Concerns

Hi long term believers,

I am new here (not so with SIS) and would like toshare some of my concerns and get yours if you have any.

Do you find the currentSP exciting? How about the credit converters?

I think last week was rather a slap on the face forlong term investors.

I am just wondering if we cannot see the forest forthe trees.

Here are some of my thoughts.

So far, no investors have made any money on thisdog during an unprecedented bull market specially in techs (except the flippersin condition they timed well the CRs and the following pumps). This includesDr. Tillet (impossible to sell without dumping). Everyone is heavily underwaterafter many years.

The way howthey have handled the previous cap rises and prior SP capping remain questionable.But we can easily say that it is not important for long term investors. However,what is more important their holding is constantlydiluted. As an investor, I do not like seeing this.

As a fact, we are constantly informed that every CRare oversubscribed but interestingly the cornerstone investors are differenteach time. And their intentions are questionable (vulture investors). Just checktheir investments in other companies such as L39 in PPY. It has not been asuccessful story for retailers so far.

If the business is so appealing why the cornerstoneinvestors are not throwing significant more money on the next CR? I guess Dr.Tillet did not also want to put substantially more money at this stage (???),he just pushed forward the bonus option (he also bought on the market above 25so he must not be happy with current SP???).

Back to the figures. The Sum of Sum seems to be notthat much at this moment unfortunately despite all the social media feed. Only thecost savings and conversion improved mainly the balance sheet.

There is a big silence about Sylvania. I am wonderingwhether it is still on the table. If I must guess, it has gone. It was badtiming. Europe is open for business for months now but no news about Sylvania.

Instead, the focus shifted on CarbonView which couldbe great if they manage to sell it to big corporations. However, I have doubtsthat it will happen anytime soon. Cutting the R&D might have seriously impactedthe quality of the software in a fast-developing sector. In addition, big companiesneed quality support of any IT products/service they buy, not just the productsitself.

At this moment, SIS have only a few young, talented(probably underpaid compered to their peers in developed countries) software developersin Vietnam. But realistically, they are probably not able to afford any seniorIT guys here or in Europe to be on the payroll atm. So how long this businessmodel is viable?

Without big costumer wins (millions) in near future,I think there is no chance for scaling up the business significantly (staff,R&D, and deliveries) and will likely be many CRs in the coming quarters (incondition they find more investors) around 25c just to keep the ship afloat. Whyany investors in right mind would pay more than this atm? I think 4c is a long stretchfrom here. I truly hope that I am wrong but sadly history usually repeats itselfeven in investments.

Do not get me wrong, the sector is booming and willplay an important role in our life in the future given the raising energy costsand green waves globally. We all know that and that is why all the sophisticatedand retail investors are interested in this company which the only one availableup to my knowledge on ASX atm. But whether SIS is the answer remains a questionfor me. Just imagine a big fish (even Sylvania or Google with their smart homes)throwing a few hundred million in this sector. Too many hurdles ahead. The onlything can turn this ship around is a TO (probably the best outcome for the managementstoo) with a decent offer, I think.

As I said, this is strictly my personal view, and asa shareholder I am more than happy proved to be wrong.

Please share your concerns in case you have any.

Anyway, keep up the good spirit and keep investing inthe green sector to make ours and children’ s life better (but preferablysomewhere else in a roaring tech bull market if you want to make some bucks inthe meantime). But who knows, let’s hope that one day will be our big payday.

Hopes to die last.

All the best.