Bawat Water Technologies AB: BAWAT Announces Q1 Report 2023

Hørsholm, Denmark, May 23, 2023 - Bawar Water Technologies AB (BAWAT) today announces its Q1 Report for 2023. The report is available on Bawat's website (investor.bawat.com)

BAWAT is a leading supplier of sustainable ballast water treatment technology and services. BAWAT was listed on Nasdaq First North Premier Growth Market in Stockholm in March 2022.

Highlights Q1 2023 – order intake in line with guidance, margin above 20% and capital raise in motion

• Order intake in the first quarter was SEK 9.3 m.
• The Gross Margin in the period was reported at 21.6% which is in line with the long-term projection of 30% pending product mix.
• Sales in Q1 amounted to SEK 4.2 m.
• There are no Q1 2022 comparison figures as Bawat was stock listed late in Q1 2022 and first report for 2022 was Q1+Q2 (H1) combined.
• Quoting activity is still very high and Q1 was at similar level as Q4 2022 with more than SEK 75 m in quotes for the quarter. Quoting activity is very active for BWMS to both retrofit and newbuild ship projects as well as to mobile systems.
• NEFCO (Nordic Environment Finance Corporation) approved in principle a finance commitment for SEK 25 m to be disbursed in 2023/2024 and subject to 1:1 equity match from Bawat.
• Mobile BWMS (Ballast Water Management System) test system to Great Lakes Research Center was shipped and has post quarter arrived in Duluth in Minnesota USA.
• Two non-exclusive contracts with operating partners in the US Gulf of Mexico region was signed with focus on delivering Ballast-as-a-Service (BaaS) in coastal regions from Texas to Florida.
• The Order Intake for the quarter supports a repeated guidance for the year in the SEK 40-60 m range, although the influence from mobile BWMS orders will have large impact on final outcome in positive and negative direction.

Bawat is active in three market segments within ballast water management. The company estimates the annual market opportunity to:

• • Ship installations USD 3bn
  • Mobile installations USD 2bn (total market)
  • Ballast-water-as-a-Service (BaaS) USD 5bn

After closing of Q1 NEFCO financing has received final approval from its board and Bawat has carried out a directed share issue raising SEK 18.8 m to match first tranche of NEFCO loan of EUR 1.3 m. The directed share issue was conducted at a share price of 1.60 SEK/share. The net-proceeds from the directed share issue and the NEFCO financing are considered to be sufficient until Bawat reaches a positive cash flow from its operation.

Also, a few days after the close of the quarter, Bawat has signed a Term Sheet agreement with Damen Green Solution whereby the parties are aiming to establish a 50/50 Joint Venture focusing on the assembly and sales of mobile BWMS. Damen Green Solution is a Bawat competitor on mobile BWMS with its own InvaSave BWMS but will with the establishment of the new JV terminate the InvaSave program and focus on Bawat technology. Damen Green Solutions are part of the Damen global shipyard group and will thus be able to source and assemble Bawat mobile systems on a global and consistent basis under a new brand name ‘InvaSave powered by Bawat’.

FINANCIAL KEY FIGURES Q1 2023

* Parent of the Group was changed from Bawat A/S to Bawat Water Technologies AB
**In addition to this, IPO and other related non-recurrent items SEK 6.9m in 2022

Marcus P. Hummer, CEO comments on the developments in the first quarter: “The quarter was influenced by a combination of operational and financing activities. From an operational side we see a steadily increase in interest in mobile BWMS as ports and yards are getting increasingly aware of malfunctioning ships BWMS and regulators, especially in the USA, are becoming aware of the problem. US Coast Guard annual report from 2022 quotes “Compliance with ballast water management regulations continues to be one of the most challenging issues faced by the maritime industry”. Bawat mobile BWMS solutions as well as BaaS will positively benefit from this increase in regulatory awareness, and we believe that towards IMO compliance date in September 2024 this will positively support the predicted Bawat growth.

From a financing point of view, we are pleased that we have been able to secure needed funding for the onwards growth and operation in a market that is very difficult to raise capital in. However, once again Bawat shows that there is a strong belief from both current and new shareholders in the long-term perspectives in its technology and business model.

Order intake of SEK 9.3 m supports our full year guidance of SEK 40-60 m. Beyond the many interesting projects Bawat is quoting on, there is currently one large ship order under negotiations and also one very large mobile order in negotiations. The positive or negative impact including timing of these will to a large extent influence Order Intake for year end and guidance during the year”.

Find the full Q1 2023 report here: https://investor.bawat.com/company-reports/


FORWARD-LOOKING STATEMENTS

This announcement contains forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘outlook’, ‘guidance’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect.


FOR MORE INFORMATION, PLEASE CONTACT:

Investors & Media:

Marcus P. Hummer, CEO, E-mail: mph@BAWAT.com

John B. Henriksen, CFO, E-mail jbh@BAWAT.com

Certified Adviser

Svensk Kapitalmarknadsgranskning AB

Telephone: +46 11 32 30 732 

ca@skmg.se

This press release constitutes inside information that Bawat Water Technologies AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out above, at the time stated by the Company's news distributor, Cision, at the publication of this press release on May 23rd, 2023.

For further information about Bawat Water Technologies AB, please contact above.

About Bawat
The development of an entirely new approach to ballast water treatment utilizing onboard waste heat to treat ballast water led to the founding of Bawat in 2011. A ballast water treatment system avoids disposal of untreated water in seas and harbors.

Bawat’s BWMS is a system that is simple, cost-effective, and sustainable, build on a zero environmental impact, using standard marine components. No filters, no chemicals no UV. And is the first to market a USCG/IMO Type Approval BWMS that uses pasteurization to treat ballast water in a one-pass process.

Bawat has built upon its innovative breakthrough, and now offers ballast water solutions to the maritime industry in three categories: 

• Ship BWMS for Retrofit and New Builds
• Mobile containerized solution for multiple vessel usage in a port, on a ship or for rigs
• Ballast Water as a Service for contingency services in ports

Bawat is an engineer-driven company that is rooted in the tradition of Danish maritime innovation and with a deep maritime insight: www.bawat.com.