Investor Presentaiton

RISK FACTORS (2/5) Ocean Sun Risks relating to sub-contractors and supplier/partner network The Group's business model is to use external suppliers for, among other things, components in its FPV systems through a supplier/partner network. No firm, long-lasting partner agreements are entered into. Further, due to the early phase of the Group's development, the supplier/partner network has limited experience and track-record. Inability to maintain a logistic network for deliveries or other problems in the supply chain, such as delays, cost-overruns, error with products, etc, may have adverse consequences for the product and services to be delivered by the Group, compliance with project agreements, customer relations etc., resulting in adverse effect on the Group's business and results of operation. The loss of key suppliers could result in costs for the Group and there is a risk that the Group may not be able to replace the supplier with adequate alternative suppliers, at commercial attractive terms or at all. Each such risk could adversely affect the Group's business and results of operations. The Group seeks to use established sub-contractors, however, no assurance can be given that its sub-contractors are able to perform their contractual obligations in time or otherwise in accordance with agreement. The Group is consequently exposed to risks relating to subcontractors not being able to fulfil its contractual obligations, which in turn could delay or prevent the Group's delivery of FPV-systems to projects. Going forward, the Company intends that the engineering, procurement & construction ("EPC") contractor will have the responsibility for the procurement of materials from suppliers. The Company will, however, risk reputational damages should the material supplier or the contractor fail to perform its obligations. Risk of projects being delayed in time creating uncertainties as to the cash inflow The construction of a utility scale solar plant is a large undertaking where project duration from initiation to completion can span over several years. During the project duration, important risks can relate to the feasibility of the chosen project location, weather and natural conditions, obtaining and maintaining permits and approvals for the projects, technical risks in connection with the installation of the systems and delays caused by subcontractors (as described herein). In general, materialisation of such risks could lead to amendments to the project and delays, which in turn can have adverse effect on cash flows of the Group. Technological evolution The market for the Group's products and services is subject to continued evolution in technology, evolving industry standards, changes in customer needs, competition and frequent new product introduction. As such, the Group will require significant investments in scaling up the organization to keep good traction in technology development and scale up sales force. If the Group is unable to anticipate future changes in technology and customer requirement, or fails to develop and introduce its technology and services on a timely basis, it may have an adverse impact on the Group's business and prospects. There can be no assurance that the Group will have sufficient resources to make such investments. Furthermore, if any technical or other difficulties that could delay the introduction of new technologies or enhancements, are encouraged, further investment may be required to endure the desirability of the Group's product and service to customers. Risks relating to obtaining future financing needed in order for the Group to achieve its goals The Group is dependent on additional financing to be able to reach its growth goals. The Group's ability in the future to obtain additional capital on commercially reasonable terms, or at all, may be limited. If the Group is unable to obtain such financing on commercially reasonable terms, it could reduce funds available to the Group for purposes such as financing its working capital, capital expenditures, strategic acquisitions and other general corporate purposes. Further, it could restrict the Group's ability to introduce new products or exploit business opportunities, and it could increase the Group's vulnerability to economic downturns and competitive pressures in the markets in which it operates and place the Group at a competitive disadvantage. Market price of electricity generated from renewable energy sources The Company's business model entails that the Company's sales of license agreements and services constitute a material share of its future, possible gross profit. The profitability of FPV systems depends to a large extent on the sales price of the electricity produced. Thus, the Group's profitability depends on the demand for FPVs, which will to a certain extent be affected by the price of electricity generated from renewable energy sources. The Group is reliant on its customers reducing the effect of price fluctuation by inter alia entering into long-term fixed price contracts. While this is further influenced by government subsidies and support, the future development of the FPV industry in general, and the Company in particular, will to a significant degree depend on the development in electricity market prices over time. Electricity prices depend on a number of factors including, but not limited to, availability and costs of primary energy sources (including oil, coal, natural gas and uranium), and the development in cost, efficiency and equipment investment need for other electricity producing technologies, including other renewable energy sources. A decline in the costs of other sources of electricity, such as fossil fuels or nuclear power, could reduce the wholesale price of electricity. A significant amount of new electricity generation capacity becoming available could also reduce the wholesale price of electricity. Broader regulatory changes to the electricity trading market (such as changes to integration of transmission allocation and changes to energy trading and transmission charging) could have an impact on electricity prices. A decline in the market price of electricity could materially adversely affect the financial attractiveness of new projects. Government subsidies, incentives and other support mechanisms The Company has previously been granted public funding from Norwegian authorities. However, there is no guarantee that the Company will qualify for such grants in the future. Consequently, it is a risk that the ability for the Group to access public funding, in Norway or elsewhere, could be unavailable, limited or restricted. Political developments could lead to a material deterioration of the conditions for, or a discontinuation of, current incentives for PV solar power plants. It is also possible that government financial support for FPV will be subject to judicial review and determined to be in violation of applicable constitutional or legal requirements, or be significantly reduced or discontinued for other reasons. A reduction of government support and financial incentives for the installation of FPV in any of the markets in which the Group currently operates or intends to operate in the future could result in a material decline in the availability of investment opportunities. The Group has activities in a number of markets, including [Norway, Albania, South Korea, the Philippines, China and Singapore]. The Group is also planning to broaden its market presence and will also become active in new markets going forward. Incentives for FPV energy are currently important in all these markets. The Group's business is dependent on its ability to maintain and scale its technical infrastructure The Group's business depends on FPV technology and method of installing. In order for the Group to compete effectively, the Group must reduce product costs and improve its technology. If the Group fails to successfully maintain, expand or upgrade its products and method of installing, or is unable to do so on a timely basis, or on commercially reasonable terms, its offerings and services may become less attractive to customers, and the Group may lose customers and partners to its competitors. The Group may not be able to develop new technology that may be required to expand and/or keep up with competitors The Group has a growth strategy and is targeting an expansion of its customer base for existing and new products. Research and development are expensive, time-consuming, and entails considerable uncertainty with respect to both achieving positive results and, if successful, the ability to commercially sell products and services using such technology. Due to long development processes, changing regulatory requirements, changing market conditions and customer preferences and other factors, new variants of existing technologies or new technologies may take longer and cost more to develop and may be less successful than the Group anticipates. It is expected that an increased target market and customer base will result in increased competition. Furthermore, the Group may be unable to reduce costs as required to maintain a competitive position. No assurance can be given that any existing or new technologies under research and development will be commercially successful. If the Group is unable to keep up with competitors, develop new technology or have commercial success with its existing or technology under research and development, this could adversely affect the future development on the Group's business, financial condition, results of operations and/or prospects. FPV is a fairly new industry and, as such, experience with FPV has been developing rapidly due to practical implementation of research taking place in several different companies simultaneously. FPVs in general have experienced some challenges that deviate from, inter alia, energy efficiency, evaporation, installation at scale, weather resistance, maintenance, algae growth, deployment and transportation. The Group's ability to stay on top of and contribute to this development will impact the success of the Group as well as the development of the whole industry. As FPV is a relatively new concept still in the development phase, there is no guarantee that it will be competitive with traditional methods of producing solar energy. In addition to the inherent risks involved due to the Group being in a development phase in a new industry, such as risks related to faults in maintenance and the Group's technology etc., there is also a risk that the Group's commercialisation strategy is found in-efficient or unattractive, and that other competitors in the industry are able to commercialise at a more rapid pace than the Group, which may in turn have material adverse effects on the Group's results, financial condition, cash flows and prospects. 5