Crown Energy : Interim Report Jan-Jun 2023

SECOND QUARTER - APRIL-JUNE 2023

• Revenue amounted to SEK 10,179 thousand (10,334).
• Operating loss amounted to SEK -12,266 thousand (-7,467).
• Net financial items amounted to SEK 114,669 thousand (79,786).
• Unrealised changes in property values amounted to SEK -18,978 thousand (2,931).
• Result before tax amounted to SEK 83,426 thousand (75,251) and result after tax amounted to SEK 69,839 thousand (59,948), corresponding to SEK 0.15 (0.13) per share.

REPORTING PERIOD - JANUARY-JUNE 2023

• Revenue amounted to SEK 20,864 thousand (17,647).
• Operating loss amounted to SEK -30,777 thousand (-15,149).
• Net financial items amounted to SEK 128,387 thousand (47,510).
• Unrealised changes in property values amounted to SEK -26,986 thousand (11,653).
• Result before tax amounted to SEK 70,642 thousand (44,014) and result after tax amounted to SEK 55,785 thousand (32,905), corresponding to SEK 0.12 (0.07) per share.

EVENTS DURING HALF YEAR

• On January 10th, 2023 Crown entered a Letter of Intent to acquire 85% of a company group within the Medtech sector.
• On February 3rd, Crown acquired 85% of SmarTee S.a.r.l., the parent holding company of AccYouRate Group which focuses on wearable medical technologies, for a consideration of Euros 163 million of which Euros 75 million was paid upon signing. For more information see note 8
• On April 27th Crown announced receipt of a further $8 million taking the total received amount under the October 2021 Sale and Purchase Agreement to $99 million.
• On April 27th the company stated that AccYouRate had taken a step forward in the production of its 'smart T-shirt' using printed polymetric ink.
• Crown also announced on May 11th that it is withdrawing from the South African Block 2 B licence and returning its equity to the other joint venture partners.
• On May 23 Crown Energy published the interim results of AccYouRate's latest study focusing on pediatric disability. The study, which was coordinated by the University Hospital of Siena demonstrated that wearables technology can provide reliable and easily interpretable data to help determine the effects of therapies and care at home, which can then provide information for appropriate remedies.
• On May 31:st Crown Energy AB announced the decision to evaluate the conditions for listing the company's share on Nasdaq First North. Growth Market, Stockholm. A list change is expected to take place during the second half of 2023.
• The Annual General Meeting was held on 1 June.

EVENTS AFTER THE PERIODS END

• No significant events after reporting period.

13

Properties

20 thousand

Leasable area, sqm

Asset Development and

Management business area

THE PROPERTY MARKET AND CURRENCY IN ANGOLA

Angola's real estate market is strongly linked to the oil and gas sector. Some companies are focusing on reducing long-term commitments. This means that in certain circumstances the landlord will offer more flexible contracts; shorter duration or adjustable terms. Alternative concepts to a traditional leasing system, such as business centers, have emerged in the market.

The Angolan Kwanza has declined by 35 percent to SEK during the second quarter 2023. Since June the exchange rate was stable against US dollar, but macroeconomic position is unclear. The graph shows the development of revenue since the Second quarter of 2021.

SUMMARY OF PROPERTY-RELATED KEY RATIOS

For definitions of key ratios please see pages 20-21.

3 Crown Energy Half Year Report January-June 2023

SEK 19 M

Revenue backlog

9 months

WAULT

81%

Area occupancy rate

COMMENTS ON PROPERTY-RELATED KEY RATIOS

Changes in the second quarter of 2023

Below is a list of changes in revenue and rent backlog for the second quarter of 2023.

Contracted rental value and service value of extended and new contracts amount to SEK 8,571 thousand and SEK 1,255 thousand, totalling SEK 9,826 thousand. Five contracts were terminated prematurely, which means that the revenue backlog decreased by a total of SEK -324 thousand. In total 97 lease agreements remain. Due to exchange rate effects, the Group's revenue backlog and rent backlog have decreased with SEK -8,303 thousand and SEK -7,029 thousand respectively.

The distribution between USD and AOA contracts amounts to 17 and 83 per cent, respectively.

The Company's WAULT has increased since the first quarter 2023 from 7.9 to 9 months. The area occupancy rate has increased since the first quarter from 72% to 81%. However, economic occupancy rate have been stable since the fourth quarter 2022 at 74 (72) per cent.

Crown Energy's view is that the Luanda property market is improving and that it is a more balanced market than it was before.

4 Crown Energy Half Year Report January-June 2023

70-80 USD/bbl

Oil price in Q1 2023

Energy Business Area

MARKET

During the first half year of 2023 we have been seeing an oil price remaining in a range between the USD $70's to $80's and a firm gas price.

The Energy market, in 2023, still remains robust.

As stated previously, Crown is progressing positively in its move away from the Energy Industry to greener and more socially responsible projects.

Sustainable investment Area

ACCYOURATE GROUP - THE FIRST INVESTMENT

The business area of Sustainable Investments was formed during 2022 as part of the ongoing transformation of Crown Energy´s business direction. Crown Energy is dedicated to the move towards a new and more socially and environmentally responsible business area contributing to a positive change. Our focus will be on the medical technology industry and on improving our green footprint as these markets offer great potential while both enhancing and saving lives. Alongside evaluating new sustainable investment opportunities, Crown Energy is working with full strength in line with the long-term goal of making a responsible and for our shareholders financially beneficial exit from the oil and gas industry.

In early February 2023 Crown Energy entered into a Share Purchase Agreement for the acquisition of an 85 per cent equity stake in SmarTee S.a.r.l., a Luxembourg company which is the parent holding company of the Italian registered AccYouRate Group.

THE TRANSACTION

The total purchase price of EUR 163 million is payable by Crown Energy to the seller in a total of nine instalments. The first instalment of EUR 75 million was paid upon signing of the SPA and at which time the 85 per cent equity stake in SmarTee was transferred to Crown Energy. The rest of the payments will be made in instalments of EUR 9 million six months after each instalment date. For more information on transaction, see note 8.

ABOUT ACCYOURATE

Crown Energy acquired 85% of Smart Tee SARL in Luxembourg, the full owner of AccYouRate Limited which in turn is the full owner of AccYouRate Group S.p.a. It is an international group with operations in L'Aquila, Bologna and Israel. The business currently has about 20 employees and its activities include the development of a new ecosystem with research and development, small scale production of 'smart' wearable garments and software development. The business was founded in 2016 by Arnaldo Usai, who previously was the CEO of Uniform, a manufacturer of garments for the Italian military.

AccYouRate has patented the ability to thinly print a conductive polymer on fabrics combined with a proprietary, coin size, central unit. The first product is a t-shirt like top that measures 7 indicators

• ECG, pulse, temperature, respiration and respiration depth. It also has a built-in GPS as well as an accelerometer. The product, in combination with a large medical database and a decision-making layer (algorithms), serves as the basis for the ecosystem. AccYouRate's unique ecosystem facilitates measurements of posture, location, and vital signs to be made continuously, accurately and for extended periods. The data, in an anonymised form, is then uploaded to a large medical database.

These large-scale measurements allow the development of sophisticated software algorithms for various market-specific uses, and most importantly, enable the early detection of critical health events, thereby proactively mitigating potentially adverse outcomes.

5 Crown Energy Half Year Report January-June 2023