Slides
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Q3 Interim report Markus Jönsson (CEO) & Magnus Henell (CFO) Oct 17th, 2025
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Introduction
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I-Tech today A scalable business with plenty of additional potential Antifouling coatings “A consolidated market” ✓ Unique technology ✓ Intellectual property and formulation know-how ✓ Asset light - Outsourced production ✓ A low market penetration: >3.000 ships out of 110.000 “Antifouling paint is essential to ship performance” ----- Just 10% fouling can increase fuel consumption and CO2 emissions by 30-40%
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Emissions to air - CO2 emission reduction Emissions to water - Release of chemical substances Transfer of invasive species between ecosystems Examples of key Maritime shipping challenges
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lick icon in the middle to change image Enabling better coatings • Swedish innovation - Pharmaceutical substance • Unique mode of action - Non-lethal. temporary effect • In more than 30 commercial paints • By 6 of 9 the largest paint companies • Applied on over 3000 vessels Commercially proven • Efficient in low concentrations • Enables innovative paint development Picture of test patch provided by Chuguko Marine Paints 1 2 3 Our solution:
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Why are barnacles such a challenge? • Big impact on drag resistance • Thrives in most marine environments • Superglue themselves on surfaces and are very difficult to remove • Damages the hull coating ➔ The most efficient strategy is to try to prevent them from settling on your ship hull
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How big is the barnacle fouling problem for the global merchant fleet? HullPic 2020 249 ships HullPic 2025 685 ships
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Barnacle fouling is mainly an issue for slow steaming vessels with lower activity levels Market perception #1
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All vessel types have issues with barnacles more than 70% of car carriers and container ships have barnacle fouling
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Barnacle fouling can be completely avoided with some coating technologies Market perception #4
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Barnacle fouling can be an issue for all coating technologies No perceivable difference between the major product families Silicones
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Ship-to-ship case study* has demonstrated the value of Selektope Inside *see Calypso study
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Most ships had some barnacle fouling. 1/3 showed unacceptable levels of fouling. generating >40% additional fuel use. Out of the 761. a total of 12 vessels were painted with a Selektope-containing paint. Condition upon dry-docking More than 33% of all inspected ships have unacceptable levels (>10%) of barnacle fouling 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Flatt bottom Vertical sides Selektope® significantly improves performance Image: “The report reveals that some of the hard animal fouling was on areas with coating breakdown“ Indocking data underscores the value of Selektope® 761 ships inspected 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Flatt bottom Vertical sides Presence of Barnacles as percent of total observations Barnacle coverage as percent of total under water area Note: Safinah Group provided the data (2025) and analysis and conclusions are made by I -Tech Ships with products containing Selektope appear to arrive in drydock with <10% animal fouling coverage in most cases. It should be noted that based on the small sample size and the fact that data on IWC is not available for every s hip. the effect may also be related to IWC timing / frequency.
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“More than half of the ships with severe macrofouling* opted for the same manufacturer and often the same product” Drydocking insights: Coating Performance and coating selection trends** * >20% of total underwater area covered with macrofouling on arrival in drydock , **Visualization based on data for vertical sides of ~450 ships, Note: 20% of vessels observed with up to 1% of the total area covered with hard macrofouling on arrival in drydock - Average hull surface area in the sample >12,000 m2 A lack of systematic review of fleet coating performance Safinah helps to select the right antifouling coating for your fleet
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Size: 74.000 DWT Average activity level: 42% Route: Middle East, Africa, Europe Six Hull & propeller cleanings Dry-docking However, the case for premium antifouling coatings is solid Show us the money: Performance monitoring help to monitor and manage biofouling Performance monitoring: Speed over time (data from noon reports) 100% Oil tanker “Earnings potential of $1.2 million over 5 years in a normal market” Low tier High tier -$123k -$430k -$1.533k -$153k -$210k -$70k Coatings cost examples courtesy of Jotun Speed loss and productivity loss on average 10% with low tier vs. 1% with high tier Charter rate: $20k per day in a normal market, cleaning cost: $15k, taking 24h => total cost $35k Grey color equals inactivity Lifetime costs: Antifouling coating Average speed loss over the docking cycle: -10% (premium coating -1%)
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Market outlook Sources: Clarksons. World Fleet- & Shipyard monitor, Sep 2025 Repairs by country (‘24-’25) ChinaOther Asia Turkey Europe RoW ▪ Improved sentiment – charter rates have strengthened ▪ New-build contracting close to 10-year average, but 50% below last year ▪ Global ship repair activity has jumped 7% this year - the uptick comes as an ageing fleet hits key survey milestones and as owners rush to install energy-saving technologies (ESTs) to meet tightening decarbonization goals
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Interim results
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0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2024 2025 Millions Quarterly sales (USD) “Q3 – Our third strongest quarter” 10% organic sales growth ▪ Exceptionally strong sales in Q4 2024 and Q1 2025 ▪ Weak sales in Q2 mainly due to variation between quarters ▪ Macro conditions for shipping still positive
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“Q3 – flat line sales in SEK but higher profitability” ▪ Net sales on par with Q3 2024 ▪ 10% currency adjusted growth ▪ Gross margin continuously on high level ▪ 32% EBITDA margin ▪ Strong cash balance (+44%) All amounts (MSEK) 2025 2024 Growth Jul-Sep Jul-Sep ’25/’24 Net Sales 41.0 40.8 0.5% Gross margin 57% 52% 10% EBITDA 13.1 11.5 14% EBIT 11.1 9.4 18% Operating cashflow 23.2 10.5 121% Cash balance 135.7 94.3 44%
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Asia sales split by country Korea Japan China Singapore Geographical spread YTD Northeast Asia continues to drive top-line 37% X% - Share of total Sales Overall sales split by region Asia Europe RoW 98% 2% 36%21% 6%
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Outlook
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Timeline - 2025 Selektope’s re-registration process in Europe BPR Implementation dialogue & DG Sante Cabinet meetingJul Letter to DG Sante Cabinet sentAug SCBP Q3 meetingSep SCBP Q4 meetingDec Jun SCBP Q2 meeting – Selektope’s current approval extended by 1-year Link
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New growth vectors and business diversification Business development pipeline Resins 30-40% COATING FORMULATION (COST SPLIT) Pigments Additives 30-40% Solvent Group Complementing technologies Additives Active ingredients Other (e.g., additives, binders) Other marine markets Aquaculture Yacht market New models Antifouling tech. Hull performance Focus
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Business Outlook Currency headwind and market turbulence New customer product launches & new strategic partnerships Operational improvements & Advocacy linked to regulations