Zaptec AS — Earnings Release 2024

Nov 13, 2024

Q3 2024 Financial Results 13th November 2024

Business highlights

1 Soft revenue, but Zaptec is capturing market shares in weak market

Strong gross margin and positive EBITDA

Reduced inventory with clear path toward normalization

Sufficient liquidity to navigate current market

Well positioned for 2025 with new products, expected market recovery, and continued cost focus

Agenda

Financials Q3 2024

Market, strategy and outlook

Financial highlights

Revenue reflecting challenging market

Soft order intake, backlog provides visibility

Increased gross margin

• Gross margin of 39%
• Outlook for continued strong gross margin

Gross margin

Positive EBITDA in a challenging quarter

EBITDA margin (%) EBITDA (MNOK)

EBITDA

• EBITDA of 4 MNOK
• EBITDA negatively impacted by soft revenue due to market conditions

Inventory reduced, on track for normalization

• Inventory reduced 70 MNOK vs. last quarter
• Production and purchase obligations for 2024 and 2025 further reduced
• Inventory normalization anticipated in 2025
• Liquidity improvement expected going forward

Significant drop in European plug-in vehicle sales

Plug-in vehicle sales Q3 2024 vs Q3 2023

Zaptec installations on the rise:

Steady installation growth since July

• Underlying growth in installations
• Positive indication for future sales

Zaptec is increasing market share:

Quarterly Zaptec installations vs plug-in sales increasing over time, implying Zaptec is capturing market share

Source: ACEA and Zaptec. Plug-in vehicles are battery electric and plug-in hybrid electric vehicles combined. * Number of actual Zaptec Pro / Go installations as share of plug-in vehicles sold in Zaptec prioritized markets. Implies that for almost 1 of 10 plug-in vehicle sold in Zaptec's prioritized markets, a Zaptec Go or Pro is installed.

Market recovery expected

Zaptec expects market recovery in 2025, driven by;

• Stricter EU CO² emission requirements¹
• Affordable EV models entering the market²
• Reduced battery prices³
• New incentives to meet the EU's 2035 zero emissions target⁴

Sources: 1. theicct.org/publication/2025-co2-manufacturers-targets-oct24/ 2. evmarketsreports.com/affordable-evs-set-to-transform-europes-electric-vehicle-market/ 3. goldmansachs.com/insights/articles/electric-vehicle-battery-prices-are-expected-to-fall-almost-50-percent-by-2025 4. europarl.europa.eu/pdfs/news/expert/2022/11/story/20221019STO44572/20221019STO44572\_en.pdf

Outlook

• New products Zaptec Go 2 and Zaptec Pro Eichrecht targeting largest EU markets in Q1
• Growing with new and existing B2B partners through national and international agreements
• Continued commitment to cost efficiency
• Scalable business model with significant free cash generation expected in the years ahead

Summary

• Soft revenue, but increased market share
• Strong gross margin and positive EBITDA
• Reduced inventory, on track for normalization
• Continued cost focus
• Sufficient liquidity to navigate current market
• Expected market recovery in 2025
• New products to be released in Q1

Zaptec is well positioned for 2025