Zaptec AS — Earnings Release 2023

Aug 23, 2023

Q2 2023 Financial Results 23 August 2023

Financial highlights | Q2 2023

134% revenue growth – all time high quarterly revenue

• Revenue increased 134% in Q2 2023 compared to Q2 2022 to 355 MNOK
• Zaptec has now generated LTM* revenue of 1.1 billion NOK

Order intake continued at a high level

• Following a record-breaking order intake in Q1 2023, the order intake continued at a high level in Q2 2023
• In Q2, Zaptec recorded 445 MNOK in order intake, equivalent to a 104% increase compared to Q2 2022
• During Q1 and Q2 combined, the order intake exceeds 1 billion NOK
• The backlog has scheduled deliveries from Q3 2023 to Q1 2024

Production ramping up according to plan

• Zaptec Pro and Zaptec Go production continued to ramp up in Q2'23 in line with our plans
• Production of MID-type approved version of Zaptec Pro commenced in the end of Q2'23 at Westcontrol
• Preparations for start of Zaptec Go production at Sanmina continued on track to commence production in Q3'23 which will further ramp up Zaptec Go volumes

5

Export revenue and export share at record-high levels

• Both the export revenue and export share increased significantly in Q2'23
• 163% sales growth outside Norway compared to Q2'22 driven by increased sales in export markets – 277 MNOK export revenue in Q2'23
• 78% export share of total revenue in Q2'23
• Signed agreement with new distributor in Spain and targeting growth in several new markets e.g. Italy going forward

Market development

Continued EV adoption, however slow growth in Norwegian plug-in vehicle sales in the second quarter

• Plug-in vehicle sales in Zaptec's largest market, Norway increased 9% compared to Q2 2022.
• Continued high plug-in share of new vehicle sales in Norway of around 90%.
• Plug-in vehicles sales continued to increase in EU and was 35% higher in Q2'23 vs Q2'22
• Plug-in share of new vehicle sales in EU increased to 21% in Q2'23 vs 19% in Q2'22

Plug-in vehicles sales in Q2 2023 vs Q2 2022

Battery electric vehicles (BEV) & Plug-in hybrid electric vehicles (PHEV)

Gross margin negatively impacted by product mix in the second quarter – expected to increase going forward

• The gross margin was 36% in Q2'23, compared to 41% in the previous quarter
• The margin was negatively impacted by product mix, as Zaptec Go contributed to a relatively larger share of revenue compared to our expectations and compared to Q1'23
• Expecting increased gross margin going forward due to reduced Zaptec Go production cost from 1st August 2023

Improved EBITDA due to strong revenue growth and cost control

• EBITDA grew to 23 MNOK in Q2 2023, up from 12 MNOK in the same quarter last year
• EBITDA margin increased to 6% compared to 2% in the previous quarter due to strong revenue growth and cost control
• Expect improved EBITDA going forward, due to;
  • o Continued sales growth from market penetration in immature markets and order backlog deliveries
  • o Increased gross margin
  • o Continued cost focus

EBITDA

Strategy and outlook

• The global trend towards electrifying transportation is evident, yet electric vehicle (EV) adoption rates vary across countries.
• Zaptec's successful strategy revolves around providing safe, high-quality EV charging solutions in markets with strong EV adoption outlook
• As more nations hit the EV adoption tipping point and Zaptec's presence grows via subsidiaries and/or distribution channels, the potential market expands significantly. In essence, Zaptec anticipates growing demand in both current and new markets.
• The outlook for continued revenue growth, and improved gross and EBITDA margins, is optimistic due to lower production costs and the benefits of scale.

Summary

• Growth story continued in full force despite challenging macro environment and low growth in EV sales
• All time high quarterly revenue of 355 MNOK
• Strong order intake of 445 MNOK
• Zaptec Pro MID production initiated at Westcontrol
• Preparations for Zaptec Go production start at Sanmina which will boost deliveries in the second half of 2023
• Quarterly EBITDA of 23 MNOK, positive outlook for gross margin and EBITDA

Q&A

Disclaimer – forward looking statements

Cautionary Statement Regarding Forward-Looking Statements

In addition to historical information, this presentation contains statements relating to our future business and/or results. These statements include certain projections and business trends that are "forward-looking." All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements preceded by, followed by or that include the words "estimate," pro forma numbers, "plan," project," "forecast," "intend," "expect," "predict," "anticipate," "believe," "think," "view," "seek," "target," "goal", "outlook" or similar expressions; any projections of earnings, revenues, expenses, synergies, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations, including integration and any potential restructuring plans; any statements concerning proposed new products, services, developments or industry rankings; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.

we will achieve or accomplish these expectations, beliefs or projections

Forward-looking statements do not guarantee future performance and involve risks and uncertainties. Actual results may differ materially from projected results/pro forma results as a result of certain risks and uncertainties. Further information about these risks and uncertainties are set forth in our most recent annual report for the Year ending December 31, 2020. These forward-looking statements are made only as of the date of this press release. We do not undertake any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements in this report are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from Fourth parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies, which are impossible to predict and are beyond our control, we cannot assure you that