Dear shareholders,
It has now been a little more than a year since the launch of the company. The first capital raise amounted to 37 MSEK at 100 SEK per share which enabled the first investments. There have been significant achievements since the inception for Molindo Energy and for all of the portfolio companies. As we present the financials for the third quarter 2018, we can now conclude that the total value of the portfolio amounts to 129 MSEK and the NAV per share amounts to 118 SEK per share. This has indeed been a promising start!

Through our increased ownership in each portfolio company, Molindo Energy is today a more significant owner than before, which is in line with our aim to be an active and contributing partner in the portfolio companies. We believe that the positive development will continue and are confident that all companies will see increased value in the months to come.
 
Monthly Highlights

Meva Energy
At Meva Energy, there is now total focus on the Essity project and preparatory work will be completed in the beginning of 2019 before a complete commercial launch. There are a number of preparations to be made, from environmental permits to feedstock storage and planning. So far, the project has progressed in line with expectations and with great commitment from both parties. We expect the good progress to continue and look forward to an expected commercial order in the first quarter of 2019.

During the month, Meva Energy also signed a letter of intent with SHV, which is a leading European provider of natural gas and LPG products. We believe there are two main drivers for SHV´s interest in Meva Energy’s business offering. Firstly, the ongoing trend to increase bio gas usage in relation to fossil gas. This trend is driven among other things by consumer preferences, governments ambitions and corporate branding. Secondly, energy production (and gas production is part of it) is expected to become more decentralised and local. This is part of the larger trend where renewable energy production will be closer to consumption. As Meva Energy’s business is in line with these two driving factors, it is in SHV’s interest to find a partner, such as Meva Energy, to open up future business opportunities.

QFS
The process was slower than expected for our Chinese partner to receive the last required license. However, during the last month, our partner received the long awaited “go-ahead” decision from the authorities, which obviously is good news for the launch of the business. We should however note that the formal and final papers are yet to be received but that the authorities have declared (in writing….) that our business can commence in anticipation of the formal documents. This is not perfect but good enough to launch the business. We are now working with our partner to finalize all details for launch.
 
Exeger
Although little news has come out from Exeger, a lot of work is taking place on the inside. The company is in all sorts of discussions with potential customers and partners. In anticipation of the company´s global launch, a new communication platform will be released including a new brand design. We will naturally look forward to any commercial achievement but also keep an eye on the new brand design.
 
Molindo Energy
We are at full speed ahead and confident for continued positive development of the portfolio. In addition to the current three portfolio companies, we are continuously looking at new possible investments. There are exiting times ahead and I look forward to sharing them with all shareholders!

Yours sincerely,

Morgan Sadarangani