VELCAN HOLDINGS: HALF YEARLY RESULTS (CONSOLIDATED AND UNAUDITED) - OPERATING LOSS BUT GOOD FINANCIAL PERFORMANCE, EUR 6.1m NET RESULT SUSPENSION AND FULL IMPAIRMENT OF INDIAN HYDRO PROJECTS

PRESS RELEASELuxembourg, 22 ndOctober 2021 VELCAN HOLDINGS:HALF YEARLY RESULTS (CONSOLIDATED AND UNAUDITED) OPERATING LOSS BUT GOOD FINANCIAL PERFORMANCE,EUR 6.1m NET RESULT SUSPENSION AND FULL IMPAIRMENT OF INDIAN HYDRO PROJECTS ,  30.06.202130.06.2020 Var % Turnover Half Year (Million Euros) 0.81.0-13% EBITDA Half Year (Million Euros) -1.8-1.3-36% Net Result Half Year (Million Euros) 6.1-2...

Luxembourg, 22/10/2021 (informazione.news - comunicati stampa - energia)

PRESS RELEASE

Luxembourg, 22 October 2021

VELCAN HOLDINGS : HALF YEARLY RESULTS ( CONSOLIDATED AND UNAUDITED)
OPERATING LOSS BUT GOOD FINANCIAL PERFORMANCE, EUR 6.1m NET RESULT
SUSPENSION AND FULL IMPAIRMENT OF INDIAN HYDRO PROJECTS ,

        
Note: half yearly financial statements are not audited

Brief comments on 202 1 first half

The concession agreements are the central foundation of the projects as they are the basis of all technical and environmental licenses and authorizations, and the basis for further projects development, including their bank financing. In absence of the above-mentioned amendments, the current concession agreements are inadequate and the Techno-Economic Clearances granted by the Government of India in 2015 are technically not valid anymore.

During H1 2021 and after almost one year of complete inactivity, some of the land surveys required by the land acquisition procedure, were completed in March 2021 but the overall procedure did not make progress, as the section 19 could not be completed. As for the other project activities (notably access roads, forest clearance and power purchase agreement) presented in detail in the annual report published in April 2021, no progress is to be reported for H1 2021.

Not seeing any possibility of further discussion with GoAP, Velcan Holdings decided to suspend the projects, as they are not in a position to make any progress at all under such circumstances. The Group's entire Indian operations were suspended, and the Group's New Delhi Office as well as site offices have been shut down by the end of Q3 2021. The Group will continue to monitor the evolution of the Indian hydropower market, and although it is not favorable at the moment, will look for a possible majority partner to take over the projects and the development operations.

The complete half yearly report 2021, including the condensed and non-audited financial statements as of 30 June 2021, is available online at http://www.velcan.lu/investors/reports-accounts/

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Investor Relations Contact        investor@velcan.lu

A bout Velcan Holdings

Velcan Holdings is an investment holding company founded in 2005, managing a global portfolio of participations.

Velcan Holdings' headquarters are in Luxemburg, with administrative and financial offices in Singapore and Mauritius.

The company was launched more than 15 years ago by its reference shareholder LHP SA, owned by Velcan Holdings' management team.

Velcan Holdings is listed on the unregulated Euro MTF Stock Market in Luxembourg (Ticker VLCN/ISIN FR0010245803). Velcan Holdings never performed any Public Offer as understood under Directive 2003/71/CE of the European Parliament and Council.

Disclaimer

This press release contains prospective information about the potential of the projects in progress and/or of the projects of which the development has begun. This information constitutes objectives attached to projects and shall not be construed as direct or indirect net income forecast of the concerned year. Reader's attention is also drawn on the fact that the performance of these objectives depends on future circumstances and that it could be affected and/or delayed by risks, known or unknown, uncertainties, and various factors of any nature, notably related to economic, commercial or regulatory conjuncture, which occurrence could be likely to have a negative impact on future activity and performances of the Group.

This announcement does not constitute a public offering (“ offre au public”) nor an invitation to the public or to any qualified investor in connection with any offering. This announcement is not an offer of securities in the United States of America or in any other jurisdiction/country.

See full details in chart page 5 of the H1 report, the total is more than 100% because of the overdraft facility which accounts negatively in the portfolio for -21%.
Please refer to the half yearly report for complete details of the land acquisition status.

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