Zaptec AS — Interim / Quarterly Report 2022

Feb 15, 2023

Q4 Report 2022

15 February 2023

Highlights Q4	4
Financial Summary	5
Market Development	7
Q4 Stories	11
Outlook	15
Financial Statements	16

Update from the CEO

Zaptec continued its growth in the fourth quarter of 2022, where revenues increased by 29% compared to the fourth quarter of 2021. The company made strategic investments in organization and product development in new and vital growth markets.

markets, mainly in markets such as Germany and the UK, which have an estimated annual growth in electric car sales over the next four years of around 15-20%. We're convinced that the investments are necessary for our long-term success, even though it has harmed the result in the fourth quarter. The goal is for Zaptec to continue to deliver the best quality of our products in all markets, says the CEO of Zaptec, Peter Bardenfleth-Hansen. – We have recently signed contracts with large housing developers in the UK. The

The CEO elaborates that the company has invested significant sums in setting itself up for further growth, most recently with a presence in the Benelux markets and towards obtaining product approval from the German and British authorities. British authorities approved the product in January 2023, meaning that Zaptec is ready to compete in the home charger segment against British players.

country's legal requirement for smart chargers for all new homes confirms a need for safe charging stations that deliver high quality. The smart charging regulation also saves the power grid from an unnecessary load, says Bardenfleth-Hansen.

Peter Bardenfleth-Hansen

Highlights Q4 2022

• The Zaptec growth story continued; 29% revenue growth from Q4'21 and 55% revenue growth from 2021FY to 2022FY • Continued increased export share to 68% vs 57% in Q4 2021 • Gross margin of 38% and EBITDA of -23MNOK • Significant investments in new subsidiaries and technical development –

• including recruiting competent staff and adapting product offerings to new countries

• Major steps taken in large European markets positive momentum in the UK with compliance with all UK smart charging regulatory requirements reached, production of the UK version of Zaptec Go started at Westcontrol and several housebuilder contracts signed
• Positive outlook for gross margin, driven by increased product pricing, additional premium pricing for MID certified charging stations and reduced key component input costs
• Above effects also expected to drive EBITDA margin, which will furthermore be supported by strong cost focus.

• Positive outlook for gross margin, driven by increased product pricing, additional premium pricing for MID certified charging stations and reduced key component input costs
• Above effects also expected to drive EBITDA margin, which will furthermore be supported by strong cost focus.
Key financial figures
MNOK/%	Q4-22	Q4-21	FY 2022	FY 2021
Revenues	249	193	759	489
Export Share	68%	57%	69%	51%
Gross margin	38%	51%	40%	44%
Opex	118	54	303	140
EBITDA	-23	45	4	75
EBITDA Margin (%)	-9.2%	23.4%	0.5%	15.4%
Available liquidity (TBD)	1141	309	1141	309
1 Including cash, deposits, funds and available overdraft facility of 41MNOK

Key financial figures

Quarterly revenue and order intake (MNOK)

Financial summary

Revenue

Fourth quarter revenue of 249 MNOK, which is an increase of 29% compared to the same period last year. For 2022 in total, the revenues increased 55% from 489 to 759 MNOK.

Registered purchase orders in the fourth quarter was 276 MNOK, an increase of 85% compared to the same period last year. Backlog of orders with scheduled deliveries throughout 2023 of 173 MNOK by end of 2022.

The export share was 68% in the fourth quarter compared to 57% in the same period last year.

Gross margin

Gross margin in the quarter was 38% compared to 51% same period last year. For 2022 in total, the gross margin was 40%, compared to 44% in 2021.

Opex

Total employee benefit expenses and other operating expenses in the fourth quarter was 118 MNOK, an increase of 118% compared to same period last year.

Personnel expenses in the fourth quarter increased 106% compared to same period last year. At the end of December 2022 Zaptec had 150 employees, compared to 80 employees at end of December 2021.

Other operating expenses in the fourth quarter increased 135% compared to the same period last year. The increase is largely related to marketing, sales, consultants and expenses for expanding presence in Europe in addition to uplisting to Oslo stock exchange. EBITDA in the fourth quarter was -23 MNOK compared to 45 MNOK in fourth

EBITDA

quarter 2021.

Available Liquidity

The cash balance with total cash, available overdraft facility, deposits and other funds per end of December 2022 was 114 MNOK.

Other highlights Q4 2022

European patent for dynamic phase balancing technology to be granted

In December, Zaptec received a notification from the European Patent Office (EPO) that patent for dynamic phase balancing technology will be granted in all European countries. Zaptec's dynamic phase balancing technology enables significant cost savings, better power distribution and higher charging speeds. Patent for same technology is already granted in China and Japan. This is a key milestone for Zaptec following significant effort. It will be a key competitive advantage in target markets going forward, both by demonstrating Zaptec's uniqueness and increased protection for Zaptec's intellectual property rights.

The patent is expected to be granted during first half of 2023.

Positive momentum with UK homebuilders

In the fourth quarter Zaptec reached compliance with all UK EV charging regulatory requirements. Further, the production of the UK version of Zaptec Go was initiated at Westcontrol. Zaptec has gained positive momentum within the homebuilding industry and signed several key contracts for provision of Zaptec Go smart chargers over the next 2-3 years. On 22 December 2022, the uplisting of Zaptec to the main list at Oslo Stock Exchange took place. Compared to the previous listing at Euronext Growth Oslo,

Listing on Oslo Stock Exchange

being listed at the main list provides Zaptec with access to broader potential investor base.

Market development

Increasing addressable market

Zaptec's addressable market is increasing significantly over time due to new market entries and transition from internal combustion engine to electric vehicles.

Expanding from current main markets (Norway, Sweden, Switzerland and Iceland) with 413 000 new EV passenger vehicle registrations in 2022; to 1,8 mill new EV passenger vehicle registrations in 2022 in the 2023 target markets which also includes UK, Germany, France and the Netherlands, is equivalent to 4.4x increase in addressable market;

As vehicle OEMs over time transition away from Internal Combustion Engine (ICE) vehicles to focus exclusively on EVs, the addressable market increase is even larger. Based on 2022 passenger vehicle registrations, expanding the focus areas to the 2023 target markets implies a 7.8x increase in addressable market.

Source: European Automobile Manufacturers' Association (ACEA)

Market development

EV sales in the European Union on the rise

the overall decline of the EU car market. The market as a result, market share of BEVs expanded to 12.1%, a 3.0-percentage-point improvement compared to 2021. It was a strong year also for hybrid cars, which achieved a market share of 22.6%. By contrast, traditional petrol and diesel fuel-types continued to lose ground.

• In Q4, EU registrations of new battery electric cars expanded by 31.6% to 406,890 units, as most of the region's markets recorded growth. Germany led the way with 198,293 units and an increase of 66.1%, followed by France which increased by 12.6% to 62,155 units
• After a weak Q3, EU plug-in hybrid car sales saw a strong rise (+29.5%) in the last quarter of 2022, bolstered by a 73.5% increase in Germany, which alone represented more than half of the region's registrations in this category
• Hybrid electric vehicles (HEVs) totaled 545,316 units registered in the EU from October to December last year (an increase of 22.2% compared to the same period in 2021), making them the second best-selling fuel type. This led to an overall increase of 8.6% over the full year, and a market share of 22.6%

Source: European Automobile Manufacturers' Association (ACEA)

Market development

Observations regarding major European markets

The market for electric vehicles including battery electric and plug-in battery electric vehicles is increasing over time, supported by key industry trends as the world is moving towards decarbonizing the transport sector.

Some observations regarding major European markets:

1) Step-wise growth in adoption rates

• In intervals of only a few years, Norway went from practically no adoption, to 3-4%, to around 20%, to the vast majority. Following this, the market has moved to EVs constituting most new registrations, a few years later, even with reduced incentives and subsidies
• The same development is now being seen in the major European markets, with key markets like Germany, the UK and France all accelerating from 3-4% to around 20% in the matter of a few years. Speaking from experience, we would not be surprised to see a similar jump to the vast majority in the major markets – provided the infrastructure is in place great and highly competitive models coming to market – even without political
• Now observing similar pattern in major EU markets, going from ~3-4% to around 20%

2) New, high quality electric vehicle models

• Automakers massive investments in dedicated EV drivetrains, is starting to result in incentives. A good example is VW's ID.4-range. The market is close to a stage where EVs "outcompete" fossil fuel models on both quality and price, which we would expect to trigger adoption rate increase. • We expect this to continue in the first half of 2023 – however, over time, new car
• Alongside growing charging infrastructure, this development should drive adoption rate acceleration
• Another, recent observation is that some producers, like Tesla, have started to compete on price, positively impacting sales.

3) Lumpy, but "mean reverting" new vehicle sales over time

• New car sales can be very lumpy.
• Sales were very high during 2020 and 2021 driven by low cost of capital and very high disposable income from high saving rates, and oppositely, low in 2022 after inflation pressure and increasing interest rates.
• sales should revert to an average level based on car lifetimes, potentially even with a transitory lag effect from postponed new car investments

Internationalisation

Zaptec intends to grow across Europe in the short term, and in the USA in the medium term. As European markets EV adoption is set to increase further, Zaptec strategy is to grow internationally and has established subsidiaries where EV adoption is increasing. To date, Zaptec has established subsidiaries in Sweden, Denmark, UK, Germany, Switzerland, France and the Netherlands. The subsidiary in the Netherlands was established in Q3.

The export share increased from 57% in Q4-21 to 68% in Q4-22. This was driven by significant revenue growth outside Norway of 55% from 109 to 169 MNOK from Q4-21 to Q4-22.

Denmark, Sweden and Switzerland were the main export markets in the fourth quarter. The outlook for continued strong growth in these markets good as Zaptec has gained significant momentum and market shares in these countries.

In addition, Zaptec is in the early phase of penetrating massive new European markets. Zaptec started gaining momentum in the UK, where the production and sale of Zaptec Go has been initiated. Going forward, Zaptec expects additional expansion in the UK, followed by ramp-up in German, Benelux and French markets will drive export share higher combined with continued strong sales in Sweden and Switzerland.

United Kingdom

Zaptec gained positive momentum in the UK with compliance with all regulatory requirements reached, production of Zaptec Go started and several housebuilder contracts signed.

During 2022, Zaptec has built a strong UK organization. At the end of Q4 the number of full-time employees in the UK organization was 16, of which the majority was recruited during 2022. In Q4, compliance with UK EV smart charging regulatory requirements was reached, enabling the production start of a dedicated UK version of the Zaptec Go at Westcontrol. Following successful production start, the Zaptec Go deliveries commenced.

In the UK there is a requirement for new and retrofit homes to install a smart EV charger. According to the UK government, savings of up to £1000 per year is achievable by using a smart EV charger compared to conventional/non-smart EV charger. Zaptec is one of the front-runners in the UK EV smart charging market and has already signed contracts with six of the largest homebuilders for provision of Zaptec Go over the next 2-3 years. The legislation currently applicable of England only, but Scotland is expected to follow in Q2 2023.

In addition to start of Zaptec Go sales, the Zaptec Park payment solution has been launched in the UK.

To fully exploit the potential in the UK market, Zaptec is considering strategic partnership opportunities and active discussions are currently ongoing.

Germany

Zaptec revitalised its efforts in Germany by hiring a new Managing Director and additional resources to the German organization. In addition, production start of Zaptec Pro at Sanmina's production facilities in the Bavaria region is expected to be an important selling point going forward.

In Q4, the Zaptec Germany organization was reorganized and revitalized by hiring a new Managing Director and additional competent staff to bring the total number of full-time employees to 7. The German Zaptec team is aiming to leverage the Swiss organization when it comes to sales efforts.

Production of 'Made in Germany' Zaptec Pros at Sanmina's production facilities in Gunzenhausen in the Bavaria region was fully established during Q4. Sales of both Zaptec Go and Zaptec Pro has been initiated in Germany. However, compliance with Measurement Instruments Directive (MID) will separate Zaptec from many of its competitors and is expected to be a key sales enabler for Zaptec Pro, expected from Q1 2023.

Future milestones currently being actively worked is launching distribution through one of Germany's biggest electric wholesalers with nationwide coverage of installers and start of partnership with a pioneer in the advancement of energy transition, to bring Zaptec to B2C and B2B customers in a Germany/Switzerland agreement.

Benelux

The EV adoption in Benelux is among top 5 in Europe and the market potential for Zaptec is significant in this region. In Q4 the Zaptec Benelux organization was fully in place and started the journey towards becoming yet another successful subsidiary.

Following recruitment of a new Managing Director for Zaptec Benelux in the end of Q3, additional experienced personnel was brought in during Q4. Initial focus for the team has been on establishing the business and gaining momentum mainly in Belgium and the Netherlands.

The initial market feedback has been positive; Zaptec products are considered best-in-class alternative compared to current dominant competition.

Sales of both Zaptec Pro and Zaptec Go have been initiated in both countries.

Future milestones includes digital marketing and brand awareness activities to be initiated in Q1. Further, a strong ramp-up of Pro and Go sales expected when MID compliance and P1 connection is in place, expected from Q1 2023.

France

The French market has significant potential, however with strict regulatory requirements, full compliance and ramp-up of sales is still pending.

Zaptec has an organization in place. At the end of Q4, Zaptec France had 3 full-time employees. The French team has done extensive work related to competitor analysis and pre-sales efforts to prepare for significant ramp-up once product development efforts materialise to prouct compliant with French regulations. – expected in 2023.

Prototypes for French version of both Zaptec Pro and Zaptec Go were completed in Q4.

Future milestones include finalising Pro and Go technical development for compliance with regulatory requirements, start of production and ramp-up in marketing and sales efforts

Outlook

Going forward, Zaptec believes in strong revenue growth and improved margins.

Zaptec's revenue growth going forward is expected to be strong, driven by increased growth in core markets combined with market penetration in new large European markets.

Also, positive outlook for EBITDA margin development, driven by higher gross margin which is expected due to higher product pricing, improved environment for component sourcing, in addition to a strong cost focus.

Financial Statements

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

		Quarters		Full year
In NOK 1000	Note	Q4 2022	Q4 2021	2022	2021
Operating income
Revenues from contracts with customers	6,13	249 049	192 840	758 909	488 999
Total operating income		249 049	192 840	758 909	488 999
Operating expenses
Cost of inventories	3,4	154 133	93 648	451 726	273 843
Employee benefit expenses	3,4	63 395	30 811	160 620	77 973
Depreciation and amortisation expense	4,8	5 590	4 568	20 378	12 890
Other operating expenses	4	54 396	23 166	142 869	61 791
Total operating expenses		277 514	152 193	775 592	426 497
Operating profit/loss		-28 465	40 647	-16 683	62 502
Financial income and expenses
Finance income	6	-933	1 899	6 366	5 115
Finance expense	6	2 022	2 647	16 055	4 983
Net financial income (+) and expenses (-)		-2 954	-747	-9 689	133
Profit (+)/loss (-) before tax		-31 420	39 900	-26 373	62 635
Tax expense (+)/benefit (-)	7	-10 589	7 498	-2 967	17 134
Profit (+)/loss (-) after tax		-20 831	32 402	-23 405	45 501
Total profit/loss attributable to:
Owners of the parent		-20 831	32 402	-23 405	45 501
Non-controlling interest		0	0	0	0
Basic earnings per shares (in NOK)	10	- 0,27	0,43 -	0,31	0,60
Diluted earnings per shares (in NOK)	10	- 0,27	0,39 -	0,31	0,56
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
		Quarters		Full year
In NOK 1000	Note	Q4 2022	Q4 2021	2022	2021

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters Full year
In NOK 1000 Note Q4 2022 Q4 2021 2022 2021
Profit/loss for the period -20 831 32 402 -23 405 45 501
Items that will or may be reclassified to profit or loss:
Exchange gains arising on translation of foreign operations -14 734 1 545 6 124 3 905
Total comprehensive income -35 565 33 947 -17 282 49 406
Total comprehensive income attributable to:
Owners of the parent -35 565 33 947 -17 282 49 406
Non-controlling interest 0 0 0 0

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In NOK 1000	Note	31/12/2022	31/12/2021
ASSETS
Goodwill and intangible assets
Goodwill	8	69 638	63 061
Other intangible assets	8	86 075	78 064
Deferred tax asset
Deferred tax asset	7	12 183	5 468
Tangible assets
Property, plant and equipment	8	9 015	5 061
Right-of-use assets	8	15 710	15 210
Other non-current assets	9	125	109
Total non-current assets		192 745	166 973
Inventories
Inventories	10	90 257	26 173
Receivables
Trade receivables	11	120 148	80 916
Other current assets
Financial Investments	6	4 872	183 500
Other current assets	12	111 828	28 605
Cash and cash equivalents
Cash and cash equivalents		73 634	76 258
Total current assets		400 739	395 451
TOTAL ASSETS		593 484	562 424

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In NOK 1000	Note	31/12/2022	31/12/2021
EQUITY AND LIABILITIES
Equity
Share capital		1 146	475
Treasury shares		0
Share premium		359 185	355 362
Not registered capital increase			3 825
Other paid in equity		6 855	11 328
Foreign exchange reserve		12 804	4 024
Other reserves		-14 213	19 500
Total equity		365 776	394 514
Non-current liabilities
Deferred tax	7	6 703	5 360
Long-term lease liabilities		10 528	11 619
Long-term provisions	13	4 395	6 905
Total non-current liabilities		21 625	23 884
Current liabilities
Trade payables		142 076	66 142
Short-term loans and borrowings	14		3 833
Short-term lease liabilities		5 414	3 813
Contingent consideration			38 963
Tax payable		3 386	9 248
Other current liabilities		55 207	22 026
Total current liabilities		206 083	144 026
Total liabilities		227 709	167 910
TOTAL EQUITY AND LIABILITIES		593 484	562 424

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

		Quarters		Full year
In NOK 1000	Note	Q4 2022	Q4 2021	2022	2021
CASH FLOW FROM OPERATING ACTIVITIES
Profit (+)/loss (-) before tax		-31 420	39 901	-26 373	62 635
Depreciation and amortisation expense		5 590	4 568	20 378	12 890
Shared based payment expense		3 630	-5 342	11 511	0
Finance income		8 565	-2 006	6 272	-4 679
Finance expense		9 064	1 938	18 685	3 608
Interest received		88	-3	94	0
Increase in trade receivables		6 475	-3 413	-39 232	-10 564
Increase in inventories		-32 531	1 555	-64 084	-39 054
Increase in trade payables		-17 220	-3 137	75 934	28 683
Change in other accrual items		-78 175	-2 735	-80 615	-941
NET CASH FLOW FROM OPERATING ACTIVITIES		-125 932	31 326	-77 430	52 578
CASH FLOW FROM INVESTMENT ACTIVITIES
Acquisition of subsidiary, net of cash acquired		0	1 357	0	-18 298
Purchases of property, plant and equipment		-6 993	769	-25 451	-16 973
Proceeds from sale of investments (funds)		86 685	0	177 691	40 000
Advances/loans to suppliers		-14 206	10 000	-67 397	0
Investments in other entities		0	0	-4 872	0
Cash flows from other investements		0	-192	67	-110
NET CASH FLOW FROM INVESTMENT ACTIVITIES		65 487	11 934	80 038	4 619
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of loans and borrowings		-958	-958	-3 833	-3 833
Draw down on credit facility		-1 174	-12 366	29 229
Lease liabilities		-1 288	-893	-4 546	-2 901
Interest on lease liabilities		-135	-126	-511	-436
Interest on debts and borrowings		-998	407	-2 119	-205
Purchase of treasury shares		-100	-7 495	-9 157	-7 495
Settlement of option agreement	3	0	0	-15 984	0
Sale of treasury shares	3	1 126	2 998	1 689	2 998
Proceeds from equity		0	3 825	0	7 200
NET CASH FLOW FROM FINANCING ACTIVITIES		-3 527	-14 608	-5 233	-4 673
Net change in cash and cash equivalents		-63 972	28 651	-2 624	52 524
Cash and cash equivalents at start of period		137 605	47 607	76 258	23 734
CASH AND CASH EQUIVALENTS AT END OF PERIOD		73 635	76 258	73 635	76 258

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

			Not		Foreign		Total equity	Non
	Share	Share	registered	Other paid	exchange		holders of	controlling
In NOK 1000	Capital	premium	capital	in capital	reserve	Other equity	the parent	interest	Total equity
1 January 2021	469	323 993	0	2 931	118	-21 940	305 571	87	305 658
Profit (+)/loss (-) after tax						45 501	45 501		45 501
Other comprehensive Income					3 905		3 905		3 905
Purchase of non controlling interest						-7 409	-7 409	-87	-7 496
Sale of treasury shares						2 998	2 998		2 998
Capital increase	6	31 369	3 825			350	35 550		35 550
Share based payments				8 396			8 396		8 396
31 December 2021	475	355 362	3 825	11 327	4 023	19 500	394 512	0	394 514
1 January 2022	475	355 362	3 825	11 328	4 024	19 500	394 514		394 514
Profit (+)/loss (-) after tax						-23 405	-23 405		-23 405
Other comprehensive Income					8 778	-2 163	6 615		6 615
Purchase of treasury shares	-2					-9 155	-9 157		-9 157
Sale of treasury shares	2					1 687	1 689		1 689
Capital increase	672	3 823	-3 825			-675	-6		-6
Settlement of share based payment*				-15 984			-15 984		-15 984
Share based payments				11 511			11 511		11 511
31 December 2022	1 146	359 185	0	6 855	12 803	-14 213	365 776	0	365 776

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 1 5 February 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 2021 IFRS financial statement issued by the company on the 1 4 of October 2022. The Group has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2021

Note 2 -Significant accounting policies

Please note that we have made non-financial changes from 2021 IFRS Financial statements: annual financial statements, except for the amendments which apply for the first time in 2022. However, none of the amendments has had a material effect on the consolidated financial statements of the Group.

• Changed to two separate statements for profit and loss and statement of comprehensive income
• Changed text in some line items in the primary financial statements

Note 3 -Significant events and transactions

Resignation from CEO

to the Oslo Stock Exchange's main list. The first day of trading of the company's shares on the Oslo Stock Exchange's main list was 22.1 2.2022. Former CEO in Zaptec ASA, Anders Thingbø, resigned from his position February 28th 2022. Zaptec have reimbursed parts of Thingbø's remaining options based on existing agreements between the company and Thingbø. The settlement has been accounted for as an acceleration of vesting, and the amount that otherwise would have been recognised for services received over the remainder of the vesting period (to 1 .1 0.2022) has been expensed in the first quarter of 2022. The reimbursement payment made to the former CEO on the settlement of the grant is accounted for as the repurchase of an equity interest, i.e. as a deduction from equity, as there is no payment in excess of the fair value of the equity instruments granted, measured at the repurchase date.

Production

Due to challenges with component shortage, the company's main producer of EV chargers, Westcontrol had production stop throughout April month 2022. The delayed production is equivalent to sales of approximately 70 MNOK. At year end this backlog is met.

Listing on Oslo Stock Exchange

Zaptec ASA received approval from Oslo Stock Exchange to transfer the listing of the shares in Zaptec ASA from trading on Euronext Growth Oslo We had significantly increased expenses in Q4 2022 related to this process. Total expenses for 2022 is 1 3,5 MNOK.

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 employee's annual salary at 01 .01 .2022 and has a vesting period of three years from 01 .01 .2022. Under the program the number of shares received is fixed at 01 .01 .2022. The number equals 20% of the annual salary less withholding tax divided by the share price as of Zaptec.

As part of the scheme the employee will receive a cash bonus equal to hers/his income tax payable triggered by the program. If the employee leaves during the vesting period the shares received should be returned to the company, the cash portion would not be returned. The shares will be transferred to the employee when all arrangement are completed.

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 31 .1 2.2022. The share portion 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. The cash portion was expensed in full at grant date, as there are no veseting period for the cash portion. The provision for the cash portion is updated based on the estimated income tax triggered by the actual transfer of the share at each reporting date.

Share-based incentive program for management

Share-based incentive program for management defined number of shares after a vesting period of 36 month. A total of 440 000 rights to receive shares has been granted under this program as of
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.
Share based payment expense is charged to the income statement with the following amount in 2022.
	Q4 01 .01 2022	- 31 .1 2 2022
2022 Option program	733	3 653
2022 Share-based incentive program for all employees	31 7	1 402
2022 Cash portion Share-based incentive program for all employees	-2 031	686
2022 Share-based incentive program for management	3 582	6 457
Provision for social security contribution*	-1 287	-5 791
Total share based payment expense	1 31 3	6 406
* The provision for social security contribution is accrued based on the intrinsic value of the equity instruments vested. As a result of the signficant reduction of the Zaptec share the provision has been reduced during 2022. All sale or purchase of treasury shares are related to options and/or the share-based incentive programs. The settlement of option agreement this year (-1 5,9 MNOK) relates to reimbursement for terminating option agreement.

Sale of remaining funds

The remaining interest funds was sold in October 2022.

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

Consist of all other legal entities in the group.

01 .01 - 31 .1 2.2022	Zaptec	Zaptec	Novavolt	Other	Adjustment	Total
	Charger AS	Sverige AB	AG		s and eliminations
In NOK 1 000 Operating income
Revenues from contracts with customers	363 1 29	1 55 71 4	21 0 1 52	29 91 4	0	758 909
Revenues from internal sales	291 060	3 392		0 1 000	-295 451	0
Other operating income	0	0	0	0	0	0
Total Operating income	654 1 88	1 59 1 06	21 0 1 52	30 91 4	-295 451	758 909
Operating expenses Cost of inventories	433 049	1 1 0 075	1 06 308	22 983	-220 688	451 726
Employee benefit expenses	83 979	8 703	22 382	28 774	1 6 782	1 60 620
Depreciation and amortisation expense	9 020	0	36	1 558	9 764	20 378
Other operating expenses	93 277	30 552	74 796	49 933	-1 05 688	1 42 869
Total operating expenses	61 9 324	1 49 330	203 522	1 03 247	-299 830	775 592
Operating result	34 864	9 776	6 630	-72 332	4 379	-1 6 683
01 .01 - 31 .1 2.2021
	Zaptec	Zaptec	Novavolt	Other	Adjustment	Total
	Charger AS	Sverige AB	AG		s and
In NOK 1 000					eliminations
Operating income
Revenues from contracts with customers	344 072	74 047	65 884	4 969		0 488 972

	Zaptec	Zaptec	Novavolt			Total
	Charger AS	Sverige AB	AG		s and
					eliminations
Operating income
Revenues from contracts with customers	344 072	74 047	65 884	4 969		0 488 972
Revenues from internal sales	88 736		0 0	0	-88 736	0
Other operating income	0	0	0	0	27	27
Total Operating income	432 808	74 047	65 884	4 969	-88 709	488 999
Operating expenses
Cost of inventories	268 030	53 083	35 922	548	-83 740	273 843
Employee benefit expenses	50 432	4 1 75	7 720	1 3 005	2 640	77 972
Depreciation and amortisation expense	6 1 00	0	1 0	1 806	4 975	1 2 891
Other operating expenses	45 686	6 326	1 426	1 3 072	-4 71 8	61 792
Total operating expenses	370 248	63 584	45 078	28 431	-80 843	426 498
Operating result	62 561	1 0 464	20 806	-23 462	-7 866	62 502
Q4-2022
	Zaptec	Zaptec	Novavolt	Other	Adjustment	Total
	Charger AS	Sverige AB	AG		s and
In NOK 1 000					eliminations
Operating income
Revenues from contracts with customers	1 21 473	63 1 44	49 335	1 5 096		0 249 049

Total operating expenses	370 248	63 584	45 078	28 431	-80 843	426 498
Q4-2022
In NOK 1 000	Zaptec Charger AS	Zaptec Sverige AB	Novavolt AG		s and eliminations	Total
Operating income
Revenues from contracts with customers	1 21 473	63 1 44	49 335	1 5 096		0 249 049
Revenues from internal sales	1 38 359	1 095		0 250	-1 39 705	0
Other operating income	0	0	0	0	0	0
Total Operating income	259 832	64 239	49 335	1 5 346	-1 39 705	249 049
Operating expenses
Cost of inventories	1 42 262	43 71 1	1 7 1 82	1 3 725	-62 746	1 54 1 33
Employee benefit expenses	33 535	4 1 02	7 992	1 0 095	7 670	63 395
Depreciation and amortisation expense	2 61 0	0	1 5	320	2 645	5 590
Other operating expenses	44 308	1 9 385	66 908	1 4 653	-90 859	54 396
Total operating expenses	222 71 4	67 1 99	92 097	38 793	-1 43 289	277 51 3
Operating result	37 1 1 8	-2 960	-42 762	-23 447	3 585	-28 464

Q4-2021
	Zaptec Charger AS	Zaptec Sverige AB	Novavolt AG	Other	Adjustment s and	Total
In NOK 1 000					eliminations
Operating income
Revenues from contracts with customers	1 20 884	31 91 3	37 821	2 1 96		0 1 92 81 4
Revenues from internal sales	38 303		0 0	0	-38 303	0
Other operating income	0	0	0	0	27	27
Total Operating income	1 59 1 87	31 91 3	37 821	2 1 96	-38 276	1 92 840
Operating expenses
Cost of inventories	90 458	21 021	1 6 693	-95	-34 430	93 647
Employee benefit expenses	1 7 793	1 21 3	3 978	6 51 6	1 31 0	30 81 0
Depreciation and amortisation expense	1 760	0	8	800	2 002	4 570
Other operating expenses	1 5 858	3 707	1 089	6 552	-4 040	23 1 66
Total operating expenses	1 25 869	25 941	21 768	1 3 773	-35 1 58	1 52 1 93
Operating result	33 31 8	5 972	1 6 053	-1 1 577	-3 1 1 8	40 647

Adjustments and eliminations

Adjustments and eliminations
The Group evaluates segmental performance on the basis of profit or loss from operations calculated based on local financial statements.
from business combinations are not allocated to individual segments as the underlying assets are managed on a group basis.
Adjustments and eliminations for 01 .01 -31 .1 2.22 and Q4 2022 is as follows:
01 .01 - 31 .1 2.2022
	Revenues	Cost of	Employee	Depreciatio	Other
	from	inventories	benefit	n and	operating
	internal		expenses	amortisatio	expenses
In NOK 1 000	sales			n expense
Elimination of internal sales(1 )	-295 451	-220 688			-75 739
Elimination of employee benefits allocated (2)			1 6 782		-24 892
Cost relating to incorporation of subs(3)
IFRS 1 6 adjustments (4)				4 904	-5 057
Gaap adjustment to inventory (5)
Amotization of excess values (6)				4 860
Total	-295 451	-220 688	1 6 782	9 764	-1 05 688
Q4-2022

Cost relating to incorporation of subs(3)
Gaap adjustment to inventory (5)
Q4-2022
	Revenues	Cost of	Employee	Depreciatio	Other
	from	inventories	benefit	n and	operating
	internal		expenses	amortisatio	expenses
In NOK 1 000	sales			n expense
Elimination of internal sales (1 )	-1 39 705	-67 987			-72 692
Elimination of employee benefits allocated (2)			7 670		-1 5 780
Cost relating to incorporation of subs (3)					-963
IFRS 1 6 adjustments (4)				1 355	-1 423
Gaap adjustment to inventory (5)		5 242
				1 290
Amotization of excess values (6)		-62 745	7 670	2 645	-90 859

01 .01 - 31 .1 2.2021
	Revenues	Cost of	Employee	Depreciatio	Other
	from	inventories	benefit	n and	operating
	internal		expenses	amortisatio	expenses
In NOK 1 000	sales			n expense
Elimination of internal sales (1 )	-88 709	-84 001			36
Reversal of internal gains on fixed assets (7)		261
Cost relating to incorporation of subs (3)			2 640		-1 41 7
IFRS 1 6 adjustments (4)				3 204	-3 337
Transaction cost expensed (8)
Amotization of excess values (6)				1 771
Total	-88 709	-83 740	2 640	4 975	-4 71 8
Q4-2021

Transaction cost expensed (8)
Q4-2021
	Revenues	Cost of	Employee	Depreciatio	Other
	from	inventories	benefit	n and	operating
	internal		expenses	amortisatio	expenses
In NOK 1 000	sales			n expense
Elimination of internal sales (1 )	-57 054	-52 448			397
Reversal of internal gains on fixed assets (7)		0		1 95
Cost relating to incorporation of subs (3)			1 31 0		0
IFRS 1 6 adjustments (4)				2 367	-2 466
Transaction cost expensed (8)
Amotization of excess values (6)				435
Total	-57 054	-52 448	1 31 0	2 996	-2 068

(2)As part of the increased activity outside of Norway in 2022, Zaptec Charger AS has provided significant services to other subsidiaries. The amount charged for these services is presented as reduction of cost in the financial statement of Zaptec Charger. The amount is eliminated on consolidation.

(3)Cost included in the cost of subsidiaries in the separate financial statements are expensed on group level.

(4) Lease payment are expense on a linear basis under local gaap. In the IFRS financial statement the leases are accounted for in accordance wit IFRS 1 6, by recognition of are right of use asset and a lease liabilitiy. The expenses are included as amortization of the right of use asset and interest on the lease liability.

(5) 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

(6) Excess value from the acqusition of Novavolt is included on group level.

(7) Gains on internal transaction of fixed asset and the related amortization is eliminated on group level.

(8) Transaction cost from the acqusistion of Novavolt was included in the cost of the investment in the separate financial statement of the parent. In the IFRS statement these cost are expensed.

Note 5 - Revenue

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:

01 .01 - 31 .1 2.2022
Segments
	Zaptec	Zaptec	Novavolt	Other	Total
In NOK 1 000	Charger AS	Sverige AB	AG
Product sales	369 41 9	1 55 71 4	21 0 1 52	1 7 501	752 786
Other	0	0	0	6 1 23	6 1 23
Total operating revenue	369 41 9	1 55 71 4	21 0 1 52	23 624	758 909
By business area - Geographical distribution
Norway	230 321	0	0	6 1 23	236 444
Sweden	1 0 1 63	1 55 71 4	0	0	1 65 877
Switzerland	0	0	21 0 1 52	0	21 0 1 52
Denmark	70 608	0	0	0	70 608
Iceland	1 3 093		0 0	0	1 3 093
Rest of Europe	42 31 1	0	0	1 7 501	59 81 3
Other	2 922		0 0	0	2 922
Total operating revenue	369 41 9	1 55 71 4	21 0 1 52	23 624	758 909
Timing of revenue recognition
Goods transferred at a point in time	369 41 9	1 55 71 4	21 0 1 52	23 624	758 909
Goods and services transferred over time	0	0	0	0	0
Total operating revenue	369 41 9	1 55 71 4	21 0 1 52	23 624	758 909
01 .01 - 31 .1 2.2021
Segments
	Zaptec	Zaptec	Novavolt	Other	Total
In NOK 1 000	Charger AS	Sverige AB	AG
Product sales	344 072	74 047	65 884	2 1 69	486 1 72
Other	0	0	0	2 827	2 827
Total operating revenue	344 072	74 047	65 884	4 996	488 999
By business area - Geographical distribution
Norway	236 067		0 0	3 799	239 866
Sweden	7 1 73	74 047	0	0	81 220
Switzerland	0	0	65 884	0	65 884
Denmark	40 072		0 0	0	40 072
Iceland	1 0 999		0 0	0	1 0 999
Rest of Europe	49 627		0 0	1 1 98	50 825
Other	1 33		0 0	0	1 33
Total operating revenue	344 071	74 047	65 884	4 997	488 999
Timing of revenue recognition
Goods transferred at a point in time Goods and services transferred over time	344 072 0	74 047 0	65 884 0	2 1 69 2 827	486 1 72 2 827

Note 6 - Finance income and expense

Note 6 - Finance income and expense
	Q4 01 .01 2022	- 31 .1 2 2022
Finance income
Interest income	88	94
Gain on investments at fair value	0	2 072
Other finance income	-1 020	4 200
Total finance income	-931	6 366
Finance expense
Interest on debts and borrowings	998	2 1 1 9
Interest from leases	1 35	51 1
Loss on investments at fair value	0	7 087
Unwinding of discount on contingent consideration	0	1 037
Other finance expense	889	5 302
Total finance expense	2 022	1 6 055
Investment in fund
Opening balance	87 480 1	83 500
Sold during the period	-86 685 -1	77 691
Purchased during the period	0	0
Change in fair value	-794	-5 808
31 December	0	0

Note 7 - Tax

Q4 01	.01 - 31 .1 2
2022	2022
	-26 373
	4 638
6 51 0	2 524
0	-8 1 03
0	1 037
1 3 356	1 2 789
-47 900	-1 3 488
	-31 420 -36 346

Note 8 - Intangible assets, Property, plant and equipment and right-of-use assets

	Goodwill	Intangible asset	Property, plant and	Right of use assets	Total
In NOK 1 000			equitpment
1 J anuary 2022	63 061	78 064	5 061	1 5 21 0	1 61 397
- Amortisaton and depreciation	0	-1 2 748	-2 692	-4 904	-20 344
+ Purchases and new leases	0	1 8 752	6 699	5 082	30 533
- Disposals		-1 96
+/- Foreign currency effects	6 577	2 202	-53	322	9 048
31 December 2022	69 638	86 075	9 01 5	1 5 71 0	1 80 438
Note 9 - Other non-current assets
Breakdown of other non-current assets
In NOK 1 000				31 .1 2.2022	31 .1 2.2021
Other				1 25	1 09
Total				1 25	1 09

Note 9 - Other non-current assets

+/- Foreign currency effects	6 577	2 202	-53	322	9 048
Note 9 - Other non-current assets
Breakdown of other non-current assets
In NOK 1 000				31 .1 2.2022	31 .1 2.2021
Other				1 25	1 09
Total				1 25	1 09
Note 1 0 - Inventories
The inventory consists solely of finished goods (acquired goods produced for the group for resale).
The balance has increased by 64,1 MNOK (245% ) when compared to the balance at 31 challenging market situation for components present in late 2021 expected demand.	to mid-2022. In Q3-22 and Q4-22 we are increasing production to meet the	December last year. The main reason for this is due to the

Note 1 1 - Trade receivables Provision for credit losses are 0,7 MNOK at 31 December 2021 and 2,1 MNOK at 31 December 2022. expected demand.

Total current purchase obligations of EV chargers from Westcontrol and Sanmina amounts to 888 MNOK from January 2023 till end of 2023. A significant portion of the committed production may be postponed to 2024 based on quarterly updated forecasts.

Note 1 2 - Other current assets The increase in outstanding at period are due to higher sales in late November and December in the current year, compared to late November and in December last year.

The increase in outstanding at period are due to higher sales in late November and December in the current year, compared to late November and in December last year.
Breakdown of other current assets
In NOK 1 000	31 .1 2.2022	31 .1 2.2021
Loan to finance inventory	35 273	1 0 000
VAT refund	1 7 720	9 981
Other	58 835	8 624
Total	1 1 1 828	28 605
Note 1 3 - Provisions The company have a provision for warranty claims of 2 MNOK at period end.

The company have a provision for warranty claims of 2 MNOK at period end. The remaining long term provisions is related to the long-term incentive program for employees.

Note 1 4 - Loans and borrowings
		01 .01 -31	.1 2
In NOK 1 000	Category	2022	2021
Start of period:
Non-current		0	3 833
Current		0	3 834
Total		0	7 667
Draw down on credit facility	New loans	29 229	1 2 366
Loans	Repayments	-3 833	-2 875
Other changes	Other changes	0	0
Net changes		25 396	9 490
End of period
Non-current		0	958
Current		25 396	1 6 1 99
		25 396	1 7 1 57

End of period
Zaptec has repaid a 3,833 MNOK on loans from financial institutions in line with the repayment terms. In addition, the Group drew down 29,229 MNOK on the existing credit facility.
The Group have increased it's overdraft facility from 50 MNOK to 70 MNOK in Q3-22. The interest rate is 3,9 % The financial covenants are as follows:	of overdraft.
- 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.

The company have complied with all covenants as at, and for the nine months ended 31 December 2022 Note 1 5 - Events after the reporting period Zaptec has repaid a 3,833 MNOK on loans from financial institutions in line with the repayment terms. In addition, the Group drew down 29,229 MNOK on the existing credit facility.

• No sale or transfer of IP-rights from or between any of the group companies without prior approval.

None

End of financial statement

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, 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 we will achieve or accomplish these expectations, beliefs or projections.

Zaptec ASA P.O. Box 8034 4068 Stavanger, Norway www.zaptec.com