PowerCell Sweden : Interim Report Q1 2025

About this update from Powercell Sweden Ab

Interim report First quarter 2025 Interim report first quarter 2025 Steady pace through rough waters January-March 2025 Net sales SEK 74.1m (52.1), an increase of 42% compared to same quarter previous year Gross profit increased to SEK 27.5m (24.6) with a gross margin of 37.1% (47.2) Operating income before and after items affecting comparability SEK -11.3m (-29.3) Net income SEK -15.7m (-25.1) Operating cash flow SEK -79.3m (38.7) Earnings per share (basic and diluted) SEK -0.43 (-0.66) Significant events during the first quarter PowerCell Secures 2 MW Order for M2Power 250 systems in Maritime Sector PowerCell Group Attains Aviation AS9100D Certification Key performance indicators SEK million, unless other stated Jan-Mar 2025 Jan-Mar 2024 2024 Net sales 74.1 52.1 334.3 Gross profit 27.5 24.6 116.2 Gross margin, % 37.1 47.2 34.8 EBITDA -6.0 -23.7 -30.9 Operating income -11.3 -29.3 -53.7 Net income -15.7 -25.1 -47.3 Earnings per share (basic and diluted), SEK -0.43 -0.66 -1.52 Equity asset ratio, % 65.3 58.9 62.5 Operating cash flow -79.3 38.7 -18.6 . 2 Interim report first quarter 2025 CEO comments Steady pace through rough waters In the first quarter of 2025, we continued to navigate a complex global landscape with steady hands and clear direction. A landmark 2 MW order for our M2Power 250 systems worth over 150 MSEK from a major European shipbuilder marked a strong start to the year and is an important step forward in our transition toward an OEM-driven business model. This order is not just a commercial success, it shows that our marine offering is meeting the needs of customers moving from pilot projects to real operations. Fuel cell systems are increasingly becoming part of long-term propulsion and power generation plans in active fleets, particularly within cruise ships and large yachts. While policy and regulatory signals remain mixed, demand continues at a steady pace. More of our customers now come to us with clear industrialization plans, structured procurement processes, and a readiness to scale, although decision cycles are being slowed by broader global uncertainty. Solid First Quarter Performance with Continued Focus on Long-Term Fundamentals The order also confirms our growth strategy: increase the number of installations - and increase PowerCell's value per installation. The M2Power 250 supports both. It's encouraging to see yet another new product gaining traction so soon after launch. With the M2Power 250, we are taking PowerCell beyond fuel cell electrification, simplifying integration for shipyards and system integrators, and accelerating hydrogen adoption in markets where infrastructure is still catching up. In the first quarter, net sales amounted to SEK 74 million, representing a 42% increase compared to the same period last year. The growth is primarily driven by increased OEM deliveries, which now account for a growing share of our overall business. EBITDA improved to SEK -6 million, compared to SEK -24 million in the first quarter of 2024, reflecting improved leverage and continued cost discipline. Gross margins remained stable, supported by a better product mix and growing contributions from application development and services. Operating cash flow for the quarter was SEK -79 million. The decline is primarily due to periodization of significant procurements in Q4 2024 attached to project deliveries with customer invoice milestones during H1 2025. Q1 also marks the third consecutive quarter with monthly OEM-related product order intake exceeding SEK 50 million, an important signal of both consistency and scale in our core business. Investing in Capability and Scaling for Long-Term Delivery We continue to strengthen our industrial foundation to support growing OEM demand. In the quarter, we were awarded AS9100 certification, confirming our quality management systems meet the rigorous standards of the aviation industry. Production of the Marine System 225 is scaling up to meet increasing volumes from OEM customers, and we have expanded our capacity for customer commissioning. These steps are key as more deliveries move from pilots to full- scale commercial use. From Innovation to Integration The theme of this quarter is steady progress. As the green energy transition continues, we see mixed policy signals and financial pressure across parts of the industry. It's a complex environment, but real transformation is rarely about perfect conditions. It's about moving forward even when things aren't fully settled. At PowerCell, we're focused on integration. Innovation isn't just about introducing new technology, it's about making sure it works in the hands of real customers, in real operations. That's where the Marine System 225 and M2Power 250 come in. These platforms are designed to meet industrial requirements in lab settings, shipyards, docks, and day-to-day maritime operations. We're now delivering systems that plug into our customers' existing workflows and long-term plans. That's how we support the transition, not just by developing new solutions, but by making sure they're usable, scalable, and aligned with where the market is heading. We're seeing early signals of this shift across the board: demand from more mature customers, product adoption tied to real operational plans, and technology that is moving from demonstration to deployment. Gothenburg, March 2025 CEO Richard Berkling 3 Interim report first quarter 2025 Financial performance January-March 2025 Net sales Net sales amounted to SEK 74.1m (52.1), an increase of 42%. The Marine segment contributes by SEK 43.5m to the quarterly net sales. Sales of projects, according to percentage of completion, amounted to SEK 41.5m (27.9). Royalty fees from Robert Bosch GmbH accounted to SEK 5.0m (2.8). Gross profit and operating income/loss Gross profit increased to SEK 27.5m (24.6) with a gross margin of 37.1% (47.2), however margin was held back by negative currency effects EUR/SEK, approximately SEK 18m, following re-evaluating project reported as percentage of completion. During first quarter 2024 gross margin was impacted positively by currency effects of approximately SEK 8m. Other operating income amounted to SEK 24.1m (6.9). The difference compared to previous year predominantly caused by more projects subject for grants. In the quarter, SEK 10.5m (9.5) was capitalised as development expenditures. The majority of the capitalised expenditures are related to the development of a new version of PS200 system. Net income and financial items Net financial items amounted to SEK -4.5m (4.1). Net income in the quarter was SEK -15.7m (-25.1). Cash flow During the quarter operating cash flow was SEK -79.3m (38.7). The negative operating cash flow is predominantly related to significant changes in accounts receivable and accounts payable totalling approximately SEK -79m impacting operating cash flow negatively. This situation is deriving from large pre-buys for projects during Q4 and milestones for invoicing in customer project plans during Q1, not yet collected. The rollover effect between quarters was expected and mentioned in the Q4 presentation. Cash flow from investing activities was affected by product development capitalisation. In the quarter, SEK 10.5m (9.5) was capitalised as intangible assets. Total cash flow for the quarter amounts to SEK -92.1m (26.5). Financial position On March 31, 2025, cash and cash equivalents amounted to SEK 140.8m (101.2). Net sales Gross profit % 160 400 60% 60% 140 350 50% 50% 120 300 40% 40% 100 250 80 200 30% 30% 60 150 20% 20% 40 100 10% 10% 20 50 0 0 0% 0% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Net sales, SEK million R12M Gross profit margin, % R12 Gross profit margin % 4 Interim report first quarter 2025 Condensed income statement - Group SEK thousand Note Jan-Mar 2025 Jan-Mar 2024 2024 Net sales 74,110 52,067 334,278 Costs of goods and services sold -46,601 -27,513 -218,107 Gross profit 27,509 24,554 116,171 Selling and administrative costs 4 -30,379 -29,094 -113,334 Research and development costs -27,889 -22,824 -110,877 Other operating income 7 24,100 6,859 48,908 Other operating costs 8 -4,630 -8,813 -24,611 Operating income before items affecting -11,289 -29,318 -83,743 comparability Items affecting comparability 6 - - 30,000 Operating income -11,289 -29,318 -53,743 Net financial items -4,493 4,067 6,159 Profit (loss) after financial items -15,782 -25,251 -47,584 Income tax 84 103 299 Profit (loss) for the period -15,698 -25,148 -47,285 Other comprehensive income: Items that may be reclassified to profit or loss Exchange differences from foreign operations -165 -184 -317 Other comprehensive income for the period -165 -184 -317 Total comprehensive income for the period -15,863 -25,332 -47,602 Profit (loss) for the period and total comprehensive income are, in their entirety, attributable to shareholders of the Parent Company. Earnings per share, calculated on profit (loss) for the year attributable to Parent Company shareholders of ordinary shares: SEK Note Jan-Mar 2025 Jan-Mar 2024 2024 Earnings per share, basic 5 -0.43 -0.66 -1.52 Earnings per share, diluted 5 -0.43 -0.66 -1.52 5 Interim report first quarter 2025 Condensed balance sheet - Group SEK thousand 2025-03-31 2024-03-31 2024-12-31 ASSETS Non-current assets Intangible assets 72,749 31,371 62,769 Right of use assets (leasing) 25,775 32,170 26,326 Tangible fixed assets 23,251 31,586 25,440 Deferred tax assets 437 344 413 Total non-current assets 122,212 95,471 114,948 Current assets Inventories 133,859 134,008 144,180 Current receivables 214,453 96,781 165,854 Cash and cash equivalents 140,772 101,216 237,458 Total current assets 489,084 332,005 547,492 TOTAL ASSETS 611,296 427,476 662,440 EQUITY AND LIABILITIES Equity attributable to Parent Company shareholders Share capital 1,274 1,147 1,274 Other contributed capital 816,892 635,007 816,892 Reserves -482 -184 -317 Retained earnings (including profit (loss) for the -418,575 -384,159 -404,146 year) Total equity attributable to Parent Company 399,109 251,811 413,703 shareholders Liabilities Non-current liabilities leases 16,352 21,852 17,174 Non-current liabilities 334 30,572 395 Current liabilities leases 7,183 6,952 6,646 Current liabilities 188,318 116,289 224,522 Total liabilities 212,187 175,665 248,737 TOTAL EQUITY AND LIABILITIES 611,296 427,476 662,440 6 Interim report first quarter 2025 Condensed statement of changes in equity - Group Attributable to shareholders of the Parent Company Retained Other earnings incl. contributed profit (loss) for SEK thousand Note Share capital capital Reserves the year Total equity Opening balance 1 January 2025 1,274 816,892 -317 -404,146 413,703 Profit (loss) for the period - - - -15,698 -15,698 Other comprehensive income for the period - - -165 - -165 Total comprehensive income for the period - - -165 -15,698 -15,863 Transactions with shareholders Share-based compensation to employees - - - 1,269 1,269 Closing balance 31 March 2025 1,274 816,892 -482 -418,575 399,109 Opening balance 1 January 2024 1,147 635,007 - -360,720 275,434 Profit (loss) for the period - - - -25,148 -25,148 Other comprehensive income for the period - - -184 - -184 Total comprehensive income for the period - - -184 -25,148 -25,332 Transactions with shareholders Share-based compensation to employees - - - 1,709 1,709 Closing balance 31 March 2024 1,147 635,007 -184 -384,159 251,811 7 Interim report first quarter 2025 Condensed cash flow - Group SEK thousand Jan-Mar 2025 Jan-Mar 2024 2024 Cash flow from operating activities Operating profit (loss) -11,289 -29,318 -53,743 Adjustments for non-cash items 1,589 10,347 2,184 Interest paid/received -46 158 -980 Paid income tax -288 -641 -413 Cash flow from operating activities before -10,034 -19,454 -52,952 changes in working capital Cash flow before changes in working capital Increase/decrease of inventories 10,326 -17,050 -26,542 Increase/decrease of current receivables -44,635 51,651 -20,409 Increase/decrease of current liabilities -34,967 23,570 81,333 Total changes in working capital -69,276 58,171 34,382 Cash flow from operating activities -79,310 38,717 -18,570 Cash flow from investing activities Acquisitions of tangible and intangible assets -10,931 -10,318 -46,542 Cash flow from investing activities -10,931 -10,318 -46,542 Cash flow from financing activities Borrowed short-term loans - - 50,000 Repayment of leasing liability -1,856 -1,886 -7,321 Share issue - - 182,012 Cash flow from financing activities -1,856 -1,886 224,691 Decrease/increase of cash and cash -92,097 26,513 159,579 equivalents Opening cash and cash equivalents 237,458 70,809 70,809 Effects of exchange rate changes on cash and -4,589 3,894 7,070 cash equivalents Closing cash and cash equivalents 140,772 101,216 237,458 8 Interim report first quarter 2025 Condensed income statement - Parent Company SEK thousand Note Jan-Mar 2025 Jan-Mar 2024 2024 Net sales 74,110 52,067 334,278 Costs of goods and services sold -46,601 -27,513 -218,107 Gross profit 27,509 24,554 116,171 Selling and administrative costs -28,777 -28,428 -114,314 Research and development costs -38,478 -32,241 -150,555 Other operating income 23,979 6,829 48,818 Other operating costs -4,630 -8,829 -24,606 Operating income before items affecting -20,397 -38,115 -124,486 comparability Items affecting comparability - - 30,000 Operating income -20,397 -38,115 -94,486 Net financial items -4,253 3,572 6,449 Profit (loss) after financial items -24,650 -34,543 -88,037 Income tax 23 64 134 Profit (loss) for the period -24,627 -34,479 -87,903 In the Parent Company there are no items recognised as other comprehensive income, which is why total comprehensive income corresponds to profit (loss) for the period. 9 Interim report first quarter 2025 Condensed balance sheet - Parent Company SEK thousand 2025-03-31 2024-03-31 2024-12-31 ASSETS Non-current assets Intangible assets 5,443 5,389 6,194 Tangible fixed assets 23,251 31,585 25,440 Financial assets 3,623 1,359 1,429 Total non-current assets 32,317 38,333 33,063 Current assets Inventories 133,859 134,008 144,180 Current receivables 215,463 99,934 168,910 Cash and bank balances 137,445 97,255 232,993 Total current assets 486,767 331,197 546,083 TOTAL ASSETS 519,084 369,530 579,146 EQUITY AND LIABILITIES Restricted equity Share capital 1,274 1,147 1,274 Total restricted equity 1,274 1,147 1,274 Non-restricted equity Share premium reserve 737,392 555,507 737,392 Retained loss -383,159 -298,676 -296,525 Profit (loss) for the period -24,627 -34,479 -87,903 Total non-restricted equity 329,606 222,352 352,964 Total equity 330,880 223,499 354,238 Liabilities Non-current liabilities leases - 30,000 - Current liabilities 188,204 116,031 224,908 Total liabilities 188,204 146,031 224,908 TOTAL EQUITY AND LIABILITIES 519,084 369,530 579,146 10

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