A v e r a g e a n n u a l g r o u n d s o l a r e n e r g y k W h / m 2 / d a y 3 4 4.5 5 5.5 6 6 . 5 7 CENTROTEC The European Energy Saving Company Q01 Quarterly Report 01/2010 Group Quarterly Report of CENTROTEC Sustainable AG, Brilon
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CENTROTEC The European Energy Saving Company
Q01Quarterly Report 01/2010Group Quarterly Report of
CENTROTEC Sustainable AG, Brilon
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Highlights
Revenue
> Record revenue of EUR 103.1 million in Q1 (+6.5 % on previous year and also highest-ever
first-quarter revenue)
> Revenue growth in all segments despite exceptionally long, hard winter
> Almost 20 % revenue growth in Gas Flue Systems segment
> Very good business performance in France, position stabilised in Russia
> Share of German heating market increases yet again
Earnings
> Overproportional rise in earnings
- EBITDA + 72 %, from EUR 5.4 million in previous year to EUR 9.3 million
- EBIT more than trebles from EUR 1.4 million in previous year to EUR 5.1 million
> Positive investment result pushes up EBT to EUR 5.1 million (previous year
EUR -2.1 million)
> Earnings per share (EPS) reach EUR 0.19 (previous year EUR -0.14)
Forecast
> Rebound in energy prices adds further to appeal of energy-saving solutions
> Successful launches of own range of heat pumps and of integrated energy roof system
create fresh future potential
> Full-year forecast for 2010 is resoundingly confirmed:
- Revenue: EUR 480 to 500 million
- EBIT: EUR 30 to 32 million
- Earnings per share (EPS): EUR 1.10 to 1.20
Consolidated Key Figures
Total revenue 103,077 96,748 6.5
Climate Systems 67,194 65,983 1.8
Gas Flue Systems 27,366 22,939 19.3
Medical Technology & Engineering Plastics 8,517 7,826 8.8
Earnings
EBITDA 9,346 5,415 72.6
EBIT 5,116 1,367 274.2
EBIT yield (in %) 5.0 1.4
EBT 5,074 (2,125)
EAT 3,164 (2,359)
EPS (in EUR; basic) 0.19 (0.14)
Balance sheet structure*
Balance sheet total 384,766 379,646 1.3
Shareholders' equity 135,497 132,674 2.1
Equity ratio (%) 35.2 34.9
Property, plant and equipment 90,864 91,252 (0.4)
Intangible assets 37,339 37,542 (0.5)
Goodwill 60,948 60,914 0.1
Net financial liabilities 95,193 86,451 10.1
Net working Capital 64,437 53,642 20.1
31/03/2010[EUR '000]
Changes [Percent]
31/03/2009[EUR '000]
Net working Capital 64,437 53,642 20.1
Cash flow statement
Cash flow I (EAT & depreciation/ amortisation) 7,394 1,689 337.8
Cash flow from operating activities (4,281) 8,742
Cash flow from investing activities (4,475) (793) 464.3
Employees
Total (in FTE) 2,561 2,549 0.5
Shares
Number of shares*/** 16,704 16,610
Quaterly-high quotation*** 12.96 10.80
Quaterly-low quotation*** 9.15 6.05
Quartaly-end quotation*** 11.90 7.60
* Previous period is related to 31/12/2009
** Weighted average shares outstanding (basic; in thousand)
*** Quotation in EUR
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Interim Group Management Report Development in revenue and earnings
In the first three months of the current financial year the CENTROTEC Group – hereinafter also
referred to as CENTROTEC – posted revenue growth of 6.5 %, taking it to EUR 103.1 million
(previous year EUR 96.7 million). Despite another long, hard winter this was therefore the
highest-ever first-quarter revenue for CENTROTEC, confirming the sound basis from the
group's clearly positive revenue performance since mid-2009. All three segments were able to
contribute towards this revenue growth. Ag group level, there were growth stimuli on both the
domestic and international markets despite the diverging fortunes of specific segments, as well
as from country to country. The revenue share generated outside the home markets of
Germany and the Netherlands nevertheless edged up to 37 %. This development was
substantially down to very good progress in the French market, but also in Belgium and certain
Southern European markets. The position in the markets of the former CIS moreover
stabilised.
Revenue Q1/2010 Q1/2009 Change by segment EUR million EUR million
Climate Systems 67.2 66.0 1.8 %
Gas Flue Systems 27.4 22.9 19.3 %
Medical Technology & Engineering Plastics 8.5 7.8 8.8 %
Total 103.1 96.7 6.5 %
The Climate Systems segment, which generates the highest revenue, achieved moderate
revenue growth of 1.8 %. It should be borne in mind that this area was affected the most by the
long winter and the restrictions that this imposed on the installation of heating, climate control
and ventilation solutions and solar thermal systems. On the other hand the Gas Flue Systems
segment enjoyed a rise in revenue of 19.3 % compared with the first quarter of the previous
year, albeit which had been weak. Having contracted markedly in the previous year, the
Medical Technology & Engineering Plastics segment, too, built on the process of stabilisation
that had begun towards the end of 2009 and posted revenue growth of 8.8 % in the first quarter
of 2010; both the Medical Technology and the Engineering Plastics areas contributed to this
positive performance.
By virtue of a below-average rise in expenses compared with growth in consolidated revenue,
the operating result at EBITDA level rose substantially to EUR 9.3 million (previous year EUR
5.4 million) and EBIT more than trebled to EUR 5.1 million (previous year EUR 1.4 million). In
view of the seasonality observed in the group's core areas and the very weak prior-year
quarter, this development should only be extrapolated over the full year with caution, but it
does particularly highlight the success of the earnings improvement programmes being
implemented on an ongoing basis throughout the CENTROTEC Group. Earnings before tax
(EBT) amounted to EUR 5.1 million (previous year EUR -2.1 million). This reflects the further
improvement in the interest result and especially the positive contribution of the investment
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result of EUR 1.3 million (previous year EUR -1.9 million). Earnings after tax (EAT) of EUR 3.2
million (previous year EUR -2.4 million) already include a temporarily elevated effective tax rate
due to local and seasonal non-recurring effects; it will, however, fall appreciably over the year
as a whole. Each CENTROTEC share thus represents earnings (EPS) of EUR 0.19 (previous
year EUR -0.14).
Development of the segments
Climate Systems
Revenue for the Climate Systems segment gained 2 % on the previous year in the first quarter
of 2010, reaching EUR 67.2 million (previous year EUR 66.0 million). This is a very welcome
development, bearing in mind the very harsh, protracted winter and how it hindered the
activities of the heating, ventilation, climate control and solar thermal industry. Because this
rise was higher than the industry average specifically in the domestic markets, the companies
of the CENTROTEC Group were again able to add significantly to their market shares in all
product areas in their core markets.
This revenue growth moreover had an disproportionate impact on earnings. EBITDA increased
by 19 % to EUR 4.6 million (previous year EUR 3.8 million), and EBIT was EUR 2.1 million or
55 % up on the prior-year level (EUR 1.3 million). The further improvement in the purchased
materials ratio played a key role in this development, more than compensating for the effect of
a slightly above-average rise in personnel expenses that was investment-driven. The
particularly sharp rise in EBIT was furthermore fuelled by depreciation and amortisation at the
prior-year level.
Key figures Q1/2010 Q1/2009 Change Climate Systems EUR '000 EUR '000
Revenue from third parties 67,194 65,983 1.8 %
Revenue from other segments 68 79
Change in inventories (367) 399
Cost of materials (30,862) (31,343) (1.5 %)
Personnel expenses (22,198) (21,810) 1.8 %
Other income and expense (9,272) (9,476) (2.2 %)
EBITDA 4,563 3,832 19.1 %
Depreciation and amortisation (2,508) (2,510) (0.1 %)
EBIT 2,055 1,322 55.4 %
The early response to the industry trend towards integrated systems and the fact that such
innovative, user-friendly, efficient system solutions have already been brought onto the market
pave the way for the segment's positive development in a market environment that remains
difficult both nationally and internationally. Another important landmark development is the
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market launch of our own range of heat pumps. The product range, comprising brine/water and
air/water systems, achieves competition-beating efficiency values (COP) and consequently
generated considerable customer interest at the product launch at exhibitions in Essen and
Nuremberg. Heat pumps, too, are thus expected to see their market shares rise in the medium
term.
The uncertain economic situation, the recent instability in subsidisation policies particularly in
Germany – with a reduction at the start of this year to be followed by a suspension of subsidies
for 2010 – the low energy prices over the year as a whole and the long winter are the main
factors behind the generally restrained demand. Nevertheless, specifically the palpable
rebound in energy prices since mid-2009 is already increasing the incentive to invest in more
efficient heating, ventilation and climate control technology, notwithstanding the effects of any
subsidies. This should give the overall market a renewed boost later on in the year. Following
their sharp contraction in 2009, the markets in the former CIS states but also in Southern and
Western Europe are now showing initial signs of a recovery.
The Climate Systems segment performed the groundwork for capitalising better on market
openings through capital expenditure of EUR 1.7 million (previous year EUR 1.6 million) in the
first quarter of the current financial year. The growing market shares and the positive business
performance in a nationally and internationally difficult market environment furthermore
highlight the strong position enjoyed by CENTROTEC companies in the future market of
energy-saving solutions. In light of this, CENTROTEC is confident of reaching the full-year
forecast for both revenue for the segment of EUR 320 to 330 million and the forecast of an
operating earnings margin slightly up on the previous year's level. The medium-term target for
the segment is organic growth of 8 to 10 % and an EBIT margin of 8 to 9 % based on further
market growth.
Gas Flue Systems
In the Gas Flue Systems segment the positive development in revenue from the second half of
2009 continued throughout the first three months of 2010, with revenue rising by 19 % to the
record level of EUR 27.4 million (previous year EUR 22.9 million). Compared with the weak
first quarter of 2009, the operating result (EBIT) showed a significant rise to EUR 2.7 million
and therefore reached an EBIT margin of 9.7 %. EBITDA, too, increased almost four-fold on
the same period of the previous year (EUR 1.0 million) to EUR 3.8 million.
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Key figures Q1/2010 Q1/2009 Change Gas Flue Systems EUR '000 EUR '000
Revenue from third parties 27,366 22,939 19.3 %
Revenue from other segments 514 201
Change in inventories 2,760 50
Cost of materials (15,573) (11,930) 30.5 %
Personnel expenses (6,742) (6,149) 9.6 %
Other income and expense (4,533) (4,069) 11.4 %
EBITDA 3,792 1,042 >100 %
Depreciation and amortisation (1,132) (960) 17.9 %
EBIT 2,660 82 >100 %
While revenue had fallen sharply in the prior-year quarter, among other reasons due to
customers reducing inventory levels, the positive revenue and earnings performance of the
segment in the opening months of the current financial year was underpinned by the further
spread of condensing boiler technology and, in particular, continuing good business progress
for technical roof products. Solar mounting systems and integrated photovoltaic systems again
enjoyed success; considerable revenue growth was achieved in the French and Belgian
markets in particular. The air ducting systems and the patented product Ubiflex that lends itself
particularly to use with solar systems also contributed towards beating the previous revenue
record (EUR 26.9 million) from the first quarter of 2008.
In the short term, the technical roof products area will enjoy further scope for growth from the
integrated energy roof system that was first unveiled to the public at the end of 2009 and is
now about to be brought onto the market in 2010. A leading player in the European and
international heating industry has moreover been acquired as a new customer for gas flue
systems, and the companies in the segment have been granted the vital UL test mark that will
now enable them to access the North American market. These three milestones are extending
the existing basis for growth that will remain substantially above the industry average.
Together with capital expenditure totalling EUR 1.2 million (previous year EUR 1.6 million) –
which focused on the segment-wide roll-out of ERP and an extension to a building at Brilon –
this paves the way for achieving the 2010 revenue forecast of EUR 130 to 140 million, with an
EBIT margin on a par with the previous year. On this basis, the medium-term forecast for
organic revenue growth averaging 10 to 12 % annually and a target EBIT margin in double
figures remain in our sights.
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Medical Technology & Engineering Plastics
The signs of stabilisation that appeared in the Medical Technology & Engineering Plastics
segment at the end of 2009 took on firmer contours in the first quarter of 2010 and the segment
increased its revenue by 8.8 % year on year to EUR 8.5 million (previous year EUR 7.8
million). This positive overall development was aided both by the steady performance of the
Medical Technology area, as last year, and by revenue growth for the Engineering Plastics
area, which had been badly affected by the economic crisis in 2009.
This palpable upswing in revenue for the segment led to EBITDA of EUR 0.9 million (previous
year EUR 0.5 million) and a return to positive territory for EBIT of EUR 0.3 million. Whereas
both these figures had still been just negative in the corresponding prior-year period, now that
revenue is rising the positive effects of implementing restructuring measures at an early stage
are becoming increasingly apparent.
Key figures Q1/2010 Q1/2009 Change Medical Technology & Engineer. Plastics EUR '000 EUR '000
Revenue from third parties 8,517 7,826 8.8 %
Revenue from other segments 103 112
Change in inventories 136 60
Cost of materials (2,887) (2,575) 12.1 %
Personnel expenses (3,629) (3,478) 4.3 %
Other income and expense (1,315) (1,404) (6.3 %)
EBITDA 925 541 70.9 %
Depreciation and amortisation (590) (578) 2.2 %
EBIT 335 (37) >100 %
Capital expenditure by the Medical Technology & Engineering Plastics segment amounted to
EUR 0.7 million in the first quarter (previous year EUR 0.3 million). It focused on the
construction of the new production, development and administration centre at the segment's
main location in Fulda. This provides an improved springboard for exploiting the opportunities
present in the Medical Technology area. Now that developments have stabilised in the
Engineering Plastics area too, CENTROTEC is confident of achieving the revenue forecast for
2010 of EUR 30 to 32 million, with a low single-digit earnings margin. Organic revenue growth
in excess of 10 % with an EBIT margin in the high single-digit or low double-digit range
remains the segment's medium-term target.
Development of investments
The 26.16 % investment in the listed CENTROSOLAR Group – hereinafter also referred to as
CENTROSOLAR – constitutes the most significant investment of the CENTROTEC Group that
is not comprehensively consolidated.
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The business performance in the first quarter of 2010 showed a continuation in the positive
trends that had already been clearly in evidence in the second half of 2009. Despite difficult
weather conditions, CENTRSOLAR's revenue rose again by 38 % to EUR 85.0 million
(previous year EUR 61.7 million). EBIT reached EUR 8.2 million (previous year EUR -7.3
million) and, along with the earnings after tax of EUR 4.4 million (previous year EUR -6.3
million), set a new record for a quarter. Earnings after tax of EUR 1.2 million are included in
CENTROTEC's EBT figure, in line with the latter's interest in the former.
This decidedly positive revenue and earnings performance that outstripped the company's own
expectations, despite the difficult situation in the photovoltaic market, is down to
CENTROSOLAR's value-added strategy based on intensive customer service and patented
technology components. This approach produced profitable revenue growth in Germany, Italy,
the USA and above all France. The focus on roof business proved particularly fruitful because
such systems attract special subsidies in a large number of countries and the company's well-
established customer service gives it a major competitive advantage. There are clear signs that
the positive trend will continue in the second quarter. In view of the proposed amendment to
the feed-in tariff in Germany mid-way through the year, the German market is nevertheless
expected to suffer from a downturn in revenue and margins from the third quarter on. However
expanding international business, which already accounted for 53 % of CENTROSOLAR's total
business volume in the first quarter, should compensate partly for this effect. The pressure on
margins will moreover be cushioned in part by further operational improvements. The progress
already achieved in the past in this respect is reflected in module manufacturing costs that are
the best in Europe, thanks to the cutting-edge module manufacturing facility in Wismar that has
recently been expanded to a capacity of 155 MWp.
On this basis, and bearing in mind that the forecast EBIT for the whole year should already be
achieved in the first half, CENTROSOLAR's management is able to reassert the full-year
revenue forecast of EUR 340 to 370 million. The operating result (EBIT) is expected to surpass
the forecast range of EUR 14 to 16 million. However, the forecast will probably not be adjusted
to reflect this until the second half of the current year.
Net worth and financial position
There were no material changes to the balance sheet structure in the first three months of the
current financial year compared with the end of the 2009 financial year.
As at the end of the first quarter, the balance sheet total of the CENTROTEC Group totalled
EUR 384.8 million and was therefore 1.3 % higher than at the end of 2009. The biggest
changes on the assets side were within current assets. Trade receivables grew from EUR 58.7
million to EUR 65.2 million. Cash and cash equivalents fell by approximately the same degree,
from EUR 35.4 million to EUR 30.1 million. Within non-current assets, the biggest change is
the EUR 1.3 million increase in investments to EUR 25.0 million following the pro rata share of
CENTROTEC in the result for the quarter of CENTROSOLAR.
On the equity and liabilities side of the balance sheet, shareholders' equity rose from
EUR 132.7 million to EUR 135.5 million as a result of ploughback of the result for the quarter.
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The equity ratio thus rose from 34.9 % at the end of 2009 to 35.2 % at the end of the quarter.
Net working capital (current assets less cash and cash equivalents, less current non-interest-
bearing liabilities) rose from EUR 53.6 million to EUR 64.4 million due to reporting date factors,
including the sharp rise in business activity particularly towards the end of the first quarter.
Compared with the same point in 2009, the rise of around 6 % reflected the revenue growth
achieved in the first quarter. Following the very sharp reduction in net financial liabilities in
2009, this item was up EUR 8.7 million on the position at December 31, 2009 to EUR 95.2
million. This was a consequence of the EUR 5.2 million fall in cash and cash equivalents to
EUR 30.1 million and the slight rise of EUR 3.5 million in financial liabilities to EUR 125.3
million. Compared with the position at December 31, 2009 net financial liabilities have
nevertheless come down by EUR 12.5 million. The aim for the year as a whole is to achieve a
further reduction in financial liabilities, albeit of not the same extent as in the previous year.
The rise in working capital drove cash and cash equivalents down from EUR 35.4 million at the
end of the 2009 financial year to EUR 30.1 million at March 31, 2010. Thanks to its existing
cash and cash equivalents and unutilised credit lines, CENTROTEC continues to have
adequate liquidity reserves.
Cash flow for the first three months of the current financial year was clearly negative compared
with the first three months of the previous year following the rise in working capital and the
continuing high level of capital expenditure. Overall, despite the increase in EBIT to EUR 5.1
million (previous year EUR 1.4 million) the net change in cash and cash equivalents was a fall
of EUR 10.6 million (previous year increase of EUR 4.8 million).
With regard to the cash flow from operating activities, the rise in inventories and in trade
receivables as a result of the improved business position (EUR -8.6 million) coupled with a fall
in trade liabilities (EUR -2.7 million) produced a negative cash flow of EUR 4.3 million. These
figures, which provide a snapshot at the reporting date, had still been positive at the end of the
corresponding prior-year quarter due to the very uncertain economic situation at the time and
CENTROTEC's adherence to a more restrictive financial policy in response; despite the much
worse EBIT in 2009 the cash flow from operating activities was thus positive at EUR 8.7
million.
Cash flow from investing activities reflects the ongoing intensive efforts of the CENTROTEC
Group to maintain and extend the operating basis for the future development of the group, and
led to a surplus of cash payments amounting to EUR 4.5 million (previous year EUR 0.8
million) in the first quarter of 2010.
The cash flow from financing activities amounted to EUR -1.9 million in the first three months of
the current financial year (previous year EUR 3.2 million). This figure represents the net capital
repayments of financial liabilities made during the quarter, based on the repayments schedule,
and should lead to a further drop in net financial liabilities of around EUR 10 million for the year
as a whole.
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Personnel
At March 31, 2010 the comprehensively consolidated companies of the CENTROTEC Group
employed a total of 2,665 people (previous year 2,639). Expressed as full-time equivalents
(FTE), this equated to 2,561 jobs. The average number of full-time equivalents for the first
quarter was 2,567, reflecting a slight rise on the corresponding prior-year figure (2,557 FTE).
These figures include a small number (13 FTE on March 31, 2010 / previous year 0) of
employees still on short-time in 2010, exclusively in the Engineering Plastics area of the
Medical Technology & Engineering Plastics segment.
Personnel expenses for the group climbed 3.6 % to EUR 32.6 million (previous year EUR 31.4
million) and therefore at a much slower rate than the 8.6 % rise in aggregate operating
performance. This brought the personnel expenses ratio down from 32.3 % in the first quarter
of 2009 to 30.9 % in the past quarter. This development, along with the renewed fall in the
purchased materials ratio in the first quarter, demonstrates the success of the ongoing group-
wide efforts to optimise its processes.
Shares
The price of CENTROTEC shares over the first few months of 2010 was clearly positive,
climbing around 40 % compared with the 2009 year-end price and therefore outperforming the
index to which it returned in 2008, the SDAX, by almost three times. There were two surges in
the trading price, each of them featuring high trading volumes. The first took place at the start
of January, when the shares rose from just over EUR 9 to around EUR 12. The second strong
upward movement took place after the reporting period, following publication of the full trading
figures for 2009, taking the shares up from EUR 11.90 at the end of the quarter to EUR 13.50
by mid-April. Sandwiched between these two surges, the trading price of CENTROTEC shares
performed a sideways shift with consistently high trading volumes.
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CENTROTEC share price performance (Xetra) from January to April 2010, source: www.ariva.de
At March 31, 2010 there continued to be 16,716,262 no-par value ordinary shares outstanding
of CENTROTEC Sustainable AG. The company holds 12,080 of these shares. The market
capitalisation of the CENTROTEC Group was therefore around EUR 200 million at the end of
the quarter.
After the period under review Impax Asset Management Limited reported that it has reduced its
CENTROTEC shareholding to less than three percent. Also after the reporting period, Fidelity
Funds SICAV reported that its shareholding had risen above three percent, and UBS Equity
Funds Management Company gave notice that it had moved below the three percent
threshold. Meanwhile, various national and international investment funds increased their
shareholdings or bought into the company for the first time. The analysts following
CENTROTEC moreover substantially increased their share price targets across the board
during the opening months of the current financial year.
Opportunities and risks
No material changes to the opportunities and risks for the group as presented for the 2009
financial year occurred during the period under review. Nor did the assessments, the methods
of risk identification and the measures derived from them for controlling risks change materially
compared with the view presented in the 2009 Group Management Report.
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Expectations
There has been clear evidence since the end of 2009, in the form of a growing number of
economic indicators, that the global economic situation is stabilising, allowing for a cautiously
optimistic view of the overall economic prospects for 2010. However, it is necessary to bear in
mind that there are still a wide variety of risks to the global economic recovery, with the result
that any forecast currently involves a greater degree of uncertainty than in previous years.
In recent years the market for energy efficiency and the use of renewable energies has
consistently achieved growth in excess of that of the overall economy. This market addressed
by CENTROTEC will remain of pre-eminent significance for the global economy, because the
efficient use of finite fossil fuels and their substitution with renewables constitute economical
and ecological imperatives. For this reason, the practice that emerged in Germany in May 2010
of cutting and abolishing subsidies for heating renovation and for the use of renewable ener-
gies sends out the wrong signal, and may unsettle consumers and make them more reluctant
to invest. Specifically the building sector offers the most potential for saving energy and cutting
CO2 emissions, and therefore leverages the attainment of climate protection targets. Investing
in saving energy fundamentally offers attractive payback periods that will continue to shorten
as energy prices rise further. Although state subsidies make the investment in energy-efficient
heating technology more attractive, in many cases they only marginally reduce the payback
period. Against the backdrop of the anticipated further rise in energy prices, a freeze on
subsidies should therefore not have any material impact on business in the medium term.
The CENTROTEC Group has already demonstrated in the past, through its efficient energy-
saving solutions for buildings, that it can navigate successfully through generally difficult
economic periods, of which 2009 was unquestionably one. This strength, which is based on
flexibility, innovativeness and closeness to the market, will remain the basis for successful
business performance in the current financial year. Revenue and earnings for the first quarter
of 2010 are well up on the reference figures for the previous year and for the record-breaking
year 2008, and therefore supply proof of the group's stable, profitable growth. The increased
market shares of recent years, in some cases by impressive amounts, moreover reflect the
outstanding market position of the CENTROTEC Group companies. Product innovations such
as Wolf's own range of heat pumps and the integrated energy roof system marketed jointly by
Ubbink and Wolf, but also the ongoing refinement of the existing product range, are a
springboard to building yet further on it and maintaining the positive development of the group
over years to come.
On this basis, the targets which CENTROTEC forecast for the group at the start of the year –
revenue of EUR 480 to 500 million, EBIT of EUR 30 to 32 million and earnings per share of
EUR 1.10 to 1.20 – are reasserted. The medium-term objective of the CENTROTEC Group is
organic revenue growth of around 10 %, coupled with an increased EBIT margin in the high
single-digit range.
Brilon, May 2010
The Management Board
0.0
Non-current assets
Goodwill 60,948 60,914
Intangible assets 37,339 37,542
Property, plant and equipment 90,864 91,252
Financial investments accountend for using the equity method 24,950 23,699
Loans and investments 1,732 715
Other assets 1,635 1,531
Deferred tax assets 3,827 3,827
221,295 219,480
Current assets
Inventories 59,996 57,024
Trade Receivables 65,174 58,723
Income tax receivable 684 769
Cash and cash equivalents 30,116 35,356
Other assets 7,501 8,294
163,471 160,166
Assets 384,766 379,646
Shareholders' equity
Share Capital 16,716 16,716
31/12/2009
31/03/2010 31/12/2009
Equity and Liabilitiesin EUR thousand
Assetsin EUR thousand
31/03/2010
Consolidated Statement of
Financial Position
Share Capital 16,716 16,716
Capital reserves 25,302 25,302
Treasury stock (112) (112)
Retained earnings and profit carryforward 90,652 85,577
Profit attributable to shareholders of CENTROTEC Sustainable AG 3,192 5,400
135,750 132,883
Minority interest presented within equity (253) (209)
135,497 132,674
Non-current liabilities
Pension provisions 22,545 22,253
Other provisions 11,659 11,396
Financial liabilities 88,053 90,080
Other liabilities 4,292 3,621
Deferred tax liabilities 16,546 16,727
143,095 144,077
Current liabilities
Other provisions 1,471 1,708
Income tax payable 5,735 6,042
Financial liabilities 37,256 31,727
Trade liabilities 29,037 31,402
Other liabilities 32,675 32,016
106,174 102,895
Equity and Liabilities 384,766 379,646
Consolidated Statement of Financial Position | 15Q01 |
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Revenues 103,077 96,748
Other income 2,139 1,554
Changes in inventories of finished goods and work in progress 2,529 509
Production for own fixed assets capitalised 672 749
Cost of purchased materials and services (48,571) (45,456)
Personnel expenses (32,569) (31,437)
Other expenses (17,931) (17,252)
EBITDA 9,346 5,415
Depreciation and amortisation (4,230) (4,048)
Operating income (EBIT) 5,116 1,367
Interest income 70 103
Interest expense (1,363) (1,674)
Result from equity investments 1,251 (1,921)
Result before income taxes (EBT) 5,074 (2,125)
Income taxes (1,910) (234)
01/01/201031/03/2010
01/01/200931/03/2009in EUR thousand
Consolidated Income
Statement
Net income (EAT) 3,164 (2,359)
Profit or loss attributable to minority interest (28) (24)Profit or loss attributable to shareholders of CENTROTEC Sustainable AG 3,192 (2,335)
EPS (Earnings per share in EUR)
Earnings per share (basic) 0.19 (0.14)
Earnings per share (diluted) 0.19 (0.14)
Weighted average shares outstanding (in units; basic) 16,704,182 16,570,194
Weighted average shares outstanding (in units; diluted) 16,776,161 16,613,182
Consolidated Income Statement | 16Q01 |
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Net income (EAT) 3,164 (2,359)
Exchange Rate differences on translation 79 (44)
Derivative financial instruments (771) (2,239)
Income tax relating to components of other comprehensive income 174 561
Other comprehensive income, net of tax (518) (1,722)
Total comprehensive income 2,646 (4,081)
Attributable to:
Minority interest (44) (22)
Shareholders of CENTROTEC Sustainable AG 2,690 (4,059)
01/01/201031/03/2010
01/01/200931/03/2009in EUR thousand
Consolidated Statement of
Comprehensive Income
Consolidated Statement of Comprehensive Income | 17Q01 | C
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Net income before interest and taxes (EBIT) 5,116 1,367
Depreciation and amortisation 4,230 4,048
Gain/ loss on disposal of fixed assets 13 (78)
Other non-cash items 150 (815)
Increase/ decrease in provisions 319 87
Increase/ decrease in inventories, trade receivables and other assets that cannot be allocated to investing or financing activities (8,649) 1,113Increase/ decrease in trade payables and other liabilities that cannot be allocated to investing or financing activities (2,681) 5,016Interest paid (1,195) (1,092)
Income tax paid (1,584) (904)
Cash flow from operating activities (4,281) 8,742
Purchase of property, plant and equipment/ intangible assets/ investments/ finanical assets loans receivable (4,503) (3,480)Proceeds from disposal of property, plant and equipment/ intangilbe assets/ investments/ financial assets/ loans receivable 28 2,687
Cash flow from investing activities (4,475) (793)
Proceeds from issuance of shares 0 35
Proceeds from financial liabilities 151 1,940
Repayment of financial liabilities (2,015) (5,154)
01/01/201031/03/2010
01/01/200931/03/2009in EUR thousand
Consolidated Statement of Cash
Flows
Repayment of financial liabilities (2,015) (5,154)
Cash flow from financing activities (1,864) (3,179)
Change in financial resources* (10,620) 4,770
Financial resources at the beginning of the financial year 19,716 4,401
Financial resources at the end of the period 9,096 9,171
* Cash and cash equivalents deducted of credits current account
Consolidated Statement of Cash Flows | 18Q01 | C
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January 1, 2010 16,716 25,302 (112) 2,076 663 (237) (2,315) 85,390 85,577 5,400 132,883 (209) 132,674
Transfer to revenue reserves 5,400 5,400 (5,400)
Change from exercise of options
Stock option plan 177 177 177 177
Comprehensive income 174 95 (771) (502) 3,192 2,690 (44) 2,646
Other changes
March 31, 2010 16,716 25,302 (112) 2,253 837 (142) (3,086) 90,790 90,652 3,192 135,750 (253) 135,497
January 1, 2009 16,582 25,068 (112) 1,452 210 (321) (390) 66,768 67,719 18,622 127,879 (75) 127,804
Transfer to revenue reserves 18,622 18,622 (18,622)
Change from exercise of options 7 28 35 35
Stock option plan 150 150 150 150
Comprehensive income
Consolidated Statement of Changes in Equity
Total capital to shareholders of
CENTROTEC Sustainable AG
Minority interest
presented within euity
Retainedearnings and
profitcarryforward
Deferred taxreserve
Profit attributable to shareholders
of CENTROTEC Sustainable AG
Fair Valueadjustment of
financialinstruments
Sum otherretained
earnings andprofit
carryforwardShare
CapitalCapitalreservein EUR thousand
Consolidated equity
Treasurystock
Stock optionreserve
Currencytranslation
differences inshareholders'
equity
Comprehensive income 561 (46) (2,239) (1,724) (2,335) (4,059) (22) (4,081)
Other changes
March 31, 2009 16,589 25,096 (112) 1,602 771 (367) (2,629) 85,390 84,767 (2,335) 124,005 (97) 123,908
Consolidated Statement of Changes in Equity | 19Q01 | C
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Consolidated Segment Reporting
Segment Structurein EUR thousandIncome Statement
01/01/201031/03/2010
01/01/200931/03/2009
01/01/201031/03/2010
01/01/200931/03/2009
01/01/201031/03/2010
01/01/200931/03/2009
01/01/201031/03/2010
01/01/200931/03/2009
01/01/201031/03/2010
01/01/200931/03/2009
Revenue from third parties 67,194 65,983 27,366 22,939 8,517 7,826 0 0 103,077 96,748
Revenue from other segments 68 79 514 201 103 112 (685) (392) 0 0
Changes in inventories of finished goods and work in progress (367) 399 2,760 50 136 60 0 0 2,529 509
Cost of purchased materials (30,862) (31,343) (15,573) (11,930) (2,887) (2,575) 751 392 (48,571) (45,456)
Personnel expenses (22,198) (21,810) (6,742) (6,149) (3,629) (3,478) 0 0 (32,569) (31,437)
Other expenses and income (9,272) (9,476) (4,533) (4,069) (1,315) (1,404) 0 0 (15,120) (14,949)
EBITDA 4,563 3,832 3,792 1,042 925 541 66 0 9,346 5,415
Depreciation and amortisation (2,508) (2,510) (1,132) (960) (590) (578) 0 0 (4,230) (4,048)
Segment result (EBIT) 2,055 1,322 2,660 82 335 (37) 66 0 5,116 1,367
Interest income 54 47 15 53 1 3 0 0 70 103
Interest expense (667) (1,043) (545) (453) (151) (178) 0 0 (1,363) (1,674)
Result from equity investments 0 0 1,251 (1,921) 0 0 0 0 1,251 (1,921)
EBT 1,442 326 3,381 (2,239) 185 (212) 66 0 5,074 (2,125)
Income taxes (713) (246) (1,035) 14 (144) (2) (18) 0 (1,910) (234)
Net income (EAT) 729 80 2,346 (2,225) 41 (214) 48 0 3,164 (2,359)
Profit or loss attributable to minority interest 0 (1) (28) (23) 4 (10) (4) 10 (28) (24)
Profit or loss attributable to shareholders CENTROTEC Sustainable AG 729 81 2,374 (2,202) 37 (204) 52 (10) 3,192 (2,335)
Balance sheet key figures*
TOTALClimate Systems Gas Flue SystemsMedical Technology &
Engineering Plastics Consolidation
Balance sheet key figures*
Assets** 220,969 218,569 98,360 98,937 34,238 33,191 6 (61) 353,573 350,636
Financial investments accounted for using the equity method 0 0 24,950 23,699 0 0 0 0 24,950 23,699
Loans and investmens 703 715 1,029 0 0 0 0 0 1,732 715
Entitlement to income tax rebates*** 4,511 4,596
Liabilities 71,982 69,162 23,883 28,374 5,814 4,860 0 0 101,679 102,396
Financial liabilities 125,309 121,807
Income tax payable*** 22,281 22,769
InvestmentsTotal investments in property, plant, equipment and intangible assetss **** 1,767 1,609 1,196 1,604 662 277 0 0 3,625 3,490
* Previous year is related to December 31, 2009
** Excl. financial investments accounted for using the equity method, loans and investments as well as entitlement to income tax rebates ***
*** Including deferred tax
**** Incl. goodwill and figures out of business combinations
Q01 | C
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Consolidated Segment Reporting | 20
50 - 100 %
Notes to the Consolidated Financial Statements | 21
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Notes to the Consolidated Financial
Statements
Corporate information
The CENTROTEC Group – hereinafter also referred to as CENTROTEC – is an international
group focusing on the development, manufacturing and sale of system solutions that promote
energy efficiency and use renewable energies in buildings. In addition to its existing business
activities, CENTROTEC regards its business purpose as including the establishment and
acquisition of new business areas and companies.
The group parent, CENTROTEC Sustainable AG with registered office in Brilon, is listed in the
Prime Standard in the SDAX index under the stock exchange codes CEV, WKN 540750 and
ISIN DE 0005407506 of the Frankfurt Stock Exchange. It is entered on the Commercial
Register of the Local Court of Arnsberg, Germany, under the number HRB 2161. The
company's head office is located at Am Patbergschen Dorn 9, 59929 Brilon, Germany.
CENTROTEC Sustainable AG is not part of a superordinate group, and is the ultimate parent
company of the group presented in these quarterly financial statements. Further financial and
corporate information on CENTROTEC is available from the above address, or on the
homepage www.centrotec.de.
Accounting standards and policies
These Quarterly Financial Statements at March 31, 2010 have been prepared in accordance
with the International Financial Reporting Standards (IFRS) for interim financial reporting
issued by the International Accounting Standards Board (IASB), as applicable within the
European Union (EU), taking account of Section 315a (1) of German Commercial Code. All
IFRS standards, and in particular IAS 34 (Interim Financial Reporting), that were valid at the
reporting date and the application of which was mandatory at that date, have been applied.
The accounting policies explained in the Consolidated Financial Statements for 2009 have
likewise been applied in this Quarterly Report, except in the case of amendments to standards
to be applied for the first time, and apply correspondingly. The Quarterly Report should
therefore be read in conjunction with the audited Consolidated Financial Statements at
December 31, 2009. These Quarterly Financial Statements and the Quarterly Management
Report have not been audited in accordance with Section 317 of German Commercial Code,
nor have they been subjected to any scrutiny by an independent auditor.
The reporting date for the quarter for all companies included in the quarterly consolidated
financial statements is March 31, 2010. The financial statements have been prepared in euros;
unless otherwise indicated, the amounts quoted refer to thousand euros (EUR thousand). For
mathematical reasons, there may be rounding differences of +/- one unit.
Notes to the Consolidated Financial Statements | 22
Q01 |
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The Management Board points out that the future-related statements made in the quarterly
financial statements are based on current expectations, assumptions and estimates. These
statements are not to be interpreted as guarantees that the forecasts made will prove correct.
Rather, future developments and occurrences are dependent on a wide range of factors that
are subject to risks and uncertainties, the influencing factors of which lie outside the sphere of
influence of CENTROTEC. Actual developments may therefore depart from any implicit or
explicit future-related statements made.
Corporate and investment structure
All direct and indirect subsidiaries of the parent company and group parent are included in the
Consolidated Financial Statements of CENTROTEC. There have been no changes in
consolidation since the annual financial statements at December 31, 2009.
The business activities of CENTROTEC are classified according to the segments Climate
Systems, Gas Flue Systems, and Medical Technology & Engineering Plastics.
Detailed information on the CENTROSOLAR Group, which is accounted for by the equity
method, is contained in its Quarterly Report at December 31, 2010. That report is available at
www.centrosolar.com.
Notes on the Quarterly Financial Statements
- Recognition and measurement aspects
Compared with the position at December 31, 2009, investments and loans originated by the
enterprise include the amount of EUR 1 million for a company that was purchased in the first
quarter. No IFRS 3 accounting takes place because only intangible assets in the form of
patents, and no business operations, were acquired. The company is not operational so for
reasons of economy and in view of its lesser significance for the net worth, financial position
and financial performance of the CENTROTEC Group it is recognised at cost and reported
under investments and loans originated by the enterprise instead of being included in
consolidation.
Detailed notes on the income statement, balance sheet and cash flow statement can be found
in the sections "Development in revenue and earnings" and "Net worth and financial position"
of the Interim Consolidated Financial Statements.
- Related party disclosures
Within CENTROTEC, goods and services are purchased by a large number of business
partners. They are also supplied by or to persons or companies who can be classified as
related parties. Transactions with these persons or companies are conducted at arm's length.
Transactions with related parties were presented comprehensively in the Consolidated
Financial Statements for 2009. All reciprocated services such as the use of infrastructure are
Notes to the Consolidated Financial Statements | 23
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billed on generally accepted market terms (arm's length principle). The same applies to service
relationships between CENTROTEC and companies which are accounted for using the equity
method. The CENTROSOLAR Group procured goods and services to the value of approx.
EUR 2.6 million from CENTROTEC, and CENTROTEC procured goods and services to the
value of around EUR 1.1 million from the CENTROSOLAR Group.
- Reportable security holdings and options
The totals of reportable shares and stock options at March 31, 2010 are shown in the following
table.
Management Board Shares Options*
Dr Gert Jan Huisman 78,704 225,023
Anton Hans 0 53,593
Alfred Gaffal 7,000 117,931
Dr Christoph Traxler 5,140 159,456
Supervisory Board Shares Options*
Guido A Krass 2,400,000 0
Dr Bernhard Heiss 45,550 0
Christian C Pochtler 0 0 CENTROTEC
Shares
Options*
Ordinary shares 16,716,262 0
Treasury stock 12,080 0
* The maximum possible number of options has been indicated. How many options can actually be exercised depends
on the attainment of specified targets.
- Contingent liabilities
There has been no significant change in contingent liabilities since the balance sheet date of
December 31, 2009.
- Dividend payments
No dividend payment is envisaged for the 2009 financial year.
Notes to the Consolidated Financial Statements | 24
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Significant events occurring after the reporting date for the quarter
- Change in the capital stock and the number of shares
28,724 options were exercised in April on the basis of the stock options scheme. As a result,
the capital stock rose by a further EUR 28,724 or 28,724 shares at the start of the second
quarter, to a present EUR 16,744,986, divided into 16,744,986 ordinary shares.
- Other significant events occurring after the reporting date for the quarter
There were no other changes after the reporting date for the quarter.
Management Board and Supervisory Board
- The members of the Management Board at the reporting date were:
Dr Gert-Jan Huisman, Nijkerk, Netherlands, merchant, CEO
Anton Hans, Apeldoorn, Netherlands, merchant, CFO
Alfred Gaffal, Mainburg, Germany, merchant
Dr Christoph Traxler, Fulda, Germany, physicist
- The members of the Supervisory Board at the reporting date were:
Guido A Krass, Zurich, Switzerland, entrepreneur (Chairman)
Dr Bernhard Heiss, Munich, Germany, entrepreneur
Christian C Pochtler, MA, Vienna, Austria, entrepreneur
Other particulars
- Corporate Governance Code
The Management Board and Supervisory Board of CENTROTEC Sustainable AG have,
pursuant to Section 161 of German Stock Corporation Law, declared the extent to which they
have complied with and will comply with the recommendations of the Government Commission
on the German Corporate Governance Code. The regularly submitted declarations and
explanations are permanently available on the website of CENTROTEC Sustainable AG.
Brilon, May 12, 2010
Responsibility Statement by the Management | 25
Q01 |
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the
Man
agem
ent
Responsibility Statement by the Management
In accordance with German Securities Trading Law (WpHG) in conjunction with German
Commercial Code (HGB), the Management Board declares:
To the best of our knowledge, and in accordance with the applicable reporting principles for
interim financial reporting, the interim consolidated financial statements give a true and fair
view of the assets, liabilities, financial position and profit or loss of the group, and the interim
management report of the group includes a fair review of the development and performance of
the business and the position of the group, together with a description of the principal
opportunities and risks associated with the expected development of the group for the
remaining months of the financial year.
The Management Board
Brilon, May 12, 2010
> 30 %
Financial Calendar | 26
Q01 |
CEN
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Fin
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alen
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Financial Calendar 2010
May 12 Publication of 01/2010 Quarterly Report
May 20 Shareholders' Meeting, Brilon, Kolpinghaus
August 12 Publication of 02/2010 Quarterly Report
November 11 Publication of 03/2010 Quarterly Report
November 22 – 24 German Equity Forum, Frankfurt am Main