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Investor Presentaiton

RISK FACTORS (3/5) New technology and impact of faults in an early phase Ocean Sun The FPV systems developed by the Group represents new technology in the market, which means that customers and potential customers have little to no experience with the Group's products. In this phase, there is a risk that any defaults or unsuccessful projects, which could be due to factors within and outside of the Groups control, could have a proportionate material impact on the reception of the technology in the market and be decisive in respect of whether customers are willing to invest in the technology and buy the Group's products and services, and which in turn can have a significant severe impact on the Group's ability to successfully establish itself in the market and implement the Group's business plan. The Group is reliant on key personnel The Group has currently a limited number of employees. All such employees are considered important for the Group's success and ability to implement its business model. Consequently, any loss of current key employees may be detrimental to the Company and its business. Further, the Group's future growth and success depends, in part, upon the leadership, performance and continuing service of key personnel. The Executive Management's technical, finance, marketing and administrative skills and experience are important to the operation of the Group's business. The Group's ability to meet its operational requirements and its future growth and profitability is dependent upon, amongst other things, its Executive Management. If any key person resigns, a suitable replacement with requisite skills, contacts and experience may not be immediately found and the Group may experience negative market or industry perception, which could have a material adverse effect on its business, financial condition, prospects and results of operations. The Group's ability to continue to identify and develop opportunities depends on the management's knowledge of, and expertise in, the industry in and such local jurisdictions and on their external business relationships. The Group's growth and success also depend on its ability to attract, hire and retain additional highly qualified and skilled technical, research, sales, managerial and finance personnel. If the Group experiences shortage of skilled personnel, or, if a significant portion of the employees were to engage in strikes, work slowdowns or other actions, the Group may not be able to continue to sell its products, develop new products or effectively manage its global operations. Further, any failure to effectively integrate new personnel could prevent the Group from successfully growing. The counterpart of being dependent on retaining its key personnel, is that the Company faces a corresponding risk of losing its employees to competitors and that they bring with them knowledge about the IPR of the Company. The Company has, however, included non-compete provisions in its employee agreements to mitigate this risk. The Group may not be able to implement its business strategy successfully or manage its growth effectively The Group's strategy is to grow through a focus on five key areas: constantly develop the product offering through extensive research and development; utilizing projects and pilot opportunities with a solid working capital; expanding the organisation to ensure global presence in the key regional markets; ensuring industry presence in seminars, exhibitions and other relevant industry forum, and; working with strategic partners - both within the supply network and with strategic rollout partners The Company would then look to accelerate this growth primarily through expansion of workforce (ref. Section 4.2 - Business model and strategy). The Group's ability to implement its strategy and achieve its business and financial objectives is subject to a variety of factors, many of which are beyond the Group's control. A principal focus of the Group's strategy is to capitalise on the increase demand for FPV systems by expanding into new regions (such as Asia-Pacific and Latin and South America) and expansion of its marketplace offering. The success of executing this strategy will depend on several factors, including the Group's ability to: ensure presence on the market; " provide a competitive product in the local market; attract customers; and deliver on its obligations The Group's failure to execute its business strategy or to manage its growth effectively could adversely affect the Group's business, prospects, financial condition and results of operations. In addition, there can be no guarantee that even if the Group successfully implements its business strategy, it would result in the Group achieving its business and financial objectives. The Group's Executive Management targets to review and evaluate the business strategy with the Board of Directors on a regular basis and the Group may decide to alter or discontinue elements of the Group's business strategy and may adopt alternative or additional business strategies in response to the Group's operating environment or competitive situation or other factors or events beyond the Group's control. 6
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