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Nilar International AB Year-end Report 2022

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Nilar continues to execute on revised strategy

October – December 2022 in summary

  • Net sales, MSEK 1.5 (-0.1).
  • Delivered batteries 20 (228).
  • Gross profit MSEK -43.2 (-237.7).
  • EBITDA1 MSEK -57.0 (-110.6).
  • Operating profit (EBIT) MSEK -73.3 (-269.5).
  • Profit for the period MSEK -81.6 (-251.5).
  • Earnings per share before/after dilution SEK -0.26 (-1.75).

January - December 2022 in summary

  • Net sales MSEK 0.3 (17.8).
  • Delivered batteries 592 (3 187).
  • Gross profit MSEK -150.3 (-479.5).
  • EBITDA MSEK -185.8 (-382.1).
  • Operating profit (EBIT) MSEK -249.1 (-596.4).
  • Profit for the period MSEK -287.5 (-600.5).
  • Earnings per share before/after dilution SEK -1.59 (-5.87).

Significant events during the fourth quarter

  • The first deliveries of Nilar's next generation battery – Nilar ReOx® batteries – have been made to a customer as part of a larger order of 800 batteries. The production rate in Nilar's factory in Gävle has been gradually increased to meet current orders in 2023. ReOx® is a patented process that enables oxygen filling when the battery has aged and the capacity has decreased, which recreates the battery's original properties and thus extends the lifespan and energy output by up to three times.
  • During the quarter, Nilar International AB signed a letter of intent with Dutch Mc Energy B.V., specialized in the design and production of advanced energy storage solutions. Mc Energy’s tailored energy storage systems are primarily aimed for industrial users. This is an important step in Nilar's strategy, to cooperate with a few close partners and develop safe battery solutions where Nilar's stationary batteries reach their full potential.

Significant events after the balance sheet date

  • A new strategic collaboration between Nilar and Indutecc Renewable Solutions has been established, for the development of smart energy storage solutions with Nilar's ReOx® batteries for industries and commercial properties.

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

Several important developments during a challenging year
2022 has been an unusual and important year in Nilar's development. We started the year with halted production and continued great uncertainty in the wake of covid-19. But the journey that Nilar has made in 2022 is in many ways outstanding. As CEO, I am proud that we in a short time changed the strategy and started the production of the next generation Nilar battery, Nilar ReOx®. In fact, the only battery in the world that can be refilled with new life.

The new strategy is based on our expertise and the core of the business – the battery itself. Together with selected partners, we build customized battery solutions where Nilar's batteries reach their full potential in smart energy storage systems. With the next-generation battery in place, we offer a high-performance, safe and sustainable solution that can be adapted to the specific needs of our partners and customers.

A sustainable green energy transition
The green energy transition continues to be an important driving force for the battery market and our business. Nilar's idea is to speed up electrification and the green transition. We make batteries for sustainable energy storage, which is crucial for a green transition that works. We ensure that electricity is available when it is needed and not only when it is produced.

In order for Sweden and Europe to cope with the green transition and at the same time strengthen their global competitiveness, our domestic battery production will be strategically important - not least in a world where self-sufficiency has become more important.

Nilar has a patent on a battery design based on nickel. The advantages of using nickel are many; longer lifespan, less risk of fire and not least the large amounts of extractable nickel found in Europe. For us, it is important to contribute to the green transition in a sustainable way in the form of necessary energy storage in our energy systems. This with a technology that has the potential to break the dependence on input goods from regions where production is not transparent. In addition we are the only ones with a battery that can be recycled and reused several times over. That is sustainability for real.

Nearly doubled production rate
At our factory in Gävle, we produce and develop our batteries with our own innovations, patents and entrepreneurial spirit. In October, the production started of the next-generation battery, Nilar ReOx®. This is an important milestone in the collaboration with Enequi and the first step in an order for a total of 800 batteries with accompanying software.

In 2023, the production rate will increase further. To be more exact, the production will nearly double from the levels in October. The batteries will be used both commercially together with Enequis solutions as well as in test systems and pilot projects. They will also be used to replace previous generations of Nilar batteries in older systems out in the market.

Nearly doubling the production rate in our factory in Gävle is an important part of our plan to systematically increase production. Together with selected partners, such as Enequi, we will continue to develop smart battery solutions. During the fourth quarter, a new collaboration was started with Dutch Mc Energy. The project is on schedule and at this rate we will be ready to take major orders in 2023 with delivery in 2024.

Strengthening of the management team
We have also strengthened our management during the year. In December 2022, Ulf Sandegren took office as the new CFO for Nilar. He most recently comes from listed Hifab AB and has several years of experience in developing finance, risk management, compliance and budget management at companies such as Metria, Bankgirot and Capgemini. As CFO, Ulf will have an important role in the implementation of Nilar's new strategy.

The right conditions for 2023
We still have a lot to prove, but with a new strategy in place, a unique product that is demanded by the market, and production going according to plan, our starting point for 2023 is significantly better than last year. There are still challenges ahead, but also good reasons to look forward to a year in which we can tick off the milestones we have set, step by step.

Erik Oldmark, CEO Nilar

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

About Nilar:

Swedish-based Nilar International AB develops and manufactures batteries that are part of stationary energy storage systems. With better energy storage, society can support the increasingly stressed electricity grid by bridging imbalances between energy production and demand, especially important as the share of renewable energy sources increases. Nilar's battery technology is based on nickel metal hydride (NiMH) electrochemistry with a water-based electrolyte, which provides both higher safety and better performance while allowing the components to be recycled and reused. Nilar has its headquarters in Täby and since 2012 all batteries have been developed and produced in the production facility in Gävle, which is powered by 100% renewable energy.

The Nilar share is listed on the Nasdaq First North Premier Growth Market under the ticker NILAR. FNCA Sweden is Certified Adviser 08-528 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 2023-02-16 08:00 CET.

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