Crown Energy : Interim ReportJan-Mar

INTERIM REPORT JANUARY-MARCH 2023

FIRST QUARTER - JANUARY-MARCH 2023

• Revenue amounted to SEK 10,685 thousand (7,313).
• Operating loss amounted to SEK -18,511 thousand (-7,682).
• Net financial items amounted to SEK 13,718 thousand (-32,276).
• Unrealised changes in property values amounted to SEK -7,990 thousand (13,536).
• Result before tax amounted to SEK -12,784 thousand (-31,237) and result after tax amounted to SEK -14,054 thousand (-27,043), corresponding to SEK -0,03(-0.06) per share.

EVENTS DURING THE FIRST QUARTER

• On January 10th, 2023 Crown entered a Letter of Intent to acquire 85% of a company group within the Medtech sector.
• On February 3rd, Crown acquired 85% of SmarTee S.a.r.l., the parent holding company of AccYouRate Group which focuses on wearable medical technologies, for a consideration of Euros 163 million of which Euros 75 million was paid upon signing. For more information see note 8.

EVENTS AFTER THE QUARTER

• On April 27th Crown announced receipt of a further $8 million taking the total received amount under the October 2021 Sale and Purchase Agreement to $99 million.
• On April 27th the company stated that AccYouRate has taken a step forward in the production of its 'smart T-shirt' using printed polymetric ink.
• Crown also announced on May 11th that it is withdrawing from the South African Block 2 B Licence and returning its equity to the other joint venture partners.

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Group	JAN-MAR	JAN-MAR	FULL
YEAR
All amounts in SEK thousands	2023	2022	2022
Operating income	10,745	8,595	41,178
Operating expenses	-29,256	-16,277	-242,276
Operating profit/loss	-18,511	-7,682	-201,098
Net financial items	13,718	-32,276	163,555
Net profit/loss for the period. after tax	-14,054	-27,043	-16,229
Earnings per share	-0,03	-0.06	-0,03
Equity per share	2.09	1.39	1,52
Change in cash and cash equivalents	-773,437	4,287	255,260

Q1

CEO statement

DEAR SHAREHOLDERS AND INVESTORS,

We are working hard to implement and build on the major change we have made in the corporate direction of Crown since the start of 2023 and during this year. In January, we signed a Letter of Intent followed, at the beginning of February, by a Share Purchase Agreement whereby we have acquired 85% of SmarTee S.a.r.l., a Luxembourg company which is the parent holding company of the Italian registered AccYouRate Group. The total acquisition price is Euros 163 million of which we have now paid Euros 75 million and with the balance payable in 8 instalments every six months.

The AccYouRate Group focuses on medical grade wearable technologies and holds various patents focused on advanced and cutting-edge technologies. AccYouRate is able to produce wearable textiles, currently in the form of a 'smart T-shirt' enabling monitoring of the wearer's bio signals and transmission of those to the cloud, where a comprehensive biomedical database is hosted.

We see great value in our technology, from the smart garments that can be produced, the health monitoring services that can be provided, the medical information that can be gathered through our algorithmic analyses, the medical predictions that can be extrapolated from that data, and the substantial database of medical information that AccYouRate is building up.

This is a very exciting step forward and a material change of direction for Crown into the rapidly expanding and socially responsible world of medical technologies. We now have established a solid starting point for further execution on our new vision to move Crown into more socially and environmentally sustainable businesses. I am truly proud to report that we now embarked on our journey to transform our company for the benefit of both the planet and our shareholders. Our Board continues to look at various options for Crown's new business and for our remaining existing businesses. We are reviewing our current listing to ensure that Crown, now focusing on investing in high growth technologies, is strategically positioned to grow and create value for our shareholders going forward.

ASSET DEVELOPMENT AND MANAGEMENT

The gentle improvement in the market for office and residential rentals in Angola continues. The higher sustained price of oil as well as the growth in economic activities in the country have been important factors in firming up the market. The strengthening of the Kwanza exchange rate has also been to our benefit.

Although price pressures continue to remain, we still see lower vacancy rates in our properties and expect demand to remain relatively firm given the attractiveness of the locations of these properties.

ENERGY

Our income from the Sale and Purchase Agreement of October 2021 continues to come in regularly. We have now received as of April this year a total of USD $99 million with another $81 million securely due to come in by October 2026.

In May we announced that we have withdrawn from the South African Licence. This ends our active participation in the oil and gas industry. I am confident in the way Crown now operates our current business areas while moving into our new more sustainable business direction, and I am truly looking forward to continuing this journey and to make the most of what the future has to offer.

Please also refer to the AccYouRate Group website for additional information www.en.accyourate.com

Yoav Ben-Eli

CEO, Crown Energy

2 Crown Energy Interim Report January-March 2023

Q1

13

Properties

20 thousand

Leasable area, sqm

Asset Development and

Management business area

THE PROPERTY MARKET AND CURRENCY IN ANGOLA

Angola's real estate market is strongly linked to the oil and gas sector. Some companies are aiming more to reduce long-term commitments. This means that in some circumstances the landlord will offer more flexible contracts; shorter duration or adjustable terms. Alternative concepts to a traditional leasing system, such as business centers, have started to emerge in the market

The Angolan kwanza was stable over the first quarter. The strengthening of the kwanza in recent quarters has had consequences on the reported revenue in Swedish SEK. The graph shows the development of revenue since the First quarter of 2021.

Revenue development Q1 2021-Q3 2023, AOA vs SEK
300%
250%
200%
150%
100%
50%
0%
Q1 2021	Q3 2021	Q1 2022	Q3 2022	Q1 2023
Revenues in SEK, % to Q1 2021		Revenues in SEK, % to Q1 2021

Annual inflation rate in Angola fell to about 10,81 percent in December 2022, which is the lowest inflation rate since seven and a half years. (Source: Banco Nacional de Angola).

SUMMARY OF PROPERTY-RELATED KEY RATIOS

For definitions of key ratios please see pages 20-21.

	ALL AMOUNTS IN SEK THOUSANDS		2023-03-31	2022-12-31
	Revenue backlog, SEK thousand		24,601	33,018
	Rent backlog, SEK thousand		20,208	26,694
	Contracted annual rental and service revenues, SEK thousand		38,594	38,761
	Contracted annual rental revenues, SEK thousand		30,720	30,797
	Area occupancy rate (excl. C-View) %		74%	75%
	Economic occupancy rate (excl. C-View), %		72%	74%
	WAULT rent and service, months		7.9	10.4
	Market value of portfolio (excl. C-View), SEK thousand	216,208	226,471
	Market value C-View, SEK thousand	406,993	411,385

COMMENTS ON PROPERTY-RELATED KEY RATIOS

Changes in the first quarter of 2023

Below is a list of changes in revenue and rent backlog for the first quarter of 2023.

ALL AMOUNTS IN SEK			REVENUE BACKLOG		RENT BACKLOG
THOUSANDS
Backlog at 31 December 2022	33,018		26,694
Changes in the first quarter 2023:
Contracted revenue		-10,172		-8,133
New/extended contracts		2,381	2,154
Contracts terminated early		-292	-235
Exchange rate effects		-333		-271
Backlog at 31 March 2023		24,601		20,208

3 Crown Energy Interim Report January-March 2023

Q1

SEK 24 M

Revenue backlog

7.9 months

74%

Area occupancy rate

Contracted rental value and service value of extended and new contracts amount to SEK 2,154 thousand and SEK 227 thousand, totalling SEK 2,381 thousand. Three contracts were terminated prematurely, which means that the revenue backlog decreased by a total of SEK -292 thousand. In total 89 lease agreements remain. Due to exchange rate effects, the Group's revenue backlog and rent backlog have decreased with SEK -333 thousand and SEK -271 thousand respectively.

The distribution between USD and AOA contracts amounts to 12 and 88 per cent, respectively.

The Company's WAULT has decreased since the third quarter 2022 from 10.4 to 7.9 months. Both the area occupancy rate and economic occupancy rate have been stable since the fourth quarter 2022 respectively at 74 (75) per cent and 72 (74) per cent.

Crown Energy's view is that the Luanda property market is improving and that it is less of "the tenant's market" than it was before. Crown Energy has continued to extend and renew contracts in recent quarters, which has resulted in that the backlog has continued to increase.

4 Crown Energy Interim Report January-March 2023

Q1

70-80 USD/bbl

Oil price in Q1 2023

2

Exploration licences

Energy Business Area

MARKETDuring the first quarter of 2023 we have been seeing an oil price remaining in a range between the USD $70's to $80's and a firm gas price.

EXPLORATION PROJECTS

For South Africa, after the disappointing results of the well last year, Crown waited for further updates on the Licence and technical reports from our Operator, Azinam. On the basis of the information and alalyses provided, Crown has taked the corporate and commercial view that it should withdraw from the Licence. This withdrawl took place in May with Crown's equity being returned to the other Licence partners. Crown has taken a write down on the value of this asset.

The Energy market, in 2023, still remains robust. We have the successful Agreement entered into in October 2021 under which Crown will dispose of (or grant pre-emption rights over), its upstream oil and gas assets excluding the then interest in Block 2 B in South Africa, for a consideration of up to $450 million, before the deduction of transaction costs. This remains a great deal for Crown's shareholders and supports Crown in its new socially respobsible corporate direction..

As stated previously, Crown is progressing positively in its move away from the Energy Industry to greener and more socially responsible projects.

Sustainable investment Area

ACCYOURATE GROUP - THE FIRST INVESTMENT

The business area of Sustainable Investments was formed during 2022 as part of the ongoing transformation of Crown Energy´s business direction. Crown Energy is dedicated to this move into the new and more socially and environmentally responsible business area contributing to a positive change. Our focus will be on the medical technology industry and on improving our green footprint as these are considered lifesaving and great potential markets. Alongside evaluating new sustainable investment opportunities, Crown Energy is working with full strength in line with the long-term goal of making a responsible, and for our shareholders financially beneficial, exit from the oil and gas industry.

In early February 2023 Crown Energy entered into a Share Purchase Agreement for the acquisition of an 85 per cent equity stake in SmarTee S.a.r.l., a Luxembourg company which is the parent holding company of the Italian registered AccYouRate Group.

THE TRANSACTION

The total purchase price of EUR 163 million is payable by Crown Energy to the seller in a total of nine instalments. The first instalment of EUR 75 million was paid upon signing of the SPA and at which time the 85 per cent equity stake in SmarTee was transferred to Crown Energy. The rest of the payments will be made in instalments of EUR 9 million six months after each instalment date. For more information on transaction, see not 8.

AccYouRate currently holds exclusive patents on advanced and cutting-edge technologies in the advanced wearable textiles' technologies market. The intellectual property consists of advanced components, materials, software and accessories invented and developed by AccYouRate's scientific team in collaboration with leading universities in Europe and the United States. The technology, which is validated by medical specialists and certified as a medical device in Europe, allows wearers of the textiles to feel comfortable in their daily business whilst having vital bio signs monitored. These continuously collected medical data are analysed by way of proprietary algorithms that can then be assessed by professionals to monitor any potential health issues with the wearer, even remotely.

5 Crown Energy Interim Report January-March 2023