Company announcement no. 43-23
Copenhagen, Dec 21, 2023

The announcement contains inside information.

Guidance 2024

Revenue DKK 300-325 million
EBITDA DKK 14-18 million

Shape Robotics anticipates significant growth in 2024. The company expects to maintain the exponential revenue growth experienced thus far, continuing a trend since 2020. Additionally, despite anticipated large investments in development, Shape Robotics foresees a substantial increase in the EBITDA result.

Assumptions and Conditions

This growth is primarily expected to be driven by existing framework agreements in the main market of Romania, where the company is delivering STEAM technology for the ambitious "SmartLab" project funded by the EU's Recovery and Resilience Funds and local government.

After Romania, Poland holds the highest priority for the company. The Polish government is anticipated to unveil "Futurelabs 2.0" in spring 2024, allocating budget in the range of €250-350 million (DKK 1.9 - 2.6 billion) only for this initiative (several STEAM inititatives are expected to start in 2024, and the budgets and timelines are not concluded yet).

Commencing in June 2023 (announcement 29-23), Shape Robotics initiated the acquisition of a Polish Ed-Tech company, with the goal of establishing a market presence in Poland ahead of the "Futurelabs" launch and expanding its product portfolio in Edtech. The board of directors at Shape Robotics, along with the investors of Skriware, recently finalized the signing agreement for the takeover, set to be effective on January 1, 2024. Consequently, a conservative approach has been adopted for both revenue and expected costs in the guidance for 2024, considering the outcomes from the Polish market. These estimates will be adjusted as the projects unfold in Poland, providing a more profound understanding of the actual market share.

The guidance also encompasses expected results from the newly established subsidiary in the Republic of Moldova, which has ambitious projects aimed at elevating the country's digitization level and preparing for EU membership in the coming years. Shape Robotics anticipates being among the market leaders in Romania, Poland and the Republic of Moldova.

In other growth markets, the company anticipates favorable progress, especially in the sales of its proprietary modular robot system, "Fable." The currently prioritized growth markets encompass Bulgaria, Spain, Australia, the Netherlands, the United Arab Emirates, and the United States.

Working capital

The projected growth and strategic direction for 2024 necessitate an increase in working capital to support investments and meet both current and anticipated orders in the pipeline. With a focus on the dynamic Polish market, where rapid expansion is highly probable, maintaining a robust working capital is imperative. Our observation indicates a seasonal pattern in order placements, often in high-volume bulks, underscoring the need for sufficient inventory to meet the demands of our customers and distributors.

In addition to addressing current operational needs, the company is committed to further enhancing the product offerings for future growth. This initiative involves expanding the "Skriware Academy," which was acquired with Skriware, into a comprehensive ecosystem for classrooms. The envisioned ecosystem will leverage AI to optimize learning efficiency and lecture preparation, presenting a unified academy with freemium options and potential upselling or subscription services.

In preparation for these ambitious endeavors, the Board of Directors and management are laying the groundwork for a capital raise through a rights issue in early 2024, with a minimum target in gross proceeds in the amount of DKK 30-35 million.

Strategy

The guidance, expected results, and investment in broadening the product offering are integral components of the company's strategy for the coming years. The management anticipates unveiling a 3-year strategy early in 2024. The company will issue a company announcement as soon as the strategy is approved by the Board.

[Company Announcement]

Additional information and investor relations

Jeppe Frandsen,Chairman

André Fehrn, CEO
Email: ir@shaperobotics.com
CVR-nr. 38322656
www.shaperobotics.com