The Board of Directors of Otovo ASA has approved a new cost program that is
estimated to reduce costs by NOK 200-225m per year. As part of the program, the
number of employees will be reduced to around 200, from a total of 366 at the
beginning of this quarter (down ~46%).

The cost reduction measures will encompass all countries and functions. This
will bring costs down to a suitable level for current installation volumes, as
communicated on 20 August (Q2 earnings release). 

The selection of affected employees will happen in September, with a majority of
departures occurring in the coming weeks, and with severance payments expected
during the third quarter. The bulk of cash improvements from the program are
anticipated to have taken effect by end of year 2024. 

Approximately NOK 150m of the 200-225m annual savings will result from
reductions in employee count, affecting payroll and capitalized R&D. An
additional NOK 50-75m will be saved in general & administrative costs and
marketing.

For comparison