Risk management

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General risks and factors of uncertainty concerning operations

The most significant risks involved in Savosolar’s business are the ability to win new projects to achieve growth in line with the strategy, the sufficiency of the necessary working capital, and the ability to increase the efficiency of operations so as to turn the operations profitable.

War in Ukraine has increased the uncertainty of supply chain and price level of materials and components following the Covid-19-pandemic. Savosolar does not directly use materials or components of Russian or Ukrainian origin. However, the war may increase prices and prolong delivery times. If continued for a long time, this may slow down Savosolar’s growth of business and improvement of profitability. On the other hand, the higher energy prices, and reducing the use of Russian fossil fuels are seen to have a positive impact on the demand on renewable energy thus fostering also Savosolar’s business development.
The company’s Board of Directors monitors the development of the company’s profitability and cash flow actively and, together with the company’s management, seeks the best solutions to develop the company towards profitable long-term business. The Board of Directors continuously considers the sufficiency of financing as an important part of the company’s growth strategy. Considering the outlook for the industry, the Board is confident that the company will be able to raise the necessary equity and debt capital to achieve the growth and profitability in line with its strategy.
However, it cannot be guaranteed that the volume and profitability of the company’s business will grow sufficiently and that the company can gain enough supplementary finance just on time and with terms and conditions that are favourable enough for the present shareholders. In case the company does not succeed in generating growth and improving its profitability and/or raising additional financing to meet the needs of business, the company may be forced to postpone, cut back or terminate operations.

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