Interim report for the period 1 January – 30 September 2019

Fri, Nov 29, 2019 08:00 CET

EWPG Holding AB (publ) reports significant progress during the first three quarters of 2019

In Q3, EWPG Holding AB (publ) (the “Company”, “Eco Wave Power” or “EWP”) has been focused on the strengthening of our technology, patent portfolio and expanding our core team and projects pipeline, allowing us to address the global interest for our technology, accelerate the execution of wave energy licensing processes, and strengthen our implementation capacity.

Comments to the financials

Numbers in parentheses refers to outcomes during the corresponding period of the previous year.

Third quarter of 2019

Revenues (grants) of SEK 0.5 million (0).
Net loss of SEK 8.2 million (2.2). Net loss excl. IPO related costs of SEK 3.9 million.
Earnings per share of SEK -0.3 (-19.8).
As of 30 September 2019, cash and cash equivalents amounted to SEK 108.4 million.

First nine months of 2019

Revenues (grants) of SEK 0.7 million (0).
Net loss of SEK 13.6 million (5.9).
Earnings per share of SEK -0.9 (-53.0).

Significant events for the period 1 January – 30 September 2019

On the 18th of July, EWPG Holding was publicly listed on Nasdaq First North. Eco Wave Power raised SEK 120.8 million, before transaction costs. Eco Wave Power welcomed around 5,900 new shareholders in EWPG Holding AB, including AP4 and Skandia Fonder, who become two of the company's largest shareholders, as well as the chairman of the board, Mats Andersson, and the director of the board, Elias Jacobson.

Post IPO, David Leb, Co-Founder of Eco Wave Power purchased 39,800 number of additional shares in the company, which expanded his holding to 11,789,800 and Mr. Elias Jacobson (board member) increased his holding by 20,000 shares.

Eco Wave Power won the prestigious United Nations Global Climate Action Award, which will be officially awarded to the company during COP25, in Madrid, Spain.

Eco Wave Power filed a New Patent for Combined Wave and Solar System and started testing of the combined solution in Jaffa Port, Israel.

Eco Wave Power received a patent registration approval for EWP’s proprietary automation system.

In September 2019, Eco Wave Power submitted the full report to Horizon2020 and received the full amount of funding from Horizon 2020.

Eco Wave Power met the second milestone for the grant of the Office of the Chief Scientist of the Energy Ministry, Government of Israel. The funding is used for the Jaffa Port project expansion.

Eco Wave Power started procurement of parts for the Jaffa Port project expansion. Eco Wave Power has partnered with Siemens for the project, which will provide the electrical and grid connection technology while also upgrading Eco Wave Power's components for improved system efficiency.

Eco Wave Power conducted an Environmental Survey in connection with the Jaffa Port Project. The survey was conducted by Dr. Gil Ben Nathan, from GEO-TEVA Environmental Consulting. The results of the survey are that EWP’s project has no negative impact on the surrounding environment.

Eco Wave Power and EDF Renewables have established the JV company, in accordance with the agreement signed between the parties in Q2. The first board meeting between the parties was held in October.

Representatives from Eco Wave Power, EDF Renewables IL and Siemens met with IEC (Israel Electric Company) to discuss the next steps necessary for the grid connection of the Jaffa Port

Eco Wave Power received new Letters of Intent for projects in Portugal, Brazil, the Maldives and Australia.

Eco Wave Power’s activity received coverage by BloombergNEF Research, under the name “2019 Update on Wave and Ocean Thermal”.

Significant events after the reporting date

Eco Wave Power finalized parts procurement for the Jaffa Port conversion unit and started Assembly of the conversion unit.

Eco Wave Power installed a spotter buoy in proximity to its’ wave energy power station in Gibraltar. The spotter measures wave height, period and direction, as well as the wind speed in the implementation site.

Eco Wave Power is adding five positions in the company in order to reinforce and accelerate the company’s projects delivery capabilities, including EPC manager to be responsible of the execution, timeline and budget of the upcoming projects, Maintenance manager for the Jaffa Port Project, HR Manager, grant writer, and marketing and communication assistant.

Eco Wave Power was positively covered by Forbes magazine and The Economist.

Inna Braverman, CEO of Eco Wave Power, was a speaker in the C40 World Mayors Summit, with respected speakers, such as Al Gore and spoke in the Women4Climate panel, along with the Mayor of Stockholm.

Eco Wave Power was shortlisted for the prestigious Business Green Technology Awards in the UK, under the category Renewable Energy Technology of the Year.

CEO Comments

Dear Shareholders,

in Q3, we have been focused on the strengthening of our technology, patent portfolio and expanding our core team and projects pipe-line, allowing us to address the global interest for our technology, accelerate the execution of wave energy licensing processes, and strengthen our implementation capacity.

Eco Wave Power (EWP) is working hard to prove the validity of our approach in wave energy, arguing for the need of cost efficient onshore marine energy solutions. Supporting this approach is a study by the Institute of Marine Sciences and Technology at Dokuz Eylül University. The study determines that onshore technologies have significantly higher survivability and are more cost effective than offshore solutions. Another study by Dr. Peter Harrop, where EWP is mentioned, points at an increased interest in waterpower, as reflected in large actual orders for waterpower solutions. The main issue is avoiding huge infrastructure and using simpler devices particularly in the sea. EWP has over the last few years built robust power stations in Israel and Gibraltar at significantly lower cost than the offshore solutions. In 2016, the Gibraltar power station was connected to the grid and safely sent energy to the grid for the first time.

Now, few months after the company’s IPO, we have already reached the assembly phase of our Jaffa Port project, which we are executing in collaboration with EDF Renewables IL and Siemens. The Jaffa Port Project will be our second grid connection project and will include significant upgrades in the electricity conversion part and in the automation system. It will also enable the company to prepare for the next significant step, which is the execution of a commercial wave farm.

In this quarter we also:

Reinforced the Eco Wave Power patent portfolio by filling for a new patent for combined wave and solar system and started testing of the combined solution in Jaffa Port, Israel and received patent registration approval for EWP’s proprietary automation system.
Established the joint venture company with EDF Renewables IL for the execution of the expanded Jaffa Port Project and started working with EDF on upgrade to EWP’s automation system.
Representatives from Eco Wave Power, EDF Renewables IL and Siemens met with IEC (Israel Electric Company) to discuss the next steps necessary for the grid connection of the Jaffa Port expansion project.
Conducted an Environmental Survey in connection with the Jaffa Port Project. The survey was conducted by Dr. Gil Ben Nathan, from GEO-TEVA Environmental Consulting. The results of the survey are the EWP’s project has no negative impact on the surrounding environment.
In Gibraltar, Eco Wave Power installed a spotter buoy in proximity to its’ wave energy power station. The spotter buoy is measuring the wave height, period and direction, as well as the wind speed in the implementation site.
Submitted a detailed report to Horizon2020 and received the full funding under the program. We also met the required mile-stones under the funding program of the Israeli Chief Scientist of the Energy Ministry and received the second mile stone payment.
Received new Letters of Intent for projects in Portugal, Brazil, The Maldives and Australia.

In the same time, we were extremely honored to be recognized for our contribution for the mitigation of climate change by being awarded the United Nations Global Climate Action Award (UNGCAA). We believe that the attention received in conjunction with the UNGCAA, recent recognitions in the research community, along with the capital injection in Q3, has strengthened EWP’s position. These factors have together resulted in significantly increased interest in EWP technology from global electric companies, governments, ports, municipalities and engineering companies.

In October 2019, The Economist published an article focusing on EWP technology, arguing for the need for onshore marine energy projects in lower risk environments. In the same month, EWP was also featured in FORBES Magazine. I believe there is a visible shift in the global scientific, business, research and media world towards an increased support for EWP’s technological approach.

Inna Braverman

CEO

For the full interim report, please click here.

About EWPG Holding AB (SE0012569663)

EWPG Holding AB (publ) (“Eco Wave Power”) is a Swedish company, founded in Tel Aviv, Israel, in 2011, that has developed a patented, smart and cost-efficient technology for turning ocean and sea waves into green electricity. Eco Wave Power is the only wave energy company in the world, to own and operate a wave energy array of floaters, which is connected to the grid in accordance with a Power Purchase Agreement (PPA).

EWP is recognized as a “Pioneering Technology” by the Chief Scientist of Israel’s Ministry of Energy and was labelled as “Efficient Solution” by the Solar Impulse Foundation. Furthermore, EWP’s project in Gibraltar has received funding from the European Union Regional Development Fund and recently received funding from the European Commission’s HORIZON2020 framework program. The company also won the United Nations Climate Action Award for 2019, which will be granted to the company during COP25 in Madrid, Spain.

EWP holds projects pipeline of 190MW and has six branches – in Sweden, Israel, Mexico, China, Australia, and Gibraltar.

This information is information that the Company is required to disclose under the EU Market Abuse Regulation. The information was provided by the contact persons above for publication on 29 November 2019 at 08.00 CET.

FNCA Sweden AB is Certified Advisor of the Company (+46 8-528 00 399, info@fnca.se).

For more information, please contact:

Yair Rudick, Business Development and Strategy
Yair@ecowavepower.com
+972 350 940 17

Andreas Kihlblom, CFO
andreas@ecowavepower.com
+46 (0)8 420 026 94

EWPG Holding AB (publ)