Nexam Chemical Holding AB (publ) Interim Report 1 January – 30 June 2023

Lower sales but increased margins during the quarter

Second quarter at a glance

Significant events during the quarter:

• Ronnie Törnqvist was appointed as the new CEO.
• Sales decreased by 25% compared to the corresponding quarter in 2022, while the gross margin increased from 40% to 43%.
• Performance Masterbatch sales decreased by 21% compared to the corresponding quarter in 2022 and Performance Chemical decreased by 31%.
• Received an order of SEK 0.5m for additives to recycled PET for use in food packaging.
• Was granted 2.5 mSEK in grants from the Wallenberg Initiative Material Science for Sustainability (WISE). The grant will be used for research to use recycled plastic in more high-quality applications.

Financials during the second quarter 2023:

• Net sales during quarter amounted to SEK 41,623,000 (55,417,000).
• The gross margin amounted to 43% (40%) during the quarter.
• The adjusted operating profit before depreciation (Adj EBITDA) for the quarter was - 5,496,000 (- 930,000). The adjustment is related to the cost for change of CEO of 2.0 mSEK and write down of stock of 0.8 mSEK.
• The operating profit before depreciation (EBITDA) for the quarter was SEK – 8,298,000 (- 930,000).
• In comparison to the beginning of the year, cash and cash equivalents amounted to SEK 20,424,000 (22,875,000).
• Cash flow from the operating activities during the quarter amounted to SEK - 6,564,000 (- 2,841,000).
• Earnings per share before and after dilution amounted to SEK -0.16 (-0.05) for the quarter.

Lomma 14 July 2023

The Board of Directors

These financial statements haven’t been reviewed by the Company´s auditor.

Presentation:

Nexam Chemical presents the interim report for the second quarter 2023 on July the 14^th at 13:30 CET. The presentation will be held in Swedish via the following link: https://youtube.com/live/JVn79zwlqDU

Note: This press release has been translated from Swedish. The Swedish text shall govern for all purposes and prevail in case of any discrepancy with the English version.

For further information please contact:                                                                                  

Ronnie Törnqvist, VD, +46 (0)706-25 41 85, ronnie.tornqvist@nexamchemical.com

Certified Adviser:

FNCA Sweden AB, info@fnca.se

This information is information that Nexam Chemical Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:18 CET on 14^th of July 2023.

About Nexam Chemical

Nexam Chemical develops technology and products that make it possible to significantly improve the production process and properties of most types of plastics in a cost-effective manner and with retained production technology. The improved properties include strength, toughness, temperature and chemical resistance as well as service life. The improvements in properties that can be achieved by using Nexam Chemical's technology make it possible to replace metals and other heavier or more expensive materials with plastics in a number of applications. In applications where plastic is already used, Nexam Chemicals products can improve the manufacturing process, reducing material use and enable more environmental friendly alternatives. Example of commercial applications: pipe manufacturing, foam production and high-performance plastics. More information about the business will be found on www.nexamchemical.com. The company´s Certified Adviser is FNCA Sweden AB. FNCA Sweden AB can be reached at info@fnca.se or by phone +46-8 528 00 399.

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