Absolicon (ABSL) investor relations material

Renewable energy and solar thermal technology

• Presentation focused on solar thermal energy, differentiating between solar heat for industrial processes and solar electricity from photovoltaics.

• Highlighted the importance of heat, which constitutes 50% of global energy use, and the need to decarbonize industrial heat processes.

• Introduced a patented parabolic solar collector capable of producing heat and steam up to 160°C, with robust certifications and installations in various climates.

• Emphasized the ability to store solar heat seasonally, enabling year-round supply for district heating and industrial use.

• Showcased reference installations with major companies in Europe and Africa, demonstrating fossil fuel replacement.

Business model, projects, and market strategy

• Core business is selling automated production lines for solar collectors, with high margins and recurring license fees.

• Current projects include negotiations in the US, Korea, and Zimbabwe, with a major focus on a large dairy company in the US and a SEK 250 million tender in Mongolia.

• Spain identified as a highly attractive market due to favorable support schemes and high solar irradiation; learning from recent Heat Auction participation.

• EU-funded R&D projects cover 60% of work hours, with recent wins including digital twins and a UNIDO-backed project in South Africa.

• Discussed the challenge of long sales cycles, often hindered by financial departments' reluctance due to payback periods, but expects improvement with new financial incentives.

Policy, market challenges, and future outlook

• Political frameworks and energy policies, especially in Sweden, limit domestic adoption despite technical readiness.

• New EU Emissions Trading System (ETS2) and Innovation Fund's Heat Auction are accelerating decarbonization and improving project economics.

• Company is considering owning production lines if capital becomes available, with potential support from the European Investment Bank.

• Reference projects have generally met performance expectations, with the Peroni installation highlighted for its alignment with projections.

• Upcoming milestones include potential agreements in the US and Mongolia, and strategic planning for the next major Heat Auction in Spain.