Kyoto Group AS

Regulatory Filings • Oct 27, 2022

Kyoto Group Capital Markets Day 2022: On the doorstep of market breakthrough with proven technology

Kyoto Group Capital Markets Day 2022: On the doorstep of market breakthrough with proven technology

Oslo, Norway 27 October 2022 - Kyoto Group today hosts its Capital Markets Day

2022, presenting the company's technology, strategy, commercial initiatives and

medium-term targets. Kyoto also launches the second generation of the company's

Heatcube thermal battery.

"The main message from Kyoto today is that we are now on the doorstep of market

breakthrough with an innovative application of a proven technology," says

Camilla Nilsson, CEO of Kyoto Group.

"We are proud to launch Heatcube 2.0, our modular thermal battery now designed

for serial production, to match the various demand profiles from industrial

customers. This enables us to serve the EUR 1 trillion market for

electrification of industrial process heat. We are also starting to report on

our pipeline, which has grown to more than 1800 MWh of storage capacity over

just the last couple of months, fueled by the geopolitical situation," Ms

Nilsson adds.

Addressing huge market with proven technology

Kyoto's technological and commercial progress targets the market for industrial

process heat, which accounts for two-thirds of total industrial energy

consumption. As previously announced by Kyoto, Aurora Energy Research has

identified the serviceable addressable market for Kyoto's Heatcube to be 11 200

TWh of annual demand for process heat in the temperature range ideal for the

Heatcube. Traditionally, nearly all of this is based on fossil fuels.

As intermittent solar and wind become an ever-larger part of the energy mix, the

value of intra-day buffering rises, and this is the market that Kyoto addresses.

The Heatcube is based on molten salt heat storage. This technology has been used

for decades in concentrated solar power plants, which are common in Spain, where

Kyoto has a technology center and a major part of the growing commercial

pipeline.

"In other words, this is a well-known technology now being applied in an

innovative way and commercialized in new market segments. Our first commercial

installation, at Nordjyllandsværket in Denmark, is progressing well and

scheduled to start commissioning in January. We have also entered into several

promising letters of intent within various industries, such as pulp and paper,

food processing and cogeneration, and we have a joint go-to-market strategy with

Hydro Rein," says Ms Nilsson.

Next-generation Heatcube

The Capital Markets Day is preceded by a launch event for Heatcube 2.0. This

next-generation thermal battery significantly increases energy density while

reducing capital expenditure and operating costs. See the separate press release

published today for details on Heatcube 2.0.

"Heatcube 2.0 substantially strengthens the offering for our growing pipeline,

and we now have the resources to execute on this opportunity, both within the

company and in our ecosystem of commercial and scientific partners," says Ms

Nilsson.

Updating targets

Based on the substantial progress over the past months, Kyoto is now updating

its mid-term targets.

Kyoto has, up to now, targeted a levelized cost of storage (LCoS) below EUR 20

per MWh by 2025. This is now expected to be reached sooner, and a new target for

2025 of EUR 15 per MWh has been established. The Capex ambition for 2025 is kept

at the same level, EUR 40 per installed kWh of storage.

Furthermore, to pave the way towards 2025, Kyoto outlines its commercial targets

for the next two years: 5-10 commercial orders for 2023 and 10-20 commercial

orders for 2024. This is based on Kyoto having established a solid market

presence in Spain while establishing a strong foothold in the other key markets

targeted.

By 2025, Kyoto expects to have installed more than 2,000 MWh of thermal energy

storage and reach EBITDA break even.

Today's physical event is for pre-registered participants and will last from

[14:00] to [17:00] CEST. It will also be streamed live on the Kyoto Group

website, and a recording will be made available after the event.

For more information, contact:

Camilla Nilsson, CEO

camilla@kyotogroup.no

+47 48 29 56 85

Håvard Haukdal, CFO

havard.haukdal@kyotogroup.no

+47 481 06 569

About Kyoto Group

Heat accounts for half 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).

More information on www.kyotogroup.no