New Risk • Aug 31
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 107% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr34m free cash flow). Share price has been highly volatile over the past 3 months (56% average daily change). Negative equity (-kr10.0m). Shareholders have been substantially diluted in the past year (107% increase in shares outstanding). Market cap is less than US$10m (€8.98m market cap, or US$9.73m). New Risk • Aug 17
New major risk - Negative shareholders equity The company has negative equity. Total equity: -kr10.0m This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr35m free cash flow). Share price has been highly volatile over the past 3 months (78% average weekly change). Negative equity (-kr10.0m). Market cap is less than US$10m (€4.90m market cap, or US$5.34m). Minor Risk Shareholders have been diluted in the past year (3.4% increase in shares outstanding). Reported Earnings • Aug 16
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: kr22.3m (down 7.7% from 2Q 2022). Net loss: kr14.0m (loss narrowed 19% from 2Q 2022). Revenue is forecast to grow 53% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Electrical industry in Germany. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 60% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 27
First quarter 2023 earnings released First quarter 2023 results: Revenue: kr25.6m (up 5.0% from 1Q 2022). Net loss: kr8.26m (loss narrowed 40% from 1Q 2022). Revenue is forecast to grow 66% p.a. on average during the next 2 years, compared to a 7.7% growth forecast for the Electrical industry in Germany. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 41% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 17
Full year 2022 earnings released: kr0.24 loss per share (vs kr0.27 loss in FY 2021) Full year 2022 results: kr0.24 loss per share. Revenue: kr80.8m (up 45% from FY 2021). Net loss: kr73.0m (loss widened 12% from FY 2021). Revenue is forecast to grow 59% p.a. on average during the next 2 years, compared to a 8.5% growth forecast for the Electrical industry in Germany. Breakeven Date Change • Nov 16
Forecast breakeven date pushed back to 2024 The analyst covering Alelion Energy Systems previously expected the company to break even in 2023. New forecast suggests losses will reduce by 47% per year to 2023. The company is expected to make a profit of kr26.0m in 2024. Average annual earnings growth of 98% is required to achieve expected profit on schedule. Board Change • Nov 02
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. No experienced directors. 1 highly experienced director. Independent Director Hakan Sandberg is the most experienced director on the board, commencing their role in 2010. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 30
Third quarter 2022 earnings released: kr0.057 loss per share (vs kr0.044 loss in 3Q 2021) Third quarter 2022 results: kr0.057 loss per share (further deteriorated from kr0.044 loss in 3Q 2021). Revenue: kr15.1m (up 25% from 3Q 2021). Net loss: kr17.3m (loss widened 59% from 3Q 2021). Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Announcement • Jun 21
Alelion Energy Systems AB (publ) Recruits Magnus Baeckström as Head of Product Alelion Energy Systems AB (publ) recruits Magnus Baeckström for the role as Head of Product, responsible for driving the development of Alelion's product portfolio to meet future customer demands. Alelion develops and produces high-voltage battery solutions for the niche segment heavy-duty vehicles, which operate in ports, airports, construction sites, and other demanding operating environments. At present, only about two percent of the off-highway fleet is electrified annually, which suggests the potential of rapid and steep growth in demand for years to come. The new Head of Product will be given a central role, serving as intermediate between Alelion's technical organization and sales and marketing - which calls for an ability to weigh business opportunities against their technical complexity and cost. Magnus Baeckström's most recent position was as Business Unit Director at ASSA ABLOY. There, he turned a business unit to positive results by fostering a strong team culture and taking focused action throughout the value chain. Announcement • Jun 15
Alelion Recruits Henrik Svala as Chief Technical Officer Alelion recruits Henrik Svala as Chief Technical Officer (CTO), a key role in view of Alelion's strategy to enhance the level of innovation, reduce lead times and develop the business. The recruitment of Henrik Svala as CEO represents an essential element of Alelion's effort to develop their offering. Part of this effort is the construction of a Center of Excellence, including a cell-testing facility. They want to offer expertise throughout the value chain, pushing progress within their selected segment. Henrik Svala comes from a position as Head of Development at Alten, bringing many years' experience of technical development projects across a range of customer segments, not least the automotive. Henrik Svala will take up position as CTO at Alelion in early August. Reported Earnings • Apr 28
First quarter 2022 earnings released: kr0.047 loss per share (vs kr0.071 loss in 1Q 2021) First quarter 2022 results: kr0.047 loss per share (up from kr0.071 loss in 1Q 2021). Revenue: kr24.9m (up 61% from 1Q 2021). Net loss: kr13.7m (loss narrowed 14% from 1Q 2021). Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has fallen by 29% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 4 non-independent directors. Independent Director Anders Bjornberg was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 16
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: kr0.26 loss per share (up from kr0.60 loss in FY 2020). Revenue: kr56.0m (up 118% from FY 2020). Net loss: kr65.0m (loss narrowed 33% from FY 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has fallen by 37% per year, which means it is significantly lagging earnings. Announcement • Dec 10
Alelion Supplies Batteries for A Fuel-Cell Solution, A New Customer in the Strategically Important Construction Equipment Segment Alelion Energy Systems AB has received an initial order of approximately MK 6 in the construction equipment segment. Thehe order will be delivered in 2022, starting in January. The order was placed by a new customer in the strategic construction machinery segment: Terberg Techniek, a company in the Terberg group, which now introduces a new Electric Power Take Off (E-PTO and E-PTO-H2) for the construction industry. This is an industry in urgent need of solutions to reduce the emissions of greenhouse gases and other pollutants. E-PTO replaces the truck's traditional power take off with an electrically powered take off for auxiliary equipment such as concrete mixers and loader cranes. E-PTO (Electric Power Take Off) is already operated by one of the largest European manufacturers in the cement industry. The solution is fitted as a completely stand-alone module on a concrete mixer. This means that the engine can be switched off when the vehicle is stationary at the construction site. E-PTO can be equipped with customized lithium -ion battery packs and an optional hydrogen module. The hydrogen module enables fast refueling at H2 refueling points, as with trucks and passenger cars. Reported Earnings • Nov 19
Third quarter 2021 earnings released The company reported a solid third quarter result with reduced losses, improved revenues and improved control over expenses. Third quarter 2021 results: Revenue: kr12.4m (up kr10.4m from 3Q 2020). Net loss: kr10.9m (loss narrowed 41% from 3Q 2020). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has fallen by 45% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 27
Second quarter 2021 earnings released: kr0.058 loss per share (vs kr0.14 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: kr18.5m (up 264% from 2Q 2020). Net loss: kr13.4m (loss narrowed 34% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 49% per year, which means it is significantly lagging earnings. Recent Insider Transactions • Jul 01
Chief Financial Officer recently bought €6.5k worth of stock On the 23rd of June, Christian Bergaust bought around 38k shares on-market at roughly €0.17 per share. This was the largest purchase by an insider in the last 3 months. Christian has been a buyer over the last 12 months, purchasing a net total of €7.4k worth in shares. Reported Earnings • May 09
First quarter 2021 earnings released The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: kr15.4m (up 73% from 1Q 2020). Net loss: kr15.8m (loss narrowed 13% from 1Q 2020). Announcement • Mar 12
Alelion Energy Systems AB (Publ) Receives New Order from the German Special Vehicle Manufacturer Kamag Alelion Energy Systems AB (publ) has received a new order for high-voltage batteries from the German special vehicle manufacturer KAMAG. The batteries will electrify the driveline in logistic vehicles. The order amounts to SEK 3.4 million and will be delivered to KAMAG starting in the second quarter of 2021. The fully developed battery concept for special vehicles is in demand by several industries that want to reduce their climate footprint. It is intended for electrification of terminal tractors as well as logistic solutions. Announcement • Feb 19
Alelion Energy Systems AB (Publ) Announces First Major Order from New Distributor Network Alelion has received an order for lithium-ion batteries of approx SEK 1 million from Gama Akü Ltd, one of the Turkish distributors of batteries for industrial purposes. The order will be delivered and invoiced during the second quarter. Gama Akü is part of Alelion's newly established network of material handling distributors in Europe. Alelion has over the past six months strategically secured distribution channels across Europe, and agreements are now in place with some ten distributors, covering the most important markets. There are now trained sales representatives present in most European countries, which opens a new channel to market for Alelion. Suitable for all kinds of trucks. The batteries ordered by Gama Akü belong to Alelion's stand-alone concept, where the outer tray is adapted to make the same battery type fit almost every model of truck. The concept opens new opportunities to replace existing lead-acid batteries in material handling with more sustainable alternatives. Alelion's lithium-ion batteries can be recycled by dismantling; each part is recyclable or can be reused in other products-Unique training platform. To support distributors, Alelion has developed a unique, global training platform, on which the sales force is trained to be able to provide qualified advice to their material handling customers in connection with their investment in new, modern batteries. In addition, the distributors are trained to handle the technical support to their customers. The market for lithium-ion batteries in material handling is expected to grow as lead-acid batteries are substituted by the more efficient lithium-ion alternative. Alelion has already manufactured and brought into operation approximately 5,000 batteries worldwide and is well equipped to contribute to the productivity of its customers, from battery development and testing to production, service, support and training. Everything is managed on own account from the factory in Gothenburg. Reported Earnings • Feb 13
Full year 2020 earnings released: kr0.65 loss per share (vs kr0.80 loss in FY 2019) The company reported a poor full year result with increased losses, weaker revenues and weaker control over costs. Full year 2020 results: Revenue: kr26.7m (down 78% from FY 2019). Net loss: kr96.4m (loss widened 23% from FY 2019). Announcement • Jan 26
Alelion Receives Another Follow-Up Order from the Global Special Vehicle Manufacturer Terberg Group Worth SEK 8 Million Alelion received another follow-up order from the global special vehicle manufacturer Terberg Group worth SEK 8 million. The order is the third follow-up order from Terberg Group and the fourth since the two companies signed a cooperation agreement in 2018. The new order, worth SEK 8 million, will be delivered during the first half of 2021. As earlier announced the orders include a service agreement. Terberg's previous orders are already produced in Alelion's battery factory in Gothenburg and will be delivered during the first and second quarter of 2021. Reported Earnings • Nov 19
Third quarter 2020 earnings released: kr0.13 loss per share The company reported a poor third quarter result with increased losses and weaker revenues and control over expenses. Third quarter 2020 results: Revenue: kr2.00m (down 90% from 3Q 2019). Net loss: kr18.5m (loss widened 29% from 3Q 2019). Announcement • Sep 26
Alelion Energy Systems Receives Additional Follow-Up Order from Global Special Vehicle Manufacturer Terberg Group Alelion Energy Systems has received an additional follow-up order for high voltage batteries from Terberg Group. The order is worth SEK 8 million and delivery is to take place during the first quarter of 2021. This is the second order in a short period of time from Terberg Group and the third since the two companies concluded a cooperation agreement in 2018. The battery systems will be used for electrification of terminal tractors. The order includes a service agreement and is worth SEK 8 million in total - the equal amount as the previously disclosed order from Terberg which Alelion received in June this year. Alelion Energy Systems started working with Terberg Group in autumn 2018, when the company received the first order to develop two high voltage battery systems adapted to Terberg's special vehicles. In conjunction with that order, Alelion also received an order for battery systems to be delivered in 2018 and 2019. The development effort that has since continued has now resulted in two battery systems specially adapted for Terberg's needs, both of them certified in accordance with the legal requirements R100 and R10. In June this year, Alelion announced a first follow-up order of SEK 8 million. The currently announced order is the second in a short period of time from Terberg Group and the third since the autumn of 2018. Since cooperation with Terberg began in 2018, Alelion Energy Systems has increased investments in more advanced high voltage battery systems for special vehicles. The company has since then also received a number of important orders within the segment, including from the Swedish construction machinery manufacturer Huddig. Several of these clients are now conducting product testing, which is the phase preceding certification and start of serial production. 
