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Zaptec AS Interim / Quarterly Report 2024
3796_rns_2024-05-07_1ed68031-a46f-46cf-a461-edee0a46ae80.pdf
Interim / Quarterly Report
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Q1 Report 2024
7th of May 2024
| Update from the CEO | 3 |
|---|---|
| Highlights Q1 2024 | 5 |
| Financial Summary | 6 |
| Market Development | 7 |
| Q1 Stories | 10 |
| Outlook | 14 |
| Financial Statements | 15 |
Update from the CEO
Dear shareholders,
As the clear market leader in the Nordics and the 3rd largest in Europe, we're proud to report robust order intake and revenue growth despite challenging market conditions in our core markets. In Europe, the market development was mixed in the start of 2024 as EV sales declined in our core markets. However, there were several bright spots including Benelux, UK and France, where EV sales grew fast in the first quarter.
I'm happy to report that we delivered significant milestones in the first quarter, including completing Zaptec Pro compliance in both UK and France, where we are now building momentum. Further, we have been highly successful in the Benelux region.
We have substantially reduced Opex in the first quarter, which together with adapting the production levels going forward underscores our ongoing commitment to cost efficiency and inventory management.
To help achieve the EU's climate targets, stricter emission targets apply from 2025 onwards. Combined with upcoming release of several new affordable EV models in the coming quarters, the market growth is expected to be strong going forward.
We are well positioned to capitalize on this growth, with established presence across key European markets. Our upcoming product launches targeted at the mass-market in Europe remain on track.
Looking ahead, our outlook is optimistic for sustained leadership in the Nordics and continued expansion throughout Europe, and we will continue to follow our strategy of delivering quality products in a market with strict safety requirements.
Thank you for your support.
Kurt Østrem CEO
Highlights Q1 2024
- 300 million NOK revenue in Q1, 14% growth
- Order intake of 306 mill NOK
- Order backlog of 452 mill NOK
- Gross margin of 38%
- Opex of 115 mill NOK
- EBITDA of -2 mill NOK
Key financial figures
| MNOK/% | Q1-24 | Q1-23 |
|---|---|---|
| Revenues | 300 | 265 |
| Export Share | 79% | 56% |
| Gross margin | 38% | 40% |
| Opex | 115 | 108 |
| EBITDA | -2 | -2 |
| EBITDA Margin (%) | -1% | -1% |
| Available liquidity | 2721 | 316 |
1 Including cash, deposits, funds and available overdraft facility
Quarterly revenue and order intake (MNOK)
Financial summary
Revenue
First quarter revenue of 300 MNOK, which is an increase of 14% compared to the same period last year.
Registered purchase orders in the first quarter was 306 MNOK and the positive long-term trend continues. However, compared to Q1 2023 order intake is down 48% due to the sudden change in competition in the beginning of 2023, in addition to a slow start of 2024 with EV registrations down 7% in Zaptec's core markets.
At the end of the first quarter the backlog of orders was 452 MNOK with scheduled deliveries throughout 2024.
The export share was 79% in the first quarter compared to 56% in the same period last year.
Gross margin
Achieved gross margin in total the first quarter was 38%, compared to 40% same period last year. Margins from charger sales is maintained above 40% and the decrease is mainly related to higher share of COGS as legacy base of charges connected to 4G has increased year-on-year.
OPEX
Total employee benefit expenses and other operating expenses in the first quarter was 115 MNOK compared to 108 MNOK in same period last year.
Personnel expenses in the first quarter was 64 MNOK, which is an increase of 14% compared to same period last year. At the end of March 2024 Zaptec had 193 employees, compared to 159 employees at end of March 2023.
Other operating expenses in the first quarter was 51 MNOK, a decrease of 1% compared to same period last year of 52 MNOK.
EBITDA
EBITDA in the first quarter was negative 2 MNOK compared to negative 2 MNOK in the first quarter last year.
Available Liquidity
The cash balance with total cash, available overdraft facility, deposits and other funds per end of March 2024 was 272 MNOK.
Inventory
Following extraordinary order intake in 1H 2023 and production orders for rampup of production in 2H 2023, the market slowed down with some deliveries pushed out in time during 2H 2023, leading to an above normal inventory level. The production level has been reduced in 2024 to facilitate the path for inventory normalisation.
Challenging electric vehicle sales in core markets, continued growth in Europe
Sales figures for electric vehicles in Zaptec's core markets had a challenging start of 2024, while the increase overall in EU continued. Certain countries showed strong growth in plug-in vehicles.
Plug-in vehicle sales in Q1 2024 vs Q1 2023
- In Norway, plug-in vehicles continue to dominate sales statistics with 92% of new vehicles coming with a plug, however overall, the plug-in vehicles sold declined 20% compared to Q1 2023
- The Swedish market also recorded a decline, with 9% fewer plug-in vehicles sold in Q1 2024 compared to Q1 2023.
- Swiss plug-in vehicle sales grew with a modest 2%, while in Denmark 7% more plug-in vehicles were sold compared to Q1 2023.
- In EU in total, plug-in vehicle sales grew 5%.
- Some markets recorded significant growth, notably Benelux up 25%, while both UK and France saw a 17% increase compared to Q1 2023.
- In Germany, plug-in vehicle sales declined 5%.
Core markets electric vehicle sales declined in the first quarter
Core markets plug-in vehicle sales declined in Q1
- For the core markets combined, number of plug-in vehicles sold declined 7% from 92 484 in the first quarter last year to 85 835.
- In Norway, adoption of plug-in vehicles continued, with plug-in share increasing from 90,4% in the fourth quarter last year to 92,2% in the first quarter 2024. However, vehicle sales declined overall, and plug-in vehicle sales came in 20% lower than in the first quarter last year.
- In Sweden, the plug-in share declined from 56% to 55%, and the plug-in sales declined 9% compared to the first quarter last year.
- In Denmark, the plug-in share increased from 40% to 46%, and the plug-in sales increased 7% compared to the first quarter last year.
- In Switzerland, the plug-in share increased from 26% to 28%, and the plug-in sales increased 2% compared to the first quarter last year.
Plug-in vehicle sales increased in EU in the first quarter
• In the first quarter, the number of new vehicle registrations in EU with electric engine increased by 4% to 332 999 compared to 320 987 in the first quarter of 2023
Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23
- Plug-in hybrid vehicles sales increased 8% from 189 350 in the first quarter of 2023 to 204 001 in the first quarter of 2024
- For battery electric vehicles (BEV) and plug-in hybrid vehicles (PHEV) combined this is equivalent to an increase of 5% compared to the first quarter of 2023.
- Zaptec expects the trend of increased plug-in vehicle sales in general to continue. European plug-in vehicle sales forecasted to grow 20% in 2024 and 45% in 2025, according to Bloomberg.
Q1'24
A snapshot of Q1 2024
Looking in the rearview mirror is essential to evaluate our subgoals within the organisation. Despite operating in a challenging environment within the EV industry, driven by macroeconomic trends in Europe, we acknowledge that our first quarter has yielded several positive signals for further growth. We are now the clear market leader in the Nordics and 3rd largest AC charging provider in Europe. Our long-term perspective, strategic actions, and patience are vital as we invest in Zaptec's future.
We commenced the year by launching our sales operations in France, a significant milestone in our global growth strategy. Across the Channel, our presence in the UK surged as we ramped up efforts in the British market. Meanwhile, our products garnered praise from esteemed reviewers, reinforcing our position as leaders in the industry.
During all this, we also unveiled a sleek new website, symbolising our dedication to innovation and enhancing user experience. In addition, Zaptec started embracing company change by adopting SAFe (Scaled Agile Framework), reshaping our organisational structure for increased agility and responsiveness.
Several new products and features launched
During the first quarter, several projects were finalized.
We launched the Zaptec Pro with the up-to-date security regulations for the UK, and a bespoke French version of Zaptec Pro in the first quarter. Sales and deliveries in both countries have been initiated.
In addition, we delivered Open Charge Point Protocol (OCPP) native for the Zaptec Go. This feature will enable larger partners to run the Zaptec Go directly without an OCPP connection to Zaptec's cloud solution. This is a requirement for some partners and will open more potential sales in the future.
A genuine shift with Scaled Agile Framework (SAFe)
In Q1, Zaptec initiated and started a transformative process by adopting the SAFe methodology, signifying a genuine commitment to organisational advancement. Leveraging insights from successful implementations across industries, this strategic shift promises high returns tailored to our unique needs. While specific timelines for measurable outcomes may vary, our proactive investment in personnel underscores our dedication to fostering an agile and responsive operational framework. This proactive approach demonstrates our recognition of the imperative for change, positioning Zaptec at the forefront of innovation within the electric vehicle charging industry.
As Zaptec has expanded its workforce over the past two years, we have realised the necessity of organisational change to enhance our ability to deliver results in the future. It has previously been communicated that 2024 will be a year of pivotal change and establishment for Zaptec, and this is where SAFe assumes a crucial role.
We are aware that successful industries, such as Porsche and FedEx, utilise the same framework, as it is globally recognised as the most trusted system for business agility. To truly commit and succeed in achieving our goals in the European market, we understand the importance of bringing our employees closer and working smarter. SAFe is our strategic approach to managing digital disruption and preparing for long-term success.
Long-term and essential investments
While none of the previously mentioned actions yield immediate returns, we recognise their significance in the long term. Additionally, from a market perspective, we are witnessing the forthcoming release of numerous new electric vehicle models aimed at the masses. In light of this, we reiterate our commitment to long-term vision, patience, and understanding that investing in the future is essential. We are willing to endure this, knowing it's for the company's and its people's greater good.
Clear strategic roadmap for growth in Europe and value creation
Zaptec is positioned as clear market leader in the Nordics and 3rd in Europe in terms of AC charging providers. Our ambition is to replicate the success in the Nordics across Europe.
We are now finalizing product-market fit for the major European markets and have established presence either through offices or distribution partners in the majority of Europe. We strongly believe our safe, high-quality products with compact design at the right price point will become a winner across Europe.
The projected growth in EV sales in Europe from 2025 onwards is expected to be driven by stricter CO2 emission regulations and many new affordable electric vehicle models coming in the market. Mass-market adoption of EVs will subsequently lead to high demand for AC charging stations.
To facilitate the EV transition, significant upgrade in the strained power grids is required. Zaptec's smart charging solutions including patented phase balancing technology allows for major cost savings as less grid upgrade is required since the Zaptec technology enables better utilization of available power.
The overall outlook for sustained market dominance in the core markets and continued expansion in new European markets, combined with strong gross margins and continued cost focus paves way for future value creation.
Annual AC charging stations sales in Europe projected to 4x by 2030
Financial Statements
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Unaudited
| First quarter | Full year | |||
|---|---|---|---|---|
| In NOK 1000 | Note | 2024 | 2023 | 2023 |
| Operating income | ||||
| Revenues from contracts with customers | 4,5 | 300 466 | 264 651 | 1 402 408 |
| Other operating income | 0 | 0 | 24 182 | |
| Total operating income | 300 466 | 264 651 | 1 426 590 | |
| Operating expenses | ||||
| Cost of inventories | 4 | 187 314 | 158 515 | 891 290 |
| Employee benefit expenses | 3 | 64 077 | 56 103 | 247 962 |
| Depreciation and amortisation expense | 4,8 | 7 654 | 5 722 | 29 918 |
| Other operating expenses | 4 | 50 991 | 51 682 | 244 213 |
| Total operating expenses | 310 036 | 272 023 | 1 413 383 | |
| Operating profit/loss | -9 570 | -7 372 | 13 207 | |
| Financial income and expenses | ||||
| Finance income | 6 | 1 956 | 10 707 | 13 897 |
| Finance expense | 6 | 4 445 | 3 513 | 3 115 |
| Net financial income (+) and expenses (-) | -2 489 | 7 194 | 10 782 | |
| Profit (+)/loss (-) before tax | -12 059 | -178 | 23 990 | |
| Tax expense (+)/benefit (-) | 7 | -2 782 | 5 165 | 1 761 |
| Profit (+)/loss (-) after tax | -9 277 | -5 343 | 22 228 | |
| Total profit/loss attributable to: | ||||
| Owners of the parent | -9 277 | -5 343 | 22 228 | |
| Non-controlling interest | 0 | 0 | 0 | |
| Basic earnings per shares | -0,11 | -0,07 | 0,26 | |
| Diluted earnings per shares | -0,11 | -0,07 | 0,26 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| First quarter | Full year | ||||
|---|---|---|---|---|---|
| In NOK 1000 | Note | 2024 | 2023 | 2023 | |
| Profit (+)/loss (-) for the period | -9 277 | -5 343 | 22 228 | ||
| Items that will or may be reclassified to profit or loss: Exchange gains arising on translation of foreign operations |
-755 | 6 143 | 19 147 | ||
| Total comprehensive income | -10 032 | 800 | 41 375 | ||
| Total comprehensive income attributable to: | |||||
| Owners of the parent | -10 032 | 800 | 41 375 | ||
| Non-controlling interest | 0 | 0 | 0 | ||
| 17 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| In NOK 1000 | Note | 31.03.2024 | 31.03.2023 | 31.12.2023 |
|---|---|---|---|---|
| ASSETS | ||||
| Goodwill and intangible assets | ||||
| Goodwill | 8 | 77 663 | 72 194 | 79 171 |
| Other intangible assets | 8 | 84 201 | 84 290 | 80 320 |
| Deferred tax asset | ||||
| Deferred tax asset | 7 | 36 402 | 17 179 | 29 898 |
| Tangible assets | ||||
| Property, plant and equipment | 8 | 17 231 | 9 042 | 15 118 |
| Right-of-use assets | 8 | 50 258 | 14 612 | 52 741 |
| Other non-current assets | 12 | 5 206 | 5 445 | 5 189 |
| Total non-current assets | 270 961 | 202 761 | 262 437 | |
| Inventories | ||||
| Inventories | 9 | 573 763 | 166 607 | 447 348 |
| Receivables | ||||
| Trade receivables | 10 | 190 991 | 196 457 | 186 045 |
| Other current assets | ||||
| Other current assets | 11 | 101 444 | 104 577 | 122 081 |
| Cash and cash equivalents | ||||
| Cash and cash equivalents | 151 009 | 246 317 | 141 643 | |
| Total current assets | 1 017 206 | 713 958 | 897 117 | |
| TOTAL ASSETS | 1 288 167 | 916 720 | 1 159 554 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| In NOK 1000 | Note | 31.03.2024 | 31.03.2023 | 31.12.2023 |
|---|---|---|---|---|
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Share capital | 1 313 | 1 313 | 1 313 | |
| Treasury shares | -3 | 0 | -3 | |
| Share premium | 646 945 | 646 945 | 646 945 | |
| Not registered capital increase | 0 | 0 | 0 | |
| Other paid in equity | 17 972 | 10 814 | 14 982 | |
| Foreign exchange reserve | 27 906 | 11 798 | 28 960 | |
| Other reserves | -36 352 | -48 607 | -27 373 | |
| Total equity | 657 781 | 622 262 | 664 823 | |
| Non-current liabilities | ||||
| Deferred tax | 7 | 11 628 | 9 195 | 7 127 |
| Long-term lease liabilities | 8 | 42 321 | 9 298 | 43 762 |
| Long-term deferred income | 5 | 58 056 | 30 229 | 53 908 |
| Long-term provisions | 13 | 20 020 | 6 524 | 21 234 |
| Total non-current liabilities | 132 025 | 55 245 | 126 031 | |
| Current liabilities | ||||
| Trade payables | 209 838 | 151 865 | 244 604 | |
| Short-term loans and borrowings | 14 | 179 209 | 0 | 0 |
| Short-term lease liabilities | 8 | 9 206 | 5 572 | 9 064 |
| Short-term deferred income | 5 | 21 399 | 10 996 | 19 818 |
| Tax payable | 7 | 7 195 | 25 604 | 20 984 |
| Other current liabilities | 71 513 | 45 175 | 74 228 | |
| Total current liabilities | 498 361 | 239 213 | 368 698 | |
| Total liabilities | 630 386 | 294 458 | 494 730 | |
| TOTAL EQUITY AND LIABILITIES | 1 288 167 | 916 720 | 1 159 554 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| First quarter | ||||
|---|---|---|---|---|
| In NOK 1000 | Note | 2024 | 2023 | Full year 2023 |
| CASH FLOW FROM OPERATING ACTIVITIES | ||||
| Profit (+)/loss (-) before tax | -12 059 | -178 | 23 990 | |
| Taxes paid | -20 984 | -11 107 | -11 107 | |
| Depreciation and amortisation expense | 8 | 7 654 | 5 722 | 29 918 |
| Shared based payment expense | 3 | 2 990 | 3 959 | 8 127 |
| Finance income | 6 | 1 956 | 10 706 | 13 897 |
| Finance expense | 6 | -3 801 | -3 382 | -2 412 |
| Interest received | 6 | 0 | 0 | 0 |
| Increase in trade receivables | 10 | -4 946 | -80 120 | -69 708 |
| Increase in inventories | 9 | -126 415 | -75 819 | -356 560 |
| Increase in trade payables | -34 766 | 5 808 | 98 547 | |
| Change in other accrual items | 33 821 | 42 219 | 45 646 | |
| NET CASH FLOW FROM OPERATING ACTIVITIES | -156 548 | -102 191 | -219 662 | |
| CASH FLOW FROM INVESTMENT ACTIVITIES | ||||
| Purchases of property, plant and equipment | 8 | -11 304 | -1 753 | -78 377 |
| Proceeds from sale of PP&E | 8 | 0 | 0 | 7 570 |
| Proceeds from sale of investments (funds) | 0 | 0 | 0 | |
| Advances/loans to suppliers | 11 | -49 | -10 096 | 35 849 |
| Investments in other entities | 0 | 0 | 0 | |
| Cash flow from other investments | 0 | 0 | 0 | |
| NET CASH FLOW FROM INVESTMENT ACTIVITIES | -11 353 | -11 849 | -34 958 | |
| CASH FLOW FROM FINANCING ACTIVITIES | ||||
| Repayment of loans and borrowings | 14 | 0 | -29 229 | -29 229 |
| Draw down on credit facility | 14 | 179 209 | 0 | 0 |
| Lease liabilities | 8 | -1 299 | -1 072 | 37 587 |
| Interest on lease liabilities | 8 | -644 | -131 | -703 |
| Interest on debts and borrowings | 0 | 0 | 0 | |
| Settlement of option agreement | 3 | 0 | 0 | 0 |
| Purchase of treasury shares | 0 | 0 | -2 180 | |
| Sale of treasury shares | 0 | 0 | 0 | |
| Issue of share capital | 0 | 0 | 0 | |
| Proceeds from equity | 0 | 287 927 | 287 927 | |
| NET CASH FLOW FROM FINANCING ACTIVITIES | 177 266 | 257 495 | 293 402 | |
| Net change in cash and cash equivalents | 9 365 | 143 455 | 38 781 | |
| Cash and cash equivalents at start of period | 141 643 | 102 862 | 102 862 | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 151 009 | 246 317 | 141 642 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited
| 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 2023 | 1 146 | 0 | 359 185 | 0 | 6 855 | 10 480 | -52 849 | 324 816 | 0 | 324 816 |
| Profit (+)/loss (-) after tax | 0 | 0 | 0 | 0 | 0 | 0 | 22 228 | 22 228 | 0 | 22 228 |
| Other comprehensive Income | 0 | 0 | 0 | 0 | 0 | 18 479 | 668 | 19 147 | 0 | 19 147 |
| Purchase of treasury shares | 0 | -3 | 0 | 0 | 0 | 0 | -2 180 | -2 183 | 0 | -2 183 |
| Sale of treasury shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital increase | 166 | 0 | 287 761 | 0 | 0 | 0 | 0 | 287 927 | 0 | 287 927 |
| Settlement of share based payment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share based payments | 0 | 0 | 0 | 0 | 8 127 | 0 | 0 | 8 127 | 0 | 8 127 |
| Differences from earlier periods* | 0 | 0 | 0 | 0 | 0 | 0 | 4 760 | 4 760 | 0 | 4 760 |
| 31 December 2023 | 1 313 | -3 | 646 945 | 0 | 14 982 | 28 960 | -27 373 | 664 823 | 0 | 664 823 |
| 1 January 2024 | 1 313 | -3 | 646 945 | 0 | 14 982 | 28 960 | -27 373 | 664 823 | 0 | 664 823 |
| Profit (+)/loss (-) after tax | 0 | 0 | 0 | 0 | 0 | 0 | -9 277 | -9 277 | 0 | -9 277 |
| Other comprehensive Income | 0 | 0 | 0 | 0 | 0 | -1 054 | 299 | -755 | 0 | -755 |
| Purchase of treasury shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of company in the same group | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital increase | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share based payments | 0 | 0 | 0 | 0 | 2 990 | 0 | 0 | 2 990 | 0 | 2 990 |
| 31 March 2024 | 1 313 | -3 | 646 945 | 0 | 17 972 | 27 906 | -36 352 | 657 781 | 0 | 657 781 |
* Relates to shared services booked in Zaptec Charger AS and not in Zaptec Deutchland GmbH at 31 December 2022. of ingoing balance.
NOTES
Note 1 - Basis of preparation
These interim condensed 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 7 May 2024. 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 2023 IFRS financial statement issued by the company on the 20 of March 2024.
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 2023 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 allocation 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 31.03.2024 a total of 552 384 rights to receive shares has been granted.
The program is accounted for as an 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 31.03.2024 The Group had employee stock options agreements with 3 employees, CEO Kurt Østrem, CTO Knut Braut and former employee 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 31.03.2024 remaining stock options is 450 000 shares. All of these stock options can be excercised as of 31.03.2024.
One board member, Stig H. Christiansen (Chairman) holds stock options as of 31.03.2024. 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 amounts per Q1 2024, Q1 2023 and full year 2023.
| 01.01-31.03 | Full year | ||
|---|---|---|---|
| In NOK 1000 | 2024 | 2023 | 2023 |
| Option program | 0 | 0 | 0 |
| Share-based incentive program for all employees | 1 178 | 835 | 4 711 |
| Cash portion Share-based incentive program for all employees | 0 | 0 | 0 |
| Share-based incentive program for management | 1 812 | 3 124 | 3 415 |
| Provision for social security contribution* | -142 | 784 | 1 353 |
| Total operating income | 2 848 | 4 742 | 9 480 |
* 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 sales or purchases of treasury shares are related to options and/or the share-based incentive programs.
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.
Zaptec Schweiz AG
This segment is involved in the sale and distribution of Zaptec products in Switzerland.
Zaptec Danmark ApS
This segment is involved in the sale and distribution of Zaptec products in Denmark.
Other
Consist of all other legal entities in the group.
| Year-to-date 31.03.2024 |
|||||||
|---|---|---|---|---|---|---|---|
| In NOK 1000 | Zaptec Charger AS |
Zaptec Sverige AB |
Zaptec Schweiz AG |
Zaptec Danmark ApS |
Other Adjustments and eliminations |
Total | |
| Operating income | |||||||
| Revenues from contracts with customers | 79 166 | 73 125 | 74 525 | 40 760 | 38 619 | -5 729 | 300 466 |
| Revenues from internal sales | 136 050 | 0 | 0 | 0 | 437 | -136 488 | 0 |
| Revenues from shared services | 6 852 | 2 395 | 0 | 502 | 2 423 | -12 171 | 0 |
| Other operating income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 222 068 | 75 520 | 74 525 | 41 262 | 41 479 | -154 388 | 300 466 |
| Operating expenses | |||||||
| Cost of inventories | 174 652 | 52 070 | 35 991 | 30 264 | 28 280 | -133 943 | 187 314 |
| Employee benefit expenses | 44 656 | 5 632 | 9 407 | 3 216 | 10 775 | -9 608 | 64 077 |
| Depreciation and amortisation expense | 3 169 | 15 | 0 | 0 | 174 | 4 296 | 7 654 |
| Other operating expenses | 31 813 | 10 219 | 11 577 | 3 626 | 11 735 | -17 980 | 50 991 |
| Total operating expenses | 254 289 | 67 936 | 56 975 | 37 106 | 50 964 | -157 235 | 310 036 |
| Operating result | -32 222 | 7 583 | 17 550 | 4 156 | -9 485 | 2 847 | -9 570 |
| Year-to-date 31.03.2023 |
|||||||
| In NOK 1000 | Zaptec Charger AS |
Zaptec Sverige AB |
Zaptec Schweiz AG |
Zaptec Danmark ApS |
Other* Adjustments and eliminations |
Total | |
| Operating income | |||||||
| Revenues from contracts with customers | 127 072 | 43 905 | 69 482 | 0 | 30 454 | -6 261 | 264 651 |
| Revenues from internal sales | 86 464 | 0 | 0 | 0 | 0 | -86 464 | 0 |
| Revenues from shared services | 8 095 | 1 583 | 275 | 0 | 0 | -9 953 | 0 |
| Other operating income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 221 631 | 45 488 | 69 757 | 0 | 30 454 | -102 678 | 264 651 |
| Operating expenses | |||||||
| Cost of inventories | 175 766 | 30 213 | 30 098 | 0 | 17 047 | -94 609 | 158 515 |
| Employee benefit expenses | 32 282 | 4 024 | 6 471 | 0 | 10 172 | 3 154 | 56 103 |
| Depreciation and amortisation expense | 2 574 | 0 | 0 | 0 | 389 | 2 760 | 5 722 |
| Other operating expenses | 32 660 | 6 391 | 5 203 | 0 | 14 208 | -6 780 | 51 682 |
| Total operating expenses | 243 282 | 40 628 | 41 771 | 0 | 41 816 | -95 475 | 272 023 |
| Operating result | -21 651 | 4 860 | 27 986 | 0 | -11 363 | -7 204 | -7 372 |
| Full year | 2023 | ||||||
|---|---|---|---|---|---|---|---|
| In NOK 1000 | Zaptec | Zaptec | Zaptec | Zaptec | Other* Adjustments | Total | |
| Charger | Sverige | Schweiz AG | Danmark | and | |||
| AS | AB | ApS | eliminations | ||||
| Operating income | |||||||
| Revenues from contracts with customers | 538 534 | 398 972 | 278 868 | 138 913 | 87 260 | -40 139 | 1 402 408 |
| Revenues from internal sales | 590 483 | 0 | 0 | 0 | 1 750 | -592 233 | 0 |
| Revenues from shared services | 52 647 | 7 512 | 1 070 | 1 796 | 22 556 | -85 580 | 0 |
| Other operating income | 0 | 0 | 0 | 0 | 24 182 | 0 | 24 182 |
| Total operating income | 1 181 664 | 406 485 | 279 937 | 135 748 | -717 952 | 1 426 590 | |
| Operating expenses | |||||||
| Cost of inventories | 882 282 | 298 111 | 133 995 | 100 276 | 54 740 | -578 113 | 891 290 |
| Employee benefit expenses | 146 897 | 17 179 | 30 180 | 9 964 | 38 048 | 5 695 | 247 962 |
| Depreciation and amortisation expense | 13 102 | 39 | 0 | 0 | 1 779 | 14 999 | 29 918 |
| Other operating expenses | 146 885 | 60 709 | 94 023 | 23 466 | 28 837 | -109 707 | 244 213 |
| Total operating expenses | 1 189 166 | 376 036 | 258 198 | 133 706 | 123 404 | -667 127 | 1 413 383 |
| Operating result | -7 502 | 30 448 | 21 739 | -133 706 | 12 344 | -50 826 | 13 207 |
* includes Zaptec Danmark ApS in 2022
Adjustments and eliminations
25
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 | 31.03.2024 | |||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Revenues | Cost of | Employee | Depreciation | Other | |
| from | inventories | benefit | and | operating | ||
| internal | expenses | expenses | ||||
| sales | expense | |||||
| Elimination of internal sales(1) | -136 488 | -135 619 | 0 | 0 | 0 | |
| Elimination of shared services (2) | -12 171 | 0 | -4 747 | 0 | -16 846 | |
| IFRS 16 adjustments (3) | 0 | 0 | 0 | 2 626 | -2 869 | |
| GAAP-adjustment to inventory (4) | 0 | 1 899 | 0 | 0 | 0 | |
| Amortization of excess values (5) | 0 | 0 | 0 | 1 670 | 0 | |
| Gains on internal transactions (6) | 0 | 1 097 | 0 | 0 | 0 | |
| Share-based incentive program (7) | 0 | 0 | 2 848 | 0 | 0 | |
| Provision for warranty claims (8) | 0 | 0 | 0 | 0 | 0 | |
| Other (9) | 0 | -1 319 | -7 709 | 0 | 1 736 | |
| IFRS 15 adjustments (10) | -5 729 | 0 | 0 | 0 | 0 | |
| Total | -154 388 | -133 943 | -9 608 | 4 296 | -17 980 |
| Year-to-date | 31.03.2023 | |||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Revenues | Cost of | Employee | Depreciation | Other | |
| from | inventories | benefit | and | operating | ||
| internal | expenses | amortisation | expenses | |||
| sales | expense | |||||
| Elimination of internal sales(1) | -86 464 | -89 815 | 0 | 0 | -145 | |
| Elimination of shared services (2) | -9 953 | 0 | -1 589 | 0 | -8 272 | |
| IFRS 16 adjustments (3) | 0 | 0 | 0 | 1 405 | -1 490 | |
| GAAP-adjustment to inventory (4) | 0 | -10 609 | 0 | 0 | 0 | |
| Amortization of excess values (5) | 0 | 0 | 0 | 1 355 | 0 | |
| Gains on internal transactions (6) | 0 | 5 816 | 0 | 0 | 0 | |
| Share-based incentive program (7) | 0 | 0 | 4 742 | 0 | 0 | |
| Provision for warranty claims (8) | 0 | 0 | 0 | 0 | 3 128 | |
| Other (9) | 0 | 0 | 0 | 0 | 0 | |
| IFRS 15 adjustments (10) | -6 261 | 0 | 0 | 0 | 0 | |
| Total | -102 678 | -94 609 | 3 154 | 2 760 | -6 780 | |
| Full year | 2023 | ||||
|---|---|---|---|---|---|
| In NOK 1000 | Revenues | Cost of | Employee | Depreciation | Other |
| from | inventories | benefit | and | operating | |
| internal | expenses amortisation |
expenses | |||
| sales | expense | ||||
| Elimination of internal sales(1) | -592 233 | -584 086 | 0 | 0 | -1 750 |
| Elimination of shared services (2) | -85 580 | 0 | -11 494 | 0 | -108 535 |
| IFRS 16 adjustments (3) | 0 | 0 | 0 | 9 165 | -9 770 |
| GAAP-adjustment to inventory (4) | 0 | -5 825 | 0 | 0 | 0 |
| Amortization of excess values (5) | 0 | 0 | 0 | 5 834 | 0 |
| Gains on internal transactions (6) | 0 | 13 176 | 0 | 0 | 0 |
| Share-based incentive program (7) | 0 | 0 | 9 480 | 0 | 0 |
| Provision for warranty claims (8) | 0 | 0 | 0 | 0 | 0 |
| Other (9) | -1 377 | -1 378 | 7 709 | 0 | 10 348 |
| IFRS 15 adjustments (10) | -38 762 | 0 | 0 | 0 | 0 |
| Total | -717 952 | -578 113 | 5 695 | 14 999 | -109 707 |
| Quarter | 31.03.2024 | |||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Revenues | Cost of | Employee | Depreciation | Other | |
| from | inventories | benefit | and | operating | ||
| internal | expenses | amortisation | expenses | |||
| expense | ||||||
| Elimination of internal sales(1) | sales -136 488 |
-135 619 | 0 | 0 | 0 | |
| Elimination of shared services (2) | -12 171 | 0 | -4 747 | 0 | -16 846 | |
| IFRS 16 adjustments (3) | 0 | 0 | 0 | 2 626 | -2 869 | |
| GAAP-adjustment to inventory (4) | 0 | 1 899 | 0 | 0 | 0 | |
| Amortization of excess values (5) | 0 | 0 | 0 | 1 670 | 0 | |
| Gains on internal transactions (6) | 0 | 1 097 | 0 | 0 | 0 | |
| Share-based incentive program (7) | 0 | 0 | 2 848 | 0 | 0 | |
| Provision for warranty claims (8) | 0 | 0 | 0 | 0 | 0 | |
| Other (9) | 0 | -1 319 | -7 709 | 0 | 1 736 | |
| IFRS 15 adjustments (10) | -5 729 | 0 | 0 | 0 | 0 | |
| Total | -154 388 | -133 943 | -9 608 | 4 296 | -17 980 |
| 31.03.2023 | |||||
|---|---|---|---|---|---|
| Revenues | Cost of | Depreciation | Other | ||
| from | inventories | and | operating | ||
| internal | expenses | amortisation | expenses | ||
| -86 464 | -89 815 | 0 | 0 | -145 | |
| -9 953 | 0 | -1 589 | 0 | -8 272 | |
| 0 | 0 | 0 | 1 405 | -1 490 | |
| 0 | -10 609 | 0 | 0 | 0 | |
| 0 | 0 | 0 | 1 355 | 0 | |
| 0 | 5 816 | 0 | 0 | 0 | |
| 0 | 0 | 4 742 | 0 | 0 | |
| 0 | 0 | 0 | 0 | 3 128 | |
| 0 | 0 | 0 | 0 | 0 | |
| -6 261 | 0 | 0 | 0 | 0 | |
| -102 678 | -94 609 | 3 154 | 2 760 | -6 780 | |
| Elimination of employee benefits allocated (2) GAAP-adjustment to inventory (4) Amortization of excess values (5) Gains on internal transactions (6) Share-based incentive program (7) |
sales | Employee benefit expense |
(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) Zaptec Schweiz AG 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 Zaptec Schweiz AG 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
- (10) IFRS 15 adjustments, ref. note 5
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 | 31.03.2024 | ||||||
|---|---|---|---|---|---|---|---|
| Segments | |||||||
| In NOK 1000 | Zaptec | Zaptec | Zaptec | Zaptec | Other | Total | |
| Charger | Sverige AB | Schweiz AG | Danmark | ||||
| AS | ApS | ||||||
| Product sales | 79 166 | 73 125 | 74 525 | 40 760 | 32 890 | 300 466 | |
| Other | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total operating income | 79 166 | 73 125 | 74 525 | 40 760 | 32 890 | 300 466 | |
| By business area - Geographical distribution | |||||||
| Norway | 68 600 | 0 | 0 | 0 | -5 729 | 62 871 | |
| Sweden | 1 588 | 73 125 | 0 | 0 | 0 | 74 713 | |
| Switzerland | 0 | 0 | 74 525 | 0 | 0 | 74 525 | |
| Denmark | 0 | 0 | 0 | 40 760 | 0 | 40 760 | |
| Iceland | 1 776 | 0 | 0 | 0 | 0 | 1 776 | |
| Finland | 3 745 | 0 | 0 | 0 | 0 | 3 745 | |
| Belgium | 0 | 0 | 0 | 0 | 233 | 233 | |
| Poland | 312 | 0 | 0 | 0 | 0 | 312 | |
| Netherlands | 0 | 0 | 0 | 0 | 25 858 | 25 858 | |
| Ireland | 2 184 | 0 | 0 | 0 | 0 | 2 184 | |
| Deutschland | 0 | 0 | 0 | 0 | 1 301 | 1 301 | |
| UK | 62 | 0 | 0 | 0 | 8 846 | 8 908 | |
| Portugal | 402 | 0 | 0 | 0 | 0 | 402 | |
| Rest of Europe | 328 | 0 | 0 | 0 | 2 381 | 2 709 | |
| Other | 170 | 0 | 0 | 0 | 0 | 170 | |
| Total operating income | 79 166 | 73 125 | 74 525 | 40 760 | 32 890 | 300 466 | |
| Timing of revenue recognition | |||||||
| Goods transferred at a point in time | 73 437 | 73 125 | 74 525 | 40 760 | 32 890 | 294 737 | |
| Goods and services transferred over time | 5 729 | 0 | 0 | 0 | 0 | 5 729 | |
| Total operating income | 79 166 | 73 125 | 74 525 | 40 760 | 32 890 | 300 466 |
| Segments | ||||||
|---|---|---|---|---|---|---|
| In NOK 1000 | Zaptec Charger |
Zaptec Sverige AB |
Zaptec Schweiz AG |
Zaptec Danmark |
Other* | Total |
| AS | ApS | |||||
| Product sales | 127 072 | 43 905 | 69 482 | 0 | 24 193 | 264 651 |
| Other | 0 | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 127 072 | 43 905 | 69 482 | 0 | 24 193 | 264 651 |
| By business area - Geographical distribution | ||||||
| Norway | 117 567 | 0 | 0 | 0 | -3 894 | 113 673 |
| Sweden | 159 | 43 905 | 0 | 0 | 0 | 44 064 |
| Switzerland | 0 | 0 | 69 482 | 0 | 0 | 69 482 |
| Denmark | 2 194 | 0 | 0 | 0 | 20 154 | 22 348 |
| Iceland | 2 740 | 0 | 0 | 0 | 0 | 2 740 |
| Finland | 0 | 0 | 0 | 0 | 0 | 0 |
| Belgium | 0 | 0 | 0 | 0 | 0 | 0 |
| Poland | 0 | 0 | 0 | 0 | 0 | 0 |
| Netherlands | 0 | 0 | 0 | 0 | 0 | 0 |
| Ireland | 0 | 0 | 0 | 0 | 0 | 0 |
| Deutschland | 0 | 0 | 0 | 0 | 0 | 0 |
| UK | 0 | 0 | 0 | 0 | 0 | 0 |
| Portugal | 0 | 0 | 0 | 0 | 0 | 0 |
| Rest of Europe | 4 411 | 0 | 0 | 0 | 7 933 | 12 344 |
| Other | 0 | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 127 072 | 43 905 | 69 482 | 24 192 | 264 651 | |
| Timing of revenue recognition | ||||||
| Goods transferred at a point in time | 120 811 | 43 905 | 69 482 | 0 | 24 193 | 258 390 |
| Goods and services transferred over time | 6 261 | 0 | 0 | 0 | 0 | 6 261 |
| Total operating income | 127 072 | 43 905 | 69 482 | 0 | 24 193 | 264 651 |
| Full year 2023 |
||||||
| Segments | Zaptec | |||||
| In NOK 1000 | Zaptec | |||||
| Zaptec Charger |
Sverige AB | Schweiz AG | Zaptec Danmark |
Other | Total | |
| AS | ApS | |||||
| Product sales | 538 534 | 398 972 | 278 868 | 138 913 | 47 121 | 1 402 408 |
| Other Total operating income |
0 538 534 |
0 398 972 |
0 278 868 |
0 138 913 |
0 47 121 |
0 1 402 408 |
| By business area - Geographical distribution | ||||||
| Norway | 471 800 | 0 | 0 | 0 | -33 170 | 438 630 |
| Sweden | 23 593 | 398 972 | 0 | 0 | 0 | 422 566 |
| Switzerland | 0 | 0 | 278 868 | 0 | 0 | 278 868 |
| Denmark | 2 809 | 0 | 0 | 138 913 | 0 | 141 722 |
| Iceland | 9 331 | 0 | 0 | 0 | 0 | 9 331 |
| Finland | 17 343 | 0 | 0 | 0 | 0 | 17 343 |
| Belgium | 975 | 0 | 0 | 0 | 0 | 975 |
| Poland | 1 174 | 0 | 0 | 0 | 0 | 1 174 |
| Netherlands | 2 007 | 0 | 0 | 0 | 50 572 | 52 579 |
| Ireland | 2 396 | 0 | 0 | 0 | 0 | 2 396 |
| Deutschland | 0 | 0 | 0 | 0 | 5 253 | 5 253 |
| UK | 6 | 0 | 0 | 0 | 24 390 | 24 395 |
| Portugal | 6 406 | 0 | 0 | 0 | 0 | 6 406 |
| Rest of Europe | 383 | 0 | 0 | 0 | 77 | 459 |
| Other | 310 | 0 | 0 | 0 | 0 | 310 |
| Total operating income | 538 534 | 398 972 | 278 868 | 138 913 | 47 121 | 1 402 408 |
| Timing of revenue recognition | ||||||
| Goods transferred at a point in time Goods and services transferred over time |
499 771 38 762 |
398 972 0 |
278 868 0 |
138 913 0 |
47 121 0 |
1 363 646 38 762 |
29
The table below shows the movement in deferred income during 2024.
| Deferred income | |
|---|---|
| 31.03.2024 | |
| In NOK 1000 | |
| Opening balance | 73 726 |
| Movement | 5 729 |
| Closing balance | 79 455 |
Note 6 - Financial income and expense
| 01.01-31.03 | 31.12 | ||
|---|---|---|---|
| In NOK 1000 | 2024 | 2023 | 2023 |
| Finance income | |||
| Interest income | 0 | 0 | 0 |
| Gain on investments at fair value | 0 | 0 | 7 569 |
| Other finance income | 1 956 | 10 707 | 6 328 |
| Total finance income | 1 956 | 10 707 | 13 897 |
| Finance expense | |||
| Interest on debts and borrowings | 1 604 | 0 | 0 |
| Interest from leases | 759 | 131 | 759 |
| Loss on investments at fair value | 0 | 0 | 0 |
| Unwinding of discount on contingent considerations | 0 | 2 312 | 0 |
| Other finance expense | 2 082 | 1 069 | 2 356 |
| Total finance expense | 4 445 | 3 513 | 3 115 |
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 3-month period ended 31.03.2024 follows:
| 01.01-31.03. | 01.01-31.12 | ||||
|---|---|---|---|---|---|
| In NOK 1000 | 2024 | 2023 | 2023 | ||
| Profit (+)/loss (-) before tax | -12 059 | -178 | 23 990 | ||
| Adjustment for losses not recognised as deferred tax asset | 10 108 | 14 463 | -568 | ||
| Difference in tax rates | -188 | -2 877 | 6 659 | ||
| Non deductible share based payment arrangement | 2 990 | 3 959 | 8 127 | ||
| Not taxable income | 0 | 0 | -21 156 | ||
| Other differences | -13 495 | 8 114 | -9 047 | ||
| Estimated basis for tax expense | -12 643 | 23 481 | 8 005 | ||
| Tax expense | 22 % | -2 782 | 5 166 | 1 761 |
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 31.03.2024 this applies to Germany, UK and France.
Note 8 - Intangible assets and goodwill
| 31.03.2024 | |||||
|---|---|---|---|---|---|
| In NOK 1000 | Goodwill | Intangible asset |
Property, plant and |
Right of use assets |
Total |
| Opening balance | 79 171 | 80 320 | equitpment 15 118 |
52 741 | 180 437 |
| - Amortisaton and depreciation | 0 | -3 857 | -1 172 | -2 626 | -7 654 |
| + Purchases and new leases | 0 | 8 055 | 3 249 | 0 | 11 304 |
| - Disposals | 0 | 0 | 0 | 0 | 0 |
| +/- Foreign currency effects | -1 508 | -316 | 35 | 143 | -1 646 |
| Closing balance | 77 663 | 84 201 | 17 230 | 50 258 | 229 353 |
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 864 MNOK from March 2024 till March 2025. A significant portion of the committed production may be postponed based on quarterly updated forecasts.
The Group has a balance at the end of the first quarter of 573 MNOK versus 167 MNOK in the same period previous year. Measures are taken to adapt production to a normalized level of inventory in the long term. The stock consists only of current goods and inventory write-downs recognized as an expense amount to 0 MNOK.
Note 10 - Trade receivables
Provision for credit losses is 14,9 MNOK at 31 March 2024 and 13,7 MNOK at 31 December 2023.
Note 11 - Other current assets
| Breakdown of other current assets: | |||
|---|---|---|---|
| In NOK 1000 | 31.03.2024 | 31.03.2023 | 31.12.2023 |
| Loan to finance inventory* | 35 803 | 77 493 | 35 849 |
| VAT refund | 43 047 | 115 | 52 842 |
| Other | 22 593 | 26 969 | 33 390 |
| Total | 101 444 | 104 577 | 122 081 |
* The Group has not identified any impairment indicators related to the loan to Sanmina.
Note 12 - Other non-current assets
Breakdown of other non-current assets
| In NOK 1000 | 31.03.2024 | 31.03.2023 | 31.12.2023 |
|---|---|---|---|
| Investment in Switch EV Ltd. | 4 872 | 4 872 | 4 872 |
| Other | 334 | 573 | 316 |
| Total | 5 206 | 5 445 | 5 189 |
Note 13 - Provisions
The Group has a provision for warranty claims of 16,8 MNOK at period end.
The remaining long term provisions is related to the long-term incentive program for employees.
31
Note 14 - Loans and borrowings
| 31.12.2023 | ||
|---|---|---|
| 0 | ||
| 0 | ||
| 0 | 29 229 | 0 |
| 0 | ||
| 0 | ||
| 0 | ||
| 179 209 | -29 229 | 0 |
| 0 | 0 | 0 |
| 0 | ||
| 179 209 | 0 | 0 |
| New loans Repayments Other |
31.03.2024 0 0 179 209 0 0 179 209 |
31.03.2023 0 29 229 0 -29 229 0 0 |
The Group has an overdraft facility of 300 MNOK. The interest rate is 6,45 % 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:
-
NIBD/EBITDA < 4.0. As of first quarter of 2025 NIBD/EBITDA < 2,5. Will be measured on a quarterly basis based on the last 12 months of the Group numbers.
-
Overdraft shall not exceed 60% of external trade receivables (not older than 90 days), and booked values of projects in progress, inventory. Quarterly reporting based on group numbers. Overdraft above this limit will be deemed a breach of covenant.
-
The lender shall approve any new owners with controlling influence and/or if the company is taken of the stock exchange.
-
IP-rights shall not be transferred or sold between the borrower and/or subsidiaries without approval from the bank.
-
The Group`s patents and other IP-rights shall not be pledged or in any other way be put as security in advantage for other creditors of the group.
-
Dividend from Zaptec ASA to be approved by the bank and Eksfin
-
the borrower shall not produce coal or sell/produce coal.
-
The borrower shall ensure that not any subsidiary are pledging shares or other activa without written approval from the lender.
The Group has complied with all covenants as at, and for the three months ended 31 March 2024.
Security:
-
First priority pledge in inventory, accounts receivables and machinery/equipment in Zaptec ASA. Face value of 350 MNOK of each pledged item.
-
Pledge in inventory, trade receivables and machinery/equipment in Zaptec Charger AS. Face value of 350 MNOK of each pledged item.
Apart 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 events after the reporting date.
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, 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