DGAP-News

Manz AG achieves record revenue in 2014 and utilizes its operational strength to recognize non-scheduled depreciations in the solar segment - Seite 3

Ltd. (GTAT), an Apple supplier and manufacturer of sapphire glass for
smartphones, net receivables in the amount of EUR 2.5 million were written
off. Since so far it has not been possible to come to a final agreement as
to the further utilization of the equipment, a large portion of the net
receivables was written off for reasons of caution. In the Battery segment,
a project could not be terminated due to a fundamental change of strategy
of a German automobile manufacturer resulting in a non-recurring negative
special effect of EUR 4.0 million. For strategic purposes, Manz decided,
rather than entering into a court dispute with the customer, to terminate
the project and to shift the unused capacities to new projects in the
Consumer Electronics segment. This decision resulted directly in new orders
of around EUR 40 million in this segment. And finally, the Managing Board
resolved, in close consultation with the Supervisory Board, to recognize
non-scheduled depreciations on development costs in the solar segment.
These costs relate, for the most part, to the crystalline PV technology as
well as, in some cases, to the CIGS technology and came to a total of EUR
22.5 million. After the Solar segment contributed less than 5% to the
overall revenue in 2014 this decision takes the ongoing investment
restraint into account.

Additional positive effects through reduced scheduled amortization and
depreciation beginning in 2015

For the past fiscal year, the Managing Board of Manz AG, in close
consultation with the Supervisory Board, decided to recognize non-scheduled
amortization on development costs in the solar segment in the amount of EUR
22.5 million. Thus, in the current fiscal year of 2015, the company will be
spared amortization in the amount of EUR 10 million and accordingly the
profitability of Manz AG will be increased significantly. The non-scheduled
depreciation, for the most part, concern development costs for crystalline
PV technology. At the same time, Manz AG is also pursuing strategic goals
with this decision: "These depreciations will make it easier for us to
transfer the existing technology to our Chinese subsidiary and to
concentrate all major activities there in the crystalline technology
segment in future. Thereby we follow the market requirements to deliver
machinery that are produced locally. We are firmly convinced that in the