Zaptec AS — Earnings Release 2023

May 10, 2023

Q1 2023 Financial Results 10 May 2023

Financial highlights | Q1 2023

Figures in NOK million unless otherwise specified 2

Record breaking order intake

• Record-breaking order intake, up 204% compared to Q1 2022 and up 113% compared to Q4 2022
• 587 • Significant portion of order intake in Q1'23 will be delivered later in 2023
• Zaptec Pro MID-type approval arriving late in Q1 expected to boost order intake further in coming quarters

Significant production ramp-up

• Zaptec Pro and Zaptec Go production increased
• Zaptec Pro production ramp-up at Sanmina in Q1'23 following production start in Q4'22
• Ongoing evaluations for further acceleration of Zaptec
• Go production due to high demand

105% revenue growth in the first quarter

• Revenue increased 105% in Q1 2023 compared to Q1 2022
• This is all time high quarterly revenue, despite that first quarter historically has been a slow quarter in terms of revenue

Market development

Mixed electric vehicle sales figures

• Plug-in vehicle sales in Zaptec's largest market, Norway, declined 12% compared to Q1 2022, following introduction of VAT for electric vehicles for purchase price above 500.000 NOK from 1st Jan 2023
• Despite challenging macro environment, plugin vehicle sales in Europe increased 21% in Q1'23 vs Q1'22
• EV adoption still on the rise in EU as plug-in vehicles market share of new vehicle registrations increased to 19,2% in Q1'23 from 18,7% in Q1'22

Plug-in vehicles sales in Q1 2023 vs Q1 2022

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

Market development

• Governments incentivise electric vehicles • Customers demand environmentally friendly solutions • Automakers transition to electric • Increased availability of models • Reduced battery cost and improved range • Reduced total cost of ownership Electrification megatrend intact on the back of strong key drivers

to e.g. MID-type approval of Zaptec Pro Export share decreased in Q1, but is expected to increase in the future

• Strong sales in Norway led to reduced export share of 65% in Q1
• 97% sales growth outside Norway compared to Q1 2022
• driven by increased sales in export markets, related • Market entry in Spain and Italy planned later in
• 2023 is also expected to increase export share

Other Q1 Highlights

• In 2022, the Swedish Electrical Safety Authority (SESA) • The purpose of the review is to help customers select safe • In Q1'23, SESA publicly announced Zaptec Go had passed Increased demand after Swedish Electrical Safety Authority review of charging stations

• reviewed several charging stations available in the market including Zaptec Go • Zaptec experienced strong demand increase for Zaptec Go
• charging stations with transparent installation principles
• the review
• No remarks for Zaptec Go on technical deficiencies of electrical safety; sales in the market continues as normal
• following the announcement of the SESA test results

Other Q1 Highlights

• was completed
• This approval shows that Zaptec Pro complies to the energy measurement accuracy and documentation requirements in major European markets
• market segments in key markets in Germany and other EU markets
• Q2, enabling increased Zaptec Pro sales later in 2023

Other Q1 Highlights

Zaptec granted a patent for phase balancing charging technology

• In March 2023, Zaptec was granted its patent application for phase balancing and has protected its charging technology by this
• The patent makes the Norwegian technology for smart power utilization unique
• The technology now under patent protection enables more cost-effective infrastructure installation at large facilities that charge multiple electric vehicles simultaneously, with better use of power and faster charging speeds • Patented phase balancing technology a key competitive
• advantage in target markets going forward

• The gross margin increased to 41% in Q1'23, Gross margin improvement started to materialize in Q1

• compared to 38% in Q4'22
• • o Higher price point for MID certified Zaptec Pro
• o Proactive supply chain efforts to reduce key input component costs
• o Considering additional price increase in 2H 2023, following previously communicated price increase from 1st Feb 2023

EBITDA reflects production ramp-up and continued investment in new markets

• EBITDA margin increased to 2% in Q1 2023 compared to 0% in Q1 2022. EBITDA margin negatively impacted by production ramp-up and continued growth investments
• o High production to prepare for future growth, backed by significant order intake which will be delivered later in 2023
• o Product development and OPEX attributable to new markets
• Expect improved EBITDA margin going forward, due to
• o Maintained gross margin
• o Market penetration in new markets and order backlog deliveries
• o Continued cost focus

EBITDA

Summary

• Record breaking order intake of 587 MNOK a 204% increase compared to Q1'22
• • All time high quarterly revenue of 271 MNOK
• 105% higher than Q1'22 Strong order backlog of 489 MNOK for deliveries later in 2023 – up 702% from Q1'22

Significant ramp-up in production levels of both Zaptec Pro and Zaptec Go

• European patent for dynamic phase balancing granted – separates Zaptec from the crowd

MID compliance for Zaptec Pro reached unlocking key market segments in major European markets

Gross margin increased to 41% and EBITDA margin improved to 2% – positive outlook for EBITDA going forward