Cencorp - Company Announcement

CENCORP'S NEW STRATEGY PUBLISHED - OUTLOOK FOR 2012 STAYS UNCHANGED

Cencorp Oyj       Stock Exchange Release 19 April 2012 at 10.15 Finnish time

CENCORP'S NEW STRATEGY PUBLISHED - OUTLOOK FOR 2012 STAYS UNCHANGED

Cencorp's Board of Directors has decided on company's new strategy. The
company's strategy bases on extensive knowledge of automated handling of small
pieces and on long experience on customers' automation needs, systems and
equipment. Today Cencorp has good theoretical knowledge also of laser and its
applications for machining plastics as well as of vacuum coatings. 

Company's main business operations consist of:

  1. The development of clean technology applications in cooperation with the
     customers. The ongoing application development today involves renewable
     energy, fuel cells and LED-technology.
  2. Life cycle management of laser and automation systems and equipment.
     Special attention will be given for customer service through improving and
     strengthening maintenance operations and other after sales activities.
     Cencorp has delivered more than 2 000 automation installations to the
     leading electronics manufactures especially in North America and Central
     Europe. Existing good customer relations create a solid base for the new
     strategy.
     The main development focus will be especially on software that relates to
     laser and automation applications and equipment. The software will create
     the customer added value, for example through integration into customers'
     materials management and maintenance IT-systems. This kind of software
     systems have already been delivered to some key customers.
  3. A separate profit centre will be formed to sell stand alone equipment. That
     business unit will cooperate closely with the independent manufacturing
     partners. Close and mutual product development between Cencorp and its
     development and manufacturing partners will be increased. Long-term
     commitment with the partners may be further deepened with minority
     shareholding arrangements.
  4. Reel-to-reel manufacturing of flexible circuits in Beijing, China, is an
     important part of the Special Components segment. Flexible circuits
     comprehend for example RFID (Radio Frequency Identification) and mobile
     phone antennas including so called NFC (Near Field Communication) antennas
     and LED lights related products. Development is focused especially on
     products and services that require laser technology in downstream
     operations of flexible circuits. The components for the renewable energy
     application project, that was earlier published, are manufactured also in
     Beijing.
  5. Metallization of electronic equipment components by vacuum coating in China
     will remain in an essential role in the Special Component segment. This
     so-called electromagnetic shielding (EMI-shielding, EMC-shielding) isolates
     radiating components from interfering with each other and prevents external
     radiation from affecting equipment functionalities.

”With the new strategy Cencorp will be turned towards profitable growth as soon
as possible. The new strategy will be taken into use immediately. We have done
systematic work for changing the company's strategy and improving profitability
already for some time. Now hard work continues in concrete actions ” Says Iikka
Savisalo, who started as Cencorp's Managing Director 3 April 2012. 

According to the new strategy Decoration Operations located in Guangzhou China
are no longer part of Cencorp's core business. The decoration factory in
Guangzhou serves industrial and consumer electronics industry by manufacturing
decoration applications for plastics or metal using vacuum coating and other
technologies. Decoration technologies create desired decoration, appearance or
feeling on metal or plastic surfaces. Cencorp's decoration business was
unprofitable in 2011, but its' operational precondititions seem to be improving
with the new customer base. However, further development of the decoration
operations requires investments. To be able to focus on its core business the
company has started negotiations to find a strategic partner in the decoration
operations. Alternatively Cencorp investigates different options to exit from
the decoration business. 

In the Special Components segment (the current operations in China) the company
is aiming for growth with strategic customer partnerships, especially in
manufacturing of flexible circuits, fuel cells and components for renewable
energy technologies. The company sets a strong focus in this segment on winning
new customers and establishing its technologies in new customer industries. 

The company's target is together with its subcontracting partners to
concentrate its research and development investments in bringing new
innovations and products into market better and faster than earlier.
Additionally Cencorp aims to grow with strategic partnerships and arrangements
related to product design and manufacturing. 

Cencorp keeps the outlook for 2012 as it was. Despite of the uncertain economic
environment Cencorp estimates its net sales to increase  compared to 2011 and
the full-year EBITDA is estimated to be positive provided that no essential
change takes place in the operating environment or in the current economic
outlook. 

Cencorp's Annual General Meeting will be held today, 19 April 2012. The company
publishes its Interim Report for 1 January - 31 March 8 May 2012. 

Mikkeli, 19 April 2012

CENCORP OYJ

BOARD OF DIRECTORSFor more information:
Iikka Savisalo, CEO, tel. +358 40 5216082, iikka.savisalo@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. Cencorps customers are automotive electronics manufacturers and
manufacturers operating in telecommunications, industrial automation and EMS.
Cencorps head office is located in Mikkeli, Finland. The company is part of
the Finnish Savcor Group.