Fourth quarter and full year report 2021

Fourth quarter, October-December 2021 (last year's figures in brackets)

  • Net sales amounted to 56,791 (38,150) thousand SEK
  • Operating income amounted to -23,869(-29,543) thousand SEK
  • Income after tax amounted to -23,285(-50,324) thousand SEK
  • Operating cash flow amounted to -20,766(-33,826) thousand SEK
  • Diluted earnings per share amounted to neg (neg) SEK

Accumulated, January-December 2021 (last year's figures in brackets)

  • Net sales amounted to 159,757 (103,528) thousand SEK
  • Operating income, before items affecting comparability, amounted to -80,475(-97,749) thousand SEK
  • Operating income amounted to -81,731(-103,386) thousand SEK
  • Income after tax amounted to -75,084(-116,622) thousand SEK
  • Operating cash flow amounted to -66,338(-3,863) thousand SEK
  • Diluted earnings per share amounted to neg (neg) SEK
  • The board proposes that no dividend will be paid for the fiscal year 2021 .

Financial highlights

Thousand SEK

Oct-Dec 2021

Oct-Dec 2020

Jan-Dec 2021

Jan-Dec 2020

Net sales

56,791

38,150

159,757

103,528

Operating income before

items affecting

comparability

-23,869

-29,543

-80,475

-97,749

Operating income

-23,869

-29,543

-81,731

-103,386

Income after tax

-23,285

-50,324

-75,084

-116,622

Basic and diluted earnings

per share, SEK

Neg

Neg

Neg

Neg

Net debt/equity ratio, %

73,6%

81,0%

73,6%

81,0%

Operating cash flow

-20,766

-33,826

-66,338

-3,863

Definitions, please see page 16.

PowerCell Sweden AB (publ) Org.nr 556759-8353 Ruskvädersgatan 12

418 34 Göteborg

Tel: +46 (0) 31 720 36 20 www.powercell.se

2

Important events during the fourth quarter, October- December 2021

  • PowerCell to launch new business area to facilitate customers' transition to hydrogen- electric solutions
  • PowerCell receives order for a fuel cell system valued at MSEK 7 from German company H2FLY
  • PowerCell to invest in solar cells and electrolyzers to create industrial testbed and own hydrogen production
  • PowerCell delivers the largest serial produced order in PowerCell's history in the form of 12 PS-100 fuel cell systems

Important events after period-end

  • PowerCell joins European development project on fuel cell technology of the future

PowerCell Sweden AB (publ) Org.nr 556759-8353 Ruskvädersgatan 12

418 34 Göteborg

Tel: +46 (0) 31 720 36 20 www.powercell.se

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CEO's comments

Strong sales growth with significant improvement in operating income

PowerCell Sweden reports total sales of MSEK 56.8 for the fourth quarter of 2021, an increase of 49% year-over-year and a new sales record for an individual quarter. The increase in sales and improved gross margin also mean that we can report an improved operating income of MSEK -23.9 compared with MSEK -29.5 in 2020.

During the fourth quarter of 2021, demand remained favorable with large-scale deliveries to the emerging hydrogen-electric aviation industry, to which we delivered the largest serial produced order in PowerCell's history in the form of 12 PS-100 fuel cell systems. During the quarter, we continued to scale up our systems production in order to capitalize on the growth that we currently see in the market. In accordance with what we anticipated previously this year, growth is increasing to such extent that sales to Robert Bosch GmbH have declined as a percentage of total sales, from 60% for full-year 2020 to 19% in the fourth quarter of 2021.

Operating income before items affecting comparability was MSEK -23.9(-29.5) for the fourth quarter. The improved operating income was mainly due to increased sales and a better gross margin. Despite the fact that the sharp increase in sales resulted in higher accounts receivable, the operating cash flow for the period was stronger year-over-year at MSEK -20.8 compared with MSEK -33.8 a year earlier.

For the full year 2021, we noted a growth of 54%, with the second half being particularly strong. It is important for PowerCell to demonstrate that we can leverage growth and achieve economy of scale effects when growing sales. To grow sales while at the same time increase costs and losses is otherwise a fate that is commonplace for technology-intensive,fast-growing companies that are active in emerging markets in connection with technology shifts. We have talked a lot about the need to accelerate our growth at the same time as we strengthen our abilities in order to improve margins, industrial stability and productivity. Operating income for the fourth quarter follows the trend seen in the previous quarter, confirming the progress in our internal ability to balance growth with productivity. During the quarter, we also received royalty revenues for the first time, as a result of our licensing agreement with Robert Bosch GmbH regarding the S3 for the automotive segment. In this context, it's important to note that we have no possibility to assess how often these payments will take place in the future or how large they will be.

PowerCell is transitioning from being a promising technology company to becoming one of the players that can sustainably generate value in the emerging hydrogen-electric economy. Through a lot of hard work by our fantastic people and by challenging ourselves, we succeeded in 2021 to improve our industrial stability and to increase our internal productivity in both production and technological development, at the same time as we enhanced the product offering in our core segments. Accordingly, we are ready for a continued journey of growth, where the challenge and the opportunity are that the market demands shorter cycles from order to delivery - because both maturity and expertise in the market are increasing at an ever faster pace.

Richard Berkling

CEO, PowerCell Sweden AB

PowerCell Sweden AB (publ) Org.nr 556759-8353 Ruskvädersgatan 12

418 34 Göteborg

Tel: +46 (0) 31 720 36 20 www.powercell.se

4

Income and financial position

THE GROUP

Total sales and results for the fourth quarter 2021

Sales for the period October to December 2021 amounted to 56,791 (38,150) thousand SEK. Although sales to Robert Bosch GmbH continues to be good, it is the increased sales of fuel cell systems to other segment which explains the sharp increase in total sales. Other operating income for the period, which mainly consists of grants, amounted to 7,483 (2,053) thousand SEK. Also included under other income is a 520 thousand SEK royalty payment from Robert Bosch GmbH, which constitutes the first royalty payment following the licensing agreement regarding the S3 stack for the automotive segment.

Operating income before and after items affecting comparability amounted to -23,869(-29,543) thousand SEK for the period October to December 2021. The improvement in operating income both before and after items affecting comparability is mainly attributable to higher sales and improved gross margin. The improvement in gross margin is explained by the fact that for the second quarter in a row, the company continued to improve productivity in the production. In this context, it should also be noted that gross margin improved despite a reservation for inventory obsolescence of 9,118 thousand SEK linked to components for the S2 stack. The improvement in financial net is mainly attributable to a re-evaluation of bank assets in Euro at period-end. The currency effects related to the re-evaluation of the Bosch payment on a Euro account amounted to 587 thousand SEK during the quarter.

Total sales and results accumulated January - December 2021

Sales for the period January to December 2021 amounted to 159,757 (103,528) thousand SEK. While sales of fuel cell stacks to Robert Bosch GmbH remained healthy, it is above all sales to other product segments which is behind the sharp increase in total sales. Sales to the aviation segment has been particularly strong during the year. Operating income before items affecting comparability for the January-December 2021 period amounted to -80,475(-97,749) thousand SEK.

Operating income after items affecting comparability for the January-December 2021 period amounted to -81,731(-103,386) thousand SEK. Items affecting comparability comprised of expenses related to the launch of the new product brand PowerCellution. The improved operating income both before and after items affecting comparability was due to increased sales and an improved gross margin.

Liquidity and cash flow for the fourth quarter 2021

The operating cash flow for the period amounted to -20,766 thousand SEK compared to -33,826 thousand SEK for the same period last year. The increase in sales led to an increase in accounts receivable but the cash flow for the period is nevertheless stronger than that for the same quarter last year.

The Group's financial position and liquidity are satisfactory. Cash and cash equivalents at December 31, 2021 amounted to 332,507 thousand SEK.

Investments for the fourth quarter 2021

Total investments of -3,534(-4,403) thousand SEK, of which tangible fixed assets -3,280(-4,113) thousand SEK.

PowerCell Sweden AB (publ) Org.nr 556759-8353 Ruskvädersgatan 12

418 34 Göteborg

Tel: +46 (0) 31 720 36 20 www.powercell.se

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Powercell Sweden AB published this content on 11 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 February 2022 07:47:05 UTC.