English

NILAR INTERIM REPORT Q2 2021

Report this content

CONTINUED STRONG MARKET DEMAND - THE QUARTER AFFECTED BY PRODUCTION DISTURBANCIES

April – June 2021 in summary

  • Revenue 7.2 (7.5) MSEK.
  • Production 3.3 MWh.
  • Delivered energy storages 220 (136), average size per energy storage 7 (12) kWh.
  • Gross profit -84.8 (-39.7) MSEK.
  • EBITDA -100.6 (-48.5) MSEK.
  • Operating income (EBIT) -118.7 (-63.1) MSEK.
  • Net loss -134.7 (-86.0) MSEK.
  • Earnings per share before/after dilution -4.03 SEK.

January – June 2021 in summary

  • Revenue 12.6 (12.1) MSEK.
  • Production 6.5 MWh.
  • Delivered energy storages 293 (189), average size per energy storage 10 (13) kWh.
  • Gross profit -154.4 (-81.2) MSEK.
  • EBITDA -178.6 (-96.9) MSEK.
  • Operating income (EBIT) -214.8 (-124.0) MSEK.
  • Net loss -249.1 (-154.1) MSEK.
  • Earnings per share before/after dilution -12.93 SEK.

Significant events during the second quarter

  • The company's shares were listed on Nasdaq First North Premier Growth Market on April 30.
  • During the quarter, Nilar had production disturbances that significantly affected the quarter's production. After the end of the quarter, the production disturbances have in material respects been solved.
  • Nilar’s offering has continued to expand and new integration projects have been initiated to meet a broadened customer base.
  • Production capacity at the Gävle plant is increasing and four more production lines will be installed during the second half of 2021.
  • The establishment of production in Estonia is ongoing, and production is planned to commence during the summer of 2022.

Significant events after the end of the period

  • Erik Oldmark appointed acting CEO, following the resignation of CEO Marcus Wigren.

CEO Review

The global market for energy storage solutions continues to develop rapidly. There is a very high demand for sustainable and environmentally user-friendly batteries. According to BloombergNEF, energy storage projects for transmission and distribution services are expected to grow to a value of 277 bn USD by 2050. To achieve the goals under the Paris Agreement, limiting the global temperature increase to 1.5°C, stationary energy storage equivalent to 16 TWh needs to be in place by 2050, according to the International Renewable Energy Agency (IRENA).

During the second quarter, we continued to expand our production capacity at the plant in Gävle. At present, we have four production lines in operation, and we expect to gradually expand during the autumn so that after the turn of the year we have eight production lines operational. Demand for our solutions continues to be significantly higher than our production capacity.

We continue to work with several development projects to broaden the product portfolio and to strengthen Nilar's market position. We continue our integration projects with new partners to offer the market complete solutions with new in-demand functions.

The second quarter has, as previously communicated, been affected from temporary quality problems in the raw material supply chain and certain components as well as limitations in the possibility of making full use of the production organization due to Covid-19, which has meant that production volumes for 2021 will be lower than previously planned. In addition to lower volumes, we have also had increased costs. The production disturbances that have affected the earnings trend during both the first (the ventilation system in the Gävle plant) and the second quarter are now almost resolved. In parallel with this, work has continued to increase the utilization rate of the existing machine equipment. We therefore estimate that the autumn volumes from our facility in Gävle will approach the previously planned production volumes.

The lower result for the quarter is mainly due to higher costs for materials and increased personnel costs. At the same time, the number of delivered energy storage systems increased by as much as 62 percent to 220. We have delivered all that has been produced and we see that the price level in the market is stable.

During the summer, we also established a subsidiary in Estonia according to plan. The work of completing the facility is in progress with adaptation of production facilities and recruitment of key personnel. Production is expected to start in the summer of 2022.

Despite the production disturbances we had during the quarter, our financial targets remain unchanged with the goal of profitable growth. In 2023, the goal is to achieve sales of more than SEK 1 bn. The long-term EBITDA target is a margin of over 20 percent that is achieved through higher volumes, economies of scale and a higher share of production in low-cost regions.

I would especially like to thank all my colleagues at Nilar. It has been and is an eventful time where we have broken new ground in the transition to renewable energy, an incredible journey that will continue for a long time to come. Demand for our solutions and offers is growing strongly and we are in an expansive phase towards commercialization and profitable growth. The interest from both customers and investors is great. I have now worked at Nilar for 14 years in various positions and in recent years as CEO. As previously communicated, Erik Oldmark has been appointed acting CEO. It feels reassuring to now hand over the baton to Erik Oldmark, who can take Nilar further operationally and commercially, and at the same time create shareholder value.

Marcus Wigren, CEO Nilar
Täby 23 August 2021

For further information, please contact:

Marcus Wigren, CEO
E-mail marcus.wigren@nilar.com
Mobile +46 767 69 50 75

About Nilar

Nilar is a Swedish-based developer and manufacturer of stationary energy storage systems, so-called Electrical Energy Storage (ESS) systems. Energy storage systems can be used to bridge imbalances between energy production and demand in order to, for example, improve the utilization of intermittent electricity production from renewable energy sources, such as solar energy and wind power, as well as to strengthen the increasingly strained power grids. Nilar's battery technology is based on nickel-metal-hydride (NiMH) electrochemistry with a water-based electrolyte, which results in a strong environmental and safety profile together with a competitive price over a life cycle. The Company is headquartered in Täby and the energy-efficient production facility is, since 2012, located in Gävle, where the Company's research and development also takes place.

The Nilar share is listed at Nasdaq First North Premier Growth Market, ticker NILAR. FNCA Sweden is Certified Adviser +46 8 528 00 399. For more information go to www.nilar.com.

This information is information that Nilar International 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 persons set out above, at 2021-08-23 08:00 CEST.

Attachments

Subscribe

Documents & Links