Valoe Oyj - Company Announcement

VALOE ESTIMATES ITS NET SALES AND PROFITABILITY TO BE LOWER THAN PREVIOUSLY DISCLOSED. THE COMPANY REVISES ITS NET SALES AND PROFITABILITY DUE TO POSTPONEMENT OF THE ETHIOPIAN PROJECT DELIVERY. THE COMPANY’S FINANCING SITUATION IS VERY TIGH

  Valoe Corporation                                                  Stock
Exchange Release 31 October 2016 at 18.45 Finnish time 





VALOE ESTIMATES ITS NET SALES AND PROFITABILITY TO BE LOWER THAN PREVIOUSLY
DISCLOSED. THE COMPANY REVISES ITS NET SALES AND PROFITABILITY DUE TO
POSTPONEMENT OF THE ETHIOPIAN PROJECT DELIVERY. THE COMPANY’S FINANCING
SITUATION IS VERY TIGHT. 



In February 2016 Valoe received a ca. EUR 15.8 million order for a solar module
manufacturing plant and back contact technology. About EUR 9.5 million of the
sales price will be paid in cash to Valoe and the rest of the sales price in
shares of the customer company resulting in Valoe having a 30 percent
shareholding in its Ethiopian manufacturing partner. Valoe’s customer will
receive financing for the deal from The Development Bank of Ethiopia (DBE). 



Valoe’s financing situation is very tight. Valoe’s planned financing for the
building period was mainly based on an advance payment of EUR 2.8 million for
which Valoe shall arrange a bank guarantee. Securing an advance payment
guarantee has been delayed. Negotiations for a guarantee and bridging financing
are ongoing and Valoe trusts it will close the negotiations within the next few
weeks. 



The delivery has been postponed due to insufficient financing. Valoe and its
manufacturing partner have revised the schedule for completing the Ethiopian
project.  According to the re-evaluation the machinery and equipment for the
plant will be delivered in Ethiopia during the first half of the year 2017.
According to the previous estimation the delivery was expected to take place
during the year 2016. 



Due to the delay in the Ethiopian project delivery Valoe estimates that the net
sales of Valoe Group will be ca. EUR 5.5 – 6.0 million in 2016 (in 2015: EUR
0.7 million) and the EBITDA ca. EUR 6.5 – 7.0 million (in 2015: EUR -2.8
million). The financial year 2016 is estimated to be profitable with profit for
the financial year 2016 of ca.  EUR 3.2 – 3.7 million (in 2015: EUR -4.7
million). All figures for the comparison year concern the continuing
operations. 



Previously Valoe has estimated that the net sales of Valoe Group will be ca.
EUR 11 – 13 million in 2016 (in 2015: EUR 0.7 million) and the EBITDA ca. EUR
8.6 – 9.4 million (in 2015: EUR -2.8 million).  The financial year 2016 is
estimated to be profitable with profit for the financial year 2016 of ca.  EUR
5.3 – 6.1 million (in 2015: EUR -4.7 million). The financial guidance was
subject to the Ethiopian project being executed as planned. 



Until the above-mentioned bridging financing and an advance payment guarantee
have been secured Valoe’s financing situation continues to be very tight and
until then the sufficiency of the company’s financing and working capital for
the next twelve months involve very significant risks. If the above-mentioned
financing and guarantee for the order from Ethiopia would not be fully
arranged, the company’s financing situation would further tighten and the
continuity of the company’s operation may be jeopardized. 



Valoe will disclose its interim report for the third quarter on 2 November 2016.



In Mikkeli 31 October 2016





Valoe Corporation

Board of Directors



For more information:
Iikka Savisalo
President and CEO, Valoe Corporation
Tel. +358 40 521 6082,
Email: iikka.savisalo@valoe.com



Distribution:
NASDAQ OMX, Helsinki
Main media
www.valoe.com





Valoe Corporation specializes in the clean energy, especially in photovoltaic
solutions. Valoe provides automated production technology for solar modules
based on the company’s own technology; production lines for modules; solar
modules and special components for solar modules. Valoe's head office is
located in Mikkeli, Finland.