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Zaptec AS Interim / Quarterly Report 2023
3796_rns_2023-10-09_5fd42132-09da-4dc8-a98a-0ce071c7b294.pdf
Interim / Quarterly Report
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Q2 Report 2023
23 August 2023
Document Ref: 7J8YV-VPJJX-T2LBI-EGUFS Page 1 of 35
| Update from the CEO |
3 |
|---|---|
| Highlights Q2 | 4 |
| Financial Summary | 5 |
| Market Development | 6 |
| Q2 Stories | 8 |
| Strategy & Outlook | 10 |
| Report for the first half of 2023 | 11 |
| Statement by the Board of Directors and Chief Executive Officer |
16 |
| Financial Statements | 18 |
Update from the CEO
Dear shareholders,
I am pleased to announce that we continued our profitable growth journey in the second quarter. Once again, we recording all-time high quarterly revenue. Over the last 12 months combined we have now generated over 1.1 billion NOK revenue.
Our record-breaking revenue and growth reflect our employees' dedication and ability to adapt to challenging market conditions. We have delivered our best quarter in a tough market so far because we remain committed to delivering quality and safety. Our focus on innovation and safety has been maintained through our continuous product development and over-the-air updates, bringing quality improvements to existing and new product owners.
Quality, indeed, bears fruit. The success we now witness is not a stroke of luck; it is a testament to our preparedness and our ability to seize the right moments. As opportunities have arisen, we have risen to the occasion, leveraging our expertise and vision to turn possibilities into concrete achievements.
Going forward we look forward to ramping up production levels further – we are on track to commence production of Zaptec Go at Sanmina which combined with increased production at Westcontrol will further ramp up Zaptec Go deliveries in the coming months.
Thank all of you for your support.
Peter Bardenfleth-Hansen
Highlights Q2 2023
- All time high quarterly revenue of 355 mill NOK, 134% above Q2 2022
- Continued strong order intake of 445 mill NOK, 104% above Q2 2022
- Order backlog of 578 mill NOK for deliveries from Q3 2023 to Q1 2024
- Continued ramp-up in production volumes of both Zaptec Go and Zaptec Pro including commencement of MID-type approved Zaptec Pro
- Gross margin of 36%
- EBITDA of 23 mill NOK, up 96% from Q2 2022
| MNOK/% | Q2-23 | Q2-22 | YTD 2023 | YTD 2022 |
|---|---|---|---|---|
| Revenues | 355 | 152 | 626 | 284 |
| Export Share | 78% | 69% | 68% | 69% |
| Gross margin | 36% | 42% | 39% | 44% |
| Opex | 106 | 52 | 214 | 113 |
| EBITDA | 23 | 12 | 27 | 12 |
| EBITDA Margin (%) | 6% | 8% | 4% | 4% |
| Available liquidity | 248 | 245 | 248 | 245 |
Key financial figures
1Including cash, deposits, funds and un-used overdraft facility of 70MNOK
Quarterly revenue and order intake (MNOK)
Financial summary
Revenue
Second quarter revenue of 355 MNOK, which is an increase of 134% compared to the same period last year.
Registered purchase orders in the second quarter was 445 MNOK, an increase of 104% compared to the same period last year. The backlog of orders of 578 MNOK has scheduled deliveries from Q3 2023 to Q1 2024.
The export share was 78% in the second quarter compared to 69% in the same period last year.
Gross margin
Gross margin in the quarter was 36% compared to 42% same period last year, due to product mix more favourable to the home segment with lower margins than the pro segment.
Opex
Total employee benefit expenses and other operating expenses in the second quarter was 106 MNOK compared to 52 MNOK in same period last year.
Personnel expenses in the second quarter increased 89% compared to same period last year. At the end of June 2023 Zaptec had 177 employees, compared to 120 employees at end of June 2022.
Other operating expenses in the second quarter increased from 25 MNOK in the same period last year to 54 MNOK. The increase is largely related to sales, marketing, consultants and travel expenses for a larger presence in Europe. In addition to this, one-off expenses related to improved estimate data for warranty provision of 6 MNOK and increased provision for losses on accounts receivable of 2 MNOK were accounted for in the second quarter.
EBITDA
EBITDA in the second quarter was 23 MNOK compared to 12 MNOK in the second quarter last year.
Available Liquidity
The cash balance with total cash, available overdraft facility, deposits and other funds per end of June 2023 was 248 MNOK.
Continued EV adoption in Europe, however slow growth in Norwegian plug-in vehicle sales in the second quarter.
Sales figures for electric vehicles improved somewhat compared to the first quarter in the second quarter, however the growth was modest in Zaptec's largest market Norway. The adoption of electric and plug-in hybrid electric vehicles in EU continued with significant increase in the second quarter despite challenging macro environment.
Slow growth in Norwegian plug-in vehicle sales in Q2
- Following a decline in the first quarter, plug-in vehicle sales in Zaptec's largest market, Norway, increased 9% compared to the first quarter last year.
- Battery electric vehicle sales increased 13% from 27 358 in the second quarter of 2022 to 31 043 in the second quarter 2023.
- Plug-in hybrid vehicles sales declined 22% from 4 023 in the second quarter last year to 3 149 vehicles in the second quarter 2023.
- For battery electric vehicles (BEV) and plug-in hybrid vehicles (PHEV) combined, number of vehicles sold increased 9% in the second quarter compared to the same period last year.
- Going forward, Zaptec expects continued increase in plug-in vehicle sales in Norway.
Source: European Automobile Manufacturers' Association (ACEA)
Continued EV adoption in Europe, however slow growth in Norwegian plug-in vehicle sales in the second quarter.
Plug-in vehicle sales continues to grow in the European Union
- The adoption of plug-in vehicles continued in the European Union in the second quarter as sales of battery electric and plug in hybrid electric vehicles increased more than petrol and diesel vehicles sales.
- In the second quarter, the number of new vehicle registrations in EU with electric engine increased by 64% to 382 599 compared to 233 401 in the second quarter of 2022
- Plug-in hybrid vehicles sales increased 4% from 206 104 in the second quarter of 2022 to 212 354 in the second quarter of 2023
- For battery electric vehicles (BEV) and plug-in hybrid vehicles (PHEV) combined this is equivalent to an increase of 35% compared to the second quarter of 2022.
- Over time, Zaptec expects the trend of increased plug-in vehicle sales in general, and the transition from PHEV to BEV to continue in Europe as the EV adoption is still in a relatively early phase.
Planning of Zaptec Go production start at Sanmina on track – deliveries and sales of Zaptec Go will increase significantly in the second half of the year
The order intake in the first two quarters of 2023 has been at a record-breaking level for Zaptec. To meet the increased demand, the production of Zaptec Go has been accelerated as much as possible at Westcontrol. The Zaptec Go production levels are set to increase considerably in the second half of 2023.
In addition, preparations for start of Zaptec Go production at Sanmina continued during the second quarter. The preparations are going according to plan, which means we are on track to commence production of Zaptec Go in the third quarter.
In sum, the ramp-up at Westcontrol and initiation of production at Sanmina will boost Zaptec Go deliveries throughout 2023.
Volume production of Zaptec Pro with MID-type approval commenced
Following MID-type approval of Zaptec Pro in the first quarter of 2023, the volume production of Zaptec Pro with MID-type approval commenced at Westcontrol in the second quarter. In the second half of 2023, production of Zaptec Pro with MID-type approval will also start at Sanmina's production facilities in Germany.
The MID-version of Zaptec Pro is equipped with a built-in measuring instrument following the EU Measuring Instruments Directive (MID), and it is the only Norwegian electric vehicle charging company currently with MID certification for its charging unit. This will make it easier for consumers to use public chargers and is essential to Zaptec's international expansion into new European markets.
With the certification, tax authorities in the Benelux countries, France, and Germany will also accept tax deductions for electricity used for company cars. Company cars account for 70 per cent of all new car sales in Germany, and within electric car sales, company cars represent an even larger share. Therefore, the certification opens great potential for the Zaptec in Europe.
Strategy & Outlook
The global trend towards electrifying transportation is evident, yet electric vehicle (EV) adoption rates vary across countries. Norway's strong, longstanding incentives have fueled high EV adoption, with most new light vehicles being electric or plug-in hybrids. In contrast, countries like Germany and the UK are in the early stages of EV adoption.
Zaptec's successful strategy revolves around providing safe, high-quality EV charging solutions in markets approaching or at the EV adoption inflection point. This approach has flourished in the Nordics and Switzerland, with efforts now focused on replicating this success throughout Europe and later also in the US.
Zaptec foresees a continued global rise in plug-in vehicle sales. 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 gross and EBITDA margins is optimistic due to lower production costs for Zaptec Go and the benefits of scale. As sales revenue is projected to outpace cost growth, Zaptec is poised for a positive future.
Operation and locations
Zaptec develops and sells charging systems for electric vehicles. The Group's business idea and strategy is to be Europe's leading company within development and sale of chargers, charging systems and services for electric vehicle charging.
The Group includes, in addition to Zaptec ASA, the following subsidiaries: Zaptec Charger AS Charge365 AS Zaptec IP AS Zaptec Power AS Zaptec Sverige AB Zaptec Danmark ApS Zaptec U.K. Ltd Zaptec Deutschland GmBH Zaptec Schweiz AG Zaptec Netherlands B.V. (established in 2022) Zaptec France SAS (established in 2022) Zaptec Italia S.r.l (established in 2022) Zaptec Charger, INC. (established in 2022) Zaptec Austria, GmbH (established in 2022)
Production of charging units and equipment is outsourced to Westcontrol, and takes place in Tau, Norway and to Sanmina Corporation with production facilities in Gunzenhausen, Germany.
The main office is in Stavanger, Norway, however the Group also have sales organizations in Oslo, Sweden, Denmark, UK, France, Germany, Switzerland and the Netherlands. There are no employees in the following legal entities; Zaptec IP AS, Zaptec Power AS, Charge365 AS, Zaptec Italia S.r.l., Zaptec Charger, INC. and Zaptec Austria, GmbH
Comments related to the financial statement
The Group had a turnover increase of 120% in the first half of 2023 with gross profit margin maintained at a high level of 39% compared to 44% in first half of 2022, despite significant international growth. The Group has an equity ratio of 68% and a sufficient liquidity position. The development in turnover, profit margin and equity ratio are as expected.
The Group made an operating profit of 15 077 KNOK per 30.06.2023.
The Group's growth and investments are in line with previously communicated outlook, however the ramp-up of sales in certain markets, e.g. UK and Germany, has been somewhat slower than previously anticipated due to prolonged time frames to adapt the Group's product offerings to relevant regulatory law and regulations. The board believes that the half yearly accounts give a true and fair view of the Group's assets and liabilities, financial position and results.
The parent company had no revenue per 30.06.2023.
Own shares
Zaptec ASA holds a number of 71 599 own shares as of 30.06.2023.
Outlook
12
The growth in electric vehicle sales is expected to continue at an accelerated pace in the years ahead. This trend is driven by the Paris agreement and the ongoing energy transition to electrify the world and drive down emissions to a sustainable level. In this landscape, the Group is well placed with its focused and high-quality product line which includes Zaptec Go and Zaptec Pro, quality shareholder base, profitable growth and sound financial position. The Group's growth ambitions in the years ahead are based on increasing market shares in the European countries and technical development efforts is enabling sales in new markets is going forward.
In general, there are significant uncertainties related to the Board of Director's evaluation of the future for the Group, as the Group's operational and financial activities may be substantially impacted by factors outside the Group's and the Board of Director's control.
Risk factors
Component souring risk
The Group may experience component shortages which may impact both global EV production and the Group's production of EV charging systems. If the Group is unable to source key components to its EV production, this could decrease the Group's revenue, which could adversely affect the Group's business, financial condition, results of operations, cash flow and/or prospects.
IP risk
In the opinion of the Board of Directors, the Group's most important competitive advantage is its advanced and sophisticated technology for electric car chargers. Any failure to protect the Group's proprietary rights adequately, including but not limited to competitive actions from former employees, could result in (i) loss of key-employees, suppliers or customers of the Group and (ii) the Group's competitors offering similar products, potentially resulting in the loss of some of the Group's competitive advantage and a decrease in the Group's revenue, which would adversely affect the Group's business, financial condition, results of operations, cash flow and/or prospects.
Financial risk
The Group has to date focused on the European market, but it's current strategy is to grow and expand beyond Europe. The Group's ability to implement its strategy and achieve its business and financial objectives is subject to a variety of factors, many of which are beyond the Group's control. Further, acquisitions (if made) may involve significant risks. The Group's failure to execute its business strategy or to manage its growth effectively could adversely affect the Group's business, financial condition, results of operations, cash flow and/or prospects. In addition, there can be no guarantee that even if the Group successfully implements its strategy, it would result in the Group achieving its business and financial objectives.
Credit and liquidity risk
Depending on the balance between supply and demand, which fluctuates over time, the Group either sells its products on a continuous basis, or operates with order reserves, or products in stock. Currently the Group has order reserves due to a surplus of orders compared to its production. However, there is a risk that the Group in the future may experience a lack of order reserves combined with higher future purchase commitments towards its suppliers, as production levels are set to increase going forward. If the number of chargers ordered by the Group significantly deviates from the number of orders received from the Group's customers, the Group may incur unnecessary costs related to such purchases (in the event that the demand for the Group's products is lower than expected) or inability to meet the demand and thereby suffer loss of potential income (in the event that the demand for the Group's products is higher than expected).
Market risk
Significant changes in users' preferences away from the Group's offerings and towards competing car chargers or a decline in the market for electric cars are factors that may negatively affect the Group's business, financial condition, results of operations, cash flow and/or prospects. The Group operates in a market that is competitive, fragmented and rapidly changing. The Group expects to continue to experience competition from existing and new competitors, some of which are more established and who may have (i) greater capital and other resources, (ii) more superior brand recognition than the Group, and/or (iii) more aggressive pricing policies. There is no assurance that the Group will be able to compete successfully in such a competitive marketplace.
Personnel risk
The Group is highly dependent upon retaining and attracting qualified personnel. The loss of a key person might impede the achievement of the development and commercial objectives. Any failure to retain or attract such personnel could result in the Group not being able to successfully implement its strategy, which could have a material and adverse effect on the Group's business, financial condition, results of operations, cash flows and prospects.
Climate risk
13
The Group's products offerings are in general contributing to transforming the transportation sector to reduce CO2 emissions from internal combustion engine vehicles. The Group's business operations have negligible direct impact on the environment as it is limited to operating at offices, albeit some travelling related to selling products are negatively impacting the climate due to travel via airplane etc. The Group's products are physically manufactured at third party factories in Norway and Germany. Further, most components used to manufacture the physical products it sourced from suppliers mainly located in Asia. The Group is currently in process of mapping the environmental impact of the key suppliers, see Transparency Act under Social Responsibility.
Social – and Corporate Governance
Refer to our homepage for information on social – and corporate governance. Link: https://zaptec.com/wp-content/uploads/2022/03/Zaptec-Corporate-social-responsibility-CSR.pdf and https://zaptec.com/wp-content/uploads/2023/09/Zaptec-Corporate\_Governance\_Policy-.pdf.
Research and development activities
The Group's core electric vehicle charging hardware products were launched before 2023; the Zaptec Pro was launched in 2016 and Zaptec Go in 2021. However ongoing work during 2023, is being done on further development of Zaptec Pro and Zaptec Go to fit certain requirements to fit with targeted segments in current and potential new markets. Further, there is continuous ongoing work to scale and improve the company's software solutions.
Cash flow
The deviation between operational cash flow and operating result can be explained by the Group's growth strategy.
The Group's cash flow from operational activities is in general reinvested to continue the Group's future growth efforts. The Group's investments are related to development of the Group's electric vehicle charging systems, and operational expenses mainly due to the building of organization in new markets. So far during 2023, no larger financial transactions took place.
Going concern
In accordance with the Accounting Act § 3-3a, we confirm that the financial statements have been prepared under the assumption of going concern. This assumption is based on profit forecasts for the year 2023 and 2024 and the Group's long-term strategic forecasts. The Group's economic and financial position is sound.
The Group's debt level is mainly related to trade payables, which amounted to KNOK 203 353 per 30.06.2023. Total liabilities amounted to KNOK 314 163 . Total equity at the end June 2023 was KNOK 679 888.
If required, the Group could raise additional equity financing by issuing new shares to existing and/or new shareholders. Since the Group is listed at Oslo Stock Exchange, the process to increase equity capital in the Group could be completed within a relatively short time frame, provided capital market sentiment and company outlook allow for such capital increase.
Liability insurance
The Group has a Directors & Officers liability insurance that covers Directors and executive management. The total limit of the coverage is 25 MNOK.
Social responsibility
Business model
The Group develops electronic vehicle charging systems, which are sold via multiple sales channels in both the business-to-business ("B2B") and business-to-consumer ("B2C") segments. The Group's hardware products are manufactured at third party factories owned by the Group's production partners Westcontrol and Sanmina, and sold B2B or B2C against a profit margin.
Transparency Act
In June 2023, the Group published its first Transparency Act report on www.zaptec.com in line with current regulatory requirements. Link: https://zaptec.com/wp-content/uploads/2023/06/Zaptec-Transparency-Act-Report-2023.pdf
Equality
14
The Group aims at treating every employee and business partner equally. This is becoming important with an expansion abroad where differences are more significant than where we come from. We need to make a continued framework for every employee to follow. The Group is implementing the UN Human Rights Principles to the handbook and translating it into English to make sure that each employee understand our shared principles.
The Group's policy is that work of equal value shall provide equal pay. The Group works actively, purposefully, and systematically for gender equality within the business. When recruiting, both internally and externally, personal qualifications take precedence over gender. The underrepresented gender will to a greater extent be encouraged to apply. In this way, the Group will try to increase the proportion of women in the job categories where this is particularly low.
In addition, the Group has a 3-year employee share incentives program where employees are allocated company shares to strengthen the affiliation between employees and the company. This program is managed by the Group.
Equal opportunities and discrimination
The Group works actively to promote equality, ensure equal opportunities and rights and prevent discrimination on the grounds of ethnicity, national origin, descent, skin color, language, religion and outlook on life. To contribute to this, the company has, among other things, established routines for recruitment.
Human rights
The Group supports the strictest labor standards applicable. We aim to protect workers and reassure them that they work according to reasonable and considerate standards, free from exploitation and unfair business practices. The Group seeks to follow a combination of national rules with those provided by being a member of the Confederation of Norwegian Enterprise.
The Confederation of Norwegian Enterprise is also a member of the UN Global Compact, building on the ten principles. In addition to this, we have brought HR in-house. This reassures closer control of adhering to HR. The Group has strict protections for the employees in place, and we provide a collaborative working environment. This is outlined in our Employee Handbook where protections for whistleblowers, both working on permanent and temporary contracts, are outlined.
Anti-corruption
The Group works to comply with high standards of anti-corruption work. We aim to work to cease the cases of corruption, extortion, bribery and grey zone cases. We aim to have our subcontractors participate in implementing the Anti-Corruption Principles by working closely with them. The Group is also scaling up the operations by onboarding more support in the supply chain and operations.
The Group has Ethical Rules as a part of its Employee Handbook regulating gifts and other economic advantages. In case of uncertainty, the CFO is accessible to reply to questions for review. The company is also operating with red periods with regards to purchasing and sale of stocks.
Working environment
To comply with the principles of working with sub-contractors to verify their actions, the Group is collecting reports from our Norwegian factory assembling the products assessing their subcontractors delivering the material and the parts for the production process. The Group is documenting the reports we receive through our documentation system.
Events after period end No material events occurred after the reporting date.
Allocation of net income The Group had a net profit for the first half of 2023 of 14 635 KNOK.
Stig H. Christiansen (sign) Chairman of the board
Ingelin Drøpping (sign) Board member
15
Document Ref: 7J8YV-VPJJX-T2LBI-EGUFS Page 15 of 35
Kurt Østrem (sign) Interim Chief Executive Officer
Jennifer Jacobs Dungs (sign) Board member
Christian Rangen (sign) Board member
An Joanna De Pauw (sign) Board member
STATEMENT BY THE BOARD OF DIRECTORS AND CHIEF EXECUTIVE OFFICER
STATEMENT BY THE BOARD OF DIRECTORS AND CHIEF EXECUTIVE OFFICER
Pursuant to the Norwegian Securities Trading Act section § 5-6 with pertaining regulations, we hereby confirm that, to the best of our knowledge, the company's interim financial statements for the period 1 January to 30 June 2023 have been prepared in accordance with IAS 34, as endorsed by the EU, and in accordance with the requirements for additional information provided for by the Norwegian Accounting Act. The information presented in the financial statements gives a true and fair picture of the company's liabilities, financial position and results overall. To the best of our knowledge, the Board of Directors' half-yearly report together with the yearly report, gives a true and fair picture of the development, performance and financial position of the company, and includes a description of the principal risk and uncertainty factors facing the company.
Stig H. Christiansen Kurt Østrem Christian Rangen
Chairman of the board Interim Chief Executive Officer Board member
Ingelin Drøpping Jennifer Jacobs Dungs An Joanna De Pauw
Board member Board member Board member
Document Ref: 7J8YV-VPJJX-T2LBI-EGUFS Page 17 of 35
Financial Statements
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
| Second Quarter | 01.01-30.06 | |||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Note | 2023 | 2022 | 2023 | 2022 | |
| Operating income | ||||||
| Revenues from contracts with customers | 4,5 | 355 378 | 151 550 | 626 290 | 283 727 | |
| Total operating income | 355 378 | 151 550 | 626 290 | 283 727 | ||
| Operating expenses | ||||||
| Cost of inventories | 5 | 226 933 | 88 084 | 385 448 | 159 192 | |
| Employee benefit expenses | 3 | 51 534 | 27 287 | 107 637 | 58 553 | |
| Depreciation and amortisation expense | 4,8 | 6 362 | 4 401 | 12 084 | 8 901 | |
| Other operating expenses | 4 | 54 362 | 24 647 | 106 045 | 54 355 | |
| Total operating expenses | 339 191 | 144 419 | 611 213 | 281 001 | ||
| Operating profit/loss | 16 188 | 7 131 | 15 077 | 2 726 | ||
| Financial income and expenses | ||||||
| Finance income | 6 | 11 110 | 1 559 | 21 817 | 1 602 | |
| Finance expense | 6 | 7 165 | 5 404 | 10 678 | 7 940 | |
| Net financial income (+) and expenses (-) | 3 944 | -3 845 | 11 139 | -6 338 | ||
| Profit (+)/loss (-) before tax | 20 132 | 3 286 | 26 215 | -3 612 | ||
| Tax expense (+)/benefit (-) | 7 | 5 037 | 3 001 | 11 580 | 2 466 | |
| Profit (+)/loss (-) after tax | 15 095 | 285 | 14 635 | -6 078 | ||
| Total profit/loss attributable to: | ||||||
| Owners of the parent | 15 095 | 285 | 14 635 | -6 078 | ||
| Non-controlling interest | 0 | 0 | 0 | 0 | ||
| Basic earnings per shares | 0,180 | 0,036 | 0,174 | -0,047 | ||
| Diluted earnings per shares | 0,178 | 0,036 | 0,173 | -0,047 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Second Quarter | 01.01-30.06 | |||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Note | 2023 | 2022 | 2023 | 2022 | |
| Profit (+)/loss (-) for the period | 15 095 | 285 | 14 635 | -6 078 | ||
| Items that will or may be reclassified to profit or loss: | ||||||
| Exchange gains arising on translation of foreign operations | 7 216 | 7 785 | 13 359 | 5 978 | ||
| Total comprehensive income | 22 311 | 8 070 | 27 994 | -100 | ||
| Total comprehensive income attributable to: | ||||||
| Owners of the parent | 22 311 | 8 070 | 27 994 | -100 | ||
| Non-controlling interest | 0 | 0 | 0 | 0 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| In NOK 1000 | Note | 30.06.2023 | 30.06.2022 |
|---|---|---|---|
| ASSETS | |||
| Goodwill and intangible assets | |||
| Goodwill | 8 | 77 988 | 67 765 |
| Other intangible assets | 8 | 87 754 | 81 674 |
| Deferred tax asset | |||
| Deferred tax asset | 7 | 16 993 | 14 062 |
| Tangible assets | |||
| Property, plant and equipment | 8 | 11 559 | 7 599 |
| Right-of-use assets | 8 | 9 741 | 15 489 |
| Other non-current assets | 12 | 5 073 | 0 |
| Total non-current assets | 209 108 | 186 589 | |
| Inventories | |||
| Inventories | 9 | 242 359 | 22 083 |
| Receivables | |||
| Trade receivables | 10 | 244 863 | 113 155 |
| Other current assets | |||
| Financial investments | 6 | 0 | 87 736 |
| Other current assets | 11 | 119 372 | 68 079 |
| Cash and cash equivalents | |||
| Cash and cash equivalents | 178 348 | 132 122 | |
| Total current assets | 784 943 | 423 175 | |
| TOTAL ASSETS | 994 051 | 609 764 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EQUITY AND LIABILITIES | |
|---|---|
| Equity | |
| Share capital 1 313 |
476 |
| Treasury shares 0 |
-1 |
| Share premium 646 945 |
359 185 |
| Not registered capital increase 0 |
0 |
| Other paid in equity 13 972 |
510 |
| Foreign exchange reserve 21 182 |
10 002 |
| Other reserves -3 524 |
4 932 |
| Total equity 679 888 |
375 104 |
| Non-current liabilities | |
| Deferred tax 7 18 930 |
6 531 |
| Long-term lease liabilities 8 6 037 |
10 978 |
| Long-term provisions 13 13 616 |
2 208 |
| Total non-current liabilities 38 582 |
19 717 |
| Current liabilities | |
| Trade payables 203 353 |
92 383 |
| Short-term loans and borrowings 14 0 |
26 426 |
| Short-term lease liabilities 8 3 831 |
4 586 |
| Contingent consideration 0 |
38 963 |
| Tax payable 7 20 064 |
15 455 |
| Other current liabilities 48 334 |
37 130 |
| Total current liabilities 275 582 |
214 943 |
| Total liabilities 314 163 |
234 659 |
| TOTAL EQUITY AND LIABILITIES 994 051 |
609 764 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| Second Quarter | 01.01-30.06 | ||||
|---|---|---|---|---|---|
| In NOK 1000 | Note | 2023 | 2022 | 2023 | 2022 |
| CASH FLOW FROM OPERATING ACTIVITIES | |||||
| Profit (+)/loss (-) before tax | 20 132 | 3 286 | 26 215 | -3 612 | |
| Taxes paid | 0 | 7 354 | -11 107 | -1 894 | |
| Depreciation and amortisation expense | 8 | 6 362 | 4 401 | 12 084 | 8 901 |
| Shared based payment expense | 3 | 3 158 | 3 558 | 7 117 | 5 166 |
| Finance income | 6 | 11 111 | 1 559 | 21 817 | 1 602 |
| Finance expense | 6 | 7 986 | 4 901 | 4 604 | 7 235 |
| Increase in trade receivables | 10 | -48 406 | -41 426 | -128 526 | -32 239 |
| Increase in inventories | 9 | -75 752 | -6 929 | -151 571 | 4 089 |
| Increase in trade payables | 51 488 | 33 755 | 57 296 | 26 240 | |
| Change in other accrual items | -33 089 | -35 493 | -5 008 | 4 656 | |
| NET CASH FLOW FROM OPERATING ACTIVITIES | -57 011 | -25 034 | -167 079 | 20 144 | |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||||
| Purchases of property, plant and equipment | 8 | -12 922 | -6 724 | -14 675 | -11 470 |
| Proceeds from sale of property, plant and equ | 8 | 7 301 | 0 | 7 301 | |
| Proceeds from sale of investments (funds) | 0 | 91 006 | 0 | 91 006 | |
| Advances/loans to suppliers | 11 | -466 | -22 200 | -2 686 | -40 000 |
| NET CASH FLOW FROM INVESTMENT ACTIVITIES | -6 087 | 62 082 | -10 060 | 39 536 | |
| CASH FLOW FROM FINANCING ACTIVITIES | |||||
| Repayment of loans and borrowings | 14 | 0 | -959 | -29 229 | -1 917 |
| Draw down on credit facility | 14 | 0 | 9 529 | 0 | 24 509 |
| Lease liabilities | 8 | -4 701 | -114 | -5 773 | -1 224 |
| Interest on lease liabilities | 8 | -170 | -126 | -301 | -248 |
| Interest on debts and borrowings | 0 | -377 | 0 | -457 | |
| Settlement of option agreement | 3 | 0 | 0 | 0 | -15 984 |
| Purchase of treasury shares | 0 | -9 057 | 0 | -9 057 | |
| Sale of treasury shares | 0 | 0 | 0 | 563 | |
| Issue of share capital | 0 | 0 | 0 | 0 | |
| Proceeds from equity | 0 | 0 | 287 927 | 0 | |
| NET CASH FLOW FROM FINANCING ACTIVITIES | -4 871 | -1 104 | 252 624 | -3 816 | |
| Net change in cash and cash equivalents | -67 969 | 35 944 | 75 485 | 55 864 | |
| Cash and cash equivalents at start of period | 246 317 | 96 179 | 102 862 | 76 258 | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 178 348 | 132 122 | 178 348 | 132 122 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| In NOK 1000 | Share Capital |
Own shares |
Share premium |
Not registered capital |
Other paid in capital |
Foreign exchange reserve |
Other equity |
Total equity holders of the parent |
Non controlling interest |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 January 2022 | 475 | 0 | 355 362 | 3 825 | 11 328 | 4 024 | 19 500 | 394 514 | 0 | 394 514 |
| Profit (+)/loss (-) after tax | -6 078 | -6 078 | -6 078 | |||||||
| Other comprehensive Income | 5 978 | 5 978 | 5 978 | |||||||
| Purchase of treasury shares | -2 | -9 055 | -9 057 | -9 057 | ||||||
| Sale of treasury shares | 0 | 562 | 563 | 563 | ||||||
| Capital increase | 3 | 3 823 | -3 825 | 0 | 0 | |||||
| Settlement of share based payment* | -15 984 | |||||||||
| Share based payments | 5 166 | 5 166 | 5 166 | |||||||
| 30 June 2022 | 476 | -1 | 359 185 | 0 | 510 | 10 002 | 4 932 | 375 104 | 0 | 375 104 |
| 1 January 2023 | 1 146 | 0 | 359 185 | 0 | 6 855 | 10 480 | -25 577 | 352 088 | 0 | 352 088 |
| Profit (+)/loss (-) after tax | 14 635 | 14 635 | 14 635 | |||||||
| Other comprehensive Income | 10 702 | 2 657 | 13 359 | 13 359 | ||||||
| Purchase of treasury shares | 0 | 0 | ||||||||
| Sale of treasury shares | 0 | 0 | ||||||||
| Capital increase | 166 | 287 761 | 287 927 | 287 927 | ||||||
| Share based payments | 7 118 | 7 118 | 7 118 | |||||||
| Differences from earlier periods** | 4 760 | 4 760 | 4 760 | |||||||
| 30 June 2023 | 1 313 | 0 | 646 945 | 0 | 13 972 | 21 182 | -3 524 | 679 888 | 0 | 679 888 |
* Settlement of option agreement (purchase of own equity instruments). Refer to Note 3 for additional information
** Relates to shared services booked in Zaptec Charger AS and not in Zaptec Deutchland GmbH at 31 December 2022.
NOTES
Note 1 - Basis of preparation
These interim consensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They were authorised for issue by the board of directors on 23 August 2023. They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2022 IFRS financial statement issued by the company on the 26 of April 2023.
Note 2 - Significant accounting policies
The Group has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2022 annual financial statements.
Note 3 - Significant events and transactions
Shared based payments New programs in 2022 Share-based incentive program for all employees
As of 01.01.2022 The Group implemented a share-based incentive program. Under the program all employees are entitled to a bonus equal to 20% of the employees' annual salary at 01.01.2022. The shares are allocated immediately and are vested over the vesting period, but can not be sold before 01.01.2025. Under the program the number of shares received is fixed at 01.01.2022. The number of shares equals 20% of the annual salary less withholding tax divided by the share price of Zaptec ASA based on average stock price last 15 days of 2021. Allocated shares for 2022 is 69 220.
The share portion is accounted for as an equity settled share-based payment program with immediate allocating to the employee that is the fair value of the equity instruments at grant date will be expensed over the vesting period (01.01.2025). Fair value is measured by using the actual average stock price of the last 15 days of 2021.
As of 01.01.2023 The Group implementet a new share-based incentive program for new employees in 2022. Under the program all employees are entitled to a bonus equal 20% of the annual salary at 31.12.2022. The shares will be allocated to the employees after the three year vesting period, i.e. shortly after 01.01.2026. Under the program the number of shares received is fixed at 01.01.2023. The number of shares equals 20% of the annual salary divided by the share price of Zaptec ASA based on average stock price last 15 days of 2022.
The share portion is accounted for as an equity settled share-based payment program, that is the fair value of the equity instruments at grant date will be expensed over the vesting period (01.01.2026). Fair value is measured by using the actual average stock price of the last 15 days of 2022.
The company operates two equity-settled share-based remuneration schemes for key management: Share-based incentive program for management
As of 01.01.2022 the group implemented a share-based incentive program. Under the program key management are granted a right to receive a defined number of shares after a vesting period. The vesting period is running until 01.01.2025. Per 30.06.2023 a total of 530 702 rights to receive shares has been granted.
The program is accounted for as a equity settled share-based payment program with a 3 year vesting period, that is the fair value of the equity instruments at grant date will be expensed over the vesting period. Fair value is measured by using the actual average stock price of the last 15 days of 2021.
Share-based payment program for key management and board of directors (Stock option program)
As of 30.06.2023 The Group had employee stock options agreements with 4 employees, CEO Peter Bardenfleth-Hansen, CFO Kurt Østrem, CTO Knut Braut and Kurt Aadnøy in Zaptec Charger. The agreements have vesting periods ranging from 12-24 months from October 2020, they grant the employees purchase rights of 1.100.000 shares at a share price ranging from NOK 11,25 to NOK 15,25. As of 30.06.2023 remaining stock options is 550 000 shares. All of these stock options can be excercised as of 30.06.2023.
One board member, Stig H. Christiansen (Chairman) holds stock options as of 30.06.2023. The agreement have vesting periods ranging for 6,4 - 18,4 months from 18.06.2021, which grant the board member purchase rights of 50 000 shares at a share pricing of NOK 11,25.
Share based payment expense is charged to the income statement with the following amount per Q2 2023 and Q2 2022.
| 01.01.-30.06 | ||||
|---|---|---|---|---|
| In NOK 1000 | 2023 | 2022 | ||
| Option program | 0 | 2 079 | ||
| Share-based incentive program for all employees | 1 670 | 724 | ||
| Cash portion Share-based incentive program for all employees | 0 | 2 948 | ||
| Share-based incentive program for management | 5 448 | 2 364 | ||
| Provision for social security contribution* | 1 091 | -4 198 | ||
| Total operating income | 8 209 | 3 917 |
* The expense for social security contribution is accrued based on the intrinsic value of the equity instruments vested. As a result of the significant reduction of the Zaptec share the provision has been reduced during 2022. Provision for not vested instruments is also recognised, and are expensed over the vesing period.
All sale or purchase of treasury shares are related to options and/or the share-based incentive programs. The settlement of option agreement in 2022 (-15,9 MNOK) relates to reimbursement for terminating option agreement.
Note 4 - Segment information
The Group consists of several legal entities where most of the entities are established to handle sales in a specific country. For management purposes, financial information is reported to the group management based on a legal entity basis. The group management is identified as the chief operating decision maker. Based on the internal reporting the following reportable segments are identified.
Zaptec Charger AS
This segment is involved in the sale of Zaptec products in Norway, and to customers in other countries where the Group has not established an entity or sales organization. Zaptec Charger AS also handles procurement of goods and internal sales.
Zaptec Sverige AB
This segment is involved in the sale and distribution of Zaptec products in Sweden.
Novavolt AG
This segment is involved in the sale and distribution of Zaptec products in Switzerland.
Other
25
Consist of all other legal entities in the group.
| Year-to-date 30.06.2023 |
||||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Zaptec | Zaptec | Novavolt AG | Other | Adjustments | Total |
| Charger AS | Sverige AB | and | ||||
| eliminations | ||||||
| Operating income | ||||||
| Revenues from contracts with customers | 221 109 | 180 745 | 130 769 | 93 212 | 454 | 626 290 |
| Revenues from internal sales | 259 109 | 0 | 0 | 750 | -259 859 | 0 |
| Revenues from shared services | 17 649 | 3 234 | 572 | 1 382 | -22 836 | 0 |
| Other operating income | 0 | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 497 867 | 183 979 | 131 341 | 95 344 | -282 241 | 626 290 |
| Operating expenses | ||||||
| Cost of inventories | 388 165 | 127 583 | 61 917 | 63 895 | -256 112 | 385 448 |
| Employee benefit expenses | 57 594 | 8 240 | 14 522 | 23 713 | 3 567 | 107 637 |
| Depreciation and amortisation expense | 5 290 | 12 | 0 | 795 | 5 987 | 12 084 |
| Other operating expenses | 58 908 | 14 810 | 11 441 | 33 480 | -12 594 | 106 045 |
| Total operating expenses | 509 956 | 150 645 | 87 881 | 121 883 | -259 152 | 611 213 |
| Operating result | -12 090 | 33 334 | 43 460 | -26 539 | -23 089 | 15 077 |
| Year-to-date 30.06.2022 |
||||||
| In NOK 1000 | Zaptec | Zaptec | Novavolt AG | Other | Adjustments | Total |
| Charger AS | Sverige AB | and | ||||
| eliminations | ||||||
| Operating income | ||||||
| Revenues from contracts with customers | 141 336 | 47 321 | 86 607 | 8 464 | 0 | 283 727 |
| Revenues from internal sales | 64 946 | 1 465 | 0 | 500 | -66 911 | 0 |
| Other operating income | 0 | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 206 282 | 48 786 | 86 607 | 8 964 | -66 911 | 283 727 |
| Operating expenses | ||||||
| Cost of inventories | 148 564 | 32 618 | 40 279 | 4 211 | -66 480 | 159 192 |
| Employee benefit expenses | 28 653 | 3 428 | 8 999 | 10 868 | 6 605 | 58 553 |
| Depreciation and amortisation expense | 3 967 | 0 | 17 | 760 | 4 156 | 8 901 |
| Other operating expenses | 25 300 | 8 217 | 4 740 | 27 001 | -10 903 | 54 355 |
| Total operating expenses | 206 484 | 44 263 | 54 035 | 42 840 | -66 622 | 281 001 |
| Operating result | -202 | 4 523 | 32 572 | -33 877 | -289 | 2 726 |
| Quarter 30.06.2023 |
||||||
| In NOK 1000 | Zaptec | Zaptec | Novavolt AG | Other | Adjustments | Total |
| Charger AS | Sverige AB | and | ||||
| eliminations | ||||||
| Operating income | ||||||
| Revenues from contracts with customers | 94 038 | 136 841 | 61 287 | 62 758 | 454 | 355 378 |
| Revenues from internal sales | 172 645 | 0 | 0 | 750 | -173 395 | 0 |
| Revenues from shared services | 9 554 | 1 651 | 296 | 1 382 | -12 883 | 0 |
| Other operating income | 0 | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 276 236 | 138 491 | 61 584 | 64 890 | -185 824 | 355 378 |
Cost of inventories 212 399 97 370 31 820 46 848 -161 503 226 933 Employee benefit expenses 25 312 4 216 8 051 13 541 414 51 534 Depreciation and amortisation expense 2 716 12 0 406 3 227 6 362 Other operating expenses 26 248 8 419 6 239 19 272 -5 815 54 362 Total operating expenses 266 674 110 017 46 110 80 067 -163 677 339 191
Operating result 9 561 28 474 15 474 -15 176 -22 147 16 188
Operating expenses
| Quarter | 30.06.2022 | ||||||
|---|---|---|---|---|---|---|---|
| In NOK 1000 | Zaptec | Zaptec | Novavolt AG | Other | Adjustments | Total | |
| Charger AS | Sverige AB | and | |||||
| eliminations | |||||||
| Operating income | |||||||
| Revenues from contracts with customers | 74 672 | 29 736 | 44 147 | 2 994 | 0 | 151 550 | |
| Revenues from internal sales | 31 257 | 1 465 | 0 | 500 | -33 222 | 0 | |
| Other operating income | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total operating income | 105 929 | 31 201 | 44 147 | 3 494 | -33 222 | 151 550 | |
| Operating expenses | |||||||
| Cost of inventories | 80 238 | 20 313 | 18 195 | 372 | -31 033 | 88 084 | |
| Employee benefit expenses | 17 992 | 2 285 | 5 337 | 7 337 | -5 662 | 27 286 | |
| Depreciation and amortisation expense | 4 239 | 0 | 13 | 374 | -226 | 4 401 | |
| Other operating expenses | 14 487 | 4 809 | 3 057 | 13 196 | -10 903 | 24 647 | |
| Total operating expenses | 116 956 | 27 406 | 26 602 | 21 279 | -47 825 | 144 419 | |
| Operating result | -11 027 | 3 795 | 17 546 | -17 784 | 14 603 | 7 131 |
Adjustments and eliminations
The Group evaluates segmental performance on the basis of profit or loss from operations calculated based on local financial statements. Adjustments for IFRS 16 and eliminations are included in the column adjustments and eliminations. Depreciation and amortisation excess values from business combinations are not allocated to individual segments as the underlying assets are managed on a group basis.
Adjustments and eliminations is as follows:
| Year-to-date | 30.06.2023 | |||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Revenues | Cost of | Employee | Depreciatio | Other | |
| from | inventories | benefit | n and | operating | ||
| internal | expenses | amortisation | expenses | |||
| sales | expense | |||||
| Elimination of internal sales(1) | -259 859 | -259 550 | 0 | 0 | -750 | |
| Elimination of shared services (2) | -22 836 | 0 | -4 642 | 0 | -18 240 | |
| IFRS 16 adjustments (3) | 0 | 0 | 0 | 3 153 | -3 031 | |
| GAAP-adjustment to inventory (4) | 0 | -15 779 | 0 | 0 | 0 | |
| Amortization of excess values (5) | 0 | 0 | 0 | 3 224 | 0 | |
| Gains on internal transactions (6) | 0 | 19 217 | 0 | 0 | 0 | |
| Share-based incentive program (7) | 0 | 0 | 8 209 | 0 | 0 | |
| Provision for warranty claims (8) | 0 | 0 | 0 | 0 | 9 279 | |
| Other (9) | 454 | 0 | 0 | -390 | 147 | |
| Total | -282 241 | -256 112 | 3 567 | 5 987 | -12 594 |
| Year-to-date | 30.06.2022 | |||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Revenues from internal sales |
Cost of inventories |
Employee benefit expenses |
Depreciatio n and amortisation expense |
Other operating expenses |
|
| Elimination of internal sales (1) | -66 911 | -64 565 | 0 | 0 | -1 965 | |
| Elimination of employee benefits allocated (2) | 0 | 0 | 6 605 | 0 | -6 605 | |
| IFRS 16 adjustments (3) | 0 | 0 | 0 | 2 228 | -2 333 | |
| GAAP-adjustment to inventory (4) | 0 | -1 915 | 0 | 0 | 0 | |
| Amortization of excess values (5) | 0 | 0 | 0 | 1 928 | 0 | |
| Gains on internal transactions (6) | 0 | 0 | 0 | 0 | 0 | |
| Other (9) | 0 | 0 | 0 | 0 | 0 | |
| Total | -66 911 | -66 480 | 6 605 | 4 156 | -10 903 |
| Quarter | 30.06.2023 | |||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Revenues | Cost of | Employee | Depreciatio | Other | |
| from | inventories | benefit | n and | operating | ||
| internal | expenses | amortisation | expenses | |||
| sales | expense | |||||
| Elimination of internal sales(1) | -173 395 | -169 735 | 0 | 0 | -605 | |
| Elimination of shared services (2) | -12 883 | 0 | -3 053 | 0 | -9 968 | |
| IFRS 16 adjustments (3) | 0 | 0 | 0 | 1 748 | -1 541 | |
| GAAP-adjustment to inventory (4) | 0 | -5 170 | 0 | 0 | 0 | |
| Amortization of excess values (5) | 0 | 0 | 0 | 1 869 | 0 | |
| Gains on internal transactions (6) | 0 | 13 402 | 0 | 0 | 0 | |
| Share-based incentive program (7) | 0 | 0 | 3 467 | 0 | 0 | |
| Provision for warranty claims (8) | 0 | 0 | 0 | 0 | 6 151 | |
| Other (9) | 454 | 0 | 0 | -390 | 147 | |
| Total | -185 824 | -161 503 | 414 | 3 227 | -5 815 |
| Quarter | 30.06.2022 | |||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Revenues from internal sales |
Cost of inventories |
Employee benefit expenses |
Depreciatio n and amortisation expense |
Other operating expenses |
|
| Elimination of internal sales (1) | -33 222 | -29 119 | 0 | 0 | -1 965 | |
| Elimination of employee benefits allocated (2) | 0 | 0 | -5 662 | 0 | -6 605 | |
| IFRS 16 adjustments (3) | 0 | 0 | 0 | 1 173 | -2 333 | |
| GAAP-adjustment to inventory (4) | 0 | -1 915 | 0 | 0 | 0 | |
| Amortization of excess values (5) | 0 | 0 | 0 | -1 399 | 0 | |
| Gains on internal transactions (6) | 0 | 0 | 0 | 0 | 0 | |
| Other (9) | 0 | 0 | 0 | 0 | 0 | |
| Total | -33 222 | -31 033 | -5 662 | -226 | -10 903 |
(1) Elimination of internal sales relates to sale of inventory from Zaptec Charger AS eliminated against cost of inventory, and purchased made by Zaptec Charger from other group Companies eliminated against other operating expenses.
(2) The group have global functions in several of the group companies that provides significant services to companies within the group. The amount charged for these services is presented as income in the company providing the service. The amount is eliminated on consolidation.
(3) Lease payment are expense on a linear basis under local gaap. In the IFRS financial statement the leases are accounted for in accordance with IFRS 16, by recognition of are right of use asset and a lease liability. The expenses are included as amortization of the right-of-use asset and interest on the lease liability.
(4) Novavolt includes a additional reduction of the carrying amount of inventory in line with local gaap. In the consolidated IFRS statement these reduction is reversed.
(5) Excess value from the acquisition of Novavolt is included on group level.
- (6) Gains on internal transaction of inventory.
- (7) Share-based incentive program, ref. Note 3
- (8) Provision for warranty claims, ref. Note 13
- (9) Other
Note 5 - Revenues from contracts with customers
Disaggregation of Revenue
- The Group has disaggregated revenue into various categories in the following table which is intended to:
- Depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic date; and
- Enable users to understand the relationship with revenue segment information provided in Note 4
Set out below is the disaggregation of the Group's revenue from contracts with customers:
| Year-to-date 30.06.2023 |
|||||
|---|---|---|---|---|---|
| Segments | |||||
| In NOK 1000 | Zaptec | Zaptec | Novavolt AG | Other | Total |
| Charger AS | Sverige AB | ||||
| Product sales | 221 109 | 180 745 | 130 769 | 93 666 | 626 290 |
| Other | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 221 109 | 180 745 | 130 769 | 93 666 | 626 290 |
| By business area - Geographical distribution | |||||
| Norway | 199 548 | 0 | 0 | 3 564 | 203 111 |
| Sweden | 6 666 | 180 745 | 0 | 0 | 187 411 |
| Switzerland | 0 | 0 | 130 769 | 0 | 130 769 |
| Denmark | 2 112 | 0 | 0 | 58 935 | 61 047 |
| Iceland | 2 740 | 0 | 0 | 0 | 2 740 |
| Rest of Europe | 10 043 | 0 | 0 | 31 168 | 41 211 |
| Other | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 221 109 | 180 745 | 130 769 | 93 666 | 626 290 |
| Timing of revenue recognition | |||||
| Goods transferred at a point in time | 221 109 | 180 745 | 130 769 | 93 666 | 626 290 |
| Goods and services transferred over time | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 221 109 | 180 745 | 130 769 | 93 666 | 626 290 |
| Year-to-date 30.06.2022 |
|||||
| Segments | |||||
| In NOK 1000 | Zaptec | Zaptec | Novavolt AG | Other | Total |
| Charger AS | Sverige AB | ||||
| Product sales | 141 336 | 47 321 | 86 607 | 8 464 | 283 727 |
| Other | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 141 336 | 47 321 | 86 607 | 8 464 | 283 727 |
| By business area - Geographical distribution | |||||
| Norway | 86 760 | 0 | 0 | 2 867 | 89 627 |
| Sweden | 1 664 | 47 321 | 0 | 0 | 48 984 |
| Switzerland | 0 | 0 | 86 607 | 0 | 86 607 |
| Denmark | 31 020 | 0 | 0 | 1 111 | 32 131 |
| Iceland | 5 919 | 0 | 0 | 0 | 5 919 |
| Rest of Europe | 13 288 | 0 | 0 | 4 485 | 17 773 |
| Other | 2 686 | 0 | 0 | 0 | 2 686 |
| Total operating income | 141 336 | 47 321 | 86 607 | 8 463 | 283 727 |
| Timing of revenue recognition | |||||
| Goods transferred at a point in time | 141 336 | 47 321 | 86 607 | 8 464 | 283 727 |
| Goods and services transferred over time | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 141 336 | 47 321 | 86 607 | 8 464 | 283 727 |
Note 6 - Financial income and expense
| 01.01-30.06 | |||
|---|---|---|---|
| In NOK 1000 | 2023 | 2022 | |
| Finance income | |||
| Other finance income | 887 | 1 602 | |
| Foreign currency gain | 20 929 | 0 | |
| Total finance income | 21 817 | 1 602 | |
| Finance expense | |||
| Interest on debts and borrowings | 0 | 457 | |
| Interest from leases | 131 | 248 | |
| Loss on investments at fair value | 0 | 5 312 | |
| Unwinding of discount on contingent considerations | 0 | 1 037 | |
| Other finance expense | 893 | 887 | |
| Foreign currency loss | 9 654 | 0 | |
| Total finance expense | 10 678 | 7 940 |
| Investment in fund | |
|---|---|
| In NOK 1000 30.06.2023 |
30.06.2022 |
| Opening balance | 0 183 500 |
| Sold during the period | 0 -91 006 |
| Change in fair value | 0 -4 758 |
| Closing balance | 0 87 736 |
The remaining funds were sold in October 2022.
Note 7 - Income tax
The tax expense is calculated as 22% of the profit (+)/loss (-) before tax adjusted for items that will impact the effective tax rate. The calculation for the 6-month period ended 30.06.2023 follows:
| 01.01-30.06 | |||
|---|---|---|---|
| In NOK 1000 | 2023 | 2022 | |
| Profit (+)/loss (-) before tax | 26 215 | -3 612 | |
| Adjustment for losses not recognised as deferred tax asset | 26 427 | 28 878 | |
| Difference in tax rates | 102 | -4 507 | |
| Non deductible share based payment arrangement | -7 118 | -10 817 | |
| Calculated interest on contingent consideration | 0 | 1 037 | |
| Other differences | 7 008 | 229 | |
| Estimated basis for tax expense | 52 635 | 11 208 | |
| Tax expense | 22 % | 11 580 | 2 466 |
Deferred tax asset is not recognized for losses generated in jurisdiction where the group has not yet identified convincing evidence of future taxable income. As of 30.06.2023 this applies to Germany, UK, France and Netherlands.
Note 8 - Intangible assets and goodwill
| 30.06.2023 | |||||
|---|---|---|---|---|---|
| In NOK 1000 | Goodwill | Intangible asset |
Property, plant and |
Right of use assets |
Total |
| equitpment | |||||
| Opening balance | 69 638 | 86 074 | 9 015 | 15 710 | 180 437 |
| - Amortisaton and depreciation | 0 | -7 185 | -1 745 | -3 153 | -12 084 |
| + Purchases and new leases | 0 | 6 480 | 4 222 | 3 973 | 14 675 |
| - Disposals | 0 | 0 | 0 | -7 301 | -7 301 |
| +/- Foreign currency effects | 8350 | 2386 | 68 | 512 | 11 316 |
| Closing balance | 77 988 | 87 754 | 11 559 | 9 741 | 187 042 |
Note 9 - Inventories
The inventory consists solely of finished goods (acquired goods produced for the group for resale).
Total current purchase obligations of EV chargers from Westcontrol and Sanmina amounts to 1 922 MNOK from June 2023 till June 2024. A significant portion of the committed production may be postponed to 2024 based on quarterly updated forecasts.
The balance has increased by 220,2 MNOK (997%) when compared to the balance at 30 June last year. The reason for this is two-fold, partly due to the macroeconomic developments with higher interest rates and lower electric car sales in Norway, which have led to a temporary lower demand in the market for Pro charging systems. This combined with the fact that, as planned, production has been increased in 2023 in order to build up finished goods stock to meet increased demand going forward have led to this increase in inventory. We consider lower demand for Zaptec Pro to be temporary, but will at the same time reduce and postpone future production of Zaptec Pro if necessary to optimize the stock of Zaptec Pro going forward.
Note 10 - Trade receivables
Provision for credit losses are 0,7 MNOK at 30 June 2022 and 3,7 MNOK at 30 June 2023.
The increase in outstanding are due to higher sales current year compared to the same period last year.
Note 11 - Other current assets
| In NOK 1000 30.06.2023 Loan to finance inventory* 77 959 VAT refund 26 486 Other 14 928 |
Breakdown of other current assets: | ||
|---|---|---|---|
| 30.06.2022 | |||
| 40 000 | |||
| 6 599 | |||
| 21 480 | |||
| Total | 119 372 | 68 079 |
* The company have not identified any impairment indicators related to the loans to Westcontrol and Sanmina.
Note 12 - Other non-current assets
| Breakdown of other non-current assets | ||
|---|---|---|
| In NOK 1000 | 30.06.2023 | 30.06.2022 |
| Investment in Switch EV Ltd. | 4 872 | 0 |
| Other | 201 | 0 |
| Total | 5 073 | 0 |
Note 13 - Provisions
The company have a provision for warranty claims of 11,3 MNOK at period end.
The remaining long term provisions is related to the long-term incentive program for employees.
Note 14 - Loans and borrowings
| In NOK 1000 | 30.06.2023 | 30.06.2022 | |
|---|---|---|---|
| Start of period: | |||
| Non-current | 0 | 0 | |
| Current | 29 229 | 1 918 | |
| Total | 29 229 | 1 918 | |
| Draw down on credit facility | New loans | 0 | 24 509 |
| Loans | Repayments | -29 229 | -1 918 |
| Other changes | Other | 0 | 0 |
| Net changes | -29 229 | 22 591 | |
| End of period: | |||
| Non-current | 0 | 0 | |
| Current | 0 | 26 426 | |
| Total | 0 | 26 426 | |
Zaptec drew down 0 MNOK on the existing credit facility at period end.
The Group have increased it's overdraft facility from 50 MNOK to 70 MNOK in 2022. The interest rate is 5,9 % of overdraft. The terms are as follows:
- Short term overdraft facility.
- Annual maturity, will be renewed automatically when a credit rating is performed.
The financial covenants are as follows:
- Total overdraft shall not exceed 70% of total book value of projects in progress, inventory and trade receivable (not older than 90 days).
- Positive adjusted EBITDA on a consolidated level on a year to date basis.
- Dividend from Zaptec ASA to be approved.
- No sale or transfer of IP-rights from or between any of the group companies without prior approval.
The company have complied with all covenants as at, and for the three months ended 31 March 2023.
Part from transaction with key management and board members included in Note 7 there are no transactions with related parties.
Note 15 - Events after the reporting date
No material events occured after reporting date.
Alternative Performance Measures
Zaptec may disclose alternative performance measures as part of its financial reporting as a supplement to the financial statements prepared in accordance with IFRS. Zaptec believes that the alternative performance measures provide useful supplemental information to management, investors, security analysts and other stakeholders and are meant to provide an enhanced insight into the financial development of Zaptec's business operations and to improve comparability between periods.
Available Liquidity
Cash, cash equivalents, other funds (financial investments) and available overdraft facility. The Group has presented this APM because it considers it to be an important supplemental measure for investors to understand the overall picture of the Group's financial position.
Gross Margin
Gross profit as a percentage of revenues. Gross profit is defined as revenues from contracts with customers less cost of goods sold. The Group has presented this APM because it considers it to be an important supplemental measure for investors to understand the profit generation in the Group's operating activities.
EBITDA
The profit/(loss) for the period before tax expense, finance expense, finance income and depreciation and amortisation expense. The Group has presented this APM because it considers it to be an important supplemental measure for investors to evaluate the operating performance of the Group.
EBITDA Margin
EBITDA as a percentage of revenues. The Group has presented this APM because it considers it to be an important supplemental measure for investors to understand to evaluate the operating performance of the Group.
OPEX
Employee benefit expenses plus other operating expenses.
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.
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, 2022. These forwardlooking 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 we will achieve or accomplish these expectations, beliefs or projections.
Zaptec ASA P.O. Box 8034 4068 Stavanger, Norway www.zaptec.com
Signature Certificate
Reference number: 7J8YV-VPJJX-T2LBI-EGUFS
| Signer | Timestamp | Signature |
|---|---|---|
| Stig Harry Christiansen |
||
| Email: [email protected] | ||
| Sent: | 05 Oct 2023 13:42:09 UTC | |
| Viewed: | 05 Oct 2023 14:14:04 UTC | |
| Signed: | 05 Oct 2023 14:14:23 UTC | |
| Recipient Verification: | ||
| ✔Email verified | 05 Oct 2023 14:14:04 UTC | |
| Ingelin Drøpping Email: [email protected] |
||
| Sent: | 05 Oct 2023 13:42:09 UTC | |
| Viewed: | 05 Oct 2023 15:53:19 UTC | |
| Signed: | 05 Oct 2023 15:53:49 UTC | |
| Recipient Verification: | ||
| ✔Email verified | 05 Oct 2023 15:53:19 UTC | |
| Kurt Østrem Email: [email protected] |
||
| Sent: | 05 Oct 2023 13:42:09 UTC | |
| Viewed: | 05 Oct 2023 16:32:11 UTC | |
| Signed: | 05 Oct 2023 16:32:44 UTC | |
| Recipient Verification: | ||
| ✔Email verified | 05 Oct 2023 16:32:11 UTC | |
| Document completed by all parties on: |
IP address: 79.160.137.182 Location: Bryne, Norway
IP address: 51.175.66.129 Location: Oslo, Norway
IP address: 213.188.28.252 Location: Stavanger, Norway
09 Oct 2023 07:02:47 UTC
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Signature Certificate
Reference number: 7J8YV-VPJJX-T2LBI-EGUFS
| Signer | ||
|---|---|---|
| -- | -------- | -- |
Signer Timestamp Signature
Jennifer Dungs
Email: [email protected]
Sent: 05 Oct 2023 13:42:09 UTC Viewed: 06 Oct 2023 07:19:02 UTC Signed: 06 Oct 2023 07:19:19 UTC
Recipient Verification:
✔Email verified 06 Oct 2023 07:19:02 UTC
An De Pauw
Email: [email protected]
Sent: 05 Oct 2023 13:42:09 UTC Viewed: 08 Oct 2023 19:03:32 UTC Signed: 08 Oct 2023 19:03:53 UTC
Recipient Verification:
✔Email verified 08 Oct 2023 19:03:32 UTC
Christian Rangen
Email: [email protected] Shared via link
Sent: 05 Oct 2023 13:42:09 UTC Viewed: 05 Oct 2023 16:18:58 UTC Signed: 09 Oct 2023 07:02:47 UTC
IP address: 195.52.57.97 Location: Eystrup, Germany
IP address: 80.200.237.185 Location: Borsbeek, Belgium
IP address: 92.221.72.64 Location: Stavanger, Norway
Document completed by all parties on: 09 Oct 2023 07:02:47 UTC
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