EAM Solar

EAM SOLAR ASA Q4 2020

2 March 2020

1. Full-year 2020 financial results and status
1. Litigation activities
1. Strategic review business development activities
1. Q&A
Solar PV operations reduced 60% y-o-y due to sale of Varmo & Codroipo in 2019. Operating cost levels reduced by 48% and pure operating margin reduced from 27% to 6%.
2020 litigation costs of EUR 1.74 million.
Liquidity position on group level is satisfactory with a net receivable and cash position against payables of EUR 6.9 million.
Solidity on group level satisfactory with an equity ratio of 57%, while mother company remains 100% equity financed.
Preliminary estimated total profit from sale of Varmo & Codroipo is NOK 72 million based on an estimated total sales price of NOK 156 million including an estimated NOK 20 million from 75/25 profit split.

EUR 000'	Unaudited 2020	Audited 2019

Cost of operations	(213)	(409)
Sales, general and administration expenses	(983)	(1886)
Legal costs	(1741)	(1313)
EBITDA	(1666)	(441)
Depreciation, amortizations and write downs	(556)	(1289)
EBIT	(2222)	(1731)
Net financial items	2 1 9 7	1798
Profit before tax	(25)	68
Income tax gain/(expense)	(155)	(304)
Net income	(180)	(236)

The fourth quarter report gives a comprehensive update on the legal status up to today.
Main event is the acquittal by the Criminal Appeal Court of Milan in January 2021 of all convicted, including Akhmerov and Giorgi, for fraud against the State of Italy and EAM Solar ASA.
The reason for the court decision is not received yet. However, the ruling is not final and will be appealed.
EAM Solar ASA has filed criminal fraud complaints to police authorities in Italy (2014), Luxembourg (2016) and Norway (2018/2019). So far, no investigation of the fraud has been conducted to our knowledge.
The Company is therefore evaluating alternative legal measures to be taken to hold Enovos and Renova/Avelar et.al. responsible for the P31 fraud.
The conclusion of the strategic litigation review processes is expected to be communicated to EAM Solar ASA's shareholders during first half 2021.

40% of EAM Solar ASA is owned directly or indirectly by the Company manager Energeia AS and Energeia's shareholders.
Energeia has invested within solar PV energy in the Netherlands since 2009, and in 2020 constructed and commenced operation on its own solar PV power plant in the Netherlands. The power plant has a long-term electricity sales contract with the Dutch Government.
Into 2021, Energeia has under development a project pipeline of potential solar PV power plants in the Netherlands in excess of 500MW. In addition, Energeia has identified feasible solar PV power plant projects in the Nordic region, which currently is in an early stage of development, but may result in significant power plant developments in the coming years.
Energeia and EAM Solar ASA have initiated a preliminary discussion with the aim to ensure that all shareholders in EAM Solar ASA can participate in the future business development and value creation of Energeia AS.
The conclusion of the strategic review processes on business development will be decided on and communicated to the shareholders of EAM Solar ASA during first half 2021.