Photocat A/S : Interim report - H2 2021

INTERIM REPORT H2 2021

H2 2021: SUMMARY

·Highlights during the second half of 2021

• Revenue in the second half year of 2021 was 6.628 tDKK which compared to second half of 2020 was an increase of 16,1%
• For the full year revenue grew 6,8% compared to 2020 and reached 13,5 mDKK. - a positive development in a year highly influenced by Covid-19.
• NOxOFF was a solid performer with an increase in sales of 34,9% compared to 2020.
• New agreement for DIY market Photocat garden in Denmark and Switzerland.
• First Life Cycle Assessment (LCA) made on Photocat technology shows a 100 fold environmental benefit. Furthermore, every time we remove a kg of NOx with the technology we have saved 10 kg of CO2.
• First Licensee on Bitumen technology signed.

Highlights after the second half year of 2021

•	First Bitumen licensee in Denmark and first projects already signed.
•	Agreement signed with Nanostone A/S (6 consecutive gazelle years) for the joint effort of
				▪	…
		using Photocat technology in BtB (Business to Business) and BtG (Business to Government)
		markets.
		Amounts in DKK '000s	1 Jul - 31 Dec	1 Jul- 31 Dec	Year-to-date	Full Year
			2021		2020	2021	2020**
		Revenue from	6,229.0		5,438.9	12,674.2	12,111.9
		photocatalytic fluid
		Revenue from
		Consultancy,	399.1		274.6	809.3	509.2
		Equipment & Other
		Gross Profit	2,809.2		2,298.5	5,286.8	4,941.7
		EBITDA	310.3		-160.7	-19.0	63.7
		P/L before Tax	-937.7		-1,405.4	-2,629.4	-2,211.9
		Net Profit	-747.0		-1,021.4	-2,281.9	-1,827.9
		Total Assets	18,173.9		16,812.7	18,173.9	16,812.7
		Equity	11,181.9		13,463.8	11,181.9	13,463.8
		Debt	6,992.0		3,348.9	6,992.0	3,348,9
		Cash at Hand	1,416.4		2,052.2	1,416.4	2,052.2
		** Audited

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INTERIM REPORT H2 2021

CEO LETTER

The first half year of 2021 showed a …….compared to	Michael Humle
CEO
the same period last year. The revenue increased by ….. compared to …..

When I wrote the update it struck me that we have saved society for more than 118 mDKK in health cost using

official numbers. This is far more than we accumulated have made in revenue and clearly highlights what it means to contribute positively to the environment and climate agenda. At Photocat we are utterly proud to make such strong contributions in real money to our society. At the same time we now include CO2 reductions in our reporting. We do that as we have completed our Life Cycle Assessment (LCA) and published our contribution in peer reviewed scientific journal. We can therefore say that we have totally saved more than 1,4 mill kg CO2 by the end of year 2021.

Sales performance ended with a 16,1 % growth in second half 2021 to a turnover of 6.628 tDKK from 5.713 tDKK second half of 2020. The growth should be seen as satisfactory as we only slowly was able to rebuild on sales activity that was lost due to Covid-19 restrictions and their wide impact on ability to meet and present our innovative solutions to customers. It is our perception that we have a strong pipeline for 2022 and hope that Covid-19 will not impact our sales activities. In 2021 we reached a revenue of 13.484 tDKK compared to 12.621 tDKK in 2021. This is a growth of 6,8%.

Overall the year developed well with NOxOFF showing growth 34,9% up to a revenue of 10,1 mDKK in 2021 over 7,5 mDKK in 2020. The trend is growth in Denmark, Norway and Spain where we focus. Germany suffered in 2021 as the impact of Covid-19 on our sales activities were strong here.

Photocat Garden had a very disappointing year and we had to evaluate our long term partnership in Denmark and came to the conclusion that it needed a full revision. We had a fall in turnover of -70% to 0,6 mDKK in 2021 from 1,9 mDKK in 2020. This at the same time where investments in a marketing campaign were launched driving up our marketing costs. We have announced new partners in 2022 for the markets in Denmark and Switzerland.

Actifloor grew in accordance with expectations and was up 35,5% to 2,25 mDKK in 2021.

We were pleased to see that the NOxOFF test installation made in the spring 2021 near a Copenhagen school

showed a positive impact when results were reported in the autumn. This has led to sales acceptance of our technology and the City of Copenhagen has decided to increase the use of photocatalysis to combat air pollution. Their focus is initially to lower air pollution around schools and institutions.

It was also very positive that our patents and IPR protection has proven to be solid as we entered into a license agreement with one of the top Bitumen manufacturers in Europe. We expect to sign 3 new licensees to the technology in 2022.

As I look into 2022 I have strong growth expectations and I hope we have left Covid-19 behind us.	2
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INTERIM REPORT H2 2021

ENVIRONMENTAL IMPACT

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INTERIM REPORT H2 2021

ENVIRONMENTAL IMPACT

Accumulated NOx removed in kg

2015 2016 2017 2018 2019 2020 2021

412-	3715-	13524-	28229-
				55140-
				-
Equivalent		94239
	of the
	pollution
	from		-
147.616 cars
147616
	in 2021

Saved Health Cost - Improved Life Quality

118,1 mDKK 2021

0,3 mDKK 2015

Saved CO2 emission kg/year

0

400000

800000

1200000

1600000

2015

2016

2017

2018 282233

2019551405

2020	942393
2021	1476158

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