Year-end report 2018

Net sales increased sharply during the quarter to SEK 37.8 million (11.1) due to increased deliveries. Net sales for the full year amounted to SEK 58.9 million (11.9). Order intake for the fourth quarter amounted to SEK 40.0 million (12.6). In total, the order backlog amounted to SEK 818.6 million (353.7) by the end of the year. During the quarter many modules have been delivered to customers within Maritime. Within the geothermal segment, focus continues to be on Japan and Iceland, where Varmaorka is now conducting final tests of their first power plant which has begun delivering electricity to the local community.

OCTOBER – DECEMBER

  • Order intake amounted to 40.0 SEK million (12.6)
  • Net sales increased to 37.8 SEK million (11.1)
  • Operating profit/loss amounted to -32.7 SEK million (-20.1)
  • Earnings per share amounted to -0.7 SEK (-0.5)
  • Climeon increased the capacity with a new test center for development and testing of Heat Power modules in Kista
  • Climeon won the Japanese innovation prize “Top 10 Innovation” at Innovation for Cool Earth Forum (ICEF) inTokyo, hosted by the Japanese Government
  • In December, Climeon received an order from Iwana Power GK within geothermal in Japan worth SEK 40.0 million. Iwana Power GK is part owned by Baseload Power Japan and local entrepreneurs

JANUARY – DECEMBER

  • Order intake amounted to 478.5 SEK million (330.1)
  • Order backlog amounted to 818.6 SEK million (353.7)
  • Net sales increased to 58.9 SEK million (11.9)
  • Operating profit/loss amounted to -101.9 SEK million (-56.7)
  • Earnings per share amounted to -2.3 SEK (-1.5)
  • Cash and cash equivalents amounted to 90.0 SEK million (204.0)

IMPORTANT POST-CLOSING EVENTS

  • Christoffer Andersson, former COO of Climeon, was appointed CFO and deputy CEO. Olle Tholander was appointed Head of Sales and Marketing
  • Due to external factors Borealis GeoPower has experienced major delays, which is why Climeon has decided to remove their order, worth SEK 10 million, from the order backlog as of the first quarter 2019
  • As of January 1, 2019, Climeon applies IFRS9 for valuation of financial assets which implies that Baseload Capital will be valued at fair value, SEK 37.7 million, an increase of SEK 0.40 per share

CEO COMMENT

RECORD NUMBER OF MODULES DELIVERED

The fourth quarter 2018 was intensive with a record number of modules delivered. Net sales increased significantly for the quarter as well as the full year and amounted to SEK 37.8 million (11.1) in the fourth quarter. Net sales for the full year amounted to SEK 58.9 million (11.9).

Within the geothermal segment, Japan and Iceland continue to be in focus. The Japanese customers have completed the first drillings and two local Japanese Heat Power Operators are now ready: Hayabusa Power and Iwana Power GK. In Fludir in Iceland, where there one year ago was nothing but a single heat source, there is now a power plant that has begun to produce clean and renewable electricity. Now, final testing of the power plant is under way, including the surrounding components and the heat source, which will supply over 1 100 homes with green electricity.

We are entering 2019 with a large order backlog to be delivered and an on-going global expansion. This has increased the need for operational focus in both management and organization, which is why we have altered the management team and organization somewhat. The new composition gives us the best possible conditions for the rapid growth we have ahead of us, with power plants to be delivered and commissioned in several different parts of the world at the same time.

The new development and testing site in Kista, which we inaugurated in October 2018, is now fully operational. After only a few months in Kista we can see how much more efficient the testing process has become and how the time from production start to delivery could be shortened.

The operational costs have been kept low despite rapid growth. At the same time, we have been preparing the company for continued expansion through our investments in the Kista test site, SEK 8.5 million, where the main part of the costs has been in the fourth quarter. The large number of deliveries within the maritime segment during the fourth quarter, with payments in the first quarter of 2019, also had a certain negative effect on cash flow. This has affected our cash balance which by the end of the year amounted to SEK 90.0 million, in line with the business plan that was communicated in connection to the listing on Nasdaq First North Premier in October 2017.

The sentiment that I share with my colleagues right now is incredible. Our idea of changing societies by providing them with fossil-free electricity 24 hours a day, 7 days a week, regardless of sunshine and wind, has begun to be realized.

Thomas Öström, CEO Climeon

For full report, please see attached file.

For further information, please contact:
Thomas Öström, CEO, +46 708 94 96 05, thomas.ostrom@climeon.com 
Christoffer Andersson, CFO & Deputy CEO, +46 762 00 72 99, christoffer.andersson@climeon.com

This press release contains such information that Climeon AB (publ) is required to publish in accordance with the EU Market Abuse Regulation. The information was published for public disclosure on February 13th, 2019 at 08:00 CET through the agency of the contact persons set out above. 

About Climeon
Climeon is a Swedish product company within energy technology. The company's unique technology for heat power - Heat Power - provides sustainable electricity around the clock all year round, in abundance and cheaper than the alternatives, and thus outperforms other types of energy. Climeon aims to become a global leader and the world's number one climate solver. The B share is listed on Nasdaq Stockholm First North Premier. Certified Adviser is FNCA Sweden AB, +46(0)8-528 00 399, info@fnca.se


About Us

Climeon's mission is "business for a better world". The Climeon Heat Power system efficiently converts waste heat into clean electricity, ensuring fuel savings and reduced carbon emissions. The technology has received numerous awards including The World Wildlife Foundation (WWF) 2016 Climate Solver Award.

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