Array (ARRY) 8-K Other Events

Exhibit 99.2

KPMG Auditores, S.L.
Edificio Iruña Park Arcadio M. Larraona, 1 31008 Pamplona

Independent Auditors’ Report

To the Shareholders and to the Directors of Soluciones Técnicas Integrales Norland, S.L. (Sociedad Unipersonal)

Qualified Opinion    

We have audited the consolidated financial statements of Soluciones Técnicas Integrales Norland, S.L.U., and its subsidiaries (the Company) which comprise the consolidated balance sheet as of 31 December 2021, and the consolidated income statement, statement of changes in consolidated net equity and statement of consolidated cash flows for the year then ended, and the related notes to the consolidated financial statements.

In our opinion, except for the omission of the comparative financial information as described in the Basis for Qualified Opinion section of our report, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and the results of its operations and its cash flows for the year then ended in accordance with the Spanish General Chart of Accounts approved by Royal Decree 1514/2007, the Standards for the Preparation of Consolidated Annual Accounts approved by Royal Decree 1159/2010 and subsequent amendments.

Basis for Qualified Opinion    

As more fully disclosed in Note 2.4 and 2.1 to the consolidated financial statements, the Spanish General Chart of Accounts approved by Royal Decree 1514/2007 requires that consolidated financial statements be presented with comparative financial information. These consolidated financial statements as of and for the year ended 31 December 2021 have been prepared solely for the inclusion in the U.S. Securities and Exchange Commission filings of Array Technologies Inc. Accordingly, no comparative financial information is presented.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion.

Emphasis of Matter     

We draw attention to the explanatory note 23 in which the Directors state that the accounting principles and criteria used in the preparation of the accompanying consolidated financial statements, differ in certain material respects from generally accepted accounting principles in the United States of America. Information with regard to the nature and effect of these differences on consolidated results for the year and the consolidated balance sheet as of 31 December 2021 is presented in note 23 to the accompanying consolidated financial statements. Our opinion is not modified in respect of this matter.

Responsibilities of the Directors for the Consolidated Financial Statements    

The Directors are responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Spanish General Chart of Accounts approved by Royal Decree 1514/2007, the Standards for the Preparation of Consolidated Annual Accounts approved by Royal Decree 1159/2010 and subsequent amendments, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Directors are required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the consolidated financial statements are available to be issued.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements    

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with US GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

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• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

KPMG Auditores, S.L.

Pamplona, Spain

21 March 2022

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SOLUCIONES TÉCNICAS INTEGRALES NORLAND, S.L. AND SUBSIDIARIES

Consolidated Financial Statements

for the year ended 31 December 2021

SOLUCIONES TÉCNICAS INTEGRALES NORLAND, S.L. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET FOR THE

YEAR ENDED 31 DECEMBER 2021

ASSETS	Notes		31/12/2021
A) NON-CURRENT ASSETS				3.567.245
I. Intangible assets		4		480.891
1. Consolidated Goodwill				148.646
2. Other Intangible assets				332.245
II. Property, plant and equipment		5		2.885.475
1. Land and Constructions				769.594
2. Technical installations and other property, plant and equipment				2.060.350
3. Under construction and advances				55.531
V. Long-term financial investments		7.1		29.479
VI. Deferred tax assets		14.3		171.400
B) CURRENT ASSETS				189.450.837
II. Inventory		12		54.411.945
III. Commercial debtors and other accounts receivable				102.724.181
1. Trade receivables for sales and services		7.1		95.062.741
3. Current tax assets		14.2		88.770
4. Other receivables		7.1 - 14.2		7.572.670
V. Short-term financial investments		7.1		107.305
VI. Prepayments for current assets				286.034
VII. Cash and cash equivalents		7.1		31.921.372
TOTAL ASSETS				193.018.082

NET EQUITY AND LIABILITIES	Notes	31/12/2021
A) NET EQUITY			59.191.908
A-1) Equity			52.808.803
I. Capital	10.1		275.000
1. Registered capital			275.000
III. Reserves	10.2		28.937.535
VI. Result attributed to parent company			23.596.268
1. Consolidated profit and loss			28.772.636
2. (Profit and loss non-controlling interests)			-5.176.368
VII. Interim dividend			0
A-2) Adjustments for change in value	11		-2.119.973
I. Conversion difference			-2.119.973
A-3) Grants, donations and bequests received	20		22.401
A-4) Non-controlling interests	10.5		8.480.677
B) NON-CURRENT LIABILITIES			14.361.176
I. Long-term provisions	16		3.977.282
II. Long-term debt	8.1		10.108.995
2. Debts with financial institutions			10.000.000
4. Other financial liabilities			108.995
IV. Deferred tax liabilities	14.3		274.899
C) CURRENT LIABILITIES			119.464.998
II. Short-term provisions			118.449
III. Short-term debt	8.1		30.792.418
2. Debts with financial institutions			30.792.418
4. Other financial liabilities			0
V. Commercial creditors and other accounts payable			88.335.862
1. Suppliers	8.1		60.968.236
3. Current tax liabilities	14.2		5.372.728
4. Other payables	8.1 - 14.2		21.994.898
VI. Short-term accruals			218.269
TOTAL NET EQUITY AND LIABILITIES			193.018.082

The accompanying notes form an integral part of the consolidated balance sheet for the year ended 31 December 2021.

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SOLUCIONES TÉCNICAS INTEGRALES NORLAND, S.L. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENT FOR THE

YEAR ENDED 31 DECEMBER 2021

CONSOLIDATED INCOME STATEMENT	Notes	31/12/2021
A) CONTINUING OPERATIONS
1. Net turnover	15		224.461.953
a) Sales			210.025.613
b) Services rendered			14.436.340
2. Changes in inventories of finished goods and work in progress	15		29.104.396
4. Supplies	15		-190.834.077
b) Consumption of raw materials and other consumables			-172.440.855
c) Work carried out by other companies			-18.393.222
5. Other operating income			57.726
b) Operating grants taken to income	20		57.726
6. Staff expenses			-12.484.287
a) Wages, salaries and related items			-9.748.076
b) Social charges	15		-2.736.211
7. Other operating expenses			-10.668.390
a) Losses, impairment and changes in trade provisions			-623.452
b) Other current management expenses			-10.044.938
8. Amortisation and depreciation			-540.838
9. Non-financial and other capital grants	20		32.912
11. Impairment and result on disposal of fixed assets			-2.883
b) Result for disposal and others			-2.883
14. Other results			132.889
A.1) OPERATING INCOME			39.259.401
15. Financial income			688.765
b) Marketable securities and other financial instruments			688.765
16. Financial expenses			-1.946.342
17. Variation in fair value of financial instruments			-271.192
18. Exchange differences	13		454.080
b) Other exchange differences			454.080
A.2) FINANCIAL RESULTS			-1.074.689
A.3) RESULT BEFORE TAX			38.184.712
23. Income tax	14.1		-9.412.076
A.4) RESULT FOR THE YEAR FROM CONTINUING OPERATIONS			28.772.636
B) DISCONTINUED OPERATIONS
A.5) RESULT FOR THE YEAR			28.772.636
Result attributed to parent company			23.596.268
Result attributed to non-controlling interests			5.176.368

The accompanying notes form an integral part of the consolidated income statement for the year ended 31 December 2021.

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SOLUCIONES TÉCNICAS INTEGRALES NORLAND, S.L. AND SUBSIDIARIES

STATEMENT OF CHANGES IN CONSOLIDATED NET EQUITY FOR THE

YEAR ENDED 31 DECEMBER 2021

A) STATEMENT OF RECOGNIZED CONSOLIDATED INCOME AND EXPENSES FOR THE

YEAR ENDED 31 DECEMBER 2021

	Notes		31/12/2021
A) Consolidated result for the year				28.772.636
Income and expenses directly attributable to net equity
I. by valuation of financial instruments				0
II. By cash flow hedges				0
III. Grants, donations and bequests received				23.751
IV. By actuarial profit and loss and other adjustments				0
V. Conversion difference		14.1		390.963
VI. Tax effect				-6.650
B) Total income and expenses allocated directly to consolidated net equity				408.064
Transfers to the consolidated income statement
VII. by valuation of financial instruments				0
VIII. By cash flow hedges				0
IX. Grants, donations and bequests received		20		-32.912
X. Conversion difference				0
XI. Tax effect		20		9.215
C) Total of transfers to the consolidated income statement				-23.697
TOTAL OF CONSOLIDATED RECOGNIZED INCOME AND EXPENSES (A + B + C)				29.157.003
Total income and expenses attributed to the parent company				23.980.635
Total income and expenses attributed to external partners				5.176.368

The accompanying notes form an integral part of the statement recognized consolidated income and expenses for the year ended 31 December 2021.

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SOLUCIONES TÉCNICAS INTEGRALES NORLAND, S.L. AND SUBSIDIARIES

STATEMENT OF CHANGES IN CONSOLIDATED NET EQUITY FOR THE

YEAR ENDED 31 DECEMBER 2021

STATEMENT OF CHANGES IN CONSOLIDATED NET EQUITY FOR THE

YEAR ENDED 31 DECEMBER 2021

	Capital		Reserves and results from previous years		Other partner contributions		result attributed to parent company		Interim dividend		Adjustments for change in value		Grants, donations and bequests received		Non-controlling interests		TOTAL
	Registered
	Note 10.1		Note 10.2		Note 10.2						Notes 11 and 13		Note 20		Note 10.5
C) BALANCE AT THE END OF YEAR 2020		275.000		11.971.732		1.616.495		25.029.340		-8.000.000		-3.836.335		28.997		2.949.675		30.034.904
I. Adjustments for changes in criteria from 2020
II. Adjustments for errors in 2020
D) ADJUSTED BALANCE AT THE START OF YEAR 2021		275.000		11.971.732		1.616.495		25.029.340		-8.000.000		-3.836.335		28.997		2.949.675		30.034.904
I. Total recognized consolidated income and expenses								23.596.268				390.963		-6.596		5.176.368		29.157.003
II. Transactions with partners or owners		0		15.349.308		0		-25.029.340		8.000.000		1.325.399		0		354.634		1
3. (-) Dividend distribution
7. Other transactions with partners or owners				15.349.308				-25.029.340		8.000.000		1.325.399				354.634		1
III. Other variations in net equity																		0
E) BALANCE AT THE END OF YEAR 2021		275.000		27.321.040		1.616.495		23.596.268		0		-2.119.973		22.401		8.480.677		59.191.908

The accompanying notes form an integral part of the statement of changes in consolidated net equity for the year ended 31 December 2021.

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SOLUCIONES TÉCNICAS INTEGRALES NORLAND, S.L. AND SUBSIDIARIES

STATEMENT OF CONSOLIDATED CASH FLOWS FOR THE

YEAR ENDED 31 DECEMBER 2021

		Notes	31/12/2021
A) CASH FLOWS FROM OPERATING ACTIVITIES
1. result before tax				38.184.712
2. Adjustments to result				2.869.858
( + )	a) Amortisation and depriciation			540.838
( + / - )	c) Change in provisions			981.702
( - )	d) Grants recognised in the income statement			-32.912
( + / - )	e) Profit / loss on the disposal of fixed assets			2.883
( - )	g) Financial income			-688.765
( + )	h) Financial expenses			1.946.342
( + / - )	i) Exchange differences			390.962
( + / - )	j) Variation in fair value of financial instruments			-271.192
3. Changes in current capital				-67.816.291
( + / - )	a) Inventory			-39.399.862
( + / - )	b) Trade receivables for sales and services			-81.378.102
( + / - )	c) Other current assets			-41.629
( + / - )	d) Creditors and other accounts payable			54.637.184
( + / - )	e) Other current liabilities			-1.633.882
( + / - )	f) Other non-current assets and liabilities			0
4. Other cash flows from operating activities				-10.141.735
( - )	a) Interest payments			-1.946.342
( + )	c) Interest collection			688.765
( + / - )	d) Income tax collection/payment			-8.884.158
5. Cash flows from operating activities				-36.903.456
B) CASH FLOWS FROM INVESTMENT ACTIVITIES
6. Investment payments				-1.406.793
( - )	d) Intangible assets			-146.094
( - )	e) Property, plant and equipment			-1.260.699
( - )	g) Other financial assets			0
7. Payments received for divestitures				430.399
( + )	d) Intangible assets			132.428
( + )	e) Property, plant and equipment			99.995
( + )	g) Other financial assets			197.976
8. Cash flows from investment activities				-976.394
C) CASH FLOWS FROM FINANCING ACTIVITIES
10. Collection and payment for financial liability instruments				27.256.999
	a) Issue			35.147.862
( + )	2. Debts with financial institutions			35.124.111
( + )	3. Other debt			0
( + )	4. Grants, donations and bequests received			23.751
	b) Return and amortization of			-7.890.863
( - )	2. Debts with financial institutions			-7.760.065
( - )	3. Other debt			-130.798
11. Payments for dividends and remuneration of other equity instruments.				0
( - )	a) Dividends			0
12. Cash flows from financing activities				27.256.999
D) EFFECT OF VARIATIONS IN THE EXCHANGE RATE				0
E) NET INCREASE/REDUCTION IN CASH AND CASH EQUIVALENTS				-10.622.851
Cash or equivalent at the beginning of the year				42.544.223
Cash or equivalent at the end of the year				31.921.372

The accompanying notes form an integral part of the statement of consolidated cash flows for the year ended 31 December 2021.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR

THE YEAR ENDED 31 DECEMBER 2021

1. GROUPCOMPANIES

1.1. PARENTCOMPANY

SOLUCIONES TÉCNICAS INTEGRALES NORLAND, S.L. (hereinafter STI Norland S.L. or the Parent Company) was incorporated as a Limited Company on 2 April 1996 and has not changed its name since. Its current head office is at Avenida de Sancho el Fuerte, 26, Oficina 1, Pamplona (Spain).

The Parent Company’s corporate purpose, according to its incorporation documents, include:

• Industrial, commercial, managerial and technical office consultancy work;

• Construction (including contracting), rehabilitation, promotion, management, purchase and sale of buildings;

• Production of renewable energy (solar and photovoltaic) and the implementation, assembly, repairs and maintenance of electrical installation in general (both low and medium voltage)

The Parent Company’s current activity consists in manufacturing and selling solar trackers and providing services related to installation of the solar trackers.

The Parent Company’s year runs from 1 January to 31 December.

The Parent Company’s functional currency is the euro.

For all foreign companies in the STI Norland Group whose functional currency is not the euro, their functional currency is the local currency of the foreign jurisdiction.

The financial information presented in these consolidated financial statements are expressed in euros.

1.2. SUBSIDIARIES

Soluciones Técnicas Integrales Norland, S.L. together with its subsidiaries forms the STI Norland Group (the Group).

It is understood that a company forms part of the Group when both are connected by a control relationship, direct or indirect, similar to that set out in article 42 of the Spanish Commercial Code, or when companies are controlled by any means by one or several legal entities that act jointly or are under sole management using statutory agreements or clauses.

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The Subsidiaries included in the scope of consolidation are the following:

Entity	2021 - % participation	Head office	Location	Functional currency
STI SOLAR, SpA.	100%	Padre Mariano, 82 – office 1102	Providencial, Santiago (Chile)	Chilean peso (CLP)
STINORLAND ISRAEL, LTD.	100%	78 Rothschild Bv., 6578605	Tel-Aviv (Israel)	Israeli Shekel (ILS)
STINORLAND USA, INC.	100%	2804 Gateway Oaks Dr #100, Sacramento	California (USA)	American dollar (USD)
STINORLAND SOUTH AFRICA PTY LTD	100%	48 Main Road, Walmer, 6065	Port Elizabeth - Gqeberha (South Africa)	South African rand (ZAR)
STINORLAND BRASIL, LTDA.	80%	Quadra 1112 Sul, Alameda 11 Lote 02 a 06, Plano Diretor Sul, CEP 77024-182	Palmas, Estado do Tocantins (Brazil)	Brazilian real (BRL)
STINORLAND MEXICO, S.A. DE C.V.	99%	Calle Darwin 74, Interior 301, Col. Anzures, 11590	Miguel Hidalgo, Ciudad de México (Mexico)	Mexican peso (MXN)
STINORLAND INDIA PRIVATE LIMITED	100%	39 NGEF Lane, 2nd Floor, Suite No. 985, Indiranagar,	Bangalore, Karnataka (India)	Indian rupee (INR)
KTRSOLAR TECH, S.L.	80%	Plaza Mayor, 17 - 1º A 31621	Sarriguren, Navarre (Spain)	Euro (EUR)
STINORLAND AUSTRALIA PTY LTD	100%	14 Hastings St. McKinnon 3204	Victoria (Australia)	Australian dollar (AUD)

None of the Group companies are listed on a stock exchange or in any other market.

During the 2021 year the only dividend distribution approved was the following:

Entity	Date of approval	Amount of dividend approved	Amount in euros
STINORLAND ISRAEL, LTD.	01/07/2021	170,000 euros	170,000 euros

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The operating activities of the Group companies is the design, engineering, assembly and supply of structures and solar trackers for developing renewable energy, particularly photovoltaic energy.

No subsidiaries have been excluded from the scope of consolidation.

In 2021 the Group has incorporated a new company, STY NORLAND AUSTRALIA PTY LTD, a 100% subsidiary to manage the Group operations in Australia.

2. BASISOFPRESENTATIONOFTHECONSOLIDATEDFINANCIALSTATEMENTS

2.1. FAIRPRESENTATION

On 10 November 2021 Array Technologies, Inc, a US company, entered into a purchase agreement with the shareholders of the Parent Company pursuant to which, Array agreed to acquire all of the outstanding equity interests of the Parent Company. The closing of this agreement is dated 11 January 2022. The Board of Directors is preparing these consolidated financial statements as of and for the year ending 31 December 2021 to be used during the acquisition process and to be filed as part of the 8 K filing of Array Technologies, Inc. These Consolidated Financial Statements are prepared in accordance with accounting rules in Spain and include a separate note with a reconciliation to generally accepted accounting principles in the United States of America (US GAAP). These Consolidated Financial Statements comprise the Consolidated Balance Sheet, Consolidated Income Statement, Statement of Changes in Consolidated Net Equity, Statement of Consolidated Cash Flows and Notes (the Consolidated Financial Statements).

As mention above, these Consolidated Financial Statements have not been prepared to comply with statutory legal requirements.

The accompanying Consolidated Financial Statements have been prepared on the basis of the accounting records of the Parent Company and its subsidiaries. The Consolidated Financial Statements for the year ended 31 December 2021 have been prepared in accordance with the Spanish General Chart of Accounts approved by Royal Decree 1514/2007, the Standards for the Preparation of Consolidated Annual Accounts approved by Royal Decree 1159/2010, and its subsequent amendments, to give a true and fair view of the consolidated equity and consolidated financial position at 31 December 2021 and consolidated results of operations, changes in consolidated equity, and consolidated cash flows for the year then ended.

There are no exceptional reasons why the legal provisions for accounting matters have not been applied in order to present an accurate picture.

The end of the year for the financial statements in all the consolidated companies is 31 December 2021, and coincides with that of the Parent Company, except for the subsidiary STINORLAND INDIA PRIVATE LIMITED, whose year ends on 31 March 2022, as established in local legislation. However, the financial information used to prepare the Consolidated Financial Statements corresponds to 31 December 2021.

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2.2. ACCOUNTINGPRINCIPLES

The accounting principles and criteria applied in preparing these Consolidated Financial Statements are those summarized in Note 3 of this report. The mandatory accounting principles that have a significant effect on these Consolidated Financial Statements have been applied. Non-mandatory accounting principles have not been applied.

2.3. CRITICALISSUESREGARDINGTHEMEASUREMENTANDESTIMATIONOFUNCERTAINTIES

The information contained in these Consolidated Financial Statements is the responsibility of the Parent Company’s Board of Directors. In preparing these Consolidated Financial Statements, the Board has made judgements and estimates that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Specifically, estimates have been used relating to:

• The useful life of intangible assets and property, plant and equipment (Notes 4 and 5)

• Provisions for responsibilities (Note 16)

Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

2.4. COMPARATIVEINFORMATION

The consolidated balance sheet, consolidated income statement, statement of changes in consolidated net equity, statement of consolidated cash flows and the notes thereto for 2021 do not include comparative figures for 2020.

These Consolidated Financial Statements have been prepared solely for the purpose of meeting the requirements of US Securities and Exchange Commission (“SEC”) Rule 3-05 of Regulation S-X, following the acquisition by Array Technologies (see note 2.1). These Consolidated Financial Statements have been prepared in accordance with the Spanish General Chart of Accounts approved by Royal Decree 1514/2007, which have been applied consistently except that no comparative information has been presented in these Consolidated Financial Statements, as no comparatives are required under SEC Rule 3-05 of Regulation S-X. Nonetheless, this is a departure from accounting rules in Spain, as comparative figures are required to be presented.

2.5. AGGREGATIONOFITEMS

These Consolidated Financial Statements are presented consistently with the Spanish chart of accounts and do not contain any items that have been aggregated into one caption.

2.6. ITEMSDISCLOSEDUNDERSEVERALLINEITEMS

There are no elements of a similar nature included in different items on the balance sheet.

2.7. CHANGESTOACCOUNTINGPOLICIES

Royal Decree 1/2021 was published on 30 January 2021 amending the Spanish General Chart of Accounts. Consequently, the recognition and measurement standards 14 Revenue from sales and services and 9 Financial instruments have been amended in 2021.

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2.8. RELATIVEIMPORTANCE

When determining the information to be disclosed in these Consolidated Financial Statements, on the different items of the Consolidated Financial Statements or other matters, the Group, in accordance with the Conceptual Accounting Framework, has taken into account relative importance in relation to the 2021 Consolidated Financial Statements.

3. RECOGNITIONANDMEASUREMENTSTANDARDS

The principal standards of recording and measurement applied in preparing the attached Consolidated Financial Statements, in accordance with the General Accounting Plan, were the following:

3.1. CONSOLIDATIONMETHOD

The attached Consolidated Financial Statements have been prepared in accordance with the global integration method for all the Subsidiaries over which the Parent Company has effective control: STI SOLAR, SpA., STINORLAND ISRAEL, LTD., STINORLAND SOUTH AFRICA (PTY), LTD., STINORLAND USA, INC., STINORLAND BRASIL, LTDA., STINORLAND MÉXICO, S.A. DE C.V., STINORLAND INDIA PRIVATE LIMITED, KTRSOLAR TECH, S.L. and STINORLAND AUSTRALIA PTY LTD.

For companies consolidated by the global integration method (full consolidation), 100% of the items on the balance sheet and income statement are incorporated, recognizing, if applicable, the value of the participation of non-controlling interest in net equity and in the consolidated income statement in the corresponding proportion.

In the investment-net equity elimination in the consolidation process, the offsetting of the book values representing the Parent Company’s equity instruments with the proportional part of the net equity items of the above-mentioned subsidiaries, has been carried out on the basis of values obtained from applying the acquisition method. If the date of first consolidation is later than the acquisition date, the figures resulting from applying the global integration method have been referred to the acquisition date.

3.2. TRANSACTIONSBETWEENCONSOLIDATEDCOMPANIES

Results of internal transactions in the scope of consolidation have been eliminated, provided that their amount is relevant, being deferred until they are carried out with third parties outside the Group. If there are works carried out by the Group for its own fixed assets, the intra-group results are eliminated, arising at the rate of amortization of the affected items or when sold to third parties.

Intra-group balances and transactions, and any unrealised income and expenses (except for foreign currency transaction gains or losses) arising from intra-group transactions, are eliminated

3.3. HOMOGENISATION

Consolidation of the companies that make up the scope of consolidation has been carried out using their individual financial statements that are prepared in accordance with Royal Decree 1514/2007 for the Parent Company headquartered in Spain, and their own local legislation for foreign companies. All the necessary standardization operations have been carried out in the Group’s companies to unify the measurement criteria and structure of the consolidated annual reports with those used by the Parent Company in its financial statements.

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3.4. CONVERSIONOFFINANCIALRESULTSINCURRENCYOTHERTHANTHEEURO

Financial results in a currency other than the euro of foreign companies have been converted to euros using the exchange rate at balance sheet date. In this way the goods, rights and obligations have been converted at the exchange rate current at the close date, equity at historic exchange rate and items on the income statement at the average exchange rate for the year. The differences in conversion arising from the application of this method will be shown, where applicable, in the caption “Adjustments for change in value” in the section on equity on the consolidated balance sheet, the part that corresponds to non-controlling interest being deducted. During the year 2021 the conversion differences amounted to -2,119,973 euros.

3.5. INTANGIBLEASSETS

As a general rule, intangible assets are initially measured at cost, whether this be acquisition price or production cost. The cost of intangible assets acquired through combinations of business is its fair value on the date of acquisition.

After initial recognition, intangible assets are measured at cost, minus accumulated depreciation and, if applicable, the accumulated amount of recorded impairment corrections.

Intangible assets are assets of a defined useful life and are amortized systematically in accordance with their estimated useful life and residual value. The methods and periods of amortization applied are revised at the end of each year and adjusted prospectively, if need be.

At least annually, indicators of impairment are evaluated, in which case the recoverable amounts are estimated, to the extent that the carrying value exceeds the recoverable amounts, an impairment is recorded for the difference.

For accounting, the Group recognizes any loss that may have occurred in the recorded value of these assets due to impairment, using the heading “Impairment and result on disposal of fixed assets”. The criteria for recognizing losses due to impairment is similar to the one described in section 3.6. Property, plant and Equipment.

3.5.1. ITAPPLICATIONS

These are valued at acquisition price or production cost. The useful life of these items is estimated at 4 years, being amortized on a straight-line basis during this period.

3.5.2. CONCESSIONS

The costs incurred to obtain the concession of two parking places for the Group are amortized on a straight-line basis in the 75-year concession period. If the circumstances of non-compliance with conditions meant the rights derived from this concession are lost, the recorded value for it would be adjusted in its entirety to cancel its net book value.

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3.6. PROPERTY,PLANTANDEQUIPMENT

These are valued at acquisition price or production cost that includes, besides the amount billed after deducting any discount or rebate in the price, all the additional and directly related expenses arising up to its commissioning, such as costs of earthworks and demolition, transport, insurance, installation, assembly and the like.

In the cost of property, plant and equipment that needs a period of more than one year before it is ready for use, exploitation or sale, the Group includes the financial expenses related to specific or generic financing, directly attributable to acquisition, construction or production. In 2021 no financial expenses have been capitalized in property, plant and equipment.

The initial estimate of the actual value of the obligations assumed derived from decommissioning or retirement and other associated obligations is also included in the value of property, plant and equipment. Other obligations associated with the asset include the costs of restoration when these give rise to recording of provisions.

The Group does not have any commitments for decommissioning, retirement or restoration of its fixed assets. Therefore, under assets, no values have been booked for hedging such obligations in the future.

The Parent Company’s Board of Directors considers that the accounting value of the assets does not exceed their recoverable value.

An impairment loss in the value of an item of property, plant and equipment arises when its net book value exceeds its recoverable amount, this being understood as the higher amount between its fair value minus costs to sell and its value in use.

Expenditure during the year due to repairs and maintenance carried out by the Group will be charged to the corresponding expenditure accounts. Expansion or improvement costs that give rise to an increase in production capacity or extension of the useful life of goods are incorporated into the asset as the higher value of that asset.

The property, plant and equipment accounts in progress are debited by the amount of those expenses, with a credit to the income item that includes the works carried out by the Group for itself.

Amortization of property, plant and equipment commences from the moment the assets are available for commissioning, on a straight-line basis during their estimated useful life, with an estimated residual value of zero. The periods of estimated useful life translate into the following annual depreciation ratios:

Construction	4-5	%
Other installations	15	%
Machinery	15	%
Tools	25	%
Transport items	20	%
Furniture	15	%
Information processing equipment	25	%

3.7. LEASES

Whether to classify a lease as operating or financial depends on the circumstances of each of the contracting parties, since they can be classified differently as lessor or lessee.

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The Group classifies as a financing lease, any lease provided that its conditions infer that the risks and benefits inherent in the ownership of the asset that is the object of the contract have been substantially transferred to the lessee. The assumptions for transferring risks and benefits established in the PGC (General Accounting Plan) are assumed by the companies.

Other leases are classified as operating leases. In these ownerships of the leased good and, substantially all the risks and benefits that are devolved to the good, remains with the lessor.

When the Group acts as lessor, the leasing expenses are charged on a straight-line basis to the income statement according to the agreements and life of the contract.

3.8. FINANCIALINSTRUMENTS

3.8.1. RECOGNITIONANDCLASSIFICATIONOFFINANCIALINSTRUMENTS

Since 1 January 2021 the Group has applied the new recognition and measurement standard 9 Financial instruments in accordance with Royal Decree 1/2021 amending the Spanish General Chart of Accounts.

No significant differences in the valuation of financial instruments existing in the Group at 1 January 2021 have been identified as a result of applying the new recognition and measurement standard

9. Consequently, the Group has applied the new recognition and measurement standard retroactively. This note on valuation only includes the Group’s policies in relation to the new standard.

The Company classifies financial instruments on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the economic substance of the contractual arrangement and the definitions of a financial asset, a financial liability and an equity instrument.

The Company recognises a financial instrument when it becomes party to the contract or legal transaction, in accordance with the terms set out therein, either as the issuer or holder or acquirer thereof.

For measurement purposes, the Company classifies financial instruments into the following categories: financial assets and financial liabilities at fair value through profit or loss, showing separately those designated as such upon initial recognition from those that are held for trading and those mandatorily measured at fair value through profit or loss; financial assets and financial liabilities measured at amortised cost; financial assets measured at fair value through equity, showing separately equity instruments designated as such from other financial assets; and financial assets measured at cost. The Company classifies financial assets at amortised cost and at fair value through equity, except for equity instruments designated as such, according to the business model and the contractual cash flow characteristics. The Company classifies financial liabilities as measured at amortised cost, except those designated as at fair value through profit or loss and those held for trading.

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The Company classifies a financial asset or liability as held for trading when:

• It is originated, acquired or issued or assumed principally for the purpose of selling or repurchasing it in the near term;

• On initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of recent actions in pursuit of short-term profit-taking;

• It is a derivative financial instrument, provided that it is not a financial guarantee contract or it has not been designated as a hedging instrument or

• It is an obligation that the Company has in a short position to deliver financial assets that it has been loaned.

The Company classifies a financial asset at amortised cost, even if it is admitted to trading, if it is held within a business model whose objective is to hold the investment in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI).

The Company classifies a financial asset at fair value through equity if it is held within a business model whose objective involves collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI).

The business model is determined by key personnel of the Company and at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. The Company’s business model represents the manner in which it manages its financial assets to generate cash flows.

The Company classifies other financial liabilities as financial liabilities at amortised cost, except for financial guarantee contracts, commitments to provide a loan at a below-market interest rate or financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies.

3.8.2. OFFSETPRINCIPLES

A financial asset and a financial liability are offset only when the Company currently has the legally enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

3.8.3. FINANCIALASSETSANDFINANCIALLIABILITIESATFAIRVALUETHROUGHPROFITORLOSS

The Company recognises financial assets and financial liabilities at fair value through profit or loss initially at fair value. Transaction costs directly attributable to the acquisition or issue are recognised as an expense when incurred.

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3.8.4. FINANCIALASSETSANDFINANCIALLIABILITIESATAMORTISEDCOST

Financial assets and financial liabilities at amortised cost are initially recognised at fair value, plus or minus transaction costs, and are subsequently measured at amortised cost using the effective interest method. The effective interest rate is the discount rate that equates the carrying amount of a financial instrument to the estimated cash flows expected over the life of the instrument based on the contractual terms and for the financial assets, excluding future losses due to credit risk.

3.8.5. INTERESTANDDIVIDENDS

The Company recognises interest and dividends accrued on financial assets after acquisition as income in the income statement.

3.8.6. IMPAIRMENTOFFINANCIALASSETS

A financial asset or a group of financial assets is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset and the event or events have an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated

• Impairment of financial assets carried at amortised cost

The amount of the impairment loss of financial assets carried at amortised cost is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. For floating-rate financial assets, the effective interest rate corresponding to the measurement date under the contractual conditions is used. Nevertheless, the Company uses their market value, provided this is sufficiently reliable to be considered representative of the recoverable amount

3.8.7. DERECOGNITIONOFFINANCIALASSETSANDLIABILITIES

Financial assets are derecognized when the rights to receive related cash flows have expired o have been transferred and the Group has substantially transferred the risks and benefits derived from their ownership.

Financial liabilities are derecognized when the obligations that generated them have ended.

3.8.8. REVERSEFACTORING

The Group has contracted reverse factoring facilities with various financial institutions to manage payments to suppliers. Trade payables settled under the management of financial institutions are recognised under trade and other payables in the consolidated balance sheet until they are settled, repaid or have expired.

Payables to financial entities as a result of the transfer of trade liabilities are recognised as trade payables advanced by banks under trade and other payables in the consolidated balance sheet.

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When the Group requests a deferral of the initial payment term of trade payables, these debts are derecognised within the original maturity period and a financial liability is recognised under loans and borrowings in the consolidated balance sheet.

The Group presents the net amount of collections and payments relating to reverse factoring in the statement of cash flows, as these collections and payments have a high turnover, as established in the applicable standards

3.9. INVENTORY

Goods included in Inventory are measured at their production cost, which is determined by adding the costs directly attributable to the product to the purchase price of raw materials and other consumables. To this is also added the part that reasonably corresponds to the indirectly attributable costs of the products, to the extent that such costs correspond to the period of manufacturing, processing or construction, which may have been incurred in placing them for sale and are based on the level of utilization of the normal working capacity of the means of production.

Indirect taxes on inventory are only incorporated into the acquisition price or production cost when they are not directly recoverable from the tax authorities.

Advances to suppliers on account for future inventory supplies are measured at cost.

The measurement of obsolete, defective or slow-moving products is reduced to their potential realization value.

3.10. TRANSACTIONSINFOREIGNCURRENCY

Transactions carried out in foreign currency are recorded at the exchange rates current at the time of the transaction. During the year, the differences between the booked exchange rate and the one that is current at the time of receiving or paying are recorded as financial results in the income statement. The Parent Company has not changed the functional currency during the year, which is the euro.

Likewise, on 31 December of each year the conversion of balances receivable or payable originating in a foreign currency is made with the closing exchange rate. The resulting differences in measurement are recorded as financial results in the income statement.

3.11. INCOMETAX

The current tax expense is determined by adding the current tax expense and the deferred tax. The current tax expense is determined by applying the current tax rate to the financial profit for the year and reducing the result thus obtained by the amount of allowances and general deductions applied during the year.

Deferred tax assets and liabilities come from temporary differences defined as the amounts expected to be payable or recoverable in the future and that derive from the difference between the book value of assets and liabilities and their tax base. Those amounts are recorded by applying the tax rate at which they are expected to be recovered or settled to the temporary difference.

Deferred tax assets also arise as a result of negative tax bases pending compensation and from the credits for tax deductions generated and not applied.

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The corresponding deferred tax liability is recognized for all the temporary tax differences, unless the temporary difference is derived from the initial recognition of goodwill or initial recognition (except in a business combination) of other assets and liabilities in a transaction that, at the time it is carried out, affects neither the tax nor accounting result.

On the other hand, deferred tax assets, identified with deductible temporary differences, are only recognized in the event that it is probable that the Group will have sufficient future financial earnings against which they can be made effective and do not come from initial recognition (except in a business combination) of other assets and liabilities in a transaction that affects neither the financial nor the accounting result. The remaining deferred tax assets (tax loss carryforwards and deductions pending compensation) are only recognized in the event that it is probable that the Group will have sufficient future financial earnings against which they can be made effective.

At each accounting close, recorded deferred taxes are reviewed (both assets and liabilities) with the aim of checking that they are still recoverable, making appropriate adjustments to them, in accordance with the results of the analyses carried out.

The deferred tax expense or income corresponds to the recognition and cancellation of deferred tax liabilities and assets, as well as, where appropriate, by recognizing and allocating to the income statement, the income directly attributable to net equity that may result from accounting for those deductions and other financial benefits that have the economic nature of grants.

3.12. INCOMEANDEXPENSES

Income and expenses are allocated in accordance with the accrual criterion, regardless of the time when the monetary or financial flow derived from them occurs.

Since 1 January 2021 the Group has applied the new recognition and measurement standard 14 Revenue from sales and services in accordance with Royal Decree 1/2021 amending the Spanish General Chart of Accounts.

The effect of applying the new recognition and measurement standard 14 to 2020 revenues and its related trade receivables is not significant.

(i) Sale of goods

The Company manufactures and sells parts and components that are installable in solar panel tracking systems in energy parks. The installable parts and components are designed and manufactured exclusively for the customers; the level of customisation is not significant and they have alternative uses for the Company. Consequently, the revenue is recognised when control of these parts and components is transferred and not over time.

The Company sells the parts on F.O.B or delivery to the customer’s warehouse terms, therefore the revenue is recognised when the customer receives the products at the agreed point. The Company records these sales at the nominal amount, without considering the financial effect thereof, because this effect is not significant.

The Company grants customers a standard product warranty that is recognised in accordance with the indications of the accounting policy for provisions.

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(ii) Rendering of services

The Company performs the service of installing the parts and components that it sells to some of its customers. Installation is not complex or specialised and a high level of integration is not required, therefore the goods and installation are considered separate obligations.

Revenues from this service are recognised over time because the Company’s performance creates an asset controlled by the customers and it has no alternative use for the Company, which has an enforceable right to payment for performance completed up to the reporting date.

Each month the Company invoices the actual stage of completion of the project, measured in units installed in each period, so that at the end of each period the revenue is recognised for the service effectually carried at any time.

3.13. PROVISIONSANDCONTINGENCIES

The Consolidated Financial Statements include all provisions with respect to which it is estimated that the probability that the obligation will have to be met is greater than the converse situation. Contingent liabilities are not recognized in the consolidated Balance sheet, but information on them is given in the notes, to the extent that they are not considered remote.

Where appropriate, provisions are valued at the actual value of the best possible estimate of the amount necessary to cancel or transfer the obligation, taking into account the information available about the event and its consequences, and recording adjustments that arise from updating of those provisions as a financial expense as it accrues.

3.14. ENVIRONMENTALINFORMATION

The costs incurred, where appropriate, from systems, equipment and installations whose purpose is to minimize the environmental impact whilst carrying out the activity, and/or the protection and improvement of the environment are recorded as investments in property, plant and equipment.

The remaining expenses related to the environment, other than the above, are expensed as incurred. The calculation of potential environmental provisions that may arise, is made according to the best estimate of the provision at the time they are known, and under the assumption that insurance policies will not cover any damage caused.

3.15. CRITERIAUSEDFORRECORDINGANDVALUINGEMPLOYEEEXPENSES

Employee expenses include all salaries and mandatory or voluntary social obligations accrued at all times, recognizing obligations for extra payments, holidays or variable salaries and their associated expenses.

Except for justifiable cause, companies are obliged to compensate their employees when their services cease.

In the absence of any foreseeable need for irregular termination of employment and given that those employees who retire or voluntarily end their services, do not receive severance payments, severance payments, when they arise, are booked to expenses at the time the decision is taken to terminate the employment.

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3.16. GRANTS,DONATIONSANDBEQUESTSRECEIVED

Non-refundable capital grants are valued at the amount granted, initially being recognized as income directly attributable to net equity and attributable to the results during the period in the proportion of depreciation experienced by the assets financed by those grants, unless it is a question of non-depreciable assets, in which case they will be attributed to the income for the year in which they are sold or derecognized from the inventory.

While they have the features of repayable grants, they are booked as debts that can be converted into grants.

When grants are granted to finance specific expenses, they are booked as income in the year in which the expenses they are financing occur.

3.17. CRITERIAUSEDINTRANSACTIONSBETWEENRELATEDPARTIES

If they exist, transactions between companies in the same Group, regardless of the degree of connection, are accounted for in line with the general rules. The items that are the subject of the transactions carried out will be booked at their fair value initially. Subsequent measurement is made in accordance with the specific rules that may apply.

3.18. CLASSIFICATIONBETWEENCURRENTANDNON-CURRENTBALANCES

In the attached consolidated balance sheet, balances with a maturity of less than one year from the date of the balance sheet are classed as current, those with a maturity of more than a year are considered non-current.

4. INTANGIBLEASSETS

The detail of the items under this heading and transactions throughout the 2021 year is the following:

2021 YEAR

	Initial balance		Additions		Disposals		Transfers		Final Balance
COST
IT applications		368,388		79,792		-15,926		102,300		534,554
Other Intangible assets		530,273		0		-503,829		0		26,444
Consolidated Goodwill		185,807		0		0		0		185,807
TOTAL COST		1,084,468		79,792		-519,755		102,300		746,805
AMORTIZATIONS
IT applications		-181,632		-84,936		15,926		0		-250,642
Other Intangible assets		-92,770		-353		88,882		0		-4,241
Consolidated Goodwill		-18,581		-18,580		0		0		-37,161
TOTAL AMORTIZATIONS		-292,983		-103,869		104,808		0		-292,044
Advances paid to suppliers		62,128		66,302		0		-102,300		26,130
NET TOTAL		853,613		42,225		-414,947		0		480,891

The cost of intangible assets totally amortized is 96,713 euros at the end of the 2021 year.

The Group has not made any impairment adjustments to intangible assets.

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4.1. CONSOLIDATED GOODWILL

The balance included under this heading corresponds to net goodwill arising from the acquisition of KTRSolar Tech S.L. carried out on 31 January 2020.

Transactions under this heading of the consolidated balance sheet in the 2021 year, were as follows:

2021 YEAR

	Initial balance		Additions		Amortization		Final Balance
KTR Solar Tech, S.L.		167,226		0		-18,581		148,645
TOTAL		167,226		0		-18,581		148,645

5. PROPERTY,PLANTANDEQUIPMENT

Transactions made under this heading of the consolidated balance sheet in the years 2021, as well as the most significant information that affects this heading, were the following:

2021 YEAR

	Initial balance		Additions		Disposals		Transfers		Final Balance
COST
Land and Constructions		1,590,448		0		-252,768		0		1,337,680
Technical Installations and Machinery		950,216		754,348		-58,742		19,734		1,665,556
Other Installations, Tools and Furniture		1,982,031		258,990		-25,268		0		2,215,753
Other assets		845,841		186,917		-134,907		0		897,851
TOTAL COST		5,368,536		1,200,255		-471,685		19,734		6,116,840
DEPRECIATION
Constructions		-607,812		-57,502		97,228		0		-568,086
Technical Installations and Machinery		-255,403		-157,591		971		0		-412,023
Other Installations, Tools and Furniture		-1,799,325		-52,795		25,268		0		-1,826,852
Other assets		-466,999		-125,868		112,932		0		-479,935
TOTAL DEPRECIATION		-3,129,539		-393,756		236,399		0		-3,286,896
under construction and advances		14,821		60,444		0		-19,734		55,531
NET TOTAL		2,253,818		866,943		-235,286		0		2,885,475

The principal additions for 2021 correspond to the elements acquired to cover the needs associated with the Group’s growth.

There has been no circumstance that has meant a significant impact affecting the current year or future years and that may affect cost estimates for decommissioning, retirement or restoration, useful life and depreciation methods.

The grants received for financing various investment projects relating to property, plant and equipment, are explained in Note 20.

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The cost of property, plant and equipment completely depreciated in the 2021 year is detailed as follows:

Item	2021
Machinery		59,408
Tools		42,396
Other installations		1,595,246
Furniture		62,330
Information processing equipment		87,828
Transport items		179,793
TOTALS		2,027,001

Group policy is to take out insurance policies to cover potential risks that the different elements of property, plant and equipment are subject to. The Parent’s Company Board of Directors reviews on an annual basis, or when an event makes it necessary, the coverage and risks covered. Amounts that must be reasonably covered for the following year are also agreed.

The Group has not made any impairment adjustments to property, plant and equipment.

The details of property, plant and equipment items located abroad at 31 December is as follows:

	Balance at 31/12/2021
COST
Technical Installations and Machinery		1,022,481
Other Installations, Tools and Furniture		387,004
Other assets		365,717
TOTAL COST		1,775,202
DEPRECIATION
Technical Installations and Machinery		-149,445
Other Installations, Tools and Furniture		-49,045
Other assets		-92,126
TOTAL AMORTIZATIONS		-290,616
NET TOTAL		1,484,586

6. LEASESANDOTHEROPERATIONSOFASIMILARNATURE

6.1. OPERATINGLEASES

The Group has been granted the use of various assets under operating leases, the most significant information is the following:

	2021 year
Lease payments recognized as expenses for the period		385,012

The minimum payments amount for operating leases mainly relates to the leasing of both offices and industrial premises where the Group companies carry out their daily activity and the leasing of furniture, equipment and vehicles to cover the needs of different projects. The Group also makes payments to lease apartments in other countries such as Mexico, India, South Africa and China, due to the different projects carried out by the Group in those countries.

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Details of the minimum payments for leasing, broken down by time period are as follows:

	2021
Up to a year		452,380
Between one and five years		731,017
More than five years		0
TOTAL		1,183,397

7. FINANCIALASSETS

7.1. CATEGORIESOFFINANCIALASSETS

Information of long-term financial investments as shown in the consolidated balance sheet is not itemized as it is not material, as it relates mainly to security deposits and amounts to 29,479 euros for 2021.

Information of short-term financial assets on the consolidated balance sheet, classified by category, is shown below:

YEAR 2021

	CLASSES
CATEGORY	Security deposits		Term deposits		Short-term credits, derivatives and others		TOTAL
Financial assets at amortised cost		107,305		0		95,071,074		95,178,379
- Other financial assets		107,305		0		95,071,074		95,178,379
Cash and cash equivalents		0		25,192,953		6,728,419		31,921,372
TOTAL		107,305		25,192,953		101,799,493		127,099,751

The breakdown of the section “Other financial assets” is as follows:

Item	2021
Trade receivables for sales and services		95,062,741
Other debtors		8,333
TOTAL		95,071,074

7.2. RECLASSIFICATIONS

There were no reclassifications among the different categories of financial assets.

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7.3. CLASSIFICATIONBYMATURITIES

Classification by maturity of the Group’s financial assets of the amounts that mature in each of the years following the end of the year until their final maturity are shown in the following table:

2021 YEAR

Maturity in years
	2022		2023		2024		2025		2026 and beyond		TOTAL
Financial investments
Others		107,305		808		0		0		28,671		136,784
Commercial debtors and other accounts receivable
Net Trade receivables for sales and services		95,062,741		0		0		0		0		95,062,741
Other debtors		8,333		0		0		0		0		8,333
Cash and cash equivalents
Treasury		31,921,372		0		0		0		0		31,921,372
TOTAL		127,099,751		808		0		0		28,671		127,129,230

7.4. ASSETSASSIGNEDANDACCEPTEDASCOLLATERAL

In 2021 the Group does not have, nor has had financial assets delivered as collateral.

In 2021 the Group does not have third-party assets as collateral although it does have bank guarantees in its favour from suppliers in the amount of 1.289.539,59 euros that expire in the years 2022, 2023, 2024 and 2025.

7.5. IMPAIRMENTOFVALUEARISINGFROMCREDITRISK

The following is the analysis of transactions of corrective accounts by asset class, representing impairment losses caused by credit risk in the years 2021:

Asset class	Credits, derivatives and others (1)
	Short-term
Impairment loss at the end of the 2020 year		687
(+) Measurement adjustment for impairment		0
(-) Impairment reversal		-687
(-) Disposals and reductions		0
Impairment loss at the end of the 2021 year		0

(1) Includes impairment adjustments arising from credit risk in “Commercial debtors and other receivables”    

During the 2021 year the Group has considered the impairment registered in 2019 as definitive. Consequently, impairment has been applied to the corresponding account balance.

7.6. NON-PAYMENTORNON-COMPLIANCEWITHCONTRACTUALCONDITIONS

During the year there was no contractual non-compliance which would have granted the lender the right to claim early repayment of its loans.

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8. FINANCIALLIABILITIES

8.1. CATEGORIESOFFINANCIALLIABILITIES

Long-term financial liabilities on the consolidated balance sheet, classified by category, are shown below:

YEAR 2021

	CLASSES
	Debts with financial institutions		Long-term derivatives and others		TOTAL
Financial liabilities at amortised cost		10,000,000		108,995		10,108,995
TOTAL		10,000,000		108,995		10,108,995

Under the heading “Debts with financial institutions” it is included the long term loans obtained during 2021 (see 8.3).

Included under the heading “Long-term derivatives and others” and amounting 108,995 euros is an advance payment received by the Parent Company during the 2019 year relating to a loan granted by the Centre for Industrial Technology Development, the payment of which was earmarked for the year 2020, but which has been delayed until 2022, once the applicable documentation had been provided. Total loan granted amounts to euros 332 thousand. This loan includes a non-repayable allowance (euros 33 thousand), and its maturity extends to 2027.

Information on the short-term financial liabilities on the consolidated balance sheet, classified by category, is shown below:

YEAR 2021

	CLASSES
	Debts with financial institutions		Short-term derivatives and others		TOTAL
Debts and payables		30,792,418		82,103,763		112,896,181
TOTAL		30,792,418		82,103,763		112,896,181

The breakdown of the “Short-term derivatives and others” section is as follows:

Item	2021
Suppliers		60,968,236
Creditors		2,330,209
Staff		1,083,913
Customer advances		17,721,405
TOTAL		82,103,763

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8.2. CLASSIFICATIONBYMATURITIES

Classification by maturity of the Group’s financial liabilities of the amounts that mature in each of the years following the end of the year until their final maturity are shown in the following table:

2021 YEAR

Maturity in years
Debts	2022		2023		2024		2025		2026 and beyond		TOTAL
Debts with financial institutions		30,792,418		5,000,000		5,000,000		0		0		40,792,418
Other financial liabilities		0		9,506		19,012		19,012		61,465		108,995
Commercial creditors and other accounts receivable
Suppliers		60,968,236		0		0		0		0		60,968,236
Creditors		2,330,209		0		0		0		0		2,330,209
Staff		1,083,913		0		0		0		0		1,083,913
Customer advances		17,721,405		0		0		0		0		17,721,405
TOTAL		112,896,181		5,009,506		5,019,012		19,012		61,465		123,005,176

8.3. OTHERINFORMATION

Other significant facts that affect financial liabilities are the following:

• Insurance: the Group has contracted, and paid for the premiums at maturity, current civil liability insurance that reasonably covers the risks inherent in its activity, as well as at least a significant part of the net book value or, where appropriate, inventory and non-current assets.

• At the date of preparing these Consolidated Financial Statements no significant disputes that could affect them are known. The credit policy and lines of credit limits are as follows:

Financial entities 2021	Limit granted		Arranged		Available
Total of lines of credit and guarantees		98,839,745		58,942,886		39,896,859
Total lines of confirming		23,900,000		6,986,551		16,913,449
Total multiproduct lines		35,539,008		22,792,329		12,746,679
TOTAL RISK LINES		158,278,753		88,721,766		69,556,987

During the 2021 year the Parent Company received seven loans from financial institutions for a total amount of 15,000,000 euros and 6,500,000 USD (5,732,428 euros). All these loans in euros were agreed with a maturity of three years with annual amortization. The ones in USD were agreed with a maturity of one year, so they all expire during the 2022 year.

During the year there has been a repayment of the principal of loans granted in previous years for the amount of 13,831,992 euros.

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9. INFORMATIONONTHENATUREANDLEVELOFRISKFROMFINANCIALINSTRUMENTS

9.1. QUALITATIVEINFORMATION

a MARKETRISK

During 2021 the Group has been operating in the international environment (EU, Chile, Israel, South Africa, Brazil, Mexico, the United States, Japan, Senegal and Egypt) and as such is exposed to exchange rate risk for currency transactions. To minimize this risk, the Group enters into exchange rate insurance contracts to hedge exchange rates when it is considered that these will perform unfavourably.

b CREDITRISK

The Group has significant concentrations of credit risk, however, it has policies and procedures to ensure that the products are sold to customers with a satisfactory credit history. In addition it manages the limits on individualized outstanding amounts for each debtor, on the basis of prior knowledge of each one and/or financial reports from third parties, supported by an integrated information management system. The Group also enters into credit insurance contracts to cover risks that may arise.

c LIQUIDITYRISK

The Group carries out prudent liquidity risk management, based on maintaining adequate cash, and especially on the availability of financing through a sufficient amount of dedicated credit facilities and sufficient capacity to settle market positions. The Group’s objective is to maintain flexibility in financing through the availability of lines of credit if they are needed.

9.2. QUANTITATIVEINFORMATION

Given the characteristics and specifications of the Group’s product and sector, the future quantification of credit risk will depend on potential failed customer transactions and the percentage that may not be insured. The Group expects that in the conditions described the credit risk is less than 1% of ordinary sales to customers who are not group companies or associates.

Commercial credit risk is not associated with any other financial instrument that shares the same characteristics.

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10. EQUITY

10.1. SHARECAPITAL

At the end of the 2021 year, the Parent Company’s share capital is made up of 2,750 company shares of 100 euros each in nominal value, fully subscribed and paid up.

All the shares that make up the share capital have the same rights, there being no statutory restrictions to their transferability, nor are they admitted to trading.

The Group’s shareholders at 31 December 2021, were as follows:

	Number of shares		% participation
Amixa Capital, S.L.		1,609		58.51	%
Aurica Trackers, S.L.		1,141		41.49	%

10.2. RESERVES

Reserves at the end of the 2021 year are as follows:

Name	2021
Legal reserve		55,000
Voluntary reserves		12,864,789
Amortized capital reserves		225,000
Reserves in consolidated companies		14,176,251
Other Partner Contributions		1,616,496
TOTAL RESERVES		28,937,536

10.2.1. LEGALRESERVE

The Legal Reserve, which amounted to the 55,000 euros at the end of 2021 has been allocated in compliance with article 274 of the Consolidated Text of the Commercial Companies Law which establishes that, in any event, a figure equal to 10% of the annual profits should be allocated for this until it reaches at least 20% of the share capital. This reserve, while it does not exceed the indicated limit, may only be allocated to compensate for losses in the event that there are no other reserves available for this purpose.

At the end of the 2021 year the Legal Reserve is fully allocated.

10.2.2. VOLUNTARYRESERVES

Voluntary reserves are freely available and may be distributed if the value of net equity is not or does not become less than the share capital as a result of the distribution. If there are losses from previous years that made the Group’s net equity lower than its share capital, these losses must be offset prior to its distribution.

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The Voluntary Reserve is freely available and as of 31 December 2021 amounts to 12,864,789, euros.

10.2.3. AMORTIZEDCAPITALRESERVES

In January 2018, the General Shareholders’ Meeting of the Parent Company agreed to allocate an unavailable reserve of 225,000 euros in compliance with the provisions of article 332 of the Capital Companies Act for the cases of acquisition of treasury shares.

10.2.4. RESERVESINCONSOLIDATEDCOMPANIES

This relates to the variation in Reserves of Consolidated Companies fully consolidated from the date of their incorporation into the Group, in accordance with the distribution shown below:

Entity	2021
STI SOLAR, SpA.		241,909
STINORLAND ISRAEL, LTD.		-40,702
STINORLAND USA, INC.		575,364
STINORLAND SOUTH AFRICA (PTY), LTD.		315,541
STINORLAND BRASIL, LTDA.		11,871,185
STINORLAND MEXICO, S.A. DE C.V.		537,941
STINORLAND INDIA PVT LTD		-66,091
KTRSOLAR TECH, S.L.		741,104
TOTAL RESERVES IN CONSOLIDATED COMPANIES		14,176,251

10.3. INTERIMDIVIDEND

In its meeting of 23 December 2020, the Parent Company’s Board of Directors approved the payment of an interim dividend for a total amount of 8,000,000 euros charged to the profit for the year 2020.

This amount to be distributed did not exceed the results obtained since the last year by the Parent Company, deducting the estimate for Corporation Tax to be paid on those results, in accordance with the provisions of article 277 of the Consolidated Text of the Capital Companies Law.

The forecast accounting statement prepared in accordance with the legal requirements that reveals the existence of sufficient liquidity for the distribution of the above-mentioned dividend is shown below:

	Thousands of euros
Forecast of distributable profits for 2020:
Projected results net of tax up to 31/12/2020		18,500
Estimate of distributable profits for 2020:		18,500
Interim dividend distributed:		(8,000	)
Treasury forecast for the period between 23/12/2020 and 23/12/2021:
Treasury balances at 23 December 2020		21,886
Projected receivables		82,500
Projected payments, including the dividend on account		(87,500	)
Projected treasury balances at 23 December 2021		16,886

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10.4. DISTRIBUTIONOFTHERESULTOFTHEPARENTCOMPANY

The Company’s Board of Directors will propose the approval of distribution of the 2021 results to the General Shareholders’ Meeting in the following way:

2021 YEAR
Basis of distribution	Amount
Income statement balance		4,088,400
Total
Distribution	Amount
To Voluntary Reserves		4,088,400
Total

10.5. NON-CONTROLLINGINTEREST

A detailed of the non-controlling interest and its movement is as follows:

Company	December 2020		Results		Additions		Dividends		Conversion Differences		December 2021
Brasil		2,626,506		4,857,793		0		0		354,771		7,839,070
México		4,881		-185		0		0		-137		4,559
KTRSolar Tech		318,288		318,760		0		0		0		637,048
		2.949.675		5,176,368		0		0		354,634		8,480,677

11. ADJUSTMENTSFORCHANGEINVALUE

The breakdown under the heading “Adjustment for change in value” of net equity at the close of the 2021 year is -2,119,973 euros and is derived from the Parent Company’s part of the subsidiaries’ adaptation of their financial statements to euros, the functional currency of the Parent Company.

12. INVENTORYANDADVANCESTOSUPPLIERS

At 31 December 2021 inventory is made up of the following:

Description	2021
Work in progress		42,743,086
Advances to suppliers		11,668,859
TOTAL		54,411,945

The Group has taken out insurance policies that reasonably guarantee that the net book value of the inventory can be recovered.

Measurement adjustments to value impairment have not been recorded during either the 2021 year.

During the 2021 year the Group has not operated with emission allowances.

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13. FOREIGNCURRENCY

The overall amount in euros of the assets and liabilities denominated in foreign currency, including a breakdown of the most significant assets and liabilities classified by currency, is set out in the tables below:

	2021
Assets and liabilities denominated in foreign currency	In euros
	USD		BRL		MXN		ZAR		Other currencies
A) NON-CURRENT ASSETS		0		28,431		0		0		0
5. Long-term financial investments		0		28,431		0		0		0
B) CURRENT ASSETS		13,681,340		74,591,592		1,155,090		7,625,686		95,212
3. Commercial debtors and other accounts receivable		11,278,309		49,182,646		1,114,678		7,557,206		15,099
5. Short-term financial investments		0		1,664		0		2,820		3,109
7. Cash and cash equivalents		2,403,031		25,407,282		40,412		65,660		77,004
C) CURRENT LIABILITIES		8,322,746		39,320,927		0		3,278,097		14,244
5. Commercial creditors and other accounts payable		8,322,746		39,320,927		0		3,278,097		14,244

Due to them having little relevance, the following are included in “Other currencies”: ILS (Israeli shekel), CLP (Chilean peso), CNY (Chinese yuan), INR (Indian rupee), AUD (Australian dollar) and JPY (Japanese yen).

The amounts corresponding to the most significant sales, purchases and services received and provided in foreign currency are the following:

	2021 year
Transactions in foreign currency (in euros)			Classification by currency
	Total		USD		BRL		Other currencies
Sales and other income		180,346,417		38,582,294		133,243,461		8,520,662
Purchases and other expenses		142,402,261		34,026,139		103,679,801		4,696,321

The amount of the differences in exchange recognized in the result by classes of financial instruments is shown in the following table:

	2021 year
Item	Settled		Pending
CURRENT ASSETS
3. Trade Receivables for sales and services		897,581		284,423
5. Other financial assets		17,456		0
7. Cash and cash equivalents		-451,880		144,021
CURRENT LIABILITIES
3. Short-term debt		8,013		-35,089
5. Commercial creditors and other accounts payable		-422,567		12,122
TOTAL		48,603		405,477
		454,080

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The amount of the differences in conversion into net equity of the Parent Company recognized in the result is shown in the following table:

	2021
BALANCE AT THE BEGINNING OF THE YEAR		-3,836,335
Variation due to applying the exchange rate		390,963
Variation due to intra-group dividends distributed in 2020		1,325,399
BALANCE AT THE END OF THE YEAR		-2,119,973

14. TAXSITUATION

14.1. INCOMETAX

The Group companies do not benefit from the consolidated tax regime.

Reconciliation of the result with the taxable base of Corporation Tax in the 2021 year is the following:

	2021
	Income statement		Income and expenses attributable to net equity
Balance of annual income and expenses		28,772,636		384,367
Income Tax		9,412,076		-2,565
Permanent differences
of individual companies		177,689
of consolidation adjustments		161,500		-390,963
Temporary differences
of individual companies
•    Increases		1,676,405		-23,751
•    Reductions		-981,494		32.912
of consolidation adjustments
•    Increases				0
•    Reductions		-59,595		0
Taxable base (tax result)		39,159,217		0

The breakdown of expense/(income) by income tax is the following:

YEAR 2021

			2 Variation of deferred tax
	1 Current tax		a) of assets				b) of liabilities		3 TOTAL (1+2)
			Temporary Differences		Tax credit for industrial profit (-)	Other credits	Temporary Differences
Tax on profit and loss, of which:		9,219,363		-64,423				257,136		9,412,076
-   To continuing operations		9,219,363		-64,423				257,136		9,412,076
-   To discontinued operations
Tax on net equity, of which:								-2,565		-2,565
For grants, donations and bequests received								-2,565		-2,565

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The relationship between the tax expense and accounting profit for the year is as follows:

	2021
Results before tax		38,184,712
Tax at applicable rates		12,562,760
Permanent differences		114,380
Tax Benefits		-4,307,870
DTA not recognized		845,000
Other		197,742
Total Tax expense		9,412,012

The expense of Corporation Tax in the consolidated income statement is broken down into:

	2021
Current tax expense		9,219,363
Deferred tax expense		192,713
Total		9,412,076

The deferred tax expense has been generated by the temporary differences caused by the difference in accounting-tax criteria. In 2021, it mainly comes from the South African subsidiary.

The balances of deferred tax assets and liabilities are detailed in Note 14.3.

The Group submits Corporation Tax statements in the different jurisdictions where it operates. Here, Brazil is the most significant jurisdiction outside Spain. During the 2021 year, in its Brazilian subsidiary, the Group submitted a corporation tax expense of 7,209,997 euros and has an account payable for current tax at 31 December 2021 of 4,144,274 euros.

14.2. BALANCESWITHTAXAUTHORITIES

The detail of the balances with tax authorities on the consolidated balance sheet at 31 December 2021 and 2020, in euros, is as follows:

	2021
Item	Debtor		Creditor
VAT		6,111,174		20,380
Withholding tax		0		144,915
Other items		339,092		359,303
Social Security Organizations		363		334,659
Corporate tax		1,113,708		5,372,841
TOTAL		7,564,337		6,232,098

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14.3. DEFERREDTAXASSETSANDLIABILITIES

Deferred tax assets and liabilities at the end of the 2021 year are as follows:

	2021 year
Item	Debtor		Creditor
Temporary difference – Tax effect of intra-group inventories at year end		0		0
Temporary difference – R&D+i projects financed		100,004		0
Temporary difference – Accelerated amortization/depreciation		0		10,856
Temporary difference – Grants		0		0
Temporary difference – CDTI (Centre for Industrial Technology Development) loan		0		2,061
Temporary difference – Prepayments		0		68,282
Temporary difference – Income received in advance		71,396		0
Temporary difference – Work in progress		0		136,886
Temporary difference – Debtors retention		0		56,814
TOTAL		171,400		274,899

In the 2021 year the Group recorded deferred tax assets related to deductions for R&D+i projects financed pending application, as well as the effect of the sale of merchandise between Group companies.

Similarly, in the same years the Group recorded a deferred tax liability corresponding to the temporary differences originating from the difference in accounting-tax criteria in recording amortizations, work in progress, prepayments, debtors retentions, grants pending to be allocated to income (Note 20) and the loan received from the CDTI.

14.4. OTHERINFORMATION

According to current legal provisions, settling tax bills cannot be considered final until they have been inspected by the tax authorities or the 4-year statute of limitations has passed. At year end, Group companies keep all years within the statute of limitations period of the last four years open for inspection (or, if applicable, all years since their incorporation). The Parent Company’s Board of Directors considers that any additional tax liability that could arise as a consequence of an inspection would not have a significant effect on the Consolidated Financial Statements.

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15. INCOMEANDEXPENSES

The breakdown of the consolidated income statement attached is as follows:

Breakdown of the income statement	2021 year
1 Net turnover		224,461,953
2 Changes in inventories of finished goods and work in progress		29,104,396
3 Supplies		-190,834,077
a) Purchases, net of refunds and any discount of which:		-172,440,855
- national		-30,785,674
- intra-community (within European Union) acquisitions		-1,408,253
- imports		-140,246,928
b) Work carried out by other companies		-18,393,222
4 Other operating income		57,726
5 Staff expenses:		-12,484,287
a) Wages, salaries and related items		-9,748,076
b) Social charges		-2,736,211
6. Other operating costs:		-10,668,390
a) External services		-9,638,070
b) Taxes		-406,868
c) Other operating costs:		-623,452
7 Other results		132,889

16. PROVISIONSANDCONTINGENCIES

The Long-term Provisions heading has had the following transactions:

YEAR 2021

	Initial balance		Addition		Reversal		Final Balance
Provisions for guarantees		3,095,193		3,977,282		-3,095,193		3,977,282
Total Long-term provisions		3,095,193		3,977,282		-3,095,193		3,977,282

Long-term provisions relate fully to the provision of guarantees calculated on the basis of sales with outstanding guarantees according to the historical data on observed repairs.

During the 2021 year the Group has recorded expenses related to guarantees granted to customers directly in the income statement according to their nature for a total amount of 71,625 euros. The Group keeps a record to manage expenses generated by guarantees provided.

At the date of preparing these financial statements no significant disputes that could affect them are known.

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17. ENVIRONMENTALINFORMATION

Given the Group’s business activity, it has no responsibilities, expenses, assets nor provisions and contingencies of an environmental nature that could be significant in relation to equity, financial situation and earnings thereof. For this reason, this consolidated report does not include breakdowns relating to information on environmental matters.

The Parent Company’s Board of Directors states that in the Group’s accounting for these Consolidated Financial Statements there is no item that should be included in the document other than the environmental information pursuant to the indication of the third part of the General Accounting Plan (Royal Decree 1514/2007 of 16 November).

18. SUBSEQUENTEVENTS

On 10 November 2021 Array Technologies, Inc, a US public company, entered into a purchase agreement with the shareholders of the Parent Company pursuant to which, Array agreed to acquire all of the outstanding equity interests of the Parent Company. The acquisition was subject to the receipt of required regulatory approvals. At 11 January 2022 all regulatory approvals have been granted and Array Technologies acquired 100% of the shares of the Group. On the same date and prior to this acquisition, Soluciones Técnicas Integrales Norland, S.L. acquired non controlling interest of STI Norland Brazil, LTDA (20,01%) and KTRSolar (20%).

There has been no other relevant event after the close of the year that may significantly affect the information contained in these financial statements and that are not reflected therein.

19. TRANSACTIONSWITHRELATEDPARTIES

19.1. INFORMATIONRELATINGTOTHE BOARDOF DIRECTORSANDSENIORMANAGEMENT

Members of the Parent Company’s Board of Directors earned remuneration relating to carrying out their functions of 149 thousand euros in 2021.

In 2021, members of the Board of Directors of the Parent Company and senior management of the Group earned 738, 611 and 629 thousand euros respectively, as salaries. These are set out in the section “Wages and Salaries” in the Consolidated Income Statement.

There are no advance payments or credits granted to members of the Board of Directors and nor are there any obligations for pensions or life insurance matters.

During the 2021 the Parent Company paid premiums for civil liability insurance of directors and executives for damage caused in the exercise of functions for net amounts of 3.5 thousand euros in 2021.

In compliance with article 229 of Royal Legislative Decree 1/2010 of 2 July, which proves the Consolidated Text of the Capital Companies Law, at 31 December 2021, no members of the Board of Directors of the Parent Company or any persons related to it have declared any direct or indirect conflict of interest that they may have had with the Group’s interest.

Members of the Board of Directors have not, in that year, carried out on their own, or others’ behalf, any similar or complementary activity as that which constitutes the corporate purpose of the Group.

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This statement does not include, nor considers participations or activities that they may exercise in “companies associated” with this one, as it is considered that these do not affect the provisions of those articles as they are known by all partners and by the Board of Directors of the Parent Company.

19.2. PARENT COMPANYTRANSACTIONSANDBALANCESWITHOTHERRELATEDPARTIES

The credit balance of Amixa Capital, S.L. is 36,300 euros at 31 December 2021.

The volume of operations for Amixa Capital S.L.’s provision of services was 92,420 euros during 2021.

The volume of operations with the entity Enerta, S.L., related to the General Manager of Brazilian affiliate, has provided services to the Group amounting 87,963 euros during 2021.

20. GRANTS,DONATIONSANDBEQUESTS

The following table shows a breakdown of the amounts and features of grants, gifts and legacies received that appear on the consolidated balance sheet, as well as those apportioned on the consolidated income statement:

Grants, donations and bequests	2021
That appear on the net equity in the consolidated balance sheet (net of tax)		22,401
Allocated on the consolidated income statement (1)		90,638

⁽¹⁾ Including the operating grants incorporated in the result for the year

The analysis of transactions under this heading in the 2021 and 2020 years is as follows:

Grants, donations and bequests on the balance sheet	2021
BALANCE AT THE START OF THE YEAR		28,997
(+) Grants received during the year		23,751
(+) Tax effect on grants received during the year		-6,650
(-) Grants transferred to income during the year		-32,912
(-) Tax effect on Grants transferred to income during the year		9,215
BALANCE AT THE END OF THE YEAR		22,401

In the 2021 year the Australian subsidiary received a non-repayable grant to cover part of the expenses related to commercial events. Moreover, the Parent Company transferred the part corresponding to capital grants received in 2012 discounted for tax at 28% to earnings for the year.

In the 2012 year the Parent Company received two non-repayable grants: one from the Ministry of the Economy and Finance, for 160,866 euros, the result of applying the 18% percentage to the approved investment of 893,698 euros. Additionally, it received 151,930 euros from the Department of Employment, Companies and Innovation of Extremadura, the result of applying 17% to the approved investment of 893,698 euros.

The Parent Company is complying with the legal requirements demanded to obtain and maintain these grants.

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21. OTHERINFORMATION

21.1. STAFF

The average number of employees during the year and the number of employees at the end of the year of the Group companies is as follows:

Average number of employees during the course of the year by categories and gender	2021
	F		M
Senior management		1		17
Technicians and administrators		40		100
Commercial, sales people and similar		6		9
Unskilled workers		13		225
Total average employment		60		351

Breakdown of employees in the Group at the end of the year, by category and gender	2021
	F		M
Senior management		1		16
Technicians and administrators		48		122
Commercial, sales people and similar		4		10
Unskilled workers		24		323
Total staff at the end of the year		77		471

At 31 December 2021 the Group employs three people with a disability above 33%.

21.2. AUDITINGFEES

The fees for provision of services by the company KPMG Auditores, S.L., for auditing the Group’s annual accounts for the year ended 31 December 2021, regardless of when they were invoiced, amounted to 60 thousand euros for auditing services.

In addition, other entities affiliated to KPMG International invoiced the Group during the year ended

31 December 2021 fees for auditing services related to the audit of the 2021 annual accounts in the amount of 5 thousand euros, and other tax services for an amount of 6 thousand euros.

During 2021 KPMG Auditores, S.L. has provided services to the Group related to audit services and audit related services amounting to 264 thousand euros corresponding to audits and reviews of financial statements ended in 2020 and 2021 and other works related to the acquisition process mentioned in note 2. Other entities affiliated to KPMG International invoiced the Group 28 thousand euros for the same concepts.

22. INFORMATIONBYSEGMENT

All the Group companies are involved in the same sector of activity which means that all assets and liabilities refer to that sector, as do the amounts in the consolidated income statement.

The breakdown of Group turnover by activity is shown in the following table:

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Market	2021
Internal:		20	%
External:
-EU.		0	%
-Rest		80	%
Total		100	%

23. RECONCILIATIONFROM SPANISH GENERAL CHARTOF ACCOUNTS (“SPANISH GAAP”)TO U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (“U.S. GAAP”)

Accounting Principles

The Consolidated Financial Statements of STI Norland S.L. have been prepared in accordance with Spanish GAAP which differs from U.S. GAAP in certain respects. The following is a summary of the adjustments to results for the year 2021.

Adjustments to the Results for the year included in the Consolidated Income Statement for the year ending 31 December 2021:

	Notes			Euros
Result for the year in conformity with Spanish GAAP					28,772,636
Adjustments on account of:
Historical goodwill amortization		(a	)		18,581
Total impact of all adjustments, net of tax					18,581
Results for the year in conformity with U.S. GAAP					28,791,217

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Adjustments to the Balance sheet as of 31 December 2021 reconciliation:

			Euros
Financial Statement Line	Spanish GAAP Balance		Adjustment		Notes			US GAAP
A) NON-CURRENT ASSETS		3,567,245		739,483					4,306,728
I. Intangible Assets		480,891		739,483					1,220,374
1. Consolidated Goodwill		148,645		-148,645		(a	)		0
2. Other Intangible assets		332,246		888,128		(b	)		1,220,374
II. Property. plant and equipment		2,885,475							2,885,475
V. Long-term financial investments		29,479							29,479
VI. Deferred tax assets		171,400							171,400
B) CURRENT ASSETS		189,450,837							189,450,837
II. Inventory		54,411,945		-11,668,859		(d	)		42,743,086
III. Commercial debtors and other accounts receivable		102,724,181		11,668,859		(d	)		114,393,040
V. Short-term financial investments		107,305							107,305
VI. Short-term accruals		286,034							286,034
VII. Cash and cash equivalents		31,921,372							31,921,372
TOTAL ASSETS		193,018,082		739,483					193,757,565
NET EQUITY AND LIABILITIES
A) NET EQUITY		59,191,908		-171,046					59,020,862
A-1) Equity		52,808,803		-148,645					52,660,157
I. Capital		275,000							275,000
III. Reserves		28,937,535		-167,226					28,770,309
VI. Annual result attributed to parent company		23,596,268		18,581					23,614,849
1. Consolidated profit and loss		28,772,636		18,581		(a	)		28,791,217
2. (Profit and loss external partners)		-5,176,368							-5,176,368
VII. (Interim dividend)		0							0
A-2) Adjustments for change in value		-2,119,973							-2,119,973
1. Conversion difference
A-3) Subsidies. gifts and legacies		22,401		-22,401		(c	)		0
A-4) External partners		8,480,677							8,480,677
B) NON-CURRENT LIABILITIES		14,361,176		546,135					14,907,311
I. Long-term provisions		3,977,282							3,977,282
II. Long-term debt		10,108,995		523,734					10,632,729
2. Debts with credit institutions		10,000,000							10,000,000
4. Other financial liabilities		108,995		523,734		(b	)		632,729
III. Subsidies. gifts. and legacies		0		22,401		(c	)		22,401
IV. Deferred tax liabilities		274,899							274,899
C) CURRENT LIABILITIES		119,464,998		364,394					119,829,392
I. Short-term provisions		118,449							118,449
III. Short-term debt		30,792,418		364,394					31,156,812
2. Debts with credit institutions		30,792,418							30,792,418
4. Other financial liabilities		0		364,394		(b	)		364,394
V. Commercial creditors and other accounts payable		88,335,862							88,335,862
VI. Short-term accruals		218,269							218,269
TOTAL NET EQUITY AND LIABILITIES		193.018.082		739.483					193.757.565

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Adjustments to the Cash Flows for the year included in the Consolidated Cash flow statement for the year ending 31 December 2021:

There are no reconciling items in the statement of consolidated cash flows.

a. Historical goodwill and related amortization

Under ASC 805 Business Combinations, when accounting for a transfer of assets or exchange of shares between entities under common control, the receiving entity recognizes the assets and liabilities transferred at the historical cost of the parent with no step-up in basis or recognition of goodwill. Under Spanish GAAP as applied by STI, such transfers are recorded at fair value with any difference in the net assets acquired recognized as goodwill. In accordance with ASC 805 Business Combinations, the historical goodwill recognized by STI has been reversed.

Under Spanish GAAP, goodwill is subject to amortization on a straight-line basis over 10 years. In accordance with US GAAP, goodwill is not amortized; therefore, the goodwill amortization recognized by STI has been reversed.

b. Leases

In accordance with ASC 842 Leases, which has been adopted as if effective on 1 January 2020 the value of the lease liability and right of use asset related to STI’s operating leases, have been presented on the balance sheet. The current and non-current lease liability recognised as at 31 December 2021 was Euros 364,394 and Euros 523,734 respectively. The right of use asset recognised as at 31 December 2021 was Euros 888,128. Under Spanish GAAP, operating leases are accounted as expenses as incurred and the right of use asset and right of use liability are not shown in the consolidated balance sheet.

c. Grants

Under Spanish GAAP, subsidies are initially recognized in equity, net of tax. The subsidies are recycled to the income statement when the expenses which are being subsidized are recognized. In accordance with US GAAP, the equity balance has been reclassified as a liability on the consolidated balance sheet.

d. Alignment of Presentation - Spanish GAAP to U.S. GAAP

Under Spanish GAAP prepayment to suppliers are recognized in Inventories in the Consolidated Balance Sheet. In accordance with U.S. GAAP, the prepayments to suppliers were reclassified to Commercial debtors and other accounts receivable. The adjustment has no net impact on profit for the period or current assets.

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SIGNATURES CERTIFICATE

The Parent Company’s Board of Directors has prepared, at its meeting on 17 March 2022, the Consolidated Financial Statements (made up of the Consolidated Balance Sheet, the Consolidated Income Statement, Statement of Changes in Consolidated Net Equity, Statement of Consolidated Cash Flows and Notes) of the STI Norland Group, whose Parent Company is SOLUCIONES TÉCNICAS INTEGRALES NORLAND, S.L., for the Group year between 1 January 2021 and 31 December 2021 and has drafted (including this certificate) a total of 41 sheets consecutively numbered from 1 to 41, inclusive, signed, as evidence of agreement, by the president of the Board of Directors, Mr. James MacMillan Fusaro by virtue of the authorization granted for this purpose in that meeting and by Mr. Javier Marti-Fluxa, Secretary non-Board member.

/s/ Mr. James MacMillan Fusaro

Mr. James MacMillan Fusaro

President

/s/ Mr. Javier Martí-Fluxá Elías de Tejada

Mr. Javier Martí-Fluxá Elías de Tejada

Secretary non-Board member

41