From Interim Report Jul – Sep 2022

CEO COMMENT

Dear Heliospectra AB (publ) Shareholder,

‍So far, 2022 has been a year of transition for Heliospectra. Not only did we re-work our strategy to focus on our new wireless solutions offering, but the company has undergone an organizational change to bring the cost back in line with the topline. This past quarter, our focus has been on closing the numerous trials initiated in Q2, allowing us to test and validate our newsolution offering and value proposition.

‍Our sales and helioCARE team, in close partnership with our Dutch and Canadian partners, have worked hard to close and secure several installations with prominent growers in the Netherlands, Denmark, the UK, and Canada. With these installations in numerous commercial greenhouse environments and on different crops, we are able to improve our solutions further while putting a number to the actual value for our customers.

‍Our SMART lighting solutions are supporting our mission to Redefine Natures Potential. Heliospectra’s high quality Led fixtures in combination with our SMART software makes it possible to “speak” with each individual MITRA LED light ina greenhouse via a robust wireless communication protocol. Replacing HPS lights with our MITRA LED lights brings already a significant energy saving for our customers. But with our SMART software solution including Dimming, Zoning and DLI control Features, Heliospectra makes it possible to gain another substantial energy saving by not using the lights when not needed and will make it possible to optimize growing condition as we can automate light with our sensors on a microclimate-level.

‍The current installations will enable us to build on our reference base in this part of the world, and we are confident this will significantly support our sales team during 2023.

‍The horticulture industry, and as an extension Heliospectra, continues to be affected by the economic uncertainty in the market. High energy and gas prices force growers to close winter production or transition to more energy-efficient solutions. While it is delaying and negatively affecting growers’ volition to invest in new greenhouse projects or upgrades, it drives demand for LED lighting solutions in the mid and long run. We believe it will put us in an advantageous position once the economic climate turns.

‍The refocus of our strategy and the uncertain times for ourcustomers as described above are still affecting our net salesresults. However, on the positive side, our order intake increased compared to the previous quarter.

‍Last 6 months, we have carried out a major cost saving program and simplified our organization, decreasing our operational expenditures as of November 2022 significantly compared to last year to meet the current situation. With the new strategy and our competitive and unique SMART lighting solution ready to market, I am convinced our topline will increase in next fiscal year 2023. But as lighting season in Northern hemisphere will start after the summer, we will continue experiencing a strained liquidity situation coming months. To secure liquidity in the short term, Heliospectra’s three main owners- Weland Stål AB, Agartha AB, and Corespring New Technology AB, granted Heliospectra an unlimited credit facility in Q1of this year and that extends to the publication of the Year End Report 2022. While it provides us and the Board time to secure funding and liquidity in the long term, it also shows our main owners’ trust in the company’s new strategy and direction.

‍The product development team has done an incredible job building our product portfolio these past months to meet our new wireless data-driven direction, including finalizing the newgeneration MITRA LED fixtures, updating our helioCORE system, and developing our new wireless communication solution the Adelphi and will continue to improve our solutions as we receive real-time data and customer feedback in our presentinstallations, feedback that also helps us plan the pipeline for coming years. In addition, our marketing and sales team has identified the segments of the horticulture lighting market on which we will focus in 2023 to bring in new projects and grow our customer base in the main horticulture markets.

‍As we are rolling out the new wireless data-driven strategy in full, with our new agile and customer-focused organization that is quick to scale up as needed, I am excited to see how far we can come in 2023.

‍

Bonny Heeren,

CEO Heliospectra AB

Bonny Heeren, CEO Heliospectra