Enersize Oyj (“Enersize” or “the Company”) hereby submits a quarterly report for the period January – March 2021 and can report sales of EUR 72,248 to the Group, compared with EUR 53,902 for the corresponding to the period 2020. Please note that this is not a financial report but a summary of the most significant events during the past quarter. In accordance with the requirements of the Nasdaq Stockholm First North Growth Market's regulations, Enersize publishes financial reports on a half-year and full-year basis.
CEO ANDERS SJÖGREN COMMENTS
I'm very proud to present the New Enersize. After two and a half years as CEO, Enersize is now the company people talked about already at the IPO in the summer of 2017; an “ESG company” whose internationally scalable software and services are used to achieve real energy savings with extremely fast return on investment. Compressed air is everywhere, consumes 10% of the industry's electrical energy, enables advanced production processes, is non-explosive but very strong and is used to save lives in healthcare. Where the compressed air is used, we want to be and make a difference.
We are currently only 11 people. Is it serious to talk about internationalization and upscaling when we are so few?
Yes it is! We develop software services in the cloud and these can be scaled up in an international environment without drawing significantly more resources from our side. The business model is based on our partners having the resources required to deliver the actual energy optimization to end customers based on our software support. Last but not least, we at Enersize work with simplification and structure to be able to create repetitive processes that are easy to follow for us, for our partners and our customers. “We are what we repeatedly do. Excellence, then, is not an act, but a habit ”, was coined by Aristotle as early as the 300s BC.
How did it go about building the New Enersize?
The final and comprehensive change for Enersize began when we centralized to Lund at the end of August 2020 and the pieces quickly fell into place thereafter. The product packaging, the maturing steps and Enersize Academy, a professional company presentation, the partner model and the pricing model. Everything went in just a few months thanks to the preparatory work done in the organization, but which had not yet really found the form. It has been a good collaboration, but I still want to highlight our new sales and marketing manager Anders Lif as a guiding star in this work.
Will the company be cash flow positive in 2021?
During the end of 2020 and the beginning of 2021, we made a much faster change of the business model than we had planned earlier. This means that revenues may initially be somewhat lower due to the fact that we focus entirely on building up recurring revenues via our partners. Some key customers are retained, such as Scania, SKF, Grundfos and Saint-Gobain ISOVER. In India, we will run some pilots ourselves in collaboration with the World Wide Fund for Nature and H&M. Despite this, we can announce that the quarter's sales landed at EUR 72,248.
We expect that the revenue from our key customers will initially be our main source of revenue, and that our partners will gradually build up their business, which will begin to generate recurring revenue for Enersize in the longer term.
As the value of subscription revenues and a functioning partner model is so much higher than individual project revenues, we see that the company will develop positively even if it takes longer to become cash flow positive.
CEO, Enersize Oyj
"Company" or "Enersize" refers to Enersize Oyj with the Finnish organization number 2317518-8, Enersize Advanced Research AB with the Swedish organization number 559133-6846 or collectively Enersize Group. "First North" refers to Nasdaq First North Growth Market in Stockholm.
Significant events in 2021
- Enersize signed a partnership agreement with the Moroccan company SCOPP Solutions SARLAU Capital 100,000DH ("SCOPP Solutions"). SCOPP Solutions will use Enersizes Compressed Air Services, which are based on the company's Software-as-a-Service (“SaaS”) platform, to provide energy optimization of industrial compressed air in the North and West African markets, initially focusing on the local Moroccan market.
- The company received an invitation from the World Wide Fund for Nature (“WWF”) to participate in their work to reduce the resources consumed by suppliers' facilities in India. The company will present to Indian suppliers to H&M, which is a member of the Climate Savers program, at a webinar organized by WWF in March 2021.
- The company signed a letter of intent with eClouds Energy LLP (“eClouds”) in India. Enersize and eClouds will work together to deliver Enersize's Compressed Air Services to end customers in India.
- Erik Sundqvist takes over as CFO for Enersize.
Significant events after the end of the period
- Enersize received its first order from Morocco through its local partner SCOPP Solutions, regarding the first step in the company's three-stage sales model.
- Saint Gobain Sweden AB ISOVER in Billesholm has ordered a subscription to Compressed Air Services, the company's SaaS platform, for monitoring its compressed air system.
- Enersize received another order from the Moroccan partner SCOPP Solutions, regarding the first two steps in the company's three-step sales model.
- The company entered into an agreement on a credit facility totaling SEK 8.4 million with a small group of investors. The credit framework secures the company's liquidity needs for 2021 and gives the Board the opportunity to actively evaluate various alternatives for the company's long-term financing and enables the expansion of the new SaaS business model.
- The company agrees on an extension of ongoing pilot projects with Scania Industrial Maintenance AB. The agreement entails an extension of the collaboration, which may include various forms of development projects.