TRESU Q3 2023 Financial Report

Risk factors (continued) 4.19. Liquidity risk TRESU In order to manage fluctuations in cash flows in the best way possible, the Group has a revolving credit facility agreement with Nykredit (the "Super Senior Revolving Credit Facility Agreement"). The maturity date of the Super Senior Revolving Credit Facility Agreement is to be extended to end of November 2026 in connection with the extension of the maturity date for the Bonds, and the establishment of a new Super Senior Term Loan Facility pursuant to the Super Senior Revolving Credit Facility Agreement. The Super Senior Revolving Credit Facility is a committed facility meaning that the lender thereunder is obliged to advance loans at the borrower's request. In case of a breach of certain terms and conditions of the Super Senior Revolving Credit Facility, the Group has a right to remedy the breach without undue delay, and failing that, a lender is entitled to cancel the entire or part of its commitment. Large capital orders usually have a positive effect on cash flow as projects usually are cash flow positive due to project prepayments at various project milestones. However, some customers may require prepayment guarantees, which may neutralise the otherwise positive cash flow position. The Group is currently negotiating an extension of Tresu A/S' committed but unsecured DKK 50m guarantee facility (the "Guarantee Facility") from 31 May 2024 to end of November 2026 which is required for certain future orders and the Group will be dependent on this guarantee facility to obtain certain new orders. The Group's majority shareholder has provided a guarantee in order to secure the Guarantee Facility. If, for any reason or at any time, the Group cannot get access to liquidity on commercially acceptable terms and conditions or at all, the business, results of operations, financial condition and/or prospects of the Group may be materially adversely affected and could result in a loss for each Bondholder of part or all of each Bondholder's investment in the Bonds. 4.20. The Group is subject to national and international regulations and faces health, safety and environmental risks The Group's production and other activities are subject to complicated regulations, including in areas such as product safety, labour laws, and environmental and data privacy regulation, as well as industry standards and practices. The Group incurs significant costs and expenditures to comply with the laws and regulations in the EU where it has production facilities, including health, safety and environmental laws and regulations. If such costs cannot be fully recouped through sales to customers, or if such laws and regulations force the Group to stop production for longer or shorter periods of time, this could have a material adverse effect on the Group's business, financial condition and results of operations. Notwithstanding the Group's endeavours to comply with all relevant rules, regulations and standards applicable to it, there can be no assurance that the Group has complied or will comply with all relevant rules, regulations and standards. Any failure to comply with applicable rules, regulations and standards could lead to claims being raised against the Group for damages, costs, fines etc. or other sanctions or that public authorities order the Group to change its production processes. Amendments to existing or introduction of new rules, regulations and/or industry standards may lead the Group to incur substantial costs. In case of work related accidents, the Group may face claims from current or former employees, professional labour bodies, unions or governmental agencies. Any significant accident could interrupt production and result in personnel injuries, damages to properties, fatal accidents and legal and regulatory liabilities. Likewise, the Group may face claims from third parties in the event the Group causes any pollution of third party properties, ground water or the air. Such incidents may also lead to a need for initiating remedial environmental measures or to suspension or shut down of operations. While the Group has taken out insurance to cover such risks, there can be no assurance that such insurances will be sufficient to cover the costs and losses actually incurred. The occurrence of any of the above could have a material adverse effect on the Group's business, financial condition and results of operations and could result in a loss for each Bondholder of part or all of each Bondholder's investment in the Bonds. 56 56

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