Ebusco N : Strong revenue growth following high order intake in 2H21 - 220811 Press release Ebusco Half Year results 2022

Deurne, 11 August 2022

Strong revenue growth following high order intake in 2H21

Growth of the organisation in line with medium term objectives

Financial Highlights H1 2022

• Revenue showed strong recovery to €37.1 million following high order intake in 2H21
• Gross margin improved to 16.2% (+10.7%-points) despite several headwinds
• EBITDA of negative €15.2 million due to continued ramp-up
• Result for the period of negative €14.1 million
• Cash and cash equivalents of €151.4 million to execute roll-out plan
• Orderbook1 YTD at 1,307 buses with continued high tender activity

Operational Highlights H1 2022

• Successful retention and recruitment of employees as the headcount more than doubled
• Capacity ramp up for Ebusco 3.0 production and Ebusco 2.2 deliveries for 2H22 on track
• First Ebusco 3.0 bus 18 meter successfully put into the homologation process
• First tenders entered in North America and first right-hand drive arrived in Australia
• Letter of Intent (LOI) signed for new facility in France in July and first equipment ordered

Outlook FY 2022

• Management reiterates that the order intake, tender activity and anticipated shipments and deliveries are expected to result in a sharp revenue increase in 2022

Peter Bijvelds, founder and CEO: "The performance of Ebusco has been very encouraging with especially a strong order intake YTD. Besides the large Deutsche Bahn framework contract announced in April we welcomed new customers in Sweden and Spain.

The reception of the Ebusco 3.0 bus has been positive, supported by the unrivalled low energy consumption of our revolutionary design. The data from the Ebusco 3.0 buses on the road in Munich as well as from independent testing authorities are consistently better than anticipated. Another important milestone was reached as the first Ebusco 3.0 18 meter bus has successfully entered the homologation process.

We also continue the expansion of our company as evidenced by the growth in headcount despite the tight labour market. While we recognise this comes at the expense of short-term profitability, we continue to invest in anticipation of future growth and to provide optimal service to both existing and new clients alike. An important step in our expansion strategy was the Letter of Intent we signed in July for a production facility in the city of Rouen, France. The local production and assembly facility should enable us to meet the growing demand for our Ebusco 3.0 buses and improve our position in the French and Southern European markets.

1 These orders can be divided into three categories: fixed (325), call of contracts (253), additional options within won contract (729)

and includes contract assets

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Although the focus has been on getting all components in the warehouse on time, we have also invested significant time and effort in further optimising our supply chain with a strong focus on identifying dual suppliers to lower risks and scale advantages to lower cost of goods sold.

Looking ahead, as we have said before, we are not immune to the geopolitical uncertainty and the continued strain on the global supply chain. Uncertainty in the supply chain continues, we have to cope with delayed deliveries and higher costs. We are making every effort to stick to agreed delivery deadlines with our clients which for example leads to higher transport costs when parts are delivered by air instead of sea.

Despite these uncertainties, management reiterates that based on the order intake, tender activity and anticipated shipments and deliveries are expected to result in a sharp revenue increase in 2022, assuming the current geopolitical, supply chain and COVID-19 situation does not deteriorate further."

(in EURm)		H1 2022		H1 2021		Change %
		Unaudited		Unaudited
Revenue		37.1		5.2		613%
Gross Profit	6.0	0.3	1,900%
Gross margin (%)		16.2%		5.5%		10.7%-points
EBITDA	(15.2)	(9.4)	(62)%
Result for the period		(14.1)		(5.8)		(143)%
Net debt / (Cash), ex lease liabilities	(150.9)	57.3	363%
Order book (# buses)		1,307		139		840%
Headcount incl. contractors	492	221	123%

Revenue

Driven by the strong post-COVID order intake in the second half of 2021, the revenue over the first half of 2022 arrived at €37.1 million, an increase of 613% compared to the same period last year (€5.2 million), which was heavily impacted by COVID-19.

The revenue in the first half of 2022 was mostly derived from the shipment and delivery of buses for concessions in the Nordics and the shipment of a first batch of buses for Berliner Verkehrsbetriebe from our assembly plant.

Due to the fact that the majority of buses are generally ordered and delivered in the second half of the year, our annual revenues are weighted towards the second half of the year.

Gross profit

The gross profit over the first of half of 2022 arrived at €6.0 million compared to €0.3 million over the same period last year. The gross margin over the last six months arrived at 16.2% an increase of 10.7%-points compared to H1 2021.

Although this reflects an increase compared to last year, the gross margin was impacted by a high percentage of revenues being generated in the Nordics. Similar to 2H22, the transportation costs, currency movements and component cost increases had an impact on the gross margin in the first half of 2022.

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Operational expenditures

Operational expenditures increased to €21.2 million from €9.7 million last year (+119%) as Ebusco continues to invest in the ramp up of the organisation. We have added more than 25 people on average per month more than doubling the headcount.

As part of this ramp up, the headcount, including contractors, increased to 492 at the end of June 2022 compared to 221 at HY 2021. This underpins the success of Ebusco in attracting and retaining talent which is required to meet the future demand.

EBITDA

Given the increase in operational expenditure and seasonality of our revenues, EBITDA arrived at negative €15.2 million in the first half of 2022.

Net result for the period

Net result for the period came in at €14.1 million negative, compared to negative €5.8 million in H1 2021. The net result for H1 2022 included a tax credit of €4.3 million, which equals an effective tax rate of 23.4%.

Financial position

Investments in plant, property and equipment (PPE) remained modest in the first half of 2022 at €2.2 million mostly focused on additional tooling and equipment in our Deurne facility.

The investment in intangible assets reflects the final development of the Maritime Energy Container (MEC) which received type approval for maritime use. The MEC concept can now be commercialised with a focus on inland shipping.

Compared to year end 2021, net working capital2 increased with €26.1 million to €67.4 million. The increase is for the largest part related to the higher production activity resulting in contract assets increasing by €39.1 million. Inventories increased with €2.8 million as we continue to build safety stock to offset supply chain issues. Trade receivables declined by €10.9 million due to strong collection of receivables.

As a result of the increase in working capital, capex and result for the period in the first half of 2022, cash and cash equivalents on 30 June 2022 declined to €151.4 million compared to €207.9 million at year end 2021.

Order book

Next to the orders we already received when we published our annual results, including the framework contract for Deutsche Bahn, the order book continued to grow further year-to-date.

Amongst others we received significant orders from new clients Svealandstrafiken in Sweden for 23 Ebusco 3.0 buses (18 meter) and Àrea Metropolitana de Barcelona (AMB) for 21 Ebusco 2.2 buses (12 meter). Once these buses are delivered to the client, Ebusco will have buses on the road in nine countries.

After the successful delivery of Ebusco 2.2 buses in the first half of the year we received a new order from Nobina for 19 Ebusco 3.0 buses 12 meter. This order further strengthens our position in Denmark.

2 Net Working Capital defined as: Inventories + Contract Assets + Trade Receivables + Income tax Receivables - Contract liabilities -

Trade payables

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With respect to the Deutsche Bahn framework agreement, the first buses have been ordered and have been moved from "call off" to "fixed contracts" in the order book. We see a high number of requests for information from the different Deutsche Bahn concessions, for additional buses for delivery in 2023. These requests for information relate to both new concessions for Deutsche Bahn as well as in-concession replacements.

The breakdown of the current order book by type and contract type is reflected in the table below.

Type	Fixed contracts	Call off	Options	Total
2.2 orders	205	253	645	1,103
3.0 orders	120	-	84	204
Total orders	325	253	729	1,307

Assuming no deterioration of the macroeconomic, COVID-19 and supply chain situation, 285 buses are expected to contribute to the 2022 revenue.

Tendering activity remains strong despite the deteriorating macroeconomic background and the tender pipeline continues to grow. The reception of the Ebusco 3.0 has been very strong for both the 12 meter and 18 meter versions and we are increasingly entering tenders with the Ebusco 3.0 bus. Furthermore, after starting up a regional sales organisation last year, Ebusco has entered into the first tenders in North America. Additionally, the first Ebusco 2.2 right-hand drive has arrived in Australia.

Supply chain developments

The build-up safety stock in 2021 proven to be crucial to continue the production of both the Ebusco 2.2 and 3.0 buses. Nevertheless, the supply chain continues to be erratic with delivery times and transport costs continuing to rise.

As a result, we have to utilise a significant part of our engineering capacity to find drop-in replacements and continue to incur additional costs, for example higher transport costs when parts are delivered by airfreight instead of ship freight. Furthermore, we continue to build up considerable safety stock.

Capacity increase

In our Deurne facility in the Netherlands, we continue to work towards our target of a production capacity of 500 buses annually. We have taken important steps in the learning curve as we are working on the first mass production order for 39 Ebusco 3.0 buses for our longstanding customer Connexxion. Also, the follow-up orders for the 3.0 buses are already in the operational and production planning.

To be able to meet future demand and in line with our strategic priorities for 2022, we signed a LOI for a production and assembly location in France. We will be leasing part of an existing automotive production facility in the Rouen area where we will be able to plug into the e-mobility ecosystem that has been established in the region.

The facility consists of circa 21,000 m2 which will enable the production and assembly of an initial 500 buses by the time the CKD facility has been fully equipped and staffed which is currently expected to be towards the end of 2023. The investment that is expected to be required to achieve this production capacity is €10 million spread over the remainder of this year and 2023.

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Outlook

Ebusco reiterates that based on the current, ongoing tender activity and anticipated deliveries in 2022, management expects a sharp increase in revenue in 2022 compared to 2021. However, we also reiterate that Ebusco is not immune to the ongoing geopolitical uncertainty and the continued strain on the global supply chain.

Our management priorities also remain unchanged and are focussed on:

1. Controlled expansion of our production capacity;
2. Further optimisation of our supply chain;
3. Expansion of our engineering capacity to meet client demand;
4. Further grow our existing solid order portfolio for 2023 and beyond

Ebusco reconfirms the medium-term objectives as defined during the IPO.

Webcast details

WEBCAST OF HALF YEAR RESULTS 2022

Date and time: 11 August 2022 at 10 am CET

Link: Investors.ebusco.com/webcast

Financial calendar for the remainder of the year

1 October - 10 October 2022	Closed period
11 October 2022	Trading update Q3

www.ebusco.com

Rob Stevens

Manager Marketing & Communications Tel: [phone] [e-mail]

For press images:www.ebusco.com/press/

About Ebusco

Ebusco is a developer, manufacturer, and distributor of zero emission buses and charging systems as well as a supplier of ancillary products and services to the electric vehicle ecosystem. As an innovative frontrunner in the development of electric buses, its mission is to contribute to a better living environment by driving the transition to zero emission public transportation.

Ebusco's buses currently operate in multiple countries in Europe, including in major cities such as Amsterdam, Frankfurt, and Munich. Ebusco was founded in 2012 and had a workforce of 418 full- time employees as at 30 June 2022. The company is headquartered in Deurne, the Netherlands and has, next to its production facilities in Deurne, a third-party facility in Xiamen, China.

Since 22 October 2021 Ebusco is listed on Euronext Amsterdam. For more information: www.ebusco.com

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