THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018) ("UK MAR").

5 September 2024

CAP-XX Limited

("CAP-XX" or "the Company")

Trading Update and Notice of Results

The Board of CAP-XX Limited, a world leader in the design and manufacture of thin, prismatic supercapacitors and energy management systems, announces an unaudited trading update in respect of the financial year ended 30 June 2024 ("FY2024").

·      Revenue is expected to be A$4.6m up 26.7% versus the prior financial year

·      Backlog at the end of June 2024 was USD 1.12m

·      Book/bill ratio of 1.07 as at 30 June 2024

·      R&D tax credit of approximately A$1.25m is estimated to be received in November 2024

·      Year-end cash reserves were A$2.0m

·      The Company is debt free

·      Strong new relationship with SCHURTER AG

·      Strong progress with the global distribution network

·      Global supercapacitor market is currently experiencing significant growth

The financial information highlighted above has not been audited, the process of which is currently ongoing. The Company's audited results for FY2024 are expected to be released on 29 October 2024.

Agreement with SCHURTER AG ("SCHURTER")

As announced on 16 July 2024, CAP-XX and SCHURTER signed a memorandum of understanding ("MoU") in July to work closely together on technology development and the development of supercapacitor products under a common brand name. The MoU marks the beginning of a strategic alliance that the companies believe will bring substantial benefits for both sides and create real added value for their customers and stakeholders. By combining their extensive knowledge and capabilities, CAP-XX and SCHURTER will develop innovative, competitive products and new application-specific solutions, including co-branded supercapacitor products. SCHURTER also became a significant shareholder in the Company, having acquired CAP-XX shares in the market representing 4.69% of the Company's issued share capital.

Successful uplift from marketplace to fulfilment with DigiKey and first stock holding in the USA

Further to the Company's announcement on 25 April 2023, CAP-XX has strengthened its relationship with DigiKey, including the successful progression onto the "Fulfilled by DigiKey" programme. This includes the implementation of an EDI (Electronic Data Interchange) link with DigiKey, culminating with the first stock order from this leading global distributor of electronic components.

This represents the first physical stock holding in the US - previously stock was shipped from Australia upon receipt of an order. Local stock enables faster delivery times of between 12 to 24 hours, better customer service, and a more robust presence in the crucial North American market.

By DigiKey managing the fulfilment process, CAP-XX can enhance supply chain operations, provide superior service to customers, and drive growth and profitability.

About the CAP-XX external EDI system

The EDI system provides for automated commercial "conversations" between two entities, encompassing the entire electronic data interchange process, including transmission, message flow, document format, and software used to interpret the documents. An external EDI system offers significant benefits, including operational efficiency, cost savings, enhanced inventory management, improved customer satisfaction, and greater overall control. By DigiKey managing the fulfilment process, CAP-XX can enhance supply chain operations, provide superior service to customers, and drive growth and profitability.

Update on the CAP-XX global distribution network:

CAP-XX has assembled a highly experienced commercial team under the leadership of its CEO, Lars Stegmann, who personally oversees APAC and the Americas region. Mark Davies is responsible for operations in Europe, while Ulrich Lorenzen manages CAP-XX's activities in South Africa.

CAP-XX has established a comprehensive global distribution network for its world-class supercapacitors. Distributors are strategically located across the Americas, Asia Pacific, Europe, the Middle East, and Africa, providing local support and expertise to meet the diverse needs of clients. During FY2024, CAP-XX signed numerous distribution agreements worldwide, including: Astute (Global), Syscom Prorep (France & Benelux), Darton (Italy, Spain & Portugal), TME (Global), NuVision (South Africa) and Arrow-Alltech (South Africa).

In the Americas, ongoing discussions with major partners aim to complement the existing relationship with Kessler Batteries in Dallas, Texas. These distributors are well-equipped to handle enquiries and provide supercapacitors for a range of applications.

The extensive Asia Pacific network covers major regions such as ASEAN & South Asia, China & Hong Kong, Taiwan, India, Japan, and South Korea. Key partners include McCoy Pte. Ltd. in Singapore, Nanjing Sunlord Electronics Co. Ltd. in China, PAC Electronics Co. Ltd. in Taiwan, and Synerdyne in Japan. This network ensures that innovative products are readily available and supported by local experts who understand the unique requirements of each market.

Growing global supercapacitor market

The global supercapacitor market is currently experiencing significant growth, driven by a combination of technological advancements and increased demand across various sectors. Supercapacitors, known for their high power density, rapid charge and discharge capabilities, and long cycle life, are becoming increasingly important in applications such as automotive, renewable energy, consumer electronics, and industrial equipment.

According to a recent report by MarketsandMarkets¹, the global supercapacitor market is projected to grow from USD 475 million in 2022 to USD 1.4 billion by 2027, a compound annual growth rate (CAGR) of 23.5% during the forecast period. This growth is being fuelled by the rising adoption of electric vehicles (EVs), where supercapacitors are used alongside batteries to improve performance and longevity. Additionally, the integration of renewable energy sources, such as wind and solar, requires efficient energy storage solutions like supercapacitors to balance supply and demand.

In the consumer electronics sector, the demand for faster-charging and more durable energy storage devices is also propelling the supercapacitor market. According to Research and Markets², the increasing use of supercapacitors in smartphones, wearables, and other portable devices is expected to contribute significantly to market expansion. The global push towards smart infrastructure and grid modernisation is creating new opportunities for supercapacitor technology in energy management and power backup systems.

With these multiple drivers, the global supercapacitor market is set for robust growth in the coming years, cementing its role as a key component in the evolving landscape of energy storage solutions.

¹ MarketsandMarkets. (2022). Supercapacitor Market by Type, Electrode Material, Application, Region - Global Forecast to 2027.

² Research and Markets. (2023). Global Supercapacitor Market Analysis and Forecast to 2028.

Chief Executive Officer of CAP-XX, Lars Stegmann, said: "The progress with our new sales strategy has been strong in the period, increasing our global geographic footprint in key markets, improving our customer service levels and project management. The strengthening of our distribution partner base is progressing well and supports our key objective to profitably build the CAP-XX revenue base in the near term. With our newly strengthen board we look forward to continuing our mission of powering the future with our state-of-the-art supercapacitor technology."

For further information contact:

CAP-XX Limited

Pat Elliott (Chairman)                                                                             +61 (2) 9157 0000

Lars Stegmann (Chief Executive Officer)

Allenby Capital (Nominated Adviser and Joint Broker)

David Hart / Piers Shimwell (Corporate Finance)                                      +44 (0) 20 3328 5656

Tony Quirke / Stefano Aquilino (Sales and Corporate Broking)

Notes to Editors:

About SCHURTER

SCHURTER is a world leading Swiss technology company and solutions innovator. SCHURTER manufactures and markets components for circuit protection, as well as connectors, switches, EMC, and HMI products.

For more information about SCHURTER, visit www.schurter.com

About DigiKey

DigiKey is a leading global distributor of electronic components, renowned for its extensive inventory and commitment to providing rapid, reliable service to engineers, designers, and procurement professionals. DigiKey currently states that it currently holds 1,900,000 products in stock, in their expandable distribution space of more than 3 million square feet (278,709 square meters), including a new 2.2 million sq. foot product distribution centre, allowing them to ship the majority of orders the same day they are placed. On average, DigiKey ships nearly 25,000 orders per day. DigiKey is an authorized distributor of electronics components for more than 2,900 industry-leading suppliers, offering more than 15.3 million different products. DigiKey also supports innovation through comprehensive online resources, including datasheets, reference designs, and a robust community forum, making it a trusted partner in the electronics industry.

For more information about DigiKey, visit www.digikey.com

About CAP-XX

CAP-XX (LSE: CPX) is a leader in the design and manufacture of thin, flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy. The unique feature of CAP-XX supercapacitors is their very high-power density and high energy storage capacity in a space-efficient prismatic package. These attributes are essential in power-hungry consumer and industrial electronics and deliver similar benefits in automotive and other transportation applications.

For more information about CAP-XX, visit www.cap-xx.com