Profit Warning: Valoe Corporation Lowers Its Financial Guidance for 2020. The Covid-19 Situation Postpones the Start of Cell Production at the Vilnius Factory until December 2020.

Valoe Corporation Inside Information 10 November 2020 at 17.55 (Finnish time)

Profit Warning: Valoe Corporation Lowers Its Financial Guidance for 2020. The Covid-19 Situation Postpones the Start of Cell Production at the Vilnius Factory until December 2020.

Valoe Corporation (”the Company” or ”Valoe”) lowers its financial guidance for 2020. Valoe estimates that Valoe Group’s net sales for 2020 will be EUR 1.5 – 1.8 million (in 2019: EUR 0.3 million). The Company estimates Valoe Group’s operative cash flow to turn positive on a monthly basis during the second quarter of 2021, provided that Covid-19 does not, directly or indirectly, further delay the start of mass production of solar cells at the Lithuanian plant and the start of full-scale deliveries.

In a stock exchange release disclosed on 13 August 2020, Valoe estimated that the production and delivery of solar cells from the Lithuanian plant begin in October-November 2020. However, travel restrictions related to Covid-19 pandemic and difficulties in the delivery of materials and services due to the pandemic have continued and delayed the start of the Lithuanian plant. At the Lithuanian plant, the production line is ready and has been tested. The start of cell production still requires the completion of certain production processes, test production, and ramp-up of mass production, which requires the presence of experts from Valoe's German technology partner. The current restrictions in Europe have postponed the travelling of the experts from Germany and Finland. The Company estimates that production tests are run in November-December, the line will be ready for mass production by the end of 2020, and cell deliveries to customers will begin during the first quarter of 2021. Due to the postponement of cell deliveries, the positive turn in Valoe Group's operating monthly cash flow is postponed to the second quarter of 2021, respectively.

Valoe has previously estimated that Valoe Group’s net sales for 2020 will be EUR 2.1 million and Valoe Group’s operative cash flow will turn positive on a monthly basis during the first quarter of 2021, provided that Covid-19 does not, directly or indirectly, further delay the start of mass production of solar cells at the Lithuanian plant and the start of full-scale deliveries.

In Mikkeli, 10 November 2020

Valoe Corporation

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

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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.