Zaptec AS — Earnings Release 2020

Nov 13, 2020

Q3 2020

Anders Thingbø – CEO Kurt Østrem – CFO

Highlights Q3 2020

• Revenue growth continues despite negative effects from Covid19
• Gross margin temporary lower
• Operating cost as a share of revenues has been reduced
• EBITDA on par with Q3-2019
• Strong cash generation
• New sales of electric vehicles in Europe recovering
• Technology development with Apollo product launch in Q1-21 on schedule

Key revenue figures development

Q3 2020
MNOK	Q3 2020 -	Q3 2019 -	Change
Total	48,6	38,7	25,6 %
Norway	34,6	34,8	-1 %
International	14	3,9	259 %
Sept.
MNOK	sep.20	sep.19	Change
Total	24,2	16,6	45,8 %
Norway	19	15	26,7 %
International	5,2	1,6	225,0 %
Per sept.
MNOK	2020 Per sept	2019 Per sept	Change
Total	140,7	110,1	27,8 %
Norway	105,3	99,7	5,6 %
International	35,4	10,4	240,4 %

Market share stable in Norway

Largest export markets are Switzerland, Sweden, Denmark and Iceland

September the strongest contributor to revenues in Q3 2020

Key profitability figures development

	Q3 - 2020	Q3 - 2019	Change	Per sept. 2020	Per sept 2019	Change
Gross margin	34%	44%	-10%	37%	45%	-8%
Operating cost	12	11	1	35	31	4
EBITDA	5,5	5,6	-0,1	18,7	18,4	0,3
Product mix
Pro	85%	95%		86%	95%
Home	15%	5%		14%	5%

• Gross margin has a temporary reduction in 2020 due to higher demand than expected of ZAPTEC Home which for 2020 has a relatively low gross margin.
• ZAPTEC Home will be replaced by Apollo, a new offering for Single Family Homes, with lower production cost in Q1 2021
• ZAPTEC Pro largest contributor to profitability

EV markets took a U-turn from Q2 to Q3

New Car Sales, Battery Electric Vehicle (BEV) and Plug-in Hybrid Electric Vehicle (PHEV)

ZAPTEC offers world leading technology to assist Europe in reaching its CO2 emission targets for cars

EU: Specific emission targets for car manufacturers with penalty payments for excess emissions and super credits for producing EVs

Forward looking statements

• Our guiding for revenue growth is 25-30% in 2020
• Our guiding for annual revenue growth is 35-50% for the next 3 years
• Our guiding for EBITDA margin is 20% in 2023