The key Tosolar power

PV Crystalox solar PlCINTerIM reporT 2013

_0_PVC_int13.indd 18 9/9/2013 5:02:07 PM

pV Crystalox solar is a leading supplier to the world’s major photovoltaic companies, producing multicrystalline silicon wafers for use in solar electricity generation systems.

our customers, the world’s leading solar cell producers, process these wafers into solar modules to harness the clean, silent and renewable power of the sun. we are playing a central role in making solar power cost competitive with conventional hydrocarbon power generation and, as such, continue to seek to drive down the cost of production whilst increasing solar cell efficiency.

Visit us onlinewww.pvcrystalox.com

about pV Crystalox solar plC

IFC about pV Crystalox solar plC

1 highlights

2 Chairman and Chief executive’s joint statement

6 Condensed consolidated statement of comprehensive income

8 Condensed consolidated balance sheet

9 Condensed consolidated statement of changes in equity

10 Condensed consolidated cash flow statement

11 Notes to the condensed consolidated interim financial statements

15 statement of directors’ responsibilities

16 advisors

Contents

_0_PVC_int13.indd 19 9/9/2013 5:02:09 PM

www.pvcrystalox.com PV Crystalox Solar PLC Interim report 2013 1

Wafer shipments

79Mw2012: 61Mw

revenues

€28.6m2012: €32.6m

EBt (loss before taxation)

€(0.9)m2012: €(11.9)m

Net cash

€64.0m2012: €89.4m

highlights

Market overview• Industryoversupplycontinuestomaintainpressure

on pricingacrossthevaluechain

• Spotwaferpricesremainsignificantlybelowindustryproductioncosts

• 2013globalPVmoduleinstallationsexpectedtoincrease21%over2012asmarkettransitionsfromaEuropeandominatedenvironmenttoaglobalmarket

• PreviouslyannouncedEUanti-dumpingdutieson ChinesePVproductsnowreplacedbyminimumimportpriceandannualimportquota

operational activity• Cashconservationstrategycontinues

• Radicalrestructuringcompletedwhileretainingcore productioncapabilities

• DisposalofGroup’spolysiliconproductionfacilityat Bitterfeldtomanagementteam

• Recommendingshareholderapprovalforchangetolistingcategoryandacashreturnof7.25pencepershareduringH22013

overview of results• Wafershipments79MW(H12012:61MW)

• Revenues€28.6million(H12012:€32.6million)

• Lossbeforetaxof€0.9million(H12012:lossof€11.9million)

• Netcashof€64.0millionattheperiodend(end2012:€89.4million)aftercontributionof€12.3milliontothebuyeroftheBitterfeldproductionfacilityandotherrestructuringcosts

_0_PVC_int13.indd 1 9/9/2013 5:02:09 PM

www.pvcrystalox.comPV Crystalox Solar PLC Interim report 20132

Chairman and Chief executive’s joint statement

Overview and strategic updatePVmarketconditionsremainchallengingastheindustryoversupplycontinuestomaintainpressureonpricingacrossthevalue chain.Spotwaferpriceswhich startedtofallinApril2011and continuedtodecreasethroughout2012havenowstabilisedalbeitatalevelwhichis75%belowthatseenin April2011andsignificantlybelowindustryproductioncosts.

Followingastrategicreviewofthebusinessinthelatterpartof2012whichtookaccountoftheadversemarketconditions,theGrouphasnowcompletedaradicalrestructuringwhileretainingitscoreproductioncapabilities.ThisprogrammehasseenproductionoutputreducedattheUKingotandGermanwaferoperations,withacorrespondingreductioninpersonnel,andthedisposaloftheGroup’spolysiliconproductionfacilityinBitterfeld,Germany,toamanagementbuy-inteamtradingunderthenameSiliconProductsResearchEngineeringProductionGmbH.Theteamhastakenoverthefacilityandstafftogetherwithassociatedobligationsandliabilitiesincludingthoserelatingtotherepaymentofgrants,subsidiesandclosurecostsinreturnforacashpaymentof€12.3millionfromtheGroup.Thistransactionwaspreferabletotheshutdownscenario

asitresultedinlowercashoutflowsfortheGroupandalsoenablessome jobstoberetainedunderthe newmanagement.

InviewofthechallengingenvironmenttheGroupcontinuestooperatein cashconservationmodewithafocusoncostcontrolandinventorymanagement,includingtradingofexcesspolysiliconasopportunitiesarise.WafershipmentsexceededproductionoutputinH1andreached79MWwhichwassignificantlyabovethe61MWreportedforthesameperiodlastyear.WehavesuccessfullytradedsurpluspolysiliconduringH12013and,asaresult,inventorylevelsofbothwafersandpolysiliconhavebeenreducedsincetheendof2012.Productioncostshavebeenloweredasaresultofthemorefavourablepricingthathasbeennegotiatedtodatewithourwaferingsubcontractorandpolysiliconsuppliers.

During2007–2008,Groupcompaniesenteredintoanumberoflong-termagreementswithcustomerstosupplywafersatpriceswhichareconsiderablyabovetoday’smarketlevels.Inviewofthemarketconditions,ourstrategyhasalwaysbeentoreachaccommodationwherepossiblewiththeselong-termcontractcustomersandtosecuresaleswithpricesatareasonablepremiumtospotprices.TheGrouphastwosuchactivecontracts,oneofwhichwillexpirethisyear.Shipmentstothese

summary• Following a strategic review

of the business, the Group has now completed a radical restructuring while retaining its core production capabilities.

• In view of the challenging environment the Group continues to operate in cash conservation mode with a focus on cost control and inventory management.

• at the end of June 2013 the Group had a net positive cash balance of €64.0 million.

Dr Iain Dorrity Chief Executive Officer

John Sleeman Chairman

_0_PVC_int13.indd 2 9/9/2013 5:02:13 PM

www.pvcrystalox.com PV Crystalox Solar PLC Interim report 2013 3

two customersaccountedfor60%ofwafervolumesduringH1.Inthecaseoftwoothercontracts,wherecustomershaveenteredinsolvencyandshipmentsstoppedoverayear ago,wehaveregisteredsignificantclaimswiththerespective administrators.

TheGroupalsohaslong-termcontractualcommitmentsforpurchaseofpolysiliconandhasbeensuccessfulduringtheyeartodate,asinpreviousyears,inreachingagreementwithitssupplierstoadjustvolumesandprices.

Operational updateFinancial review and positionTheGrouprecordedalossbeforetax of€0.9million,beingthesumof theprofitbeforetaxonongoingoperationsof€1.5millionandaloss beforetaxondiscontinuedoperationsof€2.4million.TheGroup EBITof€1.5million,whilstan improvementfromthelossof€12.2millioninthesameperiodlast year,wasjustmarginallyabovebreakeven.TheGroupEBITwasmadeupofthenetpositionofaprofitonongoingoperationsof€3.9millionandalossondiscontinuedoperationsof€2.4million.ItshouldbenotedthattheEBITonongoingoperationsof€3.9millionwaslargelymadeupofacurrencygainof€3.8millionwhichwasprincipallyduetothechangeincurrencyconversionratesusedtocalculatetheOnerousContract

Provision(“OCP”)inrespectofraw materialpurchasecontracts.Thisgainoncurrencyconversionwaslargelyoffsetbytheassociatedfinancecostof€2.8millionwhichrelatestothediscountratesusedin calculatingtheOCPbeingupdated.TheOCPwasadequateto covertheeffectsoftradingofmaterialsuppliedunderlong-termcontracts.InadditiontheGroupsoldafreeholdfactorythatwassurplusto requirementsinH12013andthis disposalgeneratedaprofitof €1.1 million.

AttheendofJune2013theGrouphadanetpositivecashbalanceof€64.0millionwhichwaslowerthanthe€89.4millionattheendof2012.ThemajorityofthiscashoutflowrelatedtotherestructuringoftheGroupincludingthecashusedtofacilitatethemanagementbuy-inof theGroup’spolysiliconplantatBitterfeld,thecashcostofoperatingtheplantpriortodisposalandthe cashcostofrestructuringtheGroup’songoingoperations.ThemaincomponentsinthecashflowstatementforH12013are:aninflowinrespectofadjustedcashearningsof€3.7million;acashinflowof€1.3 millionfromthesaleofafreeholdfactorythatwassurplusto requirements;acashrepaymentofincometaxesof€1.2million;andthecashpaidtothemanagementbuy-incompanyof€12.3millionand

cashoutflowsinrespectofworkingcapitalof€18.4millionwhichismadeupofanincreaseindebtorsthat wasalmostexactlyoffsetbyareductionininventoriesandmainlyrelatedtothe movementincreditorsandotherassetsandliabilities.Thefallinthe creditorbalancerelatedto thereductionin2012yearendaccruedcoststhatwereeitherpaidor otherwisesettledinH12013andto paymenttermstokeysuppliershavingbeenshortenedinreturnfor moreattractivepricing.

ThisstrongcashpositionremainsacompetitiveadvantageoftheGroupanddespitetheanticipatedcontinuingdifficulttradingconditionsandcashreturntoshareholderstheGroupexpectstoretainahealthyfinancialpositionthroughtheyearend.

Risk factorsTheprincipalrisksanduncertaintiesaffectingthebusinessactivitiesof theGroupwereidentifiedundertheheading“Principalrisksanduncertainties”intheBusinessReview onpages14to15ofthe2012AnnualReport,acopyofwhichisavailableontheGroup’swebsitewww.pvcrystalox.com.Intheviewof theBoardthekey risksanduncertaintiesfortheremainingsix monthsofthefinancialyearcontinuetobethosesetoutinthe 2012AnnualReport.

_0_PVC_int13.indd 3 9/9/2013 5:02:13 PM

www.pvcrystalox.comPV Crystalox Solar PLC Interim report 20134

Chairman and Chief executive’s joint statement continued

Operational update continuedCash return/standard listingTheBoardintendstoseekauthority to transfertheCompany’slistingcategoryontheOfficialListduringH2 2013.Shareholderswillbe askedtovoteontheproposedtransferofthe ordinarysharesoutof thecategoryofa‘‘premiumlisting(commercialcompany)’’ontheOfficialListandintothecategoryofa‘‘standardlisting’’ontheOfficialList.Attheendoflastyear,thedirectorsannouncedthattheGroupexpectsto returncashtoshareholders(the“ReturnofCash”).On17May2013,theCompanyannouncedthattheBoardhadreachedadecisiontoreturn7.25pencepersharetoshareholders,subjecttofinalisationoftheprocessoftheReturnofCash.

TheBoardbelievesthistransferwillfacilitatetheReturnofCashbeingundertakeninamoretaxefficientmannerforshareholdersandreduceadministrativecostsgenerally.Furthermore,theBoardwishestoalignitsregulatoryresponsibilitiesandtheassociatedcoststhereofwith theCompany’ssize.

TheBoardexpectstobeabletosendacirculartoshareholdersbeforetheendofQ32013andcompleteboththetransferoflistingandtheReturnofCashbeforetheyearendsubjecttoshareholderandUKListingAuthorityapprovals.

Market driversAccordingtoNPDSolarbuzz,globalPVdemandduringthefirsthalfof2013reached15GW,a9%increaseoverthesameperiodayearago,and isexpectedtoreacharecordhighof35.1GWin2013.ChinaandJapanareforecasttoaccountfor45%ofinstallationsasthemarketcontinuesitstransitionfromaEuropean-dominatedenvironmentto aglobalmarket.NewEuropeaninstallationsareexpectedtobe11.2GW,down33%on2012.

However,NPDSolarbuzzwarnedthatthescaleofPVprojectpipelinescitedforbothChinaandJapandominategrowthexpectationsinthe secondhalfoftheyeartosucha degreethatthereisahighriskthatneithercountrywillmeetindustryexpectationsastheystruggletoabsorbnewcapacity.

TheJapanPhotovoltaicEnergyAssociationannouncedthatJapan’s domesticshipmentsofsolarmodulesrose73%inthefirstthreemonthsoftheyearcomparedtothe previousquarter.Theriseinshipmentsisduetothegenerousincentiveprogrammethatstartedin July2012wherebyJapan’sfeedin tariffis¥37.8(US$0.38)/kWhrfor20years,whichismorethantwicethetariffsonofferinChinaandGermany.AsaresultBloombergNewEnergyFinanceexpectsJapantobecomethelargestmarketin2013 andinstallaround9GW.

Chinahassetatargetof35GWof installedcapacityby2015.TheChineseStateCouncilbackeduptargetsrecentlyannouncedbytheStateGridandsaidthat10GWwouldbeaddedeachyearuntil2015.Thisrepresentsa14GWincreaseonthepreviouslystated2015targetof21GWandprovidesfurthersupportforitssubstantialdomesticmanufacturingindustry.

ThedramaticdeclineinPVindustrypricingduringthelasttwoyearshas ledtoclaimsofunfairtradepracticesandtoanti-dumpinginvestigationsinUSA,ChinaandEurope.InNovember2012theUS InternationalTradeCommission(“USITC”)judgedthatChineseproducers/exportershadsoldsolarcellsatbelowfairmarketvalueandhadmateriallydamagedtheUSPVindustry.Dutiesrangingfrom24%to 254%wereimposed.Theenquiriesin ChinaandEuropehaverecentlybeenconcludedalthoughwithvaryingoutcomes.

InJuly2013China’sMinistryofCommerce(“MOFCOM”)announcedthataprobelaunchedlastyearhadfoundthatpolysiliconimportsintoChinaweredamagingdomesticmanufacturers.Provisionalanti-dumpingdutiesrangingfrom2.4%to57%wereimposedagainstsolar-gradepolysiliconimportsfromSouthKoreaandtheUnitedStates.

“ while the Group continues to believe in the positive long-term outlook for pV, it is mindful that the current market pricing is incompatible with a sustainable business. The Group has a healthy net cash balance and maintains significant manufacturing operating capacity. The Board will continue to monitor closely market trends and developments and to position the Group for the eventual return of a more rational business environment.”

_0_PVC_int13.indd 4 9/9/2013 5:02:13 PM

www.pvcrystalox.com PV Crystalox Solar PLC Interim report 2013 5

Followinginvestigationslaunchedin September2012,theEuropeanCommissionconcludedthatChineseproducersweredumpingwafers,cellsandmodulesintotheEUmarketandthatthefairmarketvaluewas88%higherthancurrentprices.ExportsofPVproductsfromChinatotheEUtotalled€21billionin2011,makingthecasethelargestunfair-tradeprobeeverstartedbytheEU.Whileprovisionalanti-dumpingdutiesof11.8%wereimposedinJune2013withafurtherincreaseto anaverage47%threatenedinAugust,theEUhasabruptlychangeditsstanceandacceptedanundertakingbyChinesePVcompaniestosetaminimumimportprice.Whiledetailsremainunclearthispriceisapparentlyalmosthalftheleveloriginallydeemednecessarytoremedytheinjuryfromdumping.Animportquotaof7GWwillalsoapply,abovewhichdutieswillbeimposed.

OutlookTheBoardexpectsthattheintenselycompetitivemarketanddifficulttradingconditionswillpersistintheshortto mediumterm.Therestructuringcarriedoutduringthefirsthalfoftheyearhasalignedoperationswiththeplannedlowerproductionvolumes.Cashconservationmeasureswillcontinueandfullyearshipmentvolumesareexpectedtobeintherangeof160–180MWasinventorylevelsarefurtherreduced.

NeverthelesstheGroupexpectsto incurasmalloperatinglossinthe secondhalf.

WhiletheGroupcontinuestobelievein thepositivelong-termoutlookfor PV,itismindfulthatthecurrentmarketpricingisincompatiblewitha sustainablebusiness.AccordinglythefailureoftheEUtoimposeanti-dumpingdutiesonChineseimportswasprofoundlydisappointingtoEuropeanwafer,cellandmodulemanufacturersasitrepresentsalostopportunitytoassistthePVindustrytoalignpricingwithproductioncosts.

TheGrouphasahealthynetcashbalanceandmaintainssignificantmanufacturingoperatingcapacity.The BoardwillcontinuetomonitorcloselymarkettrendsanddevelopmentsandtopositiontheGroupfortheeventualreturnofamorerationalbusinessenvironment.

John SleemanChairman

Dr Iain DorrityChief Executive Officer14 August 2013

_0_PVC_int13.indd 5 9/9/2013 5:02:14 PM

www.pvcrystalox.comPV Crystalox Solar PLC Interim report 20136

Condensed consolidated statement of comprehensive incomefor the six months ended 30 June 2013

Six months ended 30 June 2013

Sixmonthsended 30June2012

Yearended 31December2012

Notes

Continuing operations

€’000

Discontinuedoperations

€’000Total

€’000Total€’000

Total€’000

Revenues 4 28,305 316 28,621 32,632 46,324Otherincome 2,443 214 2,657 100,774 109,479

Cost of material 5,10 (24,047) (429) (24,476) (78,733) (126,199)Cost of services (648) (169) (817) (3,159) (4,518)

Personnel expensesWagesandsalaries (2,506) (837) (3,343) (6,155) (16,743)Socialsecuritycosts (481) (229) (710) (1,007) (2,506)Pensioncosts (137) (2) (139) (188) (597)Employeeshareschemes 6 (186) — (186) (198) (319)

Depreciationandimpairmentofproperty,plantandequipmentandamortisationofintangibleassets 9 (252) (44) (296) (51,804) (99,438)Otherexpenses (2,318) (1,238) (3,556) (5,180) (18,017)

Currencygainsandlosses 3,778 (2) 3,776 850 2,435

Earnings/(loss) before interest and taxes (“EBIT”) 3,951 (2,420) 1,531 (12,168) (110,099)Financeincome 363 — 363 348 820Financecost (2,773) — (2,773) (93) (1,515)

Earnings/(loss) before taxes (“EBT”) 1,541 (2,420) (879) (11,913) (110,794)Incometaxes 7 (200) (2) (202) (16,031) (10,607)

Profit/(loss) attributable to equity owners of the parent before disposal of assets 1,341 (2,422) (1,081) (27,944) (121,401)

Lossrecognisedonassetsdisposed 11 — (938) (938) — —

Profit/(loss) attributable to equity owners of the parent 1,341 (3,360) (2,019) (27,944) (121,401)

Other comprehensive incomeExchangedifferencesontranslatingforeignoperations (4,389) — (4,389) 2,578 (1,258)

Total comprehensive incomeAttributabletoequityownersoftheparent (3,048) (3,360) (6,480) (25,366) (122,659)

Earnings per share on continuing activities BasicanddilutedinEurocents 8 0.3 (6.9) (29.9)

CostsoftheGroup’spolysiliconoperationsinBitterfeldhavebeenincludedinthecolumnheaded“Discontinued operations”followingthedisposalon28June2013.

AllotheractivitiesoftheGroupareclassedascontinuing.

Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

_0_PVC_int13.indd 6 9/9/2013 5:02:14 PM

www.pvcrystalox.com PV Crystalox Solar PLC Interim report 2013 7

Six months ended 30 June 2013

Sixmonthsended 30June2012

Yearended 31December2012

Notes

Continuing operations

€’000

Discontinuedoperations

€’000Total

€’000Total€’000

Total€’000

Revenues 4 28,305 316 28,621 32,632 46,324Otherincome 2,443 214 2,657 100,774 109,479

Cost of material 5,10 (24,047) (429) (24,476) (78,733) (126,199)Cost of services (648) (169) (817) (3,159) (4,518)

Personnel expensesWagesandsalaries (2,506) (837) (3,343) (6,155) (16,743)Socialsecuritycosts (481) (229) (710) (1,007) (2,506)Pensioncosts (137) (2) (139) (188) (597)Employeeshareschemes 6 (186) — (186) (198) (319)

Depreciationandimpairmentofproperty,plantandequipmentandamortisationofintangibleassets 9 (252) (44) (296) (51,804) (99,438)Otherexpenses (2,318) (1,238) (3,556) (5,180) (18,017)

Currencygainsandlosses 3,778 (2) 3,776 850 2,435

Earnings/(loss) before interest and taxes (“EBIT”) 3,951 (2,420) 1,531 (12,168) (110,099)Financeincome 363 — 363 348 820Financecost (2,773) — (2,773) (93) (1,515)

Earnings/(loss) before taxes (“EBT”) 1,541 (2,420) (879) (11,913) (110,794)Incometaxes 7 (200) (2) (202) (16,031) (10,607)

Profit/(loss) attributable to equity owners of the parent before disposal of assets 1,341 (2,422) (1,081) (27,944) (121,401)

Lossrecognisedonassetsdisposed 11 — (938) (938) — —

Profit/(loss) attributable to equity owners of the parent 1,341 (3,360) (2,019) (27,944) (121,401)

Other comprehensive incomeExchangedifferencesontranslatingforeignoperations (4,389) — (4,389) 2,578 (1,258)

Total comprehensive incomeAttributabletoequityownersoftheparent (3,048) (3,360) (6,480) (25,366) (122,659)

Earnings per share on continuing activities BasicanddilutedinEurocents 8 0.3 (6.9) (29.9)

CostsoftheGroup’spolysiliconoperationsinBitterfeldhavebeenincludedinthecolumnheaded“Discontinued operations”followingthedisposalon28June2013.

AllotheractivitiesoftheGroupareclassedascontinuing.

Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

_0_PVC_int13.indd 7 9/9/2013 5:02:14 PM

www.pvcrystalox.comPV Crystalox Solar PLC Interim report 20138

Condensed consolidated balance sheetas at 30 June 2013

Notes

As at30 June 2013

€’000

Asat30June2012

€’000

Asat31December2012

€’000

Intangibleassets 76 420 116Property,plantandequipment 9 2,444 58,238 10,806Pensionsurplus — 216 41Otherlong-termassets 20,315 31,121 23,432Deferredtaxasset 7 — 580 190

Total non-current assets 22,835 90,575 34,585

Cashandcashequivalents 69,411 126,924 94,680Accountsreceivable 13,664 8,149 10,333Inventories 5 30,803 46,563 38,426Prepaidexpensesandotherassets 9,806 13,947 14,060Currenttaxassets 58 10,210 1,365

Total current assets 123,742 205,793 158,864

Total assets 146,577 296,368 193,449

Loanspayableshort-term 5,425 4,498 5,284Accountspayable 2,832 7,644 6,701Deferredrevenue 3,249 3,369 3,348Accruedexpenses 3,482 7,224 25,006Provisions 10 10,741 12,681 23,559Deferredgrantsandsubsidies 161 2,839 210Currenttaxliabilities — 5,398 13Othercurrentliabilities 190 182 529

Total current liabilities 26,080 43,835 64,650

Accruedexpenses 167 149 142Pensionobligation 94 — —Deferredgrantsandsubsidies — 21,007 —Deferredtaxliability — 10 —Provisions 10 31,616 39,267 33,763Otherlong-termliabilities 43 43 43

Total non-current liabilities 31,920 60,476 33,948

Sharecapital 12,332 12,332 12,332Sharepremium 75,607 75,607 75,607SharesheldbytheEBT (8,640) (8,640) (8,640)Share-basedpaymentreserve 953 732 819Reverseacquisitionreserve (3,601) (3,601) (3,601)Retainedearnings 34,674 130,150 36,693Currencytranslationadjustment (22,748) (14,523) (18,359)

Total equity 88,577 192,057 94,851

Total liabilities and equity 146,577 296,368 193,449

_0_PVC_int13.indd 8 9/9/2013 5:02:15 PM

www.pvcrystalox.com PV Crystalox Solar PLC Interim report 2013 9

Condensed consolidated statement of changes in equityfor the six months ended 30 June 2013

Sharecapital€’000

Sharepremium

€’000

SharesheldbytheEBT€’000

Share-based

paymentreserve€’000

Reverseacquisition

reserve€’000

Retainedearnings

€’000

Currencytranslationadjustment

€’000

Totalequity€’000

As at 1 January 2013 12,332 75,607 (8,640) 819 (3,601) 36,693 (18,359) 94,851Dividendspaid — — — — — — — —Share-basedpaymentcharge — — — 134 — — — 134

Transactions with owners — — — 134 — — — 134

Loss for the period — — — — — (2,019) — (2,019)Currencytranslationadjustment — — — — — — (4,389) (4,389)

Total comprehensive income — — — — — (2,019) (4,389) (6,408)

As at 30 June 2013 12,332 75,607 (8,640) 953 (3,601) 34,674 (22,748) 88,577

As at 1 January 2012 12,332 75,607 (8,640) 500 (3,601) 158,094 (17,101) 217,191Dividendspaid — — — — — — — —Share-basedpaymentcharge — — — 232 — — — 232

Transactions with owners — — — 232 — — — 232

Loss for the period — — — — — (27,944) — (27,944)Currencytranslationadjustment — — — — — — 2,578 2,578

Total comprehensive income — — — — — (27,944) 2,578 (25,366)

As at 30 June 2012 12,332 75,607 (8,640) 732 (3,601) 130,150 (14,523) 192,057

_0_PVC_int13.indd 9 9/9/2013 5:02:15 PM

www.pvcrystalox.comPV Crystalox Solar PLC Interim report 201310

Condensed consolidated cash flow statementfor the six months ended 30 June 2013

Notes

Six months ended30 June 2013

€’000

Sixmonthsended30June2012

€’000

Yearended31December2012

€’000

Earnings before taxes (1,817) (11,913) (110,794)Adjustments for:Netinterest(income)/expense (336) (255) 695Depreciationandamortisation 260 7,104 16,834Impairmentcharge(includinguponsaleof discontinued operations) 20,688 44,700 82,604Inventorywritedown 934 17,777 41,507Changeinpensionaccruals 134 173 435(Decrease)/increaseinprovisions (14,964) 30,883 35,581Derecognitionofgrantsandsubsidies — — 5,812(Profit)/lossfromthedisposalofproperty,plant and equipment (1,142) 2 114Lossesinforeigncurrencyexchange — 293 500Changeindeferredgrantsandsubsidies (31) (1,428) (9,026)

3,726 87,336 64,262

Changes in working capitalDecrease/(increase)ininventories 4,677 (15,039) (33,176)(Increase)/decreaseinaccountsreceivables (4,793) 25,963 21,946Decreaseinaccountspayablesandadvancepayments (25,192) (17,362) (21,087)Decreaseinotherassets 7,239 18,758 25,278Decreaseinotherliabilities (329) (1,165) (222)

(14,671) 98,491 57,001

Incometaxesreceived/(paid) 1,159 (65) 9,248Interestreceived 363 348 820

Net cash flows (used in)/from operating activities (13,149) 98,774 67,069

Cash flow from investing activitiesProceedsfromsaleofproperty,plantandequipment 1,282 — 25Cashdisposedofaspartofsaleofdiscontinuedoperations 11 (12,261) — —(Repaymentsfor)/proceedsfrominvestmentgrantsandsubsidies (19) 17 4Paymentstoacquireproperty,plantandequipment andintangibles (51) (964) (1,286)

Net cash flows used in investing activities (11,049) (947) (1,257)

Cash flow from financing activitiesRepaymentofbankandotherborrowings 797 (44,707) (43,350)Dividendspaid — — —Interestpaid (27) (93) (190)Lossesinforeigncurrencyexchange — (291) —

Net cash flows from/(used in) financing activities 770 (45,091) (43,540)

Netchangeincashandcashequivalentsavailable (23,428) 52,736 22,272Effectsofforeignexchangeratechangesoncashand cashequivalents (1,841) 2,524 744

Cash and equivalents at beginning of period 94,680 71,664 71,664

Cash and equivalents at end of period 69,411 126,924 94,680

Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

_0_PVC_int13.indd 10 9/9/2013 5:02:15 PM

www.pvcrystalox.com PV Crystalox Solar PLC Interim report 2013 11

Notes to the condensed consolidated interim financial statementsfor the six months ended 30 June 2013

1. Basis of preparationThesecondensedconsolidatedinterimfinancialstatementsareforthesixmonthsended30June2013.They have beenpreparedinaccordancewithInternationalAccountingStandard(“IAS”)34,‘InterimFinancialReporting’.They do notincludealltheinformationrequiredforfullannualfinancialstatementsandshouldberead in conjunction withtheconsolidatedfinancialstatementsoftheGroupfortheyearended31December2012.

Thestatementshavebeenpreparedapplyingtheaccountingpoliciesandpresentationthatwereappliedinthepreparationofthe2012financialstatements.

ThenatureoftheGroup’soperationmeansthatitcanvaryproductionlevelstomatchmarketrequirements.As part ofthecashconservationmeasuresandtheassociatedplanningassumptions,productionoutputhasbeen reducedtomatchexpecteddemand.

On30June2013therewasanetcashbalanceof€64.0million,comprisingcashorcashequivalentsof€69.4 million andshorttermloansof€5.4million.TheGroup’splansarebaseduponremainingwithinits net cash balanceandarenotdependentupontheseshort-termborrowings.

TheGroupwillbeabletooperatewithinitsnetcashreservesfortheforeseeablefuture.

Therefore,whilstanyconsiderationoffuturemattersinvolvesmakingajudgementataparticularpointintimeabout futureeventsthatareinherentlyuncertain,thedirectors,aftercarefulconsiderationandaftermakingappropriateenquiries,areoftheopinionthattheGrouphasadequateresourcestocontinueinoperationalexistence foratleasttwelvemonthsfromthedateofapprovalofthefinancialstatements.ThustheGroupcontinues toadoptthegoingconcernbasisofaccountinginpreparingthefinancialstatements.

WeretheGroupnottoadoptthegoingconcernbasisatanypoint,allassetsandliabilitieswouldbereclassifiedas shorttermandvaluedonabreakupbasis.

2. Basis of consolidationTheGroupfinancialstatementsconsolidatethoseoftheGroupanditssubsidiaryundertakingsdrawnupto30 June 2013.SubsidiariesareentitiesoverwhichtheGrouphasthepowertocontrolthefinancialandoperatingpoliciessoasto obtainbenefitsfromitsactivities.TheGroupobtainsandexercisescontrolthroughvotingrights.Consolidationis conductedbyeliminatingtheinvestmentinthesubsidiarywiththeparent’sshareofthenetequityof thesubsidiary.

TheresultsofanysubsidiarysoldoracquiredareincludedintheConsolidatedStatementofComprehensiveIncome upto,orfrom,thedatecontrolpasses.

3. Functional and presentational currencyThefinancialinformationhasbeenpresentedinEuros,whichistheGroup’spresentationalcurrency.

_0_PVC_int13.indd 11 9/9/2013 5:02:15 PM

www.pvcrystalox.comPV Crystalox Solar PLC Interim report 201312

Notes to the condensed consolidated interim financial statements continuedfor the six months ended 30 June 2013

4. Segment reportingThesegmentsaredefinedonthebasisoftheinternalorganisationalandmanagementstructureandontheinternalreportingtotheBoard.IFRS8requiresentity-widedisclosurestobemadeaboutthecountriesinwhichtheGroupearnsitsrevenuesandholdsitsassets,whichareshownbelow:

Segment information for the six months ended 30 June 2013

Japan€’000

China€’000

Rest ofAsia

€’000Germany

€’000

UnitedKingdom

€’000

Rest ofEurope

€’000

Rest ofWorld€’000

Group€’000

Revenues–byentity’scountryofdomicile 11,464 — — 3,980 13,177 — — 28,621–bycountryfromwhichderived 11,354 145 4,973 2,315 261 1,097 8,476 28,621

Non-current assets*–byentity’scountryofdomicile 360 — — 1,242 21,233 — — 22,835

*Excludesfinancialinstruments,deferredtaxassets,post-employmentbenefitassetsandrightsarisingunderinsurancecontracts.

Twocustomersaccountedformorethan10%ofGrouprevenueeachandsalestothesecustomersareasfollows(figuresin€’000):

• 11,105(Japan);and

• 8,476(RestofWorld).

Segment information for the six months ended 30 June 2012

Japan€’000

China€’000

RestofAsia

€’000Germany

€’000

UnitedKingdom

€’000

RestofEurope€’000

RestofWorld€’000

Group€’000

Revenues–byentity’scountryofdomicile 7,027 — — 4,860 20,745 — — 32,632–bycountryfromwhichderived 7,027 13,080 7,263 725 8 4,529 — 32,632

Non-current assets*–byentity’scountryofdomicile 600 — — 37,285 51,894 — — 89,779

*Excludesfinancialinstruments,deferredtaxassets,post-employmentbenefitassetsandrightsarisingunderinsurancecontracts.

Threecustomersaccountedformorethan10%ofGrouprevenueeachandsalestothesecustomersareasfollows(figuresin€’000):

• 12,990(China);

• 6,984(Japan);and

• 3,976(RestofAsia).

5. Cost of materialCostofmaterialincludes€0.9millioninventorywritedowns(H12012:€14.2million).

ThewritedownrepresentsareductioninvalueofinventoriestotheanticipatedsalespriceinH22013(lessfutureprocessingcostswhereapplicable)offinishedgoods,workinprogressandtradedrawmaterials.

_0_PVC_int13.indd 12 9/9/2013 5:02:15 PM

www.pvcrystalox.com PV Crystalox Solar PLC Interim report 2013 13

6. Employee Benefit TrustTheEmployeeBenefitTrust(“EBT”)currentlyholds10,660,848shares(2.6%)oftheissuedsharecapitalintheCompany.Itholdsthesesharesintrustforthebenefitofemployees.

7. Income taxTheaveragetaxationrateshownintheConsolidatedStatementofComprehensiveIncomeis-11%(H12012:-135%).

Thetaxationrateinthecurrentperiodisdistortedduetothepreviouswriting-offandnon-recognitionofcertaindeferredtaxassets.

Theanticipatedlong-termaveragetaxratefortheGroup,normalisedonthebasisthattheGroupreturnstoprofitability,isapproximately22%.

8. Earnings per shareThecalculationofearningspershareisbasedonaprofitbeforetaxoncontinuingoperationsfortheperiodof €1.3 million(H12012:lossof€27.9million)andthenumberofsharesassetoutbelow:

Six months ended30 June 2013

Sixmonthsended30June2012

Numberofshares 416,725,335 416,725,335AveragenumberofsharesheldbytheEBTintheperiod (10,809,848) (10,834,000)

Weightedaveragenumberofsharesforbasicearningspersharecalculation 405,915,487 405,891,335Sharesgrantedbutnotvested — —

Weightedaveragenumberofsharesforfullydilutedearningspersharecalculation 405,915,487 405,891,335

9. Property, plant and equipmentAdditionstoproperty,plantandequipmentinthesixmonthsended30June2013werelessthan€0.1million(H1 2012:€1.0million).

10. Onerous contract provisionIncludedinprovisionsisanonerouscontractprovisionof€42.3million.Followingareviewofallthelatestmarketinformationandareviewoftheinputstotheonerouscontractprovision,thefollowingmovementsarereflectedin the financialstatements.

As at30 June 2013

€’000

Asat31December2012

€’000

Onerouscontractprovisionbroughtforward 52,047 17,859FXmovement (5,919) (2,088)Discountingfactoradjustment 2,730 1,325Utilised (3,312) (7,012)(Credited)/chargedtotheincomestatement (3,224) 41,963

Onerouscontractprovisioncarriedforward 42,322 52,047

_0_PVC_int13.indd 13 9/9/2013 5:02:15 PM

www.pvcrystalox.comPV Crystalox Solar PLC Interim report 201314

Notes to the condensed consolidated interim financial statements continuedfor the six months ended 30 June 2013

11. Loss from discontinued operations/recognised on assets disposedSix months ended

30 June 2013 €’000

Sixmonthsended30June2012

€’000

Reversalofaccruedcosts 19,714 —Cashcontributiontonewcompany (12,261) —Property,plantandequipmenttransferredtonewcompany (8,391) —

Lossrecognisedonassetsdisposed (938) —

12. Changes in contingent assets and liabilitiesTherewerenochangesincontingentassetsandliabilities.

13. Related party disclosuresTheGroupdefinesrelatedpartiesastheseniorexecutivesoftheGroupandalsocompaniesthatthesepersonscouldhaveamaterialinfluenceonasrelatedparties.Duringthereportingperiod,noneoftheshareholdershadcontroloveroramaterialinfluenceintheparentgroup.Allfuturetransactionswithsuchrelatedpartieswillbeconductedundernormalmarketconditions.

14. Material post balance sheet eventsTherewerenomaterialpostbalancesheetevents.

15. Approval of interim financial statementsTheunauditedinterimfinancialstatementswereapprovedbytheBoardofDirectorson14August2013.

Thefinancialinformationfortheyearended31December2012setoutinthisInterimReportdoesnotconstitutestatutoryaccountsasdefinedinSection434oftheCompaniesAct2006.TheGroup’sstatutoryfinancialstatementsfortheyearended31December2012havebeenfiledwiththeRegistrarofCompanies.TheAuditors’ReportonthosefinancialstatementswasunqualifiedanddidnotcontainstatementsunderSection498(2)orSection498(3)oftheCompaniesAct2006.

_0_PVC_int13.indd 14 9/9/2013 5:02:15 PM

www.pvcrystalox.com PV Crystalox Solar PLC Interim report 2013 15

statement of directors’ responsibilitiesto the members of PV Cystalox Solar PLC

ThedirectorsconfirmthatthiscondensedsetoffinancialstatementshasbeenpreparedinaccordancewithIAS34,‘InterimFinancialReporting’asadoptedbytheEuropeanUnionandthatthisInterimReportincludesafairreviewof theinformationrequiredbytheDisclosureandTransparencyRulesoftheFinancialServicesAuthority,paragraphsDTR4.2.7andDTR4.2.8.

ThedirectorsofPVCrystaloxSolarPLCarelistedattheendofthisInterimReportandtheirbiographiesareincludedinthePVCrystaloxSolarAnnualReportfortheyearended31December2012.

ByorderoftheBoard

Dr Peter FinneganChief Financial Officer14 August 2013

_0_PVC_int13.indd 15 9/9/2013 5:02:15 PM

www.pvcrystalox.comPV Crystalox Solar PLC Interim report 201316

advisors

Company number06019466

Registered officeBrookHouse174MiltonParkAbingdonOxfordshireOX144SE

DirectorsJohnSleeman(Chairman)DrIainDorrityDrPeterFinneganMichaelParker

Company SecretaryMatthewWethey

Independent auditorsPricewaterhouseCoopers LLPCharteredAccountantsandStatutoryAuditors9GreyfriarsRoadReadingBerkshireRG11JG

BankersNational Westminster Bank PLCThamesValleyCorporateOfficeAbbeyGardens4AbbeyStreetReadingRG13BA

Corporate advisorsWesthouse Securities LimitedHeronTower110BishopsgateLondonEC2N4AY

LawyersNorton Rose LLP3MoreLondonRiversideLondonSE12AQ

RegistrarsEquiniti RegistrarsAspectHouseSpencerRoadLancingWestSussexBN996DA

Tel:08713842030*Tel:+44(0)1214157047(outside

the UK)

*Callsarechargedat8penceperminuteplus networkextras.Linesareopen8.30am to5.30pmMondaytoFridayexcluding UKBankHolidays.

_0_PVC_int13.indd 16 9/9/2013 5:02:15 PM

PV Crystalox solar PlCBrook House 174 Milton Park Abingdon Oxfordshire OX14 4SE

Tel: +44(0) 1235 437 160 Fax: +44(0) 1235 437 199

www.pvcrystalox.com

_0_PVC_int13.indd 17 9/9/2013 5:02:16 PM

_0_PVC_int13.indd 20 9/9/2013 5:02:16 PM