KLIMVEST : INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2021

Company No: 04426643

KLIMVEST PLC

INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 JUNE 2021

KLIMVEST PLC

INTERIM REPORT

FOR THE SIX MONTHS ENDED 30 JUNE 2021

CHAIRMAN'S STATEMENT

I am pleased to present a report of Klimvest PLC's activities for H1 2021.

SUMMARY

Since October 15 2020, and the filing of a petition at the High Court in London by a director/shareholder in view of obtaining the winding up of the Company, the assets of the Company are frozen as have been the project to redeploy the Company cash on new projects.

In this context, the focus of the management has been to handle the petition process in its position as co-respondent, through a sub-committee excluding the Chairman, who is separately a co-respondent through his holding, Klimt Invest SA.

The second priority of the management has been to try to clear remaining liability resulting from the business that was the subject of the Assets Sale of January 2019.

Klimvest PLC received in May 2021 a claim of €430,000 from a German lawyer representing our ex General Manager for Germany who was the principal owner of the ELS business in Germany that was purchased and became the core of the German operations. The claim presented alleged that a partial payment resulting from the earn-out contracted in 2011 is due..

The PLC's position, confirmed to the claimant, is that no evidence has been provided to support that claim, as is required in the 2011 contract and its addendums.

The Chairman informed PartnerOne Acquisitions, the acquirer of the assets, of that claim. Under the Assets Purchase Agreement (APA), the purchaser of the assets is the ultimate party liable to any payment made by the PLC in execution of the earn-out. As of the date of this statement, no further action has been notified to the Company.

In addition, after unsuccessful and repeated attempts to receive payment by PartnerOne of debt resulting from the APA, the board has appointed a law firm to obtain this payment through a legal action.

The Company's pleadings have been prepared and were to be filed before the end of September. However, a new potential claim has come to the Company's attention and it is being evaluated

The claim is from an Asset Finance Company in relation to a business equipment lease that was transferred to the acquirer of the assets under the APA. The claim relates to arrears on a contract amounting to over £26,000, plus a demand that goods subject to the agreement be returned to the Asset Finance Company. If, notwithstanding the representation from PartnerOne that this lease had been transferred, the claim is substantiated, a further claim will be submitted against Partner One..

The Company will use all available legal recourse to obtain the full respect of the terms of the Assets Purchase Agreement, or obtain adequate financial compensation, to protect the interests of its shareholders.

The H1 2021 accounts, prepared on a going concern basis (see footnote 3), are still very simple for the reasons explained above.

Hereafter are the main figures that are detailed in the attached accounts.

Profit and Loss Accounts:

The income for the six months is only £5,389, from accrued interests. The total of expenses is £148,990, versus £120,709 for S1 2020.

The increase of expenses comes mainly from the legal costs incurred by the Company relating to the winding up petition. The total of additional expenses incurred on S1 2021 because of the petition is £61,014 (£41,014 legal fees from the law firm representing the PLC in the petition process, £12,000 for compensating the sub-committee, £8,000 for extra legal work from the PLC legal counsel).

The other top 3 expenses are: £67,398 wages and commissions, £18,967 (listing fees & Listing Sponsor), and £5,516 (insurances).

As a result, the loss for the first half of the year is £141,204.

Balance Sheet:

The total Company assets has decreased from £7,903,427 to £7,665,028 between June 30, 2020 to June 30, 2021.

The trade & other receivable position, at £175,991, is mostly attributable to the PartnerOne debt described above and is expected to be collected through the upcoming court action.

Statement of Cash-Flow:

The cash position at the end of the period is £7,489,037, against £7,747,297 for June 30 2020. The cash burned in S1 2021 has been £172,415.

Perspective for the full-year and 2021

The freeze of the Company assets will be effective until the petition trial, planned for first week of February 2022.

The exceptional legal Company's expenses are going to continue to build-up in S2 2021, with the Disclosure process of

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the petition and from the action against PartnerOne, and could potentially be in a range £120,000-£150,000 for the full- year.

In this legal context no new operation is allowed and there will be no announcement on new projects.

Nevertheless, I take comfort in the dual vote of confidence from shareholders, at the EGM of February 25, 2021, and at the AGM of My 24, 2021.

In February, a majority of shareholders rejected a resolution to initiate the voluntary liquidation of the Company.

In May, a majority of shareholders supported a resolution to invest the Company cash on new ventures, if and when the board will regain all powers delegated by the Articles of Association.

Michel Balcaen

Chairman

5th October 2021

KLIMVEST PLC

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15th October 2020

KLIMVEST PLC

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2021

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