Crown Energy: Nine month report, January-September 2024

THIRD QUARTER – July-September 2024

• Turnover amounted to SEK 11,778 thousand (7,327).
• Operating profit was SEK -24,221 thousand (-26,769).
• Net financial items amounted to SEK 20,194 thousand (13,972).
• Unrealised changes in the value of properties amounted to SEK 2,417 thousand (-6,785).
• Profit/loss before tax was SEK -1,610 (-19,582) thousand, and profit/loss after tax amounted to SEK -2,275 (-9,118) thousand.
• Profit/loss attributable to owners of the parent company amounted to SEK 1,457 thousand (-6,272) corresponding to SEK 0.00 (-0.01) per share.

Period – January-September 2024

• Turnover amounted to SEK 29,194 thousand (28,192).
• Operating profit was SEK -68,346 thousand (-78,263).
• Net financial items amounted to SEK -4,194 thousand (142,359).
• Unrealised changes in the value of properties amounted to SEK 19,261 thousand (-33,753).
• Profit/loss before tax was SEK -53,279 thousand (30,343) and profit/loss after tax amounted to SEK -45,808 thousand (31,921).
• Profit/loss attributable to owners of the parent company amounted to SEK -39,106 thousand (39,243), corresponding to SEK -0.08 (0.08) per share.

EVENTS DURING THE REPORTING PERIOD January-September 2024

• Crown Energy received USD 8 million under the October 2021 agreement for its oil and gas asset disposal, bringing the total to USD 115 million.
• On 30 April 2024, a strategic agreement with Proger and AccYouRate founders was announced, but certain provisions of the agreement were subject to the approval of the General Meeting in Crown and was subsequently not approved at both the June AGM and August EGM. Crown Energy is maintaining an active dialogue with the involved parties and are pursuing alternatives.
• On 10 June 2024 Crown Energy held the Annual General Meeting. During the meeting a new member of the Board was elected, Patrik Fagerholm, whereby Jean Benaim left the board. On 5 August Crown Energy held the continued Annual General Meeting as well as an Extraordinary General Meeting. During the meeting one more member to the board was elected, Fanny Wallér. With both Patrik and Fanny as new board members Crown Energy have now reinforced the board with two independent Swedish directors.
• Three PNRR* projects were awarded to AccYouRate during the third quarter 2024, focusing on defense, healthcare, and occupational health in collaboration with Rebel Alliance, InfoSat, and Linea Aperta.

EVENTS AFTER THE PERIODS END

• During the reporting period Crown Energy has advanced in full the 400,000,000 kwanza (approx. 400,000 EUR) loan to the Angolan subsidiary of KAYA Climate Solutions (“KAYA”), which was communicated in February 2024, providing Crown an option to convert such debt to a 10% shareholding in the parent company KAYA. After the reporting period Crown Energy has entered into an additional EUR 500,000 convertible loan agreement, which if fully advanced enables Crown Energy to convert the loan into an additional 10% shareholding in KAYA, in alignment with the communicated goal of becoming a larger shareholder in the company.
• In November 2024, Crown Energy was notified that the Swedish Companies Registration Office had appointed a special examiner. The appointment was made following the 9th of September Extraordinary General Meeting whereby minority shareholders voted in favor of the appointment of a special examiner to be appointed in Crown, and their subsequent filing of the decision. The timeline and duration of the examination are yet to be determined, and Crown Energy is committed to cooperating fully.
• After the reporting period Crown Energy has received an additional 8 million USD under the October 2021 agreement for its oil and gas asset disposal, bringing the total to USD 123 million.

*PNRR stands for Piano Nazionale di Ripresa e Resilienza (National Recovery and Resilience Plan), Italy's program funded by the European Union to support economic recovery, resilience, and sustainable development through targeted investments and reforms.

CEO STATEMENT
Dear Shareholders and Investors
The third quarter of 2024 has been a period of continued progress and development for Crown Energy. We see progress across our business areas, reinforcing our commitment to sustainable growth and building a solid foundation for positive long-term impact in the regions where we operate.
AccYouRate Group:
Our investment in AccYouRate continues to prove its value and potential. During the third quarter, we made notable progress on key initiatives. Building on the interest shown earlier this year, AccYouRate has advanced initial phases of its five pilot contracts, receiving encouraging feedback that reaffirms demand for our sensorized garments and monitoring services.
AccYouRate continues its global growth through active discussions with strategic partners and potential distributors while advancing its product development. Recently, our devices were tested in specialized high-altitude trials to assess their effectiveness in challenging conditions, and we are enhancing our current solution to address evolving healthcare needs, aiming for a competitive edge in continuous monitoring.
Furher, three PNRR (EU based) projects were awarded to AccYouRate during the third quarter 2024 to support high-tech development across diverse fields: defense, regional healthcare, and occupational health sectors. These projects enable us to refine our YouCare device for defense, healthcare, and corporate use. The projects are in collaboration with key partners Rebel Alliance, InfoSat, and Linea Aperta.
Asset Management and Services in Angola:
Our asset management and services business in Angola continues to perform well, with occupancy rates consistently above 90% due to strong demand for residential and office spaces, particularly from energy sector companies. New property requests remain steady, and we are seeing clients expand operations with commitments to long-term leases, often extending to five years. To address this rising demand, we are assessing options such as renovating and subleasing additional properties in Luanda.
This growth underscores Angola’s positive economic outlook, and we are optimistic about deepening our involvement not only in asset management and services but also across our other business ventures. However, in our reporting the performance has been affected by currency translation effects which occurs when local income and currency denomination of our assets are translated into our reporting currency, which is SEK.
KAYA Climate Solutions
Our strategic partner, KAYA Climate Solutions, is advancing its environmental projects in Angola, having secured a project location in Malanje province and working with local authorities and partners to establish the framework for carbon credit qualification. Following our February 2024 agreement, Crown Energy has now fully advanced the 400,000,000 Kwanza loan (approximately EUR 400,000) to the Angolan subsidiary of KAYA, which while advanced at the local subsidiary level gives us the option to convert this loan into a 10% stake in the German parent company KAYA. To further support the initiative, we have provided an additional EUR 500,000 convertible loan, which allows us to increase our potential stake by another 10%. Together, these combined investments position Crown Energy to increase its stake in KAYA, in alignment with the communicated opportunity to become a larger shareholder. More information about our partnership can be found in our previous announcements and reports.
Clean Energy Initiatives
Aligned with our sustainable growth strategy, we are reviewing renewable energy opportunities in Angola, with a focus on green hydrogen utilising hydroelectric and solar power as energy sources. We are currently engaging partners to identify and map ongoing and upcoming opportunities, key players, and projects within the sector in Angola. This initiative seeks to lay the groundwork for a policy framework supporting the development of a green hydrogen strategy in Angola, highlighting key factors and opportunities. It will also provide a comprehensive overview of the current landscape, including significant stakeholders and emerging initiatives, taking into account that plans are still in the early development stage. Lastly, the strategy will consider how the oil and gas sector is expected to contribute to Angola’s energy transition, aligning with broader sustainable development goals.
 
Yoav Ben-Eli
CEO, Crown Energy