company -2 235 -654 -6 853
Consolidated statement of financial position
(unaudited)
1 000 EUR 31.3.2014 31.3.2013 31.12.2013
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Property, plant and equipment 5 126 6 923 5 604
Consolidated goodwill 2 538 2 967 2 538
Other intangible assets 5 269 3 864 5 512
Available-for-sale investment 9 10 9
Deferred tax assets 6 9 7
Total non-current assets 12 949 13 772 13 670
--------------------------------------------------------------------------------
Current assets
Inventories 2 284 2 850 2 198
Trade and other non-interest-bearing 2 316 2 693 2 514
receivables
Cash and cash equivalents 283 439 116
Total current assets 4 884 5 981 4 828
--------------------------------------------------------------------------------
Assets classified as held for sale 0 37 0
Total assets 17 832 19 790 18 498
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
Equity attributable to shareholders of the
parent company
Share capital 3 425 3 425 3 425
Other reserves 49 325 43 691 44 568
Translation difference 734 701 833
Retained earnings -52 232 -43 289 -50 095
Total equity 1 252 4 528 -1 269
--------------------------------------------------------------------------------
Non-current liabilities
Non-current loans 3 205 2 554 3 222
Deferred tax liabilities 5 24 7
Total non-current liabilities 3 210 2 578 3 229
--------------------------------------------------------------------------------
Current liabilities
Current interest-bearing liabilities 5 462 4 760 6 795
Trande and other payables 7 776 7 679 9 594
Current provisions 132 244 150
Total current liabilities 13 370 12 683 16 538
--------------------------------------------------------------------------------
Liabilities directly associated with assets 0 1 0
classified as held for sale
Total liabilities 16 580 15 262 19 768
--------------------------------------------------------------------------------
Equity and liabilities total 17 832 19 790 18 498
--------------------------------------------------------------------------------
Consolidated statement of cash flows
(unaudited)
1 000 EUR 1-3/201 1-3/201 1-12/201
4 3 3
--------------------------------------------------------------------------------
Cash flow from operating activities
Income statement profit/loss from continuing -2 137 -670 -6 953
operations before taxes
Income statement profit/loss from discontinued 0 -9 -44
operations before taxes
Income statement profit/loss before taxes -2 137 -679 -6 997
---------------------------
Non-monetary items adjusted on income statement
--------------------------------------------------------------------------------
Depreciation and impairment + 552 496 2 463
Gains/losses on disposals of non-current +/- 0 -8 -8
assets
Unrealized exchange rate gains (-) and +/- 41 -286 259
losses (+)
Other non-cash transactions +/- 109 139 21
Financial income and expense + 367 273 1 564
Total cash flow before change in working -1 068 -65 -2 698
capital
--------------------------------------------------------------------------------
Change in working capital
Increase (-) / decrease (+) in inventories -93 -114 319
Increase (-) / decrease (+) in trade and 185 231 161
other receivables
Increase (+) / decrease (-) in trade and -889 266 2 248
other payables
Change in provisions -17 -13 -108
Change in working capital -815 370 2 620
--------------------------------------------------------------------------------
Adjustment of financial items and taxes to
cash-based accounting
Interest paid - -102 -91 -361
Interest received + 0 0 2
Other financial items - -53 -29 -300
Taxes paid - -3 0 -11
Financial items and taxes -157 -121 -670
--------------------------------------------------------------------------------
NET CASH FLOW FROM BUSINESS OPERATIONS -2 040 185 -748
CASH FLOW FROM INVESTING ACTIVITIES
Investments in tangible and intangible assets - -380 -776 -2 963
Proceeds on disposal of tangible and intangible + 0 19 55
assets
Repayment of loan receivables + 0 0 0
NET CASH FLOW FROM INVESTMENTS -380 -743 -2 875
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from share issue + 2 375 0 0
Proceeds from non-current borrowings + 98 404 2 425
Stock options of the convertible bond + 0 0 432
Proceeds from current borrowings + 1 810 621 5 399
Repayment of current borrowings - -1 713 -592 -5 102
Dividends paid - 0 0 0
--------------------------------------------------------------------------------
NET CASH FLOW FROM FINANCING ACTIVITIES 2 567 431 3 141
INCREASE (+) OR DECREASE (-) IN CASH FLOW 147 -127 -483
Consolidated statement of changes in equity
(unaudited)
1 000 EUR Share Other Translatio Distributable Retained Total
capit reser n nonrestricted earning
al ves differenc equity fund s
e
--------------------------------------------------------------------------------
31.12.2013 3 425 4 908 833 39 661 -50 095 -1 269
Share issue - - - 4 882 - 4 882
Share issue - - - -125 - -125
expenses
Translation - - -98 0 -98
difference,
comprehensive
income
Profit/loss for - - - - -2 137 -2 137
the period
31.3.2014 3 425 4 908 734 44 417 -52 232 1 252
1 000 EUR Share Other Translatio Distributable Retained Total
capit reser n nonrestricted earning
al ves differenc equity fund s
e
--------------------------------------------------------------------------------
31.12.2012 3 425 4 908 677 38 783 -43 091 4 703
Stock options of - - - - 480 480
the convertible
bond
Translation - - 23 - - 23
difference,
comprehensive
income
Profit/loss for - - - - -678 -678
the period
31.3.2013 3 425 4 908 701 38 783 -43 289 4 528
Segment information
(unaudited)
14 May 2013 Cencorp announced that the company changes its reporting system to
comply with the company's Cleantech strategy and as from 1 January 2013 Cencorp
reports of three business segments. The segments are Laser and Automation
Applications, Life Cycle Management and Clean Energy Solutions (including also
the former Special Components segment). Cencorp's new segment information is
based on the management's internal reporting and on the organisation structure.
The segment information include only continuing operations. Information
regarding discontinued operations is given in attachment "Discontinued
operations".
1 000 EUR 1-3/2014 1-3/2013 1-12/2013
--------------------------------------------------------------------------------
Net sales
Laser and Automation 1 089 779 4 881
Applications
Life Cycle Management of 792 878 3 101
Laser and Automation
Applications
Clean Energy Solutions 579 893 3 340
Eliminations -24 -59 -196
Total 2 436 2 492 11 126
Operating profit
Laser and Automation -524 -592 -2 063
Applications
Life Cycle Management of 31 88 94
Laser and Automation
Applications
Clean Energy Solutions -1 232 -185 -3 197
Eliminations -4 6 2
Total -1 729 -684 -5 165
EBITDA
Laser and Automation -422 -442 -1 129
Applications
Life Cycle Management of 65 122 281
Laser and Automation
Applications
Clean Energy Solutions -816 126 -1 856
Eliminations -4 6 2
Total -1 177 -188 -2 703
Depreciation
Laser and Automation 102 137 492
Applications
Life Cycle Management of 34 35 138
Laser and Automation
Applications
Clean Energy Solutions 416 311 1 288
Total 552 482 1 919
Impairment
Laser and Automation 0 14 442
Applications
Life Cycle Management of 0 0 49
Laser and Automation
Applications
Clean Energy Solutions 0 0 53
Total 0 14 544
Discontinued
operations
(unaudited)
29 May 2012 Cencorp announced that it exits from its unprofitable decoration
business and closes down its plant in Guangzhou, China, producing decoration
applications. In consequence of the closing down of the Guangzhou plant and the
exit from decoration business Cencorp reports the financial figures relating to
the Guangzhou plant's decoration business as discontinued operations from now
on.
The assets of Savcor Face (Guangzhou) Technologies Co., Ltd, reported as
discontinued operation, were written- off at fair value in the second quarter
of 2012 and sold in the fourth quarter of 2012.
The results and major classes of assets and liabilities of Savcor Face
(Guangzhou) Technolgies Co., are as follows:
1 000 EUR 1-3/2014 1-3/2013 1-12/2013
--------------------------------------------------------------------------------
Revenue 0 0 0
Expenses 0 -9 -8
Other opeating 0 0 0
income
Loss recognised 0 0 0
on the
remeasurement to
fair value
Operating profit 0 -9 -8
--------------------------------------------------------------
Finance costs 0 0 -36
Profit/loss 0 -9 -44
before tax from
discontinued
operation
Income tax 0 0 0
Profit/loss after 0 -9 -44
tax from
discontinued
operation
--------------------------------------------------------------
Assets
Property, plant 0 0 0
and equipment
Other intangible 0 0 0
assets
Inventories 0 0 0
Trade and other 0 36 0
non-interest-bea
ring receivables
Cash and cash 0 0 0
equivalents
Assets classified 0 36 0
as held for sale
--------------------------------------------------------------
Liabilities
Trande and other 0 1 0
payables
Provisions 0 0 0
Liabilities 0 1 0
directly
associated with
assets
classified as
held for sale
--------------------------------------------------------------
Net assets 0 36 0
directly
associated with
disposal group
--------------------------------------------------------------
Savcor Face
(Guangzhou)
Technolgies Co.,
Ltd:n net cash
flow:
1 000 EUR 1-3/2014 1-3/2013 1-12/2013
--------------------------------------------------------------------------------
Operating 0 -41 -41
Investing 0 0 0
Financing 0 0 0
Net cash flow 0 -41 -41
--------------------------------------------------------------
Earnings/share 0,00 -0,00001 -0,0001
(basic), from
discontinued
operations
Earnings/share 0,00 -0,00001 -0,0001
(diluted) from
discontinued
operations
Key figures
(unaudited)
1 000 EUR 1-3/2014 1-3/201 1-12/201
3 3
--------------------------------------------------------------------------------
Net sales 2 436 2 492 11 126
Operating profit -1 729 -684 -5 165
% of net sales -71,0 -27,4 -46,4
EBITDA -1 177 -188 -2 703
% of net sales -48,3 -7,5 -24,3
Profit before taxes -2 137 -670 -6 953
% of net sales -87,7 -26,9 -62,5
Balance Sheet value 17 832 19 790 18 498
Equity ratio, % 7,1 22,9 -6,9
Net gearing, % 669,4 151,8 n/a
Gross investments 150 1 771 3 394
% of net sales 6,2 71,1 30,5
Research and development costs 418 475 2 002
% of net sales 17,2 19,1 18,0
Order book 3 034 2 076 3 703
Personnel on average 145 165 155
Personnel at the end of the period 144 160 149
Non-interest-bearing liabilities 7 776 7 679 9 594
Interest-bearing liabilities 8 667 7 314 10 017
Share key indicators
Earnings/share (basic) -0,003 -0,001 -0,01
Earnings/share (diluted) -0,003 -0,001 -0,01
Earnings/share (basic), from continuing -0,003 -0,001 -0,01
operations
Earnings/share (diluted) from continuing -0,003 -0,001 -0,01
operations
Equity/share 0,002 0,01 -0,004
P/E ratio -3,70 -70,00 -3,74
Highest price 0,04 0,10 0,09
Lowest price 0,01 0,06 0,03
Average price 0,02 0,08 0,07
Closing price 0,01 0,07 0,04
Market capitalisation, at the end of the 8,5 24,0 13,8
period, MEUR
Calculation of Key Figures
EBITDA, %: Operating profit + depreciation +
impairment
------------------------------------
Net sales
Equity ratio, %: Total equity x
100
------------------------------------
Total assets - advances
received
Net gearing, %: Interest-bearing liabilities - cash and cash equivalents
and marketable securities
x 100
------------------------------------
Shareholders' equity + minority
interest
Earnings/share (EPS): Profit/loss for the period to the
owner of the parent company
------------------------------------
Average number of shares adjusted
for share issue
at the end of the
financial year
Equity/share: Equity attributable to shareholders
of the parent company
------------------------------------
Undiluted number of shares on the
balance sheet date
P/E ratio: Price on the balance
sheet date
------------------------------------ Earnings per share
Related party
transactions
(unaudited)
Cencorp Corporation is part of Savcor Group Oy. The Group has purchased goods
and services from companies in which the majority holding and/or power of
decision granting control of the company is held by members of the Group's
related parties. Sales of goods and services carried out with related parties
are based on market prices.
The Group entered into the following
transactions with related parties:
1 000 EUR 1-3/2014 1-3/2013 1-12/2013
--------------------------------------------------------------------------------
Sales of goods and
services
Savcor companies 14 17 175
Others 0 0 9
Yhteensä 14 17 175
Purchases of goods
and services
Savcor companies 119 136 474
Savcor Face Ltd 18 18 81
Idem Finland Oy 0 0 15
Others 0 1 2
Total 137 155 571
Interest income
Savcor companies 0 0 2
Interest expenses
and other
financial expenses
Savcor companies 58 82 354
SCI Invest Oy 15 15 60
Iikka Savisalo 0 0 2
Total 73 97 416
Other non-current 0 519 185
liabilities to
related parties
Non-current 0 1 219 0
convertible
subordinated loan
from related
parties
Interest payable to 230 572 795
related parties
Other current 1 519 1 000 1 455
liabilities to
related parties
Current convertible 1 049 1 230 2 598
subordinated loan
from related
parties
Trade payables and 702 856 916
other
non-interest-beari
ng liabilities to
related parties
Trade receivables 87 73 136
from related
parties
SCI Invest Oy is a company under control of Iikka Savisalo,
Cencorp's CEO.
1 000 EUR 1-3/2014 1-3/2013 1-12/2013
--------------------------------------------------------------------------------
Wages and
remuneration
Salaries of the 223 176 730
management and
Board
Fair values
(unaudited)
Carrying Fair value
amount
1 000 EUR 31.3.2014 31.3.2014
--------------------------------------------------------------------------------
Financial assets
Available-for-sale investments 9 9
Trade and other receivables 2 316 2 316
Cash and cash equivalents 283 283
The fair value of trade and other receivables is expected to correspond to the
carrying amount due to their short maturity.
Financial liabilities
R&D loan, non-current 1 334 1 334
Other liabilities, non-current 1 872 1 872
Loans from financial institutions, current 2 748 2 748
Other liabilities, current 2 714 2 714
Trade payables and other non-interest-bearing 5 333 5 333
liabilities
The fair value of non-current liabilities is expected to correspond to the
carrying amount as the loans were withdrawn in late 2012 and in 2013 and
recognized to their fair value when recorded. There has been no significant
change in common interest rate after the withdrawal of the loans.
EUR 4.9 million out of trade payables and other current liabilites was overdue
at the end of the reporting period. That included EUR 2.5 million of Savcor
Face Bejing's overdue liabilities.
Change in intangible and tangible assets
(unaudited)
1 000 EUR 31.3.2014 31.3.2013 31.12.2013
--------------------------------------------------------------------------------
Includes tangible assets, consolidated
goodwill and other intangible assets
Carrying amount, beginning of period 13 654 12 634 12 634
Depreciation and impairment -552 -482 -2 221
Additions 229 1 447 3 691
Disposals -129 -99 -356
Exchange rate difference -269 254 -94
Carrying amount, end of period 12 933 13 754 13 654
Commitments and contingent liabilities
(unaudited)
1 000 EUR 31.3.2014 31.3.2013 31.12.2013
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Loans from financial institutions 1 240 1 241 1 245
Promissory notes secured by pledge 12 691 12 691 12 691
Factoring loan and export credit limit 1 496 1 130 1 338
Trade receivables 822 735 499
Promissory notes secured by pledge 12 691 12 691 12 691
Operating leases
Payable within one year 11 24 17
Payable over one year 0 11 1
Commitments
Payable within one year 902 1 096 948
Payable over one year 804 846 830
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