Zaptec AS — Interim / Quarterly Report 2023

Feb 21, 2024

Q4 Report 2023

21st of February 2024

Update from the CEO	3
Highlights Q4
Financial Summary	5
Market Development	1
Q4 Stories	9
Outlook	15
Financial Statements	16

Update from the CEO

Dear shareholders,

Zaptec reports robust financial results for the fourth quarter of 2023, underscoring the company's outperformance in a challenging market landscape.

"As we reflect on our latest quarter, I am glad to announce the continuation of our growth story, where we continue to increase revenue and capture market shares. Further, export revenue increased, marked by a notable increase compared to the fourth quarter of last year. This signifies Zaptec's expanding presence and proves an increasing market share in Europe, even though EV charging manufacturers are experiencing challenging times", says Kurt Østrem, interim CEO of Zaptec.

Order intake has experienced a notable upward trend. Despite the volatile electric vehicle market, Zaptec's ability to increase the order intake signifies the company's adaptability and strength in navigating a complex industry environment.

Zaptec continues to invest for the future, by preparing for several upcoming product releases targeting the European mass market. The strategic investment in marketing initiatives has yielded positive outcomes including increased order intake and reinforcing the company's brand visibility.

Thank you for your support.

Kurt Østrem Acting CEO and CFO

Highlights Q4 2023

• 1.4 billion NOK revenue in 2023, 94% annual growth
• Continued substantial quarterly revenue of 408 mill NOK, up 70% vs Q4 2022
• Order intake of 362 mill NOK, up 11% vs last quarter and 31% above Q4 2022
• Order backlog of 451 mill NOK
• Gross margin of 37%
• Opex of 158 mill NOK
• EBITDA of -8 mill NOK
• Secured additional financial flexibility by 230 mill NOK increased credit facility

Key financial figures

MNOK/%	Q4-23	Q4-22 2	YTD 2023	YTD 20222
Revenues	408	239	1 427	737
Export Share	72%	68%	68%	69%
Gross margin	37%	36%	38%	39%
Opex	158	126	492	311
EBITDA	-8	-39	43	-25
EBITDA Margin (%)	-2%	-16%	3%	-3%
Available liquidity	4411	114	4411	114

1 Including cash, deposits, funds and un-used overdraft facility of 300MNOK

² Restated figures in relation to IFRS15 adjustment, ref. note 15

Quarterly revenue and order intake (MNOK)

Financial summary

Revenue

Fourth quarter revenue of 408 MNOK, an increase of 70% compared to the same period last year*.

Registered purchase orders in the fourth quarter was 362 MNOK, an increase of 31% compared to the same period last year. The backlog of orders of 451 MNOK has scheduled deliveries throughout 2024.

The export share was 72% in the fourth quarter compared to 68% in the same period last year.

*Change of principle for revenue recognition from Q4-23 according to IFRS15, historical figures are restated. The change in principle is related to how revenue from connectivity included in sold chargers are accrued and spread over time, instead of taken at time of sale.

For the fourth quarter 2023 the IFRS15 adjustment has a negative impact on revenue of 9.8 MNOK and for 2023 in total it has a negative impact of 38.8 MNOK.

Note that the IFRS15 adjustment has no cash flow effect.

Please refer to note 15 for details and more information.

Gross margin

The gross margin in the fourth quarter was maintained at a high level of 37%, compared to 36% same period last year. For 2023 in total the gross margin ended at 38% compared to 39% in 2022.

Compared to previous financial releases IFRS15 adjustment stands for 1.5% reduction in margin for Q4 2023, and 1.7% in total for 2023.

Financial summary

Opex

Total employee benefit expenses and other operating expenses in the fourth quarter was 158 MNOK compared to 126 MNOK in same period last year.

Personnel expenses in the fourth quarter was 72 MNOK, which is an increase of 20% compared to same period last year. At the end of December 2023 Zaptec had 191 employees, compared to 144 employees at end of December 2022. In addition, termination agreement with the prior CEO of 11.4 MNOK and accrual for employee bonuses of 6 MNOK was accounted for in the fourth quarter 2023.

Other operating expenses in the fourth quarter was 87 MNOK, an increase of 32% compared to same period last year of 66 MNOK. The increase is largely related to strategic use of marketing expenses in a difficult market and increased provision for potential credit loss.

EBITDA

EBITDA in the fourth quarter was negative 8 MNOK (-2%) compared to negative 39 MNOK (-16%) in the fourth quarter last year.

For 2023 in total EBITDA was 43MNOK (3%). This is an improvement of 68 MNOK compared to negative EBITDA of 25 MNOK (-3%) for 2022.

Available Liquidity and increased credit facility

In Q4, the overdraft facility with DNB was increased from 70 to 300 MNOK to provide additional financial flexibility. The new facility is backed by Export Finance Norway which guarantees for 50% of the credit limit.

The cash balance with total cash, available overdraft facility, deposits and other funds per end of December 2023 was 441 MNOK.

Norwegian electric vehicle sales declined in the fourth quarter

Sales figures for electric vehicles declined in Norway in the fourth quarter, as the combination of high inflation and increased interest rates led to more cautious consumer spending. In this weak market, Zaptec increased revenue in Norway with 51%.

Norwegian plug-in vehicle sales declined in Q4

• Adoption of plug-in vehicles continued, with plug-in share increasing from 89,6% in the fourth quarter last year to 90,4% in the fourth quarter 2023.
• Battery electric vehicle sales declined 57% from 58 348 in the fourth quarter last year to 24 915 in the fourth quarter 2023.
• Plug-in hybrid vehicles sales declined 39% from 5 806 in the fourth quarter last year to 3 527 vehicles in the fourth quarter 2023.
• For battery electric vehicles (BEV) and plug-in hybrid vehicles (PHEV) combined, number of vehicles sold declined 56% in the fourth quarter compared to the same period last year.
• It is worth noting that the BEV + PHEV sales in the fourth quarter of 28 442 is 15% below the quarterly average BEV + PHEV sales the last eight quarters of 33 642, so the decline in the fourth quarter is not as dramatic as it might appear due to high sales in the fourth quarter of 2022.
• For 2023 in total, BEV+ PHEV sales declined 9% in Norway. In 2024, growth in vehicle sales is expected according to OFV and plug-in vehicles are likely to dominate sales statistics in Norway.

Plug-in vehicle sales slowed down somewhat in Europe, but EV adoption continued in the fourth quarter

The adoption of electric vehicles in EU continued with increasing battery electric vehicle sales, while plug-in hybrid vehicle sales declined. In a period with declining sales of plug-in vehicles overall, Zaptec's export revenue increased 75%.

EV adoption continued, but vehicle sales weakened in the European Union

• The adoption of plug-in vehicles continued in the European Union in the fourth quarter as nearly 1 of 4 new vehicles sold were battery electric or plug in hybrid electric vehicles – up from 1 of 5 in the fourth quarter last year.
• In the fourth quarter, the number of new vehicle registrations in EU with electric engine increased by 5% to 426 429 compared to 406 601 in the third quarter of 2022
• Plug-in hybrid vehicles sales decreased 25% from 287 992 in the fourth quarter of 2022 to 216 104 in the fourth quarter of 2023
• For battery electric vehicles (BEV) and plug-in hybrid vehicles (PHEV) combined this is equivalent to a decrease of 7% compared to the fourth quarter of 2022.
• 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.

Increased credit facility provides financial flexibility

In the fourth quarter, Zaptec signed a new agreement with DNB, which increased the liquidity reserve with MNOK 230 by expanding the overdraft facility from 70 MNOK to 300 MNOK. The facility is backed by Export Finance Norway, which guarantees 50% of the credit limit.

"We are very pleased to get this financing in place which provides a significant increase to our liquidity reserve. In addition to this we have managed to adjust production commitments towards our production partners Westcontrol and Sanmina for the first half of 2024 while maintaining flexibility to scale up in tandem with anticipated growth. In sum this provides Zaptec with the strength, flexibility and ability to maneuver in the dynamic and growing EV market" says Acting CEO and CFO, Kurt Østrem.

Sale of non-core asset

Divestment of non-core asset Charge365 AS to Wattif EV

As part of Zaptec's strategy to focus on core business, Charge365 AS was divested to Wattif EV in the fourth quarter. Considered a non-core asset, Charge365 represents less than 1% of Zaptec's total revenues. The transaction is based on a cash consideration of approximately NOK 21,2 million.

As part of the transaction, Wattif and Zaptec have entered into a comprehensive frame agreement to deploy Zaptec charging stations to housing cooperatives and multi-family homes across all of Wattif's markets. This signifies that Zaptec is onboarding a new Value-Added Partner with solid European expansion plans. The collaboration is expected to significantly increase sales for Zaptec, covering territories such as Norway, Sweden, the UK, Ireland, Germany, and Austria.

For Zaptec, this strategic alliance underscores a commitment to our partner-centric and cost-effective sales approach, aiming to provide safe, high-quality charging solutions across the European landscape. In the future, Zaptec is committed to delivering future-ready, value-added services to its customers. The development of these services is currently in progress, and they are anticipated to be launched once market conditions are deemed optimal.

Production milestone achieved

In Q4, we announced the production of 500,000 Zaptec charging stations. This monumental milestone signifies not just a number but a substantial impact on the energy landscape. These charging stations have collectively delivered a staggering total energy of 600 million kWh.

To grasp the scale of this accomplishment:

• Equivalent to circumnavigating the Earth approximately 74,798 times.
• Roughly 20 orbits around the Sun.
• About 7,807 round trips from the Earth to the Moon and back.
• Comparable to embarking on 55 journeys to Mars.

Relocation of Zaptec's headquarters

Zaptec moved its head office from Stavanger to Sandnes in the fourth quarter. The new office resides in the area where oil and gas technology thrives in Norway and where other EV charging manufacturers are situated.

Locating in this epicenter of technology and engineering sets the company's standard when we have sufficient space for Zaptec to grow in a pulsing area of competition and new technology.

The launch of a new learning platform sets new industry standards

During the fourth quarter, we launched Zaptec Academy, the industry's first dedicated digital learning platform for training electricians in the safe and efficient installation of electric vehicle chargers.

"Our goal is to make training available 24/7 so electricians can tailor the training program to their schedule. We are the first in our industry to offer such courses. In just 17 days, the number of certified Zaptec electricians in our test market in Norway has surpassed the total for the last six months," says Julie Frances Roman, Customer Success Manager at Zaptec.

Sharing sustainability best practices in global industry coalition

Zaptec became a member of the world's largest industry coalition dedicated to responsible business conduct in global supply chains.

The Responsible Business Alliance (RBA) is the electronics industry's collective effort towards sustainable supply chains, where members, stakeholders, and suppliers collaborate to improve the environment, working conditions, and corporate governance.

"We now stand shoulder to shoulder with Polestar, Apple, and Microsoft, sharing our approach with the rest of the industry", says Rigmor Haga, Sustainability Director at Zaptec.

Membership in the RBA is highly regarded in the electronics industry. In addition to sharing best practices, it is founded on principles of collaboration and standardization for social, environmental, and ethical aspects within the industry's supply chains. In an industry with low transparency, the RBA contributes to increased traceability, openness, and standard methodologies among its members.

"When considering a product's life cycle, it's a long way from raw materials to final product, and it's our responsibility to ensure that all workers along the value chain benefit from fair and decent working conditions. The ambition must be that we have responsible production without a negative impact on the people producing it and that we are an active contributor to society. If we don't collaborate with the rest of society, we're not problem solvers," says Haga.

"We want to operate in a way that assures users that the company is not in a situation that finances armed conflict or supports unacceptable conditions to create the products. To achieve this, processes need to be reviewed, and suppliers' requirements must be set, " she adds.

With the new regulations from the EU, sustainability reporting will be on par with financial reporting. Zaptec is on track to comply with these regulations starting in 2026 but is now beginning to align its sustainability reporting to meet these requirements.

Well-prepared to capitalize on European mass-market EV adoption

The fourth quarter performance provides both visibility for future revenue and the financial flexibility needed for sustained growth.

We have strategically positioned ourselves to tap into international markets, leveraging our products' strengths and competitive advantages. As we expand our reach beyond domestic borders, we anticipate substantial growth in revenue from exports.

We have successfully initiated sales operations in France, a significant market with immense potential. Our products have been well-received, and we are building momentum. The Benelux region is another area where we are gaining traction. Our efforts here are contributing to our overall growth. While we continue to explore opportunities in the UK, we are also re-focusing our approach to maximize impact. We have established partnerships with new distributors across various European markets. These collaborations are essential for expanding our market presence.

Our product development team has worked hard to create innovative solutions tailored to the European mass market. These upcoming releases address consumer needs and align with market trends, positioning us for success.

Our addressable market is expanding rapidly. The increasing adoption of electric vehicles (EVs) across Europe presents a significant growth opportunity for us. Our products are well-aligned with the demands of this evolving market. As EV sales accelerate, our addressable market continues to grow.

Looking ahead, we anticipate significant cash flow generation in 2025-2026.

EV sales acceleration forecasted in Europe

Financial Statements

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

			Restated		Restated
		Fourth quarter		01.01-31.12
In NOK 1000	Note	2023	2022	2023	2022
Operating income
Revenues from contracts with customers	4,5,15	383 895	239 444	1 402 408	736 942
Other operating income		24 182	0	24 182	0
Total operating income		408 077	239 444	1 426 590	736 942
Operating expenses
Cost of inventories	4	257 553	153 045	891 290	450 638
Employee benefit expenses	3	71 568	59 865	247 962	157 090
Depreciation and amortisation expense	4,8	10 748	5 785	29 918	20 573
Other operating expenses	4	86 808	65 717	244 213	154 190
Total operating expenses		426 677	284 412	1 413 383	782 491
Operating profit/loss		-18 600	-44 968	13 207	-45 549
Financial income and expenses
Finance income	6	15 687	-1 215	41 321	6 084
Finance expense	6	7 432	-507	30 539	13 527
Net financial income (+) and expenses (-)		8 255	-708	10 782	-7 443
Profit (+)/loss (-) before tax		-10 344	-45 676	23 990	-52 991
Tax expense (+)/benefit (-)	7	-14 420	-5 063	1 761	-101
Profit (+)/loss (-) after tax		4 076	-40 613	22 228	-52 890
Total profit/loss attributable to:
Owners of the parent		4 076	-40 613	22 228	-52 890
Non-controlling interest		0	0	0	0
Basic earnings per shares		0,047	-0,532	0,259	-0,693
Diluted earnings per shares		0,046	-0,532	0,256	-0,693

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

			Restated		Restated
		Fourth quarter		01.01-31.12
In NOK 1000	Note	2023	2022	2023	2022
Profit (+)/loss (-) for the period		4 076	-40 613	22 228	-52 890
Items that will or may be reclassified to profit or loss:
Exchange gains arising on translation of foreign operations		10 530	-14 734	19 147	6 457
Total comprehensive income		14 606	-55 347	41 375	-46 434
Total comprehensive income attributable to:
Owners of the parent		14 606	-55 347	41 375	-46 434
Non-controlling interest		0	0	0	0

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

			Restated
In NOK 1000	Note	31.12.2023	31.12.2022
ASSETS
Goodwill and intangible assets
Goodwill	8	79 171	69 638
Other intangible assets	8	80 320	85 462
Deferred tax asset
Deferred tax asset	7	29 898	12 417
Tangible assets
Property, plant and equipment	8	15 118	9 015
Right-of-use assets	8	52 741	15 710
Other non-current assets	12	5 189	5 310
Total non-current assets		262 437	197 551
Inventories
Inventories	9	447 348	90 788
Receivables
Trade receivables	10	186 045	116 337
Other current assets
Financial investments	6	0	0
Other current assets	11	122 081	113 299
Cash and cash equivalents
Cash and cash equivalents		141 643	102 862
Total current assets		897 117	423 286
TOTAL ASSETS		1 159 554	620 838

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

			Restated
In NOK 1000	Note	31.12.2023	31.12.2022
EQUITY AND LIABILITIES
Equity
Share capital		1 313	1 146
Treasury shares		-3	0
Share premium		646 945	359 185
Not registered capital increase		0	0
Other paid in equity		14 982	6 855
Foreign exchange reserve		28 960	10 480
Other reserves		-27 374	-52 849
Total equity		664 823	324 817
Non-current liabilities
Deferred tax	7	7 127	5 901
Long-term lease liabilities	8	43 762	10 528
Long-term provisions	13	21 234	5 115
Total non-current liabilities		72 123	21 544
Current liabilities
Trade payables		244 604	146 057
Deferred income	5,15	73 726	34 964
Short-term loans and borrowings	14	0	29 229
Short-term lease liabilities	8	9 064	5 414
Tax payable	7	20 984	11 107
Other current liabilities		74 228	47 706
Total current liabilities		422 607	274 477
Total liabilities		494 730	296 021
TOTAL EQUITY AND LIABILITIES		1 159 554	620 838

CONSOLIDATED STATEMENT OF CASH FLOWS

Fourth quarter 01.01-31.12 In NOK 1000 Note 2023 2022 2023 CASH FLOW FROM OPERATING ACTIVITIES Profit (+)/loss (-) before tax -10 344 -45 676 23 990 Taxes paid 0 5 590 -11 107 Depreciation and amortisation expense 8 10 748 3 630 29 918 Shared based payment expense 3 -2 150 8 565 8 127 Finance income 6 15 687 9 064 41 321 Finance expense 6 -7 604 88 -31 242 Interest received 6 0 0 0 Increase in trade receivables 10 121 456 6 475 -69 708 Increase in inventories 9 -147 742 -32 531 -356 560 Increase in trade payables -4 587 -17 220 98 547 Change in other accrual items 20 615 -34 692 47 050 NET CASH FLOW FROM OPERATING ACTIVITIES -3 919 -96 705 -219 663 CASH FLOW FROM INVESTMENT ACTIVITIES Purchases of property, plant and equipment 8 -54 376 -6 993 -78 377 Proceeds from sale of PP&E 8 269 0 7 570 Proceeds from sale of investments (funds) 0 86 685 0 Advances/loans to suppliers 11 -1 989 -14 206 35 849 Investments in other entities 0 0 0 Cash flow from other investments 0 0 0 NET CASH FLOW FROM INVESTMENT ACTIVITIES -56 095 65 487 -34 958 CASH FLOW FROM FINANCING ACTIVITIES Repayment of loans and borrowings 14 0 -958 -29 229 Draw down on credit facility 14 0 -1 174 0 Lease liabilities 8 42 030 -1 288 37 587 Interest on lease liabilities 8 -172 -135 -703 Interest on debts and borrowings 0 -998 0 Settlement of option agreement 3 0 0 0 Purchase of treasury shares -2 180 -100 -2 180 Sale of treasury shares 0 1 126 0 Issue of share capital 0 0 0 Proceeds from equity 0 0 287 927 NET CASH FLOW FROM FINANCING ACTIVITIES 39 679 -3 527 293 402 Net change in cash and cash equivalents -20 335 -34 745 38 781 Cash and cash equivalents at start of period 161 978 137 605 102 862 CASH AND CASH EQUIVALENTS AT END OF PERIOD 141 643 102 862 141 643		Restated		Restated
2022 -52 991 -9 248 20 573 11 511 5 990 13 527 94 -35 421 -64 615 79 915 -18 150 -48 815 0 -24 838 177 691 -67 397 -4 872 67 80 652 -3 833 29 229 -4 546 -511 -2 119 -9 157 -15 984 1 689 0 0 -5 233 26 604 76 258
102 862

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

In NOK 1000	Share Capital	Own shares	Share premium	Not registered capital	Other paid in capital	Foreign exchange reserve	Other equity	Total equity holders of the parent	Non controlling interest	Total equity
1 January 2022	475	0	355 362	3 825	11 328	4 024	19 500	394 514		0 394 514
Correction of error	0	0	0	0	0	0	-11 316	-11 316		0 -11 316
Adjusted equity 1 January 2022	475	0	355 362	3 825	11 328	4 024	8 184	383 198		0 383 198
Profit (+)/loss (-) after tax	0	0	0	0	0	0	-52 891	-52 891		0 -52 891
Other comprehensive Income	0	0	0	0	0	6 457	0	6 457	0	6 457
Purchase of treasury shares	-2	-2	0	0	0	0	-9 155	-9 159	0	-9 159
Sale of treasury shares	2	2	0	0	0	0	1 687	1 691	0	1 691
Capital increase	672	0	3 823	-3 825	0	0	-675	-6	0	-6
Settlement of share based payment*	0	0	0	0	-15 984	0	0	-15 984		0 -15 984
Share based payments	0	0	0	0	11 511	0	0	11 511	0	11 511
31 December 2022	1 146	0	359 185	0	6 855	10 480	-52 849	324 817		0 324 817
1 January 2023	1 146	0	359 185	0	6 855	10 480	-52 849	324 817		0 324 817
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	-2 182	0	-2 182
Sale of company in the same group	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
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	-27 374	664 823		0 664 823

* Settlement of option agreement (purchase of own equity instruments). Refer to Note 3 for additional information

** Relates to shared services booked in Zaptec Charger AS and not in Zaptec Deutchland GmbH at 31 December 2022.

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 21 February 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 2022 IFRS financial statement issued by the company on the 26 of April 2023.

Note 2 - Significant accounting policies

The Group has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2022 annual financial statements, except for:

In prior years financial statement, deferred income according to IFRS 15 has not been recognised. The Group has restated 2022 figures and recognised deferred income in 2023. Refer note 5 and 15 for more information.

Note 3 - Significant events and transactions

Shared based payments

New programs in 2022

Share-based incentive program for all employees

As of 01.01.2022 The Group implemented a share-based incentive program. Under the program all employees are entitled to a bonus equal to 20% of the employees' annual salary at 01.01.2022. The shares are allocated immediately and are vested over the vesting period, but can not be sold before 01.01.2025. Under the program the number of shares received is fixed at 01.01.2022. The number of shares equals 20% of the annual salary less withholding tax divided by the share price of Zaptec ASA based on average stock price last 15 days of 2021. Allocated shares for 2022 is 69 220.

The share portion is accounted for as an equity settled share-based payment program with immediate allocating to the employee that is the fair value of the equity instruments at grant date will be expensed over the vesting period (01.01.2025). Fair value is measured by using the actual average stock price of the last 15 days of 2021.

As of 01.01.2023 The Group implementet a new share-based incentive program for new employees in 2022. Under the program all employees are entitled to a bonus equal 20% of the annual salary at 31.12.2022. The shares will be allocated to the employees after the three year vesting period, i.e. shortly after 01.01.2026. Under the program the number of shares received is fixed at 01.01.2023. The number of shares equals 20% of the annual salary divided by the share price of Zaptec ASA based on average stock price last 15 days of 2022.

The share portion is accounted for as an equity settled share-based payment program, that is the fair value of the equity instruments at grant date will be expensed over the vesting period (01.01.2026). Fair value is measured by using the actual average stock price of the last 15 days of 2022.

The company operates two equity-settled share-based remuneration schemes for key management: Share-based incentive program for management

As of 01.01.2022 the group implemented a share-based incentive program. Under the program key management are granted a right to receive a defined number of shares after a vesting period. The vesting period is running until 01.01.2025. Per 31.12.2023 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 31.12.2023 The Group had employee stock options agreements with 3 employees, acting CEO and CFO 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 31.12.2023 remaining stock options is 450 000 shares. All of these stock options can be excercised as of 31.12.2023.

One board member, Stig H. Christiansen (Chairman) holds stock options as of 31.12.2023. The agreement have vesting periods ranging for 6,4 - 18,4 months from 18.06.2021, which grant the board member purchase rights of 50 000 shares at a share pricing of NOK 11,25.

Share based payment expense is charged to the income statement with the following amounts per Q4 2023 and Q4 2022.

	01.01-31.12
In NOK 1000	2023	2022
Option program	0	3 653
Share-based incentive program for all employees	4 711	1 402
Cash portion Share-based incentive program for all employees	0	686
Share-based incentive program for management	3 415	6 457
Provision for social security contribution*	1 353	-5 791
Total operating income	9 480	6 406

* The expense for social security contribution is accrued based on the intrinsic value of the equity instruments vested. As a result of the significant reduction of the Zaptec share the provision has been reduced during 2022. Provision for not vested instruments is also recognised, and are expensed over the vesing period.

All sale or purchase of treasury shares are related to options and/or the share-based incentive programs. The settlement of option agreement in 2022 (-15,9 MNOK) relates to reimbursement for terminating option agreement.

Note 4 - Segment information

The Group consists of several legal entities where most of the entities are established to handle sales in a specific country. For management purposes, financial information is reported to the group management based on a legal entity basis. The group management is identified as the chief operating decision maker. Based on the internal reporting the following reportable segments are identified.

Zaptec Charger AS

This segment is involved in the sale of Zaptec products in Norway, and to customers in other countries where the Group has not established an entity or sales organization. Zaptec Charger AS also handles procurement of goods and internal sales.

Zaptec Sverige AB

This segment is involved in the sale and distribution of Zaptec products in Sweden.

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	31.12.2023
In NOK 1000		Zaptec	Zaptec	Zaptec	Zaptec		Other Adjustments	Total
		Charger	Sverige AB Schweiz AG			and
		AS		Danmark 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	140 709	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		-7 503	30 448	21 739	7 003	12 344	-50 826	13 207
Year-to-date	31.12.2022

In NOK 1000	Zaptec	Zaptec	Zaptec		Other* Adjustments	Total
	Charger	Sverige AB	Schweiz AG		and
	AS				eliminations
Operating income
Revenues from contracts with customers	361 618	155 714	210 152	29 914	-20 456	736 942
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	652 678	159 106	210 152	30 914	-315 907	736 942
Operating expenses
Cost of inventories	431 961	110 075	106 308	22 983	-220 688	450 638
Employee benefit expenses	80 449	8 703	22 382	28 774	16 782	157 090
Depreciation and amortisation expense	9 215	0	36	1 558	9 764	20 573
Other operating expenses	102 806	30 552	74 796	49 933	-103 896	154 190
Total operating expenses	624 431	149 330	203 522	103 247	-298 038	782 491
Operating result	28 247	9 776	6 630	-72 333	-17 870	-45 549

Quarter	31.12.2023
In NOK 1000		Zaptec	Zaptec	Zaptec	Zaptec		Other Adjustments	Total
		Charger Sverige AB Schweiz AG			Danmark		and
		AS			ApS	eliminations
Operating income
Revenues from contracts with customers		157 423	91 844	80 859	37 259	27 732	-11 222	383 895
Revenues from internal sales		174 721	0	0	0	625	-175 346	0
Revenues from shared services		23 423	2 553	203	402	21 965	-48 545	0
Other operating income		0	0	0	0	24 182	0	24 182
Total operating income		355 567	94 396	81 062	37 661	74 504	-235 113	408 077
Operating expenses
Cost of inventories		248 617	71 822	45 931	42 081	12 081	-162 980	257 553
Employee benefit expenses		50 310	5 147	8 009	2 680	10 163	-4 740	71 568
Depreciation and amortisation expense		5 025	14	0	0	489	5 221	10 748
Other operating expenses		56 653	39 197	75 919	12 882	-14 808	-83 035	86 808
Total operating expenses		360 605	116 180	129 859	57 643	7 925	-245 533	426 677
Operating result		-5 038	-21 783	-48 797	-19 982	66 580	10 420	-18 600

Quarter	31.12.2022
In NOK 1000	Zaptec	Zaptec	Zaptec		Other* Adjustments	Total
	Charger	Sverige AB Schweiz AG			and
	AS				eliminations
Operating income
Revenues from contracts with customers	119 962	63 144	49 335	15 096	-8 094	239 444
Revenues from internal sales	138 359	1 095	0	250	-139 705	0
Other operating income	0	0	0	0	0	0
Total operating income	258 321	64 239	49 335	15 346	-147 799	239 444
Operating expenses
Cost of inventories	141 173	43 711	17 182	13 725	-62 746	153 045
Employee benefit expenses	30 005	4 102	7 992	10 095	7 670	59 865
Depreciation and amortisation expense	2 805	0	15	320	2 645	5 785
Other operating expenses	55 629	19 385	66 908	14 653	-90 859	65 717
Total operating expenses	229 612	67 199	92 097	38 793	-143 289	284 412
Operating result	28 710	-2 960	-42 762	-23 447	-4 509	-44 968

* includes Zaptec Danmark ApS in 2022

Adjustments and eliminations

The Group evaluates segmental performance on the basis of profit or loss from operations calculated based on local financial statements. Adjustments for IFRS 16 and eliminations are included in the column adjustments and eliminations. Depreciation and amortisation excess values from business combinations are not allocated to individual segments as the underlying assets are managed on a group basis.

Adjustments and eliminations is as follows:

31.12.2023
	Revenues	Cost of	Employee	Depreciatio	Other
	from	inventories	benefit	n and	operating
	internal		expenses	amortisatio	expenses
	sales			n expense
	-592 233	-584 086	0	0	-1 750
Elimination of shared services (2)	-85 580	0	-11 494	0	-108 535
	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
	0	0	0	0	0
	-1 377	-1 378	7 709	0	10 348
	-38 762	0	0	0	0
	-717 952	-578 113	5 695	14 999	-109 707

Year-to-date	31.12.2022
In NOK 1000		Revenues	Cost of	Employee	Depreciatio	Other
		from	inventories	benefit	n and	operating
		internal		expenses	amortisatio	expenses
		sales			n expense
Elimination of internal sales (1)		-295 451	-220 516	0	0	-73 946
Elimination of employee benefits allocated (2)		0	0	16 782	0	-24 892
IFRS 16 adjustments (3)		0	0	0	4 904	-5 057
GAAP-adjustment to inventory (4)		0	-3 401	0	0	0
Amortization of excess values (5)		0	0	0	4 860	0
Gains on internal transactions (6)		0	3 228	0	0	0
Other (9)		0	0	0	0	0
IFRS 15 adjustments (10)		-20 456	0	0	0	0
Total		-315 907	-220 688	16 782	9 764	-103 896

Quarter	31.12.2023
In NOK 1000		Revenues	Cost of	Employee	Depreciatio	Other
		from	inventories	benefit	n and	operating
		internal		expenses	amortisatio	expenses
		sales			n expense
Elimination of internal sales(1)		-175 346	-167 882	0	0	-625
Elimination of shared services (2)		-48 545	0	-4 605	0	-78 588
IFRS 16 adjustments (3)		0	0	0	3 656	-4 310
GAAP-adjustment to inventory (4)		0	5 679	0	0	0
Amortization of excess values (5)		0	0	0	980	0
Gains on internal transactions (6)		0	358	0	0	0
Share-based incentive program (7)		0	0	-1 827	0	0
Provision for warranty claims (8)		0	0	0	0	-9 788
Other (9)		-1 389	-1 135	1 691	585	10 276
IFRS 15 adjustments (10)		-9 832	0	0	0	0
Total		-235 113	-162 980	-4 740	5 221	-83 035

Revenues	Cost of		Depreciatio	Other
from	inventories		n and	operating
internal		expenses	amortisatio	expenses
sales			n expense
-139 705	-67 816	0	0	-70 899
0	0	7 670	0	-15 780
0	0	0	1 355	-1 423
0	1 841	0	0	0
0	0	0	1 290	0
0	3 228	0	0	0
0	0	0	0	-2 756
-8 094	0	0	0	0
-147 799	-62 746	7 670	2 645	-90 859
				Employee benefit

(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 and 15

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 31.12.2023
Segments
In NOK 1000	Zaptec	Zaptec	Zaptec	Zaptec	Other	Total
	Charger	Sverige AB	Schweiz	Danmark
	AS		AG	ApS
Product sales	538 534	398 972	278 868	138 913	47 121	1 402 408
Other	0	0	0	0	0	0
Total operating income	538 534	398 972	278 868	138 913	47 121	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	538 534	398 972	278 868	138 913	85 884	1 441 171
Goods and services transferred over time	-38 762	0	0		0	-38 762
	499 771	398 972	278 868	138 913	85 884	1 402 408
Total operating income
Year-to-date 31.12.2022
Segments
In NOK 1000	Zaptec	Zaptec	Zaptec		Other*	Total
	Charger	Sverige AB	Schweiz
	AS		AG
Product sales	361 618	155 714	210 152		9 458	736 942
Other	0	0	0		0	0
Total operating income	361 618	155 714	210 152		9 458	736 942
By business area - Geographical distribution
Norway	222 520	0	0		-8 043	214 477
Sweden	10 163	155 714	0		0	165 877
Switzerland	0	0	210 152		0	210 152
Denmark	70 608	0	0		0	70 608
Iceland	13 093	0	0		0	13 093
Rest of Europe	42 311	0	0		17 501	59 813
Other	2 922	0	0		0	2 922
Total operating income	361 618	155 714	210 152		9 458	736 942
Timing of revenue recognition
Goods transferred at a point in time	361 618	155 714	210 152		29 914	757 398
Goods and services transferred over time	-20 456	0	0		0	-20 456

Total operating income 341 162 155 714 210 152 29 914 736 942

* includes Zaptec Danmark ApS in 2022

The table below shows the movement in deferred income during 2023.

Deferred income
31.12.2023
In NOK 1000
Opening balance	34 964
Movement	38 762
Closing balance	73 726

Note 6 - Financial income and expense

		01.01-31.12
In NOK 1000	2023	2022
Finance income
Interest income	0	94
Gain on investments at fair value	0	0
Other finance income	41 321	5 990
Total finance income	41 321	6 084
Finance expense
Interest on debts and borrowings	0	2 119
Interest from leases	759	511
Loss on investments at fair value	0	5 015
Unwinding of discount on contingent considerations	0	1 037
Other finance expense	29 780	4 847
Total finance expense	30 539	13 527

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 12-month period ended 31.12.2023 follows:

		01.01-31.12
In NOK 1000	2023	2022
Profit (+)/loss (-) before tax	23 990	-52 991
Adjustment for losses not recognised as deferred tax asset	-568	61 671
Difference in tax rates	6 659	2 524
Non deductible share based payment arrangement	8 127	-8 103
Calculated interest on contingent consideration	0	1 037
Not taxable income	-21 156	0
Other differences	-9 047	-4 600
Estimated basis for tax expense	8 004	-462
Tax expense	22 % 1 761	-101

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 31.12.2023 this applies to Germany, UK, France and Netherlands.

Note 8 - Intangible assets and goodwill

31.12.2023
In NOK 1000	Goodwill	Intangible asset	Property, plant and equitpment	Right of use assets	Total
Opening balance	69 638	85 462	9 015	15 710	180 437
- Amortisaton and depreciation	0	-15 576	-5 176	-9 165	-29 918
+ Purchases and new leases	0	13 601	11 392	53 384	78 377
- Disposals	0	-5 917	-131	-7 570	-13 618
+/- Foreign currency effects	9 533	2 752	18	382	12 684
Closing balance	79 171	80 320	15 118	52 741	227 349

Note 9 - Inventories

The inventory consists solely of finished goods (acquired goods produced for the Group for resale).

Total current purchase obligations of EV chargers from Westcontrol and Sanmina amounts to 1 059 MNOK from January 2024 till December 2024. 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 fourth quarter of 447 MNOK versus 91 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 are 0,4 MNOK at 31 December 2022 and 13,7 MNOK at 31 December 2023.

The increase in outstanding trade receivables are due to higher sales current year compared to the same period last year.

Note 11 - Other current assets

Breakdown of other current assets:
In NOK 1000	31.12.2023	31.12.2022
Loan to finance inventory*	35 849	35 273
VAT refund	52 842	17 720
Other	33 390	60 306
Total	122 081	113 299

* The Group has not identified any impairment indicators related to the loans to Sanmina.

Note 12 - Other non-current assets

Breakdown of other non-current assets
In NOK 1000	31.12.2023	31.12.2022
Investment in Switch EV Ltd.	4 872	4 872
Other	316	437
Total	5 189	5 310

Note 13 - Provisions

The Group has a provision for warranty claims of 17,6 MNOK at period end.

The remaining long term provisions is related to the long-term incentive program for employees.

Note 14 - Loans and borrowings

In NOK 1000		31.12.2023	31.12.2022
Start of period:
Non-current		0	0
Current		0	0
Total		0	0
Draw down on credit facility	New loans	0	29 229
Loans	Repayments	0	-3 833
Other changes	Other	0	0
Net changes		0	25 396
End of period:
Non-current		0	0
Current		0	25 396
Total		0	25 396

The Group has an overdraft facility of 300 MNOK which is undrawn at period end.

The Group have increased it's overdraft facility from 70 MNOK to 300 MNOK in 2023. The interest rate is 8,15 % 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 twelve months ended 31 December 2023.

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 - Correction earlier periods

In prior years financial statement deferred revenue in accordance with IFRS 15 has not been recognised. The element of deferred revenue is related to decomponing sales of chargers and included subscription service for connectivity, which is regarded as a commitment for five years after time of sales. In this Q4 report the 2022 figures have been restated. 2023 figures are restated for each quarter presented below. The total effect for 2023 is 38,8 MNOK in decreased revenue and deferred income is year to date 73,7 MNOK.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS - Restated

In NOK 1000	First quarter 2023	First quarter 2023 restated	Second quarter 2023	Second quarter 2023 restated	Third quarter 2023	Third quarter 2023 restated
Operating income
Revenues from contracts with customers	270 912	264 651	355 378	347 187	421 153	406 675
Other operating income	0	0	0	0	0	0
Total operating income	270 912	264 651	355 378	347 187	421 153	406 675
Operating expenses
Cost of inventories	158 515	158 515	226 933	226 933	248 289	248 289
Employee benefit expenses	56 103	56 103	51 534	51 534	68 757	68 757
Depreciation and amortisation expense	5 722	5 722	6 362	6 362	7 086	7 086
Other operating expenses	51 682	51 682	54 362	54 362	51 361	51 361
Total operating expenses	272 022	272 022	339 191	339 191	375 493	375 493
Operating profit/loss	-1 110	-7 371	16 187	7 996	45 660	31 182
Financial income and expenses
Finance income	10 707	10 707	11 110	11 110	3 817	3 817
Finance expense	3 513	3 513	7 165	7 165	12 429	12 429
Net financial income (+) and expenses (-)	7 194	7 194	3 945	3 945	-8 612	-8 612
Profit (+)/loss (-) before tax	6 084	-177	20 132	11 941	37 048	22 570
Tax expense (+)/benefit (-)	6 543	5 210	5 037	3 296	10 967	7 869
Profit (+)/loss (-) after tax	-459	-5 387	15 095	8 645	26 081	14 701
Total profit/loss attributable to:
Owners of the parent	-459	-5 387	15 095	8 645	26 081	14 701
Non-controlling interest	0	0	0	0	0	0
Basic earnings per shares -	0,01 -	0,07	0,18	0,10	0,30	0,17
Diluted earnings per shares -	0,01 -	0,07	0,18	0,10	0,29	0,17

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - Restated

In NOK 1000	First quarter 2023	First quarter 2023 restated	Second quarter 2023	Second quarter 2023 restated	Third quarter 2023	Third quarter 2023 restated
Profit (+)/loss (-) for the period	-459	-5 387	15 095	8 645	26 081	14 701
Items that will or may be reclassified to profit or loss:
Exchange gains arising on translation of foreign operations	6 143	6 143	7 216	7 216	-14 734	-14 734
Total comprehensive income	5 684	756	22 311	15 861	11 347	-33
Total comprehensive income attributable to:
Owners of the parent Non-controlling interest	5 684 0	756 0	22 311 0	15 861 0	11 347 0	-33 0

CONSOLIDATED STATEMENT OF PROFIT OR LOSS - Restated

	First	First	Second	Second	Third	Third	Fourth	Fourth
	quarter	quarter	quarter	quarter	quarter	quarter	quarter	quarter
In NOK 1000	2022	2022	2022	2022	2022	2022	2022	2022
		restated		restated		restated		restated
Operating income
Revenues from contracts with customers	132 177	129 295	151 550	148 324	226 133	219 880	247 538	239 444
Other operating income		0		0		0	0	0
Total operating income	132 177	129 295	151 550	148 324	226 133	219 880	247 538	239 444
Operating expenses
Cost of inventories	71 108	71 108	88 084	88 084	138 401	138 401	153 045	153 045
Employee benefit expenses	31 266	31 266	27 287	27 287	38 672	38 672	59 865	59 865
Depreciation and amortisation expense	4 500	4 500	4 401	4 401	5 887	5 887	5 785	5 785
Other operating expenses	29 708 136 582	29 708 136 582	24 647	24 647	34 118	34 118	65 717	65 717
Total operating expenses			144 419	144 419	217 078	217 078	284 412	284 412
Operating profit/loss	-4 405	-7 287	7 131	3 905	9 055	2 802	-36 874	-44 968
Financial income and expenses
Finance income	43	43	1 559	1 559	5 697	5 697	-1 215	-1 215
Finance expense	2 536	2 536	5 404	5 404	6 094	6 094	-507	-507
Net financial income (+) and expenses (-)	-2 493	-2 493	-3 845	-3 845	-397	-397	-708	-708
Profit (+)/loss (-) before tax	-6 898	-9 780	3 286	60	8 658	2 405	-37 582	-45 676
Tax expense (+)/benefit (-)	-535	-1 155	3 001	2 317	5 155	3 810	-3 282	-5 073
Profit (+)/loss (-) after tax	-6 363	-8 625	285	-2 257	3 503	-1 405	-34 300	-40 603
Total profit/loss attributable to:	-6 363	-8 625	285	-2 257	3 503	-1 405	-34 300	-40 603
Owners of the parent	0	0	0	0	0	0	0	0
Non-controlling interest
Basic earnings per shares -	0,08 -	0,11	0,04 -	0,03	0,05 -	0,02 -	0,27 -	0,53
Diluted earnings per shares -	0,08 -	0,11	0,04 -	0,03	0,05 -	0,02 -	0,27 -	0,53

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - Restated

In NOK 1000	First quarter 2022	First quarter 2022	Second quarter 2022	Second quarter 2022	Third quarter 2022	Third quarter 2022	Fourth quarter 2022	Fourth quarter 2022
		restated		restated		restated		restated
Profit (+)/loss (-) for the period	-6 363	-8 625	285	-2 257	3 503	-1 405	-34 300	-40 603
Items that will or may be reclassified to
Exchange gains arising on translation of	-1 807	-1 807	7 785	7 785	14 880	14 880	-14 401	-14 401
Total comprehensive income	-8 170	-10 432	8 070	5 528	18 383	13 475	-48 701	-55 004
Total comprehensive income attributable
Owners of the parent	-8 170	-10 432	8 070	5 528	18 383	13 475	-48 701	-55 004
Non-controlling interest	0	0	0	0	0	0	0	0

The table below shows which financial statement captions that have been effected by the correction:
In NOK 1000	Other Equity	Deferred Income	Deferred tax asset	Revenue from contracts with
				customers
31.12.2022 before correction	-25 577	0	4 724	757 398
Correction of error	-27 272	34 964	7 692	-20 456
31.12.2022 restated	-52 849	34 964	12 416	736 942

Note 16 - 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

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