Kvartalsrapport Q3 2024

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===== SIDA 1 =====

Interim report third quarter 2024  
 
 1 
Solid performance and important Italian marine OEM-order signed in the quarter July - September 2024 January – September 2024 • Net sales SEK 71.9m (69.9), an increase of 3% compared to same quarter previous year  • Net sales SEK 190.2m (182.8), an increase of 4%  compared to previous year • Gross profit decreased to SEK 23.1m (36.1) with a gross margin of 32.1% (51.6)  • Operating income before items affecting comparability SEK -15.7m (-6.5)  • Items affecting comparability amounted to SEK 0m  
• Gross profit decreased to SEK 58.6m (77.0)  with a gross margin of 30.8% (42.1)  • Operating income before items affecting  comparability SEK -84.4m (-64.4)  • Items affecting comparability amounted to SEK +30m and relates to a government loan converted to grant  • Operating income SEK -15.7m (-6.5)  • Operating income SEK -54.4m (-64.4)  • Income after tax SEK -15.9m (-6.6) • Income after tax SEK -49.6m (-53.0) • Operating cash flow SEK -7.4m (-51.9) • Operating cash flow SEK -19.3m (-47.0) • Earnings per share (basic and diluted) SEK -0.46  (-0.22)  • Earnings per share (basic and diluted) SEK -1.45  (-1.19)  Significant events during the third quarter • PowerCell signs order in July with a leading European marine OEM manufacturer  • PowerCell receives Approval in Principle from Den Norske Veritas for a combined methanol reformer and fuel cell system • PowerCell signs SEK 165m order in September for fuel cell systems with leading Italian marine OEM manufacturer Significant events after the end of the reporting period • PowerCell partners with Australian aviation company for concept study on VTOL aircraft  
 Key performance indicators         SEK million, unless other stated Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Net sales 71.9 69.9 190.2 182.8 310.3 Gross profit 23.1 36.1 58.6 77.0 124.0 Gross margin, % 32.1 51.6 30.8 42.1 40.0 Operating income before items affecting comparability -15.7 -6.5 -84.4 -64.4 -66.5 Operating income -15.7 -6.5 -54.4 -64.4 -72.6 Net income -15.9 -6.6 -49.6 -53.0 -63.0 Earnings per share (basic and diluted), SEK -0.46 -0.22 -1.45 -1.19 -1.57 Equity asset ratio, % 55.1 60.8 55.1 60.8 64.8 Operating cash flow -7.4 -51.9 -19.3 -47.0 -95.7

===== SIDA 2 =====

Interim report third quarter 2024  
 
 2 
  The CEO’s comments Significant order from Italian shipyard confirms transition to OEM-driven sales In the third quarter, while market conditions remained soft, we saw a clear improvement with new orders in the marine sector. Thanks to our solid underlying business, we delivered growth of 3% compared to the same quarter 2023. Looking ahead, we anticipate high activity levels in the fourth quarter, driven by significant progress in our two major marine projects in Norway and at the Italian shipyard. In the quarter, net sales amounted to SEK 72 million, growing 3% compared to the same period last year. Year-to-date growth is at 4% with stable gross margins and improved EBIT. The gross margin was 32.1% in the quarter, improving from last quarter and we continue our work to strengthen the gross margin with a better product mix with higher proportion of application development and services sales as drivers. Comparison year-over-year is affected by a temporary income last year with exceptionally high profitability.    Operating cash flow in the quarter improved to SEK -7.4 million (-51.9). The cash flow has significant cut-off effects and customer payments from increased OEM-sales will increase our cash position in beginning of fourth quarter.  Revenue from the Italian order in the fourth quarter It is encouraging to see how investment in hydrogen-electric solutions is growing in the marine industry. We have started production for SEAM and the two ships that will operate on Norway's longest ferry connection. In the fourth quarter, we will start the project for deliveries to the leading Italian marine OEM manufacturer with a total order value of approximately SEK 165 million. This is one of the industry’s largest marine orders to date and a result of a long and very thorough due diligence of our technology and PowerCell as a supplier. Deliveries to customer will take place during 2025, but the order will affect net sales in the fourth quarter of 2024 as project will start now.  Since methanol is available in most of the world’s large harbours, we have added a complement to our product portfolio and gained the Approval in Principle from DNV, Det Norske Veritas, for a new Methanol-to-Power solution. The product is developed together with RIX Industries. By providing this solution, we simplify integration, enhance safety and generate higher value for our customers by minimising time-to-market as well as technical risk and investment.  Concept study for vertical take-off and landing Parallel to our progress in the marine industry, we continue to gain ground in the aviation industry. In the quarter, we signed an agreement with an Australian aviation company for a concept study for a vertical take-off and landing aircraft, a so-called VTOL aircraft. Fuel cells are very suitable for this segment due to the high energy-to-weight ratio that a hydrogen solution can achieve. With fuel cell technology, a VTOL aircraft can have a good payload, impressive range as well as minimal emissions and low noise. The concept study will result in a hydrogen fuel cell specification that will form the base for several prototypes with long-term commercial plans.   
First 300 kW platform tested We made significant technical progress this quarter by  building and testing the first 300 kW product platform. The development work is a part of the Newborn project, part of the EU’s Clean Aviation Joint Undertaking. The EU project focuses on developing an aerospace-certified megawatt-class fuel cell propulsion system, which will be powered by hydrogen. In parallel, we are also part of the EU project H2Marine to ensure that this powerful platform will be ready for industrialisation in other customer segments with high demands on durability. The internal testing confirms a significant improvement in performance as energy density reaches more than 3kW/kg. This translates to improved value in all customer applications from reduced weight, volume and cost. I am very proud of how PowerCell manages to continue to develop its offering while driving growth from our industrialised products with a clear path to break-even.  More drivers accelerating the energy transition At the end of September, I participated in Climate Week in New York and I can confirm that there is a growing interest in fuel cell technology all over the world. Besides drive for decarbonisation, the energy transition now also benefits from an increased focus on imminent health aspects of hazardous air pollutants related to the combustion engine. According to the research organisation Health Effects Institute, nearly every person on earth breathes unhealthy levels of air pollution every day. We also see a rising demand for electricity as society develops and innovations see the light of day.   Consequently, balancing the electricity system becomes increasingly important, the more solar and wind power we utilise. Hydrogen and fuel cells will be part of the expanding energy system. The fact that decarbonisation is not the only driver is what I believe is accelerating the energy transition toward financially viable business models. Our contracts with major OEMs in the marine and aerospace industries help raise attention and increase awareness that fuel cell technology is in a commercial phase.  It is a fantastic development that PowerCell has seen in recent years as we moved from being a research company to now delivering commercial applications. We have prepared ourselves well by increasing competencies and delivery capabilities internally. At the same time, we care about our ability to continue developing our products to grow our market further. I am in daily contact with companies that see fuel cell technology as the solution to reduce their emissions. I am therefore confident in our ability to deliver long-term profitable growth.  Richard Berkling CEO

===== SIDA 3 =====

Interim report third quarter 2024  
 
 3 
Financial performance July – September   Net sales Net sales increased 3% in the quarter to SEK 71.9m (69.9). Sales of projects, according to percentage of completion, amounted to SEK 31.9m (23.6) and represented a major part of the product mix in the quarter. Royalty fees from Robert Bosch GmbH decreased to SEK 7.4m (12.0).  Gross profit and operating income/loss Gross profit decreased to SEK 23.1m (36.1) with a gross margin of 32.1% (51.6). The gross margin was impacted by the product mix with lower high margin engineering service sales and royalty.  Operating expenses decreased to SEK -44.7m (-54.9). Other operating costs amounted to SEK -4.8m (-4.8) and relate mainly to exchange rate effects.  Other operating income amounted to SEK 10.7m (17.0) and include exchange rate gains of SEK 5.8m (7.4) and R&D grants of SEK 5.0m (9.6). 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 capitalised, PowerCell runs R&D activities and expenditures that focus on future technical solutions.   In the quarter, SEK 7.0m (5.6) 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 -15.7m (-6.5). Net income and financial items Net financial items amounted to SEK -0.3m (-0.1)  Net income in the quarter was SEK -15.9m (-6.6). Cash flow Operating cash flow improved to SEK -7.4m (-51.9) with major effect deriving from changes in working capital. Cash flow from investing activities was affected by product development capitalisation. In the quarter, SEK 7.0m (5.6) was capitalised as intangible assets. Total cash flow improved to  SEK -17.6m (-59.7).  Financial position On September 30 2024, cash and cash equivalents amounted to SEK 67.9m. Customer payments from increased OEM-sales will increase our cash position in beginning of fourth quarter.  In second quarter 2024 PowerCell signed a loan of SEK 50m with Nordea to finance PowerCell’s continued expansion. The loan is partly secured by the European Investment Fund’s “InvestEU Sustainability Guarantee”.  
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32.1% Gross margin July – September 2024

===== SIDA 4 =====

Interim report third quarter 2024  
 
 4 
Financial performance January – September  Net sales Sales year to date increased 4% to SEK 190.2m (182.8) compared to the previous year, mainly driven by the marine segment. Sales of projects, according to percentage of completion, amounted to SEK 95.5m (53.3) and represented a major part of the product mix in the period. Royalty fees from Robert Bosch GmbH amounted to SEK 14.8m (15.6).   Gross profit and operating income/loss Gross profit decreased to SEK 58.6m (77.0) with a gross margin of 30.8% (42.1). The gross margin was negatively impacted by change in the product mix with lower royalty and engineering services.    Operating expenses increased to SEK -165.0m (-156.3), reflecting the scale-up of the organization for continued growth. Other operating costs amounted to SEK -18.3m (-16.0) and relates mainly to operating exchange losses.  Other operating income amounted to SEK 40.3m (30.9) and includes operating exchange gains of SEK 14.6m (11.7) and R&D grants of SEK 24.0m (18.9). The majority of R&D grants comes from the EU and relate to projects within aviation and the heavy-duty truck 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 run R&D activities and expenditures that focus on future technical solutions.    During the year, SEK 26.9m was capitalized as development expenditures. The majority related to the development of the new PS200 system and a minor part is related to the development of a 5 kW system for vehicles that need auxiliary power to operate, for example, refrigerating or heating systems. Operating income before items affecting comparability amounted to SEK             -84.4m (-64.4). Operating income after items affecting comparability amounted to SEK -54.4m (-64.4). The item affecting comparability consists of the loan of SEK 30m which the Swedish government converted in May 2024 to a grant. The conditional loan was granted by the Governmental Swedish Energy Agency in 2009. The grant is reported as other income and as an item affecting comparability in the second quarter.  Net income and financial items Net financial items amounted to SEK 4.6m (11.4) and mainly related to revaluation effects in bank accounts denominated in foreign currency, primarily EUR.  Net income in the first nine months was SEK -49.6m (-53.0).  Cash flow Operating cash flow was SEK -19.3m (-47.0) and total cash flow was SEK -7.8m (-71.3), positively impacted by the loan of SEK 50m. Cash flow from investing activities is affected from product development. During the year, SEK 26.9m is capitalized and accounted for as an intangible asset.

===== SIDA 5 =====

Interim report third quarter 2024  
 
 5 
Other information Employees On September 30, 2024, the Group had 147 (151) employees measured as full-time equivalents, FTE.  
The share The share is listed on Nasdaq Stockholm under the ticker PCELL. On 30 September 2024, the total number of outstanding shares was 52,142,434. PowerCell holds no treasury shares.  
Ten largest owners September 30, 2024  Name Number of shares Votes and capital Robert Bosch Group 5,848,531 11,22% Norges Bank 1,993,134 3,82% Avanza Pension  983,688 1,89% Green Benefit AG 976,977 1,87% Swedbank Robur Funds  626,604 1,20% Global X Management Company LLC 596,213 1,14% VanEck 365,456 0,70% Handelsbanken Funds 329,431 0,63% Nordnet Pensionsförsäkring 296,097 0,57% Per Arvid Stefan Sjöberg 214,140 0,41% Top ten largest owners 12,230,271 23,46% Others 39,912,163 76,54% 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 current 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 147 employees, 144 are employed by the Parent Company. The Parent Company’s revenue amounted to SEK 71.8m (69.9m) in the third quarter. Operating income after items affecting comparability for the quarter amounted to SEK -23.7m (-10.1).

===== SIDA 6 =====

Interim report third 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, October 17, 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   Auditor´s report Powercell Sweden AB (publ), 556759-8353  Introduction  We have reviewed the condensed interim financial information (interim report) of PowerCell Sweden AB as of 30 September 2024 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.  Scope of review  We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity.  A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.   Conclusion  Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.  Gothenburg, 17 October 2024  Öhrlings PricewaterhouseCoopers AB   Fredrik Göransson  Authorized Public Accountant

===== SIDA 7 =====

Interim report third quarter 2024  
 
 7 
 Condensed income statement - Group          SEK thousand Note Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Net sales 3 71,852 69,881 190,198 182,770 310,287 Costs of goods and services sold   -48,789 -33,797 -131,595 -105,777 -186,275 Gross profit  23,063 36,084 58,603 76,993 124,012          Selling and administrative costs 4 -23,312 -27,511 -84,029 -80,854 -105,796 Research and development costs  -21,353 -27,401 -80,979 -75,435 -114,498 Other operating income 7 10,741 17,041 40,282 30,885 55,036 Other operating costs 8 -4,814 -4,751 -18,326 -16,035 -25,272 Operating income before items affecting comparability  -15,675 -6,538 -84,449 -64,446 -66,518 Items affecting comparability 6 - - 30,000 - -6,057 Operating income  -15,675 -6,538 -54,449 -64,446 -72,575 Net financial items   -314 -121 4,557 11,444 9,620 Profit (loss) after financial items  -15,989 -6,659 -49,892 -53,002 -62,955 Income tax   83 13 273 28 -5 Profit (loss) for the period  -15,906 -6,646 -49,619 -52,974 -62,960          Other comprehensive income:         Items that may be reclassified to profit or loss         Exchange differences from foreign operations   -26 2 -254 81 234 Other comprehensive income for the period   -26 2 -254 81 234 Total comprehensive income for the period  -15,932 -6,644 -49,873 -52,893 -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 Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Earnings per share, basic 5 -0.46 -0.22 -1.45 -1.19 -1.57 Earnings per share, diluted 5 -0.46 -0.22 -1.45 -1.19 -1.57

===== SIDA 8 =====

Interim report third quarter 2024  
 
 8 
 Condensed balance sheet - Group     SEK thousand 2024-09-30 2023-09-30 2023-12-31 ASSETS     Non-current assets     Intangible assets 50,307 16,255 22,485 Right of use assets (leasing) 28,376 33,313 31,838 Tangible fixed assets 28,261 32,745 33,377 Deferred tax assets 390 256 279 Total non-current assets 107,334 82,569 87,979      Current assets     Inventories 117,729 107,714 116,985 Current receivables 122,698 145,440 149,341 Cash and cash equivalents 67,895 134,546 70,809 Total current assets 308,322 387,700 337,135         TOTAL ASSETS 415,656 470,269 425,114      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 -254 -153 - Retained earnings (including profit (loss) for the year) -406,695 -350,290 -360,720 Total equity attributable to Parent Company shareholders 229,205 285,711 275,434      LIABILITIES     Non-current liabilities leases 18,761 22,691 21,521 Non-current liabilities 448 30,600 30,611 Current liabilities leases 6,829 6,987 6,614 Current liabilities 160,413 124,280 90,934 Total liabilities 186,451 184,558 149,680         TOTAL EQUITY AND LIABILITIES 415,656 470,269 425,114

===== SIDA 9 =====

Interim report third 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  - - - -49,619 -49,619 Other comprehensive income for the period   - - -254 - -254 Total comprehensive income for the period   - - -254 -49,619 -49,873               Transactions with shareholders       Share-based compensation to employees   - - - 3,644 3,644 Closing balance 30 September 2024   1,147 635,007 -254 -406,695 229,205        Opening balance 1 January 2023  1,147 635,007 -234 -303,046 332,874 Profit (loss) for the period  - - - -52,974 -52,974 Other comprehensive income for the period   - - 81 - 81 Total comprehensive income for the period   - - 81 -52,974 -52,893               Transactions with shareholders       Share-based compensation to employees   - - - 5,730 5,730 Closing balance 30 September 2023   1,147 635,007 -153 -350,290 285,711

===== SIDA 10 =====

Interim report third quarter 2024  
 
 10 
Condensed cash flow - Group          SEK thousand Note Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Cash flow from operating activities         Operating profit (loss)  -15,675 -6,539 -54,449 -64,445 -72,574 Adjustments for non-cash items  7,264 5,236 -2,707 21,277 22,354 Interest paid/received  -859 361 -654 1,447 3,005 Paid income tax   - - -648 -696 -78 Cash flow from operating activities before changes in working capital  -9,270 -942 -58,458 -42,417 -47,293 Cash flow before changes in working capital         Increase/decrease of inventories  1,884 15,413 -1,372 -30,061 -34,195 Increase/decrease of current receivables  -4,567 -25,181 24,012 -20,793 -25,740 Increase/decrease of current liabilities   4,558 -41,216 16,519 46,321 11,541 Total changes in working capital   1,875 -50,984 39,159 -4,533 -48,394          Cash flow from operating activities  -7,395 -51,926 -19,299 -46,950 -95,687          Cash flow from investing activities         Acquisitions of tangible and intangible assets   -8,366 -5,681 -33,037 -17,776 -28,170 Cash flow from investing activities  -8,366 -5,681 -33,037 -17,776 -28,170          Cash flow from financing activities         Borrowed short-term loans  - - 50,000 - - Repayment of leasing liability   -1,820 -2,126 -5,503 -6,579 -8,780 Cash flow from financing activities  -1,820 -2,126 44,497 -6,579 -8,780          Decrease/increase of cash and cash equivalents  -17,581 -59,733 -7,839 -71,305 -132,637 Opening cash and cash equivalents  85,226 195,274 70,809 196,857 196,857 Effects of exchange rate changes on cash and cash equivalents   250 -995 4,925 8,994 6,589 Closing cash and cash equivalents  67,895 134,546 67,895 134,546 70,809

===== SIDA 11 =====

Interim report third quarter 2024  
 
 11 
Condensed income statement – Parent Company        SEK thousand Note Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Net sales  71,852 69,881 190,198 182,770 310,287 Costs of goods and services sold   -48,789 -33,797 -131,595 -105,776 -186,274 Gross profit  23,063 36,084 58,603 76,994 124,013          Selling and administrative costs  -24,455 -26,843 -83,452 -79,178 -102,806 Research and development costs  -28,224 -31,622 -107,569 -85,676 -131,751 Other operating income  10,741 17,041 40,237 30,849 54,987 Other operating costs   -4,815 -4,809 -18,322 -15,892 -24,911 Operating income before items affecting comparability  -23,690 -10,149 -110,503 -72,903 -80,468 Items affecting comparability   - - 30,000 - -6,057 Operating income  -23,690 -10,149 -80,503 -72,903 -86,525 Net financial items   -89 -1,417 4,694 10,612 4,333 Profit (loss) after financial items  -23,779 -11,566 -75,809 -62,291 -82,192 Income tax   23 23 111 70 93 Profit (loss) for the period  -23,756 -11,543 -75,698 -62,221 -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 third quarter 2024  
 
 12 
Condensed balance sheet – Parent Company     SEK thousand 2024-09-30 2023-09-30 2023-12-31 ASSETS     Non-current assets     Intangible assets 6,945 6,603 5,996 Tangible fixed assets 28,261 32,744 33,376 Financial assets 1,405 1,271 1,294 Total non-current assets 36,611 40,618 40,666      Current assets     Inventories 117,729 107,714 116,985 Current receivables 125,528 150,525 150,438 Cash and bank balances 64,564 132,045 67,978 Total current assets 307,821 390,284 335,401         TOTAL ASSETS 344,432 430,902 376,067      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 -296,740 -217,842 -218,285 Profit (loss) for the period -75,698 -62,221 -82,099 Total non-restricted equity 183,069 275,444 255,123 Total equity 184,216 276,591 256,270           LIABILITIES     Non-current liabilities - 30,000 30,000 Current liabilities 160,216 124,311 89,797 Total liabilities 160,216 154,311 119,797         TOTAL EQUITY AND LIABILITIES 344,432 430,902 376,067

===== SIDA 13 =====

Interim report third 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 October 17, 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 Group’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 Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Hardware 22,460 28,095 54,973 76,983 92,267 Services 10,024 6,239 24,943 36,860 65,499 Royalty fees 7,439 11,994 14,809 15,595 18,993 Projects according to percentage of completion 31,929 23,553 95,473 53,332 133,528 Total 71,852 69,881 190,198 182,770 310,287       Revenue from contracts with customers per country, based on where customers are located Sweden 89 1,350 1,915 2,859 6,111 Germany 10,635 20,298 38,429 36,019 55,876 Great Britain 1,567 9,573 7,331 48,646 83,694 Netherlands  331 45 4,777 16,602 12,697 US 16,237 8,112 21,250 40,006 38,514 Norway 33,260 - 88,932 - 93,687 Other 9,733 30,503 27,564 38,638 19,708 Total 71,852 69,881 190,198 182,770 310,287

===== SIDA 14 =====

Interim report third quarter 2024  
 
 14 
4. Related party transactions No significant transactions with related parties have taken place in the period.  5. Earnings per share SEK Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Earnings per share, basic -0.46 -0.22 -1.45 -1.19 -1.57 Earnings per share, diluted -0.46 -0.22 -1.45 -1.19 -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 -23,756 -11,543 -75,698 -62,221 -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 52,142,434 52,142,434 Adjustment for the calculation of earnings per share, diluted 52,142,434 52,142,434 52,142,434 52,142,434 52,142,434  6. Items affecting comparability Thousand SEK Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Costs related to listing on Nasdaq Stockholm - - - - -6,057 Government loan converted into grant - - 30,000 - - Total - - 30,000 - -6,057  7. Other operating income Thousand SEK Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Currency exchange gains 5,764 7,378 14,623 11,673 23,908 Grants 4,977 9,639 23,969 18,947 30,607 Other - 24 1,690 265 521 Total 10,741 17,041 40,282 30,885 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 third quarter 2024  
 
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8. Other operating cost Thousand SEK Jul-Sep 2024 Jul-Sep 2023 Jan-Sep  2024 Jan-Sep 2023 2023 Currency exchange losses -4,814 -4,751 -18,326 -16,035 -25,106 Other - - - - -166 Total -4,814 -4,751 -18,326 -16,035 -25,272  9. Significant events after the end of the reporting period PowerCell partners with Australian aviation company for concept study on VTOL aircraft.  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 analysing PowerCell´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.

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Interim report third quarter 2024  
 
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Financial calendar Interim report Q4 and year-end report 2024, February 13, 2025 Interim report Q1 2025, April 24 Annual General Meeting, April 29 Interim report first half year 2025, July 17 Interim report Q3 2025, October 23 Interim report Q4 and year-end report 2025, February 12, 2026 
Webcast presentation An online presentation will take place today at 10:00 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-group-q3-report-2024You 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=50048562 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 and the Swedish Securities Market Act. The information was submitted for publication through the agency of the contact person set out below, at 07:30 am CEST on October 17, 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