Valoe Corporation’s Half-Year Financial Report 1 January –

Valoe Company        Half-12 months Monetary Report        25 August 2021 at 15.10 Finnish time

THE SECOND QUARTER OF 2021 IN BRIEF

Valoe Group’s working money move turned constructive, on a month-to-month foundation, in the course of the second quarter in response to the corporate’s forecast. The cumulative working money move for April – June interval was constructive.

In April-June 2021, the web gross sales of Valoe Group, beneath the IFRS requirements, elevated by about 124 per cent in comparison with the corresponding interval in 2020. The web gross sales have been EUR 1.Zero million (in 2020 EUR 0.Four million). The EBIT was EUR -0.Three million (EUR -0.6 million), the revenue for the interval was EUR -0.7 million (EUR -1.Zero million), and the EBITDA was EUR 0.2 million (EUR -0.Three million).

In January-June 2021, the web gross sales of Valoe Group, beneath the IFRS requirements, elevated by about 62 per cent in comparison with the corresponding interval in 2020. The web gross sales have been EUR 1.2 million (in 2020 EUR 0.Eight million). The EBIT was EUR -1.7 million (EUR -1.5 million), the revenue for the interval was EUR -2.5 million (EUR -2.Three million), undiluted earnings per share have been EUR -0.01 (EUR -0.02), diluted earnings per share have been EUR -0.01 (EUR -0.02), and the EBITDA EUR -0.9 million (EUR -0.9 million).

Curiosity in Valoe’s OddForm photo voltaic module know-how continued to develop. Through the reporting interval, we signed two cooperation agreements for integrating photovoltaics into autos: In April 2021, we signed about EUR 2.2 million growth settlement with Sono Motors GmbH (“Sono Motors”), and in Might 2021, an settlement with Sin Vehicles Business JSC (“Sin Vehicles”) for the event, prototyping, and manufacturing of a car built-in PV system.

We continued to ramp up cell manufacturing on the Lithuanian plant all through the second quarter. The Covid-19 affected our operations each immediately and not directly prefer it affected all operations world wide. The turbulence on the uncooked supplies market, significantly the decreased availability of silicon wafers, glass, and sure plastics and spare elements, and rising costs hampered the progress of our initiatives in each Lithuania and Finland.

In Might 2021, we signed an roughly EUR 0.5 million provide settlement for delivering photo voltaic cells to Fill Manufacturing facility s.r.o., a Czech firm. As well as, we delivered small portions of custom-made photo voltaic cells to a Californian firm growing area and army know-how.

The lenders of the Convertible Bond 1/2021 subscribed in whole 85,000,000 new shares within the firm by changing the promissory notes into the brand new shares in June 2021. Your entire mortgage capital of the Convertible Bond 1/2021 was transformed to the brand new shares within the share subscription. The shares have been registered with the Commerce Register on 23 June 2021 and listed on the inventory alternate checklist of Nasdaq Helsinki Ltd on 29 June 2021.

In June 2021, we resolved on a share issuance of a complete of 28,000,000 new shares to the Firm itself with out consideration to implement financing preparations and subscribed all 28,000,000 new shares. The shares have been registered with the Commerce Register on 23 June 2021 and listed on the inventory alternate checklist of Nasdaq Helsinki Ltd on 29 June 2021.

On 9 June 2021, we gave a prospectus pursuant to the Finnish Securities Markets Act to the Monetary Supervisory Authority, which authorised the prospectus on 28 June 2021.

After the tip of the reporting interval, the corporate’s monetary scenario improved as we signed a framework settlement on a three-year financing facility of as much as EUR 30 million with RiverFort World Alternatives PCC Restricted (“RiverFort”). Additional, we agreed with RiverFort on dedicated advances in mixture of EUR 3,000,000, of which we raised EUR 2 million throughout July-August.

After the reporting interval, we signed a Memorandum of Understanding with ICON Superior Co. Ltd, a Saudi Restricted Legal responsibility Firm totally owned by Salem Balhamer Holding. Valoe and ICON plan to type a Joint Enterprise Firm the place ICON has a 60% and Valoe a 40% possession. The Joint Enterprise Firm is planning to construct in Saudi Arabia a Again Contact Photo voltaic Module manufacturing plant that Valoe would engineer, construct, and ship. The deliberate funding is roughly EUR 15 million, together with a photo voltaic module manufacturing plant, know-how switch, coaching, and preliminary operation delivered by Valoe. The estimated worth of Valoe’s supply is roughly EUR 12 million. Valoe’s most funding is EUR 6 million. The plant’s competitiveness relies on a model of Valoe Chrystal and Chrystal Twin modules designed explicitly for desert areas.

MARKET GUIDANCE

Valoe’s internet gross sales for the monetary yr 2021 will clearly enhance in comparison with the earlier yr. The outcome for the monetary yr can even enhance, however EBITDA will probably be unfavorable on an annual foundation. There may be presently quite a lot of uncertainty concerning the future as a result of unpredictability of the Covid-19 pandemic and associated modifications in world commerce.

MANAGING DIRECTOR’S REPORT

We’re focusing an increasing number of on the utilization of photovoltaics to scale back CO2 emissions from transport. There was numerous buyer exercise all through the second quarter. We signed a number of growth venture agreements on designing vehicle-integrated photovoltaic techniques. Sometimes, these sorts of contracts are initially price a couple of tens of hundreds of euros. We goal to make sure that our merchandise find yourself in as many future autos as potential with such agreements. By way of such initiatives, our growth venture with Sono Motors GmbH (”Sono”) is essentially the most superior. Our cooperation continued to deepen and we had a really lively collaboration in the course of the second quarter.

Cooperation with Sin Vehicles Business JSC (“Sin Vehicles”) on growing and prototyping a vehicle-integrated PV System for a light-weight last-mile supply electrical car additionally made good progress. The following step is to start the manufacturing of the pre-series of the Sin Vehicles car.

The manufacturing of samples for the pre-series and product growth of Valoe’s OddForm merchandise started already on the finish of 2020. Since then, manufacturing volumes have stabilized on the ranges required for pre-series manufacturing. Primarily based on present estimates, a number of clients planning to make use of Valoe’s OddForm modules could have their mass manufacturing capability prepared by the tip of 2021 or in 2022.

The manufacturing of Chrystal and Chrystal Twin modules didn’t begin to the specified extent within the second quarter both. The manufacturing start-up was initially hampered by the gradual ramp-up of cell manufacturing on the Lithuanian plant and subsequently by the poor availability of spare elements wanted for modifying the manufacturing line for Chrystal and Chrystal Twin module manufacturing. Moreover, the coronavirus pandemic has made and continues to make operations considerably tougher. Along with the direct results of Covid-19, different modifications in world commerce brought on by the pandemic will have an effect on industrial operations. For instance, Valoe’s operations are hampered by difficulties within the provide of silicon wafers, glass, and sure plastics, in addition to spare elements, and, as a consequence, larger costs. As well as, many materials suppliers now not present supply schedules, or supply instances have been prolonged continually.

In summer season 2019, Valoe signed a provide settlement with a US buyer. Valoe estimates that the annual worth of the settlement is roughly USD 12 million per rolling 12 months from the beginning of deliveries. Valoe and the client are presently negotiating the way in which and schedule by which deliveries can start. The negotiations are nonetheless occurring. Nonetheless, as a result of rise in uncooked materials costs Valoe’s supply wouldn’t be worthwhile on the beforehand agreed cell costs. The client continues to be considering negotiating methods to make the most of the potential of IBC cells of their manufacturing. The businesses are working to discover a approach to start cell deliveries as quick as potential. Even when no settlement is reached, we expect we will make the most of the complete capability of the cell plant not solely in our merchandise but additionally within the higher-margin market segments. Along with autos, these segments embrace, e.g., energy-independent housing and their constructing supplies, in addition to area and army know-how.

Typically, our enterprise fashions are at all times primarily based on producing photo voltaic electrical energy in locations the place the electrical energy is used, whether or not it’s a geographical space or an electrical equipment. Thus, pure geographic market areas for Valoe embrace international locations and areas the place the electrical energy grid shouldn’t be complete or poor. A sizzling local weather or the sand that continually flies within the air requires photo voltaic modules to ship distinctive efficiency in lots of locations. The Arabian Peninsula is a superb instance of such an space.

After the reporting interval, we signed a Memorandum of Understanding with ICON Superior Co. Ltd:n (ICON), a Saudi Restricted Legal responsibility Firm owned by Salem Balhamer Holding Group. The target is to ship in Saudi Arabia a photo voltaic module manufacturing plant wherein Valoe has a minority shareholding. The plant’s competitiveness relies on a model of bifacial Chrystal and Chrystal Twin modules particularly designed for use in desert areas. Valoe’s accomplice, ICON goals to enter the market with a aggressive edge offered by such particular options. We plan to succeed in a closing settlement on the supply of the plant by the tip of the monetary yr. If the venture is carried out as deliberate, it’s going to considerably influence our enterprise within the coming years.

We provide our manufacturing know-how to ICON in addition to to all operators considering again contact modules. They are often, e.g., giant, typically government-owned photo voltaic initiatives, module subcontractors, or OEMs who, along with value competitors, are considering using the potential of utilized merchandise of their market.

OPERATING ENVIRONMENT AND MARKET SITUATION

The costs of photovoltaic merchandise have fallen, and the competitiveness of photovoltaics has improved for a number of years. Through the monetary yr 2021, there have been value fluctuations within the commodity market. The costs of uncooked supplies for silicon wafers and glass have risen. A rise in costs primarily impacts producers of typical photo voltaic modules for roof and floor installations, who usually function in a extremely price-critical market atmosphere. Massive corporations that at the moment are profitable within the mass manufacturing of typical panels and the related price competitors will proceed to dominate the uncooked materials market. They may proceed to decrease the costs of their primary merchandise counting on buy volumes and their elevated capability. With out political selections, Chinese language producers, particularly, will proceed their playoffs worldwide.

It has been simpler for us to adapt to the market scenario by specializing extra clearly in autos and different much less aggressive segments. Our again contact know-how allows us the segmentation. In our modules, the photo voltaic electrical energy is derived from the bottom of the cells to a module-sized conductive and versatile circuit board. The module will be bent in three dimensions, and there are not any visually disturbing wires on the floor. We’re on the lookout for clients who worth these options enabling worthwhile enterprise. This method is evidenced by the higher profitability in the course of the overview interval.

In autos, the again conduct know-how brings important benefits. Based on forecasts, the share of photo voltaic power in transport power consumption will enhance considerably, and photo voltaic modules will probably be built-in, for instance, in vehicles and different autos. Along with floor space effectivity, the productiveness of photovoltaic techniques in these near-future purposes will probably be decided by the system’s means to deal with quickly altering lights and shadows and keep environment friendly energy technology when the car strikes and shakes the system violently. The again conduct know-how we use is at its greatest in simply such purposes.

We belief that diversified native manufacturing will enhance considerably quickly. Nonetheless, we aren’t aiming at turning into an area producer. After we determine to enter into a specific geographical space, we at all times search an area accomplice and an investor for a photo voltaic module manufacturing facility venture. We’re accountable for manufacturing know-how, product high quality, and growth. Native traders and companions are accountable for venture funding in addition to advertising and marketing and product gross sales.

Our know-how growth and manufacturing operations are primarily based on in-depth data of supplies know-how, experience and versatile use of laser know-how, and expertise as a provider of automation and robotization purposes worldwide.

Our adaptable manufacturing know-how primarily based on the Conductive Again Sheet and our cell and module manufacturing vegetation allow us to behave as a know-how accomplice for the industrialization of recent merchandise and probably later additionally as a producing accomplice.

We consider in photo voltaic power in growing areas and develop know-how and module manufacturing tools for growing international locations. Photo voltaic power is essentially the most pure approach to enhance dwelling situations in unelectrified areas. We need to create situations the place photo voltaic power will be provided even on the planet’s poorest areas.

VALOE’S STRATEGY

We have now outlined that our technique relies on the imaginative and prescient in response to which photo voltaic power would be the greatest resolution to fulfill the world’s power wants sooner or later. Two minutes of the solar present the world with one yr’s power wants of the complete humanity. Photo voltaic power is silent, odourless, and the cleanest type of power. The full quantity of the photo voltaic power enterprise, excluding the worth of electrical energy generated worldwide, is roughly EUR 100 billion per yr, and the enterprise is rising at an annual fee of about 20% (Supply: ITRPV 2019). Moreover, photo voltaic power contributes to halting local weather change and minimizing the carbon footprint of power manufacturing.

Our technique relies on the truth that the restrictions of photo voltaic power utilization will probably be resolved sooner or later. We compete in worldwide markets. We comply with intently analysis and growth associated to our enterprise and adapt relevant applied sciences to our product ideas. Valoe’s options are primarily primarily based on Valoe’s personal applied sciences, which the corporate has developed with main consultants and analysis institutes. One instance of the sensible implementation of our technique is our key position within the HIghLite venture within the European Union’s Horizon program. We cooperate with main analysis institutes and corporations to enhance Europe’s competitiveness by growing photovoltaic purposes.

Valoe, as a promoter of solar energy, is actively concerned within the international growth of photo voltaic purposes and later additionally in storage purposes. As well as, Valoe’s know-how companions have an important position within the growth worldwide.

In 2021, we deal with transport purposes. Transport is present process a change, and we have to benefit from the fast electrification of transportation.

FINANCIAL RESULT

Valoe Group’s cumulative internet gross sales for the primary half of the monetary yr 2021 have been about EUR 1.2 million. The web gross sales elevated by about 62 per cent and the loss elevated a little bit in comparison with the earlier yr. The revenue for the interval was about EUR -2.5 million. The web gross sales for the interval 1 April – 30 June 2021 have been EUR 1.Zero million. Through the first half-year 2021, the corporate’s internet gross sales originated primarily from cooperation for self-charging electrical autos with Sono and different electrical car producers.

Though Valoe’s financing settlement with RiverFort after the tip of the reporting interval is ample to make sure the corporate has ample situations to finance the investments required for progress, the corporate depends on the power of its younger buyer corporations to finish joint growth initiatives. Nonetheless, there are a number of clients, and the trade is mostly estimated to be nicely funded.

The next financials embrace Valoe Group’s operations. The figures in brackets are comparability figures for the corresponding interval in 2020 except acknowledged in any other case.

April – June 2021:

– Valoe Group’s internet gross sales elevated by 124 per cent to EUR 1.Zero million (In 2020: EUR 0.Four million).
– EBITDA was EUR 0.2 million (EUR -0.Three million).
– Working revenue was EUR -0.Three million (EUR -0.6 million).
– Revenue for the interval was EUR -0.7 million (EUR -1.Zero million).

The working revenue and the revenue for the interval embrace a one-off write-down of roughly EUR 0.1 million in inventories associated to the Chrome module household.

January – June 2021:

– Valoe Group’s internet gross sales elevated by 62 per cent to EUR 1.2 million (In 2020: EUR 0.Eight million).
– EBITDA was EUR -0.9 million (EUR -0.9 million).
– Working revenue was EUR -1.7 million (EUR -1.5 million).
– The revenue earlier than taxes was EUR -2.5 million (EUR -2.Three million).
– Revenue for the interval was EUR -2.5 million (EUR -2.Three million).
– Undiluted earnings per share have been EUR -0.01 (EUR -0.02).
– Diluted earnings per share have been EUR -0.01 (EUR -0.02).

FINANCING

In January 2021, we issued a Convertible Bond 1/2021 of EUR 3.Four million, which was oversubscribed. Through the reporting interval, the lenders of the Convertible Bond 1/2021 subscribed in whole 85,000,000 new shares within the firm by changing the promissory notes into new shares. Your entire mortgage capital of the Convertible Bond 1/2021 was transformed to new shares within the share subscription. The subscription value of the brand new shares was entered in entirety into the corporate’s invested non-restricted fairness fund. Thus the share capital of the corporate was not elevated in reference to the share subscription. The shares have been registered with the Commerce Register on 23 June 2021 and listed on the inventory alternate checklist of Nasdaq Helsinki Ltd on 29 June 2021.

In June 2021, we resolved on a share issuance of a complete of 28,000,000 new shares to the corporate itself with out consideration to implement financing preparations and subscribed all 28,000,000 new shares. The shares have been registered with the Commerce Register on 23 June 2021 and listed on the inventory alternate checklist of Nasdaq Helsinki Ltd on 29 June 2021.

After the reporting interval, we signed a framework settlement on a three-year financing facility of as much as EUR 30 million with RiverFort World Alternatives PCC Restricted (“RiverFort”). Additional, we agreed with RiverFort on dedicated advances in mixture of EUR 3,000,000, of which we raised EUR 2 million throughout July-August.

In August 2021, we resolved to partially convert the mortgage shares of the corporate’s Convertible Bond 1/2020 into the corporate’s shares and partially pay the mortgage shares in money. Primarily based on the conversion request submitted to the corporate by the promissory notice holder, BOD World Group SIA (“BOD”), EUR 300,000 of the Convertible Bond 1/2020 capital and curiosity on the complete mortgage capital was transformed into firm shares, and the corporate transferred a complete of 4,521,524 treasury shares to BOD. EUR 100,000 of the Convertible Bond 1/2020 capital is paid to BOD in money.

In April 2020, Valoe entered into a brand new convertible notice facility settlement with Winance regarding a funding association of as much as EUR 3,000,000 in convertible mortgage. Out of this monetary facility, Valoe has raised a complete of EUR 2.25 million by the date of this Half-12 months Report.

Based on present estimates, the corporate has ample financing for its operations and vital investments in the course of the subsequent 12 months. Nonetheless, there may be presently quite a lot of uncertainty concerning the future as a result of unpredictability of the COVID-19 pandemic and the ensuing regulatory necessities and different modifications in world commerce.

Valoe Group’s working money move turned constructive in the course of the second quarter. Money move from enterprise operations earlier than investments in January – June was EUR -2.Four million (EUR -2.Three million). Commerce receivables on the finish of the reporting interval have been EUR 0.Three million (EUR 0.1 million). Internet monetary objects amounted to EUR 0.7 million (EUR 0.9 million). On the finish of June, the fairness ratio of Valoe Group was -7.1 per cent (-7.4 %) and fairness per share was EUR -0.004 (EUR -0.01). The fairness ratio together with capital loans was 14.7 per cent (10.6 %). On the finish of the reporting interval, the Group’s liquid property totalled EUR 0.03 million.

Valoe’s monetary and different dangers have been dealt with on this Report’s merchandise “Threat administration, Dangers and Uncertainties”.

RESEARCH AND DEVELOPMENT

The target of Valoe’s product growth is that the power produced by Valoe’s photo voltaic modules shall be the greenest in addition to the most affordable power available on the market. The significance of analysis and growth for Valoe is nicely illustrated by the human assets allotted to analysis and growth. Valoe Group employs 44 individuals, out of whom 25 individuals work on the corporate’s product growth initiatives in Finland and Lithuania.

Throughout current years, the main focus of Valoe’s analysis and growth has been on a venture regarding cell growth and effectivity enchancment in addition to on the event of IBC cells. Over the previous two years, our most important problem, as the primary and the one firm in Europe to this point, has been to design and construct a brand new sort of photo voltaic cell plant in Vilnius. The primary cells manufactured fully on the Valoe plant have been produced in December 2020.

In 2019, we elevated product growth assets to introduce Valoe Odd Type modules out there quickly. Valoe’s OddForm module is a versatile and light-weight composite module that may be tailored for brand new purposes within the automotive, aviation, and aerospace industries.

Over the previous years, we have now created a worldwide accomplice community to help our analysis and growth. With the companions, we develop merchandise and know-how to implement the subsequent part of our progress technique. The event and know-how switch collaboration with ISC Konstanz has been steadily deepening, now in its third yr. ISC Konstanz is likely one of the main photo voltaic power analysis institutes in Europe.

Valoe’s different major know-how companions embrace Power Analysis Centre of the Netherlands (ECN) that now belongs to TNO, and Fraunhofer Institute for Photo voltaic Power Techniques (Fraunhofer ISE). Within the Horizon HighLite venture, Valoe will have the ability to make the most of the data and expertise of IMEC in Belgium, CEA and Ines in France, CSEM in Switzerland, and main universities in a number of international locations. Additional, Valoe will have the ability to work with among the world’s most famous supplies know-how corporations.

Valoe is aiming at defending its improvements in each essential geographical space. Through the reporting interval, Valoe was granted a brand new patent for using a laser in copper processing.

The Group’s analysis and growth prices amounted to EUR 1.1 million (EUR 0.5 million) in the course of the reporting interval.

INVESTMENTS

Gross investments throughout January – June interval amounted to EUR 0.7 million (EUR 1.Three million). The investments on the reporting interval have been primarily in tools.

PERSONNEL

On the finish of June 2021, the Group employed 44 (34) individuals, out of which 15 workers labored in Lithuania and the remainder in Finland. The Group’s salaries and charges for the reporting interval totalled EUR 1.1 million (EUR 0.Eight million).

SHARES AND SHAREHOLDERS

On the finish of the reporting interval, Valoe’s share capital amounted to EUR 80,000.00, and the variety of shares was 368,359,195. The corporate has one sequence of shares, which confer equal rights within the firm. On 30 June 2021, Valoe had in whole 36,285,616 treasury shares.

The corporate had 12,887 shareholders on the finish of June 2021, and three.Three per cent of the shares have been owned by foreigners. The ten largest shareholders held 47.Eight per cent of the corporate’s shares on 30 June 2021.

The most important shareholders on 30 June 2021

The members of the Board of Administrators and the President and CEO, both immediately or by way of corporations beneath their management, held a complete of 82,455,707 shares within the firm on 30 June 2021, representing about 22.Four per cent of the corporate’s shares. On the finish of the interval Iikka Savisalo, Valoe’s Managing Director, both immediately or by way of corporations beneath his management, held a complete of 71,625,529 shares within the firm.

The value of Valoe’s share assorted between EUR 0.06 and 0.16 in the course of the January – June interval. The common value was EUR 0.12 and the closing value on the finish of June EUR 0.09. A complete of 204.5 million Valoe shares have been traded at a price of EUR 23.5 million in the course of the January – June interval. The corporate’s market capitalization on the finish of June stood at EUR 33.2 million.

SHARE ISSUE AUTHORIZATIONS IN FORCE

The corporate has a share problem authorization in drive granted by the Annual Common Assembly 2021 in response to which the Board of Administrators is allowed to determine on a share problem with and/or with out cost, both in a single or in a number of events, together with proper to resolve on possibility rights and different rights entitling to shares pursuant to the Chapter 10, Part 1 of the Finnish Firms Act in order that the variety of new shares issued primarily based on the authorization or variety of shares issued primarily based on possibility rights and different particular rights entitling to the shares pursuant to the Chapter 10, Part 1 of the Finnish corporations Act, may enhance by a complete most quantity of 150,000,000 shares. The authorization doesn’t exclude the Board’s proper to determine additionally on directed problem of shares or possibility rights and different particular rights pursuant to the Chapter 10, Part 1 of the Finnish Firms Act. The authorization could also be used for essential preparations from the corporate’s perspective e.g. to strengthen the capital construction, to finance investments, for acquisitions and enterprise transactions or different enterprise preparations, or to develop possession construction, or for different functions resolved by the Board involving a weighty monetary purpose for issuing shares or possibility rights or particular rights entitling to shares pursuant to the Chapter 10, Part 1 of the Finnish Firms Act. The share problem could also be executed by deviating from the shareholders’ pre-emptive subscription proper offered the corporate has a weighty monetary purpose for that. The authorization is in drive till 30 June 2022.

By the date of this Report the Board of Administrators has resolved on problems with a complete of 40,675,564 shares primarily based on the authorization.

RISK MANAGEMENT, RISKS AND UNCERTAINTIES

Valoe’s Board of Administrators is accountable for the management of the corporate’s accounts and funds. The Board is accountable for inner management, whereas the President and CEO handles the sensible association and displays the effectivity of inner management. Enterprise administration and management are taken care of utilizing a Group-wide reporting and forecasting system.

The aim of danger administration is to make sure that any important enterprise dangers are recognized and monitored appropriately. The corporate’s enterprise and monetary dangers are managed centrally by the Group’s monetary division, and experiences on dangers are offered to the Board of Administrators as vital.

Because of the small dimension of the corporate and its enterprise operations, Valoe doesn’t have an inner auditing group or an audit committee.

Dangers Associated to Monetary State of affairs and Financing

Our most important danger is that the money move from our operations wouldn’t materialize as deliberate. Manufacturing volumes on the Lithuanian photo voltaic cell plant are nonetheless low, and manufacturing will probably be elevated as soon as the cell high quality targets are met. Nonetheless, the re-emergence of the Covid-19 pandemic, particularly in Lithuania but additionally elsewhere in Europe, might hamper the provision of supplies and providers, and worsening provide difficulties might additional hamper the rise in photo voltaic cell manufacturing volumes, which may have a cloth opposed impact on the corporate’s outcomes and / or monetary scenario.

The Covid-19 pandemic has already slowed down our panel manufacturing and hampered the beginning of photo voltaic cell mass manufacturing and buyer deliveries, and the materialization of money move. In our manufacturing, we use elements sourced from worldwide materials suppliers and subcontractors. The primary uncooked supplies embrace silicon wafers, silver, different metals, plastics, and glass. All these supplies now have longer supply instances and better costs. It’s unimaginable to evaluate the final word influence of the pandemic on our operations. If we can’t go on larger buying prices to our buyer costs, the rise in costs might have a big unfavorable impact on the corporate’s profitability and monetary scenario.

Failure to comprehend the assumptions associated to the corporate’s money move forecasts may result in a scenario the place the corporate’s impairment exams would point out the necessity to write down the corporate’s intangible and tangible property or goodwill. In such a scenario, impairment of intangible and tangible property may have a cloth opposed impact on the corporate’s monetary place. An in depth description of the corporate’s impairment testing will be present in Word 12 to the consolidated monetary statements within the Annual Report 2020.

In distinctive circumstances, banks or public or non-public funding organizations might face unpredictable pressures that might gradual the cost of already agreed funding to Valoe. Such a scenario may, in some circumstances, trigger the corporate’s working capital scenario to tighten once more.

Dangers Related to the Technique, Enterprise Operations, New Applied sciences, and Manufacturing

The event and commercialization of recent applied sciences at all times contain uncertainties and important dangers. If our product growth initiatives weren’t profitable, or the enterprise atmosphere or market scenario modified, our means to offer its clients with aggressive services or products could possibly be threatened. In such a scenario, the profitability could possibly be decrease than anticipated which may have a big impact on our profitability and monetary scenario.

Within the unsure international atmosphere created by Covid-19, provide chains contain particular dangers. Their influence on the provision and pricing of supplies and providers, and thus on the corporate’s monetary scenario and operations, can’t be assessed. Such essential uncooked supplies embrace, e.g., particular plastics, metals, glass and silicon wafers, spare elements for machines and tools, {and professional} providers associated to operations. Our provide chains primarily embrace European and a few particular person Asian suppliers. The elements and uncooked supplies we buy from these suppliers are essential to Valoe’s enterprise. Because of the uncertainty brought on by Covid-19, uncooked materials costs have already risen. As well as, the supply instances for elements, silicon wafers, silver, different metals, plastics, and glass utilized in Valoe’s manufacturing have been prolonged. Ought to the provision of essential elements and uncooked supplies proceed to say no or the costs proceed to rise, this might additional decelerate the manufacturing of our merchandise, delay our deliveries to clients and cut back our profitability. This might have an opposed impact on the corporate’s enterprise, revenue, and monetary scenario, and / or the worth of the corporate’s securities.

Dangers Related to the Operations in Rising Markets

We’re utilizing a part of its assets to market and promote Valoe’s know-how in rising markets. Dangers related to working in rising markets might come up from, for instance, buyer liquidity, uncertainties associated to manufacturing elements, initiation or implementation of international alternate management, or different modifications in laws that might successfully stop the corporate from repatriating potential earnings, promoting property and exiting from the market.

Administrative and Authorized Dangers

Public funding and funding subsidies have a big incentive impact within the photo voltaic power enterprise. In Finland particularly, modifications in public funding or funding subsidies for solar energy initiatives which are unfavourable from the producers’ perspective may considerably cut back the home market. The potential unfavorable results of such elements on our enterprise, outcomes and/or monetary place can’t be foreseen.

Sure statements on this Report, particularly the non-binding estimations in Valoe’s technique, are focused to the longer term and primarily based on the administration’s present estimates. Due to this fact, they contain dangers and uncertainty by their nature and could also be affected by modifications within the common monetary scenario or enterprise atmosphere.

In Mikkeli, 25 August 2021

Valoe Company
Board of Administrators