Oh, this was supposed to be published today, but it came out yesterday! 
In July-September 2024, net sales were 0 M€ and operating profit was -0.8 M€.
The restructuring process was interrupted due to delayed financing, and the risk of bankruptcy increases without a solution. Factories closed, but customer relationships and financing negotiations continue. The future depends on a functional financing arrangement. 
Valoe Corporation Business Review 29.11.2024 at 8:20 PM
THIRD QUARTER OF 2024 IN BRIEF
Financial Situation
In July-September 2024, Valoe Group’s net sales according to IFRS standards were 0.0 million euros (0.2 million euros in 2023). EBITDA was approximately -0.4 million euros (-0.8 million euros), operating profit was approximately -0.8 million euros (-1.3 million euros), and the result for the period was approximately -0.9 million euros (-2.1 million euros).
In January-September 2024, Valoe Group’s net sales according to IFRS standards were approximately 0.2 million euros (1.1 million euros in 2023). EBITDA was approximately -1.4 million euros (-2.4 million euros), operating profit was approximately -2.5 million euros (-3.7 million euros), and the result for the period was approximately -2.9 million euros (-5.3 million euros). Valoe Group’s equity ratio, including capital loans, was -55.3 percent (-26.9 %) at the end of the review period.
| 7-9/2024 | 7-9/2023 | 1-9/2024 | 1-9/2023 | 1-12/2023 | |
|---|---|---|---|---|---|
| Net sales | 0 | 185 | 167 | 1 095 | 1 108 |
| EBITDA | -430 | -843 | -1 395 | -2 376 | -3 218 |
| Operating profit | -774 | -1 271 | -2 515 | -3 650 | -4 779 |
| Result for the period | -929 | -2 082 | -2 945 | -5 308 | -6 776 |
Valoe filed for corporate restructuring on December 5, 2023. The District Court of North Savo decided on January 22, 2024, to initiate Valoe’s corporate restructuring proceedings.
The administrator of the restructuring proceedings, attorney Pekka Jaatinen, gave his initial assessment in February 2024, in accordance with the Act on Corporate Restructuring, stating that Valoe’s business has potential that can be rehabilitated through the restructuring process. The administrator considered that the continuation of the company’s restructuring proceedings requires finding an interim financing arrangement. According to the administrator’s preliminary assessment, a feasible restructuring program can be prepared for the company, provided that the company is able to implement a financial or ownership arrangement that can secure the continuation of the company’s business in the long term. After the continuation financing for the company’s business was delayed, the administrator of the restructuring proceedings, Pekka Jaatinen, applied for the interruption of the restructuring proceedings on October 24, 2024, after the review period. The District Court of North Savo will process the administrator’s application for interruption on December 9, 2024. The court’s decision is appealable. An appeal must be filed within 30 days of the decision date. The company’s financing negotiations are still ongoing.
In a challenging financial situation, the company has continued part-time and full-time layoffs of personnel throughout the review period, in accordance with the outcome of the change negotiations held in January 2024.
During the first half of 2024, the company delivered prototype supplies to its most important customers for automotive, electronics, and space technology applications. During the review period, the company’s operations have been halted to conserve cash. However, the company has maintained its key competencies so that operations can resume immediately after a sufficient financing solution is found.
Trading in the company’s shares has been suspended since December 5, 2023, and remains suspended as of the date of this business review.
CEO IIKKA SAVISALO’S REVIEW
As financing negotiation solutions were delayed beyond the summer, the company has cut its costs as much as possible. The company’s factories in Finland and Lithuania have been closed during the review period. Financing negotiations have continued uninterrupted. During the review period, we have held discussions with several domestic and foreign investors. Discussions are still ongoing and are expected to yield results by the end of the year. The company’s most important customers have continued to express their readiness to continue cooperation with us as soon as Valoe’s financial position strengthens. However, a positive outcome of the financing negotiations is not certain. If a financing solution is not finalized in time, the company’s bankruptcy is possible.
VALOE’S FUTURE OUTLOOK
Valoe’s future outlook essentially depends on whether the company can achieve a functional financing solution. Several customers are still interested in using Valoe’s technology, and to our knowledge, the company’s potential competitors have not managed to catch up with our lead. The confused market situation in the European automotive industry, in particular, has slowed down the adoption of solar energy in the sunroofs of well-known car brands, alongside other innovations. The slowdown in development has given Valoe’s sales efforts a timeout, thanks to which the slowly progressing financing negotiations have not unduly disturbed customer relationships, and the opportunities for successful business in the future still exist.
VALOE’S COMPETITIVE ADVANTAGE AND OUTLOOK 2024
Valoe’s competitive advantage is still based on the utilization of back-contact current conductor technology. Solar cells connected to a circuit board provide design and manufacturing freedoms for OddForm panels, which now make Valoe’s solutions superior both technically and economically compared to other solutions. This connection method allows the panel’s current and voltage to be seamlessly adapted to the end product, for example, a car’s electrical system, thus avoiding weaknesses found in other solutions. Valoe’s solutions support even the most innovative solutions of automotive brand designers.
The opportunities for utilizing solar energy in new types of applications have also not disappeared. Many high-value-added solar energy solutions can enable entirely new product applications. In such applications, business can be very profitable.
Market Guidance
Valoe does not provide market guidance for the financial year 2024 due to the corporate restructuring proceedings.
RISKS
Valoe’s most significant risk is the continued delay in securing financing. If financing negotiations are not concluded by the end of the current year, Valoe’s bankruptcy is possible.
Certain statements in this business review, and particularly non-binding estimates related to our strategy, are forward-looking and based on management’s current views. By their nature, they contain risks and uncertainties and are subject to changes in the general economic or industry situation. Risks related to the company’s financial position and financing needs, as well as other risks, are described in more detail in the annual report published on April 28, 2024, which is available on the company’s website at www.valoe.fi.
Mikkeli, November 29, 2024
Valoe Corporation
BOARD OF DIRECTORS
Further information:
CEO Iikka Savisalo, tel. +358 40 521 6082, iikka.savisalo@valoe.com