The Supervisory Board of Conergy AG has reached an agreement with Board Member Pepyn R. Dinandt with regard to the termination of his contract as of 30th April 2008. His Board mandate ends at his own request; Pepyn Dinandt is released from his duties with immediate effect. Dinandt assumed the role of Chief Operating Officer in mid-November 2007 and, together with CEO Dieter Ammer and also CFO Dr. Jörg Spiekerkötter, who also joined in November, launched the reorganisation of the company. His responsibilities will be taken over in the future by Dieter Ammer, formerly Chairman of the Supervisory Board, whose secondment as CEO was extended by the Supervisory Board for another period of up to six months the day before yesterday. The Management Board continues to comprise Dieter Ammer (CEO), Dr. Jörg Spiekerkötter (CFO), Nikolaus Krane (Projects) and Philip von Schmeling (Sales & Systems).
Initial success from restructuring
In early November 2007 Conergy presented a package of measures to improve profitability. After the first four months of implementing these successes have been achieved:
Measure Control Office (MCO) secures restructuring
At the beginning of 2008 the Measure Control Office, set up by two well-known consultancy firms, defined around 200 measures with an earnings impact of around EUR 170 million and is monitoring and supervising their implementation in detail.
Focus on the profitable core business
Divesting peripheral activities: Conergy has sold its thermal activities in Belgium, the Netherlands and Austria. Other sales have been initiated. Many potential buyers have shown interest in these businesses.
Divisional Management complete
The strengthening of management positions in the autonomous divisions has been completed; all important positions have been filled with experienced and mainly new managers.
Increase in profitability in core business
Conergy has also taken measures within the solar energy core business in order to raise profitability. Thus, for instance, the solar group has standardized and optimised payment targets for suppliers, consolidated subsidiaries in the core countries and streamlined its product portfolio. In addition, the company intends to withdraw from a number of countries that are unprofitable. This has already happened in the Netherlands and in South Africa.
Cost Savings
Conergy has cut the number of its full-time employed staff worldwide by more than 550 up to now.
Working Capital
Working Capital – adjusted for non-cash-effective valuation adjustments of inventories and accounts receivable - has been reduced by more than EUR 100 million in the fourth quarter. Between December 2007 and February 2008 Conergy was also able to significantly reduce inventories and the amount of time inventory is held.
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