the key to
solar power
pv crystalox solar plc
annual report and accounts 2013
pv crystalox solar plc annual report and accounts 2013 pv crystalox solar is a long 
established supplier to the global 
photovoltaic industry producing 
multicrystalline silicon wafers 
for use in solar electricity 
generation systems
chairman’s statement operational review our business
visit us online 
wwwpvcrystaloxcom
our strategy
the chairman john sleeman 
gives his overview of 2013
an overview of our business 
provides information about 
who we are and what we do
our strategy looks at our 
long‑term strategy our focus 
in 2014 and what our priorities 
were in 2013
in the operational review the 
chief executive iain dorrity 
discusses the market drivers 
our performance and 
the outlook
read the chairman’s statement
turn to page 2
read about our business
turn to page 4
read about our strategy
turn to page 8
read the operational review
turn to page 12
cash conservation
continued focus on operating 
cost reductions
retaining flexibility
of production
operational priorities overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 1
chief executive’s statement 3
our business 4
the current market 6
our strategy and kpis 8
risk management and principal risks 10
operational review 12
financial review 14
corporate responsibility 17
strategic report
overview
about us ifc
highlights 1
chairman’s statement 2
governance
corporate governance statement 22
directors 26
report of the nomination committee 28
directors’ remuneration report 29
report of the audit committee 42
directors’ report 44
statement of directors’ responsibilities 46
financial statements
consolidated financial statements
independent auditors’ report 48
consolidated statement of comprehensive income 51
consolidated balance sheet 52
consolidated statement of changes in equity 53
consolidated cash flow statement 54
notes to the consolidated financial statements 56
company financial statements
independent auditors’ report 80
accounting policies 82
company balance sheet 83
notes to the company financial statements 84
shareholder information
advisers 88
highlights
highlights contents
  cash conservation strategy continued 
throughout 2013 
  restructuring completed whilst retaining 
core ingot and wafering production capabilities
  disposal of group’s polysilicon 
production facility at bitterfeld 
to management buy‑in team
  €363 million of cash returned to 
shareholders in december 2013 
  wafer shipments 211mw 2012 115mw
revenues €m
€714m
2012 €463m
net cash from operating activities –  
continuing operations €m
€44m
2012 restated €773m
ebt earnings before taxation –  
continuing operations €m
€66m
2012 restated loss €307m
net cash cash less external loans €m
€392m
2012 €894m 2 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
“ the board believes cash conservation is the necessary 
response to current market conditions enabling us 
to protect shareholder value whilst preserving the 
group’ s core production capabilities”
chairman’ s statement
despite 2013 being another record year for 
global photovoltaic installations pv market 
conditions continue to be challenging 
with pressure on pricing persisting 
as a consequence pv crystalox solar has 
continued to protect shareholder value 
by operating in cash conservation mode 
with a strong focus on cost control and 
inventory management
revenues of €714 million which included 
wafer shipments and the trading of surplus 
polysilicon were 54 higher than 2012 
looking at continuing operations earnings 
before tax of €66 million improved from 
the €307 million loss in 2012 this increase 
in profitability was driven primarily by the 
impact of revised assumptions in respect 
of the onerous contract provision including 
that market conditions at the end of 2013 
were somewhat better than anticipated 
last year which resulted in non‑cash 
income of €117 million in the statement 
of comprehensive income net cash at 
the year end was €392 million which was 
€502 million lower than the €894 million 
held at the end of 2012 reflecting the return 
to shareholders of €363 million and the 
payment made to the management buy‑in 
team at bitterfeld of €123 million operating 
cash in flow on continuing operations was 
€44 million 
at the general meeting in september 2013 
shareholders approved the move of the 
company’s listing from premium to standard 
on the official list and this change took 
place on 10 october 2013 this enabled the 
company to undertake the return of cash 
in a tax efficient manner additionally it will 
enable the company to implement any other 
transactions which might be in the interests 
of the company such as acquisitions or 
disposals in a shorter timescale and at 
a lower expense
a standard listing requires a company 
to comply with a minimum level of 
regulatory requirements but does not 
require compliance with super‑equivalent 
provisions of the listing rules which apply 
only to companies with a premium listing 
despite this reduction in governance 
requirements i am pleased to say that 
we have chosen to report as we have 
previously on a “comply or explain” basis 
against the uk corporate governance 
code september 2012 the “code” 
return of cash
in december we completed a return of 
cash to all shareholders amounting to 
€363 million 725 pence per share by 
way of a b and c share scheme which gave 
shareholders other than certain overseas 
shareholders a choice between receiving 
cash in the form of income or capital the 
return of cash was accompanied by a 5 for 
13 share consolidation to maintain broad 
comparability of the share price and return 
per share before and after the creation of 
the b and c shares
our people
our radical restructuring in 2013 required 
a significant reduction in our staff numbers 
from 299 at the end of 2012 to 88 at the end 
of 2013 of those who left around 50 were 
able to join the new management buy‑in 
company at bitterfeld our employees are 
one of the group’s key strengths and are 
vital in ensuring that we retain our core 
production capabilities i would like to thank 
them for their continuing outstanding 
commitment and contribution i would like 
also to thank those employees who left for 
the significant contribution they made to 
the group and for their professionalism 
during the previous years 
i would particularly like to thank 
hubert aulich who retired from his 
role as executive director of german 
operations and left the board in may 2013 
and peter finnegan the chief financial 
officer “cfo” who informed the board 
in march 2014 that he will retire from the 
group on 31 may 2014 and accordingly 
will not stand for re‑election at this year’s 
annual general meeting peter has been 
involved with the group since 1985 became 
cfo immediately prior to the ipo in 2007 
and has made an outstanding contribution 
to the group’s development and progress 
the board expresses its gratitude to peter 
for his contribution to the success of the 
group and wishes him well for the future
i am pleased to advise that the board has 
appointed matthew wethey as the new cfo 
in addition to his role as group secretary 
matthew is a chartered accountant with 
20 years’ business experience who joined 
the group in january 2009 he will not be 
an executive director of the company and 
thus the company will comply with the 
provisions of the code in relation to size and 
composition of the board from june 2014 
i confirm that all other directors are 
standing for re‑election at this year’s 
annual general meeting in line with 
the recommendations of the code
the board continues to believe that our cash 
conservation strategy is the necessary 
response to current market conditions 
enabling us to protect shareholder 
value whilst preserving the group’s core 
production capabilities the board remains 
committed to the solar industry and believes 
that the medium‑term outlook for solar 
installations remains positive
john sleeman
chairman
19 march 2014 governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 3
overview strategic report overview governance financial statements
“ our improved cost structure enables us to increase 
production output in order to consolidate existing 
and to develop new customer relationships”
chief executive’ s statement
2013 has seen significant growth in global pv 
installations and some modest improvement 
in the industry environment prices across 
the value chain showed some slight recovery 
towards the end of the year following two 
years of continuous price declines this 
improvement has continued into 2014 
but wafer prices remain below industry 
production costs as polysilicon prices 
have been rising at a faster rate 
following a strategic review in late 
2012 the group has completed a radical 
restructuring during 2013 whilst retaining 
core production capabilities and has stabilised 
its financial position the group restructuring 
involved a reduction in production output at 
the uk ingot and german wafer operations 
with a corresponding reduction in personnel 
and the disposal of the group’s polysilicon 
production facility in bitterfeld germany 
to a management buy‑in team the facility 
and staff were transferred together with 
associated obligations and liabilities including 
those relating to the repayment of grants 
subsidies and closure costs in return for 
a cash payment of €123 million from the 
group this transaction was an improvement 
on the alternative shutdown scenario as 
it resulted in lower cash outflows for the 
group and also enabled some jobs to be 
retained under the new management
in view of the challenging market pricing and 
intensely competitive industry environment 
the group continued to operate in cash 
conservation mode during 2013 maintaining 
production at low levels while focusing on 
internal cost reduction quality improvement 
programmes and inventory management 
wafer shipments of 211mw
1
 were significantly 
higher than shipments in the previous year 
2012115mw and also higher than our 
production output as the group took the 
opportunity to expand its customer base 
and to reduce inventories to normal levels 
during 2007–2008 group companies 
entered into a number of long‑term 
agreements with customers to supply 
wafers at prices which are considerably 
above current market levels in view of 
the market conditions our strategy has 
always been to reach accommodation 
where possible with these long‑term 
contract customers although some have 
exited the industry either voluntarily or 
through insolvency five contracts of this 
type remained at the start of 2013 but 
only two were active during 2013 neither 
of these contracts will continue in 2014 as 
one has now expired and a settlement of 
the other has been concluded the overall 
importance of these long‑term contracts 
was much reduced as we have successfully 
developed new customers during 2013 
sales at a premium to spot prices under 
these contracts accounted for only 34 
of wafer shipment volumes in 2013 
the group has two other contracts where 
customers have entered insolvency and 
shipments stopped in 2011 and 2012 
respectively we have registered claims 
with the respective administrators and 
expect to conclude settlements during 
the next twelve months negotiations 
with the final remaining long‑term contract 
customer are progressing with the aim 
of reaching agreement to resume wafer 
supply in the absence of any agreement 
it will be necessary to seek resolution 
through arbitration under the auspices 
of the international court of arbitration 
in common with most pv companies 
the group has long‑term contractual 
commitments for purchase of polysilicon 
which were made to secure supply necessary 
to service long‑term wafer supply contracts 
as in previous years we continued to be 
successful in reaching agreement with our 
suppliers during 2013 to adjust volumes 
and prices on a periodic basis nevertheless 
as a consequence of the reduced wafer 
production levels it was still necessary 
for the group to trade excess polysilicon 
during the year in order to manage inventory 
levels the group has been successful in 
reaching accommodation with both suppliers 
in the year to date 
the year ahead
considerable progress was achieved during 
2013 in lowering our wafer production costs 
both internally and at our sub‑contractor in 
japan where the weakening of the japanese 
yen was also beneficial as a result of these 
cost reductions and the modest price 
improvement seen in late 2013 and early 2014 
our cash cost of wafer production is now 
closer to market prices in view of this 
improved cost structure the group decided 
to increase production output during the 
first quarter of 2014 to take advantage 
of the improved market situation and to 
consolidate links with our new customers 
initially we are doubling our production 
output compared to 2013 and this has 
necessitated some recruitment of production 
personnel in uk and germany this expansion 
will enable wafer shipments to be maintained 
at 2013 levels when sales volumes were 
boosted by shipments from inventory 
the group will look to conclude settlements 
with the administrators of the two long‑term 
contract customers in insolvency and also 
to conclude negotiations with the remaining 
long‑term contract customer so that wafer 
shipments can resume the group will look 
to reinforce relationships with those new 
customers where trading started in 2013 
and to develop new customers as 
opportunities allow
as in previous years the group will continue 
to negotiate with our polysilicon suppliers 
in order to adjust prices and volumes on 
a periodic basis the group expects to use 
increasing quantities of polysilicon for our 
expanding wafer production however it 
will trade excess polysilicon as required 
to manage inventory levels
iain dorrity
chief executive officer
19 march 2014
1
  in order to reflect improvements in industry cell efficiencies wafer shipments have been converted to mw assuming a cell efficiency of 17 rather than 16 as in previous years 
for comparison purposes 2012 shipments have been restated using 17 efficiency 4 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
our business
experts in multicrystalline silicon wafers
our customers solar cell producers primarily in asia process these wafers into solar cells and modules 
to harness the clean silent and renewable power from 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
who we are what we do
with over 25 years’ expertise in manufacturing 
and technology development within the pv industry 
pv crystalox solar is one of the most experienced 
manufacturers of multicrystalline silicon wafers 
the key component in solar power systems
what sets us apart
pv crystalox solar is playing a central role in making solar cost 
competitive with conventional hydrocarbon power generation and 
as such continues to seek to drive down the cost of production 
whilst increasing solar cell efficiency
pv crystalox solar is the only remaining pure play wafer 
manufacturer in europe and is able to take advantage of any 
eu specific manufacturing incentives the group exports the 
vast majority of its wafers to customers around the world
despite the restructuring carried out in 2012 and 2013 pv crystalox solar 
has retained its core ingot and wafer manufacturing capabilities during 
an extremely challenging period for the pv industry the production 
capacity is considerably greater than current production levels and with 
a long history of production with high growth pv crystalox solar is 
well placed to expand output at the point when pricing exceeds costs
ingot production
1
  the group’s ingot production facilities 
are based in oxfordshire uk where 
it has four production plants two of 
which are currently in operation
  multicrystalline silicon ingots 
are directionally solidified under 
carefully controlled conditions from 
molten highpurity polysilicon in 
production systems designed and 
manufactured internally
  continual innovation and development 
ensures pv crystalox solar’s 
leadership in the manufacture of 
superior quality silicon ingots
internal production
100 at crystalox limited 
abingdon uk
external production
nil
crystalox limited
the group structure
pv crystalox solar plc
abingdon uk
pv crystalox solar 
silicon gmbh
erfurt germany
crystalox limited
abingdon uk
pv crystalox solar kk
tokyo japan governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 5
overview strategic report
our customers
block production wafer production
2 3
  the sectioning of ingots into blocks 
is carried out at the group’s facilities 
in the united kingdom and by 
pv crystalox solar’s partners  
in japan 
  quality checks are carried out throughout 
ingot and block production resulting 
in consistent high performance 
multicrystalline wafers
  wafering of the blocks takes place 
at the group’s facility in erfurt 
germany and in japan by our 
wafering subcontractors
  wafers are manufactured to meet 
the highest standards and we work 
closely with our customers to 
increase product quality 
as pricing on the spot market fell below contract 
prices the group cooperated with its long‑term 
contract customers to offer lower prices but at 
a premium to spot prices
in response to the huge changes which have 
affected the industry over recent years pv crystalox 
solar has successfully developed new customer 
relationships as many of the group’s previous 
customers and market leaders have left the 
industry either voluntarily or through insolvency
internal production
crystalox limited abingdon uk
internal production
pv crystalox solar silicon gmbh 
erfurt germany
external production
japanese subcontractors
external production
japanese subcontractors
japanese subcontractors
pv crystalox solar silicon gmbh
japanese subcontractors
crystalox limited
read more about our operations
turn to page 12
read more about our markets
turn to page 6
established
1982
2013 production 
capacity
750mw
pv crystalox solar supplies 
multicrystalline silicon wafers 
to pv companies from its wafering 
facilities in germany and japan 
from these strategic locations 
pv crystalox solar collaborates 
closely with its customers to ensure 
standards are maintained and that 
any technological developments 
are passed on quickly
overview governance financial statements 6 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
3
1
2
4
the current market
read more about the regulatory environment
visit wwwpvcrystaloxcomaboutusourmarket
the current market responding to a challenging market
4
    usa
  fourth biggest global market for installations in 2013 with 48gw
2
    europe
  slowdown in europe where installations were 103gw down 42 on 2012
  italy experienced a 70 market decrease and germany a 57 market 
decrease compared to 2012
  decline in political support in several european countries
  800gw of cumulative installations 58 of total installations
1
    china
  biggest global market in 2013 with a record 113gw installed
  target of 14gw in 2014 and 35gw cumulative installed capacity by 2015
  stimulated by new feedin tariffs
3
    japan
   third biggest global market in 2013 with around 69gw installed
  cumulative pv installations passed the 10gw landmark in august 2013
  stimulated by the generous incentive programme twice that on offer 
in china and germany
the global market
according to the european photovoltaic 
industry association the global market 
grew 35 compared with 2012 to 37mw 
in 2013
global pv cumulative installed capacity reaching 1367gw 
at the end of 2013 the asia‑pacific region accounted for 
57 of last year’s global installations market with europe 
accounting for just 28 china accounted for 31 and japan 
19 of installations as the market continued its transition 
from a european‑dominated environment to an asia‑pacific 
focus this trend is expected to continue with china 
experiencing robust and sustained growth in installations 
which should enable it to remain the number one market 
in the coming years governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 7
overview strategic report overview governance financial statements
our key operating locations the global regulatory environment
crystalox limited
abingdon uk
pv crystalox solar silicon 
gmbh erfurt germany
claims of unfair trade practices have led to antidumping 
investigations
usa
  november 2012 – probe concluded that solar cells were being 
imported at below fair market value and duties of 24 
to 254 were imposed against chinese module companies
  early 2014 – new investigation into chinese solar products 
due to exploitation of a loophole involving cells from taiwan 
and elsewhere
china
  july 2013 – probe into polysilicon imports with interim 
antidumping duties of 24 to 57 imposed against 
south korea and us companies
  early 2014 – confirmation that duties on imports of 
polysilicon from the us will be applied for five years
europe
  june 2013 – eu finding that for wafers cells and 
modules the fair value was 88 higher than current 
prices provisional antidumping duties of 118 
imposed against chinese companies
  august 2013 – revised decision resulting in minimum 
import price and import quota of 7gw
read the operational review
turn to page 12
pv crystalox solar kk
tokyo japan
“ doubledigit growth is expected for the pv market in 
2014 with some analysts expecting global installations 
to exceed 50gw” 8 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
our strategy and kpis
the group will continue with its cash conservation strategy 
in 2014 at the same time our improved cost structure enables 
us to increase production output in order to consolidate existing 
and to develop new customer relationships
our longterm strategy how we will achieve this in 2014
cash conservation
continued focus on operating 
cost reductions
retaining flexibility
of production
focus on further developments 
of the leading silicon processing 
technology
continued focus on major 
pv companies
operational priorities business priorities
  increase production output as market prices allow
  retain operational capabilities
  trade excess polysilicon but less than in 2013
  working capital management
  negotiate improved polysilicon pricing
  other supplier price reductions
  production efficiencies
  higher yields
  actively managing our polysilicon supply contracts
  wafer production in germany and japan
  work with customers to increase product quality and develop the next 
generation of wafer technology
  enhance relationships with existing customers
  develop new customers governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 9
overview strategic report overview governance financial statements
2013 priorities key performance indicators
  temporarily reduce production output
  retain operational capabilities 
  trade excess polysilicon
  working capital management 
  negotiate improved polysilicon pricing
  restructure operations
  other supplier price reductions
  production efficiencies
  higher yields
  diversity in sourcing polysilicon supply
  geographical diversity in wafer production
  work with customers to increase product quality and develop 
the next generation of wafer technology
  enhance relationships with existing customers
  develop new customers
wafer shipments
211mw 83
2012 115mw
ebt on continuing 
operations
1
€66m
2012 restated loss €307m
net cash from operating 
activities on continuing 
operations 
€44m
2012 restated €773m
revenue on continuing 
operations
€714m 542
2012 €463m
free cash flow on 
continuing activities
2
€22m
2012 restated €650m
net cash 
€392m
2012 €894m
basic earningsloss 
per share 
€0010
2012 loss €0299
cash conservation focus
the group will continue with its cash conservation strategy while current market conditions persist however as a result of 
reduced manufacturing costs the group is able to increase production and develop customer relationships rather than keeping 
production at a minimum level consistent with retaining core ingot and wafering manufacturing capabilities 
our vision
our vision is to remain one of the pv industry’s cost leaders and to supply quality wafers
1  this increase in profitability was driven primarily by the impact of revised assumptions in 
respect of the onerous contract provision including that market conditions at the end of 
2013 were somewhat better than anticipated last year which resulted in non‑ cash income 
of €117 million in the statement of comprehensive income
2  free cash flow is defined using net cash from operating activities less cash used in 
investment activities less interest received 10 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
risk management and principal risks
during 2013 the group continued to be exposed to several risks 
that had been identified in previous annual reports
one of the key mitigating strategies was the continuation of the cash conservation measures and the 
group restructuring described in the operational review the key risks to which the group is exposed 
are described below 
the group might be affected by a number of risks which may have a material adverse effect on our reputation 
operations andor financial performance the risks associated with the group’s financial instruments are 
detailed in note 30 in the notes to the consolidated financial statements
the group is exposed to a number of other risks some of which may have a material impact on its results 
it is not possible to identify or anticipate every risk that may affect the group some of which may not be known 
or may not have been assessed our overall success as a global business depends in part upon our ability 
to succeed in different economic social and political environments and manage and mitigate such risks
principal risks nature of risk rs

mitigating actions
  lowering production costs
  we negotiate with our suppliers to achieve polysilicon prices at close 
to the spot price where possible
  temporary reduction in ingot and wafer production output
  continuing cash conservation measures
  maintaining a strong balance sheet which gives the group the strength 
to weather the ongoing price squeeze 
the group has previously sold wafers under 
longterm contracts and at spot prices 
as pricing on the spot market decreased 
during the last three years we cooperated 
with our longterm contract customers and 
offered lower prices but at a premium to 
spot prices 
the group no longer has significant 
longterm contracts that provide pricing 
protection it is thus important that the 
group’s cash cost of production is broadly 
in line with market prices in order to avoid 
significant cash burn 

price of wafers on the 
spot market remain 
below cash cost of 
production
  we look to obtain flexibility in terms of price volume and timing of 
deliveries by negotiating amendments to the terms of our longterm 
contracts with our suppliers
  we have and will continue to trade excess volumes of polysilicon feedstock
the group obtains polysilicon feedstock 
through two longterm contracts where 
pricing is significantly above current 
market levels due to our reduced wafer 
production output the contracted volume 
is significantly in excess of the group’s 
requirements

contracted polysilicon 
feedstock continues to 
exceed our own internal 
requirements
  we have longterm relationships which help protect our access to goods 
and services provided by our key suppliers
  we look to develop relationships with alternative suppliers such that we 
could obtain those goods and services at short notice if required
the group is solely reliant on certain key 
suppliers for some goods and services 
should any of these key suppliers cease 
supply it might impact the group’s ability 
to meet production targets

our reliance on other 
key suppliers  governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 11
overview strategic report overview governance financial statements
principal risks nature of risk rs

mitigating actions
  we focus on supplying those major pv companies which are better 
equipped therefore to sell product into global markets
  we ensure that the group operates internationally thus spreading 
risk among several markets
  we focus on cost reduction and efficiency enhancement strategies 
to reduce the need for government support in the long term
the solar industry is dependent on the 
support of individual governments to 
encourage the installation and use of 
solar electricity within their territories 
without such support the increased 
uptake of solar electricity may reduce 
or be slow to develop

pv market development 
is reliant on government 
incentives support and 
legislation
  we are currently producing at levels considerably below capacity 
due to our cash conservation activities
  ingot manufacturing is carried out in the united kingdom where 
the group has four separate sites available for production
  wafering is carried out at our internal facility in germany and 
at a subcontractor in japan
  we have health and safety fire prevention and security procedures 
in place at all facilities
  we have comprehensive property damage and business interruption 
insurance in place
the group has operations at different stages 
in the value chain the loss of a facility at 
any stage would impact the group’s ability 
to fulfil contracted wafer or to retain core 
production capabilities

loss of a key production 
facility could disrupt our 
ability to deliver 
contracted wafer 
volumes and to retain 
core production 
capabilities 
  we work with pv companies who have a diverse geographic customer 
base and thus less dependent on demand from a particular region
  we will cooperate as we have done previously with the authorities 
in the event of any future investigations 
trade disputes can lead to imposition of 
duties on imports of some pv products 
recent years have seen claims of dumping 
of chinese products into both europe and 
the united states and also claims by 
china regarding imports of polysilicon 
the renewal of the trade dispute between 
the united states and china may result in 
disruption the market

imposition of trade 
barriers and restrictions 
may have a significant 
impact on the pv industry
  where possible we concentrate on customers that are financially strong 
with a clear strategic vision for the pv industry and accordingly have the 
potential to be longterm major players in the industry 
  we work in partnership with our customers to ensure that the quality 
specifications and efficiency of our wafers are suitable for their current 
and future needs
  we are continuing to develop new customers and broaden our 
customer base
with many companies exiting the pv industry 
either voluntarily or through insolvency 
and the increasing dominance of chinese 
players the accessible customer base is 
getting smaller the group is dependent on 
a small number of customers for its sales 
and the loss of any major customer either 
to a competitor or through its own business 
circumstances might impact significantly 
on the group’s financial condition 
shrinking customer base

  rs refers to “risk status” — the current status of a particular risk as compared to the previous year 
the risk may be classified as having increased decreased or remained approximately the same as 
the previous year
risk status key
 risk steady 
risk increase

risk decrease 12 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
operational review
“  the group restructuring involved a reduction in production levels 
and headcount however we retained our core ingot block and 
wafer production facilities”
market drivers
according to the european photovoltaic 
industry association “epia” global pv 
installations grew to 37gw in 2013 a 35 
rise over the previous year china and 
japan were the two leading markets and 
together accounted for 49 of installations 
as the market continued its transition from 
a european‑dominated environment to a 
global market new european installations 
were 10gw down 43 on 2012 as demand 
in several key markets such as germany 
and italy continued to decline 
cumulative pv installations in japan passed 
the 10gw landmark in august 2013 making 
japan only the fifth country to reach this 
milestone joining germany italy china 
and the us the latter two only reached 
the milestone during the first half of 2013 
growth in japan has been stimulated by the 
generous incentive programme that started 
in july 2012 whereby japan’s feed‑in tariff 
in fiscal 2013 was 378 yen us038kwh 
for 20 years which is more than twice the 
tariffs on offer in china and germany 
china was the leading global market and 
installed 113gw no country has ever added 
more than 8gw of solar power in a single 
year prior to 2013 and china’s record 
outstripped even the most optimistic forecasts 
of twelve months ago the chinese state 
council backed up targets recently announced 
by the state grid and has set a cumulative 
target of 35gw of installed capacity by 2015 
this represents a 14gw increase on the 
previously stated 2015 target of 21gw and 
provides further support for its substantial 
domestic manufacturing industry the chinese 
government is targeting 14gw of additional 
pv capacity in 2014
the dramatic decline in pv industry pricing 
during the last two years led to claims of 
unfair trade practices and to anti‑dumping 
investigations in the united states china 
and europe in november 2012 the united 
states international trade commission 
“usitc” judged that chinese producers
exporters had sold solar cells at below fair 
market value and had materially damaged 
the us pv industry duties ranging from 
24 to 254 were imposed the enquiries 
in china and europe have recently been 
concluded although with varying outcomes
in july 2013 china’s ministry of commerce 
“mofcom” announced that a probe 
launched last year had found that polysilicon 
imports into china were damaging domestic 
manufacturers provisional anti‑dumping 
duties ranging from 24 to 57 were 
imposed against solar‑grade polysilicon 
imports from south korea and the 
united states 
the european commission launched 
investigations in september 2012 and 
concluded that chinese producers were 
dumping wafers cells and modules into 
the eu market and that the fair market 
value was 88 higher than current prices 
exports of pv products from china to the eu 
totalled €21 billion in 2011 making the case 
the largest unfair‑trade probe ever started 
by the eu while provisional anti‑dumping 
duties of 118 were imposed in june 2013 
with a further threatened increase to an 
average 47 the eu abruptly changed its 
stance in august 2013 and accepted an 
undertaking by chinese pv companies to 
set a minimum import price while details 
remain unclear  this price is apparently almost 
half the level originally deemed necessary 
to remedy the injury from dumping an import 
quota of 7gw will also apply above which 
duties will be imposed
following a period of calm in the latter part 
of 2013 pv industry trade disputes have 
erupted again in january 2014 with the 
united states government officially opening 
another anti‑dumping and anti‑subsidy 
investigation into chinese solar products 
imported into the united states the decision 
by usitc follows a petition at the end of 2013 
in which it claimed that existing anti‑dumping 
levies averaging 31 were being 
circumvented by china’s manufacturers 
who are exploiting a loophole by using 
cells from taiwan and elsewhere for their 
modules a preliminary determination of 
any countervailing and anti‑dumping duties 
is not expected until june at the earliest
china responded swiftly even before 
the united states decision was finalised 
by imposing fresh duties on imports 
of polysilicon from the united states 
and which will be applied for five years
operational review of 2013
on account of the depressed market prices 
excess inventory and our cash conservation 
strategy wafer production output was 
maintained at low levels during 2013 
we operated at below 20 of our maximum 
750mw capacity but actual sales volumes 
of 211mw were almost twice our production 
output as the group was able to supply 
customers from inventory as a result 
wafer inventories were reduced to almost 
optimum levels by the end of 2013
the group restructuring involved a reduction 
in production levels and headcount at each 
of the group’s manufacturing sites in uk 
and germany and its sales office in japan 
the group retained its core ingot block 
and wafer production facilities although 
the majority of the value of production 
equipment was written down as an 
impairment charge in 2012 governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 13
overview strategic report
  in the uk where the group’s ingot and 
block production facilities are located 
headcount was reduced by 65 two 
of the four production plants were 
mothballed and production cut such 
that operations continued at less than 
20 of the 750mw capacity
  in erfurt germany the wafering operation 
suffered a 52 headcount reduction the 
mothballing of the majority of the wafering 
wire saws and a significant cut in output
  in bitterfeld germany polysilicon 
production at the plant was suspended 
in november 2011 from which time the 
plant operated in idle mode a decision 
to permanently discontinue operations 
at the plant was taken at the end of 2012 
the group commenced consultation with 
its employees as part of the shut down 
process however during this process 
an agreement was reached for the disposal 
of the plant to a management buy‑in team 
the facility and staff were transferred 
together with associated obligations and 
liabilities including those relating to the 
repayment of grants subsidies and 
closure costs in return for a cash 
payment of €123 million from the group 
this transaction was an improvement 
on the alternative shutdown scenario as 
it resulted in lower cash outflows for the 
group and also enabled some jobs to be 
retained under the new management
  in japan there was a headcount reduction 
of 29 and the operation relocated to 
smaller office premises in december 2013
during the year the group remained in cash 
conservation mode and was successful in 
achieving internal cost reductions quality 
improvements and lowering inventory levels 
  internal costs were reduced through a 
number of activities including successful 
negotiation with our polysilicon suppliers 
on price and volumes disposal of the 
group’s polysilicon facility at bitterfeld 
improvements in the efficiency of the 
wafer production activities at erfurt and 
negotiating lower costs with our wafering 
sub‑contractor in japan which also 
benefited from a weakening japanese yen
  the group undertook quality improvement 
programmes in the uk which focused on 
optimisation of the ingot crystallisation 
process and which have enabled us to 
offer higher efficiency wafers that 
command a premium price
  we reduced levels of polysilicon and 
wafer inventory and at the year end they 
are now close to optimum levels
a description of 2013 developments with 
our customers and polysilicon suppliers is 
included in the chief executive’s statement 
outlook
double‑digit growth is expected for the 
pv market in 2014 with some analysts 
expecting global installations to exceed 
50gw up from the 37gw achieved in 2013 
pressure on pricing is likely to remain 
although some market tightness may 
positively impact sales prices as supply 
and demand come closer to balance 
later in the year
the board continues to be mindful of 
the challenging market situation and the 
increasingly dominant role of chinese 
players in the pv industry and does not 
expect the underlying business to return 
to profitability during 2014 nevertheless 
it is taking cautious steps to position the 
group to take advantage of any further 
improvement in market conditions the 
group has a healthy net cash balance and 
the restructuring carried out together with 
the progress achieved in cost reductions 
during 2013 will enable the group to 
compete more effectively and provide 
the opportunity to broaden its customer 
base in 2014
iain dorrity
chief executive officer
19 march 2014
overview governance financial statements
read more about our business at
visit wwwpvcrystaloxcomaboutusourbusiness 14 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
financial review
review summary
  in 2013 group revenue 
increased by 542 to 
€714 million
  profit for the year from 
continuing operations 
was €62 million 
2012 restated a 
loss of €413 million
  profit attributed to 
equity owners of the 
parent was €37 million 
2012 loss of 
€1214 million
  in december the group 
returned €363 million 
to shareholders under 
a b and c share scheme
  the group’s net cash 
position at year end 
was €392 million
  operating cash flow 
from continuing 
operations was 
€44 million
the presentation of the financial statements 
has been amended for 2013 following the 
disposal of the polysilicon facility at bitterfeld 
which is classed as a discontinued operation 
the consolidated statement of comprehensive 
income and the consolidated cash flow 
statement have been split between continuing 
operations and discontinued operations 
the 2012 comparatives have been restated 
to exclude the discontinued operations 
comments below unless expressly stated 
refer to the continuing operations
in 2013 group revenue increased by 542 
to €714 million 2012 €463 million due 
to higher wafer sales volumes including 
a large proportion of its surplus wafer 
inventories and increased trading of 
surplus polysilicon feedstock 
during the year the group generated an ebit 
of €105 million 2012 restated loss 
€300 million this increase in profitability 
was driven primarily by the impact of revised 
assumptions in respect of the onerous 
contract provision including that market 
conditions at the end of 2013 were somewhat 
better than anticipated last year which 
resulted in non‑cash income of €117 million 
in the statement of comprehensive income 
the onerous contract provision was created 
in 2011 and updated in 2012 as non‑cash 
charges to the cost of material in respect of 
the onerous nature of the group’s long‑term 
polysilicon supply agreements the onerous 
contract provision unwinds from period 
to period as the related contracts move 
towards expiry details of the onerous 
contract provision are discussed later in 
this review and details of the movement 
in the onerous contract provision are set 
out in note 22 of the financial statements 
net interest expense was €39 million 
2012 restated €07 million this was 
made up of a charge of €46 million in 
respect of the unwinding of the discount 
rate used in the calculation of the group’s 
onerous contract provision and interest 
charged on group borrowings and pension 
commitments of €01 million which was 
partly offset by interest income of €08 million 
the income tax charge of €04 million 
is mainly due to tax on interest received 
which cannot be offset against trading tax 
losses brought forward the prior year tax 
charge of €106 million was mainly the result 
of the reversal of deferred tax assets relating 
to previously recognised tax losses these 
losses are still available for offset against 
future trading profits but these are unlikely 
to be utilised in the immediate future
the profit attributable to equity owners in the 
year of €624 million on continuing operations 
was offset by losses of €258 million on 
discontinued operations to give an overall 
profit attributable to equity owners in the 
year of €366 million which equates to a 
profit per share of €001 in 2012 the loss 
on the restated continuing operations of 
€413 million and the loss of €801 million 
on discontinued operations gave an overall 
loss attributable to the equity owners of 
€1214 million which equates to a loss 
per share of €0299 governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 15
overview strategic report
the group’s net cash position at the year end 
was €392 million which was €502 million 
lower than the net position of €894 million 
at the start of the year the main outflows 
in the year were the €363 million cash return 
to shareholders of £00725 approximately 
€0087 per share under a b and c share 
scheme and outflows of €158 million 
in respect of the discontinued operations 
when earnings before taxes of €66 million 
are adjusted for non‑cash movements 
mainly the decrease in provisions of 
€317 million and the reversal of the net 
interest expense relating to the discounting 
of the onerous contract provision of 
€39 million the adjusted cash outflow 
before tax from continuing operations was 
€217 million the group was successful in 
releasing €242 million of cash from 
working capital mainly due to the 
reductions in inventories €210 million 
and polysilicon feedstock advance payments 
€95 million partially offset by the increase 
in debtors of €57 million this gives net 
cash inflows from operating activities of 
€44 million when the effects of inflows 
from income taxes of €11 million and interest 
received of €08 million are included after 
deducting cash used in investing activities 
of €14 million and reversing out interest 
received of €08 million the free cash inflow 
was €22 million the group’s capital 
expenditure in the year was €01 million 
2012 restated €11 million the cash 
conservation strategy had meant that there 
was no significant capital expenditure in 
the year and accordingly only essential 
items were purchased investment grants 
received in prior years were all in respect 
of the german operations as capital 
expenditure in the united kingdom does 
not qualify for such grants 
further cash flows were due to the cash 
return to shareholders of €363 million the 
amounts paid of €158 million in respect of 
the discontinued polysilicon operations and 
the effect of foreign exchange rate changes 
on cash of €23 million the cash outflows 
due to the discontinued operation consisted 
of adjusted cash losses of €07 million an 
increase in working capital of €35 million 
and a payment to the management buy‑in 
team of €123 million
onerous contract provision “ocp”
the group has long‑term agreements for 
the purchase of its raw material polysilicon 
from two external suppliers that were 
entered into in 2008 and 2010 given the 
significant decline in market prices for 
polysilicon and silicon wafers since the 
contracts were signed the contracted 
cost of polysilicon under these agreements 
means the group is likely to incur losses 
in respect of these contracts consequently 
the board provided for the anticipated 
losses under these contracts taking into 
account the terms of the contracts and 
market conditions 
group management has continued to 
negotiate and reach agreement with both 
suppliers as to volumes and price during 
2013 and this will continue for the duration 
of the contracts in addition market conditions 
for the trading of surplus polysilicon were 
a little better than had previously been 
anticipated the ocp has been recalculated 
as at 31 december 2013 taking into account 
the remaining contractual periods the 
current and anticipated agreements with 
suppliers plus updated market conditions 
and the net effect has been the release of 
€117 million from the provision 
note 22 details the various movements in 
the provision during the year the amount 
credited to the cost of materials totalled 
€244 million the amount charged as 
finance cost was €46 million in respect 
of the unwinding of the discount factor 
as there is one year less outstanding on 
the contracts and the amount charged 
in respect of exchange differences was 
€57 million as the provision is calculated 
in various currencies the net provision 
was €265 million at the year end 
2012 €520 million 
impairment
the board assessed the carrying values of the 
group’s property plant and equipment for 
impairment as at 31 december 2012 as a 
result of this assessment an impairment 
charge was recognised in 2012 that reduced 
the carrying values of property plant and 
equipment and intangibles by €825 million 
only €376 million of this amount related 
to that used in continuing operations and 
the remainder related to the discontinued 
operation that was disposed of in june 2013 
accordingly the group’s property plant and 
equipment in respect of continuing operations 
had been largely written down and the 2013 
annual depreciation charge was a modest 
€04 million it should be noted that the 
plant and equipment remains available for 
use and a significant increase in production 
can be achieved without a significant increase 
in capital expenditure or an increase in the 
annual depreciation charge
“ the board believes that its ongoing strategy will enable the group 
to operate within its net cash reserves for the foreseeable future and 
accordingly be in a strong position to take advantage of improving 
market conditions at the appropriate time” 16 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
financial review continued
discontinued operations
in june 2013 the group disposed of its 
polysilicon production facility in bitterfeld 
germany to a management buy‑in team 
the team acquired the facility and staff 
together with associated obligations and 
liabilities including those related to the 
repayment of grants subsidies and closure 
costs in return for a cash payment from the 
group of €123 million this transaction was 
preferable to shutting the facility as it resulted 
in lower cash outflows for the group and 
enabled some jobs to be retained under the 
new management specifically the disposal 
was preferable to closure because it gave 
certainty as to the timing and quantum of 
cash flows rather than the uncertainty 
inherent in closing a production facility and 
thereby dismissing employees disposing 
of plant and equipment and selling land 
note 36 sets out the loss incurred at the 
polysilicon plant in the period prior to 
disposal of €26 million and the related 
operating cash outflow of €35 million in 
addition to the above mentioned payment 
on disposal of €123 million the 2012 
comparison numbers in the accounts have 
been restated to remove the prior year 
effect of this discontinued operation
going concern
the group’s directors have put in place 
a cash conservation strategy to enable 
the group to manage its operations 
whilst market conditions remain difficult 
the following passage sets out the 
rationale behind this strategy and 
why the board believes it will enable 
the group to sustain adequate cash 
resources for the foreseeable future
a description of the current market 
conditions and the group’s actions 
to conserve cash are included in the 
strategic report 
as part of its normal business practice 
the group regularly prepares both annual 
and longer‑term plans which are based on 
the directors’ expectations concerning key 
assumptions the assumptions around 
contracted sales volumes and prices and 
contracted purchase volumes and prices 
are based on management’s expectations 
and are consistent with the group’s 
experience in the first part of 2014 
the group has long‑term contracts with 
two external suppliers for the purchase 
of polysilicon our main raw material 
the group’s management has been 
successful in reaching accommodation 
with these suppliers to secure periodic 
contract amendments and to adjust prices 
and volumes as a result these amendments 
have brought the terms more in line with 
current market pricing to manage inventory 
levels the group will sell surplus polysilicon 
and has been successful in this respect 
during 2013 and the first quarter of 2014 
the nature of the group’s operation means 
that it can vary production levels to match 
market requirements as part of the cash 
conservation measures and the associated 
planning assumptions production output 
has been flexed to match expected demand 
in line with the group’s strategy of retaining 
flexibility in production levels production 
can be brought back on stream when market 
conditions allow employment costs were 
reduced during 2013 following redundancies 
in the united kingdom and germany at the 
beginning of the year the group has also 
reduced other costs through negotiation 
with suppliers and by achieving greater 
efficiencies within the group’s operations
as a result of these actions and related 
modelling assumptions the group’s base 
plans indicate that the group will be able 
to operate within its net cash reserves for 
the foreseeable future 
on 31 december 2013 there was a net cash 
balance of €392 million comprising cash 
or cash equivalents of €399 million and 
short‑term loans of €07 million the current 
borrowings are in japanese yen and are 
subject to certain covenants on the japanese 
subsidiary company including interest cover 
profitability and receivables cover the 
group’s plans are based upon remaining 
within its net cash balance and are not 
dependent upon these short‑term borrowings 
therefore whilst any consideration of future 
matters involves making a judgement at a 
particular point in time about future events 
that are inherently uncertain the directors 
after careful consideration and after making 
appropriate enquiries are of the opinion 
that the group has adequate resources 
to continue in operational existence for 
at least twelve months from the date of 
approval of the financial statements thus 
the group continues to adopt the going 
concern basis of accounting in preparing 
the annual financial statements
the board believes that its ongoing strategy 
will enable the group to operate within 
its net cash reserves for the foreseeable 
future and accordingly be in a strong 
position to take advantage of improving 
market conditions at the appropriate time
dr peter finnegan
chief financial officer
19 march 2014 governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 17
overview strategic report
corporate responsibility
“ the group has effective environmental management and health 
and safety systems in place in support of and to complement 
its quality assurance systems”
the environment 
our product
the group is a leading producer of 
multicrystalline silicon wafers for the 
production of solar cells these cells are 
processed into solar systems used for the 
generation of renewable electricity with 
a lifetime in excess of 25 years providing 
electricity for a known starting cost and 
with minimal maintenance depending on the 
system’s location it has been estimated that 
the total energy used in the production of a 
silicon solar system will be recovered 
within a period of two to three years 
our focus on our environmental 
responsibilities is clearly evident being 
a producer of wafers for the pv industry 
and providing for power generation that 
is free of emissions 
our processes
it is the group’s policy to
  seek to eliminate and where this is 
not practicable to minimise negative 
environmental impacts from the pursuit 
of all business interests while continuing 
to produce high quality products which 
meet customer requirements 
  comply with all statutory environmental 
legislation as a minimum and to aim to 
improve upon the standards set by the 
local regulatory authorities and 
  foster an informed and responsible 
approach to all environmental concerns 
and encourage the involvement of 
employees customers and suppliers 
regulatory authorities are consulted 
and informed at all appropriate times 
waste and recycling
the group has effective environmental 
management and health and safety systems 
in place in support of and to complement 
its quality assurance systems across all 
its sites in the united kingdom and 
germany a proactive approach is taken 
to the pre‑treatment of waste as required 
by the eu landfill directive the purpose 
of this treatment requirement is to reduce 
the impact of waste sent to landfill and to 
increase the amount of waste that is recycled 
for instance within the group all silicon 
carbide used in the sawing of blocks and 
wafers is continually treated and recovered 
for reuse 
  at crystalox in the united kingdom 
an automated water filtration system 
has been installed that allows for 
recovery of 90 of process water used 
during the cutting and grinding of 
multicrystalline silicon blocks silicon 
fines are removed from the process water 
which is subsequently reconditioned to 
allow for recirculation thus significantly 
reducing waste water discharge volumes
  in addition there is a trade effluent 
discharge consent in place with the local 
authority watersewage company that 
allows crystalox to discharge fine silicon 
particles suspended in water provided it 
does not exceed a chemical oxygen demand 
of 1500 mgl and a settleable solids level of 
1000 mgl during 2013 trials commenced 
with different types of trade effluent 
treatment plant with a view to reducing 
these discharge limits by 30 in one year 
ph control chemicals and flocculants 
were introduced in conjunction with the 
existing centrifuge systems and successful 
trials were run with dissolved air filtration 
systems and lamella separators that are 
now delivering significant improvements 
in the waste water quality
  crystalox is a member of compliance 
schemes which fulfil local legislation 
requirements such as the producer 
responsibility obligations packaging 
waste regulations 2007 this scheme 
sets targets for british industry for the 
recovery and recycling of packaging 
waste seeking to ensure that discarded 
products are environmentally treated 
through recycling and recovery rather 
than being disposed of in landfill 
  a similar scheme exists in germany where 
the erfurt‑based operation again received 
an award from the state of thuringia in 
2013 for participating successfully in the 
sustainability programme “ökoprofit” 
a voluntary programme carried out by 
industrial companies that first analyses 
the impact of their industrial production 
on the environment and then reduces 
waste materials packing materials 
consumption of water use of energy 
and emissions 
  all plastics wood paper polythene 
cardboard metals etc are recycled either 
by being sold to recycling companies or 
under local council arrangements removed 
for recycling the group endeavours to 
recycle all recyclable packaging materials 
to conform to current packaging legislation 
and thereby minimise waste to landfill 
across all its sites 
  during 2012 the operation at erfurt 
introduced an energy management 
programme and has received its certification 
for iso 50001 energy management system 
as a result of this in 2013 we were able 
to reduce our total energy consumption 
per wafer by 13 compared to 2012 which 
was 20 less than in 2011 18 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
corporate responsibility continued
the environment continued
environmental management systems
we recognise the need to establish formalise 
and apply an environmental management 
system at each of our manufacturing sites 
therefore in order to further enhance its 
already effective environmental and health 
and safety management systems 
  crystalox in the united kingdom continues 
its programme to achieve environment 
and health and safety accreditations and 
  the site in erfurt germany has been 
carrying out an environmental audit for the 
last ten years focusing on the consumption 
of water electricity and on the emission 
of waste materials 
these high standards complement and 
consolidate crystalox and the erfurt 
operation’s en iso 9001 status further 
fulfilling our responsibility to the 
environment and health and safety 
our staff
the group’s policy is to provide equal 
opportunities to all existing and prospective 
employees the group recognises that its 
operation and reputation depends upon the 
skills and effectiveness of its employees 
and is committed to the fair and equitable 
treatment of all and to prohibit discrimination 
on the grounds of age sex religion sexual 
orientation race nationality or ethnic origin
it is the group’s policy to give sympathetic 
consideration to the recruitment continuing 
employment training career development 
and promotion of disabled persons in the 
event that a person became disabled he or 
she would continue to be employed wherever 
possible in the same job if the degree of 
disablement made this impractical every 
effort would be made to find suitable 
alternative employment and to give any 
appropriate training the group’s policy 
on training and career progression applies 
equally to everyone within the group whether 
or not disabled
in december 2012 the board announced that 
following a strategic review of the business 
it would carry out a radical restructuring 
in response to the continuing challenging 
market conditions as a result during 2013 
the group adjusted its operations to align with 
anticipated sustainable short‑term market 
demand while retaining its core production 
capabilities as part of this programme the 
group i initially discontinued its polysilicon 
production facility in bitterfeld germany and 
then transferred it to the management buy‑in 
company and ii substantially reduced its 
production output at its uk ingot and german 
wafer operations regrettably these actions 
led to very significant job losses both in the 
uk and in germany staff numbers dropped 
from 299 at the end of 2012 to 88 at the end 
of 2013
the restructuring was completed following 
a consultation process with the staff 
affected and the crystalox limited 
employee forum in the uk and the 
works councils in erfurt and bitterfeld 
to agree the terms of the restructure
gender diversity
the following table sets out a breakdown by gender showing at 31 december 2013 i the 
number of persons who were directors of the company ii the number of persons who were 
senior managers of the group other than persons falling within sub‑paragraph i and 
iii the number of persons who were employees of the group
number 
of men 
number 
of women 
directors 4 1000 0 0
senior managers 11 917 1 83
employees 50 676 24 324
total 65 722 25 278 governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 19
overview strategic report
“ our employees are one of the group’s key strengths and are vital 
in ensuring that we retain our core production capabilities”
training
the group recognises that a key factor in 
its successful operations is its personnel 
in spite of the headcount reductions at all 
sites management’s top priority has been to 
provide a safe and secure work environment 
for all t o this end health and safety training 
has been of paramount importance
initial in‑house health and safety induction 
training for all personnel joining is supported 
by external specialist trainers for occupation 
specific training during 2013 fire marshalling 
training was undertaken by selected staff 
at each site a number of staff were externally 
trained in display screen equipment 
regulations and manual handling
a voluntary health management 
programme was run for all staff in erfurt
the group is committed to the ongoing 
training and development of its personnel 
particular skills‑based training is provided 
to individuals when identified and seen as 
beneficial to the overall operation of the 
group the introduction of new technologies 
and new and efficient working methods has 
resulted in personnel being trained to both 
develop and hone their knowledge and skills 
a flexible work environment has meant that 
personnel are given the chance to work 
in different departments thereby helping 
them maximise their potential and sense 
of fulfilment 
during 2013 crystalox limited completed 
a multi module management development 
training programme for its managers 
the group believes that given the recent 
changes in production and headcount levels 
the difficult market conditions the continued 
period of uncertainty and the challenges 
faced by the managers there is a need for 
support and development this is to enable 
the managers to perform at the highest 
levels possible required to achieve the 
overall business objectives in addition 
to providing them with the opportunity 
for personal development and growth
in germany the group has been running 
an apprenticeship programme for a number 
of years currently there are eight young 
people in erfurt enrolled in technical and 
administrative jobs the intention of the 
programme was that after a three year 
period these apprentices would have the 
chance to become permanent members 
of staff for some of the apprentices the 
programme enables them to continue with 
their studies to obtain a degree in engineering 
during 2013 pv crystalox solar silicon gmbh 
has been selected for an “excellent training 
company” award from the local government 
health and safety
the group recognises its responsibilities 
under health and safety legislation in each 
country of operation to ensure so far as it 
is reasonably practicable the health safety 
and welfare of all its employees group 
policy is to take all reasonable precautions 
to prevent accidents and dangerous 
occurrences and for the creation of working 
conditions which safeguard employees 
the group attaches the greatest importance 
to health and safety considering this to be 
a management responsibility to this end 
the group will allocate the necessary 
resources and enlist the active support of 
all employees upon whom duties are also 
imposed by health and safety legislation 
the group regards the standards set by 
the various relevant statutory provisions 
as the minimum standards which must be 
achieved and endeavours to improve upon 
these where reasonably practicable
in the united kingdom health and safety 
management was supported by the 
appointment of health and safety 
representatives from key departments 
as well as the health and safety steering 
committee who met at monthly intervals 
throughout the year to monitor performance 
and promote a safe working environment 
within the business in erfurt five safety 
representatives are appointed onto the 
health and safety committee which met 
for four quarterly meetings in 2013
the total number of reported work related 
accidents in the united kingdom fell from 
000163 in 2012 to 000065 accidents per 
day worked in 2013 this equates to 
065 accidents per 1000 days worked
there were no riddor reporting of injuries 
diseases and dangerous occurrences 
regulations 1995 related incidences to report 
in the united kingdom in 2012 or 2013 the 
number of work related accidents in erfurt 
germany fell from four in 2012 to none in 2013
human rights
with regard to human rights commentary 
has not been included as it is not considered 
necessary for an understanding of the 
development performance or position 
of the group’s business 20 pv crystalox solar plc  annual report and accounts 2013
wwwpvcrystaloxcom
corporate responsibility continued
greenhouse gas ghg emissions
this is our first greenhouse gas “ghg” 
emissions report in line with uk mandatory 
reporting requirements as set out 
under the companies act 2006 strategic 
and directors’ reports regulations 2013 
the group’s emissions have been calculated 
based on the uk government’s environmental 
reporting guidance 2013 version emissions 
reported correspond with our financial year 
as a result of the changes to the group due 
to the restructuring and to operating in 
cash conservation mode we have decided 
to report on 2013 with no comparative figures 
and to report on our own emissions only 
we are reporting on our ongoing operations 
only so there are no amounts in respect of 
the polysilicon production facility at bitterfeld 
in germany which was sold halfway through 
the year 
we are reporting the direct emissions from 
combustion of fuel in pv crystalox solar 
facilities scope 1 and indirect emissions 
resulting from electricity purchased by 
pv crystalox solar scope 2 these emissions 
cover the operation of ingot production 
block production and head office activities 
in the uk the wafer production activities in 
germany and running our sales and 
logistics office in japan 
emissions are predominantly from gas 
and oil combustion and electricity use at 
our manufacturing facilities we have 
used conversion factors provided in the 
“uk government conversion factors for 
company reporting” for uk and japan 
emissions and have taken into account 
the local electricity mix for the conversion 
factor for our german operations
our community
we have been running local events in 
erfurt for several years to demonstrate the 
possibilities of solar electricity and again 
in 2013 we worked with the local power 
provider to carry out the annual solar 
car race programme with local students 
the feed‑in tariff which we receive from 
our 30 kw solar system mounted to the 
building in erfurt which feeds electricity 
directly into the local grid is used to 
finance these projects 
the group is an initiator and participant 
in the five year long project “solarvalley 
mitteldeutschland” this is a research and 
development cluster in the german states 
of thuringia sachsen‑anhalt and saxony 
dr hubert aulich the group’s former director 
of german operations is chairman of the 
cluster board of the project it involves 
35 companies five universities and nine 
research institutes working on the entire 
crystalline silicon value chain with the aim 
of reducing the cost of solar electricity 
to below that of conventional power and 
accelerating market introduction this 
is the largest worldwide pv cluster with 
98 projects and an overall €150 million 
budget over five years which is funded 50 
by the government and 50 by industry
pv crystalox solar greenhouse gas emissions
2013 
tonnes 
co
2 
equivalent
1
scope 1 
direct emissions from combustion of fuel  
in pv crystalox solar facilities 132
scope 2 
indirect emissions resulting from electricity purchased by pv 
crystalox solar 5679
scope 1 and scope 2 5811
intensity measurement
2
 
tonnes co
2
mw of wafer shipments 275
1  as this is our first year of reporting on mandatory ghg there is no prior year comparative
2  this is based on shipments of wafers during the year which includes sales of surplus inventory it should be noted that 
using the revenue figure from the financial statements would include sales of surplus polysilicon in addition to wafer 
shipments the management team will continue to monitor and review the appropriateness of the intensity ratio governance financial statements overview strategic report
governance
annual report and accounts 2013  pv crystalox solar plc 21
governance
corporate governance statement 22
directors 26
report of the nomination committee 28
directors’ remuneration report 29
report of the audit committee 42
directors’ report 44
statement of directors’ responsibilities 46 wwwpvcrystaloxcom
22 pv crystalox solar plc  annual report and accounts 2013
corporate governance statement
introduction from the chairman
dear shareholder
the board is mindful of its responsibilities 
to the company’s shareholders and key 
stakeholders to ensure the company has 
the right people systems and processes in 
place to manage risk and deliver the group’s 
agreed strategy as chairman i am 
responsible for ensuring that the board 
operates effectively with wellinformed 
directors asking the right questions and 
setting the right tone from the top
this corporate governance statement 
describes our approach to governance and 
highlights a number of the actions we have 
taken during the year
change in listing from premium to standard
at the general meeting on 11 september 
2013 100 of the shareholders who voted 
approved the move of the company’s listing 
from premium to standard listing on the 
official list and this move took place on 
10 october 2013 
the transfer enabled the company to 
undertake a return of cash in a tax efficient 
manner using a b and c share scheme and 
will also enable the company to implement 
any other transactions such as acquisitions 
or disposals which might be in the interests 
of the company in a shorter timescale and 
at lower expense
a standard listing requires the issuer 
to comply with the minimum regulatory 
requirements imposed by the eu that 
apply to all securities that are admitted 
to trading on eu regulated markets 
as an issuer with a standard listing 
the company will remain subject to the 
listing rules as applicable to a company 
whose equity shares have a standard listing 
the prospectus rules and the disclosure 
and transparency rules but it will not be 
required to comply with superequivalent 
provisions of the listing rules which apply 
to companies with a premium listing
board balance and independence
throughout the year the board had two 
nonexecutive directors a chairman who 
was independent on appointment and 
an independent nonexecutive director 
michael parker who is deemed to be 
independent in accordance with the 
code at the start of 2013 there were 
three executive directors but following 
the 2013 agm at which hubert aulich 
retired the number of executive directors 
reduced to two further details are set 
out on pages 26 to 27
peter finnegan the chief financial officer 
“cfo” informed the board in march 2014 
that he will retire from the group on 
31 may 2014 and accordingly will not stand 
for reelection at this year’s agm matthew 
wethey the group secretary will take over 
as cfo but will not join the board following 
the 2014 agm the board will thus comprise 
the chairman one independent nonexecutive 
director and one executive director this 
composition will be compliant with the code 
and the board believes given the current 
circumstances that this composition is the 
most appropriate for the time being 
compliance
as a standard listed company on the official 
list the company is fully compliant with 
applicable governance requirements 
the company has previously reported as 
a smaller company against the code on 
a “comply or explain” basis the company 
is compliant against the code except for 
those provisions relating to board and 
committee composition these exceptions 
are detailed on page 23
performance evaluation
we had originally intended to conduct an 
external board effectiveness review this 
year due to the reduced scale of operation 
and the cash conservation strategy however  
the board agreed to carry out an internal 
review i led this review supported by the 
group secretary the review found that the 
board is operating effectively 
the performance of the individual directors 
was evaluated and my performance was 
evaluated by the senior independent 
director and the chief executive officer 
the performance of the board its 
committees the individual directors 
and the chairman were all found to 
be effective further details are set 
out on page 24
john sleeman
chairman
19 march 2014 overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 23
compliance
as a company with a standard listing 
governance levels are lower than those 
that apply to premium listed companies 
the company is fully compliant with 
the governance requirements of a 
standard listing
a premium listed company is required to 
comply with the superequivalent provisions 
which are contained in the code throughout 
the year ended 31 december 2013 the group 
complied with all the provisions set out in 
the code except that those provisions relating 
to board and committee composition 
namely sections b12 b21 c31 and 
d21 the board believes that the current 
structure with a nonexecutive chairman 
who was independent on appointment one 
independent nonexecutive director and 
two executive directors is appropriate at 
present as a result the company was not 
compliant with
  section b12 which states that except for 
smaller companies at least half of the 
board excluding the chairman should 
comprise nonexecutive directors 
determined by the board to be independent 
a smaller company should have at least 
two independent nonexecutive directors 
  section b21 states that a majority 
of members of the nomination 
committee should be independent 
nonexecutive directors
  section c31 states that the board should 
establish an audit committee of at least 
three or in the case of smaller companies 
two independent nonexecutive directors 
in smaller companies the company 
chairman may be a member of but not 
chair the committee in addition to the 
independent nonexecutive directors 
provided he or she was considered 
independent on appointment as chairman 
the board should satisfy itself that at least 
one member of the audit committee has 
recent and relevant ﬁnancial experience 
  section d21 states that the board should 
establish a remuneration committee of 
at least three or in the case of smaller 
companies two independent nonexecutive 
directors in addition the company 
chairman may also be a member of but 
not chair the committee if he or she was 
considered independent on appointment 
as chairman 
board of directors
the board is primarily responsible for the 
success of the group by providing leadership 
within a framework of prudent and effective 
controls which enables risk to be assessed 
and managed the board sets the group’s 
strategic aims ensures that the necessary 
financial and human resources are in place 
for the group to meet its objectives and 
reviews management performance the 
board sets the group’s values and standards 
and ensures that its obligations to its 
shareholders and others are understood 
and met
matters reserved for the board
the board has a formal schedule of matters 
reserved to it for its decision this schedule is 
reviewed annually and includes approval of
  group objectives strategy and policies
  business planning
  substantial transactions contracts 
and commitments
  review of performance
  risk assessment
  dividends 
  appointments to the board and as 
group secretary and
  senior management appointments 
and succession plans
other specific responsibilities are delegated 
to board committees which operate within 
clearly defined terms of reference details 
of the responsibilities delegated to board 
committees are given on pages 28 to 46
board balance and independence
during the year the board consisted of 
two nonexecutive directors a chairman 
who was independent on appointment 
an independent nonexecutive director 
michael parker who is deemed to be 
independent in accordance with the code 
and the executive directors at the start of 
2013 there were three executive directors 
following the 2013 agm on 24 may 2013 
at which hubert aulich retired the number 
of executive directors reduced to two
the chairman is presumed under the code 
not to be independent the board considers 
michael parker to be independent and he is 
the recognised senior independent director 
who is available to shareholders if they 
have any relevant issues or concerns brief 
biographical details of all members of the 
board are set out on pages 26 and 27
the nonexecutive directors bring a wide 
range of commercial and financial experience 
and knowledge and are independent of 
management and any business or other 
relationship that could interfere with the 
exercise of their judgement this provides 
a balance whereby an individual or small 
group cannot dominate the board’s 
decision making
the nonexecutive directors entered into 
arrangements for initial three year periods 
and their appointments continue subject 
to reelection at each agm or six months’ 
notice in writing from either party the terms 
and conditions of appointment of the 
nonexecutive directors can be inspected 
at the company’s registered office and will 
be available for inspection at the annual 
general meeting john sleeman was 
appointed on 11 june 2007 and michael 
parker was appointed on 1 january 2010
the board has established a separate 
nomination committee and details of 
its responsibilities and activities are 
on page 28 wwwpvcrystaloxcom
24 pv crystalox solar plc  annual report and accounts 2013
corporate governance statement continued
as a result an internal evaluation was 
undertaken this year
the performance of individual directors 
was evaluated by the chairman and the 
senior independent director following the 
review process the chairman concluded that 
each director continues to make an effective 
contribution to the work of the board is well 
prepared and informed concerning items 
to be considered by the board has a good 
understanding of the group’s businesses 
and their commitment to the role 
remains strong
the senior independent director together 
with the chief executive officer evaluated 
the performance of the chairman and 
concluded that the chairman operated 
effectively in his role
as was highlighted above the board carried 
out an internal evaluation of its effectiveness 
by a process which involved a structured 
discussion at a board meeting in january 
2014 the process was led by the chairman 
with the assistance of the group secretary 
the discussion focused on the board’s roles 
and responsibilities the board’s culture 
and dynamics the board’s processes and 
the role of the chairman the review 
concluded that the board was operating 
in an effective manner
the audit nomination and remuneration 
committees carried out internal evaluations 
of their effectiveness at meetings in 
january 2014 and march 2014 the process 
for each review was similar to that used 
for the board’s effectiveness review the 
reviews concluded that each committee 
was operating in an effective manner 
relations with shareholders
the board values the views of its shareholders 
and recognises their interest in the 
group’s strategy and performance board 
membership and quality of management
the agm is used to communicate with 
investors and documents are sent to 
shareholders at least 20 working days 
before the meeting the chief executive 
makes a presentation there on the group’s 
progress the chairman chief executive 
chief financial officer and the chairmen 
of the audit committee and remuneration 
committee are available to answer relevant 
questions separate resolutions are proposed 
on each substantial issue so that they can 
be given proper consideration and there 
is a resolution to receive and consider the 
annual report and financial statements 
the group counts all proxy votes and will 
indicate the level of proxies lodged on each 
resolution after it has been dealt with by 
a show of hands
board meetings
the board meets at least six times per annum 
and at other times according to business 
requirements during 2013 there were 
twelve meetings including a meeting in 
june 2013 where the board met offsite to 
consider the group’s strategy and to review 
key business issues meetings are held in 
central london and at the group’s operating 
subsidiaries at abingdon in the 
united kingdom and at erfurt in germany 
when the board meets at the group’s 
operating subsidiaries the board will have 
a detailed presentation from the subsidiary 
directors at that location and an opportunity 
to review the operation and to meet local 
management during 2013 the number of 
board and committee meetings with 
individual attendances was as follows
board audit remuneration nomination
hubert aulich 66 11 11 22
iain dorrity 1212 22 22 22
peter finnegan 1212 22 22 22
michael parker 1212 22 22 22
john sleeman 1212 22 22 22
 nonexecutive directors
board support
all directors have access to advice and 
services from the group secretary the 
appointment and removal of the group 
secretary is a matter for the board as a 
whole the group secretary is responsible 
for advising the board on all governance 
matters ensuring board procedures are 
followed and applicable rules and regulations 
are complied with the directors are free to 
seek any further information they consider 
necessary and directors can obtain 
independent professional advice at the 
group’s expense 
information induction and 
professional development 
the chairman assisted by the group 
secretary is responsible for ensuring that 
the board receives appropriate and timely 
information on all relevant matters
on appointment to the board new directors 
receive background reading about the group 
and details of board procedures and other 
governance related matters in addition 
the directors participate in a comprehensive 
induction programme including site visits 
to the group’s operations and meetings 
with the executive directors and senior 
management across the group
the chairman regularly reviews and 
agrees with each director their training 
and development needs as part of the 
succession planning process directors 
receive ongoing training and updates on 
relevant issues as appropriate taking into 
account their individual qualifications and 
experience the group secretary helps 
directors undertake any other professional 
development they consider necessary to 
assist them in carrying out their duties
chairman and chief executive
the roles of chairman and chief executive 
officer are separated and their responsibilities 
are clearly established the chairman is 
responsible for the leadership and workings 
of the board and ensuring its effectiveness 
and the chief executive officer together 
with the executive directors are responsible 
for the implementation of strategy and 
policies and the daytoday decision 
making and administration
other significant commitments of the 
chairman john sleeman are set out in the 
directors section on page 26 the board is 
satisfied that these commitments do not 
restrict him from effectively carrying out 
his duties as chairman
performance evaluation
the directors believe that an effective board 
is vital to the success of the group and as 
a result undertake a thorough evaluation 
each year in order to assess how well the 
board its committees the directors and 
the chairman are performing the aim is 
to improve the effectiveness of the board 
its committees and ultimately the group’s 
performance the process is led by the 
chairman and is supported by the group 
secretary the board believes that a 
combination of external reviews every 
thirdfourth year with internal reviews 
in the other intervening years is the 
most appropriate method for evaluating 
effectiveness the board conducted an 
external evaluation for the 2008 annual 
report and had originally intended to 
carry out an external review for this annual 
report the board decided in view of the 
cash conservation measures being taken 
throughout the organisation that the external 
review would be postponed until the group 
enters a more normal trading environment  overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 25
the totals of proxy votes on each resolution 
including details of any votes withheld 
are announced at the meeting after each 
resolution has been dealt with on a show 
of hands and the full proxy voting results 
are announced through a regulatory news 
service and on the company’s website 
in the event of a close result as indicated 
by the proxies held by the chairman of the 
meeting the chairman would call a poll but 
this has not proved necessary at any of the 
agms to date the board believes that the 
immediacy of voting on a show of hands 
with the proxy votes immediately being 
announced rather than a laborious 
process of conducting a formal poll on 
every resolution is appreciated by the 
shareholders who attend the meeting
during the year there were two general 
meetings on 11 september 2013 to 
approve the transfer in listing and on 
19 november 2013 to approve the return 
of cash to shareholders before both of 
those meetings documents were sent 
to shareholders at least 15 working 
days before the meetings and at both 
meetings members of the board were 
available to answer relevant questions 
from shareholders
during the year the executive directors 
maintained a regular programme of visits 
and presentations to major institutional 
shareholders both in the united kingdom 
and overseas all directors receive copies 
of articles concerning the group and 
are updated by the group’s financial 
advisors on investors’ perceptions of 
pv crystalox solar
there were formal presentations following 
the preliminary and interim results and 
in addition the group released interim 
management statements in may and 
november 2013 
key announcements financial reports the 
presentations referred to above and other 
information about the group can be found on 
the group’s website at wwwpvcrystaloxcom
accountability
the board aims to present a balanced and 
understandable assessment of the group’s 
position and prospects in all reports and 
other price sensitive disclosures reports 
to regulators and information required to 
be presented by statute the responsibilities 
of the directors as regards the financial 
statements are described on page 46 
and that of the auditors on pages 48 to 50 
a statement on going concern appears 
on page 16
remuneration committee
the directors’ remuneration report and 
details of the activities of the remuneration 
committee are on pages 29 to 41 it sets 
out the group’s policy and the full details 
of all elements of the remuneration 
package of each individual director wwwpvcrystaloxcom
26 pv crystalox solar plc  annual report and accounts 2013
directors
an experienced board
the board of directors comprised four extremely experienced individuals
john sleeman graduated in physics from the university of durham 
and started his career at deloitte  touche in 1970 where he qualified 
as a chartered accountant before moving in 1975 to samuel montagu 
where he qualified as a chartered banker and held various corporate 
and project finance advisory roles becoming a director in 1989 
following its acquisition by hsbc he held directorships with 
a number of companies within the hsbc group and from 2000 
to 2003 was managing director head of international team 
corporate finance 
after that john was an independent director of osjc power machines 
from 2003 to 2008 the russian power generation equipment 
manufacturer 25 owned by siemens ag and an independent 
director of jsc open investments from 2005 to 2009 the russian 
real estate group 
he was appointed as a nonexecutive director and senior independent 
director at pv crystalox solar in may 2007 and became the chairman 
in may 2012 he is chairman of the nomination committee and a 
member of the audit committee and remuneration committee
since 2006 john has been a founding partner of sp angel 
corporate finance llp and in 2013 he was appointed a 
nonexecutive director of unitech corporate parks plc
iain dorrity has a phd in physical chemistry from exeter university 
he joined the company in 1986 and became responsible for sales 
and marketing in 1988 
he was a member of the mbo team that acquired the crystalox 
business in 1994 and was appointed to the boards of both crystalox 
limited and crystalox solar limited at that time subsequently 
following the merger of pv silicon gmbh and crystalox limited 
he became a member of the board of pv crystalox solar gmbh in 
2002 and a director of the company on its formation in december 2006
dr dorrity has over 25 years’ experience in crystal growth 
and semiconductor materials with an emphasis latterly on 
multicrystalline silicon technology prior to joining crystalox 
he spent eight years working in research and in industry with 
general electric company
john sleeman chairman dr iain dorrity chief executive officer overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 27
peter finnegan has a doctorate in corporate finance from henley 
business school an mba from manchester business school is a 
fellow of the chartered institute of management accountants and 
is a chartered global management accountant 
he has been involved in the group’s management since 1985 
when he became company secretary of crystalox limited 
whilst he was financial director of its holding company at 
that time elkem holdings ltd he was appointed to the 
board of crystalox solar limited in 1994 and was a director 
of crystalox limited from 1994 to 2009 
he was appointed as a director of the company on its formation 
in december 2006 dr finnegan has overall group responsibility 
for finance accounting planning financial control legal matters 
and investor relations prior to joining the group he held a 
number of senior managerial positions in large international 
manufacturing companies
mike parker received a bachelor’s degree in chemical engineering 
from the university of manchester and an mba from manchester 
business school he began his career with dow in 1968 during his 
career with the company he was based in the us uk switzerland 
and hong kong he became president and chief executive officer 
of the dow chemical company in midland michigan usa in 2000 
and a member of the company’s board of directors from 1995 to 2003 
he was appointed group chief executive of bnfl british nuclear 
fuels a uk government owned company in august 2003 at the 
end of june 2009 he finished this role following the successful 
dismantling and privatisation of the company
until november 2012 michael was chairman of liverpool’s 
economic development and regeneration company liverpool 
vision michael remains involved with liverpool as chair of the 
biocampus board for the royal liverpool university hospital 
and is on the alder hey children’s charity capital appeal board 
he became a trustee of the royal society for prevention of accidents 
rospa in 2009 currently vice chairman and chairman of the 
audit committee and a member of the remuneration committee 
michael joined pv crystalox solar board as nonexecutive director 
in 2010 he is the senior independent director as well as a member 
of the nomination committee chairman of the audit committee 
and chairman of the remuneration committee
in 2010 michael joined snclavalin canada as a nonexecutive 
director and is a member of the governance committee project 
review committee and chairman of the health  safety security 
and environment committee in 2011 michael was appointed as 
chairman of street league a national charity that utilises football 
to engage with inactive 16–25 year olds in 2012 he became a 
trustee of the energy institute and chairman of the strategy 
review group he is also a member of the manchester business 
school advisory board
michael was awarded a cbe in the new year honours 2009 for 
services to the energy industry
michael parker nonexecutive director dr peter finnegan chief financial officer wwwpvcrystaloxcom
28 pv crystalox solar plc  annual report and accounts 2013
message from the 
chairman of the 
nomination committee
dear shareholder
i have chaired the nomination committee since may 2012 
and have been a member since june 2007
i am pleased to present this report of the nomination 
committee which explains our role and principal activities 
during the year
we are mindful that the group is not compliant with certain 
provisions of the uk corporate governance code relating to 
board and committee composition we have considered the 
reduced size and complexity of the group and believe the 
current structure is appropriate at present and as a result 
we have not recommended recruiting a further nonexecutive 
director we will continue to keep the size and composition 
of the board under review in the future
hubert aulich retired as an executive director in may 2013 and 
following a recommendation from the nomination committee 
the board decided not to replace his position but to ask iain 
dorrity to assume dr aulich’s responsibilities on the board 
this decision partially reduced the imbalance between 
executive and independent nonexecutive directors 
we have a schedule of matters for annual consideration 
and specific responsibilities should there be a need to recruit 
a director or chairman or to make recommendations for 
appointments to the board’s committees or for the role of 
senior independent director full details of the nomination 
committee’s roles and responsibilities are contained in the 
terms of reference which are available to members of the 
public upon request and are available on the group’s website 
at wwwpvcrystaloxcom
further details are described more fully below
john sleeman
chairman of the nomination committee
19 march 2014
report of the nomination committee
membership
the nomination committee comprises both 
of the nonexecutive directors and is chaired 
by john sleeman the chief executive 
officer the chief financial officer other 
directors and external advisors may be 
invited to attend meetings as and when 
appropriate the group secretary acts as 
the secretary of the nomination committee
meetings
the nomination committee meets at least 
twice a year and reports to the board on its 
proceedings the nomination committee 
met twice during the year details of 
attendance are shown in the corporate 
governance statement on page 24
effectiveness
as detailed on page 24 an internal evaluation 
was conducted during the year which 
confirmed that the nomination committee 
was operating effectively 
role
the nomination committee has a number of 
responsibilities as set out in its terms of 
reference in summary the key roles are to
  review the board structure size and 
composition including the skills 
knowledge experience and diversity 
compared with its current position and 
make recommendations to the board 
with regard to any changes
  consider succession planning for directors 
and other senior executives and
  make recommendations to the 
board regarding the appointment 
reappointment and retirement 
of directors
activities of the nomination committee
set out below are the key matters considered 
by the nomination committee during the 
year and subsequently
structure size and composition of the board
the nomination committee regularly reviews 
the structure size and composition of the 
board compared to its current position 
the group’s operations are now reduced 
and less complex as a result of the cash 
conservation strategy and the disposal 
of bitterfeld during 2013 the nomination 
committee was notified of the retirement 
of hubert aulich in march 2013 and it was 
decided that his responsibilities for the 
german operating subsidiary would be 
delegated to the directors of that subsidiary 
and that his board responsibilities would 
be covered by iain dorrity the nomination 
committee carried out a further review in 
january 2014 and recommended that the 
structure size and composition of the 
board remained appropriate despite the 
group not being compliant with certain 
provisions of the code relating to board 
and committee composition
succession planning 
succession planning is a key area 
of discussion and the nomination 
committee reviewed the capability of 
the senior management and directors and 
considered the succession plans for the 
executive directors 
reelection of the directors
the nomination committee considered 
the effectiveness and commitment of each 
director standing for reelection at the 2014 
agm and having concluded that their 
performance continues to be effective 
recommends the reelection of each 
director to shareholders
diversity
the nomination committee noted the revised 
guidance provisions relating to the board’s 
policy on gender diversity but observed that 
there had not been any external recruitment 
at senior management or board level for 
several years and that there were no current 
plans for recruitment at a senior level 
during 2014 it noted that one female 
manager in japan had been promoted to 
senior manager in january 2014 it noted 
that the group had a nondiscriminatory 
recruitment policy however with the 
current recruitment plans the committee 
did not believe that it was appropriate to 
set measurable objectives on actively 
seeking gender diversity at this time
terms of reference
the committee carried out a review 
of the terms of reference and agreed 
to make changes consistent with the 
recommendations contained in the icsa 
guidance on t erms of reference nomination 
committee june 2013 the terms of 
reference of the nomination committee 
are available to members of the public 
upon request and are available on the 
group’s website at wwwpvcrystaloxcom 
  overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 29
annual statement by 
the chairman of the 
remuneration committee
dear shareholder
on behalf of the board i am pleased to present the remuneration 
report for the year ended 31 december 2013 which sets out 
the remuneration policy for the directors of pv crystalox solar 
and provides details of their remuneration in respect of the year 
ended 31 december 2013 the government has introduced new 
regulations which impact on the presentation and disclosure 
of directors’ remuneration and the layout of this report reflects 
those new regulations
the remuneration policy report set out on pages 30 to 35 
will be put to shareholders for approval in a binding vote at 
the agm on 22 may 2014 the annual report on remuneration 
set out on pages 36 to 41 which describes how the policy has 
been implemented in the year under review and how it will be 
implemented for the year ahead will be subject to an advisory 
vote at the agm
2013 key items considered
deferred share plan awards
the 2010 awards made under the executive directors’ 
deferred share plan vested in april 2013 and the remuneration 
committee approved the early vesting of hubert aulich’s 
2011 award in june 2013 under the good leaver provisions 
following his retirement
performance share plan awards
the group failed to achieve the minimum performance 
conditions in respect of the performance share plan awards 
made in 2011 for the performance period 1 january 2011 to 
31 december 2013 as a result the award will lapse in 2014
2014 remuneration
the remuneration committee is mindful of the provisions and 
recommendations of the code and associated guidance that a 
significant proportion of remuneration for executive directors 
should be structured so as to link rewards to corporate and 
individual performance and that it should be designed to 
promote the longterm success of the company 
during the 2012 and 2013 the executive directors’ remuneration 
consisted of base salary only with no annual bonus or longterm 
incentive in addition the base salaries of the executive directors 
have remained at the levels first agreed in july 2008 the 
remuneration committee reviewed the composition of the 
executive directors’ remuneration and has agreed to amend 
this for 2014 to better reflect the guidance as a result the 
following proposal for executive directors’ remuneration 
was proposed by the remuneration committee and agreed 
by the board
  the remuneration of peter finnegan will remain at the same 
level as in 2013 until his retirement at the end of may 2014
  the base salary of the chief executive officer is to be reduced 
by 25 from 1 january 2014
  an increase in the percentage of employer pension 
contributions from 6 to 8 to keep the absolute employer 
contribution the same 
  the reintroduction of an annual bonus plan for 2014 with 
performance conditions based on share price increases 
during the 2014 financial year and
  there will not be a longterm incentive award for the 
performance period from 1 january 2014 to 31 december 2016
the remuneration committee approved management’s proposals 
to increase salaries from 1 january 2014 for all of the group’s 
employees to reflect the relative increases in the cost of living 
in the uk germany and japan during the cash conservation 
period salaries had not increased in 2012 or 2013 
the remuneration committee approved an annual bonus scheme 
for certain group employees linking the value of their award 
to the company’s share price
due to the composition of the remuneration committee the board 
are responsible for determining the fees of the nonexecutive 
directors the board agreed to leave the fees at the same level 
as in 2013 the board noted that when john sleeman was 
appointed as chairman in 2012 his fees were 30 lower than 
those received by the previous chairman it was also noted that 
i did not receive additional fees when i took over the roles of 
senior independent director chairman of the audit committee 
and chairman of the remuneration committee in 2012
governance
as detailed on page 24 an internal evaluation was conducted 
during the year which confirmed that the remuneration committee 
was operating effectively in addition it carried out a review of 
the remuneration committee terms of reference and updated 
then in line with the icsa guidance issued in june 2013 the terms 
of reference of the remuneration committee are available to 
members of the public upon request and are available on the 
group’s website at wwwpvcrystaloxcom
the remuneration committee met twice during the year details 
of attendance are shown in the corporate governance statement 
on page 24
the remuneration committee looks forward to your support 
of the remuneration policy at the 2014 agm
michael parker
chairman of the remuneration committee
19 march 2014
directors’ remuneration report wwwpvcrystaloxcom
30 pv crystalox solar plc  annual report and accounts 2013
summary remuneration policy
the table below summarises the executive directors’ remuneration policy from the 2014 agm onwards
element of 
remuneration purpose and link to strategy operation maximum performance targets
base salary to provide competitive fixed remuneration
to attract retain and motivate executive management 
of the quality required to run the company successfully 
in order to deliver the business strategy
intended to reflect that paid to executive management 
of comparable companies
to reflect the market value of the individual his or her 
skills experience and performance
in deciding appropriate remuneration levels the 
remuneration committee considers the group as 
a whole and relies on objective research which gives 
uptodate information on a comparator group of listed 
companies of similar size and complexity 
base salaries are reviewed by the remuneration 
committee annually prior to the start of the salary year 
and on the occasion when an individual changes 
position or responsibility
the remuneration committee is guided by the general increase 
for the broader employee population but on occasions may need 
to recognise for example a change in the scale scope or 
responsibility of the role 
current salary levels are set out on page 36
individual and business performance is considered 
in determining base salary levels
 be n e fi t s 
inkind
to provide competitive benefitsinkind to ensure 
overall package is competitive
to attract retain and motivate executive management 
of the quality required to run the company successfully 
in order to deliver the business strategy
provision or a range of benefits including some  
or all of
  a company car or car allowance 
  private medical insurance
  income protection insurance and
  life assurance 
other benefits may be payable where appropriate
benefits may include those currently provided as disclosed  
on page 36 however the remuneration committee reserves the 
right to provide such level of benefits as it considers appropriate 
to support the ongoing business strategy
not performance related
annual bonus 
scheme
rewards annual achievement of performance 
targets in order to deliver the business strategy
compulsory deferral into the company’s shares 
provides a link to the creation of longterm 
shareholder value and also retention element
measures and targets are set annually and payout 
levels are determined by the remuneration committee 
after the year end based on performance in the 
financial year against those targets
half of each bonus will be payable in cash
the other half of each bonus will be deferred and 
payable in shares under the executive directors’ 
deferred share plan which will vest three years 
after the award date 
a bonus will not be payable unless the executive 
director is employed on the date of payment
the annual bonus is not pensionable and there 
are no claw back or withholding arrangements
maximum bonus only payable for achieving demanding targets 
a maximum bonus of 100 of base salary
set annually by the remuneration committee based on 
various performance metrics which will be determined 
by the remuneration committee measured over the 
relevant financial year
payout levels based on
  a threshold performance level the minimum level 
of performance that results in any payment of 20 
of maximum payout
  a mid performance level of 60 of maximum payout and
  a maximum performance level of 100 of maximum payout
directors’ remuneration report continued
remuneration policy
this report sets out the company’s 
policy on the remuneration of its executive 
and nonexecutive directors and will be 
proposed for approval by shareholders at 
the agm on 22 may 2014 it will take effect 
from the day following the agm and may 
operate for up to three years
policy overview 
the company’s remuneration policy is to 
provide executive remuneration packages 
that attract retain and motivate executive 
management of the quality required to run 
the company successfully without paying 
more than is necessary to deliver outstanding 
operational performance to deliver excellent 
financial performance and to enhance 
shareholder value to achieve this policy 
the packages must
  be competitive
  encourage a focus on longterm 
sustained performance
  be fair and transparent
  be consistent across the group and
  be aligned to shareholders’ interests
the performance measurement of the 
executive directors and key members of 
senior management and the determination 
of their annual remuneration packages are 
undertaken by the remuneration committee 
there are five elements of the current 
remuneration package for executive 
directors and senior management
  base annual salary
  benefitsinkind overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 31
summary remuneration policy
the table below summarises the executive directors’ remuneration policy from the 2014 agm onwards
element of 
remuneration purpose and link to strategy operation maximum performance targets
base salary to provide competitive fixed remuneration
to attract retain and motivate executive management 
of the quality required to run the company successfully 
in order to deliver the business strategy
intended to reflect that paid to executive management 
of comparable companies
to reflect the market value of the individual his or her 
skills experience and performance
in deciding appropriate remuneration levels the 
remuneration committee considers the group as 
a whole and relies on objective research which gives 
uptodate information on a comparator group of listed 
companies of similar size and complexity 
base salaries are reviewed by the remuneration 
committee annually prior to the start of the salary year 
and on the occasion when an individual changes 
position or responsibility
the remuneration committee is guided by the general increase 
for the broader employee population but on occasions may need 
to recognise for example a change in the scale scope or 
responsibility of the role 
current salary levels are set out on page 36
individual and business performance is considered 
in determining base salary levels
 be n e fi t s 
inkind
to provide competitive benefitsinkind to ensure 
overall package is competitive
to attract retain and motivate executive management 
of the quality required to run the company successfully 
in order to deliver the business strategy
provision or a range of benefits including some  
or all of
  a company car or car allowance 
  private medical insurance
  income protection insurance and
  life assurance 
other benefits may be payable where appropriate
benefits may include those currently provided as disclosed  
on page 36 however the remuneration committee reserves the 
right to provide such level of benefits as it considers appropriate 
to support the ongoing business strategy
not performance related
annual bonus 
scheme
rewards annual achievement of performance 
targets in order to deliver the business strategy
compulsory deferral into the company’s shares 
provides a link to the creation of longterm 
shareholder value and also retention element
measures and targets are set annually and payout 
levels are determined by the remuneration committee 
after the year end based on performance in the 
financial year against those targets
half of each bonus will be payable in cash
the other half of each bonus will be deferred and 
payable in shares under the executive directors’ 
deferred share plan which will vest three years 
after the award date 
a bonus will not be payable unless the executive 
director is employed on the date of payment
the annual bonus is not pensionable and there 
are no claw back or withholding arrangements
maximum bonus only payable for achieving demanding targets 
a maximum bonus of 100 of base salary
set annually by the remuneration committee based on 
various performance metrics which will be determined 
by the remuneration committee measured over the 
relevant financial year
payout levels based on
  a threshold performance level the minimum level 
of performance that results in any payment of 20 
of maximum payout
  a mid performance level of 60 of maximum payout and
  a maximum performance level of 100 of maximum payout
  annual bonus payments
  longterm incentives and
  pension arrangements
it should be noted that there will not 
be a long term incentive award in 2014
consideration of employment 
conditions elsewhere in the group
the remuneration committee takes into 
account the general pay and employment 
conditions of other employees of the group 
when determining executive directors’ 
remuneration for the relevant financial 
year this includes taking account of the 
levels of base salary increase for employees 
below executive level when reviewing 
executive base salaries and ensuring 
that the same principles apply in setting 
performance targets for executives’ 
incentives as for other employees 
of the group
consideration of shareholder views
the remuneration committee considers 
shareholder feedback received in relation 
to the agm each year at the agm this 
feedback plus any additional feedback 
received during any meetings from time 
to time is then considered as part of the 
company’s annual review of remuneration 
policy in addition the remuneration 
committee will seek to engage directly with 
major shareholders and their representative 
bodies should any material changes be 
made to the remuneration policy wwwpvcrystaloxcom
32 pv crystalox solar plc  annual report and accounts 2013
directors’ remuneration report continued
summary remuneration policy continued
element of 
remuneration purpose and link to strategy operation maximum performance targets
long term 
incentive 
– performance 
share plan 
“psp”
no award 
in 2014
rewards sustained performance against challenging 
longterm targets which are critical to the realisation 
of the business strategy
designed to attract retain and incentivise executive 
management over the longer term 
to provide an appropriate motivational framework and 
to align more closely the interests of the executive 
management with the performance of the business 
and the interests of shareholders
the current performance share plan was approved at 
the 2011 agm and is governed by the rules of the plan 
a summary of the key features is set out below
  conditional share awards or options over a fixed 
number of shares are granted based on the relevant 
percentage of a director’s base salary and the closing 
share price on the date of the award 
  vesting of awards will be subject to a three year 
performance period
  the awards will lapse if the participant leaves 
employment before vesting unless in specific 
“good leaver” circumstances
  award levels and performance conditions 
will be determined each year by the 
remuneration committee
  awards may attract dividend equivalents 
when the award vests at the discretion 
of the remuneration committee 
  it is anticipated that awards will be satisfied 
on vesting by the transfer of shares from the 
pv crystalox solar plc employee benefit trust
maximum value of awards made to participants in any financial 
year will not exceed 200 of their remuneration at the relevant 
date of award
if there are exceptional circumstances however that the 
remuneration committee considers justify making awards  
in excess of this limit participants may receive awards with  
a value of up to 400 of their remuneration at the relevant 
date of award
the last awards were made in 2011 to the chief executive 
officer of 125 and to other executive directors of 100  
of base salary
the performance targets are set annually by the remuneration 
committee based on achievement of growth in both total 
shareholder return and earnings per share over at least a  
three year performance period the payout would be based  
on a matrix with payouts from 0 to 100 of maximum
the remuneration committee may set different performance 
conditions for future awards having regard to the company’s 
strategic priorities shareholder expectations and market 
conditions prevailing at that time 
pension to provide retirement benefits to ensure overall 
package is competitive
to attract retain and motivate executive management 
of the quality required to run the company successfully 
in order to deliver the business strategy
defined contribution arrangements into the  
crystalox group personal pension scheme 
or such other pension plan suitable to the 
executive and his country of residence
current contribution levels 8 
employer contributions into a defined 
contribution scheme
pension provision may include those currently provided 
which are 8 however the remuneration committee 
reserves the right to provide such level of pension  
provision as it considers appropriate to support the 
ongoing business strategy
not performance related
notes
1 a description of how the company intends to implement the policy set out in this table for 2014 is set out in the annual report on remuneration on pages 36 to 41
2  the following differences exist between the company’s policy for the remuneration of executive directors as set out above and its approach to the payment of employees generally
 ›  a lower level of maximum annual bonus opportunity or zero bonus opportunity may apply to employees other than the executive directors and certain senior managers
 ›  benefits offered to other employees generally comprise provision of income protection insurance life assurance and healthcare where required for the role or to meet market norms
 ›  the majority of employees in the uk participate in local defined contribution pension arrangements employees in germany do not participate in company pension schemes
 › participation in the psp is limited to the executive directors and certain selected senior managers 
  in general these differences arise from the development of remuneration arrangements that are market competitive for the various categories of individuals and on arrangements in 
the countries where the group has employees uk germany and japan they also reflect the fact that in the case of the executive directors and senior managers a greater emphasis 
tends to be placed on performance related pay overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 33
element of 
remuneration purpose and link to strategy operation maximum performance targets
long term 
incentive 
– performance 
share plan 
“psp”
no award 
in 2014
rewards sustained performance against challenging 
longterm targets which are critical to the realisation 
of the business strategy
designed to attract retain and incentivise executive 
management over the longer term 
to provide an appropriate motivational framework and 
to align more closely the interests of the executive 
management with the performance of the business 
and the interests of shareholders
the current performance share plan was approved at 
the 2011 agm and is governed by the rules of the plan 
a summary of the key features is set out below
  conditional share awards or options over a fixed 
number of shares are granted based on the relevant 
percentage of a director’s base salary and the closing 
share price on the date of the award 
  vesting of awards will be subject to a three year 
performance period
  the awards will lapse if the participant leaves 
employment before vesting unless in specific 
“good leaver” circumstances
  award levels and performance conditions 
will be determined each year by the 
remuneration committee
  awards may attract dividend equivalents 
when the award vests at the discretion 
of the remuneration committee 
  it is anticipated that awards will be satisfied 
on vesting by the transfer of shares from the 
pv crystalox solar plc employee benefit trust
maximum value of awards made to participants in any financial 
year will not exceed 200 of their remuneration at the relevant 
date of award
if there are exceptional circumstances however that the 
remuneration committee considers justify making awards  
in excess of this limit participants may receive awards with  
a value of up to 400 of their remuneration at the relevant 
date of award
the last awards were made in 2011 to the chief executive 
officer of 125 and to other executive directors of 100  
of base salary
the performance targets are set annually by the remuneration 
committee based on achievement of growth in both total 
shareholder return and earnings per share over at least a  
three year performance period the payout would be based  
on a matrix with payouts from 0 to 100 of maximum
the remuneration committee may set different performance 
conditions for future awards having regard to the company’s 
strategic priorities shareholder expectations and market 
conditions prevailing at that time 
pension to provide retirement benefits to ensure overall 
package is competitive
to attract retain and motivate executive management 
of the quality required to run the company successfully 
in order to deliver the business strategy
defined contribution arrangements into the  
crystalox group personal pension scheme 
or such other pension plan suitable to the 
executive and his country of residence
current contribution levels 8 
employer contributions into a defined 
contribution scheme
pension provision may include those currently provided 
which are 8 however the remuneration committee 
reserves the right to provide such level of pension  
provision as it considers appropriate to support the 
ongoing business strategy
not performance related
notes
1 a description of how the company intends to implement the policy set out in this table for 2014 is set out in the annual report on remuneration on pages 36 to 41
2  the following differences exist between the company’s policy for the remuneration of executive directors as set out above and its approach to the payment of employees generally
 ›  a lower level of maximum annual bonus opportunity or zero bonus opportunity may apply to employees other than the executive directors and certain senior managers
 ›  benefits offered to other employees generally comprise provision of income protection insurance life assurance and healthcare where required for the role or to meet market norms
 ›  the majority of employees in the uk participate in local defined contribution pension arrangements employees in germany do not participate in company pension schemes
 › participation in the psp is limited to the executive directors and certain selected senior managers 
  in general these differences arise from the development of remuneration arrangements that are market competitive for the various categories of individuals and on arrangements in 
the countries where the group has employees uk germany and japan they also reflect the fact that in the case of the executive directors and senior managers a greater emphasis 
tends to be placed on performance related pay
3  the choice of the performance metrics applicable to the annual bonus scheme reflect the remuneration committee’s belief that any incentive compensation should be appropriately 
challenging and tied to both the delivery of profit growth and specific individual objectives
4  the total shareholder return “tsr” and earnings per share “eps” performance conditions applicable to the psp further details of which are provided on page 37 were selected by the 
remuneration committee on the basis that they reward the delivery of longterm returns to shareholders and the group’s financial growth and are consistent with the company’s objective 
of delivering superior levels of longterm value to shareholders the tsr performance condition is monitored on the remuneration committee’s behalf by westhouse securities whilst 
the group’s eps growth is derived from the audited financial statements
5  the remuneration committee operates share plans in accordance with their respective rules and in accordance with the listing rules and hmrc where relevant the remuneration 
committee consistent with market practice retains discretion over a number of areas relating to the operation and administration of certain plans 
6  for the avoidance of doubt in approving this directors’ remuneration policy authority is given to the company to honour any commitments entered into with current or former directors 
details of any payments to former directors will be set out in the annual report on remuneration as they arise  wwwpvcrystaloxcom
34 pv crystalox solar plc  annual report and accounts 2013
directors’ remuneration report continued
summary remuneration policy continued
illustrations of application of remuneration policy
the chart below illustrates how the composition of the chief executive officer’s remuneration package varies at different levels of 
performance under the 2014 policy both as a percentage of total remuneration opportunity and as a total value the figures are in 
sterling as this is the currency in which the director is paid 
notes
1  the value of benefits receivable in 2014 is taken to be the value of benefits received in 2013 as calculated under the directors’ remuneration table set out on page 38
2 the value of pension is as presented under the directors’ remuneration table
3 the ontarget level of bonus is taken to be 60 of the maximum bonus opportunity 100 of salary for executive directors
4 the remuneration committee has decided that there will not be an ltip scheme in operation for 2014
5 no share price appreciation has been assumed for the deferred bonus shares and psp awards
service contracts for executive directors
the service agreements of the executive directors are not fixed term and are terminable by either the company or the director on twelve 
months’ notice and make provision at the board’s discretion for early termination by way of payment of salary in lieu of twelve months’ 
notice incidental expenses may also be payable where appropriate in calculating the amount payable to a director on termination of 
employment the board would take into account the commercial interests of the company the remuneration committee reviews the 
contractual terms for new executive directors to ensure these reflect best practice 
the company does not have a minimum shareholding guideline for executive directors as the current executive directors 
all have shareholdings many times in excess of their annual salary which aligns the executives’ and shareholders’ interests 
provision detailed terms
notice period twelve months
termination payment up to twelve months’ salary
remuneration entitlements a bonus may be payable prorated where relevant and outstanding share awards may vest
change of control no executive director’s contract contains additional provisions in respect of change of control
executive directors’ contracts of service which include details of remuneration are available for inspection at the company’s registered 
address and will be available for inspection at the agm to be held on 22 may 2014 
approach to recruitment and promotions
the remuneration package for a new executive director – ie base salary benefits pension annual bonus and longterm incentive 
awards – would be set in accordance with the terms of the company’s prevailing approved remuneration policy at the time of appointment and 
would reflect the experience of the individual the remuneration committee may offer additional cash andor sharebased elements when 
it considers these to be in the best interests of the company and therefore shareholders to take account of remuneration relinquished 
when leaving the former employer and would where possible reflect the nature time horizons and performance requirements attaching 
to that remuneration shareholders will be informed of any such payments at the time of appointment
for an internal executive director appointment any variable pay element awarded in respect of the prior role may be allowed to pay out 
according to its terms in addition any other ongoing remuneration obligations existing prior to appointment may continue provided that 
they are put to shareholders for approval at the earliest opportunity
for external and internal appointments the remuneration committee may agree that the company will meet certain relocation  
andor incidental expenses as appropriate
bonus
base salary and pension
£’000
500
400
0
remuneration
ceo minimum
100
ceo on target
65
35
ceo maximum
53
47
100
200
300
£253000
£388000
£478000 overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 35
approach to leavers
at the discretion of the remuneration committee an annual bonus may be payable with respect to the period of the financial year served 
although it will be prorated for time and paid at the normal payout date any sharebased entitlements granted to an executive director 
under the company’s share plans will be determined based on the relevant plan rules the default treatment under the psp and the 
executive directors’ deferred share plan is that any outstanding awards lapse on cessation of employment
however in certain prescribed circumstances such as death ill health disability retirement or other circumstances at the discretion of the 
remuneration committee “good leaver” status may be applied for good leavers awards will normally vest on cessation subject to the 
satisfaction of the relevant performance conditions at that time and reduced prorata to reflect the proportion of the performance period 
actually served however the remuneration committee has discretion to determine that awards vest at a later date andor to disapply 
time prorating the default treatment for deferred bonus awards is that any outstanding awards lapse on cessation of employment 
however in certain “good leaver” circumstances awards will normally vest in full on the date of cessation unless the remuneration 
committee determines otherwise
the executive directors may accept outside appointments with prior board approval provided these opportunities do not negatively 
impact on the individual’s ability to perform his duties at the company whether any related fees are retained by the individual or are 
remitted to the company will be considered on a case by case basis
nonexecutive directors
element of 
remuneration purpose and link to strategy operation maximum performance targets
nonexecutive 
director fees
to reward individuals 
for fulfilling the 
relevant role
to reflect the time 
commitment and 
responsibilities of the 
roles of the individual 
nonexecutive directors
to attract retain and 
motivate individuals 
with the necessary 
experience and ability 
to make a substantial 
contribution to  
the group
cash fee paid
fees are reviewed on 
an annual basis and 
are set by the board
expenses incurred  
by the nonexecutive 
director in the course  
of his employment  
are reimbursed in 
accordance with the 
group’s expenses 
guidelines
fees are not subject  
to claw back or 
withholding 
arrangements
the board is guided by the 
general increase in the 
nonexecutive director 
market and for the broader 
employee population but 
on occasions may need to 
recognise for example 
an increase in the scale 
scope or responsibility  
of the role
current fee levels are  
set out on page 36
not applicable
nonexecutive directors  
do not participate in variable 
pay arrangements
nonexecutive directors are appointed pursuant to a letter of appointment for an initial period of three years unless terminated earlier by 
either party giving six month notice continuation of each appointment is contingent on satisfactory performance and reelection at 
an agm under the letter of appointment the director is subject to reelection every three years at the agm since 2011 the board agreed 
that each director would be subject to reelection at each agm nonexecutive directors are typically expected to serve two three year 
terms although the board may invite the nonexecutive director to serve an additional period
the nonexecutive directors’ letter of appointment are available for inspection at the company’s registered address and will be available 
for inspection at the agm to be held on 22 may 2014  wwwpvcrystaloxcom
36 pv crystalox solar plc  annual report and accounts 2013
directors’ remuneration report continued
annual report on remuneration
the information contained in this report is not subject to audit except where specified
this part of the report has been prepared in accordance with part 4 of the large and mediumsized companies and groups accounts and 
reports amendment regulations 2013 and rule 986r of the listing rules the annual report on report on remuneration will be put 
to an advisory shareholder vote at the agm to be held on 22 may 2014
the remuneration committee
the remuneration committee is chaired by michael parker and is to be made up of a minimum of two nonexecutive directors 
the remuneration committee comprises the committee chairman and john sleeman the chief executive officer other directors 
the head of human resources and external advisors may be invited to attend meetings as and when appropriate the group secretary 
acts as the secretary to the remuneration committee the terms of reference of the remuneration committee are available to members 
of the public upon request and are available on the group’s website at wwwpvcrystaloxcom the remuneration committee meets not 
less than twice a year and is required to report formally to the board on its proceedings details of attendance at each meeting are 
shown in the corporate governance report on page 24
external advisors
the remuneration committee is authorised by the board to obtain at the company’s expense outside legal or other professional advice 
on any matters within its terms of reference during the year the remuneration committee did not seek advice from external advisors
implementation of the remuneration policy for the year ended 31 december 2014
a summary of how the directors’ remuneration policy will be applied during the year ending 31 december 2014 is set out below
individual elements of remuneration
annual base salaries and fees of the directors
base salaries for the individual executive directors are reviewed annually by the remuneration committee and are set to reflect the market 
value of the individual his or her skills experience and performance and are intended to reflect that paid to executive management of 
comparable companies during 2012 and 2013 the base salaries of the executive directors have remained fixed in line with employees 
throughout the group for 2014 the remuneration committee has agreed to reduce chief executive officer’s base salary level by 25 
and to reintroduce an annual performance bonus so that a significant proportion of remuneration links rewards to corporate performance 
as a result of peter finnegan’s announcement to retire at the end of may 2014 the remuneration committee has agreed to leave peter finnegan’s 
base salary at its 2013 level without an annual performance bonus
the fees for the nonexecutive directors are reviewed on an annual basis and are set by the board to reflect the time commitment and 
responsibilities of the roles of the individual nonexecutive directors the nonexecutive directors do not participate in any annual bonus 
or longterm incentive plans nor do they receive benefitsinkind or pension contributions there was no change in the level of fees for 
the nonexecutive directors for 2014
payable in sterling
2014
annual rate
£
2013
annual rate
£
 
decrease
iain dorrity 225000 300000 25
peter finnegan
1
250000 250000 0
john sleeman 70000 70000 0
michael parker 40000 40000 0
payable in euros € €
hubert aulich
2
 until may 2013 na 294550
1  peter finnegan will be paid at the rate of £250000 until he leaves the board at the end of may 2014
2  during 2013 hubert aulich received the annual equivalent of base salary of £250000 payable in euros at the average exchange rate of €11782£100 until his retirement at the end of may 2013
benefitsinkind
executive directors receive either a company expensed motor vehicle commensurate with their seniority or a monthly car allowance 
all other benefitsinkind are available to all employees dependent upon local conditions in their country of employment overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 37
annual bonus payment
the structure of the annual bonus scheme is as approved by shareholders at the 2009 agm and as described in the remuneration policy 
the maximum award under the annual bonus will remain unchanged at 100 of salary threshold performance gives a payout of 20 
with 60 earned for ontarget performance half of any bonus will be paid in cash and half will be awarded in deferred shares under 
the pv crystalox solar executive directors deferred share plan which vest after a further three years 
in 2013
due to the difficult trading conditions and the difficulty in setting meaningful performance targets the remuneration committee 
recommended that no bonus scheme be offered to the executive directors 
in 2014
the remuneration committee has reintroduced an annual bonus in 2014 where the performance conditions are based upon the increase 
in the company’s share price during 2014
any awards of deferred shares under the executive directors’ deferred share plan will be satisfied on vesting by the transfer of shares 
from the existing pv crystalox solar plc employee benefit trust the trust has already acquired and will from time to time continue 
to acquire shares that will be available for award to employees including executive directors
longterm incentives
awards vesting in respect of the financial period
performance share plan
the first awards under the performance share plan “psp” covering the performance period from 1 january 2011 ending on 
31 december 2013 were made on 26 may 2011 following the approval of the scheme by shareholders at the agm on that date 
under the psp participants receive awards over shares with a value equal to a percentage of base salary at the date of the award as follows
participant
award 
of salary
chief executive officer 125
other executive directors 100
the payout under the scheme is based on achievement of performance targets for achieving growth in both tsr and eps in accordance 
with the following matrix
tsr growth 10 10–20 20–30 30–40 40
eps euro cents 
101 0 10 20 30 40 
101–109 10 20 30 40 50 
109–117 20 30 40 50 60 
117–125 30 40 50 60 70 
125–134 40 50 60 70 80 
134 50 60 70 80 100 
the extent to which the psp awards granted in may 2011 are to vest was determined by the remuneration committee 
actual range  vesting
eps euro cents 10 101
tsr growth 762 10
overall vesting 0
as a result the psp awards lapse in 2014
no awards were made under the psp in 2012 for performance in the period from 1 january 2012 to 31 december 2014 in 2013 for 
performance in the period from 1 january 2013 to 31 december 2015 or in 2014 for performance in the period from 1 january 2014 
to 31 december 2016
pension arrangements
the executive directors’ contracts of service set out their base salaries from which contributions can be made into the crystalox group 
personal pension scheme or such other pension plan suitable to the executive and his country of residence iain dorrity is entitled to 
a company contribution of 8 2013 6 of base salary and peter finnegan is entitled to a company contribution of 6 2013 6 of 
base salary paid directly to a defined contribution scheme the crystalox group personal pension scheme as part of the discussions 
on amending base salary it is intended that the absolute level of company pension contributions will remain the same as in 2013 which 
means that the percentage of base salary increases for iain dorrity it should be noted that company contributions for uk employees 
other than the executive directors are 8 provided that the employees contribute at least 4 wwwpvcrystaloxcom
38 pv crystalox solar plc  annual report and accounts 2013
directors’ remuneration report continued
annual report on remuneration continued
single total figure of remuneration audited
the table below reports the total remuneration receivable in respect of qualifying services by each director during the year
year ended 31 december 2013
feesbase
 salary
€
benefits
inkind
€
annual 
bonus
€
longterm
 incentives
€
pension 
related 
benefits
€
total 
€
hubert aulich until may 2013
1
130073 2934 — — 18848 151855
iain dorrity 353460 11842 — — 21208 386510
peter finnegan 294599 11721 — — 17673 323993
michael parker 47128 — — — — 47128
john sleeman 82474 — — — — 82474
total year ended 31 december 2013 907734 26497 — — 57729 991960
year ended 31 december 2012
maarten henderson until june 2012
1
61664 — — — — 61664
hubert aulich 308320 7475 — — 56753 372548
iain dorrity 369984 11814 — — 22199 403997
peter finnegan 308320 12326 — — 18499 339145
michael parker 49331 — — — — 49331
john sleeman 76052 — — — — 76052
total year ended 31 december 2012 1173671 31615 — — 97451 1302737
1 no amounts were payable for loss of office in respect of maarten henderson or hubert aulich
the figures in the single figure table are derived from the following
feesbase salary the amount of feessalary received in the period 
benefitsinkind the taxable value of benefits received in the period these are car car allowance private 
medical insurance income protection and life insurance 
annual bonus no annual bonus schemes were set during either year
longterm incentives the value of the longterm incentive schemes that vest in respect of the financial year
psp none have vested  
in 2012 or 2013
no executive director’s contract contains additional provisions in respect of change of control
pension related benefits this includes the company’s contributions to the defined contribution pension scheme and in the 
case of hubert aulich the change in transfer value of increase in accrued benefits less directors’ 
contributions in relation to the defined benefits scheme
additional information on directors’ interests audited
details of the executive directors’ interests in outstanding share awards under the executive directors’ deferred share plan “eddsp” 
and the psp are set out below
deferred share awards as at 31 december 2013
the outstanding share grants relate to deferred shares issued under the eddsp  under the rules of this plan the number of shares is 
calculated by reference to 50 of a participant’s gross bonus for a particular financial year divided by the average of the middle market 
quotations on the five consecutive dealing days immediately following the date on which the results are announced 
shares 
held at 
1 january 
2013
shares 
awarded 
during 
2013
shares 
vested 
during 
2013
number of 
award 
shares at 
31 december 
2013
normal 
vesting date
share price 
at grant 
p
market price 
at vesting 
p
monetary 
value of 
vested award 
£
hubert aulich
1
19108 — 19108 — 250313 4845 1050 2006
112007 — 112007 — 240314 5580 1125 12601
iain dorrity 22929 — 22929 — 250313 4845 1050 2407
134409 — — 134409 240314 5580 — —
peter finnegan 19108 — 19108 — 250313 4845 1050 2006
112007 — — 112007 240314 5580 — —
1  the remuneration committee used its discretion to allow the early exercise of the award granted to hubert aulich on 24 march 2011 under the good leaver provisions following his 
retirement in may 2013 overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 39
deferred shares awarded due to 2012 performance
no bonus is payable in relation to 2012 performance as no bonus scheme was in operation accordingly no awards of deferred shares 
were made 
deferred shares awarded due to 2013 performance
no bonus is payable in relation to 2013 performance as no bonus scheme was in operation accordingly no awards of deferred shares 
are to be made 
performance share plan
awards made under the performance share plan which remain outstanding at 31 december 2013 are outlined below
psp share 
options 
held at 
1 january 
2013
award 
date
market 
price per 
share at 
award date
 p
normal 
vesting date
psp 
shares
lapsed 
during year
maximum 
psp 
share options 
held at 
31 december 
2013
maximum 
value based 
on share 
price of 
145p at 
31 december 
2013
£
hubert aulich 515464 260511 4850 210314 — 515464 74742
iain dorrity 773196 260511 4850 210314 — 773196 112113
peter finnegan 515464 260511 4850 210314 — 515464 74742
it should be noted that the performance conditions for these awards as described on pages 32 and 33 were not achieved and these 
awards will lapse in 2014 
directors’ pension audited
contributions
to defined
contribution
scheme
€
total
2013
€
hubert aulich — —
iain dorrity 21208 21208
peter finnegan 17673 17673
michael parker — —
john sleeman — —
38881 38881
increases in pension benefits as at 31 december 2013 
accrued pension
transfer value 
of accrued benefits
change in
 transfer
 value 
pension 
payments 
in the year
change 
in transfer 
value of
accrued
 benefits 
plus pension 
payments 
in the year
2013 
€
2012 
€
2013 
€
2012 
€
2013 
€
2013 
€
2013 
€
hubert aulich 60000 60000 943611 959763 16152 35000 18848
hubert aulich’s contributions in the financial year were €nil 2012 €nil 
payments to the former executive director of the german operations – hubert aulich audited
following his retirement from the board on 23 may 2013 hubert aulich started to receive payments from his pension plan he received 
€35000 for the period from 1 june 2013 to 31 december 2013
the remuneration committee exercised its discretion to allow the early exercise of the executive director deferred share award granted 
to hubert aulich on 24 march 2011 under the good leaver provisions following his retirement in may 2013 this award was over 112007 
shares the market price at vesting was 1125 pence with a monetary value of £12601
remuneration policy for nonexecutive directors audited
the nonexecutive directors have specific terms of engagement and their remuneration is determined by the board based on independent 
surveys of fees paid to nonexecutive directors of similar companies nonexecutive directors are not eligible to join the company’s 
share schemes or pension schemes wwwpvcrystaloxcom
40 pv crystalox solar plc  annual report and accounts 2013
directors’ remuneration report continued
annual report on remuneration continued
directors’ interests in shares of the company audited
the interests in the ordinary share capital of the company as at 31 december 2013 of those directors and their connected persons 
who were in office during the year are detailed below 
shares options
shares 
owned 
outright
unvested 
and subject 
to holding 
period 
eddsp
unvested and 
subject to 
performance 
conditions 
psp
total 
interests 
held
hubert aulich 4374837 — 515464 4890301
iain dorrity 16964143 134409 773196 17871748
peter finnegan 1035007 112007 515464 1662478
michael parker — — — —
john sleeman — — — —
the closing midmarket price of a pv crystalox solar plc share on 31 december 2013 was 1450 pence and the price range during 
the year was 1000 pence to 1850 pence
between 1 january 2014 and 28 february 2014 the latest date for which it was practical to obtain the information there were no changes 
to the beneficial interest of the directors in the ordinary shares of the company 
statement of voting at last agm
the company remains committed to ongoing shareholder dialogue and takes an active interest in voting outcomes the following table 
sets out actual voting in respect of the resolution to approve the directors’ remuneration report at the company’s annual general meeting 
on 23 may 2013
 
for
no of votes
for
 of vote
against
no of votes
against
 of vote
withheld
no of votes
resolution 2  
to receive and approve the 2012 directors’ remuneration report 202517383 8831 26816880 1169 104460 
shareholder return
performance graph unaudited
the graph below shows the tsr performance from 1 january 2009 to 31 december 2013 this is compared against the tsr performance of 
the ftse 250 index the group was a member of the ftse 250 index between september 2007 and march 2010 the graph is based upon 
£100 being invested in the shares of pv crystalox solar plc on 1 january 2009 if all dividends had been reinvested and the comparative 
figures for the ftse 250 index again assuming that dividends were reinvested the data has been sourced from thomson datastream
 
pv crystalox solar plc
ftse 250
300
250
200
0
2012 2009 2010 2011 2013
50
100
150
value £ overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 41
remuneration for the chief executive over last five years
the table below shows the single figure remuneration for the chief executive during each of the past five financial years the total 
remuneration figure includes the annual bonus and ltip awards which vested based on performance in those years the annual bonus 
and ltip percentages show the payout for each year as a percentage of the maximum
2009 2010 2011 2012 2013
total remuneration € 388927 554934 376915 403997 386510
annual bonus  64 50 0 — —
ltip vesting  — — — — —
notes
1 iain dorrity the chief executive is paid in sterling but disclosure in euros has contributed to the volatility of the results above
2 there were no annual bonus awards in respect of the financial years 2012 and 2013
3 there were no ltip awards in respect of the financial years 2009 2010 2011 or 2012
percentage change in the remuneration of the chief executive
the table below sets out the increase in the salary benefits and bonus of the chief executive paid in sterling and that of the pv crystalox group 
management population this population has been selected for this comparison because it is considered to be the most relevant as these 
countries have the group’s largest concentration of employees with a similarly structured remuneration package 
chief 
executive
group 
management 
population
percentage 
change 
2013 v 2012
percentage 
change 
2013 v 2012
salary 0 0
benefits 0 0
bonus 0 0
relative importance of spend of pay
the table below shows a comparison between overall expenditure on pay and dividends paid to shareholders for 2013 and 2012
2013
€’000
2012
€’000
percentage
 change
overall expenditure on pay
1
7472 20165 629
dividend paid in the year
2
36285 — na
1 overall expenditure on pay is total staff costs for continuing and discontinued operations per note 4 in the notes to the consolidated financial statements
2 dividend here is the return of cash to all shareholders
this report contains the information required by the companies act 2006 and the relevant parts of the listing rules of the united kingdom 
listing authority and the united kingdom corporate governance code
the information contained in this report is not subject to audit except where specified
in accordance with the requirements of the companies act 2006 a resolution to approve this report will be proposed at the agm 
to be held on 22 may 2014
michael parker
chairman of the remuneration committee
19 march 2014 wwwpvcrystaloxcom
42 pv crystalox solar plc  annual report and accounts 2013
report of the audit committee
the responsibilities and work carried out 
by the audit committee in the year under 
review are set out in the following report
composition and governance
the audit committee of the board is chaired 
by michael parker and is to be made up of a 
minimum of two members where a majority 
of the members shall be nonexecutive 
directors at least one of whom shall have 
recent and relevant financial experience 
the audit committee chairman shall be 
an independent nonexecutive director 
during the year the audit committee was 
made up of two members the independent 
nonexecutive director michael parker and 
john sleeman the chairman of the board 
who was considered to be independent on 
appointment john sleeman is a chartered 
accountant and a chartered banker who 
since 2006 has been a founding partner 
of sp angel corporate finance llp 
the board considers john sleeman has 
recent and relevant financial experience 
michael parker a former ceo of both 
the dow chemical company and bnfl 
brings many years of international 
commercial experience to the audit 
committee the board believes that this 
combination of professional experience 
is appropriate to fulfil the duties of the 
audit committee
the chief financial officer and the external 
auditor are invited to attend audit committee 
meetings on a regular basis and other 
members may be invited to attend all or 
part of any meeting as and when appropriate 
the group secretary acts as the secretary 
of the audit committee the audit committee 
meets not less than twice a year and is 
required to report formally to the board 
on its proceedings
the primary role of the audit committee 
which reports its findings to the board 
is to ensure the integrity of the financial 
reporting and audit process and the 
maintenance of sound internal control 
and risk management systems it is 
responsible for monitoring and reviewing
  the integrity of the financial statements 
and formal announcements relating to 
the group’s financial performance
  the group’s internal financial controls 
and internal control and risk 
management systems
  the requirement for an internal 
audit function
  the content of the annual report and advise 
the board on whether taken as a whole 
it is fair balanced and understandable 
and provides the information necessary 
for shareholders to assess the company’s 
group’s performance business model 
and strategy
  the group’s arrangements for 
whistleblowing detecting fraud 
and preventing bribery
  the external auditors’ independence 
and objectivity and the effectiveness 
of the audit process and
  making recommendations to the board 
on the appointment or reappointment 
of the group’s external auditors
the terms of reference of the audit committee 
are available to members of the public 
upon request and are available on the 
group’s website at wwwpvcrystaloxcom
external auditors
nonaudit services
the group’s external auditors are 
pricewaterhousecoopers llp “pwc” and 
the audit committee operates a policy to 
safeguard the independence and objectivity 
of the external auditors this policy requires 
approval of nonaudit services provided by 
the external auditors in advance with the 
requirement that on an annual basis the 
total fees for nonaudit services do not exceed 
the total annual fees for audit services 
sets out certain disclosure requirements 
by the external auditors to the audit 
committee places restrictions on the 
employment of the external auditors’ 
former employees and partner rotation 
during the year the audit committee 
reviewed the processes that the external 
auditors have in place to safeguard their 
independence and received a letter from 
them confirming that in their opinion they 
remained independent
a breakdown of the fees paid to the external 
auditors in respect of audit and nonaudit 
related work is included in note 5 in the notes 
to the consolidated financial statements
the code has recommended that companies 
in the ftse 350 index put their external 
audit contract out to tender at least every 
ten years the audit committee has 
considered this recommendation and is 
mindful that the company has not been 
a member of the ftse 350 index since 
march 2010 and is not required to comply 
with this recommendation in addition pwc 
were appointed with effect from the 2011 
agm following a tender process during 
november 2010 the audit committee has 
provided the board with its recommendation 
to the shareholders to reappoint pwc 
as external auditors for the year ending 
31 december 2014 this will continue 
to be assessed on an annual basis
the performance and effectiveness of the 
external auditors was formally reviewed by 
the committee taking into account the views 
of directors and senior management on 
such matters as independence objectivity 
proficiency resourcing and audit strategy 
and planning the committee concluded 
that the performance of the external auditors 
remained satisfactory following the review 
the performance of the external auditors 
will continue to be reviewed annually
work undertaken during the year
the audit committee met twice during 
the year details of attendance are shown 
in the corporate governance statement 
on page 24
during the year the main items considered 
were
  discussions with the auditors on the audit 
approach and strategy the audit process 
key issues arising out of the audit and 
discussions on the audit report
  approval of the audit fees and the 
auditors’ letter of engagement
  approval of nonaudit work to be 
undertaken by the auditors
  considering the independence and 
objectivity of the external auditors
  reviewing the internal controls and 
risk management systems in operation 
within the group
  consideration of the requirement for the 
group to have an internal audit function
  detailed reviews of the group’s 
preliminary announcement annual 
report interim reports and interim 
management statements
  the audit committee effectiveness review 
  a review of the effectiveness of the 
external auditors and
  a review of the terms of reference of the 
audit committee
financial reporting
the primary role of the audit committee in 
relation to ﬁnancial reporting is to review 
with both management and the external 
auditors and report to the board where 
requested or required the appropriateness 
of the halfyear and annual ﬁnancial 
statements concentrating on amongst 
other matters
  the quality and acceptability of 
accounting policies and practices
  the clarity of the disclosures and 
compliance with ﬁnancial reporting 
standards and relevant ﬁnancial and 
governance reporting requirements
  material areas in which signiﬁcant 
judgements have been applied or 
there has been discussion with the 
external auditors
  whether the annual report taken as a 
whole is fair  balanced and understandable 
and provides the information necessary 
for shareholders to assess the company’s 
performance business model and 
strategy and
  any correspondence from regulators 
in relation to our ﬁnancial reporting overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 43
to aid the review the audit committee 
considers reports from the chief financial 
officer and group financial controller and 
also reports from the external auditors on the 
outcomes of their halfyear review and annual 
audit the audit committee supports pwc in 
displaying the necessary independence and 
objectivity its role requires
the primary areas of judgement considered 
by the audit committee in relation to the 
2013 ﬁnancial statements and how these 
have been addressed are listed below 
in concluding that the below list represented 
the primary areas of judgement the 
audit committee considered a report 
by management which referenced both 
quantitative and qualitative judgement 
factors across each signiﬁcant account 
balance assessing the impact on the 
user of the ﬁnancial statements
these are also areas of higher audit risk 
and accordingly pwc reported to the audit 
committee on and the audit committee 
discussed these judgements 
going concern 
management has prepared a paper setting 
out the going concern position this included 
a cash flow forecast for the group illustrating 
the current cash position for each group 
company and how management are 
comfortable that the group will have sufficient 
liquidity through at least the twelve month 
period following the signing of the accounts 
the audit committee discussed that paper 
challenging the assumptions behind the 
plan and the sensitivities which could 
negatively impact trading further details 
on the assumptions within the going concern 
review are contained in the financial review 
the audit committee was satisfied that 
the going concern basis of preparation 
continues to be appropriate
onerous contract provision
the group continues to have longterm 
contracts for the supply of polysilicon where 
market prices for polysilicon are now 
significantly below the prices agreed in the 
original contracts the financial statements 
include an onerous contract provision “ocp” 
which provided for the anticipated losses 
under the contract taking into account the 
terms of the contracts the current state of 
negotiations with the suppliers and market 
conditions further details on the assumptions 
within the ocp review are contained in the 
financial review a paper was presented 
by management to the audit committee 
setting out the details of the ocp the audit 
committee assessed the judgements and 
was satisfied that the resultant provision 
has been calculated on a reasonable basis 
and reflects uptodate information available 
at this time including assumptions as to 
the quantity of polysilicon that is expected 
to be used in wafer production and the 
quantity that is expected to be sold as excess
investment in subsidiary undertakings
in the pv crystalox solar plc parent company 
balance sheet are investments in subsidiaries 
which are greater than the consolidated net 
assets of those subsidiaries which indicates 
potential impairment management has 
prepared a paper demonstrating that there 
is sufficient expected additional value to 
support the carrying value of investments 
of £616 million the audit committee 
has reviewed the paper discussed and 
challenged the assumptions and is satisfied 
with management’s judgement that the 
additional value will be realised
internal controls and risk 
management systems 
the board has overall responsibility for the 
group’s system of internal control and risk 
management systems and for reviewing its 
effectiveness the board delegates to 
executive management the responsibility 
for designing operating and monitoring 
both the systems and the maintenance 
of effective internal control in each of the 
group’s operating subsidiaries the internal 
controls and risk management systems are 
designed to meet the particular needs of 
the group and the risks to which it is exposed 
and are designed to manage rather than 
eliminate risk accordingly they can provide 
only reasonable and not absolute assurance 
against material misstatement losses 
fraud or breaches of laws or regulations 
executive management is responsible 
for establishing and maintaining adequate 
internal control and risk management 
systems relating to the financial reporting 
process and the group’s process for the 
preparation of consolidated accounts 
the systems and controls in place include 
policies and procedures that relate to the 
maintenance of records that accurately 
and fairly reflect transactions and accurately 
record and control the group’s assets 
provide reasonable assurance that 
transactions are recorded as necessary 
to permit the preparation of financial 
statements in accordance with international 
financial reporting standards “ifrs” 
require representatives of the operating 
subsidiaries to confirm that their reported 
information gives a true and fair view of 
the state of affairs of the subsidiary and 
the results for the period and review 
and reconcile reported results
the key procedures which exist to provide 
effective internal controls and risk 
management systems are as follows
  clear limits of authority
  a comprehensive system for consolidating 
financial results from group companies 
and reporting these financial results to 
the board
  annual revenue cash flow and capital 
forecasts reviewed regularly during the 
year monthly monitoring of management 
accounts and capital expenditure reported 
to the board and monthly comparisons 
with forecasts
  financial controls and procedures
  clear guidelines for the authorisation 
of significant transactions including 
capital expenditure and disposals under 
defined levels of authority
  regular meetings of the executive directors
  an audit committee which approves 
audit plans and published financial 
information and reviews reports from 
external auditors arising from the audit 
and deals with significant control 
matters raised
  regular board meetings to monitor 
continuously any areas of concern
  annual review of risks and internal 
controls and
  annual review of compliance with 
the code
the board has reviewed the operation 
and effectiveness of the group’s system 
of internal control including financial 
operational and compliance controls and 
risk management systems which were 
in place during the financial year ended 
31 december 2013 and the period up 
to the date of approval of the financial 
statements the group secretary who 
is a chartered accountant led the review 
the review was summarised into a report 
which was discussed by the audit committee 
and the board in march 2014
the board confirmed that no significant 
weaknesses were identified in relation 
to the review conducted during the year 
the board confirms that the ongoing process 
for identifying evaluating and managing 
the significant risks faced by the group is 
regularly reviewed by the board in accordance 
with the turnbull guidance on internal control
the board has considered the need for 
an internal audit function but has decided 
that the size of the group does not justify 
it at present the board will keep the 
decision under annual review
michael parker
chairman of the audit committee
19 march 2014 wwwpvcrystaloxcom
44 pv crystalox solar plc  annual report and accounts 2013
directors’ report
the directors are pleased to present their 
report together with the consolidated 
audited financial statements of the group 
for the year ended 31 december 2013
results for the year
the consolidated statement of 
comprehensive income for the year 
ended 31 december 2013 is shown 
on page 51 the consolidated statement 
of changes in equity for the year is shown 
on page 53 and segmental information is 
shown in note 8 in the notes to the 
consolidated financial statements
dividends paid and proposed 
the directors have not recommended 
a final dividend in respect of the current 
financial year and no interim dividend was 
paid during 2013 a return of cash to 
shareholders using a b and c share 
scheme which allowed shareholders the 
option to receive either a capital or income 
return took place in december 2013 at 
725 pence per share no dividends were 
paid in respect of 2012
strategic report
the group is required by the companies 
act 2006 to set out the development 
and performance of the business of the 
group during the financial year ended 
31 december 2013 and of the position 
of the group at the end of the year and 
a description of the principal risks 
and uncertainties facing the group 
the information concerning the strategic 
report can be found on pages 3 to 20 
corporate governance statement
as required by the disclosure and 
transparency rules a corporate governance 
statement has been made this is included 
separately on pages 22 to 25
greenhouse gas reporting
the directors are required to set out in this 
report the annual quantity of emissions in 
tonnes of carbon dioxide equivalent from 
activities for which the group is responsible 
including the combustion of fuel and the 
operation of any facility the report must 
state the annual quantity of emissions in 
tonnes of carbon dioxide equivalent resulting 
from the purchase of electricity heat 
steam or cooling by the company for its 
own use this report is shown on page 20
future developments  
for the businessoutlook
the board’s assessment and evaluation 
of future development and the outlook 
for the business is discussed in the 
operational review which can be found 
on pages 12 to 13
environmental policy
the environmental policy is discussed in the corporate responsibility statement which 
can be found on pages 17 to 20
directors
the directors who served during the year to 31 december 2013 are
dr hubert aulich until 23 may 2013 executive director german operations
dr iain dorrity chief executive officer and executive director
dr peter finnegan chief financial officer and executive director
michael parker senior independent director
member of the nomination committee
chairman of the remuneration committee
chairman of the audit committee
john sleeman chairman 
chairman of the nomination committee 
member of the remuneration committee
member of the audit committee
 nonexecutive directors
there have been no changes since the year end biographical details of the directors are 
set out on page 26 and 27 
retirement and reelection of directors 
the company’s articles of association require all directors to seek reelection by shareholders 
at least once every three years in addition any directors appointed by the board must 
stand for reelection at the first agm following his or her appointment any nonexecutive 
directors who have served for more than nine years are subject to annual reelection
the board of directors believe that the annual reelection of directors in line with the 
united kingdom corporate governance code september 2012 the “code” is in the 
best interests of the company as a result all current directors have stood for annual 
reelection since the 2011 agm accordingly at the 2014 agm all directors will retire and 
being eligible iain dorrity michael parker and john sleeman will offer themselves for 
reelection peter finnegan has announced his intention to retire at the end of may 2014 
and is not standing for reelection
directors’ interests and remuneration
the remuneration report which includes details of service agreements and the directors’ 
interests in pv crystalox solar plc shares is set out on pages 29 to 41
beneficial interests in significant contracts 
none of the directors has a material interest in any contract of significance to which 
the group or any of its subsidiaries were party during the year
substantial shareholders
as at 28 february 2014 the group had been notified or is aware of the following 
shareholdings amounting to 3 or more of the issued ordinary share capital of the company
number of
ordinary
shares
 of issued
ordinary
shares
schroder investment management limited 30219772 1885
dr iain dorrity 16964962 1058
barry garrard 16108323 1005
stuart oldham 10276442 641
glg partners 9621909 600
td direct investing 5548249 346
barclays wealth 5545038 346
graham young 5398888 337 overview strategic report governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 45
directors’ indemnity and insurance
as at the date of this report and throughout 
the period under review the company has 
provided to all the directors an indemnity in 
accordance with the articles of association 
to the extent permitted by the companies 
act 2006 in respect of liabilities incurred 
as a result of their office and the company 
has taken out an insurance policy in respect 
of those liabilities this indemnity is a 
qualifying third party indemnity provision 
for the purposes of sections 232 to 234 
of the companies act 2006 neither the 
indemnity nor insurance provides cover 
in the event that the director is proved 
to have acted dishonestly or fraudulently
share capital 
the authorised share capital and allotted 
called up and fully paid share capital of the 
company is shown in note 28 the company 
carried out a share consolidation of five new 
ordinary shares for 13 old ordinary shares 
in november 2013 as at the date of this 
report 1603 million ordinary shares of 
52 pence each were allotted called up 
and fully paid with an aggregate nominal 
value of €123 million
the company has a single class of share 
capital which are ordinary shares of 
52 pence each and full details of rights 
accorded to the holders of these ordinary 
shares are set out in the articles of 
association holders of ordinary shares 
have the rights accorded to them under 
united kingdom company law including 
the right to receive the company’s annual 
report and accounts attend and speak 
at general meetings appoint proxies 
and exercise voting rights
the company operates an employee benefit 
trust to hold shares pending employees 
becoming entitled to them under the 
company’s employee share plans the trust 
has an independent trustee which waives 
its rights to dividends on the shareholding 
however it did participate in the return of 
cash details of which are set out in note 29 
details of employee share schemes and 
shares held by the pv crystalox solar plc 
employee benefit trust are set out in note 29
in respect of the company’s share capital 
there are no restrictions on the transfer 
of shares no limitations are placed on 
the holding of shares and prior approval 
is not required from the company or from 
other holders of shares for a transfer
subject to the provisions of the companies 
act 2006 and of the articles of association 
the company may by ordinary resolution 
declare dividends to be paid to members 
according to their respective rights and 
interests in the profits of the company 
however no dividend shall exceed the 
amount recommended by the board
the board may declare and pay such interim 
dividends as appears to the board to be 
justified by the profits of the company 
available for distribution all dividends shall 
be apportioned and paid prorata according 
to the amount paid up on the shares
the company was given authority at the 
2013 agm to allot further shares up to 
a maximum of £2778169 which was 
approximately 33 of the issued share 
capital on 21 april 2013 and to allot an 
additional number of ordinary shares 
up to a maximum of £2778169 which 
is approximately a further 33 of the 
issued share capital on 21 april 2013 
by way of a rights issue in which the new 
shares are offered to existing shareholders 
in proportion to their existing shareholdings 
no ordinary shares were allocated during 
the period from the agm to the date of this 
report this authority will expire at the 2014 
agm and approval will be sought from 
shareholders at that meeting for a similar 
authority to be given for a further year 
the company was given authority at the 
2013 agm to make market purchases of 
up to 41672533 of its own ordinary shares 
at the general meeting on 19 november 2013 
shareholders approved the consolidation 
of the company’s share capital from 
416725335 ordinary shares of 2 pence 
to 160278975 new ordinary shares of 
52 pence at the meeting the company was 
given authority to make market purchases 
of up to 1027897 of its own ordinary shares 
of 52 pence this authority will expire at 
the 2014 agm and approval will be sought 
from shareholders at that meeting for a 
similar authority to be given for a further year  
the company did not make any purchases 
of its own ordinary shares during the period 
from the agm to the date of this report 
going concern
going concern is discussed in the financial 
review which can be found on pages 14 to 16
research and development
the group spent €23 million 2012 
€22 million on research and development 
during the year in the field of continuous 
production process optimisation and 
improvement and adaptation of products 
to market requirements
change of control
there are a number of agreements that take 
effect alter or terminate upon a change 
of control of one of the group subsidiary 
companies such as commercial supplier 
and customer contracts there is no 
individual contractual arrangement that 
is considered to be essential to the 
continuing operation of the group
all of the company’s share schemes contain 
provisions relating to a change of control 
outstanding options and awards normally 
vest and become exercisable on a change 
of control subject to the satisfaction of 
any performance conditions at that time
financial risk management
the group’s financial risk management 
policy is set out in note 30 in the notes to 
the consolidated financial statements
disclosure of information to the auditors
the directors who held office at the date 
of approval of this directors’ report confirm 
that so far as they are each aware there 
is no relevant audit information of which 
the group’s auditors are unaware and each 
director has taken all the steps that he ought 
to have taken as a director to make himself 
aware of any relevant audit information 
and to establish that the group’s auditors 
are aware of that information
independent auditors 
pricewaterhousecoopers llp have 
indicated that they are willing to continue 
in office a resolution to reappoint 
pricewaterhousecoopers llp as auditors 
for the ensuing year will be proposed 
at the agm
annual general meeting
the agm will be held at 3 more london 
riverside london se1 2aq on thursday 
22 may 2014 at 200pm the letter from 
the chairman and notice of meeting 
document give full details of the agm 
and the resolutions to be proposed
by order of the board
matthew wethey
group secretary
19 march 2014 wwwpvcrystaloxcom
46 pv crystalox solar plc  annual report and accounts 2013
statement of directors’ responsibilities
in respect of the directors’ report and the financial statements
the directors are responsible for preparing 
the annual report the directors’ 
remuneration report and the financial 
statements in accordance with applicable 
law and regulations
company law requires the directors 
to prepare financial statements for 
each financial year under that law 
the directors have prepared the group 
financial statements in accordance 
with international financial reporting 
standards “ifrs” as adopted by the 
european union and the parent company 
financial statements in accordance with 
united kingdom generally accepted 
accounting practice united kingdom 
accounting standards and applicable law 
under company law the directors must not 
approve the financial statements unless 
they are satisfied that they give a true and 
fair view of the state of affairs of the group 
and the company and of the profit or loss 
of the group for that period in preparing 
these financial statements the directors 
are required to
  select suitable accounting policies 
and then apply them consistently
  make judgements and accounting 
estimates that are reasonable 
and prudent
  state whether ifrss as adopted by 
the european union and applicable 
uk accounting standards have been 
followed subject to any material 
departures disclosed and explained 
in the group and company financial 
statements respectively and
  prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the 
company will continue in business
the directors are responsible for keeping 
adequate accounting records that are 
sufficient to show and explain the company’s 
transactions and disclose with reasonable 
accuracy at any time the financial position 
of the company and the group and enable 
them to ensure that the financial statements 
and the directors’ remuneration report 
comply with the companies act 2006 and 
as regards the group financial statements 
article 4 of the ias regulation they are 
also responsible for safeguarding the assets 
of the company and the group and hence 
for taking reasonable steps for the prevention 
and detection of fraud and other irregularities
the directors are responsible for the 
maintenance and integrity of the company’s 
website legislation in the united kingdom 
governing the preparation and dissemination 
of financial statements may differ from 
legislation in other jurisdictions
the directors consider that the annual report 
and accounts taken as a whole is fair 
balanced and understandable and provides 
the information necessary for shareholders 
to assess a company’s performance 
business model and strategy 
each of the directors whose names and 
functions are listed in the directors section 
confirm that to the best of their knowledge
  the group financial statements which 
have been prepared in accordance with 
ifrss as adopted by the eu give a true 
and fair view of the assets liabilities 
financial position and loss of the 
group and
  the strategic report 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 risks and uncertainties 
that it faces
dr peter finnegan
chief financial officer
19 march 2014 governance financial statements overview strategic report
financial statements
annual report and accounts 2013  pv crystalox solar plc 47
financial statements
consolidated financial statements
independent auditors’ report 48
consolidated statement of comprehensive income 51
consolidated balance sheet 52
consolidated statement of changes in equity 53
consolidated cash flow statement 54
notes to the consolidated financial statements 56
company financial statements
independent auditors’ report 80 
accounting policies 82
company balance sheet 83
notes to the company financial statements 84
shareholder information
advisers 88  wwwpvcrystaloxcom
48 pv crystalox solar plc  annual report and accounts 2013
independent auditors’ report
to the members of pv crystalox solar plc
report on the group financial statements
our opinion  
in our opinion the group financial statements 
defined below
  give a true and fair view of the state of the 
group’s affairs as at 31 december 2013 
and of the group’s profit and cash flows 
for the year then ended
  have been properly prepared in 
accordance with international financial 
reporting standards “ifrs” as adopted 
by the european union and
  have been prepared in accordance with 
the requirements of the companies act 
2006 and article 4 of the ias regulation
this opinion is to be read in the context of 
what we say in the remainder of this report
what we have audited
the group financial statements which 
are prepared by pv crystalox solar plc 
comprise
  the consolidated balance sheet as at 
31 december 2013
  the consolidated statement of 
comprehensive income for the year 
then ended
  the consolidated statement of changes 
in equity and consolidated cash flow 
statement for the year then ended and
  the notes to the consolidated financial 
statements which include a summary of 
significant accounting policies and other 
explanatory information
the financial reporting framework that has 
been applied in their preparation comprises 
applicable law and ifrs as adopted by the 
european union 
certain disclosures required by the financial 
reporting framework have been presented 
elsewhere in the annual report and accounts 
the “annual report” rather than in the 
notes to the financial statements these 
are crossreferenced from the financial 
statements and are identified as audited
what an audit of financial statements involves 
we conducted our audit in accordance 
with international standards on auditing 
uk and ireland “isas uk  ireland” 
an audit involves obtaining evidence about 
the amounts and disclosures in the financial 
statements sufficient to give reasonable 
assurance that the financial statements are 
free from material misstatement whether 
caused by fraud or error this includes an 
assessment of
  whether the accounting policies are 
appropriate to the group’s circumstances 
and have been consistently applied and 
adequately disclosed
  the reasonableness of significant 
accounting estimates made by the 
directors and 
  the overall presentation of the 
financial statements 
in addition we read all the financial and 
nonfinancial information in the annual 
report to identify material inconsistencies 
with the audited group financial statements 
and to identify any information that is 
apparently materially incorrect based on 
or materially inconsistent with the knowledge 
acquired by us in the course of performing 
the audit if we become aware of any apparent 
material misstatements or inconsistencies 
we consider the implications for our report
overview of our audit approach
materiality
we set certain thresholds for materiality 
these helped us to determine the nature 
timing and extent of our audit procedures 
and to evaluate the effect of misstatements 
both individually and on the financial 
statements as a whole 
based on our professional judgement 
we determined materiality for the group 
financial statements as a whole to be 
€10 million which represents 1 of total 
assets we have had regard to total assets 
because in our view this is an appropriate 
measure of underlying performance 
we agreed with the audit committee that 
we would report to them misstatements 
identified during our audit above €50000 
as well as misstatements below that amount 
that in our view warranted reporting for 
qualitative reasons
overview of the scope of our audit
the group is structured with operations in 
the uk germany and japan these operations 
are organised around the production and 
supply of one product multicrystalline silicon 
wafers the group financial statements are 
a consolidation of six reporting units across 
these territories comprising the group’s 
operating businesses and head office 
in establishing the overall approach to the 
group audit we determined the type of work 
that needed to be performed at the reporting 
units by us as the group engagement 
team or component auditors from other 
pwc network firms operating under our 
instruction where the work was performed 
by component auditors we determined the 
level of involvement we needed to have in 
the audit work at those reporting units to 
be able to conclude whether sufficient 
appropriate audit evidence had been 
obtained as a basis for our opinion on the 
group financial statements as a whole
based on our assessment of significance 
and risk audits of the complete financial 
information of four of the six reporting units 
– pv crystalox solar plc crystalox limited 
pv crystalox solar kk and pv crystalox 
solar silicon gmbh – were performed 
these four reporting units accounted for 98 
of group assets in addition we performed 
procedures over the remaining reporting 
units to identify any unusual or unexpected 
transactions or balances this work together 
with additional procedures performed at the 
group level over the consolidation process 
gave us sufficient appropriate audit evidence 
for our opinion on the group financial 
statements as a whole 
areas of particular audit focus
in preparing the financial statements 
the directors made a number of subjective 
judgements for example in respect of 
significant accounting estimates that involved 
making assumptions and considering 
future events that are inherently uncertain 
we primarily focused our work in these 
areas by assessing the directors’ judgements 
against available evidence forming our own 
judgements and evaluating the disclosures 
in the financial statements
in our audit we tested and examined 
information using sampling and other 
auditing techniques to the extent we 
considered necessary to provide a 
reasonable basis for us to draw conclusions 
we obtained audit evidence through testing 
the effectiveness of controls substantive 
procedures or a combination of both 
we considered the following areas to be 
those that required particular focus in the 
current year this is not a complete list of 
all risks or areas of focus identified by our 
audit we discussed these areas of focus 
with the audit committee their report on 
those matters that they considered to be 
significant issues in relation to the financial 
statements is set out on pages 42 to 43 overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 49
governance financial statements
area of focus how the scope of our audit addressed the area of focus
going concern
we focused on this area because global overcapacity 
has driven a significant ongoing decline in market 
prices across the photovoltaic value chain which has 
placed significant pressure on the group’s ability to 
generate cash 
the directors’ assessment in relation to going concern 
is described on page 16 this assessment is inherently 
subjective due to the judgement in estimating future 
cash flows 
our work included testing management’s going concern assessment 
and evaluating and challenging key assumptions used in the assessment 
and cash flow forecasts including the future price at which polysilicon 
is purchased sales prices and manufacturing costs
we performed sensitivity analysis over these significant assumptions 
to ascertain the extent of change in those assumptions that either 
individually or collectively would be required for the company to have 
insufficient cash flows to meet its ongoing liabilities as they fall due 
we also considered the likelihood of such a movement in those key 
assumptions arising
we additionally considered the accuracy of previous cash flow forecasts
our conclusion on going concern is overleaf
onerous supplier contract provision
as described in note 22 to the group financial 
statements due to a significant unexpected decline 
in market prices for both polysilicon and silicon wafers 
the resultant cost of polysilicon under the group’s 
longterm supply contracts and subsequent 
amendments means the group is expecting losses 
on these contracts for which provision is required 
we focused on this area as the provisions are material 
to the balance sheet and require the directors to 
make estimates of the likely future cash flows that 
will be required to settle the group’s obligations 
these estimates are inherently subjective 
our work included testing management’s onerous contract provision  
model and evaluating and challenging key inputs and assumptions 
used in the model including agreeing future sales prices and future 
polysilicon purchase prices and volumes to appropriate evidence 
we also evaluated whether assumptions were in line with those used 
in management’s going concern assessment
fraud in revenue recognition 
isas uk  ireland presume there is a risk of fraud 
in revenue recognition because of the pressure 
management may feel to achieve results 
we focused on whether entitlement to recognise 
revenue had been achieved and the timing of when 
that revenue was recognised in addition we considered 
how processes may have been circumvented and 
whether manual adjustments had been made to 
revenue to achieve market expectations 
we tested revenues recognised to source documentation particular 
focus was given to sales made around the year end by testing to confirm 
that the sale had been recorded in the period in which risk and reward 
had been transferred
we tested manual journal entries impacting revenue recorded at reporting 
units subject to audit and centrally at a group level our work specifically 
focused on understanding the reasons for the adjustments and evaluating 
the adjustments against appropriate audit evidence 
risk of management override of internal controls 
isas uk  ireland require that we consider this we considered whether there was evidence of bias by the directors in the 
significant accounting estimates and judgements relevant to the financial 
statements that may represent a risk of material misstatement due to fraud 
we also assessed the overall control environment of the group and 
interviewed senior management 
we analysed manual journals at reporting units subject to audit and centrally 
at a group level to identify unexpected or unusual journals and performed 
testing over these items 
additional area of focus applicable to pv crystalox 
solar plc company financial statements
risk of impairment of investment in subsidiary 
undertakings
we focused on this area since the carrying 
value of the investments in the company balance 
sheet exceeded the consolidated net assets of 
the subsidiaries 
 
we obtained management’s paper supporting the carrying value of 
investments we evaluated management’s assumptions and forecasts 
regarding the likelihood and magnitude of future cash flows and whether 
these give rise to sufficient additional economic benefit that is expected 
to be generated over and above the carrying value of the consolidated net 
assets of the subsidiaries in order to support management’s assessment 
that no impairment is required wwwpvcrystaloxcom
50 pv crystalox solar plc  annual report and accounts 2013
going concern
the directors have voluntarily complied with 
listing rule 986r3 of the financial 
conduct authority and provided a statement 
in relation to going concern set out on 
page 16 required for companies with a 
premium listing on the london 
stock exchange 
the directors have requested that we review 
the statement on going concern as if the 
company were a premium listed company 
we have nothing to report having performed 
our review
as noted in the directors’ statement the 
directors have concluded that it is appropriate 
to prepare the group’s financial statements 
using the going concern basis of accounting 
the going concern basis presumes that the 
group has adequate resources to remain 
in operation and that the directors intend 
it to do so for at least one year from the 
date the financial statements were signed 
as part of our audit we have concluded 
that the directors’ use of the going concern 
basis is appropriate
however because not all future events 
or conditions can be predicted these 
statements are not a guarantee as to 
the group’s ability to continue as a 
going concern
opinions on other matters prescribed 
by the companies act 2006
in our opinion 
  the information given in the strategic 
report and the directors’ report for the 
financial year for which the group financial 
statements are prepared is consistent 
with the group financial statements and
  the information given in the corporate 
governance statement set out on 
pages 22 to 25 in the annual report 
with respect to internal control and 
risk management systems and about 
share capital structures is consistent 
with the financial statements
other matters on which we are 
required to report by exception
adequacy of information 
and explanations received
under the companies act 2006 we are 
required to report to you if in our opinion 
we have not received all the information 
and explanations we require for our audit 
we have no exceptions to report arising 
from this responsibility
directors’ remuneration
under the companies act 2006 we 
are required to report to you if in our 
opinion certain disclosures of directors’ 
remuneration specified by law have not 
been made we have no exceptions to 
report arising from this responsibility
corporate governance statement
under the companies act 2006 we are 
required to report to you if in our opinion 
a corporate governance statement has 
not been prepared by the company 
we have no exceptions to report arising 
from this responsibility
the directors have chosen to voluntarily 
comply with the uk corporate governance 
code “the code” as if the company were 
a premium listed company on page 46 
of the annual report as required by the 
code provision c11 the directors state 
that they consider the annual report 
taken as a whole to be fair balanced and 
understandable and provides the information 
necessary for members to assess the group’s 
performance business model and strategy 
on pages 42 and 43 as required by c38 of 
the code the audit committee has set out 
the significant issues that it considered 
in relation to the financial statements 
and how they were addressed under isas 
uk  ireland we are required to report 
to you if in our opinion
  the statement given by the directors 
is materially inconsistent with our 
knowledge of the group acquired in 
the course of performing our audit or
  the section of the annual report 
describing the work of the audit 
committee does not appropriately 
address matters communicated by 
us to the audit committee
we have no exceptions to report arising 
from this responsibility
other information in the annual report
under isas uk  ireland we are required 
to report to you if in our opinion information 
in the annual report is
  materially inconsistent with the 
information in the audited group 
financial statements or
  apparently materially incorrect based 
on or materially inconsistent with our 
knowledge of the group acquired in the 
course of performing our audit or
  is otherwise misleading
we have no exceptions to report arising 
from this responsibility
matters on which we have agreed 
to report by exception
directors’ remuneration
the company voluntarily provides 
the disclosures relating to directors’ 
remuneration required by the listing rules 
of the financial conduct authority as if it 
were a premium listed company and the 
directors have requested that we review the 
elements of the report to shareholders by 
the board on directors’ remuneration 
specified for auditor review by the listing 
rules we have nothing to report having 
performed our review 
corporate governance statement
the company prepares a corporate 
governance statement in accordance with 
the disclosure rules and transparency 
rules of the financial conduct authority 
and has chosen voluntarily to comply 
with the uk corporate governance code 
the directors have requested that we review 
the parts of the corporate governance 
statement relating to the company’s 
compliance with nine provisions of the 
uk corporate governance code specified 
for auditor review by the listing rules of 
the financial conduct authority as if the 
company were a premium listed company 
we have nothing to report having performed 
our review
responsibilities for the 
financial statement audit
our responsibilities and those 
of the directors 
as explained more fully in the statement 
of directors’ responsibilities set out on 
page 46 the directors are responsible 
for the preparation of the group financial 
statements and for being satisfied that 
they give a true and fair view 
our responsibility is to audit and express 
an opinion on the group financial statements 
in accordance with applicable law and isas 
uk  ireland those standards require 
us to comply with the auditing practices 
board’s ethical standards for auditors 
this report including the opinions has been 
prepared for and only for the company’s 
members as a body in accordance with 
chapter 3 of part 16 of the companies act 
2006 and for no other purpose we do not 
in giving these opinions accept or assume 
responsibility for any other purpose or to 
any other person to whom this report is 
shown or into whose hands it may come 
save where expressly agreed by our prior 
consent in writing
other matter
we have reported separately on the 
company financial statements of 
pv crystalox solar plc for the year ended 
31 december 2013 and on the information 
in the directors’ remuneration report that 
is described as having been audited 
sam taylor senior statutory auditor
for and on behalf of 
pricewaterhousecoopers llp
chartered accountants and 
statutory auditors
reading
19 march 2014
independent auditors’ report continued
to the members of pv crystalox solar plc overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 51
governance financial statements
consolidated statement of comprehensive income 
for the year ended 31 december 2013
notes
2013
total
€’000
2012
total
€’000 
restated
continuing operations
revenues 71442 46305
other income 2 2696 101202
cost of material and services
cost of material 3 53276 116780
cost of services 3 1827 3459
personnel expenses 
wages and salaries 4 5196 9424
social security costs 4 820 1150
pension costs 4 179 592
employee share schemes 4 243 303
restructuring costs 4 16 2686
depreciation and impairment of property plant and equipment and amortisation of intangible assets 441 37685
other expenses 5 4693 7880
currency gains and losses 30 3081 2432
profitloss before interest and taxes “ebit” 10528 30020
finance income 6 796 820
finance cost 6 4698 1514
profitloss before taxes “ebt” 6626 30714
income taxes 7 390 10607
profitloss for the year from continuing operations 6236 41321
discontinued operations
loss for the year from discontinued operations 36 2577 80080
profitloss attributable to equity owners of the parent 3659 121401
other comprehensive income
exchange differences on translating foreign operations 4974 1258
total comprehensive income
attributable to equity owners of the parent 1315 122659
basic and diluted earningsloss per share in euro cents 
from continuing operations 9 17 102
from discontinued operations 9 07 197
from profitloss for the year 9 10 299
 prior year figures have been restated due to the discontinued operations
the accompanying notes form an integral part of these financial statements  wwwpvcrystaloxcom
52 pv crystalox solar plc  annual report and accounts 2013
consolidated balance sheet
as at 31 december 2013
notes
2013
€’000
2012
€’000
intangible assets 15 44 116
property plant and equipment 16 2351 10806
pension surplus 27 108 41
other longterm assets 17 14626 23432
deferred tax asset 18 — 190
total noncurrent assets 17129 34585
cash and cash equivalents 10 39900 94680
trade accounts receivable 11 13473 10333
inventories 12 13009 38426
prepaid expenses and other assets 13 11504 14060
current tax assets 14 70 1365
total current assets 77956 158864
total assets 95085 193449
loans payable 19 690 5284
trade accounts payable 20 2827 6701
deferred revenue 26 3342 3348
accrued expenses 21 2689 25006
provisions 22 12594 23559
deferred grants and subsidies 23 152 210
current tax liabilities 24 199 13
other current liabilities 25 50 529
total current liabilities 22543 64650
accrued expenses 21 146 142
provisions 22 13969 33763
other longterm liabilities 43 43
total noncurrent liabilities 14158 33948
share capital 28 12332 12332
share premium 50511 75607
other reserves 25096 —
shares held by the ebt 7610 8640
sharebased payment reserve 922 819
reverse acquisition reserve 3601 3601
retained earnings 4067 36693
currency translation adjustment 23333 18359
total equity 58384 94851
total liabilities and equity 95085 193449
the accompanying notes form an integral part of these statements
the financial statements on pages 51 to 79 were approved by the board of directors on 19 march 2014 and signed on its behalf by
dr peter finnegan company number
chief financial officer 06019466 overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 53
governance financial statements
consolidated statement of changes in equity
for the year ended 31 december 2013
 note
share
capital
€’000
share
premium
€’000
other
reserves
€’000
shares
held
by the
ebt
€’000
sharebased
payment
reserve
€’000
reverse
acquisition
reserve
€’000
retained
earnings
€’000
currency
translation
adjustment
€’000
total
equity
€’000
as at 1 january 2012 12332 75607 — 8640 500 3601 158094 17101 217191
dividends paid in the year 35 — — — — — — — — —
sharebased payment charge 29 — — — — 319 — — — 319
transactions with owners — — — — 319 — — — 319
loss for the year — — — — — — 121401 — 121401
currency translation adjustment — — — — — — — 1258 1258
total comprehensive income — — — — — — 121401 1258 122659
as at 31 december 2012 12332 75607 — 8640 819 3601 36693 18359 94851
as at 1 january 2013 12332 75607 — 8640 819 3601 36693 18359 94851
shareholder return 35 — — — — — — 36285 — 36285
issue and redemption  
of b shares 28 — 25096 25096 — — — — — —
sharebased payment charge — — — — 103 — — — 103
award of shares — — — 119 — — — — 119
b share capital in  
shares for the ebt 29 — — — 911 — — — — 911
transactions with owners — 25096 25096 1030 103 — 36285 — 35152
profit for the year — — — — — — 3659 — 3659
currency translation adjustment — — — — — — — 4974 4974
total comprehensive income — — — — — — 3659 4974 1315
as at 31 december 2013 12332 50511 25096 7610 922 3601 4067 23333 58384 wwwpvcrystaloxcom
54 pv crystalox solar plc  annual report and accounts 2013
consolidated cash flow statement
for the year ended 31 december 2013
note
2013
€’000
2012
€’000
continuing operations
earnings before taxes 6626 30714
adjustments for
net interest expense 6 3902 694
depreciation and amortisation 1516 441 16834
impairment 1516 — 20850
inventory writedown 12 681 35189
charge for retirement benefit obligation and sharebased payments 2729 35 436
decreaseincrease in provisions 22 31747 35581
gainloss from the disposal of property plant and equipment and intangibles 1072 103
gainslosses in foreign currency exchange 500 500
derecognition of grants and subsidies  20 619
change in deferred grants and subsidies   57 1529
     21671 78563
changes in working capital
decreaseincrease in inventories 12 20965 32421
increasedecrease in accounts receivables 1113 5731 21946
decrease in accounts payables and deferred income 2021 214 19893
decrease in other assets 17 9508 19333
decrease in other liabilities 25 335 329
    2522 67199
income taxes received 14 1118 9248
interest received   796 820
net cash from operating activities   4436 77267
cash flow from investing activities
proceeds from sale of property plant and equipment 1190 25
repayment of investment grants and subsidies 23 2477 4
payments to acquire property plant and equipment and intangibles 1516 122 1129
net cash used in investing activities   1409 1108
cash flow from financing activities
repayment of bank and other borrowings 19 3356 43350
dividends paid 35 36285 —
interest paid 6 101  190
net cash used in financing activities   39742 43540
net change in cash and cash equivalents available from continuing operations 36715 32619 overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 55
governance financial statements
note
2013
€’000
2012
€’000
discontinued operations
earnings before taxes 1855 80080
adjustments for
depreciation and amortisation 1516 38 —
impairment 1516 720 61753
inventory writedown 12 — 6318
recognitionderecognition of grants and subsidies 18452 5193
loss from the disposal of property plant and equipment and intangibles 20250 12
change in deferred grants and subsidies   —  7497
    739 14301
changes in working capital
decreaseincrease in inventories 12 816 755
decrease in accounts payables and deferred income 2021 3794 1195
decrease in other assets 17 366 5945
increasedecrease in other liabilities 25 138 107
net cash used in operating activities   3489 10199
cash flow from investing activities
proceeds from investment grants and subsidies 23 — 8
payments to dispose of property plant and equipment and intangibles 1516 12261 156
net cash used in investing activities   12261 148
net change in cash and cash equivalents available from discontinued operations 15750 10347
cash generated from continuing and discontinuing operations 52465 22272
effects of foreign exchange rate changes on cash and cash equivalents   2315 744
cash and cash equivalents at beginning of the year   94680 71664
cash and cash equivalents at end of the year   39900 94680
the accompanying notes form an integral part of these financial statements wwwpvcrystaloxcom
56 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements
for the year ended 31 december 2013
1 group accounting policies
basis of preparation
the consolidated financial statements of the group have been prepared in accordance with international financial reporting standards 
“ifrs” as adopted by the european union ifric interpretations and the companies act 2006 applicable to companies reporting under 
ifrs the financial information has also been prepared under the historical cost convention except that it has been modified to include 
certain financial assets and liabilities including derivatives at their fair value through profit and loss these policies have been consistently 
applied to all years presented unless otherwise stated
pv crystalox solar plc is incorporated and domiciled in the united kingdom
the company’s listing on the london stock exchange changed from premium to standard listing during 2013
the financial statements for the year ended 31 december 2013 were approved by the board of directors on 19 march 2014 
functional and presentational currency 
items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic 
environment in which the entity operates the “functional currency” the functional currency of the parent company is sterling 
the financial information has been presented in euros which is the group’s presentational currency the euro has been selected 
as the group’s presentational currency as this is the currency used in its significant contracts the financial statements are presented 
in round thousands 
foreign currency translation 
transactions in foreign currencies are translated into the functional currency of the respective entity at the foreign exchange rate ruling 
at the date of the transactions monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated 
to the functional currency at the foreign exchange rate ruling at that date nonmonetary assets and liabilities that are measured in terms 
of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction nonmonetary assets and 
liabilities that are stated at fair value are translated to the functional currency at foreign exchange rates ruling at the date the fair value 
was determined exchange gains and losses on monetary items are charged to ebit 
the assets and liabilities of foreign operations are translated to euros at foreign exchange rates ruling at the balance sheet date 
the income and expenses of foreign operations are translated into euros at the average foreign exchange rates of the year that the 
transactions occurred in in the consolidated financial statements exchange rate differences arising on consolidation of the net 
investments in subsidiaries are recognised in other comprehensive income under “currency translation adjustment”
use of estimates and judgements – overview
the preparation of financial statements in conformity with adopted ifrs requires management to make judgements and estimates 
that affect the application of policies and reported amounts of assets liabilities income expenses and contingent liabilities estimates 
and assumptions mainly relate to the useful life of noncurrent assets the discounted cash flows used in impairment testing the establishing 
of provisions for onerous contracts taxes sharebased payment and inventory valuations estimates are based on historical experience 
and other assumptions that are considered reasonable under the circumstances actual values may vary from the estimates the estimates 
and the assumptions are under continuous review with particular attention paid to the life of material plant
critical accounting and valuation policies and methods are those that are both most important to the depiction of the group’s financial 
position results of operations and cash flows and that require the application of subjective and complex judgements often as a result of the 
need to make estimates about the effects of matters that are inherently uncertain and may change in subsequent years the critical accounting 
policies that the group discloses will not necessarily result in material changes to our financial statements in any given year but rather 
contain a potential for material change the main accounting and valuation policies used by the group are outlined in the following notes 
while not all of the significant accounting policies require subjective or complex judgements the group considers that the following 
accounting policies should be considered critical accounting policies
use of estimates – property plant and equipment impairment
property plant and equipment are depreciated over their estimated useful lives the estimated useful lives are based on estimates of the 
period during which the assets will generate revenue the carrying amount of the group’s nonfinancial assets other than inventories and 
deferred tax assets are subject to regular impairment testing and are reviewed annually and upon indication of impairment 
having considered the current and lack of certainty of future profitability of other group companies the majority of property plant and 
equipment has previously been written down to scrap value
although we believe that our estimates of the relevant expected useful lives our assumptions concerning the business environment 
and developments in our industry and our estimations of the discounted future cash flows are appropriate changes in assumptions 
or circumstances could require changes in the analysis this could lead to additional impairment charges or allowances in the future 
or to valuation write backs should the expected trends reverse
use of estimates – deferred taxes
to compute provisions for taxes estimates have to be applied these estimates involve assessing the probability that deferred tax assets 
resulting from deductible temporary differences and tax losses can be utilised to offset taxable income in the future
due to the lack of certainty around future profits all deferred tax assets continue to be unrecognised in the year’s balance sheet overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 57
governance financial statements
1 group accounting policies continued
use of estimates – provisions – onerous contract provisions
in keeping with normal practice in the industry at the time the group entered into longterm supply contracts for its raw material 
polysilicon with two major suppliers given the significant unexpected decline in market prices for polysilicon and silicon wafers 
the resultant cost of polysilicon under these contracts means the group is expecting losses on these contracts
consequently the financial statements include a provision of €265 million 2012 €520 million for the discounted total of currently 
anticipated losses under these contracts
any further renegotiation of these contracts or improvement in market pricing would reduce this provided for loss
use of estimates – inventory valuation
given the significant unexpected decline in market prices for polysilicon and silicon wafers the carrying amount of inventory has been 
reduced to net realisable value 
net realisable value has been determined as estimated selling price less all estimated costs of completion and costs to be incurred 
in marketing selling and distribution
any improvement in anticipated selling prices would reduce the level of writedown necessary and would be taken as profit in 2014
basis of consolidation
the group financial statements consolidate those of the group and its subsidiary undertakings drawn up to 31 december 2013 
subsidiaries are entities over which the group has the power to control the financial and operating policies so as to obtain benefits 
from its activities the group obtains and exercises control through voting rights 
the results of any subsidiary sold or acquired are included in the consolidated statement of comprehensive income up to or from 
the date control passes
consolidation is conducted by eliminating the investment in the subsidiary with the parent’s share of the net equity of the subsidiary
the group owns 100 of the voting rights in pv crystalox solar kabushiki kaisha noncontrolling interests in equity of €43400 are 
related to nonredeemable preferred stock subject to a guaranteed annual dividend payment of €2000 as the fair value of the resulting 
dividend liabilities reduces the equity portion to marginal amounts all noncontrolling interests have been reclassified as liabilities
on acquisition of a subsidiary all of the subsidiary’s separately identifiable assets and liabilities existing at the date of acquisition 
are recorded at their fair value reflecting their condition at that date goodwill arises where the fair value of the consideration given 
for a business exceeds the fair value of such net assets so far no acquisitions have taken place since inception of the group
amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the 
accounting policies adopted by the group all intragroup transactions balances income and expenses are eliminated upon consolidation
going concern
a description of the market conditions including the continued suppression in spot prices of wafers during 2013 and the group’s actions 
to conserve cash are included in the operational review 
as part of its normal business practice the group regularly prepares both annual and longerterm plans which are based on the directors’ 
expectations concerning key assumptions the assumptions around contracted sales volumes and prices and contracted purchase 
volumes and prices are based on management’s expectations and are consistent with the group’s experience in the first part of 2014 
the group has two remaining wafer supply contracts and although these in theory should give the ability to sell wafers at prices that are 
above current market spot prices during 2014 despite the difficult market environment wafer sales to customers without longterm contracts 
are assumed in the business plan at values close to spot prices 
on the other hand the group has longterm contracts with two external suppliers for purchase of polysilicon our main raw material 
for volumes in excess of current reduced production requirements the group’s management has been successful in reaching accommodation 
with these suppliers to secure periodic contract amendments and adjust prices and volumes as a result these amendments have 
brought the terms more in line with current market pricing to manage inventory levels the group continues to sell excess polysilicon 
into the spot market
the nature of the group’s operation means that it can vary production levels to match market requirements as part of the cash conservation 
measures and the associated planning assumptions production output has been reduced to match expected demand in line with the 
group’s strategy of retaining flexibility in production levels production can be brought back on stream when market conditions allow 
and this has started to happen in the first few weeks of 2014
as a result of these modelling assumptions the base plans indicate that the group will be able to operate within its net cash reserves 
for the foreseeable future 
on 31 december 2013 there was a net cash balance of €392 million comprising cash or cash equivalents of €399 million and shortterm 
loans of €07 million the borrowings are in japanese yen and securitycomfort is given to the lender by the japanese accounts receivable 
the group’s plans are based upon remaining within its net cash balance and are not dependent upon these minimal shortterm borrowings 
therefore whilst any consideration of future matters involves making a judgement at a particular point in time about future events that are 
inherently uncertain the directors after careful consideration and after making appropriate enquiries are of the opinion that the group 
has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements 
thus the group continues to adopt the going concern basis of accounting in preparing the annual financial statements wwwpvcrystaloxcom
58 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
1 group accounting policies continued
effects of new accounting pronouncements
accounting standards in effect or applied for the first time in 2013
  amendment to ias 1 ‘financial statement presentation’ regarding other comprehensive income effective 1 july 2012 
  amendment to ias 12 ’income taxes’ on deferred tax effective 1 january 2013 
  amendment to ias 19 ‘employee benefits’ effective 1 january 2013 
  amendment to ifrs 1 ‘first time adoption’ on government loans effective 1 january 2013 
  amendment to ifrs 1 on hyperinflation and fixed dates effective 1 january 2013 
  amendment to ifrs 7 ‘financial instruments disclosures’ on asset and liability offsetting effective 1 january 2013 
  annual improvements 2011 effective 1 january 2013 
  ifric 20 ‘stripping costs in the production phase of a surface mine’ effective 1 january 2013 
  ifrs 13 ‘fair value measurement’ effective 1 january 2013
the above has not made a material difference to the financial statements
in issue but not yet effective 
the following interpretations are in issue but not yet effective the group does not believe that any will have a material impact on 
the group’s financial positions results of operations or cash flows
  ifrs 10 ‘consolidated financial statements’ effective 1 january 2014 
  ifrs 11 ‘joint arrangements’ effective 1 january 2014 
  ifrs 12 ‘disclosures of interests in other entities’ effective 1 january 2014 
  amendment to ias 32 ‘financial instruments presentation’ on asset and liability offsetting effective 1 january 2014 
  ias 27 revised 2011 ‘separate financial statements’ 1 january 2014 
  ias 28 revised 2011 ‘associates and joint ventures’ effective 1 january 2014 
  ifrs 9 ‘financial instruments’ effective 1 january 2015
intangible assets
intangible assets are stated at cost net of accumulated amortisation the group’s policy is to write off the difference between the cost of 
intangible assets systematically over their estimated useful life amortisation of intangible assets is recorded under “depreciation and 
impairment of property plant and equipment and amortisation of intangible assets” in the consolidated statement of comprehensive income
acquired computer software licences and patents are capitalised on the basis of the costs incurred to purchase and bring into use 
the software 
the capitalised costs are written down using the straightline method over the expected economic life of the patents and licences 
five years or the software under development three to five years
internally generated intangible assets – research and development expenditure
expenditure on research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding 
is recognised in the consolidated statement of comprehensive income
property plant and equipment
property plant and equipment is stated at acquisition or construction cost net of depreciation and provision for impairment no depreciation 
is charged during the period of construction the cost of own work capitalised is comprised of direct costs of material and manufacturing and 
directly attributable costs of manufacturing overheads all allowable costs up until the point at which the asset is physically able to 
operate as intended by management are capitalised the capitalised costs are written down using the straightline method
the group’s policy is to write off the difference between the cost of property plant and equipment and its residual value systematically over 
its estimated useful life reviews of the estimated remaining lives and residual values of individual productive assets are made annually 
taking commercial and technological obsolescence as well as normal wear and tear into account
the total useful lives range from approximately 25 to 33 years for buildings five to ten years for plant and machinery and up to 15 years for 
other furniture and equipment no depreciation is provided on freehold land property plant and equipment are reviewed for impairment at each 
balance sheet date or upon indication that the carrying value may not be recoverable
the gain or loss arising on disposal of an asset is determined as the difference between the disposal proceeds and the carrying amount 
of the asset and is recognised in the consolidated statement of comprehensive income overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 59
governance financial statements
1 group accounting policies continued
impairment
the carrying amount of the group’s nonfinancial assets other than inventories and deferred tax assets is subject to impairment testing 
upon indication of impairment
if any such indication exists the asset’s recoverable amount is estimated an impairment loss is recognised for the amount by which the 
asset’s carrying amount exceeds its recoverable amount the recoverable amount is the higher of fair value reflecting market conditions 
less costs of disposal and value in use based on an internal discounted cash flow evaluation the asset is subsequently reviewed for 
possible reversal of the impairment at each reporting date
the total amount of such impairments included in the statement of comprehensive income for this year is an impairment charge of €nil 
2012 €826 million 
leased assets
leases are categorised as per the requirements of ias17 where risks and rewards are transferred to the lessee the lease is classified 
as a finance lease all other leases are classed as operating leases
rentals under operating leases are charged to the consolidated statement of comprehensive income on a straightline basis over the 
lease term lease incentives are spread over the total period of the lease
the obligations from operating lease contracts are disclosed among financial obligations 
for the reporting year no assets were recorded under finance leases
financial instruments
financial assets and financial liabilities are recognised on the group’s balance sheet when the group becomes a party to the contractual 
provisions of the instrument financial instruments are recorded initially at fair value net of transaction costs if changes in value are 
not charged directly to the consolidated statement of comprehensive income subsequent measurement depends on the designation 
of the instrument as follows
amortised cost
  shortterm borrowing overdrafts and longterm loans are held at amortised cost and
  accounts payable which are not interest bearing are recognised initially at fair value and thereafter at amortised cost under the 
effective interest method
held for trading
  derivatives if any comprising interest rate swaps and foreign exchange contracts are classified as held for trading they are included 
at fair value upon the valuation of the local bank
loans and receivables
  noninterest bearing accounts receivable are initially recorded at fair value and subsequently valued at amortised cost less provisions for 
impairment any change in their value through impairment or reversal of impairment is recognised in profit or loss net of any advance 
payment held by the group where a right of offset exists and
  cash and cash equivalents comprise cash balances and call deposits with maturities of less than three months together with other 
shortterm highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk 
of changes in value
interest and other income resulting from financial assets are recognised in profit or loss on the accruals basis using the effective 
interest method 
inventories
inventories are stated at the lower of cost or net realisable value 
acquisition costs for raw materials are usually determined by the weighted average method
for finished goods and work in progress cost of production includes directly attributable costs for material and manufacturing and an 
attributable proportion of manufacturing overhead expenses including depreciation based on normal levels of activity selling expenses 
and other overhead expenses are excluded interest is expensed as incurred and therefore not included net realisable value is determined 
as estimated selling price for silicon wafers or polysilicon less all estimated costs of completion and costs to be incurred in marketing 
selling and distribution
contingent liabilities
provisions are made for contingent liabilities where there is an obligation at the balance sheet date an adverse outcome is probable and 
associated costs can be estimated reliably where no obligation is present at the balance sheet date no provision is made although where 
material the contingent liability will be disclosed in a note wwwpvcrystaloxcom
60 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
1 group accounting policies continued
current and deferred taxes
current tax is the tax currently payable based on taxable profit for the year including any under or over provisions from prior years
deferred income taxes are calculated using the liability method on temporary differences deferred tax is generally provided on the 
difference between the carrying amounts of assets and liabilities and their tax bases however deferred tax is not provided on the initial 
recognition of goodwill nor on the initial recognition of an asset or liability unless the related transaction is a business combination 
or affects tax or accounting profit 
deferred tax on temporary differences associated with shares in subsidiaries is not provided if reversal of these temporary differences 
can be controlled by the group and it is probable that reversal will not occur in the foreseeable future in addition tax losses available 
to be carried forward as well as other income tax credits to the group are assessed for recognition as deferred tax assets 
deferred tax liabilities are provided in full deferred tax assets are recognised to the extent that it is probable that the underlying 
deductible temporary differences will be able to be offset against future taxable income current and deferred tax assets and liabilities 
are calculated at tax rates that are expected to apply to their respective period of realisation provided they are enacted or substantively 
enacted at the balance sheet date 
changes in deferred tax assets or liabilities are recognised as a component of tax expense in the consolidated statement of comprehensive 
income except where they relate to items that are charged or credited directly to equity in which case the related deferred tax is 
also charged or credited directly to equity 
public grants and subsidies
as the german wafering operation is located in a region designated for economic development the group received both investment 
subsidies and investment grants government grants and subsidies relating to capital expenditure were credited to the “deferred grants 
and subsidies” account and released to the consolidated statement of comprehensive income by equal annual instalments over the 
expected useful lives of the relevant assets under “other income”
government grants of a revenue nature mainly for research and development purposes were credited to the consolidated statement 
of comprehensive income in the same year as the related expenditure 
all required conditions of these grants have been met and it is the group’s intention they will continue to be met
responsibility for grants connected to the discontinued operation in bitterfeld has been entirely passed to the new ownership company 
and the group has no further liabilities in this regard
provisions
provisions are formed where a third party obligation exists which will lead to a probable future outflow of resources and where this 
outflow can be reliably estimated provisions are measured at the best estimate of the expenditure required to settle the obligation 
discounted to present value the resulting charge upon the discounting being unwound is recorded as a finance cost
accruals
accruals are recognised when an obligation to meet an outflow of economic benefit in the future arises at the balance sheet date
accruals are initially recognised at fair value and subsequently at amortised cost using the effective interest method
revenue recognition
revenue is recognised when the significant risks and rewards of ownership have been transferred to the customer ownership is considered 
to have transferred once products have been received by the customer unless shipping terms dictate any different revenues exclude 
intragroup sales and value added taxes and represent net invoice value less estimated rebates returns and settlement discounts 
the net invoice value is measured by reference to the fair value of consideration received or receivable by the group for goods supplied
the group has outsourced some elements of production to external companies in cases in which the group retains power of disposal over 
the product or product element a sale is only recognised under ifrs when the final product is sold the final product is deemed to have 
been sold when the risks and rewards of ownership have been transferred to a third party 
finance income and costs
net financing costs comprise interest payable on borrowings calculated using the effective interest rate method interest receivable 
on funds invested and dividend income and gains 
interest income is recognised in the consolidated statement of comprehensive income as it accrues using the effective interest method 
exceptional items
exceptional items are those items that in the directors’ view are required to be separately disclosed by virtue of their size or incidence 
to enable a full understanding of the group’s financial performance
due to the current volatility in the pv industry and any previously unusual charges being in keeping with those of other similar 
companies the directors’ believe that separate disclosure would not therefore be beneficial overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 61
governance financial statements
1 group accounting policies continued
defined benefit pension plan
a defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement usually 
dependent on one or more factors such as age years of service and compensation 
the liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit 
obligation at the balance sheet date less the fair value of plan assets the defined benefit obligation is calculated annually by independent 
actuaries using the projected unit credit method the present value of the defined benefit obligation is determined by discounting the 
estimated future cash outflows using interest rates of government bonds at the balance sheet date with a ten year maturity adjusted 
for additional term to maturity of the related pension liability
actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited directly 
to the consolidated statement of comprehensive income in the period in which they arise
past service costs are recognised immediately in profit or loss unless the changes to the pension plan are conditional to the employees 
remaining in service for a specified period of time the vesting period 
defined contribution plan
for defined contribution plans the group pays contributions to pension insurance plans on a contractual basis the group has no further 
payment obligations once the contributions have been paid the contributions are recognised as employee benefit expenses when they 
are incurred 
employee benefit trust
all assets and liabilities of the employee benefit trust “ebt” have been consolidated in these financial statements as the group 
has de facto control over the trust’s net assets as the parent of its sponsoring company 
deferred revenue and other longterm assets
as is common practice within the sector the group where appropriate both seeks to receive deposits from customers in advance 
of shipment and makes deposits in advance of supplies of silicon tetrachloride and polysilicon feedstock
these deposits are held on the balance sheet and matched against revenuecost as appropriate
deposits received from customers are not discounted as the effect is not considered to be material
sharebased payments
the group has applied the requirements of ifrs 2 ‘sharebased payments’ the group issues equitysettled sharebased payments 
to certain employees these are measured at their fair value at the date of the grant using an appropriate option pricing model and are 
expensed over the vesting year based on the group’s estimate of the number of shares that will eventually vest grants of shares made 
during 2008 and 2007 are not subject to performance criteria and were valued at the date of the grant at market value during 2009 the 
group granted share options to employees during 2011 awards were granted under the performance share plan to employees the share 
options granted are subject to performance criteria required for the option to vest and are considered in the method of measuring fair 
value fair value is assessed using the blackscholes method
charges made to the consolidated statement of comprehensive income in respect of sharebased payments are credited to the sharebased 
payment reserve
return of cash to shareholders
in december 2013 a return of cash was made to all shareholders amounting to €363 million in cash 725 pence per share equivalent 
to approximately 87 cents per share by way of a b and c share scheme which gave shareholders other than certain overseas subsidiaries 
a choice between receiving the cash in the form of income or capital the return of cash was accompanied by a 5 for 13 share consolidation 
to maintain broad comparability of the share price and return per share of the ordinary shares before and after the creation of the b and 
c shares
shareholders’ equity
shareholders’ equity is comprised of the following balances
  share capital is comprised of 160278275 ordinary shares of 52 pence each following a share consolidation see note 28
  share premium represents the excess over nominal value of the fair value of consideration received for equity shares net of expenses 
of share issue 
  other reserves arising from the issue and redemption of b shares in 2013
  investment in own shares is the group’s shares held by the ebt that are held in trust for the benefit of employees 
  sharebased payment reserve is the amount charged to the consolidated statement of comprehensive income in respect 
of shares already granted or options outstanding relative to the vesting date or option exercise date
  the reverse acquisition reserve is the difference between the value of the assets acquired and the consideration paid by way of a share 
for share exchange on 5 january 2007
  retained earnings is the cumulative profit retained by the group and
  currency translation adjustment represents the differences arising from the currency translation of the net assets in subsidiaries wwwpvcrystaloxcom
62 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
2 other income
2013
€’000
2012
€’000
restated
recognition of accrued grants and subsidies for investments 57 1529
sale of freehold property 1190 —
customer payment upon cancellation of contract — 90633
customer deposit realised as income on cancellation of contract — 8067
research and development grants 494 389
sale of nonsilicon product 159 24
refunds 180 233
insurance claims 2 20
miscellaneous 614 307
2696 101202
3 cost of material and services
the cost of materials is attributable to the consumption of silicon ingots wafers chemicals and other consumables as well as the 
purchase of merchandise
2013
€’000
2012
€’000
restated
cost of raw materials supplies and purchased merchandise 46961 39462
change in finished goods and work in progress 17286 1133
own work capitalised — 967
inventory writedowns 681 35189
onerous contract charge see note 22 11652 41963
cost of materials 53276 116780
cost of purchased services 1827 3459
cost of services 1827 3459
own work capitalised relates to the construction of production equipment including in particular crystallisation systems
4 personnel expenses
2013
€’000
2012
€’000
staff costs for the group during the year – continuing operations
wages and salaries 5196 9424
social security 820 1150
pension costs 179 592
employee share schemes 243 303
restructuring costs 16 2686
total 6454 14155
staff costs for the group during the year – discontinued operations
wages and salaries 787 3076
social security 229 736
pension costs 2 5
restructuring costs — 2193
total 1018 6010
total – continuing and discontinued 7472 20165
included within pension costs of continuing operations is €nil 2012 €179k relating to actuarial losses on defined benefit pension obligations overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 63
governance financial statements
4 personnel expenses continued
employees
the group employed a monthly average of 153 employees during the year ended 31 december 2013 2012 311
2013
number
2012
number
germany 115 217
united kingdom 33 87
japan 5 7
153 311
of which related to discontinued operations 41 102
2013
number
2012
number
production 90 196
administration 63 115
153 311
the group employed 88 employees at 31 december 2013 31 december 2012 299
of which nil related to discontinued operations at 31 december 2013 31 december 2012 98
the remuneration of the board of directors including appropriations to pension accruals is shown in the directors’ remuneration report 
on pages 29 to 41
5 other expenses
2013
€’000
2012
€’000
derecognition of previously recognised grants and subsidies and interest thereon — 619
land and building operating lease charges 2151 2603
repairs and maintenance 95 152
selling expenses 13 23
technical consulting research and development 145 189
external professional services 1225 2117
insurance premiums 280 380
travel and advertising expenses 133 369
bad debts 133 772
staff related costs 47 150
other 471 506
4693 7880
the following amounts were paidare payable to the group’s auditors
2013
€’000
2012
€’000
fees payable to the company’s auditors and their associates for the audit of the parent company  
and consolidated financial statements 96 86
fees payable to the company’s auditors and their associates for other services 
– the audit of the company’s subsidiaries pursuant to legislation 114 185
– auditrelated assurance services — 3
– other assurance services 77 60
– tax compliance services — 10
287 344
other assurance services relate to the restructure of the group and the shareholder return wwwpvcrystaloxcom
64 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
6 finance income and costs
finance income and costs are derivedincurred on financial assetsliabilities and recognised under the effective interest method
the resulting charge upon unwinding the discount charge on provisions is recorded as a finance cost
2013
total
€’000
2012
total
€’000
restated
finance income 796 820
finance expense
expense of group borrowings 41 113
expense of pension commitment 60 76
expense of unwinding provision discounting charge note 22 4597 1325
finance expense 4698 1514
7 income taxes
 
2013
total
€’000
2012
total
€’000
current tax
current tax on profit for the year 200 142
adjustments in respect of prior years — 817
total current tax 200 675
deferred tax note 18
origination and reversal of temporary differences — 2
derecognition of previously recognised tax losses 190 11284
total deferred tax 190 11282
total tax charge 390 10607
the total tax rate for the german companies is 32275 201231575  in erfurt and na 2012 29125 in bitterfeld the effective total 
tax rate in the united kingdom was 2325 2012 245 and the total tax rate in japan was 3991  2012 3991  these rates are based 
on the legal regulations applicable or adopted at the balance sheet date
the finance act 2012 included legislation to reduce the main rate of corporation tax in the uk to 23 with effect from 1 april 2013 
the finance act 2013 included legislation to further reduce the main rate of corporation tax in the uk to 21 with effect from 1 april 2014 
and to 20 with effect from 1 april 2015 as these changes were substantively enacted during the year they have been reflected in these 
financial statements 
the german rate will be unchanged in 2014 and in japan it is expected the total rate will fall to 3711 from 2016 onwards
the impact of these changes on net deferred tax liabilities at 31 december 2013 profit for the year underlying and statutory and 
comprehensive income for the year has not been significant the impact of these further changes is not expected to be material overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 65
governance financial statements
7 income taxes continued
the tax on the group’s results before tax differs from the theoretical amount that would arise using the weighted average tax rate 
applicable to the losses of the consolidated entities as follows
2013
€’000
2012
€’000
restated
profitloss before tax 6626 30714
expected income tax expense at uk tax rate 2325 2012 245 1541 7525
adjustments for foreign tax rates 474 3686
taxation on intercompany sale of the shares 183 —
income not subject to tax 86 28
derecognition of previously recognised tax losses 190 11284
unrelieved tax losses 1374 3809
adjustments in respect of prior year — 817
chargeable gains 152 —
utilisation of tax losses and other deductions 2391 —
expenses not deductible for tax 99 170
other tax effects — 28
total tax charge 390 10607
8 segment reporting
the chief operating decisionmaker who is responsible for allocating resources and assessing performance has been identified as the 
executive board the group is organised around the production and supply of one product multicrystalline silicon wafers accordingly 
the board reviews the performance of the group as a whole and there is only one operating segment disclosure of reportable segments 
under ifrs 8 is therefore not made
geographical information 2013
japan
€’000
china
€’000
rest of
asia
€’000
germany
€’000
united
kingdom
€’000
rest of
europe
€’000
rest of 
world
€’000
group
€’000
revenues
by entity’s country of domicile 17463 — — 12681 41298 — — 71442
by country from which derived 17356 2952 18214 9560 30 8351 14979 71442
noncurrent assets
by entity’s country of domicile 403 — — 1085 15533 — — 17021
 excludes financial instruments deferred tax assets and postemployment benefit assets
three customers accounted for more than 10 of group revenue each and sales to these customers are as follows figures in €’000 
1 16813 japan  
2 14979 rest of world and 
3 9575 germany
geographical information 2012 restated
japan
€’000
china
€’000
rest of
asia
€’000
germany
€’000
united
kingdom
€’000
rest of
europe
€’000
rest of 
world
€’000
group
€’000
revenues
by entity’s country of domicile 17086 — — 7926 21293 — — 46305
by country from which derived 17086 13180 7668 3488 15 4868 — 46305
noncurrent assets
by entity’s country of domicile 440 — — 9445 24469 — — 34354
 excludes financial instruments deferred tax assets and postemployment benefit assets
two customers accounted for more than 10 of group revenue each and sales to these customers are as follows figures in €’000 
1 17049 japan and 
2 13178 china wwwpvcrystaloxcom
66 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
9 earnings per share
net earnings per share is computed by dividing the net profitloss for the year attributable to ordinary shareholders by the weighted 
average number of ordinary shares outstanding during the year
diluted net earnings per share is computed by dividing the profitloss for the period by the weighted average number of ordinary shares 
outstanding and when dilutive adjusted for the effect of all potentially dilutive shares including share options
  2013 2012
basic shares average 381393715 405891335
basic profit per share – continuing operations euro cents 17 102
basic loss per share – discontinued operations 07 197
basic earningsloss per share euro cents 10 299
diluted shares average 383849862 405891335
diluted profit per share – continuing operations euro cents 17 102
diluted loss per share – discontinued operations 07 197
diluted earnings per share euro cents 10 299
basic shares and diluted shares for this calculation can be reconciled to the number of issued shares see note 28 as follows
2013 2012
shares in issue see note 28 416725335 416725335
weighted average number of ebt shares held 10740873 10834000
share consolidation including ebt shares 24590747 —
weighted average number of shares for basic eps calculation 381393715 405891335
dilutive share options 2456147 —
weighted average number of shares for fully diluted eps calculation 383849862 405891335
10 cash and cash equivalents
all shortterm deposits are interest bearing at the various rates applicable in the business locations of the group
as at 31 december
2013
€’000
2012
€’000
cash at bank and in hand 30486 33322
shortterm bank deposits 9414 61358
39900 94680
11 trade accounts receivable
as at 31 december
2013
€’000
2012
€’000
japan 5706 9459
germany 3638 711
united kingdom 4129 163
13473 10333
all receivables have shortterm maturity during the year receivables of €133238 2012 €771648  were written off overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 67
governance financial statements
11 trade accounts receivable continued
some of the unimpaired trade receivables are past due at the reporting date the age of financial assets past due but not impaired 
is as follows
as at 31 december
2013
€’000
2012
€’000
not more than three months 527 252
three months – six months — —
six months – nine months — 147
these amounts represent the group’s maximum exposure to credit risk at the year end all amounts outstanding as at 31 december 2013 
were received in january 2014
12 inventories
inventories include finished goods and work in progress ingots and blocks as well as production supplies the change in inventories 
is included in the consolidated statement of comprehensive income in the line “cost of materials”
as at 31 december
2013
€’000
2012
€’000
finished products 4440 18674
work in progress 3361 6413
raw materials 5208 13339
13009 38426
inventory writedowns of €07 million in 2013 are included in cost of materials 2012 restated €352 million
13 prepaid expenses and other assets
as at 31 december
2013
€’000
2012
€’000
subsidies due — 394
vat 1684 1316
prepaid expenses 9705 11444
energy tax claims 64 149
other current assets 51 757
11504 14060
prepaid expenses primarily comprise polysilicon feedstock deposits
14 current tax assets
as at 31 december
2013
€’000
2012
€’000
income tax recoverable 70 1365
income tax recoverable relates to tax paid at source on interest received 2013 and prior year profits that is expected to be recovered 
against later year losses 2012 wwwpvcrystaloxcom
68 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
15 intangible assets
patents
and
licences
€’000
software
under 
development
€’000
 
total
€’000
cost
at 1 january 2013 1526 — 1526
disposals 406 — 406
net effect of foreign currency movements 59 — 59
at 31 december 2013 1061 — 1061
accumulated amortisation
at 1 january 2013 1410 — 1410
charge for the year 60 — 60
disposals 406 — 406
net effect of foreign currency movements 47 — 47
at 31 december 2013 1017 — 1017
net book amount
at 31 december 2013 44 — 44
at 31 december 2012 116 — 116
patents
and
licences
€’000
software
under 
development
€’000
 
total
€’000
cost
at 1 january 2012 1587 10 1597
additions 27 — 27
reclassification 10 10 —
disposals 63 — 63
net effect of foreign currency movements 35 — 35
at 31 december 2012 1526 — 1526
accumulated amortisation
at 1 january 2012 1089 — 1089
charge for the year 215 — 215
impairment 132 — 132
disposals 2 — 2
net effect of foreign currency movements 24 — 24
at 31 december 2012 1410 — 1410
net book amount
at 31 december 2012 116 — 116
at 31 december 2011 498 10 508 overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 69
governance financial statements
16 property plant and equipment
freehold
land and
buildings
€’000
plant and
machinery
€’000
other
furniture and
equipment
€’000
assets under
construction
€’000
total
€’000
cost
at 1 january 2013 12955 184595 6972 1141 205663
additions — 81 43 2 122
reclassification — 1093 — 1093 —
disposals 12948 105767 2449 46 121210
net effect of foreign currency movements 7 1069 103 — 1179
at 31 december 2013 — 78933 4463 — 83396
accumulated depreciation
at 1 january 2013 12312 174949 6554 1042 194857
charge for the year 2 317 100 0 419
reclassification — 995 — 995 —
on disposals 12307 98334 2413 46 113100
net effect of foreign currency movements 7 1044 79 1 1131
at 31 december 2013 — 76883 4162 — 81045
net book amount
at 31 december 2013 — 2050 301 — 2351
at 31 december 2012 643 9646 418 99 10806
assets under construction related to future plant and machinery yet to be bought into production at which point they are reclassified as such 
freehold
land and
buildings
€’000
plant and
machinery
€’000
other
furniture and
equipment
€’000
assets under
construction
€’000
total
€’000
cost
at 1 january 2012 12944 175175 7105 8142 203366
additions 4 141 32 1082 1259
reclassification — 8250 4 8254 —
disposals — 27 163 — 190
net effect of foreign currency movements 7 1056 6 171 1228
at 31 december 2012 12955 184595 6972 1141 205663
accumulated depreciation
at 1 january 2012 1363 90827 3262 — 95452
charge for the year 409 15483 727 — 16619
impairment 10536 68209 2685 1042 82472
on disposals — 27 85 — 112
net effect of foreign currency movements 4 457 35 — 426
at 31 december 2012 12312 174949 6554 1042 194857
net book amount
at 31 december 2012 643 9646 418 99 10806
at 31 december 2011 11581 84348 3843 8142 107914
assets under construction related to future plant and machinery capital commitments at 31 december 2012 relating to this amounted 
to €01 million wwwpvcrystaloxcom
70 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
17 other longterm assets
as at 31 december
2013
€’000
2012
€’000
polysilicon feedstock deposits covering periods to 31 march 2018 14301 23098
prepaid expenses 68 76
other assets 257 258
14626 23432
18 deferred taxes
analysis of deferred tax assets and liabilities
2013
€’000
2012
€’000
tax loss carried forward — 190
deferred tax assets arising as a result of losses are recognised where based on the group’s budget they are expected to be realised 
in the foreseeable future
as at 31 december 2013 there were unrecognised potential deferred tax assets in respect of losses of €481 million 2012 €506 million
the gross movement on the deferred income tax account is as follows
 
2013
 €’000
2012
€’000
at 1 january 190 11137
exchange differences — 335
derecognition of deferred tax assets 190 11284
income statement charge — 2
at 31 december — 190
the movement in deferred tax assets and liabilities during the year without taking into consideration the offsetting of balances within the 
same tax jurisdiction is as follows
deferred tax liabilities
elimination 
of intra
company
losses other total
at 1 january 2012 7986 197 8183
credited to the statement of comprehensive income 8251 197 8448
exchange differences 265 — 265
at 31 december 2012 — — —
at 31 december 2013 — — —
deferred tax assets
 elimination 
of intra
company 
gains
 tax 
losses
impairment
losses other total
at 1 january 2012 — 10950 8118 252 19320
credited to the statement of comprehensive income — 11094 8384 252 19730
exchange differences — 334 266 — 600
at 31 december 2012 — 190 — — 190
credited to the statement of comprehensive income — 190 — — 190
exchange differences — — — — —
at 31 december 2013 — — — — — overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 71
governance financial statements
19 loans payable
as at 31 december
underwriter
2013
€’000
2012
€’000 maturity
interest
rate
sumitomo mitsui banking corporation “smbc” 690 5284 0114 095
all current loans are in japanese yen
securitycomfort for the smbc loans is provided by the japanese accounts receivable details of which can be found in note 11 
this facility has been reduced upon renewal in line with the lower receivables
20 trade accounts payable
as at 31 december
2013
€’000
2012
€’000
japan 853 2141
united kingdom 1348 3527
germany 626 1033
2827 6701
the book value of these payables is materially the same as the fair value
21 accrued expenses
2013
€’000
2012
€’000
rents and ancillary rent costs 295 343
repayment of grants and subsidies including interest thereon — 21302
contract volume penalties 1153 1529
other accrued expenses 1241 1832
current accruals 2689 25006
noncurrent accruals 146 142
total accruals 2835 25148
22 provisions
movement in provisions is shown below
warranty
provisions
€’000
restructuring 
costs
€’000
onerous
contract
provision
€’000
total
€’000
provisions brought forward 33 5242 52047 57322
unwinding of discount factor — — 4597 4597
chargedcredited to the statement of comprehensive income 4 2179 11652 13827
exchange differences — — 5736 5736
utilised — 3063 12730 15793
provisions carried forward 37 — 26526 26563
warranty
provisions
€’000
restructuring 
costs
€’000
onerous
contract
provision
€’000
total
€’000
shortterm element 37 — 12557 12594
longterm element — — 13969 13969
provisions carried forward 37 — 26526 26563
warranty provisions unwind over a year from the date of sale per the terms of the warranty agreement with customers
restructuring cost provision is for the costs of the group restructure
the onerous contract provision is an allowance for the loss arising on the difference between raw material costs under these contracts and 
the anticipated selling price of the group’s end product this is discussed further in note 1 this provision will unwind over the length of 
the contracts between two and five years wwwpvcrystaloxcom
72 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
23 deferred grants and subsidies
the grants from governmental institutions are bound to specific terms and conditions the group is obliged to observe retention periods 
of five years for the respective assets in the case of investment subsidies as well as of five years for assets under investment grants and to 
retain a certain number of jobs created in conjunction with the underlying assets in cases of breach of the terms the grants received must 
be repaid in the past the grants received were subject to periodic audits which were concluded without significant findings or adjustments
the deferred grants and subsidies in the year under review consist of the following
as at 31 december
2013
€’000
2012
€’000
investment grants 152 210
current portion 152 210
24 current tax liabilities
as at 31 december
2013
€’000
2012
€’000
united kingdom 43 —
germany 155 13
japan 1 —
199 13
current tax liabilities comprise both corporation and other nonvat tax liabilities calculated or estimated by the group companies 
as well as corresponding taxes payable abroad due to local tax laws including probable amounts arising on completed or current tax audits
25 other current liabilities
as at 31 december
2013
€’000
2012
€’000
vat liability — 99
payroll liabilities 23 170
other liabilities 27 260
50 529
26 deferred revenue
where appropriate the group enters into longterm contracts with its customers and may request payment deposits from them ahead of 
the supply of goods at 31 december 2013 such deposits amounted to €33 million from one customer 2012 €33 million from one customer
as at 31 december
2013
€’000
2012
€’000
current 3342 3348
27 pension surplusbenefit
the obligation relates to fixed postretirement payments for two employees and includes benefits for surviving spouses granted in 2005 
the plan will be fully funded upon retirement of the employees by insurance contracts held and paid in by the group in case of insolvency the 
benefits have been ceded to the employees directly therefore the fair value of the insurance contracts has been treated as a plan asset 
the scheme is not significant to the group
28 share capital
ordinary shares of 52 pence each 2012 20 pence
2013
shares
2013
€’000
2012
shares
2012
€’000
allotted called up and fully paid
at 1 january 416725335 12332 416725335 12332
share consolidation note 35 256446360 — — —
at 31 december 160278975 12332 416725335 12332
at 31 december 2013 4100326 shares were held by the ebt 2012 10834000 the market value of these shares was €712k 2012 €1524k overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 73
governance financial statements
28 share capital continued
summary of rights of share capital
the ordinary shares are entitled to receipt of dividends on winding up their rights are restricted to a repayment of the amount paid up 
to their share in any surplus assets arising the ordinary shares have full voting rights
b shares at 725 pence each
2013
shares
2013
€’000
2012
shares
2012
€’000
issued and fully paid
at 1 january — — — —
issue of b shares 288216112 25096 — —
redemption of b shares 288216112 25096 — —
at 31 december — — — —
on 27 november 2013 288216112 b shares were issued at 725 pence each resulting in a total of €25096 million £20896 million being 
credited to the b share capital account in “other reserves” on 4 december 2013 288216112 b shares were redeemed at 725 pence 
each and an amount of €25096 million £20896 million was deducted from the b share capital account in “other reserves”
c sharesdeferred shares at 00000001 pence each
2013
shares
2013
€’000
2012
shares
2012
€’000
issued and fully paid
at 1 january — — — —
issue of c shares 128509223 — — —
at 31 december 128509223 — — —
on 27 november 2013 128509223 c shares were issued at 00000001 pence each resulting in a total of €016 being credited to the c share 
capital account on 11 december 2013 these shares paid a dividend of 725 pence each totalling €11189 million £9317 million and 
were immediately reclassified as deferred shares of 00000001 pence each the deferred shares remain outstanding at the year end
29 sharebased payment plans and return of cash to shareholders
in december 2013 a return of cash was made to all shareholders amounting to €363 million in cash 725 pence per share equivalent 
to approximately 87 cents per share by way of a b and c share scheme which gave shareholders other than certain overseas subsidiaries 
a choice between receiving the cash in the form of income or capital the return of cash was accompanied by a 5 for 13 share consolidation 
to maintain broad comparability of the share price and return per share of the ordinary shares before and after the creation of the b and 
c shares
as a result of this broad comparability of the share price the board has agreed following a recommendation by the remuneration 
committee not to alter outstanding awards as a result of the share consolidation thus outstanding awards which were previously based 
on ordinary shares of 2 pence each are now the same number of ordinary shares of 52 pence each
sharebased payment plans
the group established the pv crystalox solar plc ebt on 18 january 2007 which has acquired and may in the future acquire 
the company’s ordinary shares for the benefit of the group’s employees
the group currently has three share incentive plans in operation which are satisfied by grants from the ebt
pv crystalox solar plc performance share plan “psp”
this plan was approved by shareholders at the 2011 agm under which awards are made to employees including executive directors 
consisting of a conditional right to receive shares in the company the awards will normally vest after the end of a three year performance 
period to the extent that performance conditions are met as detailed in the directors’ remuneration report see page 39
no awards were made during 2013 2012 nil
on 26 may 2011 awards over up to 3038454 ordinary shares were granted to key senior employees including the three executive 
directors these awards are subject to achieving growth in both total shareholder return and earnings per share in the performance 
period ending on 31 december 2013 
pv crystalox solar plc executive directors deferred share plan “eddsp”
at the agm on 28 may 2009 a bonus plan with deferred share element for executive directors was approved by the company’s shareholders 
in the context of bringing the arrangements more in line with market practice and aligning executive directors’ pay more closely with the 
interests of the company’s shareholders half of each bonus was to be payable in cash and the other half deferred and payable in shares 
under the eddsp which vests three years after the award date awards of deferred shares under the eddsp are to be satisfied on vesting 
by the transfer of shares from the existing pv crystalox solar plc employee benefit trust 
no awards were made during 2013 2012 nil on 24 march 2011 awards over 358423 shares were made to executive directors wwwpvcrystaloxcom
74 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
29 sharebased payment plans and return of cash to shareholders continued
sharebased payment plans continued
pv crystalox solar plc long term incentive plan “ltip” 
this is a longterm incentive scheme under which awards are made to employees consisting of the right to acquire ordinary shares for 
a nominal price subject to the achievement of specified performance conditions at the end of the vesting period which is not less than 
three years from the date of grant under the ltip it is possible for awards to be granted which are designated as a performance share 
award a market value option or a nil cost option to date performance share awards and market value options have been granted
performance share award “psa”
a psa is a conditional award of a specified number of ordinary shares which may be acquired for nil consideration the psas granted to 
date have all been initial awards where there is no specified performance condition the vesting period of each award is three years from 
the date of grant
no awards were issued in 2013 2012 nil no awards are outstanding under this scheme
market value option “mvo” 
an mvo is an option with an exercise price per share equal to the market value of a share on the date of grant the vesting period of each 
award is three years from the date of grant and the award must be exercised no later than ten years following the date of grant
on 24 november 2008 an mvo over 200000 ordinary shares was granted to a senior employee and this option is exercisable from 
24 november 2011 at £100 per share subject to an agreed performance criteria this option is now exercisable at any time until 
23 november 2018
on 26 march 2009 an mvo over 200000 ordinary shares was granted to a senior employee and this option is exercisable from 26 march 2012 
at 76 pence per share subject to an agreed performance criteria and on 25 september 2009 mvo awards over 1200000 ordinary shares 
were granted to key senior employees and these options are exercisable from 25 september 2012 at 769 pence per share subject to 
agreed performance criteria
no awards were issued in 2013 2012 nil
pv crystalox solar plc share incentive plan “sip”
the sip is an employee share scheme approved by hm revenue and customs in accordance with the provisions of schedule 8 to the 
finance act 2000 on 26 february 2008 awards were granted to uk employees of 500 shares each over a total of 37000 ordinary shares of 
2 pence these 37000 ordinary shares of 2 pence each were transferred from the ebt into the sip during 2012 awards over 1000 shares 
were forfeited by employees leaving the group during 2011 awards of 3500 shares were forfeited by employees leaving the group and 
awards over 8500 shares vested due to employees leaving the group as good leavers due to redundancy or retirement the shares in 
the sip were subject to the share consolidation so that each holding of 500 ordinary shares of 2 pence became a holding of 192 shares 
of 52 pence following the 5 for 13 share consolidation in 2013 
the group recognised total expenses before tax of €103000 2012 €319000 related to equitysettled sharebased payment transactions 
during the year
the number of share options and weighted average exercise price waep for each of the schemes is set out as follows
psp
number
eddsp
number
mvo
number
mvo waep
 price 
pence
sip
number
share grants and options outstanding at 1 january 2012 3038454 419568 1600000 797 25000
share grants and options granted during the year — — — — —
share grants and options forfeited during the year — — — — 1000
share grants vested during the year — — — — —
options exercised during the year — — — — —
share grants and options outstanding at 31 december 2012 3038454 419568 1600000 797 24000
exercisable at 31 december 2012 — — 1600000 797 —
share grants and options granted during the year — — — — —
share grants and options forfeited during the year 852723 — 200000 — —
share grants vested during the year — 173152 — — —
impact of share consolidation 14784
options exercised during the year — — — — —
share grants and options outstanding at 31 december 2013 2185731 246416 1400000 797 9216
exercisable at 31 december 2013 — — 1400000 797 —
 the weighted average exercise price for the psp psa and sip options is £nil
no share options were exercised during the year and no options were exercised in 2012 overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 75
governance financial statements
30 risk management
the main risks arising from the group’s financial instruments are credit risk exchange rate fluctuation risks interest rate risk 
and liquidity risk the board reviews and determines policies for managing each of these risks and they are as such summarised below 
these policies have been consistently applied throughout the period
credit risk
the main credit risk arises from accounts receivable all trade receivables are of a shortterm nature with maximum payment terms 
of 150 days although the majority of customers currently have payment terms of 45 days in order to manage credit risk local management 
defines limits for customers based on a combination of payment history and customer reputation credit limits are reviewed by local 
management on a regular basis as a supplier to some of the leading manufacturers of solar cells the group has a limited number 
of customers in 2013 235 of the group’s sales are related to the largest customer 2012 368 the number of customers accounting for 
approximately 95 of the annual revenue remained constant at twelve the same as that in 2012 where appropriate the group requests 
payment or part payment in advance of shipment which generally covers the cost of the goods different forms of retention of title are 
used for security depending on local restrictions prevalent on the respective markets the maximum credit risk to the group is the total 
of accounts receivable details of which can be seen in note 11
cash is not considered to be a high credit risk due to all funds being immediately available consideration being given to the institution 
in which it is deposited and the setting of counterparty limits all institutions used have a minimum moody’s credit rating of ba3
exchange rate fluctuation risks
a portion of sales revenue is invoiced in foreign currencies potentially exposing the group to exchange rate risks in the financial 
year 2013 about €175 million 2012 €171 million of the group’s sales was generated in japanese yen expenses of €114 million 
2012 €127 million were invoiced in japanese yen and were allocated to cost of materials and other operating expenses
significant cash funds are denominated in currencies other than the presentational currency of the group excess cash funds not 
needed for local sourcing are exposed to exchange rate and associated interest fluctuation risks particularly so in the united kingdom 
the exchange rate risk is based on assets held in currencies other than euros
the group sells its products in a number of currencies mainly euros japanese yen and us dollars and also purchases goods 
and services in a number of currencies mainly euros japanese yen sterling and to a small extent us dollars 
the following exchange rates were used to translate individual companies’ financial information into the group’s presentational currency
average 
rate
year end 
rate
euro japanese yen 129659 144877
sterling euro 117820  119790
hedging strategy
the group sells to customers in the worldwide photovoltaic market and sells in three main currencies us dollars 58 japanese yen 
24 and euros 8 it operates its wafering factory within the euro zone and pays for the subcontracting of wafer production in japan 
in japanese yen however the ingot manufacturing operation is within the united kingdom and therefore a relatively small proportion of overall 
costs are in sterling being mainly related to personnel costs overheads and utilities most of the raw materials are purchased in euros 
and japanese yen additionally the group has a relatively large debtor book in japan denominated in japanese yen and this is subjected 
to exchange rate fluctuation of that currency this is partially hedged by japanese yen borrowings this process continues to be under review 
the group is to a certain extent naturally hedged at an operating level because it buys a significant proportion of its raw materials and 
services in euros and japanese yen although in the year under review there is residual exchange rate risk to a certain extent in euros and 
also in respect of us dollar income 
after careful consideration and after taking into account the group’s partial natural operating hedging position coupled with its policy 
of matching borrowings in japanese yen with japanese yen assets the directors have adopted a longterm policy of setting off any 
downside risks of currency fluctuation against the associated upside risks
during 2013 the japanese yeneuro exchange rate decreased by 2760 2012 decreased 1326 the impact of this change on the 
consolidated statement of comprehensive income was to decrease sales revenues by approximately 67 2012 decrease 49 
and decrease the cost of materials and services by approximately 83 2012 decrease 14 
for each 1 increase in the japanese yeneuro exchange rate profits would increase by approximately €10 million 2012 decrease 
by €03 million the effect of the movement in the japanese yeneuro exchange rate on assets held in japanese yen has been considered 
group management has arranged borrowings in japanese yen so that these partially offset asset balances held in that currency 
therefore based on japanese yen asset balances on 31 december 2013 each 1 movement in the japanese yeneuro exchange rate 
would have a very small effect on the currency translation adjustment of €005 million 2012 an immaterial amount wwwpvcrystaloxcom
76 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
30 risk management continued
hedging strategy continued
during 2013 the net gain on foreign currency adjustments was €31 million 2012 gain of €24 million this gain was mainly related to 
the conversion of currency balances in respect of group advances or loans currency debtorcreditor balances currency advance payments 
to raw material suppliers and currency cash balances these can be broken down into the following broad categories
2013
€’million
2012
€’million
revaluation of cash balances 10 04
revaluation of group loansintercompany account 05 05
revaluation of group raw material deposits 07 10
accounts receivableaccounts payable revaluation 01 14
revaluation of balance sheet provisions 42 21
total currency gain 31 24
in addition to the above upon translation of net assets in the consolidation there was a negative impact in 2013 of €50 million 
2012 negative €13 million recording as a currency translation adjustment which is shown in the consolidated statement of 
comprehensive income as “other comprehensive income”
interest rate risk
the group is exposed to interest rate fluctuation risks since the group’s loan agreements largely are subject to variable interest rates 
all variable interest rate loans are of a shortterm nature with a maturity of less than twelve months the borrowings of €07 million 
at the end of 2013 are in japanese yen 2012 €53 million accordingly there is a downside risk that japanese yen interest rates may 
increase substantially from the current relatively low levels although the low level of current borrowings means that this risk equates 
to an insignificant amount additionally the group has a regular strong japanese yen income sufficient to repay the loans if group 
management wished to do so within a twelve month time scale
on 31 december 2013 the group borrowings in japanese yen were €07 million 2012 €53 million at an interest rate of approximately 095 
2012 average rate 078 for each 1 rise in the japanese yen interest rates group interest costs would increase by approximately 
€7000 2012 €53000 accordingly group profits and equity would fall or rise after corporation tax in japan by approximately €3500 
2012 €26500
further sensitivity analysis of the accruals and loans outstanding at the year end has not been disclosed as these are virtually all current 
and paid in line with standard payment terms
the group’s borrowings in japanese yen are also current and have no set repayment plan being secured on the japanese receivables book 
the interest on this loan is paid monthly in arrears
the group had a significant cash balance at the end of 2013 of €399 million 2012 €894 million and places these cash funds on deposit 
with various quality banks subject to a counter party limit of €15 million accordingly there is an interest rate risk in respect of interest 
receivable which amounted to €08 million in the year 2012 €08 million therefore even if average interest rates applicable to our 
cash deposits fell to zero there would be limited effect on group profits 
liquidity risk
liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due the group manages its exposure 
to liquidity risk by regularly reviewing net debt and forecast cash flows to ensure that current cash resources are available to meet its 
business objectives the group is exposed to the worldwide photovoltaic market and due to overcapacity this market has suffered large 
decreases in sales pricing over the two years until the end of 2012 although there has been some stabilisation of prices during 2013 and 
small increases from december 2013 accordingly the market pricing of the group’s main product silicon wafers has been under pressure 
against this difficult market background group management has put in place a cash conservation plan which involved instigating various 
measures so that the group can optimise its cash position whilst these conditions persist various measures have been taken to adjust 
production to levels appropriate to current market conditions at the same time production capacity has been maintained so that this can 
be utilised when market conditions allow the cash conservation plan covers the period until 31 december 2014 due to changing market 
and economic conditions the expenses and liabilities actually arising from this plan in the future may differ materially from the estimates 
made on the basis of these actuarial assumptions 
on 31 december 2013 the group had a net cash balance of €392 million 2012 €894 million and this together with cash flow projections 
from the cash conservation plan indicate assuming the projections are broadly correct that the group will have adequate cash reserves 
until at least twelve months beyond the signing of the accounts 
the group also regularly monitors its compliance with its debt covenants during the financial year all covenants have been complied 
with the group has borrowing facilities in japanese yen which are available to be drawn overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 77
governance financial statements
30 risk management continued
financial assets and liabilities
book
value
€’000
loan and
receivables
€’000
amortised
cost
€’000
non
financial
€’000
total
€’000
2013
assets
cash and cash equivalents 39900 39900 — — 39900
accounts receivable 13473 13473 — — 13473
prepaid expenses and other assets 11504 51 — 11453 11504
nonfinancial assets 30213 — — 30213 30213
total 95090 53424 — 41666 95090
liabilities
loans payable shortterm 690 — 690 — 690
accounts payable trade 2827 — 2827 — 2827
accrued expenses 2835 — 2835 — 2835
provisions 26563 — — 26563 26563
miscellaneous current liabilities 50 — — 50 50
miscellaneous longterm liabilities 43 — 43 — 43
nonfinancial liabilities 3693 — — 3693 3693
total 36701 — 6395 30306 36701
2012
assets
cash and cash equivalents 94680 94680 — — 94680
accounts receivable 10333 10333 — — 10333
prepaid expenses and other assets 14060 1151 — 12909 14060
nonfinancial assets 74376 — — 74376 74376
total 193449 106164 — 87285 193449
liabilities
loans payable shortterm 5284 — 5284 — 5284
accounts payable trade 6701 — 6701 — 6701
accrued expenses 25148 — 22831 2317 25148
provisions 57322 — — 57322 57322
miscellaneous current liabilities 529 — — 529 529
miscellaneous longterm liabilities 43 — 43 — 43
nonfinancial liabilities 3571 — — 3571 3571
total 98598 — 34859 63739 98598
capital management
the group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide 
returns to shareholders and other stakeholders and to maintain an optimal capital structure that strikes the appropriate balance 
between risk and the cost of capital
in order to maintain or adjust the capital structure the group may adjust the amount of dividends paid to shareholders return capital 
to shareholders issue new shares or sell assets to reduce debt
the group from time to time uses debt as a natural hedging instrument where amounts are borrowed in the same foreign currency as 
it holds assets for instance debtors denominated in the same foreign currency however these borrowings have always been lower than 
the balance of cash and cash equivalents in any period accordingly the group has maintained a net cash positive position this is a 
different approach to others in the photovoltaic industry where being heavily indebted particularly in china has become the norm the 
directors believe that the group’s policy of not carrying any net debt has significantly reduced the group’s risk which has been particularly 
important during the current extremely difficult market conditions
the group defines capital as all elements of equity wwwpvcrystaloxcom
78 pv crystalox solar plc  annual report and accounts 2013
notes to the consolidated financial statements continued
for the year ended 31 december 2013
30 risk management continued
capital management continued
the group’s capital plus its cash and cash equivalents is set out in the following table the group is not subject to any externally 
imposed capital requirements
2013
€000
2012
€000
cash and cash equivalents see note 10 39900 94680
bank and other borrowings see note 19 690 5284
total net cash 39210 89396
total equity 58384 94851
the group is net cash positive and therefore does not have any gearing accordingly the leverage ratio has no meaning and has not 
been calculated 
31 calculation of fair value
there are no publicly traded financial instruments eg publicly traded derivatives and securities held for trading and availableforsale 
securities nor any other financial instruments held at fair value
32 contingent liabilities
the group did not assume any contingent liabilities for third parties no material litigation or risks from violation of third parties’ rights 
or laws that could materialise in 2014 or beyond are pending at the time of approval of these financial statements
33 other financial obligations
lease agreements operating leases
the leases primarily relate to rented buildings and have terms of no more than ten years financial obligations resulting from operating 
leases become due as follows
as at 31 december
2013
€’000
2012
€’000
less than one year 1428 1854
two to five years 2105 2969
longer than five years 1033 1578
4566 6401
the land and buildings used by the group are rented the contracts have durations of up to ten years in some cases there are options 
to extend the rental period
there were no significant purchase commitments at the year end
34 related party disclosures
related parties as defined by ias24 comprise the senior executives of the group and also companies that these persons could have 
a material influence on as related parties as well as other group companies during the reporting year none of the shareholders had 
control over or a material influence in the parent company 
transactions between the company and its subsidiaries have been eliminated on consolidation
the remuneration of the directors who are the key management personnel of the group is set out in the audited part of the directors’ 
remuneration report on pages 29 to 41
35 dividends and return of cash
in december 2013 a return of cash was made to all shareholders of 725 pence per share by way of a b and c share scheme which gave 
shareholders other than certain overseas subsidiaries a choice between receiving the cash in the form of income or capital the return 
of cash was accompanied by a 5 for 13 share consolidation to maintain broad comparability of the share price and return per share of the 
ordinary shares before and after the creation of the b and c shares the return of cash was approved by shareholders on 19 november 2013
shareholder return
2013 
€000
2012 
€000
income option c share 11189 —
capital option b share 25096 —
total shareholder return 36285 —
no other dividends were paid in 2013 2012 £nil overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 79
governance financial statements
36 discontinued operations
analysis of the result of discontinued operations and the result recognised on the remeasurement of assets is as follows
as at 31 december
2013
€’000
2012
€’000
revenue 316 19
expenses 2169 80099
loss before tax of discontinued operations 1853 80080
tax 2 —
loss after tax of discontinued operations 1855 80080
pretax loss recognised on the remeasurement of assets of disposal group 722 —
tax — —
after tax loss recognised on the remeasurement of assets of disposal group 722 —
loss for the year from discontinued operations 2577 80080
cash flows relating to the discontinued operations were as follows
as at 31 december
2013
€’000
2012
€’000
operating cash flows 3488 10197
investing cash flows 12261 148
15749 10345
37 post balance sheet events
there are no significant post balance sheet events wwwpvcrystaloxcom
80 pv crystalox solar plc  annual report and accounts 2013
independent auditors’ report
to the members of pv crystalox solar plc
report on the company financial statements
our opinion  
in our opinion the company financial statements defined below
  give a true and fair view of the state of the company’s affairs as at 31 december 2013
  have been properly prepared in accordance with united kingdom generally accepted accounting practice and
  have been prepared in accordance with the requirements of the companies act 2006
this opinion is to be read in the context of what we say in the remainder of this report
what we have audited
the company financial statements which are prepared by pv crystalox solar plc comprise
  the company balance sheet as at 31 december 2013 and
  the summary of accounting policies and notes to the company financial statements which includes other explanatory information
the financial reporting framework that has been applied in their preparation comprises applicable law and united kingdom accounting 
standards united kingdom generally accepted accounting practice
in applying the financial reporting framework the directors have made a number of subjective judgements for example in respect 
of significant accounting estimates in making such estimates they have made assumptions and considered future events
what an audit of financial statements involves 
we conducted our audit in accordance with international standards on auditing uk  ireland “isas uk  ireland” an audit involves 
obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the 
financial statements are free from material misstatement whether caused by fraud or error this includes an assessment of
  whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and 
adequately disclosed
  the reasonableness of significant accounting estimates made by the directors and 
  the overall presentation of the financial statements 
in addition we read all the financial and nonfinancial information in the annual report and accounts the “annual report” to identify 
material inconsistencies with the audited company financial statements and to identify any information that is apparently materially 
incorrect based on or materially inconsistent with the knowledge acquired by us in the course of performing the audit if we become 
aware of any apparent material misstatements or inconsistencies we consider the implications for our report
opinions on other matters prescribed by the companies act 2006
in our opinion
  the information given in the strategic report and the directors’ report for the financial year for which the company financial 
statements are prepared is consistent with the company financial statements and
  the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the companies act 2006
other matters on which we are required to report by exception
adequacy of accounting records and information and explanations received
under the companies act 2006 we are required to report to you if in our opinion
  we have not received all the information and explanations we require for our audit or
  adequate accounting records have not been kept by the company or returns adequate for our audit have not been received from 
branches not visited by us or
  the company financial statements and the part of the directors’ remuneration report to be audited are not in agreement with the 
accounting records and returns
we have no exceptions to report arising from this responsibility
directors’ remuneration
under the companies act 2006 we are required to report to you if in our opinion certain disclosures of directors’ remuneration specified 
by law have not been made we have no exceptions to report arising from this responsibility
other information in the annual report
under isas uk  ireland we are required to report to you if in our opinion information in the annual report is
  materially inconsistent with the information in the audited company financial statements or
  apparently materially incorrect based on or materially inconsistent with our knowledge of the company acquired in the course 
of performing our audit or
  is otherwise misleading
we have no exceptions to report arising from this responsibility  overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 81
governance financial statements
responsibilities for the financial statements and the audit
our responsibilities and those of the directors 
as explained more fully in the directors’ responsibilities statement set out on page 46 the directors are responsible for the preparation 
of the company financial statements and for being satisfied that they give a true and fair view 
our responsibility is to audit and express an opinion on the company financial statements in accordance with applicable law and isas 
uk  ireland those standards require us to comply with the auditing practices board’s ethical standards for auditors 
this report including the opinions has been prepared for and only for the company’s members as a body in accordance with chapter 3 of 
part 16 of the companies act 2006 and for no other purpose we do not in giving these opinions accept or assume responsibility for any 
other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our 
prior consent in writing
other matter
we have reported separately on the group financial statements of pv crystalox solar plc for the year ended 31 december 2013
sam taylor senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
reading
19 march 2014 wwwpvcrystaloxcom
82 pv crystalox solar plc  annual report and accounts 2013
accounting policies
basis of accounting
the financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with the 
companies act 2006 and applicable accounting standards in the united kingdom these policies have been applied consistently to all 
the years presented unless otherwise stated
the group accounts have complied with the statutory obligation to disclose nonaudit remuneration
profit and losses of the parent company
the company has taken advantage of section 408 of the companies act 2006 excluding it from presenting a company only statement 
of profit and loss and related notes
cash flow statement 
a consolidated cash flow statement is included in the pv crystalox solar plc group accounts
employment benefit trust “ebt”
all assets and liabilities of the ebt have been included in these financial statements as the company has de facto control over the trust’s 
net assets as its sponsoring company 
fixed asset investments 
fixed asset investments are included at cost and reviewed annually for impairment consistent with their assessment for note 8 of the 
notes to the consolidated financial statements the directors consider the group to form one income generating unit therefore 
the impairment assessment is performed for whole investment balance rather than individually 
financial instruments – classification as equity or financial liability
financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into 
a financial liability exists where there is a contractual obligation to deliver cash or another financial asset to another entity or to exchange 
financial assets or financial liabilities under potentially unfavourable conditions in addition contracts which result in the entity delivering 
a variable number of its own equity instruments are financial liabilities shares containing such obligations are classified as financial liabilities 
finance costs and gains or losses relating to financial liabilities are included in the profit or loss the carrying amount of the liability 
is increased by the finance cost and reduced by payments made in respect of that liability finance costs are calculated so as to produce 
a constant rate of charge on the outstanding liability 
an equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities 
dividends and distributions relating to equity instruments are debited directly to reserves 
deferred taxation
deferred tax is recognised on all timing differences where the transactions or events that give the company an obligation to pay more tax 
in the future or a right to pay less tax in the future have occurred by the balance sheet date deferred tax assets are recognised when it 
is more likely than not that they will be recovered deferred tax is measured using rates of tax that have been enacted or substantively 
enacted by the balance sheet date
deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the years in which timing differences 
reverse based on tax rates and laws enacted or substantively enacted at the balance sheet date
sharebased payment
the company issues equitysettled sharebased payments to certain employees of the group these are measured at their fair value 
at the date of the grant using an appropriate option pricing model and are expensed over the vesting year based on the estimate of the 
number of shares that will eventually vest during 2009 the group granted share options to employees the share options granted are 
subject to performance criteria required for the option to vest and are considered in the method of measuring fair value 
charges made to the profit and loss account in respect of sharebased payments are credited to the sharebased payment reserve 
costs incurred by the issue of equitysettled sharebased awards to the employees of subsidiaries are recharged to the relevant company
foreign currencies
monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date
transactions in foreign currencies during the year are recorded at the foreign exchange rate ruling at the date appropriate for the transaction overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 83
governance financial statements
company balance sheet
as at 31 december 2013
notes
2013
£’000
2012
£’000
fixed assets
investments 1 61559 54908
current assets
debtors 2 2228 952
cash at bank and in hand 1118 19075
creditors amounts falling due within one year 4 267 337
net current assets 3079 19690
total assets less current liabilities 64638 74598
capital and reserves
called up equity share capital 6 8335 8335
share premium account 30353 51248
other reserves 20896 —
investment in own shares 5476 6350
sharebased payment reserve 1055 950
profit and loss account 7 9475 20415
shareholders’ funds 8 64638 74598
the financial statements were approved and authorised for issue by the board of directors and signed on its behalf by
dr peter finnegan company number
chief financial officer 06019466
19 march 2014  wwwpvcrystaloxcom
84 pv crystalox solar plc  annual report and accounts 2013
notes to the company financial statements
for the year ended 31 december 2013
1 investments
shares in subsidiary undertakings
£’000
cost and net book value
at 1 january 2013 54908
additions 14151
disposals 7500
at 31 december 2013 61559
additions in the year relate to the acquisition of the assets of crystalox solar limited
disposals in the year relate to the liquidation of pv crystalox solar gmbh resulting in an impairment of £1255 million
at 31 december 2013 the company held 100 of the allotted ordinary share capital of the following undertakings
subsidiary
country of
incorporation activity
proportion
held

crystalox solar limited uk holding company 100
crystalox limited uk trading company 100
pv crystalox solar kk japan trading company 100
pv crystalox solar silicon gmbh germany trading company 100
 held indirectly through crystalox solar ltd
these subsidiaries are consolidated in the group financial statements included in this document
the directors believe that the carrying value of the investments is supported by their underlying net assets
2 debtors
2013
£’000
2012
£’000
amounts owed by group undertakings 1435 926
other debtors 789 18
prepayments and accrued income 4 8
2228 952
amounts owed by group undertakings are unsecured at varying rates of interest and are repayable on demand
3 employee benefit trust
the company established the ebt a jerseybased employee benefit trust on 18 january 2007 which has acquired and may in the 
future acquire the company’s ordinary shares for the benefit of the group’s employees a number of share grants including the grant 
of share options were made to key employees a share incentive plan has also been established that enabled the grant of 500 shares 
each to all employees in january 2008 details of these arrangements are set out in note 29 shares in respect of the pv crystalox plc 
executive directors deferred share plan that had been granted in 2009 and 2010 vested in the year and transferred to the individuals 
for nil consideration
shares held by the ebt
2013
number
2012
number
opening balance number of shares at 20 pence 10834000 10834000
vesting of shares granted in 2009 61145 —
vesting of shares granted in 2010 good leaver on retirement ha aulich 112007 —
subtotal 10660848 10834000
share consolidation 5 new ordinary shares of 52 pence for 13 old ordinary shares of 20 pence 6560522 —
closing balance number of shares at 52 pence 2012 20 pence 4100326 10834000
at 31 december 2013 4100326 ordinary shares of 52 pence were held by the ebt 2012 10834000 ordinary shares of 2 pence the market 
value of these shares was £595k 2012 £1246k additionally the ebt received cash in december 2013 following its election for b shares in the 
return of cash to shareholders the cash balance held by the ebt on 31 december 2013 was £790k overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 85
governance financial statements
4 creditors amounts falling due within one year
2013
£’000
2012
£’000
accruals and deferred income 267 337
5 related party transactions
the company has taken advantage of the frs 8 exemption to not disclose transactions with other wholly owned members of its group 
transactions with key management personnel are disclosed in the group accounts
6 called up share capital
the return of cash to shareholders see note 11 was accompanied by a 5 for 13 share consolidation to maintain broad comparability 
of the share price and return per share before and after the creation of the b and c shares
ordinary shares of 52 pence each 2012 20 pence
2013
shares
2013
£’000
2012
shares
2012
£’000
allotted called up and fully paid
at 1 january 416725335 8335 416725335 8335
share consolidation note 35 256446360 — — —
at 31 december 160278975 8335 416725335 8335
7 reconciliation of movements in shareholders’ funds
share
capital
£’000
share
premium
£’000
other
reserves
£’000
shares
held
by the
ebt
£’000
sharebased
payment
reserve
£’000
retained
earnings
£’000
total
equity
£’000
as at 1 january 2012 8335 51248 — 6350 624 21083 74940
dividends paid in the year — — — — — — —
sharebased payment charge — — — — 326 — 326
transactions with owners — — — — 326 — 326
loss for the year — — — — — 668 668
total comprehensive income — — — — — 668 668
as at 31 december 2012 8335 51248 — 6350 950 20415 74598
as at 1 january 2013 8335 51248 — 6350 950 20415 74598
shareholder return — — — — — 30213 30213
issue and redemption of b shares — 20896 20896 — — — —
sharebased payment charge — — — — 105 — 105
award of shares — — — 101 — — 874
b share capital in shares for the ebt — — — 773 — — 773
transactions with owners — 20896 20896 874 105 30213 29234
profit for the year — — — — — 19273 19273
total comprehensive income — — — — — 19273 19273
as at 31 december 2013 8335 30353 20896 5476 1055 9475 58384 wwwpvcrystaloxcom
86 pv crystalox solar plc  annual report and accounts 2013
8 sharebased payment plans
the group established the pv crystalox solar plc ebt on 18 january 2007 which has acquired and may in the future acquire 
the company’s ordinary shares for the benefit of the group’s employees
the group currently has three share incentive plans in operation which are satisfied by grants from the ebt
pv crystalox solar plc performance share plan “psp”
this plan was approved by shareholders at the 2011 agm under which awards are made to employees including executive directors 
consisting of a conditional right to receive shares in the company the awards will normally vest after the end of a three year performance 
period to the extent that performance conditions are met as detailed in the directors’ remuneration report see page 39 
no awards were made during 2013 2012 nil
on 26 may 2011 awards over up to 3038454 ordinary shares were granted to key senior employees including the three executive 
directors these awards are subject to achieving growth in both total shareholder return and earnings per share in the performance 
period ending on 31 december 2013 
pv crystalox solar plc executive directors deferred share plan “eddsp”
at the agm on 28 may 2009 a bonus plan with deferred share element for executive directors was approved by the company’s 
shareholders in the context of bringing the arrangements more in line with market practice and aligning executive directors’ pay more 
closely with the interests of the company’s shareholders half of each bonus was to be payable in cash and the other half deferred and 
payable in shares under the eddsp which vests three years after the award date awards of deferred shares under the eddsp are to 
be satisfied on vesting by the transfer of shares from the existing pv crystalox solar plc employee benefit trust 
no awards were made during 2013 2012 nil on 24 march 2011 awards over 358423 shares were made to executive directors
pv crystalox solar plc longterm incentive plan “ltip” 
this is a longterm incentive scheme under which awards are made to employees consisting of the right to acquire ordinary shares for 
a nominal price subject to the achievement of specified performance conditions at the end of the vesting period which is not less than 
three years from the date of grant under the ltip it is possible for awards to be granted which are designated as a performance share 
award a market value option or a nil cost option to date performance share awards and market value options have been granted
performance share award “psa”
a psa is a conditional award of a specified number of ordinary shares which may be acquired for nil consideration the psas granted 
to date have all been initial awards where there is no specified performance condition the vesting period of each award is three years 
from the date of grant
no awards were issued in 2013 2012 nil no awards are outstanding under this scheme
market value option “mvo”
an mvo is an option with an exercise price per share equal to the market value of a share on the date of grant the vesting period of 
each award is three years from the date of grant and the award must be exercised no later than ten years following the date of grant
on 24 november 2008 an mvo over 200000 ordinary shares of 2 pence each was granted to a senior employee and this option is exercisable 
from 24 november 2011 at £100 per share subject to an agreed performance criteria this option is now exercisable at any time until 
23 november 2018
on 26 march 2009 an mvo over 200000 ordinary shares of 2 pence each was granted to a senior employee and this option is exercisable 
from 26 march 2012 at 76 pence per share subject to an agreed performance criteria and on 25 september 2009 mvo awards over 
1200000 ordinary shares of 2 pence each were granted to key senior employees and these options are exercisable from 25 september 2012 
at 769 pence per share subject to agreed performance criteria
no awards were issued in 2013 2012 nil
notes to the company financial statements continued
for the year ended 31 december 2013 overview strategic report
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 87
governance financial statements
8 sharebased payment plans continued
pv crystalox solar plc share incentive plan “sip”
the sip is an employee share scheme approved by hm revenue and customs in accordance with the provisions of schedule 8 to the finance 
act 2000 on 26 february 2008 awards were granted to uk employees of 500 shares each over a total of 37000 ordinary shares of 2 pence 
these 37000 ordinary shares of 2 pence each were transferred from the ebt into the sip during 2012 awards over 1000 shares were 
forfeited by employees leaving the group during 2011 awards of 3500 shares were forfeited by employees leaving the group and awards 
over 8500 shares vested due to employees leaving the group as good leavers due to redundancy or retirement
the company recognised total expenses before tax of £104919 2012 £246016 related to equitysettled sharebased payment 
transactions during the year
the number of share options and weighted average exercise price “waep” for each of the schemes is set out as follows
psp
number
eddsp
number
mvo
number
mvo waep
 price 
pence
sip
number
share grants and options outstanding at 1 january 2012 3038454 419568 1600000 797 25000
share grants and options granted during the year — — —
share grants and options forfeited during the year — — — — 1000
share grants vested during the year — — — — —
options exercised during the year — — — —
share grants and options outstanding at 31 december 2012 3038454 419568 1600000 797 24000
exercisable at 31 december 2012 — — 200000 1000 —
share grants and options granted during the year — — — — —
share grants and options forfeited during the year 852723 — 200000 —
share grants vested during the year — 173152 — — —
options exercised during the year — — — — —
share grants and options outstanding at 31 december 2013 2185731 246416 1400000 797 24000
exercisable at 31 december 2013 — — 1400000 797 —
 the weighted average exercise price for the psp psa and sip options is £nil
no share options were exercised during the year and no options were exercised in 2012
9 auditors’ remuneration
2013
£’000
2012
£’000
audit fee in respect of the separate financial statements of the company 12 12
the disclosure of fees payable to the auditors and their associates for other nonaudit services has not been made because the company’s 
consolidated accounts are required to disclose such fees on a consolidated basis
10 dividends paidshareholder return
in december 2013 a return of cash was made to all shareholders of 725 pence per share by way of a b and c share scheme which gave 
shareholders other than certain overseas subsidiaries a choice between receiving the cash in the form of income or capital the return 
of cash was accompanied by a 5 for 13 share consolidation to maintain broad comparability of the share price and return per share of the 
ordinary shares before and after the creation of the b and c shares the return of cash was approved by shareholders on 19 november 2013
shareholder return
2013
£’million
2012
£’million
income option c share 9317 — 
capital option b share 20896 —
total shareholder return 30213 — 
no dividends were paid in 2013 2012 £nil
11 dividends received
dividends were received in 2013 of £212 million from pv crystalox solar gmbh 2012 £nil
12 capital commitments
there were no amounts contracted for but not provided in the financial statements
13 post balance sheet events
there were no post balance sheet events wwwpvcrystaloxcom
88 pv crystalox solar plc  annual report and accounts 2013
company number
06019466
registered office
brook house 
174 milton park 
abingdon 
oxfordshire ox14 4se
directors
dr iain dorrity 
dr peter finnegan 
michael parker 
john sleeman
company secretary
matthew wethey
independent auditors
pricewaterhousecoopers llp
chartered accountants and statutory auditors 
one reading central 
23 forbury road 
reading rg1 3jh
bankers
national westminster bank plc
thames valley corporate office 
abbey gardens 
4 abbey street 
reading rg1 3ba
corporate advisers
westhouse securities limited
one angel court  
london ec2r 7hj
lawyers
norton rose fulbright llp
3 more london riverside 
london se1 2aq
registrars
equiniti registrars
aspect house 
spencer road 
lancing 
west sussex bn99 6da
tel 0871 384 2030
tel 440 121 415 7047 from outside the uk
  calls are charged at 8 pence per minute plus network extras lines are open 830am to 530pm monday to friday
advisers annual report and accounts 2013  pv crystalox solar plc
wwwpvcrystaloxcom pv crystalox solar plc annual report and accounts 2013
pv crystalox solar plc
brook house 
174 milton park 
abingdon  
oxfordshire ox14 4se
tel 440 1235 437 160 
fax 440 1235 437 199
wwwpvcrystaloxcom


Summary:
 governance financial statements
wwwpvcrystaloxcom
annual report and accounts 2013  pv crystalox solar plc 3
overview strategic report overview governance financial statements
“ our improved cost structure enables us to increase 
production output in order to consolidate existing 
and to develop new customer relationships”
chief executive’ s statement
2013 has seen significant growth in global pv 
installations and some modest improvement 
in the industry environment prices across 
the value chain showed some slight recovery 
towards the end of the year following two 
years of continuous price declines this 
improvement has continued into 2014 
but wafer prices remain below industry 
production costs as polysilicon prices 
have been rising at a faster rate 
following a strategic review in late 
2012 the group has completed a radical 
restructuring during 2013 whilst retaining 
core production capabilities and has stabilised 
its financial position the group restructuring 
involved a reduction in production output at 
the uk ingot and german wafer operations 
with a corresponding reduction in personnel 
and the disposal of the group’s polysilicon 
production facility in bitterfeld germany 
to a management buy‑in team the facility 
and staff were transferred together with 
associated obligations and liabilities including 
those relating to the repayment of grants 
subsidies and closure costs in return for 
a cash payment of €123 million from the 
group this transaction was an improvement 
on the alternative shutdown scenario as 
it resulted in lower cash outflows for the 
group and also enabled some jobs to be 
retained under the new management
in view of the challenging market pricing and 
intensely competitive industry environment 
the group continued to operate in cash 
conservation mode during 2013 maintaining 
production at low levels while focusing on 
internal cost reduction quality improvement 
programmes and inventory management 
wafer shipments of 211mw
1
 were significantly 
higher than shipments in the previous year 
2012115mw and also higher than our 
production output as the group took the 
opportunity to expand its customer base 
and to reduce inventories to normal levels 
during 2007–2008 group companies 
entered into a number of long‑term 
agreements with customers to supply 
wafers at prices which are considerably 
above current market levels in view of 
the market conditions our strategy has 
always been to reach accommodation 
where possible with these long‑term 
contract customers although some have 
exited the industry either voluntarily or 
through insolvency five contracts of this 
type remained at the start of 2013 but 
only two were active during 2013 neither 
of these contracts will continue in 2014 as 
one has now expired and a settlement of 
the other has been concluded the overall 
importance of these long‑term contracts 
was much reduced as we have successfully 
developed new customers during 2013 
sales at a premium to spot prices under 
these contracts accounted for only 34 
of wafer shipment volumes in 2013 
the group has two other contracts where 
customers have entered insolvency and 
shipments stopped in 2011 and 2012 
respectively we have registered claims 
with the respective administrators and 
expect to conclude settlements during 
the next twelve months negotiations 
with the final remaining long‑term contract 
customer are progressing with the aim 
of reaching agreement to resume wafer 
supply in the absence of any agreement 
it will be necessary to seek resolution 
through arbitration under the auspices 
of the international court of arbitration 
in common with most pv companies 
the group has long‑term contractual 
commitments for purchase of polysilicon 
which were made to secure supply necessary 
to service long‑term wafer supply contracts 
as in previous years we continued to be 
successful in reaching agreement with our 
suppliers during 2013 to adjust volumes 
and prices on a periodic basis nevertheless 
as a consequence of the reduced wafer 
production levels it was still necessary 
for the group to trade excess polysilicon 
during the year in order to manage inventory 
levels the group has been successful in 
reaching accommodation with both suppliers 
in the year to date 
the year ahead
considerable progress was achieved during 
2013 in lowering our wafer production costs 
both internally and at our sub‑contractor in 
japan where the weakening of the japanese 
yen was also beneficial as a result of these 
cost reductions and the modest price 
improvement seen in late 2013 and early 2014 
our cash cost of wafer production is now 
closer to market prices in view of this 
improved cost structure the group decided 
to increase production output during the 
first quarter of 2014 to take advantage 
of the improved market situation and to 
consolidate links with our new customers 
initially we are doubling our production 
output compared to 2013 and this has 
necessitated some recruitment of production 
personnel in uk and germany this expansion 
will enable wafer shipments to be maintained 
at 2013 levels when sales volumes were 
boosted by shipments from inventory 
the group will look to conclude settlements 
with the administrators of the two long‑term 
contract customers in insolvency and also 
to conclude negotiations with the remaining 
long‑term contract customer so that wafer 
shipments can resume the group will look 
to reinforce relationships with those new 
customers where trading started in 2013 
and to develop new customers as 
opportunities allow
as in previous years the group will continue 
to negotiate with our polysilicon suppliers 
in order to adjust prices and volumes on 
a periodic basis the group expects to use 
increasing quantities of polysilicon for our 
expanding wafer production however it 
will trade excess polysilicon as required 
to manage inventory levels
iain dorrity
chief executive officer
19 march 2014
1
  in order to reflect improvements in industry cell efficiencies wafer shipments have been converted to mw assuming a cell efficiency of 17 rather than 16 as in previous years 
for comparison purposes 2012 shipments have been restated using 17 efficiency