iQ Power Licensing AG

Annual Results 2016 published

Public disclosure of inside information according to article 17 MAR

Zug (pta002/20.05.2017/00:41) - ,

* Korean licensing partner is back to normal production operation, further expansion of production capacity
* Revenue from license business more than doubled
* First deliveries to automotive manufacturers (OEM) in Brazil
* Earnings position from operating business improved by CHF 0.5 million
* One-time accountable impairment loss in the rehabilitation phase of the Korean licensing partner

Zug, Switzerland, May 20, 2017 - iQ Power Licensing AG (ISIN: CH028536338, WKN: A14M1C / Symbol iQL), the developer and marketer of technologies and their licenses for environmentally friendly and technologically leading starter batteries for motor vehicles, publishes the figures for the fiscal year 2016 and gives an overview of the current business situation.

Business Operations
In the year 2016, iQ Power Licensing AG continued its intensive collaboration with the new strategic partner Discover Energy Corporation (DEC) from Vancouver / Canada.

The strategic partner DEC intensified its commitment to the Korean licensing and production partner iQ Power Asia Inc. as well as to iQ Power Licensing AG through extensive financial investments in order to combine the iQ Power technology with the new DEC owned brand "Mixtech" for all major markets. In addition, Discover Energy Corporation made major investments in the expansion of the Korean plant and invested millions of dollars to stabilize and expand the production of the Korean factory. Discover Energy's commitment underscores the confidence of DEC in the future of iQ Power Licensing AG, its technology and the Korean factory, DEC is now the dominant shareholder in Korea and the largest single shareholder (18%) in iQ Power Licensing AG.

Great efforts and investments were made in 2016 to expand the product portfolio from nine battery models to 25 models. In addition to the new types of starter batteries, the Korean factory in 2016 focused on the introduction of a complete product line of commercial vehicle batteries for the North American market which will be launched in 2017. At present, the vast majority of batteries from the Korean license partner's production are sold in North America.

The year 2016 also marked the beginning of the production of the first batteries with iQ-Power technology for use by a major automobile manufacturer (OEM). Moura Baterias S.A. as the largest battery manufacturer on the South American continent, delivered the first batteries for OEM use. This was preceded by very long investment delays by automobile manufacturers in South America, caused by the economic and political crisis in Brazil.