===== SIDA 1 ===== Interim report first quarter 2024 1 Increased gross margin and strong cash flow January - March 2024 • Net sales SEK 52.1m (50.5), growth of 3% • Gross profit increased 28% to SEK 24.6m (19.1) and the gross margin improved to 47.2% (37.9) • Operating income SEK -29.3m (-26.2) • Income after tax SEK -25.1m (-24.2) • Operating cash flow SEK 38.7m (11.6) • Earnings per share (basic & diluted) SEK -0.66 (-0.45) Significant events during the first quarter • ColGar Energy, part of Vantastec Group, approved PowerCell’s product design and placed an initial order of SEK 35m • HyFlex™ - a flexible container solution – a collaboration together with Hitachi Energy demonstrated at Port of Gothenburg • PowerCell joined the EU project H2Marine to further improve the existing fuel cell platform for marine applications Key performance indicators SEK million, unless other stated Jan-Mar 2024 Jan-Mar 2023 2023 Net sales 52,1 50,5 310,3 Gross profit 24,6 19,1 124,0 Gross margin*, % 47,2 37,9 40,0 Operating income before items affecting comparability -29,3 -26,2 -66,5 Operating income -29,3 -26,2 -72,6 Net income -25,1 -24,2 -63,0 Earnings per share (basic and diluted), SEK -0,66 -0,45 -1,57 Equity asset ratio, % 58,9 64,9 64,8 Operating cash flow 38,7 11,6 -95,7 ===== SIDA 2 ===== Interim report first quarter 2024 2 The CEO’s comments Strong cash flow and growing interest for commercial projects The hydrogen-electric market is developing well and the interest for our emission-free fuel cell systems is increasing. As we gain more OEM customers and integrated installations of our industrialised fuel cell systems, deliveries increase more slowly in the transition phase from the previous project-driven market. In the quarter, we have focused on ramping up for coming serial deliveries and report a net sales increase of 3 percent. At the same time, we report a high gross margin in the first quarter of 47.2 percent (37.9) and high operating cash flow of SEK 38.7 million (11.6). With our leading position in significant market segments, efficient organisational structure and innovative capacity, we can continue growing in the attractive hydrogen market. The hydrogen-electric market is driven by the megatrends of electrification and the transition to emission-free energy. We are in many discussions with customers about commercial applications, as well as in industries where hydrogen-electric solutions have not previously been discussed. In the aviation and marine industries, hydrogen-electric solutions are well- established and PowerCell has established itself as a leader in those sectors. We have recently made commercial progress with for example ColGar Energy which has approved our product design. ColGar Energy will use our VS5 fuel cell system to generate auxiliary power for a ‘Meals on Wheels’ van fleet in Wales and we have received the first serial order worth about SEK 35 million. This deal is a significant step since it means that we are entering a new commercial segment with our emission-free solutions, which opens up new opportunities. Unique flexible container solution A few weeks ago, we announced a strategic partnership with Hitachi Energy, a global technology leader in sustainable energy. Together we have developed HyFlex™, which is a flexible container solution that can be used in a wide range of applications for emission-free power production, independent of the grid. During a demonstration at the Port of Gothenburg, HyFlex™ provided power to an electric excavator from Volvo Construction Equipment. Linde Gas, the world's largest industrial gas company, provided green hydrogen for the production. This shows the power of collaboration in the hydrogen-electric industry and with HyFlex ™ diesel-driven generators can be replaced in many applications, such as construction sites, maritime and port electrification. Established leader in aviation and marine We are proud to have been selected to be part of the EU’s H2Marine project in February this year. Through, for example, our contract with Norwegian SEAM and deliveries to Norwegian ferries, we have shown that we are a key player in enabling fuel cell technology to the marine industry. As part of this EU project, we can further improve our existing fuel cell platform for the marine segment. Our strong position in the aviation industry was confirmed already a year ago when we were selected to be part of the EU Clean Aviation Joint Undertaking to develop environmentally sustainable aviation. As part of the project, a new 300 kW product platform will be developed. Today, PowerCell has over 20 customer projects in various phases within the aviation segment, which proves that we are the leader in this technically very demanding industry. Focus on profitable growth Even though we have a very strong interest in our products and the world urgently needs emission-free energy solutions, our industry is also affected by macroeconomic uncertainty. We note that it may take longer for our customers to come to a decision. Therefore, we focus on what we can control and work for continued effective ramp-up of volumes and good cash flows. By investing in innovation, we continuously strengthen our competitiveness. PowerCell also has an advantage by being efficiently structured and able to reach breakeven at lower volumes than others in our industry. In summary, we have a unique, strong position in a very attractive market and we are determined to continue our growth journey. Richard Berkling CEO ===== SIDA 3 ===== Interim report first quarter 2024 3 Financial performance January – March Net sales Net sales increased 3% in the quarter to SEK 52.1m (50.5), driven by strong growth from customers in the marine industry. Sales of projects, according to percentage of completion, amounted to SEK 28m and represented a major part of the product mix in the quarter. The increased sales of projects relate to higher activity in the projects that include material supply for fuel cell systems for the Norwegian ferries. Royalty fees from Robert Bosch GmbH amounted to SEK 2.8m (1.6). Gross profit and operating income/loss Gross profit increased 28% to SEK 24.6m (19.1) and the gross margin improved 9.3 percentage points to 47.2% (37.9). The increase is to a large extent due to exchange rate effects for projects reported according to percentage of completion. Operating expenses increased 8% to SEK -51.9m (-48.2). Other operating costs amounted to SEK -8.8m (-1.8) and relate mainly to exchange rate effects. Other operating income amounted to SEK 6.9m (4.7) and include exchange rate gains of SEK 2.4m (1.8) and R&D grants of SEK 3.6m (2.7). The majority of R&D grants came from the EU and relate to projects within the aviation industry. Costs related to the EU-granted projects are reported in operating expenses as R&D costs. In addition to the projects granted by the EU and development expenditures that are capitalized, PowerCell runs R&D activities and expenditures that focus on future technical solutions. In the quarter, SEK 9.5m was capitalised as development expenditures. The majority of the capitalised expenditures are related to the development of the new PS200 system and a minor part is related to the development of a 5 kW system. Operating income before and after items affecting comparability amounted to SEK -29.3m (-26.2). Net income and financial items Net financial items amounted to SEK 4.1m (2.0) and were mainly related to revaluation effects in bank accounts denominated in foreign currency, primarily EUR. Net income in the quarter was SEK -25.1m (-24.2). 47.2% Gross margin January - March 2024 ===== SIDA 4 ===== Interim report first quarter 2024 4 Cash flow Operating cash flow improved to SEK 38.7m (11.6) and total cash flow increased to SEK 26.5m (8.4) due to improved working capital. Cash flow from investing activities is affected by product development capitalisation. In the quarter, SEK 9.5m was capitalised as intangible assets. Financial position PowerCell’s financial position and liquidity are satisfactory. Cash and cash equivalents amounted to SEK 101.2m on March 31, 2024. ===== SIDA 5 ===== Interim report first quarter 2024 5 Other information Employees On March 31, 2024, the Group had 149 (127) employees measured as full-time equivalents, FTE. The share The share is listed on Nasdaq Stockholm under the ticker PCELL. On March 31, 2024, the total number of outstanding shares was 52,142,434. PowerCell holds no treasury shares. Ten largest owners March 31, 2024 Name Number of shares Votes and capital Robert Bosch Group 5,848,531 11.22% Norges Bank 1,819,264 3.49% Avanza Pension 1,216,524 2.33% Green Benefit AG 976,977 1.87% Legal & General 712,345 1.37% Global X Management Company LLC 590,949 1.13% Swedbank Robur Funds 481,130 0.92% Invesco 459,223 0.88% Almundi 458,920 0.88% VanEck 375,285 0.72% Total ten largest owners 12,939,148 24.81% Other 39,203,286 75.19% Total 52,142,434 100.00% Source: Modular Finance AB. Compiled and processed data from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen). Risks and uncertainties Through its operations, PowerCell is exposed to risks and uncertainties. For extensive information on the most significant operational and financial risks, please see pages 68-69 and pages 78-79 in the Annual Report for 2023. PowerCell’s underlying markets are driven by the strong megatrend of electrification and society’s need to transition to emission-free energy. However, severe declines in economic activity can have an impact on the timing of customers’ investment decisions. The curre nt macroeconomic situation is pushing inflation higher, which PowerCell can mitigate through contractual price compensation clauses. Parent Company The main part of the Group’s activity is carried out in the Parent Company PowerCell Sweden AB. Out of 149 employees, 147 are employed by the Parent Company. The Parent Company’s revenue amounted to SEK 52.1m (50.5m) in the first quarter. Operating income before and after items affecting comparability for the quarter amounted to SEK -38.1m (-25.9). ===== SIDA 6 ===== Interim report first quarter 2024 6 Assurance of the Board of Directors The Board of Directors and the CEO warrant that this interim report for PowerCell Sweden AB (publ), Corp. Id. No 556759-8353, provides a true and fair picture of the Parent Company’s and the Group’s operations, financial position and results, and describes the significant risks and uncertainties of the parent company and the companies included in the Group. Gothenburg, April 25, 2024 Magnus Jonsson Nicolas Boutin Helen Fasth Gillstedt Chairman Director Director Riku-Pekka Hägg Karin Ryttberg-Wallgren Uwe Hillmann Director Director Director Annette Malm Justad Richard Berkling Director CEO This report has not been reviewed by the Company’s auditor. ===== SIDA 7 ===== Interim report first quarter 2024 7 Condensed income statement - Group SEK thousand Note Jan-Mar 2024 Jan-Mar 2023 2023 Net sales 3 52 067 50 521 310 287 Costs of goods and services sold -27 513 -31 391 -186 275 Gross profit 24 554 19 130 124 012 Selling and administrative costs 4 -29 094 -25 998 -105 796 Research and development costs -22 824 -22 240 -114 498 Other operating income 7 6 859 4 701 55 036 Other operating costs 8 -8 813 -1 763 -25 272 Operating income before items affecting comparability -29 318 -26 170 -66 518 Items affecting comparability 6 - -6 057 Operating income -29 318 -26 170 -72 575 Net financial items 4 067 1 998 9 620 Profit (loss) after financial items -25 251 -24 172 -62 955 Income tax 103 6 -5 Profit (loss) for the period -25 148 -24 166 -62 960 Other comprehensive income: Items that may be reclassified to profit or loss Exchange differences from foreign operations -184 8 234 Other comprehensive income for the period -184 8 234 Total comprehensive income for the period -25 332 -24 158 -62 726 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 2024 Jan-Mar 2023 2023 Earnings per share, basic 5 -0,66 -0,45 -1,57 Earnings per share, diluted 5 -0,66 -0,45 -1,57 ===== SIDA 8 ===== Interim report first quarter 2024 8 Condensed balance sheet - Group SEK thousand 2024-03-31 2023-03-31 2023-12-31 ASSETS Non-current assets Intangible assets 31 371 7 662 22 485 Right of use assets (leasing) 32 170 35 872 31 838 Tangible fixed assets 31 586 32 983 33 377 Deferred tax assets 344 210 279 Total non-current assets 95 471 76 727 87 979 Current assets Inventories 134 008 94 094 116 985 Current receivables 96 781 100 394 149 341 Cash and cash equivalents 101 216 207 155 70 809 Total current assets 332 005 401 643 337 135 TOTAL ASSETS 427 476 478 370 425 114 EQUITY AND LIABILITIES Equity attributable to Parent Company shareholders Share capital 1 147 1 147 1 147 Other contributed capital 635 007 635 007 635 007 Reserves -184 -226 - Retained earnings (including profit (loss) for the year) -384 159 -325 302 -360 720 Total equity attributable to Parent Company shareholders 251 811 310 626 275 434 LIABILITIES Non-current liabilities leases 21 852 25 155 21 521 Non-current liabilities 30 572 30 575 30 611 Current liabilities leases 6 952 7 215 6 614 Current liabilities 116 289 104 799 90 934 Total liabilities 175 665 167 744 149 680 TOTAL EQUITY AND LIABILITIES 427 476 478 370 425 114 ===== SIDA 9 ===== Interim report first quarter 2024 9 Condensed statement of changes in equity - Group Attributable to shareholders of the Parent Company SEK thousand Note Share capital Other contributed capital Reserves Retained earnings incl. profit (loss) for the year Total equity 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 - -384 159 251 811 Opening balance 1 January 2023 1 147 635 007 -234 -303 046 332 874 Profit (loss) for the period - - - -24 166 -24 166 Other comprehensive income for the period - - 8 - 8 Total comprehensive income for the period - - 8 -24 166 -24 158 Transactions with shareholders Share-based compensation to employees - - - 1 910 1 910 Closing balance 31 March 2023 1 147 635 007 -226 -325 302 310 626 ===== SIDA 10 ===== Interim report first quarter 2024 10 Condensed cash flow - Group SEK thousand Note Jan-Mar 2024 Jan-Mar 2023 2023 Cash flow from operating activities Operating profit (loss) -29 318 -26 170 -72 574 Adjustments for non-cash items 10 347 7 780 22 354 Interest received 158 -223 3 005 Paid income tax -641 -696 -78 Cash flow from operating activities before changes in working capital -19 454 -19 309 -47 293 Cash flow before changes in working capital Increase/decrease of inventories -17 050 -18 204 -34 195 Increase/decrease of current receivables 51 651 23 539 -25 740 Increase/decrease of current liabilities 23 570 25 596 11 541 Total changes in working capital 58 171 30 931 -48 394 Cash flow from operating activities 38 717 11 622 -95 687 Cash flow from investing activities Acquisitions of tangible and intangible assets -10 318 -1 067 -28 170 Change in financial assets - - 0 Cash flow from investing activities -10 318 -1 067 -28 170 Cash flow from financing activities Repayment of leasing liability -1 886 -2 136 -8 780 Cash flow from financing activities -1 886 -2 136 -8 780 Decrease/increase of cash and cash equivalents 26 513 8 419 -132 637 Opening cash and cash equivalents 70 809 196 857 196 857 Effects of exchange rate changes on cash and cash equivalents 3 894 1 879 6 589 Closing cash and cash equivalents 101 216 207 155 70 809 ===== SIDA 11 ===== Interim report first quarter 2024 11 Condensed income statement – Parent Company SEK thousand Note Jan-Mar 2024 Jan-Mar 2023 2023 Net sales 52 067 50 521 310 287 Costs of goods and services sold -27 513 -31 391 -186 274 Gross profit 24 554 19 130 124 013 Selling and administrative costs -28 428 -25 511 -102 806 Research and development costs -32 241 -22 450 -131 751 Other operating income 6 829 4 700 54 987 Other operating costs -8 829 -1 734 -24 911 Operating income after items affecting comparability -38 115 -25 865 -80 468 Items affecting comparability - - -6 057 Operating income -38 115 -25 865 -86 525 Net financial items 3 572 2 227 4 333 Profit (loss) after financial items -34 543 -23 638 -82 192 Income tax 64 23 93 Profit (loss) for the period -34 479 -23 615 -82 099 In the Parent Company there are no items recognized as other comprehensive income, which is why total comprehensive income corresponds to profit (loss) for the year. ===== SIDA 12 ===== Interim report first quarter 2024 12 Condensed balance sheet – Parent Company SEK thousand 2024-03-31 2023-03-31 2023-12-31 ASSETS Non-current assets Intangible assets 5 389 7 662 5 996 Tangible fixed assets 31 585 32 982 33 376 Financial assets 1 359 2 100 1 294 Total non-current assets 38 333 42 744 40 666 Current assets Inventories 134 008 94 094 116 985 Current receivables 99 934 105 522 150 438 Cash and bank balances 97 255 203 512 67 978 Total current assets 331 197 403 128 335 401 TOTAL ASSETS 369 530 445 872 376 067 EQUITY AND LIABILITIES Restricted equity Share capital 1 147 1 147 1 147 Total restricted equity 1 147 1 147 1 147 Non-restricted equity Share premium reserve 555 507 555 507 555 507 Retained loss -298 676 -221 661 -218 285 Profit (loss) for the period -34 479 -23 615 -82 099 Total non-restricted equity 222 352 310 231 255 123 Total equity 223 499 311 378 256 270 LIABILITIES Non-current liabilities 30 000 30 000 30 000 Current liabilities 116 031 104 494 89 797 Total liabilities 146 031 134 494 119 797 TOTAL EQUITY AND LIABILITIES 369 530 445 872 376 067 ===== SIDA 13 ===== Interim report first quarter 2024 13 Notes to the consolidated statements 1. General PowerCell Sweden AB (publ) (PowerCell), Corp. Id. No 556759 -8353, is a Parent Company registered in Sweden and domiciled in Gothenburg, with address Ruskvädersgatan 12, 418 34 Gothenburg, Sweden. The Board has approved this interim consolidated financial statement for publication on April 25, 2024. All amounts are stated in SEK thousand unless stated otherwise. Amounts in brackets refer to the comparative year. 2. Accounting policies PowerCell applies IFRS as endorsed by the EU. The accounting policies and definitions adopted are consistent with those described in PowerCell’s Annual Report 2023. This Interim financial statement has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The Parent Company applies RFR 2 Accounting for legal entities and the Swedish Annual Accounts Act. 3. Net sales Revenue from contracts with customers Sales are reported as revenue when control of the goods is transferred to the customer, which normally coincides with its delivery. Revenue from contracts with customers SEK thousand Jan-Mar 2024 Jan-Mar 2023 2023 Hardware 14 963 21 535 92 267 Services 6 426 16 802 65 499 Royalty fees 2 801 1 606 18 993 Projects according to percentage of completion 27 877 10 578 133 528 Total 52 067 50 521 310 287 Revenue from contracts with customers per country, based on where customers are located Sweden 304 515 6 111 Germany 7 490 8 725 55 876 Great Britain 2 109 16 399 83 694 Netherlands 3 814 5 155 12 697 US 2 993 16 873 38 514 Norway 20 900 - 93 687 Other 14 457 2 854 19 708 Total 52 067 50 521 310 287 ===== SIDA 14 ===== Interim report first quarter 2024 14 4. Related party transactions No significant transactions with related parties have taken place in the period. 5. Earnings per share SEK Jan-Mar 2024 Jan-Mar 2023 2023 Earnings per share, basic -0,66 -0,45 -1,57 Earnings per share, diluted -0,66 -0,45 -1,57 Performance measures used in the calculation of earnings per share Profit/loss attributable to the shareholders of the Parent Company used in the calculation of earnings per share, basic and diluted Profit (loss) attributable to Parent Company shareholders, thousand SEK -34 479 -23 615 -82 099 Number Weighted average number of ordinary shares at the calculation of earnings per share, basic 52 142 434 52 142 434 52 142 434 Adjustment for the calculation of earnings per share, diluted 52 142 434 52 142 434 52 142 434 6. Items affecting comparability Thousand SEK Jan-Mar 2024 Jan-Mar 2023 2023 Costs related to listing on Nasdaq Stockholm - - -6 057 Total - - -6 057 7. Other operating income Thousand SEK Jan-Mar 2024 Jan-Mar 2023 2023 Currency exchange gains 2 443 1 811 23 908 Grants 3 583 2 746 30 607 Other 833 144 521 Total 6 859 4 701 55 036 The majority of the R&D grants come from the EU and relate to projects within the aviation and heavy- duty truck segments. Costs related to the EU-granted projects are to be found in operating expenses as R&D costs. ===== SIDA 15 ===== Interim report first quarter 2024 15 8. Other operating cost Thousand SEK Jan-Mar 2024 Jan-Mar 2023 2023 Currency exchange losses -8 813 -1 763 -25 106 Other - - -166 Total -8 813 -1 763 -25 272 9. Significant events after the end of the reporting period No significant events have occurred after the end of the period. Definition of key financial indicators In this financial report, there are references to several performance measures. Some of the measures are defined in IFRS, others are alternative performance measures and are not disclosed in accordance with applicable financial reporting frameworks or other legislations. The performance measures are used by the Group to assist both investors and management in analyzing Power Cell´s business. Below the performance measures found in this financial report are described and defined. The reason for the use of the performance measure is also disclosed. Equity/assets ratio, % Equity in relation to total assets. The ratio can help investors understand how much of the company’s assets are funded by issuing stock rather than borrowing money and may indicate how financially stable the company may be in the long run. Earnings per share Net income is divided by the weighted average number of outstanding shares. Gross margin, % Net revenue less cost of goods sold through net revenue. Gross margin may help investors in understanding how much revenue the company retains which can be used to pay other costs. Net sales rolling twelve-month Net sales for a period that is determined monthly and consists of the previous twelve consecutive calendar months. Net sales rolling twelve months can give investors an understanding of the company’s sales development on a more current basis than the previous financial year. ===== SIDA 16 ===== Interim report first quarter 2024 16 Financial calendar Interim report Q2 July 18, 2024 Interim report Q3 October 17, 2024 Interim report Q4 and year-end report 2024, February 13, 2025 Webcast presentation PowerCell’s first quarter 2024 will be published on Thursday 25 April at 07:30 am CEST. An online presentation will take place the same day at 08:30 am CEST. The presentation can be listened to online or by calling in. The presentation will be followed by a question-and-answer session. The presentation is held in English. If you wish to participate online, please use the link https://ir.financialhearings.com/powercell-q1- report-2024. You can ask questions in writing at the online presentation. If you wish to participate in the telephone conference, you can register using the link https://conference.financialhearings.com/teleconference/?id=5005470 . Following registration, you will receive telephone numbers and a conference ID to log in to the conference. You can ask questions verbally at the telephone conference. Contact details: CEO Richard Berkling CFO Torbjörn Gustafsson +46 (0) 31 7203620 +46 (0) 70 1866986 richard.berkling@powercellgroup.com torbjorn.gustafsson@powercellgroup.com This information constitutes information that PowerCell Sweden AB (publ) is obliged to make public according to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out below, at 07:30 am CEST on April 25, 2024. Every care has been taken in the translation of this interim report. In the event of discrepancies, the Swedish original will supersede the English translation. The addition of the totals presented may result in minor rounding differences. About PowerCell PowerCell is a world leader in hydrogen electric solutions with unique fuel cell stacks and systems. With decades of experience, we use our expertise to accelerate the transition to an emission-free, more sustainable world. We target industries such as aviation, marine, off -road, on-road and stationary power generation. With our cutting-edge products, we help our customers to reach net zero emissions already today. We are headquartered in Gothenburg, Sweden with sales globally. PowerCell is listed on Nasdaq Stockholm. To read more about our products and services, visit powercellgroup.com. PowerCell Sweden AB (publ) Corp. Reg. No. 556759-8353 Ruskvädersgatan 12 SE-418 34 Göteborg Tel: +46 (0) 31 720 36 20 powercellgroup.com