Vergnet SA: 2022

Press release

2022

• Tripling of turnover
• Break-even result target

Elms, February 10, 2022

VERGNET has just gone through two very complicated years due to the pandemic and its aftermath: very significant payment delays for certain customers, deferred projects, considerable increases in the prices of maritime transport, containers, steel, heavy disruptions in the chain logistics.

In addition, the failure to reconstitute a pool of French banks guaranteeing contracts executed in France led to the loss of two contracts signed in 2021 (La Réunion and Mayotte for €6.5 million in revenue).

The VERGNET Group overcame these difficulties thanks, in 2020, to the PGE and Atout loan from the BPI (for €2.2 million), and in 2021, to the €7 million line of financing from Park Capital.

The last tranche of this financing line was drawn down in December 2021.

Better still, despite the harsh times, VERGNET has prepared for the future (see press release of 4/01/2022), both strategically and technically.

2022, year of recovery

Although the consequences of the pandemic are still present (rises in cost prices, major disruptions in the supply chain, etc.), the year 2022 will mark a clear recovery for the VERGNET Group.

Turnover of the Group should be between 40 and 45 M€, driven in particular by the Agadez contract (Niger) and by the rapid development of our subsidiary VERGNET Pacific, as well as the continuation of the Antigua contract signed in 2018.

This turnover is based on the export counter-guarantees issued by the BPI for €9.6 million, as well as on the contractual guarantees obtained by the Group from the BGFI (Niger) and the BCI (VERGNET Pacific). for more than €11 million. It remains to reconstitute a banking pool for operations in France (DOM), handicapped by the fact that the Group is still under the 2017 liabilities clearance plan and that it is leading several major disputes from this past period. 2022 could see the legal or amicable outcome of some of these disputes, in which VERGNET is in an offensive position and to which it has devoted a substantial level of expenses for lawyers, experts and arbitrators in past years.

In addition, the Group is pursuing its international development strategy by setting up units abroad in order to promote the capture of local markets. These locations should contribute profitably to turnover in 2022.

As for the result 2022, the Group is aiming for break-even, despite intense pressure from rising cost prices. The effort to reduce expenses will be continued, given the decentralization of the Group, which makes the head office in Ormes excessively heavy.

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In terms of funding, mainly the increase in turnover and the volume of late payments will make it necessary to strengthen working capital. As far as possible, the Group will use non-dilutive financing to deal with this. In addition, the settlement of certain disputes could make a useful contribution.

Finally, at the strategic level, the VERGNET Group has strengthened its role as a player in sustainable development by adhering to the United Nations Global Compact. VERGNET thus joins, by subscribing to the ten commitments of this Pact (cf. Attachment), the most important international initiative of voluntary commitment in terms of sustainable development. These concerns are increasingly present in the requests of our customers and prospects.

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All in all, since the takeover of VERGNET by its new reference shareholders at the end of 2017, the Group has not experienced any financial year without major disruption. The year 2022, if it is not sidelined by external factors with serious consequences, should mark the first stage of a return to normal for the Group, thus allowing it to give its full potential.

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PJ: The ten principles of the United Nations Global Compact

About Vergnet SA

The Vergnet Group is the specialist in the production of renewable energies: wind, solar, hybrid. On the strength of unique technologies, the Group has developed the Hybrid Wizard, a hybrid system that controls in real time the share of renewable energies injected into the electricity grid, guaranteeing operational safety and security for island or isolated networks.

The Group has installed more than 900 wind turbines and 365 MW of all energies combined. It is present in more than 40 countries and has 200 employees in 12 locations.

Vergnet has been listed on Euronext Growth since June 12, 2007.

VSCONTACTS

Vergnet Group President Patrick Werner Tel: 02 38 52 59 98 [email protected]

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