31 Mar Dec 2012 Total assets EUR million Total equity EUR million Equity ratio in percent

Transcription

1 Conergy AG Interim consolidated financial statements as at 31 March 2013

2 Key figures Q Q * Sales EUR million Germany EUR million International EUR million Gross profit EUR million Gross profit margin in percent EBITDA EUR million EBITDA margin in percent EBIT EUR million EBIT margin in percent Income after taxes EUR million Mar Dec 2012 Total assets EUR million Total equity EUR million Equity ratio in percent Q Q Cash flow from operating activities (total) EUR million Cash flow from investing activities (total) EUR million Cash flow from financing activities (total) EUR million Earnings per share from continuing operations * EUR Average number of no-par shares issued * 159,795, ,795,307 Number of employees FTE ** (as at ) 1,150 1,263 Germany International * Previous year s figures adjusted; see notes ** Full Time Equivalent

3 Contents INTERIM GROUP MANAGEMENT REPORT 4 Global economic developments 4 Development of the industry 5 Assets, liabilities, cash flows, and profit or loss 13 Events after the balance sheet date 13 Risk and opportunity report 14 Outlook 15 The Conergy share IINTERIM CONSOLIDATED FINANCIAL STATEMENTS 18 Consolidated statement of comprehensive income 19 Consolidated balance sheet 20 Consolidated statement of cash flows 21 Consolidated statement of changes in equity 22 Condensed notes 28 Review Report FURTHER INFORMATION 29 Disclaimer, contact and imprint 30 Financial calendar

4 4 Conergy AG I Interim consolidated financial statements as at 31 March 2013 Interim Management Report of the Group for the period from 1 January to 31 March 2013 Global economic developments According to the European Central Bank, economic momentum picked up in recent months, even though the economic recovery is occurring to varying degrees in different economic areas. The reason behind this development is the renewed improvement in financial market conditions worldwide. Moreover, survey indicators point to a further change for the better in the business climate. In the euro zone, the brakes were put on the pace of growth by ongoing government budget cutting and tightening of fiscal policies. According to estimates, the euro zone s gross domestic product declined by 1.0 percent in the first quarter of Although this is an improvement from the fourth quarter of 2012 in which the GDP decreased by 2.3 percent, the region is still in recession all the same. With growth of 0.6 percent, Germany s economy is the exception. A different picture was presented by economic output in the United States, which continues to recover. After an increase of 0.4 percent in the fourth quarter of 2012, the country s GDP was up 3.0 percent in the first quarter of Japan was also able to boost its economic output again in the quarter under review. The economy there grew significantly more robustly than in the preceding quarter, expanding by 3.1 percent. The highest growth rate was again displayed by the Chinese economy. However, at growth of 7.7 percent this represented a slight decrease compared with the fourth quarter of Development of the industry After demand for solar power installations reached record levels in Germany again last year, the market saw a noticeable decline in the first quarter of New installations fell 57 percent below the figure for the prior-year quarter, with new installed output estimated at approximately 800 megawatts. The reason for this development is the announced adjustment of feed-in tariffs, which led to an upswing in the first quarter of 2012 due to pull-forward effects. On the other hand, the construction of large-scale solar energy projects was curtailed sharply in the middle of last year, which also affected construction activities in the first quarter of With new installations totalling around 800 megawatts, the market in Greece saw its highest growth to date. More than one-third of the total installed solar electricity capacity in Greece was installed in the first quarter of This is attributable to pull-forward effects in anticipation of deterioration in subsidies for photovoltaics in the second quarter of It is expected that the Greek market will weaken in the coming quarters for this reason. In Italy, the third largest market in Europe, demand was stable with new installations accounting for about 600 megawatts in the first quarter of The country now has a total of 16.7 gigawatts of solar electricity capacity installed. The current law stipulates expiration of the subsidies when a certain capacity threshold is reached. In view of the current pace of installation, it is anticipated that subsidies in the form of feed-in tariffs will expire as early as the second quarter of However, demand will expected to remain at a high level due to what is known as net metering. In the Asia Pacific region, industry experts estimate that new installations in the first quarter of 2013 more than doubled compared with the first quarter of the previous year. More than 90 percent of the new installations are in Australia, China, India and Japan, which holds the greatest share. China has been able to more than quadruple its installed capacity since the first quarter of After the price of solar modules and their preproducts dropped sharply in past quarters, moderate stabilisation was again seen for the first time in the first quarter of A decline of 3 percent meant that prices remained nearly at the level of the prior-year quarter. A similar trend was evident in solar cell prices, which also decreased by 3 percent on average. Solar wafers and silicon saw a somewhat steeper drop in price by 6 percent and 5 percent, respectively. Compared to previous quarters, however, this situation eased again slightly for the first time.

5 Interim Group Management Report Interim Consolidated Financial Statements Further Information Global Economy Development Assets, Liabilities, Cash Flows, P & L 5 Assets, liabilities, cash flows, and profit or loss Profit or loss Income statement of the Conergy Group (short version) Q Q * Shipments MWp Sales EUR million Gross profit EUR million Gross profit margin percent Earnings before interest, taxes, depreciation and amortisation (EBITDA) EUR million Earnings before interest and taxes (EBIT) EUR million Non-operating result EUR million Earnings before taxes (EBT) EUR million Income taxes EUR million Income after taxes EUR million thereof attributable to Shareholders of Conergy AG (consolidated profit or loss) EUR million * Previous years figures adjusted; see notes In the past year, Conergy was able to further improve the excellent international positioning of its sales organisation. For this reason, the share of consolidated sales attributable to sales abroad was 88.5 percent in the reporting period, much higher than the prioryear figure of 70.5 percent. Sales outside Germany increased by EUR 38.9 million, or 56.2 percent, to EUR million (previous year: EUR 69.2 million). In the first quarter of 2013, the most important foreign markets for the Conergy Group included the Thai market, which is served from Singapore and saw volumes triple. In addition, the sales organisation in Spain quadrupled its volume sold compared with the prioryear quarter, mostly thanks to expansion of its export business. Furthermore, Italy and Greece continued to be important foreign markets for Conergy in the first quarter of In Germany, sales declined by EUR 15.0 million, or 51.7 percent, from EUR 29.0 million in the previous year to EUR 14.0 million in the first quarter of In terms of volume, the figure in the first quarter of 2013 in Germany at 7.1 percent was, however, only slightly below the prior-year quarter, however. The German market accounted for 11.5 percent of Conergy s total sales in the period under review (previous year: 29.5 percent). Sales In the first quarter of 2013, many of the world s PV markets still found themselves in a difficult situation marked by uncertainties and upheaval in the regulatory environment. Nonetheless, the volume of photovoltaic modules sold by the Conergy Group totalled megawatts in the first quarter of Conergy thus succeeded in increasing this volume by a strong 83.1 percent over the first quarter of 2012 (previous year: 69.8 megawatts). This positive performance stemmed from the stepped-up development of new markets for export by the existing sales organisations as well as the increase in project volume. This also boosted the Conergy Group s sales by EUR 23.9 million from EUR 98.2 million in the previous year to EUR million in the first quarter of In contrast to volume, the sales figure was only 24.3 percent higher than in the previous year because of the continued sharp drop in the price of photovoltaic systems and all photovoltaic components in the course of the past financial year. In assessing this development, it should be noted that the first quarter is traditionally the weakest quarter of the year in the solar energy industry. Nonetheless, Conergy successfully exceeded the volume in the fourth quarter of 2012 (105.3 megawatts) by 22.5 megawatts in the first quarter of Despite the steep drop in prices, sales in the first quarter of 2013 totalled EUR million, edging up over the figure for the fourth quarter of 2012, which was EUR million. Shipments Conergy Group per quartal in MWp Q4 Q3 Q2 Q , MWp Germany MWp International Sales Conergy Group per quartal in EUR million Q4 Q3 Q2 Q Sales Germany Sales International

6 6 Conergy AG I Interim consolidated financial statements as at 31 March 2013 Gross profit The Conergy Group posted a gross profit of EUR 17.7 million in the first quarter of 2013, compared to EUR 20.3 million in the previous year. The gross profit margin declined by 6.2 percentage points to 14.5 percent (previous year: 20.7 percent), mainly due to the approximately 40-percent drop in the price of photovoltaic modules in the course of the 2012 financial year and a still extremely competitive market. For financial year 2012 as a whole, the gross profit margin was 14.5 percent, and thus the gross profit margin remained steady in the first quarter of Earnings before interest, taxes, depreciation and amortisation (EBITDA) In the first quarter of 2013, earnings before interest, taxes, depreciation and amortisation (EBITDA amounted to EUR 11.7 million, down EUR 4.1 million from the prior-year quarter (EUR 7.6 million). The lower EBITDA compared with the first quarter of 2012 is mainly attributable to the absence of the positive one-time effects included in the figure in the previous year, in addition to the lower gross profit, which was driven by continued price and margin pressure. In the first quarter 2012, other operating income included income from the sale of voltwerk electronics GmbH to the Bosch Group in the amount of EUR 4.7 million. Moreover, other operating income reflects positive effects of EUR 5.8 million from the reversal of provisions, which amounted to only EUR 1.2 million in the first quarter of Whereas write-downs of receivables reduced EBITDA by EUR 1.4 million in the previous year, this figure was only EUR 0.3 million in the first quarter of In the first quarter of 2013, net currency gains of EUR 2.0 million were recognised, whereas in the previous year net currency losses reduced the result by EUR 1.7 million. On the whole, additional cost-cutting reduced personnel expenses and other operating expenses further compared with the prioryear quarter. Earnings before taxes (EBT) As at 2012 the half-year financial statements, Conergy also reviewed the utilisation of its guarantee facilities granted under the syndicated loan agreement, among other things, in connection with the increased use of supplier loans. It was determined that these are now mainly used to provide security for supplier loans while in the past risks arising from the planning and implementation of projects were collateralised. On account of the predominant financing function, the guarantee fees of EUR 0.9 million recorded in the first quarter of 2013 were reported under Non-operating expenses rather than under Other operating expenses. The disclosure for the guarantee commission of EUR 0.8 million paid in the previous year was adjusted accordingly with retroactive effect. The non-operating result of the Conergy Group in the first quarter of 2013 was thus EUR 2.8 million (previous year: EUR 3.2 million). Non-operating expenses of EUR 2.9 million (previous year: EUR 3.2 million) mainly arose from interest expense related to borrowings that comprise both interest payments and accrued interest. Taking into account this non-operating result, earnings before taxes (EBT) were EUR 17.8 million (previous year: EUR 14.7 million). Income after taxes As in the prior year, no income tax was incurred in the first quarter of Furthermore, no operations were shown as discontinued operations in the first quarter of 2012 or the first quarter of Income after taxes therefore totalled EUR 17.8 million in the first quarter of 2013, down EUR 3.1 million from the prior-year figure (EUR 14.7 million). Earnings per share from continuing operations were EUR 0.11 (previous year: EUR 0.09). Business development by segment Operating result (EBIT) After accounting for amortisation and depreciation of intangible assets and property, plant and equipment of EUR 3.3 million (previous year: EUR 3.9 million), earnings before interest and taxes (EBIT) in the first quarter of 2013 amounted to EUR 15.0 million (previous year: EUR 11.5 million). Development of sales by segment External sales by segment EUR million Q Q Europe Asia Pacific and Americas Holding Reconciliation Conergy Group

7 Interim Group Management Report Interim Consolidated Financial Statements Further Information Assets, Liabilities, Cash Flows, P & L 7 In the Europe segment, the first quarter of 2013 saw sales increase by EUR 13.4 million, or 20.7 percent, to EUR 78.1 million (previous year: EUR 64.7 million) despite prices being lower than in the previous year. Adjusted for prices, sales generated by PV modules grew by 80.1 percent. Major drivers of the year-on-year sales increase were the developments in Greece and Spain, where volumes more than doubled and quadrupled, respectively. Accordingly, sales in Greece rose by EUR 5.1 million to EUR 11.0 million in the first quarter of 2013 (previous year: EUR 5.9 million). In Spain, sales grew by EUR 4.2 million to EUR 10.0 million (previous year: EUR 5.8 million). The companies in the United Kingdom and France reported similarly satisfactory developments with sales of EUR 8.1 million and EUR 4.0 million, respectively, in the first quarter of In Germany, the volume of photovoltaic modules sold remained nearly constant compared with the previous year at 2.7 percent. It must be noted that the first quarter of 2012 was influenced by a short upswing in March resulting from the announcement of an unplanned reduction in feed-in tariffs for solar energy. Sales in Germany in the first quarter of 2013 decreased by EUR 4.2 million to EUR 31.6 million (previous year: EUR 35.8 million). This also includes the export business of Conergy Deutschland GmbH and Mounting Systems GmbH. Sales by country * in percent Q % Q % 21% 10% 16% 10% 9% Germany Exports from Germany Italy 11% 6% 6% Australia Spain UK 7% 29% 6% 14% 8% 8% 10% 4% 7% 11% USA Singapore Greece Other In the Asia Pacific and Americas (APAM) region, sales also increased by EUR 10.5 million to EUR 44.0 million (previous year: EUR 33.5 million). Adjusted for price and currency effects, sales of photovoltaic modules here actually increased by 91.9 percent year-on-year. The positive trend is primarily attributable to the company in Singapore, which was able to construct several large-scale open field installations in the first quarter of 2013, and therefore reported sales growth of EUR 16.0 million to EUR 25.8 million (previous year: EUR 9.8 million). In Australia, the volume increased by a healthy 36.2 percent over the prior year, but at EUR 4.8 million, sales remain below the previous year s level due to the sharp decline in prices in the past financial year (previous year: EUR 7.5 million). In the United States and Canada, sales in the first quarter 2013 edged down from the previous year s level at EUR 6.8 million (previous year EUR 8.8 million) and EUR 2.8 million (previous year: EUR 4.3 million), respectively. In the United States, this is mainly due to short-term weakness in demand due to regional changes in subsidies. * Domicile of the respective company Development of earnings by segment Reconciliation of EBITDA to consolidated profit or loss EUR million Q Q * Europe Asia Pacific and Americas Holding Reconciliation EBITDA Depreciation EBIT Non-operating result Earnings before taxes (EBT) Income taxes Income after taxes * Previous years figures adjusted; see notes In the Europe segment, EBITDA in the first quarter of 2013 amounted to EUR 8.7 million compared with EUR 2.1 million in the previous year. The drop in earnings by EUR 6.6 million is largely attributable to the

8 8 Conergy AG I Interim consolidated financial statements as at 31 March 2013 fact that other operating income of EUR 11.4 million was mainly generated in the Europe segment in the previous year. In the first quarter of 2012, this resulted primarily from income from the sale of voltwerk electronics GmbH to the Bosch Group totalling EUR 4.7 million and the reversal of provisions. In the first quarter of 2013, however, operating costs were reduced further from the previous year s level. As a result, personnel expenses in the reporting quarter declined by EUR 1.5 million to EUR 11.6 million (previous year: EUR 13.1 million) and other operating expenses decreased by EUR 5.0 million from EUR 15.1 million to EUR 10.1 million. In contrast, the gross profit margin was 13.5 percent in the first quarter of 2013, slipping 7.7 percentage points below that of the previous year (21.2 percent). In the Asia Pacific and Americas segment, EBITDA at EUR 0.2 million was almost in the black in the first quarter of 2013, which is a year-on-year improvement of EUR 3.3 million (previous year: EUR 3.5 million). Here, personnel expenses also decreased slightly by EUR 0.3 million to EUR 3.3 million (previous year: EUR 3.6 million). Furthermore, the other operating expenses were reduced by EUR 0.5 million to EUR 6.5 million (previous year: EUR 7.0 million). However, the persistent price pressure in the first quarter of 2013 also lowered the gross profit margin by 1.4 percentage points to 14.3 percent (previous year: 15.7 percent). Employees and personnel expenses Employees by region FTE 31 Mar Mar 2012 Europe Asia Pacific and Americas Holding Reconciliation Total number of employees 1,150 1,263 thereof salaried employees (in percent) thereof hourly workers (in percent) As at 31 March 2013, the Conergy Group had a total of 1,150 employees (all figures FTE), 113 employees fewer than as at 31 March Of these, 699 employees worked for the Group s German subsidiaries, 363 employees worked for the foreign subsidiaries, and 88 employees worked for the holding company. Of the 1,150 employees in the Conergy Group, 66 percent were salaried employees and 34 percent were hourlypaid workers as at 31 March The average number of employees in the first quarter of 2013 was 1,150 (previous year: 1,362). Personnel expenses of EUR 17.1 million were down EUR 1.9 million from the prior year (previous year: EUR 19.0 million).

9 Interim Group Management Report Interim Consolidated Financial Statements Further Information Assets, Liabilities, Cash Flows, P & L 9 Cash flows Statement of cash flows of the Conergy Group (short version) EUR million Q Q * Operating result (EBIT) Change in working capital Change in inventories Change in trade accounts receivable Change in trade accounts payable Change in other net assets / other non-cash items Cash generated from operating activities (net cash flow) Net cash generated from investing activities Thereof Cash outlfows for investments in property, plant and equipment, and intagible assets Cash outflows for investments in property, plant and equipment, and intangible assets Cash receipts from the sale of subsidiaries Change in non-current financial assets Interest received Cash flow before financing activities (free cash flow) Net cash generated from financing activities Thereof Capital contributions Cash payments in connection with the acquisition of equity Change in borrowings Cash outflows for retirements of debt Interest paid and payments similar to interest Change in cash from operating activities (total) * Previous years figures adjusted; see notes The statement of cash flows describes the source and utilisation of the cash flows in the reporting period. Hence, it is central to the assessment of the changes in the Company s financial position. Cash outflows of EUR 7.7 million from operating activities in the first quarter of 2013 contrast with cash inflows of EUR 6.2 million in the first quarter of The development in the net cash flow from operating activities arises mainly from the change in the working capital. This resulted in cash inflows of EUR 21.8 million in the first quarter of 2012, whereas the first quarter of 2013 saw cash flows decline by EUR 17.4 million to EUR 4.4 million. Trade accounts receivable, which accrued due to the strong business performance in the first quarter of 2013, contributed EUR 18.2 million to this development (previous year: cash inflow of EUR 14.8 million). This was balanced out by further improvements in cash flows from trade accounts payable, which increased further in the first quarter of 2013 as against the comparable period in 2012, primarily due to changes in the supply strategy with various suppliers. The cash inflow from the change in trade accounts payable was EUR 21.2 million in the first quarter of 2013 (previous year: EUR 0.3 million), and additional cash inflows arose from the reduction in inventories by EUR 1.4 million, which had been higher in the previous year at EUR 6.7 million. The change in other net working capital and other noncash items had an effect of EUR 2.9 million in the first quarter of 2013 (previous year: EUR 4.1 million). This change in other net working capital and other non-cash items in the first quarter of 2013 is mainly attributable to adjusting the operating result to eliminate non-cash items such as depreciation and amortisation. In the first quarter of 2013, EUR 1.3 million in net cash was used for investing activities (previous year: cash outflow of EUR 1.9 million). A cash outflow of EUR 0.7 million resulted from investments in property, plant and equipment as well as intangible assets (previous year: cash outflow of EUR 1.3 million). The outflow of funds from financial assets relates to project development activities and amounted to EUR 0.7 million (previous year: cash outflow of EUR 0.6 million). This gave rise to a cash inflow of EUR 9.0 million before financing activities in the first quarter of 2013 (previous year: EUR 4.3 million).

10 10 Conergy AG I Interim consolidated financial statements as at 31 March 2013 The Conergy Group used EUR 2.6 million in net cash for financing activities in the first quarter of 2013 (previous year: cash outflow of EUR 4.7 million). On the one hand, this cash outflow was the result of the change in borrowings, which decreased by EUR 0.9 million (previous year: cash outflow of EUR 1.9 million). In addition, EUR 1.7 million in payments of interest and similar payments also resulted in an outflow of cash which had been EUR 1.1 million higher in the first quarter of 2012 at EUR 2.8 million. Liquidity development in the first quarter of 2013 in EUR million Liquidity ( ) EBIT Changes W/C Other net assets / Other non-cash items Cash flow from investing activities 1.3 Cash flow from financing activities 2.6 Liquidity ( ) As a result, the net change in cash and cash equivalents in the first quarter of 2013 was thus EUR 11.6 million (previous year: EUR 0.4 million). Cash and cash equivalents and net liabilities Net liabilities EUR million 31 Mar Mar Dec 2012 Non-current borrowings Current borrowings Borrowings Cash and cash equivalents Conergy Group

11 Interim Group Management Report Interim Consolidated Financial Statements Further Information Assets, Liabilities, Cash Flows, P & L 11 The Conergy Group had cash and cash equivalents of EUR 7.3 million as at 31 March 2013 (31 December 2012: EUR 18.9 million). As at 31 March 2013, borrowings amounted to EUR million, compared to EUR million at the close of the 2012 financial year. Borrowings in the first quarter of 2013 thus decreased by EUR 0.9 million compared to the 2012 balance sheet date. The Group s net liabilities as at 31 March 2013 were EUR million (31 December 2012: EUR million). Development of net liabilities (in EUR millions) Of the three-tranche 2011 Syndicated Loan Agreement, Tranche A in the amount of EUR 70.2 million will serve to fund liabilities existing under the 2007 Syndicated Loan Agreement; Tranche B provides a revolving facility of EUR 50.0 million and covers the Conergy Group s working capital requirements as well as other defined operating purposes; Tranche C in the amount of EUR million finally serves to fund existing guarantees and cover additional guarantees as required. Whilst all tranches are due and must be repaid in full four years from initial drawdown, revolving loans utilised under Tranche B must either be repaid at the end of the respective interest period or allocated to a new interest period without having been repaid and newly granted; they may then be used until one month prior to final maturity For the particulars of the new loan agreement (2011 Syndicated Loan Agreement), please see the description of its terms and conditions in the Risk and opportunity report of the 2012 annual report The new syndicated loan agreement (2011 Syndicated Loan Agreement) took effect after the capital increase was recorded in the Commercial Register appropriate for Conergy AG on 21 July 2011, replacing the 2007 Syndicated Loan Agreement for the purpose of ensuring adequate liquidity. Conergy AG and Conergy SolarModule GmbH & Co. KG acting as borrowers, as well as other significant companies of the Conergy Group acting as guarantors, and ten banks led by Commerzbank International S.A., Luxembourg, closed this new loan agreement for a current volume of EUR million on 8 July 2011.

12 12 Conergy AG I Interim consolidated financial statements as at 31 March 2013 Assets and liabilities Consolidated balance sheet of the Conergy Group EUR million 31 Mar Mar Dec 2012 Non-current assets Goodwill Intangible assets Property, plant and equipment Financial assets Other assets Deferred tax assets Current assets Inventories Trade accounts receivable Financial assets Other assets Cash and cash equivalents Total assets Equity Non-current liabilities Provisions Borrowings Other liabilities Deferred tax liabilities Current liabilities Provisions Borrowings Trade accounts payable Other liabilities Current income tax liabilities Total equity and liabilities Total assets The total assets of the Conergy Group as at 31 March 2013 amounted to EUR million, up EUR 1.8 million from the end of the 2012 financial year (31 December 2012: EUR million). Non-current assets Non-current assets declined marginally by EUR 2.7 million to EUR 76.9 million compared to the end of the previous year (31 December 2012: EUR 79.6 million). In part, this stemmed from the decrease in property, plant and equipment by EUR 2.5 million to EUR 72.3 million (31 December 2012: EUR 74.8 million), due essentially to depreciation. Current assets Current assets as at 31 March 2013 increased by a total of EUR 4.5 million to EUR million (31 December 2012: EUR million). This was largely the result of the increase in trade accounts receivable by EUR 18.1 million to EUR 80.7 million (31 December 2012: EUR 62.6 million) on account of the positive development of business in the first quarter of 2013 whereas cash and cash equivalents decreased by EUR 11.6 million to EUR 7.3 million (31 December 2012: EUR 18.9 million). Compared with 31 December 2012, inventories decreased slightly by EUR 2.1 million to EUR 59.2 million as at 31 March 2013 (31 December 2012: EUR 61.3 million).

13 Interim Group Management Report Interim Consolidated Financial Statements Further Information Assets, Liabilities, Cash Flows, P & L Events after the Balance Sheet Date Risks & Opportunities 13 Equity The Conergy Group s consolidated equity according to IFRS as at 31 March 2013 decreased by EUR 19.7 million to EUR 96.3 million (31 December 2012: EUR 76.6 million). This was mainly due to the consolidated net loss of EUR 17.8 million in the first quarter of Non-current liabilities Non-current liabilities as at 31 March 2013 were EUR million, up only marginally by EUR 0.5 million compared to the end of the 2012 reporting period (31 December 2012: EUR million). Current liabilities Current liabilities as at 31 March 2013 were EUR million (31 December 2012: EUR million), which is an increase of EUR 21.0 million compared to the end of the 2012 financial year. This change is mainly due to the increase in trade accounts payable by EUR 21.2 million to EUR million (31 December 2012: EUR million). In contrast to this borrowings were reduced by EUR 0.9 million to EUR 54.1 million (31 December 2012: EUR 55.0 million). Events after the reporting period As at 30 April 2013, Conergy AG entered into a settlement agreement with six former Management Board members and the former D&O insurer concerning possible breaches of duty asserted by the Company against the former Management Board members. Conergy AG is expected to receive a settlement payment of EUR 6.3 million from the agreement. The validity of this settlement agreement is contingent upon the approval of the next Conergy AG Annual General Meeting. Furthermore, Conergy AG entered into settlement agreements in this context with the parties of the test case (Musterverfahren) regarding the profit warning dated 25 October The payments in favour of the investor plaintiffs shall be settled using part of the settlement payment to be paid to Conergy AG. The validity of the settlement agreements with the parties in the test case depends on the validity of the settlement agreement with the form er Management Board members and the D&O insurer. Risk and opportunity report As an internationally operating company, the Conergy Group is exposed to numerous risks and opportunities. Detailed information regarding the risks and opportunities of Conergy was provided in the combined management report for the 2012 financial year, which was published on 28 March Unless noted otherwise below, in the first quarter of the 2013 financial year basically no material changes relative to the risks and opportunities described in the combined management report as at 31 December 2012 have occurred. Nevertheless, we cannot preclude that changes will occur in the future. Accordingly, any existing uncertainties in that respect naturally harbour a number of risks and rewards, some of which are beyond the direct control of Conergy, that could have a substantial impact on the Company s profit or loss, cash flows and assets and liabilities. In particular, these factors include those mentioned in the risk and opportunity report of the combined management report for the 2012 financial year. The published 2012 consolidated financial statements are available on the website of Conergy AG under Investor Relations/News and Publications/Financial reports. As at 30 April 2013, Conergy AG entered into a settlement agreement with six former Management Board members and the former D&O insurer concerning possible breaches of duty asserted by the Company against the former Management Board members. Conergy AG is expected to receive a settlement payment of EUR 6.3 million from the agreement. The validity of this settlement agreement is contingent upon the approval of the next Conergy AG Annual General Meeting. Furthermore, Conergy AG entered into settlement agreements in this context with the parties of the test case (Musterverfahren) regarding the profit warning dated 25 October The payments in favour of the investor plaintiffs shall be settled using part of the settlement payment to be paid to Conergy AG. The validity of the settlement agreements with the parties in the test case depends on the validity of the settlement agreement with the former Management Board members and the D&O insurer. None of the going-concern risks listed in the 2012 financial year management report that are more likely than not to occur are discernible at this time. Hence, the Management Board assumes that the Company will continue as a going concern. According to Conergy s

14 14 Conergy AG I Interim consolidated financial statements as at 31 March 2013 planning and taking into account EUR million in current credit lines and guarantees under the 2011 Syndicated Loan Agreement, which has a term until July 2015, the Conergy Group s liquidity is basically ensured in both the short and medium term through cash inflows from operating activities. The Company s liquidity cover remains very thin and depends solely on earnings from operating activities. In addition, Conergy is active on the global photovoltaic market in an extremely dynamic environment with an ever-changing playing field. This is also demonstrated by the investigation recently launched by the European Commission into the possibility of imposing anti-dumping duties on imports of solar panels and their key components originating in China, where the scope and consequences for the photovoltaic sector and/or the Company cannot yet be estimated. Even though Conergy enjoys an excellent strategic positioning and is well established on the most important photovoltaic markets, dips in demand caused by factors outside or inside the Company cannot be ruled out. Considerable shortfalls in expected sales and earnings as well as in expected cash inflows from operating activities would impact Conergy s profit or loss, cash flows and assets and liabilities and undermine or even destroy Conergy s solvency. In this case, the currently existing threat to its existence as a going concern could become a reality, if and to the extent that it is impossible to offset the lack of operating cash flows through other actions, especially cash infusions from shareholders and outside lenders. The Management Board cannot judge at this time whether the shareholders or outside lenders would be willing to do so. Outlook Economic development After a slowdown in economic momentum in 2012, the International Monetary Fund (IMF) believes that growth will pick up again in On the whole, it is anticipated that the global economy will grow by 3.3 percent following 3.2 percent in the previous year. The picture in the individual regions varies considerably. Whereas the emerging and developing countries continue to be the major economic engine with an expected growth rate of 5.3 percent, the industrialised countries lag far behind with growth of 1.2 percent. Here, it is expected that the United States and Japan will see above-average expansion at rates of 1.6 percent and 1.9 percent, respectively, while the euro zone will continue to be mired in recession. With economic output down 0.3 percent, the results of the sovereign debt and banking crisis continue to be palpable. The German economy alone is the exception with slight growth in the gross domestic product (GDP) by 0.6 percent. Among the emerging and developing countries, China s economy sees by far the strongest pace of growth at 8.0 percent. According to the IMF, India s economic output is also predicted to expand more robustly than in the previous year with growth of 5.7 percent. After an increase of 3.0 percent in 2012, Latin America s economy is also projected to grow, this time by 3.4 percent. This also applies to southern Africa, where the GDP growth is likely to hit 5.6 percent in 2013 after 4.8 percent in the previous year. Development of the industry Experts believe that demand for solar power installations will reach a new high with newly installed capacity of up to 35 gigawatts in In contrast to previous years, the growth will largely be driven by markets outside of Europe. Whereas until recently Europe still accounted for more than half of newly installed solar power capacity worldwide, this percentage will shift in favour of North America and particularly Asia in the coming years. A decline in demand is expected above all in the established European markets such as Germany and Italy, which is often attributable to deterioration in the political will to subsidise solar energy. In contrast, many governments in Asia are stepping up their efforts to increase the share of energy accounted for by renewable energies. For example, China, one of the largest manufacturing countries, has set the goal of attaining market growth of 10 gigawatts in Japan and India are also expected to continue unabated in expanding their use of solar energy. The same is also true for the United States, where demand is expected to nearly double. After solar module prices fell sharply over the past two years, prices are expected to recover in While we still expect supply to exceed demand, we assume that prices will stabilise or even increase slightly especially in Europe given the sharp drop in prices at the close of Furthermore, a decision by the Council of Europe in favour of introducing punitive tariffs on solar modules and components from China could impact the future development of prices and volumes: In early March 2013, the EU issued a Regulation stipulating that imports from China must be presented to the customs authorities. As the investigation proceeds, a decision will

15 Interim Group Management Report Interim Consolidated Financial Statements Further Information Risks & Opportunities Outlook Share 15 be reached by the beginning of June 2013 on whether provisional punitive tariffs will be imposed in the European Union. At the present time, however, it is impossible to forecast the outcome of this investigation, which specific regulatory measures will be involved and their effects on competition in the photovoltaic industry in Europe and markets outside Europe. Conergy s expected performance Conergy AG confirms its guidance for the 2013 financial year as provided on 28 March 2013 with the publication of the annual financial statements for the 2012 financial year. According to this, sales are expected to rise again in the current financial year for the first time. Assuming a recovery of prices, sales of between EUR 700 and EUR 800 million are likely to be generated on the strength of higher module sales, which means that the Management Board is slightly adjusting its sales forecast of EUR 650 to EUR 750 million which it published at the start of the year. Increasing the largescale project business in Asia, North America and the new export markets such as in Eastern Europe will contribute to this development in particular. The Management Board continues to expect that the Company s strategic realignment is essentially completed and that earnings before interest, taxes, depreciation and amortisation (EBITDA) will improve again as sales rise. Planning therefore continues to assume slightly positive EBITDA for the current financial year. The Conergy share Stock markets worldwide performed satisfactorily on the whole in the first quarter of this year. In the United States especially, the easing brought by avoidance of the fiscal cliff, continuation of the Fed s bond-buying programme and promising economic data triggered a sharp gain of 11.3 percent on the Dow Jones Index. Japan s stock market also continued its upswing due to the expansive monetary policy of the government, climbing 19.3 percent in the first three months. The MSCI World also grew by 7.2 percent. In contrast, the brakes were put on European stock markets by ongoing concern about the sovereign debt and banking crisis. Although the DAX initially rose sharply until mid-march 2013 and reached a new fiveyear high of 8,058 points on 14 March 2013, concerns about the Cyprus bailout package led to renewed uncertainty among stock market participants. By the end of the reporting period, the index fell again to 7,795 points, which represents a gain of 2.4 percent compared with the start of the year. The indexes covering small and medium-sized companies performed considerably better. For instance, the TecDAX gained 12.5 percent, while the MDAX was up 11.8 percent. The ÖkoDAX s performance was also positive. The index, which specialises in the performance of the ten most liquid renewable energy companies in Germany, grew 5.7 percent. The Company will also focus on generating positive cash flows from operating activities. Reducing vertical integration has significantly lowered the Conergy s funding requirements recently. The Company therefore assumes that its activities will be largely financed through its cash flows from operating activities. Conergy AG s share price was up disproportionately to this development by 32.1 percent in the first quarter of In addition to improved sentiment for solar energy companies overall, this also reflects news about an end to the sharp drop in prices. However, the volatility of solar energy company shares remains high.

16 16 Conergy AG I Interim consolidated financial statements as at 31 March 2013 Development of the Conergy share in the first quarter of 2013 (indexed; 100 = XETRA opening price on 2 January 2013) January February March Conergy TecDAX ÖkoDAX Key figures for the Conergy share Q Share: no-par value share Nominal capital EUR 159,795,307 Number of shares (as at 31 Mar) shares 159,795,307 Market capitalisation (as at 31 Mar) * EUR 59,124,264 Closing share price (as at 31 Mar) * EUR 0.37 High * EUR 0.40 Low * EUR 0.28 Daily average trading volume * shares 578,382 * Xetra Securities Identification Number International Securities Identification Number (ISIN) Stock exchange symbol Stock exchanges A1KRCK DE000A1KRCK4 CGYK Xetra Frankfurt/Main Stuttgart Düsseldorf Hamburg Munich Hanover Berlin-Bremen Hamburg, Germany, 3 May 2013 Conergy AG The Management Board

17 Interim Group Management Report Interim Consolidated Financial Statements Further Information Consolidated income statement Consolidated balance sheet 17 Condensed interim consolidated financial statements as at 31 March 2013 Contents IINTERIM CONSOLIDATED FINANCIAL STATEMENTS 18 Consolidated statement of comprehensive income 19 Consolidated balance sheet 20 Consolidated statement of cash flows 21 Consolidated statement of changes in equity 22 Condensed notes 28 Review Report FURTHER INFORMATION 29 Disclaimer, contact and imprint 30 Financial calendar

18 18 Conergy AG I Interim consolidated financial statements as at 31 March 2013 Consolidated statement of comprehensive income of the Conergy Group EUR million Q Q * Sales Changes in inventories of finished goods and work in progress Cost of materials Gross profit Personnel expenses Other own work capitalised Other operating income Other operating expenses Earnings before interest, taxes, depreciation and amortisation (EBITDA) Depreciation, amortisation and impairment losses Earnings before interest and taxes (EBIT) Non-operating income Non-operating expenses Non-operating result Earnings before taxes (EBT) ** Income taxes Income after taxes Changes in value recognised in equity Exchange differences from the translation of foreign subsidiaries Comprehensive income *** Income after taxes Thereof attributable to Shareholders of Conergy AG (consolidated profit or loss) Comprehensive income/loss *** Thereof attributable to Shareholders of Conergy AG Earnings per share (in EUR) Basic Diluted * Previous years figures adjusted owing to IAS 8; see notes ** Corresponds to earnings from ordinary activities *** Corresponds to the sum of income after taxes and changes in value recognised in equity

19 Interim Group Management Report Interim Consolidated Financial Statements Further Information Consolidated income statement Consolidated balance sheet 19 Consolidated balance sheet of the Conergy Group EUR million 31 Mar Mar Dec 2012 Non-current assets Goodwill Intangible assets Property, plant and equipment Financial assets Other assets Deferred tax assets Current assets Inventories Trade accounts receivable Financial assets Other assets Cash and cash equivalents Total assets Equity attributable to the shareholders of Conergy AG Capital stock Capital reserves Other reserves Total equity Non-current liabilities Provisions Borrowings Other liabilities Deferred tax liabilities Current liabilities Provisions Borrowings Trade accounts payable Other liabilities Current income tax liabilities Total equity and liabilities

20 20 Conergy AG I Interim consolidated financial statements as at 31 March 2013 Consolidated statement of cash flows of the Conergy Group EUR million Q Q * Operating result from continuing operations (EBIT) Depreciation and amortisation Change in non-current provisions Gains ( )/ losses (+) from disposal of fixed assets Increase ( )/ decrease (+) in inventories Increase ( )/ decrease (+) in trade receivables Increase ( )/ decrease (+) in trade payables Change in other net assets / Other non-cash items Income taxes paid ( )/ received (+) Net cash generated from investing activities (Net cashflow) Cash inflows from sales of property, plant, equipment and other assets Cash outflows for investments in property, plant and equipment and intangible assets Cash receipts from the sale of subsidiaries Change in non-current financial assets Interest received Net cash generated from investing activities Cash flow before financing activities Capital contributions Cash payments in connection with the acquisition of equity Change in borrowings Cash outflows for retirements of debt Interest paid Net cash generated from financing activities Change in cash from operating activities (total) Cash and cash equivalents as at Change from exchange rate changes Cash and cash equivalents as at * Previous years figures adjusted owing to IAS 8; see notes

21 Interim Group Management Report Interim Consolidated Financial Statements Further Information Consolidated statement of cash flows Consolidated statement of changes in equity 21 Consolidated statement of changes in equity of the Conergy Group Equity attributable to the shareholders of Conergy AG Other reserves Changes in value recognised directly in equity EUR million Capital stock Capital reserves Retained earnings Currency changes Total equity As at 01 Jan Non-owner changes in capital Earnings after taxes Gains and losses recognised in equity Comprehensive income/loss Owner-based change in capital As at 31 Mar As at 01 Jan Non-owner changes in capital Earnings after taxes Gains and losses recognised in equity Comprehensive income/loss Owner-based change in capital As at 31 Mar