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ECOCLIME GROUP AB (PUBL)CORPORATE IDENTITY NUMBER: 556902-1800

SUMMARY OFANNUAL REPORT 2019

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FINANCIAL CALENDAR 2020

May 14th, 2020: Quarterly Report January – March 2020

June 16th, 2020: Annual General Meeting 2020

August 20th, 2020: Interim Report January – June 2020

November 12th, 2020: Quarterly Report July – September 2020

February 18th, 2020: Year-end Report 2020

CompanyEcoclime Group AB (publ.)Storgatan 38903 26 UMEÅ+46 90 771900www.ecoclime.se ir@ecoclime.se Corporate ID: 556902-1800

AccountantsErnst & Young ABBox 7850103 991 Stockholm+46 8 520 590 00 www.ey.com

ADDRESSES

CONTENTS

2019 in brief ...............................................................................................................................................3

CEO message ............................................................................................................................................5

This is Ecoclime .......................................................................................................................................6

Markets ........................................................................................................................................................7

Ecoclime’s position on the property sector ................................................................................9

Ecoclime’s business segments ........................................................................................................10

The january – december 2019 period ........................................................................................... 13

Business model and growth strategy ........................................................................................... 15

Financial reports .................................................................................................................................... 17

Consolidated profit and loss statement ..................................................................................... 17

Consolidated earnings and other comprehensive income statement ........................... 18

Consolidated financial position statement ................................................................................ 19

Significant events during the financial year .............................................................................20

Significant events after the financial year.................................................................................. 21

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GROUP OCT-DEC2019

OKT–DEC2018

OKT–DEC2019

JAN–DEC2018

JAN–DEC

Revenue 25 099 24 349 88 738 72 267

Net sales 20 726 16 119 72 679 56 103

EBITDA 4 053 2 759 8 341 11 543

EBITDA margin (per cent) 20% 17% 11% 21%

Operating profit before acquisition-related costs (EBITA) 2 729 2 151 4 479 9 633

EBITA margin (per cent) 13% 13% 6% 17%

Cash flow from operating activities 3 547 14 890 –16 067 19 886

Cash liquidity (per cent) 162% 171% 148% 171%

Solidity (per cent) 75% 68% 75% 68%

Earnings per share (SEK) –0,06 0,15 –0,09 0,25

Equity per share (SEK) 4,47 6,28 4,81 6,51

Number of shares at the end of the period 28 582 834 18 858 898 28 582 834 18 858 898

Key numbers

*Due to the company’s accelerated growth strategy, the summary above is based on operating profit before depreciation (EBITDA). The company’s target had been 15 per cent. As presented in the consolidated accounts on page 9, the group’s final results were affected by one-off costs related to the preparation of listing on the Nasdaq First North Premier Growth Market of SEK 3.987M and acquisition costs of SEK 508M.

2019 IN BRIEF

Key events during the year

• Strategic decision on extending our growth strategy to include investments that create synergies with Ecoclime’s activities and brands in the energy and property segments.

• Stock issues of SEK 8.16M to majority owner Celsium Group AB of 1,200,000 A-shares.

• Proof of Concept and sales start of four pre-series Evertherm SEW systems.

• Initiation of a process to potentially transfer Ecoclime’s share listing to the Nasdaq First North Premier Growth Market.

• Acquisition of 20 per cent of Bioeco Technologies AB with an option to acquire up to 51 per cent of the company.

• Agreement signed on acquisition of energy systems installer H-Gruppen Totalinstallatör AB.

• During Q4, subsidiary SDC Automation wins several orders valued at approximately SEK 33M, with orders totalling approximately SEK 87M for the full year.

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Lennart Olofsson

An exceptionally strong fourth quarter lifts the whole year.

As we look back at 2019, we can be encouraged by a number of successes – in particular, organically recovering ground in the fourth quarter that we had lost during the first nine months of the year due to a decrease in activity in the construction sector. This is where SDC Automation’s exceptional performance really stands out, with organic growth of more than 80 per cent for the full year. And where Ecoclime Solutions is also performing strongly with an increase in sales of more than 100 per cent for the quarter. This is presented in more detail in the “January – December 2019 Period” section of this report. In addition, we achieved EBITDA of 20 per cent in Q4 and 11 per cent for the full year, which is relatively close to our goal of 15 per cent, especially in light of the parent company’s work on transferring the Ecoclime share listing, acquisitions and the expansion of our sales activities.

This positive development was driven by Ecoclime gaining increasing traction and attention for our circular energy, indoor climate and property auto-mation solutions. During the year, we demonstrated that Evertherm SEW recovers more than 90 per cent of heat energy from wastewater in residential pro-perties. Meanwhile, thanks to an independent study conducted by research consultancy Carlsquare, we could demonstrate that an investment in Evertherm SEW results in substantial improvements in net operating income, which in turn increases property values, and which in many cases exceeds the initial investment cost of the Evertherm system. We are seeing that the property segment’s preference for conventional LCC, ROI and Pay-off calculations is giving way to interest in yield calculations focused on operational efficiency because these impact mort-gage levels and financing. With Evertherm SEW, we can recirculate purchased energy up to 20 times to heat domestic hot water (DHW) in properties. We have thus shown that our indoor climate and circular energy solutions deliver the best comfort, recover the most energy, minimize greenhouse gas

CEO COMMENT

emissions at the same time as we improve properties’ financial position. Since sales started at the end of September, we have signed agreements to deliver four Evertherm SEW systems for three of Sweden’s largest property companies, with an order value of more than SEK 5M. As interest in these solutions continues to grow, we plan to launch extensive market initiatives for the Evertherm system in 2020 and beyond.

In 2019, our largest customer in property automation, with three data centres in Sweden, decided to replace existing systems with SDC’s integrated solutions. More generally, our unique competences in system integra-tion and property automation laid the foundations for rapid growth in orders for automation solutions, which by the end of the year exceeded SEK 80M.

In December, we signed an agreement for the acquisition of H-Gruppen Totalinstallatör AB. With the acquisition, together with our other subsidiaries – Flexibel Luftbehandling, SDC Automation and Ecoclime Solutions, we now offer comprehensive solutions for system integration, optimisation of recovered energy and energy efficiency for residential and commercial property. With SDC’s IoT platform, we have taken a crucial step towards our challenge of developing our position as a leading system provider of circular energy systems in climetech/proptech in the property sector.

Our preparations to transfer our share listing to the OMX First North Premier Growth Market have progressed as planned.

In the year ahead, we will be focusing primarily on efforts to increase sales of our core products on the Swedish market and on preparations to launch export markets through our export network. According to our most conservative estimates, growth in 2020 will be at least as strong as 2019. We are also focused on ensuring that Ecoclime Group will be involved in the EU’s SEK 10 trillion climate initiative for the coming 10-year period.

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THIS IS ECOCLIME

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Business idea

Ecoclime Group offers property owners and tenants cost-effective solutions, with full control, for sustainable indoor climate and climate-smart energy supply.

Activities

Companies in the Ecoclime Group develop innova-tive solutions, market and manage business projects with the aim of creating healthy indoor climates and cost-effective energy systems based on recycled, renewable and fossil-free energy to reduce climate impact from properties and industrial processes. The company’s energy solutions combine patented core products with open IoT technologies that are integrated with customers’ existing energy heating, comfort cooling, and property automation systems. Ecoclime is present across the value chain with activities in product development, production, installation, monitoring, service and maintenance.

Overarching goals

• To grow organically and through acquisitions of strong and well-established technologies and design and contracting companies where synergies

exist with the company’s system and business solutions.

• Profitability and positive cash flow through effecti-ve organisation and a high contribution margin.

• Financing through capital markets, financial partners, and banking and financial institutions.

• Increase shareholder value.

Strategy

Ecoclime Group develops business models and standard solutions that are based on general needs of property owners and tenants in terms of technology, financing and service. We want to contribute to the development of society by offering smart and cost-effective solutions to today’s and tomorrow’s energy challenges. We are a long-term and stable actor that focuses on sustainability and quality.

Values

Ecoclime’s values are “trust, openness, utility and innovation for productivity, wellbeing and the clima-te”, which are the hallmark of all our activities. Our values extend to a corporate culture that combines business practices with environmentally sustainable development.

Climate, environment and health

According to the International Energy Agency (IEA), reduced CO2 emissions from the construc-tion and property sector will be decisive in fulfilling the Paris Agreement, the UN’s Agenda 2030 and the Sustainable Development Goals. Nearly 40 per cent of global energy- and processing industry emissions are caused by property and construction, primarily due to heating and comfort cooling. From a holistic perspective, measures to combat climate change in this area are the most cost-effective way of reducing carbon emissions. Renewable and recovered energy can play a key role in reducing carbon emissions from properties, while at the same time promoting a cleaner energy supply. Renewable energy can produce heat directly, (for example through bioenergy, geothermal or solar), and indirectly, (from renewable electricity). According to the IEA, the pace of renovation and energy efficiency measures needs to accelerate for existing properties, both in terms of the number of properties and the degree of energy efficiency; and the proportion of new-builds that are energy

self-sufficient needs to increase. The Public Health Agency of Sweden has identified a number of factors that directly or indirectly impact public health, including indoor climate and environment. Indoor environment affects health with the presence of and exposure to chemical substances, physical factors such as temperature, airflow, moisture, noise and lighting, and biological factors such as the presence of mould and mould spores. Climate change is set to drive up temperatures with more frequent and long-er warm periods, which in turn may have negative health outcomes. Warmer outdoor temperatures also put greater emphasis on indoor climate that do not negatively impact people’s health. This has in turn prompted rules and requirements in terms of heating, ventilation and comfort cooling.

Market size and growth

In 2018, the market for installation and service in Sweden amounted to approximately SEK 90 billion. Growth on the Swedish market in these segments is predicted to continue to be robust, although at a somewhat slower rate than previously forecast.

MARKETS

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Weaker activity in the new-build market, is expected to be compensated by an increase in maintenance, renovation and improvements. The Nordic service and installation market is fragmented, with some 25,000 smaller companies niched in specific technology areas, and a smaller number of actors with broader offerings. The average energy use for heating and hot water in premises in 2017 stood at 122 kWh/m2, equivalent to a total of 19.2TWh for all premises in Sweden. For apartment buildings, energy use amounted to the equivalent of 135 kwh/

m2 and a total of 27.6TWh. For Sweden to achieve the UN’s Agenda 2030 and the Sustainable Development Goals, energy use needs to fall to approximately 70 kWh/m2 or 25TWh in total, which equates to a decrease in volume of energy used in Swedish properties of almost 22TWh.

Markets and drivers

The company has identified a number of market trends and drivers of growing investment that increase the profitability of properties and reduce climate and environmental impact:

• Urbanisation coupled with population growth in Sweden, which is expected to reach 11 million in 2028. More than half of the country’s expected population growth is set to occur in the three largest regions – Stockholms Län, Västra Götaland and Region Skåne – and residential property is already in short supply.

• Around 25 per cent of the Swedish housing stock was built in the “million programme” between 1965-74. Today, these buildings need to be reno-vated and modernised to meet current energy use and water resources management requirements.

• Energy efficient properties are increasingly regarded as offering a competitive advantage in property transactions due to how heating costs affect net operating income and property values.

• Digitalisation and greater technological complex-ity is driving greater use of complex IT solutions and automated controls.

• A comfortable indoor climate with clean air is increasingly being seen as a hygiene factor in urban areas with high rental prices. Tenants are aware of staff wellbeing and productivity, while also wanting to use premises more efficiently and flexibly.

ECOCLIME’S POSITION IN THEPROPERTY SECTOR

Increased property values, improved cash flow and financial flexibility

Ecoclime’s system solutions improve profitability. For example, our subsidiary Evertherm’s system for the recovery, storage and distribution of heat results in reduced energy buying, which increases properties’ net operating income. Property values are calculated as net operating income through direct yield requirements. This is why increased net operating income results in an increase in a property’s value. In many cases, the increase in value is equivalent to 80 - 200 per cent of investment costs. By recovering more than 90 per cent of energy found in wastewater, purchased energy requirements for heating are reduced by an equivalent amount. This has an immediate effect on property owners’ balance sheets and an increase in property values, which in turn results in greater financial flexibility.

Innovative solutions create new opportunities

Ecoclime’s subsidiary, SDC Automation, uses the latest technologies to create a broad IoT-based integration platform for our customers’ different automation systems. This creates optimal energy efficiency and property utilisation in the 500,000 square metres where the solution is installed.

Ecoclime guarantees results for maximum customer benefit

After several years’ successful customer installations involving measurements, analyses and tests conduc-ted by independent parties, we can offer guarantees that nobody else can. This means that we can make guarantees about indoor climate and energy efficien-cy. With our comfort guarantee offering, we ensure that our customers get the indoor climate they pay for – an entirely unique offering.

Ecoclime has a broad offering across three business segments: indoor climate, circular energy, and property automation. In the property sector, we are positioning ourselves as the leading provider of innovative solutions focused on profitability, and customer and climate benefit.

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ECOCLIME’S BUSINESS SEGMENTS

Indoor climate

The company’s indoor climate system solutions are based on patented comfort panels that are integrated with existing or new ventilation systems. The panels enable thermal energy distribution and energy transformation (cold/heat) via ventilation and room air and via radiation throughout premises. This allows rapid temperature transfer, control and optimisation, without drafts or noise. With this system, climates can be adapted to specific business purposes and to user preferences at lower total cost and greater climate benefit.

Studies conducted with the IDA/ICE simulation programme in co-operation with researchers and students at Umeå University, show that the system achieves the best possible results. These findings have been supported by RISE Research Institute of Sweden’s laboratory tests and in practice in standardised ISO 7730 tests conducted by construction company Arcona at installations in Stockholm. The company’s primary focus in this segment is RCE projects in commercial properties larger than 500m2 that require improvements in indoor climate, and new-build properties with commercial space that need to reduce ventilation system volume, space used by fan rooms and ceiling height.

COMFORT PANELS AND COMFORT CEILINGS

Ecoclime comfort ceilings consist of climate panels with integrated air supply for comfort cooling or comfort heating. The company’s two basic components in indoor climate systems are comfort panels Invisma and Charisma that build on the patented ETX panel, a highly efficient heat exchanger housed in a specialised polymer material. These products are installed in commercial properties to distribute comfort cooling and comfort heating and for the recovery of heat for transfer to accumulators or geothermal storage. By transporting liquid media via heat exchangers in a heat interval of between 12–40 degrees Celsius, an even (comfort) temperature can be achieved in a property. Our comfort panels are silent, draft-free and have best-in-class fire safety certification.

Ecoclime Invisma is a passive panel, essentially a radiator panel that combines high power with low build height (27 mm), which transfers virtually all energy to its surroundings via low-temperature radiation. Ecoclime Charisma is an active panel that combines radiated energy with air by passing ventilation air over the surface of a heat exchanger, which in turn develops higher a higher power output, but at the same time a higher build height (140 mm). Invisma and Charisma are used as comfort panels for installation in suspended ceiling systems, in premises with fluid valves, to control energy supply via piping with, for example, water-born heating and cooling for temperature regulation.

INDOOR CLIMATE SYSTEMS

By combining ventilation and indoor comfort system installations with appropriate control and automation systems, the company can offer complete indoor cli-mate systems suited for a variety of different property types. Ecoclime’s subsidiary, Flexibel Luftbehandling, and the H-Gruppen acquisition’s subsidiary, KVS Montage, provides installation services for Ecoclime’s indoor climate and external ventilation solutions.

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Circular Energy

In 2017, Ecoclime was the first company in the world to introduce a circular energy system as part of its vision to make properties’ total energy supply 100 per cent renewable. This is to be achieved with an economically sustainable business model that establishes a win-win situation for property owners and the environment. When the system is integrated with district heating and/or geo-energy, Ecoclime refers to this as a circular energy system defined as at least 80 per cent of thermal energy in a property being recovered and/or renewable.

SOLUTIONS FOR ENERGY RECYCLING AND ENERGY RECOVERY

Through product company Evertherm Reenergy Systems , Ecoclime offers solutions for the recovery, recycling, storage and distribution of thermal energy (heat/comfort cooling) in properties with the company’s patented polymer heat exchangers. For energy recovery, we offer energy solutions using water, fluids or air, (for example ventilation air, tanks, water pipes, wastewater and sewage). The system can also be integrated with existing solutions, for example geo-energy, district heating, district cooling and bioenergy.

ENERGY COLLECTION SYSTEM

Evertherm’s energy collectors are multiple heat exchangers combined to perform thermal energy absorption. These systems recycle and recover energy from fluids, air, solar radiation and conden-sation from heat exchange. These energy collectors are key components in different product variants constructed for applications primarily in energy recycling and energy recovery systems.

Evertherm ARV – Wastewater treatment plants

An energy system for, among other applications, heating of properties and DHW in conjunction with wastewater treatment plants. These system products are available as a standard version or can be adapted in terms of output and compatibility for specific properties. The standard version can be integrated with existing heating systems and include, for example, heat pumps and a real-time control system.

Evertherm SEW – Waste heat from sewage

The company’s Evertherm SEW energy system recovers waste heat from sewage in properties for heating and DHW. These system products are available as a standard version or can be adapted in terms of output and compatibility for specific pro-perties and can be integrated with existing heating systems. The standard version of Evertherm SEW also includes, for example, heat pumps, a real-time control system and a standardised sump for the recovery of wastewater. The H-Gruppen acquisition and its subsidiaries offer plumbing and installation of the energy system.

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Property automation

Ecoclime’s subsidiary SDC Automation offers an IoT-based automation platform that monitors, controls and optimises energy use and energy distribution in real-time in properties. The platform can integrate components and systems from various manufacturers on the market. It can also be integrated with existing Building Automation Systems (BAS) that are used for technical monitoring and control, and Building Management Systems (BMS) used for accounting and financial controls. In line with increasing demands in terms of energy efficiency and new opportunities with machines and devices able to communicate over the internet (IoT), the need for module-based platforms for properties and, for example, data centres, will grow. SDC offers installation, operational and service support, as well as project management and certification of installa-tion and operational partners.

Under the SDC Optima brand, the company offers a solution that monitors, stores, controls and optimises energy use for comfort heating and cooling and energy efficiency needs in properties. The system is based on a modularised platform for energy-, climate- and comfort-optimisation in properties. The

control system is based on a proprietary platform that enables integration with most standardised automation systems from different suppliers cur-rently on the market. SDC Optima can be used for integration in older properties as well as newbuilds. SDC also offers lighting control and general control solutions for data centres. SDC Keyhole is an inter-face that integrates with presentation systems, BMS and other property automation solutions.

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THE JANUARY – DECEMBER 2019PERIOD

In 2019, we broadly followed our previously com-municated growth scenario. Continued investment in business development meant that total sales amounted to SEK 88.8M, of which net sales increased by 29.5 per cent organically, totalling SEK 72.7M. EBITDA margin was 11 per cent for the full year. SDC Automation AB performed strongly during the year. We are intensifying operational work, focusing on sales of our core products in our business areas. We anticipate continued strong growth in our acquired companies. And we continue to work on making further additional successful acquisitions.

BUSINESS SEGMENT INDOOR CLIMATE

This segment includes Ecoclime’s unique solution for draft-free, temperature-stable indoor climate and an installation service through the acquired Flexibel Luftbehandling. During the year, we won orders from existing customers as well as orders from several new customers. In Q4, sales of our indoor climate solutions more than doubled compare to the period in 2018. Flexibel Luftbehandling’s sales decreased in 2019, primarily due to a deterioration in activity in the construction segment compared to 2018. However, despite this, underlying operating margin improved.

BUSINESS SEGMENT CIRCULAR ENERGY

This segment comprises primarily of Ecoclime’s Evertherm SEW solution for heat energy recovery from wastewater. In August 2019, we received the findings of a proof of concept project in a property commissioned by Skanska in 2017. More than 90 per cent of heat from sewage is recovered, which drew the attention of, among others, trade title Energy & Miljö. From September onwards, greater focus has been placed on sales of the SEW solution, since when four systems with a total order value in excess of SEK 5M have been signed with customers in Stockholm, Uppsala and Växjö. Meanwhile, in the last quarter of the year, Ecoclime worked intensively on developing a business model and establishing the Evertherm system solution as a stand-alone product company.

During the year, an investment of SEK 10M with an option to acquire a majority of shares in development company Bioeco Technologies was made. The company has a method for the efficient recovery of renewable biomass; and has contracts with two of Sweden’s largest energy companies to co-operate on deliveries worth SEK 28M, based on its proprietary technology and IPR including several international patents.

“Better looking. Better air. Better temperature.” VICTORIA BILLENGREN, VATTENFALL EMPLOYEE, TROLLHÄTTAN

A sump pump is lifted into position beside a buffer and collector tanks in a project for Stockholmshem in which 115 new student flats are being built in Enskede in Stockholm. The flats are scheduled to be ready in 2021.

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In December, after more than 18 months’ discus-sions, agreement was reached on the acquisition of H-Gruppen Totalinstallatör AB. Following the acquisition, which formally took effect on January 2, 2020, Ecoclime’s net sales will double, at the same time as the transaction strengthened Ecoclime’s go-to-market strategy in the circular energy segment. H-Gruppen includes two operations companies Hansson & Hansson Rör AB, which conducts piping and heat system installation, and KVS Montage AB, a ventilation system installer. The acquisition makes Ecoclime Group a complete system supplier of circu-lar energy systems in Sweden’s Mälardal region. For accounting purposes, ventilation activities have been transferred to the Indoor Climate business segment, although they remain a subsidiary of H-Gruppen.

BUSINESS SEGMENT PROPERTY AUTOMATION

SDC Automation had an exceptionally successful year. Once again, the company almost doubled organic net sales and beat performance targets. During the year, SDC took responsibility for property automation on behalf of an internationally recognised global leader in web service solutions for its seven-stage launch of three data centres in Sweden. SDC took over the contract in the face of competition from the largest global players in the sector. SDC won several other high-profile orders in 2019, including a property automation project in Princeton, a property built by MVB for Vitartes. When finished, the premises will be home to the Scandinavian Life Science Center and include more than 50,000m2 of space. Other successes included the continued implementation of the SDC Optima IoT platform which, following its introduction at the end of 2018, can now be quickly integrated into different property stock, for example at 500,000m2 of premises managed by Akademiska Hus and Fabege with a large number of customers. These installations include more than 20,000 measurement points with which Optima’s standardised data and API optimise energy efficiency and property utilisation.

Ecoclime CEO Lennart Olofsson flanked by former H-Gruppen co-owners, Fredrik Hansson and Ola Svensson. Third former co-owner, Björn Westerström, is not pictured. All three remain with the company in senior management positions.

Princeton

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BUSINESS MODEL ANDGROWTH STRATEGY

Business model

Ecoclime’s business model is based on the develop-ment, sale and lease of indoor climate and energy system technologies for recovered and renewable energy. The business model is underpinned by the company’s strategy for accelerated growth, initially on the Swedish market and in time, internationally. The business model includes:

• Development of system products based on our core Energy Thermal Exchanger (ETX) technology

• Sales and installation of system products

• Project design and co-operation with project planners

• Co-operation with integration partners

• Licensing to establish system products

• Financing solutions to lease systems

• Acquisition of comfort and energy system integra-tors with which the company’s products can be integrated

Growth through acquisitions

In the spring of 2017, we initiated a long-term growth strategy. We first focused on establishing a strong position on the Swedish and Nordic markets, to subsequently pursue international expansion. Growth is driven through acquisition of project, installation and operating companies with which our products and services can be vertically integra-ted into our customer offering, which in turn leads to increased sales of our core products, installations and operating contracts.

Acquisition strategy

By acquiring profitable and healthy companies that have strong market positions and excellent customer relationships, we are able to make an impact on the market more quickly. Local presence and customer relationships are key factors as these increase opportunities for new innovations and development of more advanced customer offerings. This allows us to provide customers with a comprehensive, holistic offering that improves quality and customer satisfaction.

Acquisitions

Integrations

Licensing

Financing

VentilationGeo-energy

TechnologiesBusiness model

MarketsPartners

DealsInstallations

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+

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Resul

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Grow

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pro

fit

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Model for integration of acquisitions

Ecoclime’s model for successful acquisitions includes a meticulous evaluation process based on well-defined criteria and management incentives. Having completed an acquisition, a dedicated team works on integrating an acquired company’s systems, processes and offerings. At the same time, we are careful to ensure that acquired companies continue to do what makes them successful. Our primary focus is on adding new opportunities and added value as part of the Ecoclime Group. This model has proved to be highly successful for the acquisitions we have made to date.

Growth driven by unique technologies

Our expanded system, product, service, platform and licensing portfolio developed between 2013 and 2019, combined with our 2018/19 share issue, allow us to have a more aggressive growth strategy. This is especially relevant in indoor climate, thermal energy and property automation in commercial newbuilds, repairs, rebuilds and extensions, and residential properties.

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FINANCIAL REPORTS

CONSOLIDATED PROFIT/LOSS STATEMENT

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AMOUNTS IN SEK 000S NOT2019-01-012019-12-31

2018-01-012018-12-31

Operating income etc.

Net sales 3,4 72 679 56 103

Change in employed products, finished goods and

ongoing work on behalf of others

699 -45

Capitalised production costs 15 360 16 135

Other operating income 0 74

88 738 72 267

Operating expenses

Raw materials and supplies -25 659 -11 808

Goods for resale -13 145 -16 645

Other external expenses 5 -12 103 -10 752

Personnel costs 6 -29 490 -21 519

Depreciation and write-downs of tangible and intangible fixed assets 11,12,13,14 -5 895 -3 944

Other operating expenses -3 987 -8

-90 280 -64 676

Operating profit -1 541 7 592

Profit/loss from financial items

Share or profit or loss in associated companies and joint ventures reported using the equity method

0 -275

Other interest income and similar income items 7 16 1

Interest expenses and similar income items 8 -424 -328

-408 -602

Net operating income -1 949 6 990

Tax on profit/loss for the year 9 -341 -2 498

Profit/loss for the year -2 290 4 492

Earnings per share 10

Earnings per share before and after dilution (SEK) -0,09 0,25

CONSOLIDATED REPORT ON FINANCIAL POSITION

AMOUNTS IN SEK 000S NOT 2019-12-31 2018-12-31 2018-01-01

ASSETS

Fixed assets

Intangible assets

Balanced expenditure on development projects and similar activity

12 40 615 33 411 20 148

Concessions, patents, licences, brands etc. 12 1 098 924 973

Goodwill 11 21 439 21 439 11 364

Tangible fixed assets 13

Buildings and land 2 521 2 708 2 895

Right-of-use assets 14 5 086 2 219 844

Machinery and other technical assets 24 973 26 033 27 928

Inventories, equipment and installations 349 1 126 484

Ongoing new facilities and advances related to tangible fixed assets

0 0 193

Other fixed assets

Deferred tax assets 9 4 832 4 411 2 756

Financial fixed assets

Investments reported according to the equity method 16 10 000 0 0

Other non-current receivables 15,16 2 889 477 482

Total fixed assets 113 802 92 747 68 066

Current assets

Inventory 1 8 226 5 677 6 509

Customer receivables 15,20 11 249 9 535 6 291

Other receivables 15 2 140 7 743 671

Prepaid expenses and accrued revenue 17 5 744 1 979 988

Cash and cash equivalents 15,18 29 027 56 799 17 104

Total current assets 56 386 81 734 31 563

TOTAL ASSETS 170 188 174 481 99 629

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CONSOLIDATED FINANCIAL POSITION STATEMENT

AMOUNTS IN SEK 000S NOT 2019-12-31 2018-12-31 2018-01-01

EQUITY and LIABILITIES

Equity 19

Share capital 2 858 1 886 1 754

Other contributed capital 80 132 69 564 26 602

Balanced earnings including profit/loss for the year 44 704 46 993 42 181

Total equity attributable to parent company shareholders 127 693 118 443 70 537

Total equity 127 693 118 443 70 537

Long-term liabilities

Liabilities owed to credit institutions 15, 20 2 100 3 300 4 500

Leasing liabilities 14, 15 3 450 946 491

Deferred tax liability 9 7 225 7 393 7 161

Total long-term liabilities 12 774 11 638 12 151

Current liabilities

Liabilities owed to credit institutions 15, 20 1 200 1 200 1 200

Leasing liabilities 14,15 1 663 1 294 353

Supplier liabilities 15, 20 7 925 11 116 3 530

Current tax liability 723 277 886

Other liabilities 15, 20 13 652 15 895 7 769

Accrued expenses and prepaid income 22 4 557 14 617 3 202

Total current liabilities 29 720 44 400 16 941

TOTAL EQUITY and LIABILITIES 170 188 174 481 99 629

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SIGNIFICANT EVENTS DURINGTHE FINANCIAL YEAR

Q1

January 24:

Final registration for a preferential rights issue of 7,573,396 B-shares. After the rights issue, the number of shares in the company amounted to 26,432,834, of which 3,571,000 were A-shares and 22,861,834 were B-shares.

Mars 15:

Ecoclime announced that the SDC Automation sub-sidiary won a major SEK 55M project on the Nordic market for one of the world’s largest cloud service providers. The project includes three installations at three sites in Sweden.

Mars 29:

One of Ecoclime’s main owners, Celsium Group AB, subscribed for 1.2 million A-shares through a directed rights issue that was decided upon at an extraordinary general meeting on November 27, 2018.

Q2

May 10:

The Board of Directors decided to expand Ecoclime’s strategic approach to include a broader group of scalable investment projects focused on companies and partnerships that offer fossil-free heat energy so-lutions (heat and comfort cooling), where synergies exist with Ecoclime’s existing system solutions. The Board decided to initiate the process of a potential transfer of the share listing to the Nasdaq First North Premier Growth Market.

May 24:

The Annual General Meeting granted the Board of Directors and the CEO discharge from liability. The

Board of Directors and auditors were re-elected, and it was decided not to pay any dividend.

June 3:

An off-set issue of 800,000 B-shares was made to B Tedebo Holding AB, the seller of Flexibel Luftbe-handling AB, that received the shares in lieu of their expenses.

June 17:

The company’s listed stock shares were reclassified as B-shares. A-shares were not affected by this change.

Q3

July 1:

Ecoclime acquired 20 per cent of shares in Bioeco Technologies AB with an option to acquire up to 51 per cent of the company. In the spring, Bioeco signed a contract for deliveries of energy raw materials to Umeå Energy and Stockholm Exergi totalling SEK 28M, in co-operation with, among other suppliers, Norra Skogsägarna.

Q4

December 2:

Contract signed for the acquisition of energy system installer H-Gruppen Totalinstallatör.

December 30:

Ecoclime’s subsidiary, SDC Automation, won several orders with a total value of approximately SEK 33M during the quarter, and approximately SEK 87M for the whole year.

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SIGNIFICANT EVENTS AFTERTHE FINANCIAL YEAR

H-Gruppen Totalinstallatör was incorporated as a wholly owned subsidiary of the group from January 2, 2020.

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