Nexam Chemical Holding AB (publ). Interim Financial Statements for Quarter 3, July–September 2013

The Quarter at a Glance
Operations:

  · The first commercial application in electronics has been confirmed by the
Japanese company Sumitomo
  · The Clean Sky project, which aims to develop new high-temperature composites
for aircraft engines, has resulted in a new high-temperature material based on
Rolls-Royce's specification
  · Further positive test results have been obtained from a large potential
customer in the field of modification of PET foam
  · Increased interest in both existing and new applications (e.g. "in service
curing") from a large number of leading nylon producers (such as BASF and DSM)
  · Optimisation of process and injection moulding tool has progressed in the
Nylon-66 project with BASF
  · Nexam products for the PO-CROSS project regarding polyethylene have been
delivered and tested by the project participants ABB, IRPC and Repsol, and have
generated positive test results
  · Collaboration with a number of major contract manufacturers has been
intensified as part of the preparations for the expected multi-tonne needs for
Nexam's products
  · Nexam's production unit Nexam St. Andrews was awarded ISO 9001, ISO 14001
and OHSAS 18001 certification during the quarter • Nexam's patent relating to
crosslinked nylon was granted in the US during the quarter

Financial & Legal:

  · Net turnover for the period amounted to SEK 337 (447) thousand. Net
profit/loss before tax was SEK –6,323 (–3,980) thousand
  · Total assets at the end of the period amounted to SEK 59,600 (27,240)
thousand, with cash and cash equivalents accounting for SEK 39,640 (13,830)
thousand of this amount
  · Cash flow for the period was SEK –6,829 (–3,559) thousand, which is
according to plan

Key Events After the End of the Period

  · A leading US-based supplier of materials to the aerospace industry has
purchased NEXIMID 100 (PEPA) to qualify Nexam as a supplier to an aircraft
project lasting several years
  · Nexam has entered into a cooperation agreement with an American materials
company for the production of a new high-temperature resin for the aerospace
industry containing NEXIMID 100 (PEPA) and NEXIMID 400 (EBPA)
  · Nexam has received an order for high-temperature resin from the Clean Sky
project, with Rolls-Royce as the end customer, corresponding to an order value
of approx. SEK 900 thousand
  · Scale-up tests at a world-leading customer in PET foam have continued in
close cooperation with Nexam, and the customer is preparing for full-scale
testing in its regular production during November-December. Nexam has delivered
products for these tests
  · Continuing strong interest from a number of leading nylon producers, of
which we can mention BASF, DSM, EMS and Unitika
  · Process development and a scale-up in production of a number Nexam products
for thermoplastics has now begun at the internal production unit Nexam St.
Andrews and at three major European contract manufacturers, in preparation for
the delivery of commercial volumes to current projects and a number of product
launches to the broader market
  · A new nylon project has been initiated with a potential customer, aimed at
improving the properties of thin-wall injection-moulding in applications such as
mobile phones and tablets
  · The PO-CROSS project has been completed and both IRPC and ABB have announced
their desire to continue working with Nexam with a view to commercialisation.
Cooperation agreements are being discussed with each party
  · Nexam St Andrews has now, after some delay, started the shipping and
invoicing of products relating to the external contract manufacturing order with
a total value of SEK 900 thousand

Lund, 25 November 2013
Board of Directors

These financial statements have not been audited by the Company’s auditor. Note:
This report has been translated from Swedish.
The Swedish text shall govern for all purposes and prevail in case of any
discrepancy with the English version. Read the PDF for the complete report
For more information, please contact:
Lennart Holm, Chairman of the Board: +46 (0)706 30 8562
Per Palmqvist Morin, CEO, +46 (0)706 55 55 82