Technology...SaltX Technology Holding AB (publ) Year-end Report 2016 3 2016 Year-end Report KEY...

SaltX Technology Holding AB (publ) Year-end Report 2016 1

Technology

SaltX Technology Holding AB (publ)

Year-end Report2016This information is information which SaltX Technology is required

to disclose under the EU Market Abuse Regulation. The information

has been made public at 08.00 CET on 17 March 2017.*Updated with minor adjustments based on published annual report.

SaltX Technology Holding AB (publ) Year-end Report 2016 3

2016 Year-end Report

KEY FIGURES

SIGNIFICANT EVENTS DURING Q4

• New focus area – large-scale energy storage •Fundingforthenextgenerationofsaltmaterialensured-increasingperformancefivefold

•Severalimportantpatentsgranted,includinginEurope,JapanandAustralia•AgreementwithMobileClimateControlforgloballicensedealsforairconditioninginheavyvehicles

•SaltXhasenteredintostrategiccooperationwithRheem,themarketleaderintheUSA

•StartofpilotproductionforthermalsolarcollectorsinChina

•Participationinaninternationalexpertgrouponthenextgenerationofgas-drivenheatpumps

•LetterofintentwithÖresundskraftonanewgas-drivenheatpumpincooperationwithleadingmanufacturersinEurope

•Successfultestsoflarge-scaleenergystoragecarriedoutincooperation withDLR

•TheBoardofDirectorsproposesaresolutiontotheAGMinAprilfor anewcapitalissuethatwillraiseSEK100millionforSaltX

SIGNIFICANT EVENT AFTER YEAR-END

Contents

Year-endReport2016 3TheCEO’saddress 4Significanteventsduringtheyear 6OurBusiness 8Financialoverview 10ConsolidatedIncomeStatement 16ConsolidatedBalanceSheet 17ConsolidatedStatementofChanges inEquity 18ConsolidatedCashFlowStatement 18ParentCompanyIncomeStatement 19ParentCompanyBalanceSheet 20ChangesinParent CompanyEquity 21ParentCompanyCashFlowStatement 21OtherInformation 22

” AS WE SECURED A MAJOR PROJECT WITH RHEEM AND OAK RIDGE, THIS LAID THE FOUNDATION FOR STRATEGIC COOPERATION WITH RHEEM IN THE USA.”

READ MORE ON PAGE 4

Key figures, Group, TSEK Q4 2016 Q4 2015 FY 2016 FY 2015Operatingincome 3,548 37,593 15,172 51,753Operatingprofit/loss -6,285 25,967 -20,229 20,226Equity 88,347 72,162 88,347 72,162Cashflowfortheperiod -7,687 -589 13,299 -9,927Equity/debtratio 69% 67% 69% 67%

2 SaltX Technology Holding AB (publ) Year-end Report 2016

4 SaltX Technology Holding AB (publ) Year-end Report 2016 SaltX Technology Holding AB (publ) Year-end Report 2016 5

Last year ended with SaltX entering into a partnership with one of the USA's leading manufacturers of heating and cooling products, Rheem, and production was started in China of solar panels that use our technology. 2016 was a fantastic year for SaltX, which was demonstrated in that we were this year's stock market winners - in all categories!

We are obviously very proud of the trust placed in us.

During the year our four applicationareasweredevelopedstrongly:

HeatBoost–Gas-drivenheatpumpsforhotwateranddomesticheatingWhen,inAugust,wesecuredamajorprojectwithRheemandOakRidge,thislaidthefoundationforastrategiccooperationwithRheemintheUSA.Then,whenGEAppliancesabandoneditswaterheaterbusinessoperations,wewereableto"switch"overtoRheemafteronlytwomonths.Inthisway,welostnotimeinpreparingforfieldtrialsintheUnitedStates.WorkhasbeenintensifiedwiththeGermanresearchinstitute,FraunhoferISE,intheEuropeangas-drivenheatpumpprojectintheformofthefieldtrialwithÖresundskraftandaleadingEuropeanOEM(OriginalEquipmentManufacturer).SaltXisleadingdevelopmentsin

theglobalfieldthroughactiveparticipationintheInternationalEnergyAgency’sexpertgroup.

SunCool –ThermalsolarcollectorswithintegratedheatingandcoolingforbuildingsPlannedpilotproductionstartedinChinainDecember.Asproductionin2017takesoff, thecommercializationeffortsofSunCool’spartnersinChinawillintensify.

VerdAcc–Heat-drivencoolingintrucksandheavydutyvehiclesThegloballicensingagreementwithMobileClimateControl(MCC),aleadingproviderofairconditioningsystems,makesitpossibleforSaltXtoreachoutgloballytoOEMmanufacturersofheavyvehicles.TheprojectwithAlfaLavalMarineisrunningaccordingtoplan,andtestingisnowinfullswing.

EnerStore –Storageofrenewableenergy Asannouncedjustbeforethestartoftheyear,SaltXsecuredimportantpartnersforamajorperformancetest.

The tests were carried out successfully with the Deutsches Luft-undRaumfahrt(theGermanAerospaceCenter),andwerecompletedinearlyMarch2017.

With patents granted for

SaltXNanoCoatedSalt(NCS)technologyinallkeymarketsandaclearcompetitiveadvantageintermsofcostandvolume,SaltXhasexcellentopportunitiestogainastrongpositionintherapidlygrowingmarketforthelarge-scalestorageofrenewableenergy.Inordertomaximizethe

opportunitiesandtotakeaslargeshareofthismarketaspossible,SaltXmustchangegearandacceleratethemarketintroductionofEnerStore.SaltXneedstoraisemorecapitalforthispurpose.SaltXfacesanexcitinggrowth

journeyandhassignificantmarket

potential.Thechallengenowistoexecuteourbusinessplaninanefficientandfocusedmanner.Ilookforwardtoanexciting2017!

Stockholm,March2017KarlBohman,CEO

The CEO’s address

“ SALTX HAS EXCELLENT OPPORTUNITIES TO GAIN A STRONG POSITION IN THE RAPIDLY GROWING MARKET FOR THE LARGE-SCALE STORAGE OF RENEWABLE ENERGY.”

“IN ORDER TO MAXIMIZE THE ENERSTORE OPPORTUNITY AND TO TAKE AS LARGE SHARE OF THIS MARKET AS POSSIBLE, SALTX MUST ACCELERATE.”


...DURING Q4 ...AFTER THE END OF THE YEAR

INVESTMENT IN NEW FOCUS AREA WITHIN ENERGY STORAGE

SaltXTechnologyisstartinganewfocusareawithinenergystoragethatenablesincreaseduseofrenewableenergysourcesbothatsmallandlargescale.

FUNDING FOR THE NEXT GENERATION OF SALT MATERIAL ENSURED - INCREASING PERFORMANCE FIVEFOLD

TheSwedishGovernmentagencyVinnovahas awarded SaltX Technology a grant of 1.2MSEKforfurtherdevelopmentofagraphene-basedSaltXmaterialwhichhaspotentialtoincreasetheperformanceofheatconductioninthesaltmaterialfivefold.ChalmersIndustriteknikisalsoinvolvedintheproject.

SEVERAL IMPORTANT PATENTS GRANTED, INCLUDING IN EUROPE, JAPAN AND AUSTRALIA

TheEuropeanPatentOrganisation(EPO)hasgrantedpatentsforbothNanoCoatedSalt(NCS)technologyandDigitalHeatPipe(DHP).PatentshavealsobeengrantedforNCStechnologyinJapanandAustralia.ThetechnologyhasalreadybeengrantedpatentsinSweden,ChinaandtheUSA.

AGREEMENT MADE WITH MOBILE CLIMATE CONTROL FOR GLOBAL LICENSE DEALS FOR HEAVY DUTY VEHICLES

Anagreementhasbeenenteredintoconcerningthecommercialtermsfor

astrategiclicensingagreementwithMobileClimateControl(MCC).Thelicensingagreement,whichhasnowbeensigned,runsfor15yearsandgivesMCCanexclusiveandglobalrighttodevelop,manufactureandsellheat-drivenairconditioningsystemsbasedonSaltXtechnologyforheavyvehicles.Forthis,MCCpaysavariablelicensefeeinadditiontotheactualSaltXmaterialforwhichSaltXistheexclusivesupplier.

SALTX HAS INITIATED A STRATEGIC COOPERATION WITH MARKET-LEADER RHEEM IN THE USA

AstrategicpartnershiphasbeeninitiatedwithRheem-USA'sleadingmanufacturerofheatingandcoolingproducts-tocompletethecommercializationandbeginfieldtestsin2017ofSaltXsolutionforhigh-performancegas-drivenhotwaterheatersintheUSmarket.ThecooperationaimstointegrateSaltXtechnologyinRheem’sheatingproducts.

COOPERATION WITH ÖRESUNDSKRAFT ON A NEW GAS-DRIVEN HEAT PUMP AletterofintenthasbeensignedwithÖresundskraftoncooperationforfieldtestsofgas-drivenheatpumpsequippedwithSaltXtechnology.ThiswilltakeplaceincooperationwithoneofEurope’sleadingOEMmanufacturersofheatpumps.SALTX WINS PRESTIGIOUS CONTRACT FOR THE DEVELOPMENT OF ENERGY STORAGE FOR HOUSEHOLDS IN COOPERATION WITH A GLOBAL OEMAcontracthasbeensignedwiththeUSpowercompany,BonnevillePowerAdministration,todevelopanenergystoragesystemforhouseholds.TheprojectwillbecarriedoutinclosecollaborationwithOptimizedThermalSystemsandaglobalmanufacturerofheatingandcoolingproducts.SUCCESS OF SALTX TEST OF LARGE-SCALE ENERGY STORAGESaltXTechnology,theSwedishenergystoragecompany,hassuccessfullycompletedverificationtestingofSaltXpatentedtechnology for large-scale energy storage -EnerStore.Theverificationwascarriedoutinthelarge-scaletestinglaboratoryatDeutschesCentrumfürLuft-undRaumfahrt(DLR)(theGermanAerospaceCenter),Germany'sequivalentofNASA.THE BOARD OF DIRECTORS PROPOSES A RESOLUTION TO THE AGM IN APRIL FOR A NEW CAPITAL ISSUEThe Board of SaltX Technology has proposed

aresolutiontoshareholdersattheAGMonApril20todecideonacapitalissuewithpreferentialrightsforshareholders,providingtheCompanywith100MSEK.Itisproposedthatthecapitalissuecovers8.9millionshares.Thesenewsharesareequivalentto17percentofthetotalshareholdingintheCompany.Thecapitalwillbeusedtoincreasethepaceofinvestmentsinitsareasofapplication,andinEnerStoreenergystorageinparticular.Seetheseparatepressrelease.

Significant events


SaltX Technology is a Swedish innovation company that develops and sells a patented energy storage technology, which is marketed under the SaltX™ brand name. Customers are primarily major global OEM companies such as Alfa Laval, Mobile Climate Control and Rheem.

Thetechnologymakesitpossibleto store energy in salt in order to subsequentlyrecoveritintheformofheatand/orcold.Thetechnologytherebyenablesamoreefficientuseofenergyandconsiderableenergysavings,withlowercostsandreducedemissionsasaresult.Thetechnologyalsoallowsamoreflexibleuseofenergyfromrenewablesources,wherethechallengepreviouslyhasbeenpreciselyinthepossibilityofstorage.Astheuseofrenewableenergysourcesincreases,itbecomesincreasinglyimportanttobeabletostoretheenergyinacost-effectivewayandthenbeabletouseit.

SAVING ENERGY AND COSTSCustomersareprimarilymajorglobalOEMcompaniessuchasAlfaLaval,MobileClimateControlandRheem.ByintegratingSaltXtechnologyintheirrespectiveheatingandcoolingproducts(heatpumps,thermalsolarcollectorsandairconditioningsystems),majorenergyandcostsavingsaremadepossible.

FOCUS ON FOUR APPLICATIONSSaltXTechnology'stechnologycanbeappliedinawiderangeofapplicationareas.Therearecurrentlyfourareasofapplication:Gas-drivenheatpumpsforhotwateranddomesticheating(HeatBoost),Thermalsolarcollectorswithintegratedheatingandcoolingforbuildings(SunCool),Heat-drivencoolingintrucksandheavydutyvehicles(VerdAcc)and;Storageofrenewableenergy(EnerStore)

The focus for Heat Boost andVerdaccisonpreparingandcarryingoutfieldtrials,industrialisationandcommercialisationwhileEnerStoreisperformancetested.Inregardtothermalsolarcollectors,alicensewassoldin2015toSunCoolAB,whichisnowestablishingoperationsandproductionfacilitiesinChinawithalocalpartner.SaltXTechnologyisprovidingtechnicalsupportandknowledgetransfer.

Our Business

“ AS THE USE OF RENEWABLE ENERGY SOURCES INCREASES, IT BECOMES INCREASINGLY IMPORTANT TO BE ABLE TO STORE THE ENERGY IN A COST-EFFECTIVE WAY.”

NAME/CONCEPT AREA OF APPLICATION STATUS

HeatBoost Gas-drivenheatpumpsforhotwateranddomesticheating

Productcommerciallyfeasible.FieldtrialsintheUSAin2017,andinEuropeplannedfor2018.

SunCool Thermalsolarcollectorswith integratedheatingandcooling forbuildings

Small-scaleproductionstarted.Fullserialproductionin2017.

VerdAcc Heat-drivencoolingintrucks andheavyvehicles

Conceptverified.Full-scaleprototypeinvehiclesplannedfor2017.

EnerStore Storageofrenewableenergy Conceptverified.Full-scalepilot in2017.

BUSINESS MODEL

COMPONENT MANUFACTURERS

OEM CUSTOMERS

CONSUMERSAND

DISTRIBUTORS

Materials

Licenses

Support

SaltX’sBusinessModelconsistsofsalesinthreeparts;SaltXmaterial,licensesandservice.ThelargestfuturesourceofrevenueisthepatentedmaterialSaltX,andthelicensetousethis.

COMMERCIAL

VERIFICATIONFIELD TRIALS SERIAL PRODUCTIONCONCEPT VERIFICATION

FULL-SCALE

PROTOTYPE

DEVELOPMENT STEPS


REVERSED ACQUISITIONSaltXTechnology’sgroupstructurewas created through SaltX Technology HoldingAB,thecompanylistedonNasdaqFirstNorth,acquiringClimateWellABinspring2016bymeansofanissuefornon-cashconsideration.SaltXTechnologyHoldingtherebybecametheparentcompanyoftheGroup.Thetransactionisaso-calledreverseacquisitionwhichhasbeenreportedinaccordancewithK3.ThebasisisthatClimateWellistheacquiringcompanyasitsshareholdersgaincontroloftheGroup.SaltXTechnologyhadover4,000shareholderswithsmallshareholdingsandClimateWellhadaround150shareholders.TheacquisitionwasdecidedatSaltXTechnology’sAGM.TheacquisitionisrecognizedasareverseacquisitioninwhichtheconsolidatedbalancesheetispreparedasifClimateWellacquiredSaltXaspertheendofApril2016asthisistheacquiringcompanyinaccountingterms.SaltXisincludedintheconsolidatedaccountsfromthisdate.Comparativeperiodsin2015uptothetimeofacquisitionrelatetotheClimateWellGroup.

SaltX Technology is the legal parentcompanyandisrecognizedasthisinfinancialreporting.

OCTOBER-DECEMBER - Q4

INCOME, COSTS AND EARNINGS

Operating income

TheGroup’sincomeduringtheperiodtotalledTSEK3,548 (37,593).Netsalesin2015included

thesaleofrightstoSunCoolABforTSEK33,000regardinganapplicationforsolarpanelsinChina.Capitalizedworkperformedby

thecompanyforitsownusehasincreasedcomparedwithlastyear.Otheroperatingincomeconsists

primarilyofpublicfundingandhasdecreasedcomparedtolastyear.

CostsQ4coststotalledTSEK-10,338(-11,626)brokendownasotherexternalexpensesTSEK-4,303(-7,600),personnelcostsTSEK-5,593(-3,590)anddepreciationandimpairmentoffixedassetsofTSEK-442(-436).

Financial itemsProfit/lossfromfinancialitemsamountedtoTSEK399(393).Theincreaseininterestincomeisduetoaninterest-bearingreceivablefromSunCoolABfromthesaleoflicenserightsin2015.

Profit/lossProfit/lossafterfinancialitemswasTSEK-6,391(26,360).EarningspersharewereSEK-0.15(0.96).

CASH FLOW, INVESTMENTS AND FINANCIAL POSITION

Cash flow and liquidityCashflowinQ4totalledTSEK

-7,687(-589)orSEK-0.17(-0.02)pershare.GroupcashandcashequivalentsatendofyeartotalledTSEK18,812(5,513).Thishasincreasedduringtheyear,primarilyfromcapitalissuefunds.

Long-term receivablesLong-termreceivablesamountedtoTSEK28,455(27,120)andconsistofoutstandingreceivablesincludinginterestfromthesalein2015oflicensingrightstoSunCoolABforTSEK33,000.UndertheagreementwithSunCooltheclaimshallbeamortizedwithashareoftheroyaltyrevenuesSunCoolreceivesfromhavinglicensedtheacquiredrightstoaChinesepartner.Thispartnerhasstartedproductionofsolarpanelsbasedontheserights.Paymentofroyaltiesisexpectedtocommencetowardstheendof2018asthepartnerhasbeengrantedcredituntilthen to support the capital needs ataninitialstage.ThebusinessoperationsoftheChinesepartneraredevelopingaccordingtoplan.

Long-term liabilitiesLong-termliabilitiestotalled TSEK29,000(25,000)andconsistedofloansfromtheSwedishEnergyAgencyforTSEK25,000andAlmiFöretagspartnerforTSEK4,000.

InvestmentsDuringthequarter,investmentsweremadethataffectedcashflowforTSEK3,718(1,531).

EquityEquityattheendoftheperiodtotalledTSEK88,305(72,162)

orSEK1.97(2.62)pershare.Theequityratioonthesamedatewas69(67)percent.

JANUARY-DECEMBER

INCOME, COSTS AND EARNINGS

Operating incomeTheGroup’soperatingincomeamountedtoTSEK15,172(51,753).NetsalestotalledTSEK1,459

comparedwithTSEK40,752inthepreviousyear.In2015,netsales included the sale of rights toSunCoolABforTSEK33,000regardinganapplicationforsolarpanelsinChina.Capitalizedworkperformedby

thecompanyforitsownusehasincreasedcomparedwithlastyear.Otheroperatingincomeconsists

primarilyofpublicfundingandhasdecreasedcomparedtolastyear.

CostsCostsduringtheyeartotalledTSEK-35,906(-31,527)brokendownasexternalexpensesTSEK-16,279(-15,728),personnelcostsTSEK-18,199(-14,282)anddepreciationandimpairmentoffixedassetsofTSEK-1,428(-1,517).Thecostswerehigherin2016

comparedwith2015.ExternalcostsincludecostsforworkinconnectionwithlistingonFirstNorth,andcostsformaterialanddevelopingprototypesandotherdevelopmentwork.

Financial itemsProfit/lossfromfinancialitemstotalledTSEK1,562(433)Theincrease is due to an interest-

Financial overview


bearingreceivablefromSunCoolABinregardtosalesoflicenserightsin2015.

Profit/lossProfit/lossafterfinancialitemswasTSEK-19,172(20,659)orSEK-0.50(0.75)pershare.

CASH FLOW, INVESTMENTS AND FINANCIAL POSITION

Cash flow and liquidityCashflowfortheperiodtotalledTSEK13,299(-9,927)orSEK0.47(-0.36)pershare.

InvestmentsInvestmentsweremadeduringtheyearforTSEK747(5,046).TheseconsistedprimarilyofinvestmentsindevelopmentandpatentsforTSEK10,055(5,046),butthiswasoffsetbytheeffectofthereverseacquisitionbetweenSaltXTechnologyandClimateWell.

PARENT COMPANYTheoperationsoftheparentcompany,SaltXTechnologyHoldingAB,consistofmanagementoftheClimateWell

ABsubsidiaryandinmaintainingtheCompany’slistingonNasdaqFirstNorth.Theparentcompanyhadnoturnoverinthisyearorinthepreviousyear.Earningsbeforetaxamounted

toTSEK-3,515(-45,498).Theparentcompany’sdisposableliquidityatyear-endtotalledTSEK15,231(3,693).

SHARE CAPITAL

The Parent Company SaltX Technology HoldingShare capital at year-end totalled TSEK3,578,984.56consistingof44,737,307sharesatanominalvalueofSEK0.08.ThereisstillasmallnumberofsharesintheClimateWellsubsidiaryownedbyasmallnumberofshareholders.TheseshareswillbeexchangedforsharesinSaltXthatconstitutelessthanhalf(0.5)apercentofthetotalnumberofsharesinSaltX.InJuly2016,SkirnerAB,oneof

the largest shareholders of SaltX Technology,exercisedoptionsandsubscribedforsharesinClimateWell,asubsidiaryofSaltXTechnology,whichcontributed

MSEK4.5totheCompany.TheseshareshavebeenconvertedinNovemberinto1.04millionsharesinSaltXTechnology,equivalenttoadilutionof2percent.ThetransactionwascarriedoutintheformofanoffsetissueinwhichtheinputshareswerevaluedattheprevailingmarketpriceofapproximatelySEK14.Whenallshareshavebeenissued,thesharecapitalwillbeSEK3,580,173.36andcompriseatotalof44,752,167shares.

THE GROUPThesharecapitaloftheGroupatyear-endtotalledTSEK3,579(19,799).TheGroupconsisted,untilthedateofacquisition,oftheClimateWellGroup.ByrecognizingtheacquisitionasareverseacquisitionwhereClimateWellistheacquiringcompanyinaccountingtermsandSaltXisthelegalacquirer,thesharecapitaloftheGroupconsists of the share capital of SaltX fromthedateofacquisition.

SHARESShares in SaltX are listed on NasdaqFirstNorth.

Share warrantsSharewarrantshavealsobeenissuedinconnectionwiththenew capital issues during the year when shares and share warrants havebeenissuedasone“unit”.Atthesametime,justover 16millionsharewarrantshavebeenissuedthatwithfullsubscriptionshouldbringinaroundMSEK20throughthesubscriptionof4,052,625shares, fourwarrantsforeachshare,by31October2018atthelatest,equivalenttoadilutionofjustunder10percent.ThestrikepriceisSEK5pershare.

There were warrants in the ClimateWellsubsidiary,ofwhichjustunderhalfweresubscribedforbeforetheirexpiryinJuly2016,andtheremainderwerenotexercised.ThesharesweresubscribedforbySkirnerAB,oneoftheCompany’smainshareholders,whichcontributedMSEK4.5totheCompany,seeabove.

Options programTheAGMinApril2016alsodecidedtoissue1.5millionsharewarrantstobeofferedtosenior

CHANGE IN SHARE CAPITAL IN 2016 Change in Acc. share Change in Accumulated share capital capital no. of shares no. of shares

Openingbalance2016 360,945.00 882,310.00 -- 4,010,500NewcapitalissueMarch 660,000.00 1,542,310.00 3,000,000 7,010,500ReductionofsharecapitalinApril -981,470.00 560,840.00 -- 7,010,500Issuefornon-cashconsiderationMay 2,022,824.16 2,583,664.16 25,285,302 32,295,802NewcapitalissueJune 560,000.00 3,143,664.16 7,000,000 39,295,802Newcapitalissue(guarantorsandadvisers)June 176,000.00 3,319,664.16 2,200,000 41,495,802Issuefornon-cashconsiderationJuly 162,413.52 3,482,077.68 2,030,169 43,525,971Issuefornon-cashconsiderationOctober 13,573.52 3,495,651.20 169,669 43,695,640IssueofsharesfordebtsettlementNovember 83,333.36 3,578,984.56 1,041,667 44,737,307Issue for non-cash consideration planned 1,188.80 3,580,173.36 14,860 44,752,167

DATA PER SHARE, GROUP

Q4 2016 Q4 2015 FY 2016 FY 2015Earningspershare,beforedilution -0.15 0.96 -0.50 0.75Earningspershare,afterdilution -0.15 0.96 -0.50 0.75Equitypershare 1.97 2.62 1.97 2.62Cashflowpershare -0.17 -0.02 0.47 -0.36


managementandallemployeesintheCompany,partlytoreplaceexistingprogramsinClimateWell.Atyear-end,employeeshadacquired483,000ofthesewarrantsatmarketvalueandtheremainderareheldbytheClimateWellsubsidiary.Oneoptionequatestoone(1)share,thesubscriptionperiodis28Mayto29June2019,andthestrikepriceisSEK5pershare.Withfullexerciseofthewarrants,theCompanywillreceiveMSEK7.5.Thesesharescorrespondtoapotentialfurtherdilutionof3percent.

EARNINGS PER SHAREEarningspersharefor2016amountedtoSEK-0.48(0.75)basedonanaveragefigureof44,057,722(27,500,000)shares.Forthecomparativeyear2015,thenumberofshareswasbasedonthenumberofsharesissuedinconnectionwiththeacquisitionofClimateWellinthereverseacquisition,correspondingtothevalueofClimateWellinnumberSaltXshares.For2016,thenumberofshareshasbeenbasedonthenumberofsharesfromtheacquisitionofClimateWellplustheadditionalsharesthatexistedinSaltX,andadditionalsharesthathavebeenaddedthroughcashissuesduringtheyear.Whencalculatingthenumberofsharesafterfulldilution,theadditionalsharesissuedfromoptionprogramshavebeentakenintoaccount.Thenumberofactualshares

outstandingwas44,737,000shareson31December.

REVERSE ACQUISITION OF SALTX TECHNOLOGY HOLDING ABAttheAGMon7April2016,theshareholders of SaltX Technology HoldingAB(“SaltX”)decidedtoissue

new shares in SaltX in exchange forthecontributioninkindinClimateWellAB.Theissuefornon-cashconsiderationwasregisteredon2May2016,whichresultedintheshareholdersofClimateWellgainingcontroloverSaltX.InaccordancewithK3,thetransactionbetweenSaltXandClimateWellconstitutesareverseacquisition.Areverseacquisitionmeansthatthelegalacquirer,i.e.theunitthatissuesthesecurity,SaltX,becomestheacquiredcompany.ClimateWellistherebyconsideredtobetheacquirerinaccountingtermswhileSaltXisconsideredtobetheacquiredcompany.

Purchase price transferredThepurchasepriceisdeterminedonthebasisofthevalueofSaltXpriortothenewcapitalissue.ThisvalueamountedtoTSEK25,939(7,010,500sharesatavalueofSEK3.70,whichwasthesharepriceon2May2016),whichisthepurchasepriceofthenetassetsofSaltX.GiventhatSaltXdidnotcarry

onanyoperations,thedifferencebetweennetassetsacquiredandthepurchasepriceisviewedasacapitalissuecostandrecognizedinequity.

IDENTIFIED ACQUIRED ASSETS AND LIABILITIES TAKEN OVER (SALTX), TSEK

Receivables 9,006Cashandbankdeposits 1,986

Currentliabilitiesandaccruedexpenses -191

Acquired net assets 10,801

IntheestimationoftheCompany’s

management,thefairvalueofacquiredassetsandliabilitiestakenoverisequivalenttotheirbookvalue. COST OF REVERSE ACQUISITION, TSEK

Purchaseprice 25,939

Fairvalueofacq uirednetassets -10,801

Cost of reverse acquisition 15,138Nocostshavebeenrelatedtotheacquisition,costsarerelatedinsteadintheirentiretytoissuecosts.Asper31September2016,

13,793shareswerenotyetsubscribedforwhichiswhyaliabilityofTSEK209hasbeenrecognizedrelatedtotheongoingexerciseprocess.

SIGNIFICANT RISKS AND UNCERTAINTIESAllbusinessactivityandshareownershipisassociatedwithrisk.Risksthataremanagedwellcanentailopportunitiesandvaluecreation,whiletheoppositecanleadtodamageandlosses.Theriskscanbedividedintomarket-related,operations-relatedandfinancialrisks.SeealsotheCompanydescriptiononthecompanywebsite>>

ANNUAL GENERAL MEETING OF SHAREHOLDERS, ANNUAL REPORT AND APPROPRIATION OF EARNINGSNoticeoftheAnnualGeneralMeetingtobeheldon 20Aprilispublishedtoday.The2016AnnualReportwillbeavailableontheCompanywebsitenolaterthanApril6,togetherwiththeotherdocumentsfortheAGM.TheBoardproposesnodividend.

ACCOUNTING POLICIES AND THE BOARD’S STATEMENTThissummaryyear-endreportfortheGrouphasbeenpreparedin accordance with the Swedish AccountingStandardsBoard’sgeneralrecommendationsBFNAR2012:1andtheapplicableprovisionsoftheSwedishAnnualAccountsAct.Theyear-endreportfortheparentcompanyhasbeenprepared in accordance with Chapter9oftheSwedishAnnualAccountsAct.ThesameaccountingpoliciesandcalculationbaseshavebeenappliedfortheGroupandtheparentcompanyasinthemostrecentannualreport.TheBoardandtheCEOconfirm

thattheyear-endreportprovidesatrueandfairoverviewoftheCompany’soperations,positionandearnings.

Stockholm,17March2017The Board of Directors

ÅkeSund JuanHernandez TommyNilsson Chairman BoardMember BoardMember

OlleNordström LennartRolfsman KarlBohman BoardMember BoardMember CEO

The year-end report has not been reviewed by the Company’s auditor.

http://corp.saltxtechnology.com/sv/investerare/bolagsbeskrivning/.

http://corp.saltxtechnology.com/sv/investerare/bolagsbeskrivning/.


Consolidated Income Statement

Consolidated Balance Sheet

TSEK Q4 2016 Q4 2015 FY 2016 FY 2015

Operating income Operatingincome Netsales 257 33,346 1,459 39,456Capitalizeddevelopmentexpenses 2,932 1,373 9,341 4,400Otheroperatingincome 359 2,874 4,372 7,897TOTAL OPERATING INCOME 3,548 37,593 15,172 51,753Operating expenses Otherexternalexpenses -4,303 -7,600 -16,279 -15,728Personnelcosts -5,088 -3,590 -17,694 -14,282Depreciationandimpairmentoffixedassets -442 -436 -1,428 -1,517TOTAL OPERATING EXPENSES -9,833 -11,626 -35,401 -31,527OPERATING PROFIT/LOSS -6,285 25,967 -20,229 20,226 Profit/loss from financial items Otherinterestincomeandsimilarincome 737 431 1,960 493Interestexpenseandsimilarcosts -51 -38 -111 -60PROFIT/LOSS FROM FINANCIAL ITEMS 686 393 1,849 433PROFIT/LOSS AFTER FINANCIAL ITEMS -5,599 26,360 -18,380 20,659PROFIT/LOSS -5,599 26,360 -18,380 20,659

DATA PER SHARE, GROUP

SEK Q4 2016 Q4 2015 FY 2016 FY 2015Earningspershare,beforedilution -0.13 0.96 -0.48 0.75Earningspershare,afterdilution -0.11 0.96 -0.44 0.75

TSEK 2016-12-31 2015-12-31 ASSETS Fixed assets Intangibleassets Capitalizedexpenditurefordevelopmentwork 75,163 65,821Patentsandtrademarks 1,654 1,751 76,817 67,572Tangible assets Equipment,tools,fixturesandfittings 466 734 466 734Financial fixed assets Otherlong-termreceivables 28,455 27,120 28,455 27,120Total fixed assets 105,738 95,426

Current assets Advancepaymentstosuppliers - 378Accountsreceivables-trade 244 1,290Otherreceivables 1,238 908Prepaidexpensesandaccruedincome 2,330 4,515Cashandbankbalances 18,812 5,513Total current assets 22,624 12,604TOTAL ASSETS 128,362 108,030

EQUITY AND LIABILITIES Equity Sharecapital 3,579 19,799Othercontributedcapital 375,854 325,110Otherequity -291,127 -272,747Total equity 88,306 72,162

Provisions Provisiosforclose-downexpenses - 403 - 403Long-term liabilities Otherliabilities 29,000 25,000 29,000 25,000Current liabilities Accountspayable-trade 2,253 1,620Liabilitiestominority 209 -Otherliabilities 336 747Accruedexpensesanddeferredincome 8,217 8,098Totalcurrentliabilities 11,015 10,465TOTAL EQUITY AND LIABILITIES 128,362 108,030


Consolidated Statement of Changes in Equity

Consolidated Cash Flow Statement

Other Other TotalTSEK Share capital contributed capital equity equity

OpeningbalanceJan1 19,799 325,110 -272,747 72,162Effectofreversedacquisition -17,200 28,001 - 10,801Transactionswithminority 147 674 - 821Newcapitalissues 560 20,440 - 21,000Issueexpenses - -1,702 - -1,702Setoffissues 259 4,417 - 4,676Issueofwarrants - - 287 287Profit/lossfortheperiod - - -18,667 -18,667Closing balance Dec 31 3,579 375,894 -291,127 88,306

TSEK Q4 2016 Q4 2015 FY 2016 FY 2015

Operating activities Profit/lossbeforefinancialitems -6,285 25,967 -20,229 20,227Depreciationandimpairmentoffixedassets 441 436 1,428 1,517Adjustmentforitemsnotincludedincashflow,etc. -262 - -361 -131Interestreceived 399 393 1,562 433 -5,183 26,796 -17,600 22,046

Decrease/increaseofcurrentreceivables -911 -26,721 2,754 -28,075Increase/decreaseofaccountspayable-trade 1,419 488 633 898Increase/decreaseofotheroperatingliabilities 1,508 455 262 250Cash flow from changes in working capital 2,016 -25,778 3,649 -26,927Cash flow from operating activities -3,167 1,018 -13,951 -4,881 Investment activities Investmentsinintangibleassets -3,329 -1,531 -10,215 -5,046Investmentsintangibleassets 14 - -190 -Acquisitionofsubsidiaries - - 10,992 -Increase/decreaseinlong-termreceivables -405 - -1,335 -Cash flow from investment activities -3,720 -1,531 -748 -5,046 Financing activities Loans - - 4,000 -Newcapitalissues -800 - 23,998 -Cash flow from financing activities -800 - 27,998 -

Cash flow for the period -7,687 -589 13,299 -9,927Cashandcashequivalentsatbeginningofperiod 26,499 6,102 5,513 15,440Cashandcashequivalentsatendofperiod 18,812 5,513 18,812 5,513

Parent Company Income StatementTSEK Q4 2016 Q4 2015 FY 2016 FY 2015

Operating expenses Otherexternalcosts -444 -1,349 -3,372 -4,285Personnelcosts - -32 -355 -234Depreciationandimpairmentoffixedassets - 15,000 - -Otheroperatingexpenses - -15,000 - -15,000TOTAL OPERATING EXPENSES -444 -1,381 -3,727 -19,519 Profit/loss from financial items ResultfromholdingsinGroupcompanies - -1,694 - -27,190Otherinterestincomeandsimilarincome 212 21 212 1,211PROFIT/LOSS FROM FINANCIAL ITEMS 212 -1,663 212 -25,979

RESULT BEFORE DISPOSITIONS AND TAX -232 -3,044 -3,515 -45,498

PROFIT/LOSS FOR THE PERIOD -232 -3,044 -3,515 -45,498


Parent Company Balance SheetTSEK 216-12-31 2015-12-31

ASSETS Fixed assets Financialfixedassets Participationsinsubsidiaries 97,039 -Total fixed assets 97,039 - Current assets Othercurrentreceivables 261 663AccountsreceivablefromGroupcompanies 14,212 -Interimreceivables 53 -Cashandbankbalances 15,231 3,693Total current assets 29,757 4,356TOTAL ASSETS 126,796 4,356 EQUITY AND LIABILITIES Equity Restrictedequity Sharecapital 3,579 882

Non-restricted equity Sharepremiumreserve 174,340 51,524Accumulatedprofit/loss -48,973 -3,475Profit/lossfortheperiod -3,515 -45,498 121,852 2,551Total equity 125,431 3,433

Current liabilities Accountspayable-trade 452 401Interimliabilities 913 522Total current liabilities 1,365 923TOTAL EQUITY AND LIABILITIES 126,796 4,356

Changes of Parent Company Equity

TSEK Share capital Share premium Accumulated Profit/loss Total reserve profit/loss for the period equity

Opening balance Jan 1 882 51,524 -3,475 -45,498 3,433Transferofprofit/loss -45,498 45,498 -Reductioninsharecapital -981 981 - - -Newcapitalissues 1,220 28,780 - - 30,000Issueexpenses -1,702 - - -1,702Issuefornon-cashconsideration 2,199 80,257 - - 82,456Setoffissues 259 14,500 - - 14,579Profit/lossfortheperiod - - - -3,515 -3,515Closing balance Dec 31 3,579 174,340 -48,973 -3,515 125,431

Parent Company Cash Flow StatementTSEK Q4 2016 Q4 2015 FY 2016 FY 2015

Operating activities Profit/lossbeforefinancialitems -444 -1,381 -3,727 -19,519Depreciationandimpairmentoffixedassets - - - 15,000 Interestreceived 212 20 212 1,211 Decrease/increaseofcurrentreceivables -68 -374 369 920Increase/decreaseofaccountspayable-trade 302 -47 1,112 -117Increase/decreaseofotheroperatingliabilities 243 -50 -388 209Cashflowfromchangesinworkingcapital 477 -471 1,093 1,012Cash flow from operating activities 245 -1,832 -2,422 -2,296 Investment activities Investmentsinintangibleassets - -8 - -4,967Otherlong-termfixedassets - -13,264 - -Investmentsinsubsidiaries - 11,580 - -13,916Cash flow from investment activities - -1,692 - -18,883 Financing activities Newcapitalissues -825 - 28,172 -Loantosubsidiaries -5,212 - -14,212 -Cash flow from financing activities -6,037 - 13,960 - Cash flow for the period -5,792 -3,524 11,538 -21,179Cashandcashequivalentsatbeginningofperiod 21,023 7,217 3,693 24,872Cashandcashequivalentsatendofperiod 15,231 3,693 15,231 3,693

22 SaltX Technology Holding AB (publ) Year-end Report 2016

Other information

CALENDARTheAnnualGeneralMeeting 20April2017InterimreportQ1 23May2017InterimreportQ2 25August2017InterimreportQ3 9November2017Unauditedyear-endreport2017 9March2018

ADDRESSSaltXTechnologyHoldingAB(publ).Instrumentvägen2012653HÄGERSTEN

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