Nilar International AB Interim Report Q3 2022

Nilar continues to execute on revised strategy.

July – September 2022 in summary

• Net sales, MSEK 1.2 (5.4).

• Production MWh 0.2 (4.2).

• Delivered batteries 68 (884).

• Gross profit MSEK -31.3 (87.4).

• EBITDA MSEK -38.0 (-93.0).

• Operating profit (EBIT) MSEK -53.8 (-112.2).

• Profit for the period MSEK -63.8 (-100.0).

• Earnings per share before/after dilution SEK -0.21 (-0.7)*.

January - September 2022 in summary

• Net sales MSEK -1.2. (17.9).

• Production MWh 0.4 (10.7).

• Delivered batteries 572 (2 959).

• Gross profit MSEK -107.1 (-241.8).

• EBITDA MSEK -128.8 (-271.5).

• Operating profit (EBIT) MSEK -175.8 (-326.9).

• Profit for the period MSEK -205.8 (-349.0).

• Earnings per share before/after dilution SEK -1.14  (-3.94)*.

Significant events during the third quarter

• Nilar began making the new ReOx battery throughout the quarter. ReOx is a patented innovation and procedure that permits oxygen filling when the battery has deteriorated and lost capacity. This restores the battery's original qualities and up to three times the life and energy production.

Significant events after the balance sheet date

• In accordance with the terms in Nilar's rights issue in Q2 2022, the remaining aprox. 21 million shares with delayed payment were issued and settled during October generating MSEK 21.5 in cash for the company before deductions of fees.

• A new collaboration agreement with Dutch company Mc Energy was signed. The agreement involves a ”Proof of concept” and a seven-system prototype project.

CEO's comments: We continue to deliver according to plan

Start of production for next-generation batteries in Nilar's third quarter

The third quarter meant that Nilar took a very important step forward when the production of batteries with the so-called ReOx technology began. The battery has been developed in close collaboration with researchers at Stockholm University and is the first of its kind in the world. In short, the technology means that used batteries can be filled with new life and thus regain the same storage power as a new battery.

The technology breakthrough extends the life of the batteries by several years and means significant cost savings for customers, as well as a greatly reduced resource and environmental impact. Our assessment is that our new batteries can play an important role in stationary energy storage systems that are needed both in homes, industries, other commercial premises as well as in the grid infrastructure of the future, to be able to store energy production from renewable energy sources and to smooth out fluctuations in power and price.

The order that is now being produced concerns a total of 800 batteries with associated software to be delivered to Enequi and integrated into their intelligent energy storage system QuiPower Storage – Hydride. Deliveries have begun.

New collaboration expands the field of use for Nilar's batteries

On November 14, we were able to announce about a new collaboration with Mc Energy, a Dutch  company, specialized in the design and production of advanced energy storage solutions. Mc Energy develops customized energy storage systems that are primarily aimed at industrial users. The letter of intent is a milestone in Nilar's strategic plan, where we seek partners with high technical ability to integrate our battery technology into complete energy storage solutions with a clear focus on specific market segments.

In short, the collaboration has an initial objective of three sub-projects, an integration project where next-generation Nilar batteries are tested together with Mc Energy's GridConn solution, and a pilot project where Nilar delivers around 350 batteries to seven Mc Energy BattPack 60 systems. The third project consists of enabling a larger volume production of the BattPack system, which includes Nilar's batteries. In many ways, Mc Energy complements our existing partners by offering solutions for industrial customers, which suits Nilar's advanced battery technology.

The energy crisis in Europe is driving demand for energy storage

The discussion about how we create a sustainable energy system has probably never been as relevant as today and is high on the agenda for both politics and business, in Sweden as well as in Europe. Here we see that safe and durable battery systems are a prerequisite for the green transition. Batteries are needed to be able to store energy production from renewable energy sources such as solar and wind power and to smooth out imbalances in the electricity grid.

Today, unplanned forms of energy account for approximately 10 percent of global energy production, and by the year 2035, that proportion is expected to increase to 35 percent. In parts of Europe, the proportion of unplanned energy production is already much higher today. It is becoming increasingly clear that the European energy crisis must be solved by increasing society's capacity to store energy, not least in houses, apartments and other properties.

Nilar supplies Safe and Sustainable batteries

Thanks to the flame-resistant and water-based chemistry, Nilar's batteries are also the safest choice. Our batteries fit in any property, regardless of whether it concerns a home, an office building or an industrial property. In fact, Nilar's batteries are so safe that they can be transported by air without any restrictions or special documentation.

ReOx technology allows our battery to be restored with new life, and circularity permeates everything we do, from design to completion and recycling of batteries. The flat cell design of our batteries is designed to simplify disassembly, allowing material to be reused in new battery cells. In addition, Nickel, the main component of the active material, is easily recycled without loss of quality. All batteries are manufactured in Sweden with 100 percent renewable energy.

Right now, there is a big focus on further developing the battery's performance and capacity, as well as continued efficiencies in the production stage. Sales take place through a few, carefully selected partners who deliver tailored comprehensive solutions for different market segments. With a strong offer and a clear strategy, we work diligently to reach Nilar's ambitious objectives.

* The historic amount of outstanding stocks when calculation  earnings per share have been recalculated as an effect of the bounds issue parameter in the carried out rights issue during q2 2022. The conversion factor is 3.16

For further information, please contact: 
Erik Oldmark, CEO
E-mail erik.oldmark@nilar.com 
Mobile +46 70 432 4444

About Nilar:
Nilar is a Swedish-based developer and manufacturer of batteries aimed for stationary electrical energy storage systems. Energy storage can be used to bridge the gap between energy production and consumption, for example to better exploit the potential of intermittent electricity production from renewable energy sources, such as solar and wind power. Energy storage systems will also play a key role when it comes to reinforce increasingly strained electricity grids. Nilar's battery technology is Nickel Metal Hydride (NiMH) based on a water-based electrolyte, resulting in a strong environmental, safety and performance profile. The company is headquartered in Täby and the energy efficient production, powered by 100% renewable energy, is since 2012 based in the Gävle, where the company's research and development also takes place.

The NILAR share is listed on Nasdaq First North Premier Growth Market. FNCA Sweden is Certified Adviser +46 (0)8-528 00 399. For more information, see 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 person set out above, at 2022-11-17 08:00 CET.

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