Interim Management Statement 1 January-30 September 2023

CEO Dr Martin Edlund:” Minesto has a unique competitiveness in the global energy transition”

Significant events July-September 2023

In September, the manufacturing of the Dragon 12 wing is completed and the system integration is initiated at quayside in Uddevalla port, Sweden. The quayside completion of the kite enables an efficient shipment directly to Minesto’s tidal energy production site in Vestmannasund, Faroe Islands.

Also, the build and functional testing of sea-bed connection system for the Dragon 12 was completed during the quarter. By that, the unique connection system, enabling one of the fastest launch and recovery operation in marine energy by “one-stab” operation, is ready for installation.

The Group in summary 1 January-30 September 2023

Total operating income amounted to SEK 34,791 thousand (33,935 thousand) and mainly included capitalised development work.

Operating loss was SEK –18,735 thousand (–15,822 thousand). The negative result is largely attributable to business develop­ment, and administration related to technology development. Which includes costs such as personnel and consultants. Of the personnel costs, SEK 31,649 thousand (31,715 thousand) has been capitalised as development work.

At the end of the period, capitalised development costs amounted to SEK 435,991 thousand (354,737 thousand), in addition to capi­talised patent expenses of SEK 15,932 thousand (14,795 thousand), all within the intangible assets of SEK 451,924 thousand (369,532 thousand).

Grants of SEK 25,849 thousand (48,913 thousand) were accrued during the period, of which SEK 23,612 thousand (46,821 thou-sand) reduced the acquisition value of the capitalised development costs. During the period, payments of SEK 40,533 thousand (27,146 thousand) were received from public funding schemes, of which the entire amount relates to approved claims.

Cash flow amounted to SEK 24,724 thousand (–83,218 thousand). At the end of the period, cash and cash equivalents amounted to SEK 60,078 thousand (67,852 thousand).

At the end of the period, equity amounted to SEK 533,164 thousand (525,910 thousand) divided into 160,732,694 shares (137,655,143 shares), of which loss for the period was SEK –16,635 thousand (–11,868 thousand).

The Interim Management Statement is available to download at Minesto’s website:

www.minesto.com/investor/investor-information