My notes from today's Extraordinary General Meeting in $SHT 2026-07-08 Below are my notes and reflections from today's EGM. These are my own notes and my own interpretation of what was said. Decisions at the meeting - Item 7 was removed from the agenda. This means the Articles of Association remain unchanged. - The maximum share count therefore remains: 35,000,000 B-shares 5,000,000 A-shares - The company currently has 31,344,897 shares outstanding, meaning there is still room to issue 8,655,103 additional shares under the current Articles of Association. All remaining proposals were approved unanimously. The atmosphere was completely different from the AGM. The Board had been in dialogue with the larger shareholders ahead of today's meeting, and it was very clear that there was much broader alignment this time. Johan Liu's presentation The presentation largely followed today's shareholder update but provided much more concrete details. To me, the most important slide was the production roadmap. The company's ambition is now to reach 1 million pads per month by December 2027, roughly split between: ~600,000 pads/month in Sweden ~400,000 pads/month in China It was also very clear that management now sees the addressable market as significantly larger than before, which is why they have substantially increased their ambitions. The message wasn't that they need better products. The message was that they need to deliver much larger volumes. Preferably yesterday. Demand from customers and strategic partners was described as several million pads per month. The biggest bottleneck The biggest challenge today is not the product. It is manufacturing. Johan Liu explained that they have already developed a new production process and new production equipment in a laboratory environment that can increase production capacity by approximately 80x compared to today's process. The technology already works in the lab. The real challenge is now transferring it from laboratory scale to industrial mass production. Claesson asked Johan Liu how long this transition would take if he received the resources he needs. His answer was roughly: "A couple of months." To me, this makes it fairly clear what any upcoming financing would primarily be used for. Claesson's message I found Claesson significantly more positive than at the AGM. He emphasized three main points. 1. Future capital raises must be handled better He was very clear that future equity raises need to be far more shareholder-friendly than the previous directed share issue. The key points were: - The market should be properly tested. - More investors should be given the opportunity to participate pro rata. - The process should build trust. The Board and Johan Liu also committed to handling future capital raises in a much better way. 2. If Johan Liu can demonstrate that new capital truly enables massive production scaling... ...then I got the impression that Claesson is very willing to support the company financially. My impression was that the conflict from the AGM has largely been put behind them. 3. The company needs to communicate better Claesson also requested much clearer communication regarding topics such as: - gross margins - break-even levels - production milestones - what different production volumes actually mean financially I completely agree with this. Pricing discussion There was also some discussion about pricing. According to Johan Liu, competitors largely determine current market pricing. Chinese competitors are able to push prices lower due to their large factories and lower manufacturing costs. SHT's competitive advantage is performance. There was also discussion about the increasing demand for very large pads, for example 15 × 15 cm. According to Johan Liu, no competitor is currently able to manufacture pads of that size, whereas SHT can. The downside is that larger pads generate more production waste. This is where GT50R® comes in. Instead of treating the waste as scrap, it can become feedstock for GT50R®. Current competitors are reportedly charging around USD 30–35 per pad. Johan Liu indicated that SHT should be able to command a somewhat higher price due to superior performance. Using a very rough back-of-the-envelope calculation: - 1 million pads/month - approximately SEK 350 per pad ...would imply annual revenue potential exceeding SEK 4 billion. Of course, this is an extremely simplified calculation. Partners will take their share of the value chain, the product mix may change, and future margins remain unknown. My biggest takeaway regarding financing This was probably what surprised me the most. The Board was very clear that they are comfortable with the company's current financial situation. At the same time, it was equally clear that additional capital will be needed. My interpretation is therefore: - no urgent financing - but new capital will likely be raised in the not-too-distant future However, I did not get the impression that a major strategic investment is already finalized and about to be announced over the coming days. That was personally a bit disappointing, as I had previously speculated about a potential investment from Henkel. Instead, I interpreted the roadmap roughly as follows: 1. Raise capital to implement the new production process. (Under the current Articles of Association there is room to issue 5,055,103 additional B-shares, and I got no impression that A-shares will be issued.) 2. Demonstrate that the new production process works at industrial scale. 3. Raise substantially larger amounts of capital afterwards. The Board also mentioned that another Extraordinary General Meeting will likely be needed towards the end of the year (November–January) to amend the Articles of Association and enable a much larger capital raise. The discussion was in a completely different league, at least SEK 500 million. To me, this indicates that management believes the major technical bottlenecks can be solved during the second half of 2026. My conclusion Overall, I would describe today's meeting as neutral to slightly positive. It was encouraging to hear about the demand and the long-term vision, but what I found even more interesting was that there now appears to be a much more concrete roadmap for moving from today's production levels to industrial-scale manufacturing. That said, the company still has a lot to prove. The key challenge is successfully implementing the new production process in a real manufacturing environment. That remains the biggest execution risk, although it isn't really new information. If they succeed, however, I believe the long-term outlook becomes very compelling. Johan Liu essentially repeated the same conviction he expressed at the AGM: "If we succeed in scaling production, there is nothing preventing SHT from becoming a world-leading company in this field."

No bottom in $SHT before the EGM. I believe the EGM will give a lot more stability and structure and clear out a lot of questions about the future The drop in share price is most likely people that want to get out before the EGM, and possibly buy back after clearing the questionmarks I am still holding large size at AVG 40 SEK and see attractive opportunity for the future. The product quality is there, they just need to sort out the production scale-up. And I believe in my opinion they will do that together with BTR New Material Group I am at the moment on vaccation and following everything closely from here However I am not happy with $SHT communication the last year. They need to improve this a lot, get your stuff together here SHT, I demand better (Not a recommendation or advice to buy, always risk with small companies)