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NO. 1 CLIMATE SOLVER 1
INVESTOR UPDATE Q1 2019May 9, 2019
NO. 1 CLIMATE SOLVER 2
TURNING HOT WATER INTO ELECTRICITY
THE COMPANY THE PRODUCT
Climeon, founded 2011, is a clean tech company striving to become the world’s #1
climate solver through smart business.
The Climeon Heat Power module is a flexible and modular unit that converts heat into
profitable green electricity.
Providing renewable baseload energy that is cheaper than any other energy source has the
ability to revolutionize the entire energy industry. This is the reality of Climeon’s Heat Power
system and is made possible through a revolutionary low cost technology.
NO. 1 CLIMATE SOLVER 3
TODAY’S PRESENTERS
CFO & Deputy CEOChristoffer holds a MSc in Computer Science and has global leadership experience from Silicon Valley to India. After senior executive roles at Ericsson and global assignments for start-ups, he led TargetEveryOne through a turn-around, acquisitions and IPO.
CHRISTOFFER ANDERSSONFounder, Board member & CEOThomas holds a MSc in Computer & Control Engineering and started his career at SAAB Aerospace. He then served +10 years as VP of technology development at Micronic Laser Systems AB.
THOMAS ÖSTRÖM
FIND CLIMEON:
CONTACT:
CHARLOTTE BECKERHead of Investor Relations & PR
+46 730 37 07 07
@climeon
www.climeon.com
facebook.se/climeon
NO. 1 CLIMATE SOLVER 4
FIRST QUARTER 2019 IN BRIEF
Operating profit/loss improved to SEK -16.9 million (-20.1)
Net sales increased to SEK 22.5 million (0.0)
Climeon enters collaboration with Breakthrough Energy Ventures
Climeon’s first geothermal site approved by the customer
Order backlog amounted to SEK 799.3 million (404.3)
Directed new share issue raising SEK 249 million
POST-CLOSING
NO. 1 CLIMATE SOLVER 5
HEAT POWER – TWO MASSIVE SOURCES OF ENERGY
70%
60%
>50%
Of global energy consumptionis wasted heat1
Source: (1) C. Forman et. al., Estimating the global waste heat potential, December 2015.
Transportation
Industrial
WASTE HEAT RECOVERYGEOTHERMAL HEAT
Potential low temp. heat sources
Potential high temp. heat sources
The planetary resources exceed total global demand
NO. 1 CLIMATE SOLVER 6
CONVERTING HOT WATER TO ELECTRICITY - GOING FROM BROWN TO GREEN
• Compact footprint, 43 sq. ft (4m2) per module
• No toxic fluids• Market leading efficiency• List price SEK 3,400,000/module
Heat sourcetypically 70-120°C
Cold sourcetypically 0-30°C
150 kWtypical net output
• Scalable to 50 MW and beyond• Serial and parallel setup• High uptime and redundancy
due to modularity
NO. 1 CLIMATE SOLVER 7
CLEAN ENERGY DISRUPTOR FOR BANKABLE BASELOAD POWERThe value of a bankable and modular product is evident in every deal
2m 2mModular & standardized system
Significant volume production benefits
Clear financing advantages
NO. 1 CLIMATE SOLVER 8
30 liters
30 liters
FLEXIBLE CONNECTIVITY LOWERS RISK AND INCREASES OPPORTUNITYModular and standardized system gives significant volume production benefits and clear financing advantages
Serial and Parallel 90 l/s
Heat source
30 liters120○ 110○ 100○ 90○ 80○ 70○
120○ 110○ 100○ 90○ 80○ 70○
120○ 110○ 100○ 90○ 80○ 70○
2,100 kW power plant
Serial120○ 110○ 100○ 90○ 80○ 70○
Easy to by-pass one or several modules should they need maintenance
700 kW power plant
Modules connected in series
Modules connected in parallel and series
30 l/sHeat source
NO. 1 CLIMATE SOLVER 9
MARKET UPDATE SUMMARYSEK 799.3 million backlog, 34 systems delivered
MARITIME – 7 GW TARGET MARKET• Preparation work made
onboard Virgin Voyages’ ships• Maersk still awaiting
certification approval• Repeat order from
Fincantieri/Virgin Voyages after the first quarter
INDUSTRIAL (STEEL) – 5 GW TARGET MARKET• No new updates, continued
focus on steel
GEOTHERMAL – 110 GW TARGET MARKET• Varmaorka’s first geothermal site
approved, long-term testing on-going
• First deliveries made to Japan (4)• Lead times affected by customers’
site-readiness
NO. 1 CLIMATE SOLVER 10
CONTINUED FOCUS ON ICELAND AND JAPANKey factors: electricity price, access to heat, energy situation - 31,2 GW direct potential in current focus countries
USA• 9.9 GW potential• World’s largest in geothermal• Strong need for baseload power• Shallow to medium depth geo resources
Canada• 6.9 GW potential• No existing geothermal power• Progressive geothermal sector• Shallow to medium depth geo resources
Iceland• 2.3 GW potential• Low electricity prices• Plenty of energy consuming industries• Shallow depth geo resources
Germany and Central Europe• >1.2 GW potential• High electricity prices• Strong geothermal support• Medium depth geo resources
Japan• 10.9 GW potential• Worlds highest feed in Tariffs• 90% imported energy• Shallow depth geo resources
NO. 1 CLIMATE SOLVER 11
VIRGIN VOYAGES AND FINCANTIERI PROGRESSION
• Deliveries made to first and second ship (6+6 modules) in Q4 2017 and Q4 2018
• Deliveries to third ship planned in 2019
• New order for the fourth ship made in April 2019, worth SEK 15 million
Work on Fincantieri/Virgin Voygages’ first three ships on-going in the first quarter 2019
NO. 1 CLIMATE SOLVER 12
IMPORTANT BUILDING BLOCKS IN PLACE DURING THE FIRST QUARTER
Strong collaboration in placeFinancial partner acceleratingFirst geothermal site accepted
• Collaboration withBreakthrough Energy Ventures focused on market establishment and technology development
• Breakthrough Energy Ventures invests USD 12.5 million in Baseload Capital
• Baseload Capital issuesgreen bond of SEK 500 million
• First geothermal site accepted by customer
• Production ready for increased volumes
• Organization prepared for global expansion
NO. 1 CLIMATE SOLVER 13
Market establishment in chosen focus markets
Accelerating the path towards the long-term target of 50 percentgross margin and lowering the
costs for customers
Future opportunities and risk mitigation buffer
DIRECTED NEW SHARE ISSUE RAISING SEK 249 MILLIONCarried out in April 2019, adding well-renowned institutional investors in the Nordics, Germany, UK and US
USE OF PROCEEDS
NO. 1 CLIMATE SOLVER 14
GEOTHERMAL HEAT POWER OPERATORS - FINANCIAL SETUP
Sales contract
Heat Power operator
CLIMEON
Power purchaser
PPA
Equity Local Equity Sponsorif applicable
Baseload Capital
EQUITY
A profitable ecosystem for all
SEK EKN
Credit insurance
Export Credit Project Finance Bank
OPTION 1
OPTION 2
Baseload Capital
Bonds
Pref. Shares
CF from operations
Promissory note
SEK = Swedish Export Credit CorporationEKN= Swedish Export Credit Agency
NO. 1 CLIMATE SOLVER 15
TEST SITE FULLY OPERATIONALVolume production at Mastec with test site in Kista, increasing capacity
• Improved capacity to test modules before delivery
• Enables quick verification of updates for R&D team
NO. 1 CLIMATE SOLVER 16
FINANCIAL HIGHLIGHTS Q1 2019
SEK, million Jan - Mar 2019 Jan - Mar 2018 Jan – Dec 2018Order intake - 51.5 478.5Order backlog 799.3 404.3 818.6Net sales 22.5 0.0 58.9Total operating expenses -43.5 -25.0 -181.0Profit / loss for the period -7.3 -20.5 -85.5
Cash flow from operating activities before changes in working capital -15.0 -17.8 -84.0
Cash flow from operating activities -22.0 -16.4 -89.2
Cash and cash equivalents at the end of the period 71.9 204.0 90.0
Balance sheet turnover 270.4 256.3 258.9
• Increased net sales and decreased loss attributable to:• Deliveries to customers within geothermal heat power in Japan• Baseload Capital’s increased valuation of SEK 48.1 million (19.9)
Summary
NO. 1 CLIMATE SOLVER 17
ORDER INTAKE AND ORDER BACKLOG Q1Order intake SEK 0.0 million (51.5), Order backlog SEK 799.3 million (404.3)
52
322
39 400
0
100
200
300
400
500
600
700
800
900
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
SEK, millionOrder intake Order backlog
1% 2%
97%
Order backlog per segment
Industrial Maritime Geothermal
NO. 1 CLIMATE SOLVER 18
ATTRACTIVE AND SIMPLE BUSINESS CASE FOR CLIMEONRevenue model
Payment terms:- 40% at order- 30% at production start- 20% at delivery and - 10 % at launch of operations
Recurring revenue: - Climeon Live™ software, 5 000 EUR/m/y- Initiated at delivery.
- Support services 2 000—12 000 EUR/m/y.- Iniated at launch of operations & annualized
over time
Order
6-9 months
2- 9 months
12 months
Installation and site preparation
Production and delivery of Heat Power-modules
Launch of operations
Service/license revenues
1 month
Revenue recognition(90-95% of the order value)
Revenue recognition (5-10% of the order value)
Revenue recognition annually (Live & support)
Annually
NO. 1 CLIMATE SOLVER 19
Prioritize certain segments & geographies
Offer lowest possible LCOE
Continue building a scalable organization
Offer customer financing solutions through partners
Become the industry standard
FOCUSED GROWTH STRATEGYGrowth through a superior offering and scalable organization
NO. 1 CLIMATE SOLVER 20
✓ DISRUPTIVE PRODUCT
✓ UNLIMITED MARKET
✓ THE TEAM TO DO IT
#1 CLIMATE SOLVER
NO. 1 CLIMATE SOLVER 21
THANK YOU!Check out more at www.climeon.com
