OREGE

Annual results 2019 & activity - Seite 3

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  Total net operating expenses - 9 264 - 10 797       Operating loss -8 329 -8 537 Net financial loss -1 859 -2 378 Corporation tax - - Net loss -10 188 -10 915

Turnover

Turnover for the year 2019 was 935 k€ compared to 2 260 k€ for 2018.

Operating expenses

Total operating expenses were down 14% compared to the previous year. This decrease is principally a result of the continuous efforts to optimize the organization of Orège and to reduce the costs related to the development of SLG solutions.

Financing and cash flow

At 31 December 2019, the Group had 237 k€ of cash and cash equivalents (321 k€ at 31 December 2018).

Financial debt totaled 17 849 k€, including 15 767 k€ of shareholder current account advances (2018: 44 975 k€, including 42 443 k€ of shareholder current account advances). Net equity was -12 186 k€ (2018: -40 670 k€).

The balance of undrawn shareholder current account advances guaranteed by Eren Industries of 2 350 k€ at the date of this press release will enable the Group to meet all its financing requirements for the whole year in 2020.

Impact of the 2019 health crisis and measures taken and implemented by Orège

During this exceptional period, Orège management has worked to rationalize and optimize its organization, its costs and its cash.

A number of important measures have been taken and implemented since March 2020:

- A salary reduction of 20% for a dozen managers (France, USA, UK) with effect from April and until the end of 2020, with a potential claw back clause once positive EBITDA reached.

- Implementation of the partial employment scheme for part of the Orège workforce in France (chômage partiel) and in Great Britain (furlough).

- Receipt of a loan from the United States federal government (PPP loan scheme) for an amount of $ 180k, part of which should be transformed into a grant at the end of 2020 (about $ 100k)

- Early mobilization of the 2019 Research Tax Credit for a value of 550k€

- Significant reduction in costs (termination of certain service providers and consultants, renegotiation of real estate leases, etc.)