H1 Report 2018 — CEO’s Review

By Lassi Noponen

I am writing this for the first time as the CEO of Loudspring, also as part of a whole new management team. We have promised to find ways to increase transparency into our portfolio and we have made changes to this report with an aim to give readers more information in a relevant framework to form a comprehensive picture of how Loudspring businesses are performing, as well as their future outlook. For this aim, we have also worked with Inderes, which has started providing coverage of Loudspring. This is also the first time Loudspring provides financial targets for subsidiaries. I trust, these actions will serve shareholders and investors well, and we will continue developing reporting as we go forward.

It has been another action packed half year for Loudspring. Loudspring has a diversified business portfolio and while some have faced challenges and setbacks in their growth process, I am pleased to say that many have achieved good results. Eagle Filters has been strengthening its organization as well as international footprint and we expect to soon see results from these investments. Nuuka Solutions has been signing large customers in Europe and in the United States. The deal with the City of Helsinki, installing Nuuka into a large portion of Helsinki’s public buildings, is a major milestone not only for Nuuka but also for the City of Helsinki in its strategy to become the world’s leading city in digitalization. ResQ Club has continued its growth as it crossed 700 000 portions sold. Operationally, the company has focused on profitability and long term growth. In the United States, Swap.com has radically shifted its focus towards achieving profitability and efficiency, putting technology at its core for long term feasibility. As you can read from this report, progress has been good in most of our companies and our team has been hands on in supporting our core holdings.

Investing into early stage companies is extremely risky and that is why Loudspring has built a portfolio of companies to diversify such risk. Unfortunately, not all early stage companies will succeed, but Loudspring allows investors to invest into this asset class with diversified risk. Over the years, just about every company in our portfolio has gone through tough situations, some have not made it but most have emerged stronger. Nocart has been undergoing a very tough period due to the well published delays in the company’s projects in Africa. Nocart is an example where risk and potential reward go hand in hand. Nocart continues to work hard on its projects and aims to secure capital needed due to the project delays, and also recently announced a new major project in Kenya.

Saving natural resources is Loudspring’s mission, and it is a truly important one. We will continue on this mission and believe it is a unique long term business opportunity.

Read the full H1 Report by following this link: http://loudspring.earth/files/Loudspring_half-year_review_2018.pdf