Valoe Oyj - Inside information

VALOE ESTIMATES ITS NET SALES AND PROFITABILITY FOR 2016 TO BE LOWER THAN PREVIOUSLY DISCLOSED. THE COMPANY’S FINANCING SITUATION CONTINUES TO BE VERY TIGHT.

Valoe Corporation                                                  Stock
Exchange Release 24 March 2017 at 17.50 Finnish time 



VALOE ESTIMATES ITS NET SALES AND PROFITABILITY FOR 2016 TO BE LOWER THAN
PREVIOUSLY DISCLOSED. THE COMPANY’S FINANCING SITUATION CONTINUES TO BE 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 continues to be very tight even though the
convertible bond I/2017 of EUR 1.5 million issued in February 2017 was fully
subscribed. Valoe’s planned financing for the building period of the Ethiopian
project 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. Valoe has had frequent negotiations for a guarantee and they made
significant progress in March. Valoe trusts it will close the negotiations by
mid-April. 

The delivery of the Ethiopian project 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 by the end of 2017.
According to the previous estimation, the delivery was expected to take place
during the first half of the year 2017. 

Valoe has ongoing negotiations on arranging financing for a factory delivery in
Asia worth EUR 26.5 million. If realized, the orders would include a delivery
of a solar module factory to Valoe’s manufacturing partner in Asia and solar
modules with capacity of more than four megawatts, worth EUR ca. 2.5 million,
to the same customer. However, the negotiations are ongoing and the orders are
not yet secured. 

Valoe estimates that the net sales of Valoe Group will be ca. EUR 3.8 million
in 2016 (in 2015: EUR 0.7 million) and the EBITDA ca. EUR 6.9 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 3.5 million (in 2015: EUR -4.7
million). All figures concern the continuing operations. The audit has not yet
been finished. 

Previously Valoe has estimated that the net sales of Valoe Group will be ca.
EUR 5.5 – 6.0 million in 2016 and the EBITDA ca. EUR 6.5 – 7.0 million.  The
financial year 2016 was estimated to be profitable with profit for the
financial year 2016 of ca.  EUR 3.2 – 3.7 million. 

Until the above-mentioned advance payment guarantee for the Ethiopian project
has been secured or the financing negotiations for the Asian project have been
successfully concluded, 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 guarantee for the order from Ethiopia was not fully arranged or
the negotiations for the Asian project did not have a positive outcome, the
company’s financing situation would further tighten and the continuity of the
company’s operation may be jeopardized. 

Valoe’s Financial Statement Release for 2016 will be disclosed on 31 March
2017. The Annual Report for 2016 including the Financial Statements and the
Report of the Board of Directors will be released on 30 April 2017 at the
latest. 



In Mikkeli 24 March 2017



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.