Kyoto Group AS

Share Issue/Capital Change • Mar 15, 2024

Kyoto raises funding to support acceleration of Heatcube installations

Kyoto raises funding to support acceleration of Heatcube installations

Oslo, Norway 15 March 2024 - Kyoto Group (Kyoto) is pleased to announce that the

company has successfully executed a directed share issue of NOK 39 million with

existing shareholders Spirax-Sarco, Iberdrola and Klaveness Marine.

The directed share issue is executed to fuel the acceleration of impending

Heatcube installations. The net proceeds from the investment will be used to

cover the company's liquidity needs, including pre-ordering of long lead-time

items for production of Heatcubes, strengthening of project execution

capabilities, continued market expansion and general corporate purposes.

"With this, we are taking another step on our funding plan, strengthening the

balance sheet to execute upcoming contracts. We are grateful for the strong

support shown by our highly professional shareholders, who know us well and

realize the commercial potential of Kyoto's technology," says Camilla Nilsson,

CEO of Kyoto Group.

Kyoto will continue its initiatives along the long-term funding plan, as

previously communicated to the market, to secure an adequate portfolio of

financing options to accelerate the growth trajectory and further market

expansions.

A total of 2,297,187 new shares in the company will be issued at a subscription

price of NOK 17 per share, raising gross proceeds of approximately NOK 39

million. The subscription price is based on the approximate volume weighted

average price traded in the shares on Euronext Growth Oslo in the period from 1

January 2023 until 31 December 2023.

The following investors have been allocated shares in the directed share issue:

-          Spirax-Sarco Engineering plc, a close associate of the board member

Christopher Molnar, will invest approximately NOK 18.4 million, with a post

-transaction shareholding increasing to 18.9%;

-          Iberdrola, represented by Inversiones Financieras Perseo, S.L., a

close associate of the board member Oscar Cantalejo, will invest approximately

NOK 17.2 million, with a post-transaction shareholding increasing to 16.6%; and

-          Klaveness Marine will retain its pro rata shareholding through an

investment of approximately NOK 3.5 million

The share capital increase pertaining to the Directed Share Issue has been

resolved by the board of directors of the Company pursuant to the authorization

granted by the annual general meeting held on 30 June 2023. Completion of the

directed share issue is conditional upon the share capital increase pertaining

to the new shares being registered with the Norwegian Register of Business

Enterprises (NRBE) and the new shares having been validly issued in the

Norwegian Central Securities Depository (VPS).

In consultation with the company's management, the board has considered various

transaction alternatives to secure new financing. Based on an overall

assessment, considering inter alia the need for funding, execution risk and

possible alternatives, the board has based on careful considerations decided

that the investment is the alternative that best protects the company's and the

shareholders' joint interests. By structuring the transaction as a directed

share issue, the company was able to raise capital in an efficient manner with

significantly lower completion risks compared to a rights issue. Thus, the

waiver of the preferential rights inherent in a share capital increase through

issuance of new shares is considered necessary. Further, the board has resolved

not to conduct a repair offering, primarily due to the subscription price being

at a premium compared to current trading prices.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act. This stock exchange notice

was published by Håvard Haukdal, CFO of the Company, on the time set out herein.

Kyoto Group will release its annual report on Thursday 25 April 2024 and on the

same day host a business update webcast.

Heatcube

Kyoto Heatcube provides thermal energy storage and heat generation in one

product. It supplies industrial customers with the technology needed to lower

both their costs for producing process heat and their CO2 emissions using

intermittent renewable energy sources instead of fossil fuels for heat

production.

Heatcube can be configured with storage capacities from 16 MWh to over 120 MWh,

with a discharge effect for each Heatcube of up to 20 MW. It is an innovative,

low-cost, and modular storage solution for thermal energy that can use multiple

renewable energy sources to heat molten salt to over 415 degrees Celsius. The

high-temperature salt is then used to produce steam for industrial production

processes.

For further information, please contact:

Håvard Haukdal, Kyoto Group CFO

havard.haukdal@kyotogroup.no

+47 48 10 65 69

About Kyoto Group

Heat accounts for two thirds of industrial energy consumption. Traditionally,

nearly all of it is based on fossil fuels. Kyoto Group's Heatcube, a thermal

energy storage (TES) solution, provides a sustainable and cost-effective

alternative by capturing and storing abundant but variable energy from sources

such as solar and wind. Founded in 2016, Kyoto Group is headquartered in Oslo,

Norway, and has subsidiaries in Spain and Denmark. The Kyoto share is listed on

Euronext Growth (ticker: KYOTO). Visit us at http://www.kyotogroup.no and follow

us on LinkedIn (https://www.linkedin.com/company/kyoto-group-as/)

About Iberdrola

Iberdrola, Europe's largest electricity utility by market capitalization and one

of the world's top three electricity companies, is a leader in renewables,

spearheading the energy transition to a low carbon economy. The group supplies

energy to almost 100 million people in dozens of countries. With a focus on

renewable energy, smart networks and smart solutions for customers, Iberdrola's

main markets include Europe (Spain, the United Kingdom, Portugal, France,

Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The

company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden

and Poland, among others.

The company has a workforce of over 40,600 and assets in excess of

Euro 154.6.billion. In 2022, Iberdrola posted revenues of nearly Euro 54 billion, net

profit of Euro 4.34 billion, with Euro 7.5 billion paid in tax contributions in the

countries where it operates. The company helps to support more than 400,000 jobs

in communities across its supply chain, and global supplier purchases topped

Euro 17.8 billion in 2022. A benchmark in the fight against climate change,

Iberdrola has invested more than Euro 130 billion over the past two decades to help

build a sustainable energy model, based on sound environmental, social and

governance (ESG) principles. www.iberdrola.com/home

About Spirax-Sarco Engineering

Spirax-Sarco Engineering plc is a leading global thermal energy management and

fluid technology solutions Group that aims to deliver sutainable value to all

its stakeholders through engineering a more efficient, safer and sustainable

world. Headquartered in Cheltenham (UK), the Group comprises three world-leading

Businesses: Steam Specialties, for the control and management of steam; Electric

Thermal Solutions, for advanced electrical process heating and temperature

management solutions; and Watson-Marlow, for peristaltic pumping and associated

fluid path technologies. In 2022, the Group launched its TargetZero solutions

for the decarbonisation of critical industrial processes.

The Company's shares have been listed on the London Stock Exchange since 1959

(symbol: SPX) and it is a constituent of the FTSE 100 and the FTSE4Good Indexes.

www.spiraxsarcoengineering.com

About Klaveness Marine

Klaveness Marine is an investment company founded by Torvald Klaveness in 1946

and is today owned by the second and third generation of Klaveness. The company

invests capital in four different areas: Maritime, Real estate, New energy and

Financial investments.

www.klavenessmarine.com (https://kyotogroupas.sharepoint.com/sites/Corporatecommu

nications

-MovingPressreleasesforapproval/Delte%20dokumenter/Moving%20Press%20Releases%20fo

r%20approval/www.klavenessmarine.com)