Slide 1: Zaptec powers adventure – Q1 2024 Financial Results
Zaptec powers adventure Q1 2024 Financial Results 7th May 2024
Slide 2: Business highlights | Q1 2024
Business highlights | Q1 2024 Clear market leader in the Nordics 1 and 3rd largest in Europe Robust order intake, revenue growth and 2 increased gross margin in challenging market Optimized production levels to facilitate the 3 path toward inventory normalization Substantial Opex reduction, with ong
Slide 3: Business highlights | Q1 2024
Business highlights | Q1 2024 Building momentum across new markets including 5 in the Netherlands, UK and France Upcoming product launches aimed at fueling mass 6 growth across Europe on track Outlook for sustained leadership in the Nordics 7 and expansion in Europe 3
Slide 4: Agenda: Financials Q1 2024
Agenda Financials Q1 2024 4
Slide 5: Financial highlights Q1 2024
Financial highlights Q1 2024 Revenue Order intake Order backlog 300 306 452 +14% vs. Q1 2023 -48% vs. Q1 2023 -8% vs. Q1 2023 Gross margin OPEX EBITDA 38% 115 -2 vs. 40% in Q1 2023 vs. 158 in Q4 2023 vs. -2 in Q1 2023 Figures in NOK million unless otherwise specified 5
Slide 6: Quarterly revenue 14% up
Quarterly revenue 14% up MNOK +14% UK Other Norway Netherlands 3% 4% 9% 21% 407 408 347 Denmark 14% Q1-24 265 300 revenue 220 239 25% 129 148 Sweden 25% Switzerland Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 6
Slide 7: Order intake above revenue, adding backlog
Order intake above revenue, adding backlog MNOK >2x -48% 452 587 445 362 order backlog 276 317 306 193 218 233 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Note: Order intake in Q1 2023 was significantly impacted by market review and subsequent sales ban for a competitor in Sweden,. 7
Slide 8: Increased gross margin
Increased gross margin Gross margin 60% • Gross margin increased to 38% compared to 37% in the previous quarter 50% 41% 40% 39% 38% 40% 37% 36% 37% 35% • Outlook for continued strong gross margin 30% 20% o Realizing full impact of already reduced production costs o Additional reductions in productio
Slide 9: EBITDA set to increase from current level
EBITDA set to increase from current level EBITDA MNOK margin (%) 40 38 15% • EBITDA similar as same period last year 9% 30 10% 6% 20 4% 4% 14 5% 10 8 9 -1% -1% -2% • Outlook for improved EBITDA 0% 0 o Increasing revenue -10 -2 -2 -5% -8 -10% -20 o Continued strong gross margin -16% -30 -15% o Ongoin
Slide 10: Inventory set for normalization
Inventory set for normalization Illustrative development of production level vs order intake Order intake Production Adapting production levels to normalize inventory, maintaining flexiblity to scale up volume Production ramp-up while market Strong order intake softened increase leads to new product
Slide 11: Agenda: Market development
Agenda Market development 11
Slide 12: Challenging vehicle sales in core markets
Challenging vehicle sales in core markets Plug-in vehicle sales, Q1-24 vs Q1-23 25% 17% 17% 7% 5% 2% -5% -9% -20% Norway Sweden Switzerland Denmark Benelux UK France EU Germany 7% decline in core markets Source: ACEA. Plug-in vehicles - Battery Electric Vehicles (BEV) and Plug-in Hybrid Electric Veh
Slide 13: European vehicle sales in perspective
European vehicle sales in perspective Passenger car registrations, million1 EV Non-EV 15.6 15.6 15.8 Combined 15.1 14.2 13.0 COVID 12.8 12.3 12.0 11.8 11.3 Still ~20% below 14.0 14.9 15.3 15.2 15.2 10.6 9.5 8.7 9.8 pre-Covid normal 2.6 3.0 2.3 1.4 0.2 0.2 0.3 0.4 0.6 ’13A ’14A ’15A ’16A ’17A ’18A ’1
Slide 14: E-mobility in perspective
E-mobility in perspective EV share of vehicle fleet ~15% ~50% ~5% ~85% ~100% Category Innovators Early adopters Early majority Late majority Laggards Norway 29% Nordics 14% Europe 4% Global 3% EV share of total vehicle fleet figures from IEA - Global EV Data Explorer, April 2024 14
Slide 15: Stricter EU regulation from 2025 will drive EV sales
Stricter EU regulation from 2025 will drive EV sales Required average CO2 emission for new vehicle fleets Sales by technology Other 140 2021-24 target: Stricter regulation from 2025 Battery electric vehicles 119 g/km 120 Average CO2 emission values (WLTP) 2025-29 target: -15% from 2021 100 100% 100%
Slide 16: Affordable vehicles dominate in Europe
Affordable vehicles dominate in Europe 2023 new vehicle sales in Europe (million units) Luxury + Premium Mid Entry ~75% of vehicles sold in ~6.0 ~4.3 Europe are affordable, ~2.5 smaller vehicles, with few ~0.7 ~1.3 current EV alternatives ~0.0 A B C D E F e.g. Fiat 500 e.g. VW Polo e.g. VW Golf e.g.
Slide 17: Rising number of EV models entering the more affordable segments
Rising number of Upcoming EV model launches EV models entering Fiat 500e A Nissan Micra ~75% of Honda E VW ID.2 the more affordable vehicles sold B BMW i1 in Europe Renault 5 Toyota bz2 VW E-golf C Hyundai A to C class market Cupra Raval Ioniq 3 Audi A3 e-tron Renault E Hyundai BMW iX1 D Ioniq 6 Kia
Slide 18: Electric driving is the rational economic choice
Electric driving is the rational economic choice Total Cost of Ownership (TCO) – Internal Combustion Engine (ICE) vs Battery Electric Vehicles (BEV) Standard range (~ 330 km) TCO (€/100 km) ~2022 ICE TCO parity 60 BEV +10% -10% -16% 50 ICE advantage BEV advantage 40 Long range (~500 km) ~2024 40 TCO
Slide 19: Market for AC chargers to 4x by 2030
Market for AC chargers to 4x by 2030 Market size, #units AC chargers sold per year ~4x Germany, UK, France 7.8 mill Other Western Europe CAGR ’23-’30: Core markets +23% 4.6 +23% 2.1 mill 2.4 1.1 0.6 +7% 0.4 0.7 2023 2030 Source: Market study commissioned from 3rd party professional consultants 19
Slide 20: Agenda: Strategy and outlook
Agenda Strategy and outlook 20
Slide 21: EU grid investment need by 2030
EU grid investment need by 2030 Smart charging reduces €41bn upgrade costs to prepare European power grids for (€900 per EV) the EV transition Source: ACEA – European EV charging Infrastructure Masterplan, March 2022 21
Slide 22: Zaptec's value proposition
Zaptec’s value proposition Serving both EV drivers and businesses investing in electrification with; Safe, high-quality Industry-defining smart Cost-efficient, Optimized charging in products with award- charging technology scalable solutions strained grids1 winning design 1. With load balancing and
Slide 23: Clear strategic roadmap for value creation
Clear strategic roadmap for value creation 3 Continue expansion in major markets 2 Finalise product- market fit 1 Build upon strong momentum in core markets 23
Slide 24: Already among the largest in Europe
Already among the largest in Europe ~1742 Leading AC charger manufacturers, ~153 EV charging revenue, EURm, 2023 EV charging specialist ~124 Electro / energy OEM ~1163 Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Competitor 6 Competitor 7 Competitor 8 Competitor 91 Competitor 10
Slide 25: Clear market leader in the Nordics
Clear market leader in the Nordics Top 5 players and degree of consolidation in core markets, market share per company1, 2023 Top 5 players and degree of consolidation per country, Strongholds, market share (%) per player, 2023 1 Pro segment Go segment 100% 100% 100% 100% 100% 100% 100% 100% 5-10% 5
Slide 26: Positioned across key European markets
Positioned across key European markets Top 20 European vehicle markets, ranked by plug-in sales, million units, 2023 Germany 0,7 2,8 France 0,5 1,8 United Kingdom 0,5 1,9 Belgium 0,2 0,5 Sweden 0,2 0,3 Netherlands 0,2 0,4 Italy 0,1 1,6 Norway 0,1 0,1 Spain 0,1 0,9 Denmark 0,1 0,2 Switzerland 0,1 0,3
Slide 27: Finalising European product-market fit
Finalising European product-market fit Zaptec Pro Product-market fit Q1 2024 UK compliance: Completed Q1’24 Zaptec Zaptec Pro Go French version: Completed Q1’24 Zaptec Go Other Europe OCPP native: Completed Q1’24 Upcoming product launches aimed at European mass-market on track Note: Compliance overv
Slide 28: Gaining momentum in Central Europe
Gaining momentum in Central Europe Revenue MNOK 30 +434% 25 20 15 +684% 10 5 0 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 • Strong momentum, signed 450+ • Achieved full product-market fit post • French Zaptec Pro launched in installers and clients Zapte
Slide 29: Summary
Summary • Dominant in the Nordics, 3rd in Europe • Strong performance in challenging market • Adapted production for inventory normalization • Ongoing cost focus • Building upon strong position in core markets • Expanding in new markets • Upcoming European product launches on track Outlook for susta
Slide 30: Disclaimer
Disclaimer This presentation contains statements relating to our future business and/or results, which includes certain projections and business trends that are “forward-looking.” Forward-looking statements do not guarantee future performance and involve risks and uncertainties. Actual results may d