Zaptec AS — Earnings Release 2020

Feb 11, 2021

Q4 2020

Anders Thingbø – CEO Kurt Østrem – CFO

Highlights Q4

• Positive working capital development and strong cash balance
• Turnover growth 66%
• Gross margin reduced due to higher than expected sales of a low margin product
• EBITDA MNOK 11,1 (14% of revenues)
• Operating cost as a share of revenues has been reduced
• New sales of electric vehicles in Europe continue to grow
• Technology development with new product launch in Q1-21 is on schedule
• Successful share issue and IPO on Euronext Growth

Key numbers

MNOK/%	Q4-20	Q4-19	2020	2019
Revenues	79	46,3	219,7	156,4
Export Share	31,4%	8,9%	26,2%	9,3%
Gross margin	36,4%	39,0%	36,8%	43,0%
Operating cost	21,93	13,0 2	56,83	43,8
EBITDA adj.	11,1 1	5,1	29,8 1	23,4
EBITDA Margin (%)	14,0%	11,0%	13,5%	15,0%
Available liquidity			273,2	43,4

1. Adjusted for bonus, salary benefit and social cost on share option in Q4 of MNOK 11,6 and severance pay in Q3 of MNOK 1,4. 2. R&D cost MNOK 5,0 for Q1 – Q3 in 2019 was capitalized in Q4-2019

2. Adjusted for salary benefit on share option program

Electric vehicle markets with strong growth

• 60% growth (q/q) in Europe
• All Nordic countries with strong growth
• New EV models launched in the market
• Supply of LIB packs increases (in China), but new factories will have to be built (with renewable energy sources) to keep up with rising demand the coming years

Sweden, Switzerland and Denmark with a strong growth for Zaptec charging systems

• Norway is our largest market and Zaptec PRO our largest market
• Sweden, Switzerland and Denmark the largest export markets, these markets are still in a very early EV adoption phase
• Our strategy for increased growth in these markets is to establish subsidiaries or acquire companies
• Recruited Country Managers in UK and Germany, sales to start in these markets in Q4 in 2021

878 new Pro installations

• We delivered 878 new Pro installations, representing a growth of 55%
• A total of 2540 PRO installations were delivered in all markets in 2020.
• 250.000 KWh is charged with our chargers on a daily basis in February 2021

Subscription for Charge365 payment services

• New automatic payment contracts increased with 127 new contracts
• Charge365 has about 1.000 contracts and 14.000 active users
• Automatic payment services will be available in our export markets from Q3

Production

• Westcontrol AS to expand current production site on Tau, Rogaland, with new buildings, robotic equipment and recruitment of new production staff
• The production capacity will increase significantly during Q4 2021 due to the expansion
• Westcontrol will be able to produce the sales volumes we expect for 2021
• Production capacity from 2022 and onwards is high on the agenda for the management of Zaptec

Technology development

• Swift onboarding to the Zaptec Cloud of Zaptec Go for scalable growth
• Prepared the migration to Kubernete with Basefarm (Azure) as administrator, to obtain extreme scalability and to free up internal development resources*
• Improved processes for onboarding and invoicing of automatic payment, and developed the back-end to handle international growth
• For our hardware product development finalising the Zaptec Go for market launch has been a priority

*64 million messages every day between all chargers and the cloud. 2TB observations stored, increases with 100GB every month

Outlook

The growth in EV demand is substantial, as is the speed of development in technology, customer awareness and ecosystems.

This adds increased potential to Zaptec's business proposition and growth prospects while at the same time making guiding challenging.

Against this perspective the company will continue its national and international growth efforts, and update the financial market on a regular basis and at least quarterly about developments, status and outlook.