Otovo Q2 2024 Results

***

(1) Continued market headwinds
- Consumer macroeconomic conditions remain challenging
- Net sales are down 5% sequentially, down 27% from the same quarter last year
- Recent rise in gas prices and subsidy changes provide hope for second half of
2024

(2) Revenues increased sequentially
- 1,827 projects installed in Q2, up 13% sequentially, down 43% from the same
quarter last year
- Total operating income came in at NOK 183m, up 9% sequentially, down 43% from
the same quarter last year. Operating profit improved sequentially and year over
year on lower cost
- Operating cash flow negative NOK 88m. Cash position of NOK 334m at the end of
the quarter - sufficient to free up multiple quarters of runway if combined with
further cost reductions and portfolio transaction 
- Revenues Generated increased to NOK 240m, up 5% since the first quarter

(3) Multi-hardware strategy paying off
- Half of new customers opting for a battery and corresponding strong
development for heat pumps and EV chargers  
 - Gross Margin expanded to 22% and Gross Margin Generated to 28% demonstrating
pricing power of platform

(4) Initiating further opex reductions 
- Current cost program will deliver ~90 million in savings in Q3 on an annual
basis
- Ready to initiate additional efficiency measures to align cost with activity
levels

(5) Sales outlook comment
- Expect to see growth in sales in second half versus first half
- Disciplined marketing investments to continue to improve return on advertising
spend
- Expecting installation speed on par with previous quarters

(6) Continental Europe portfolio sales process ongoing
 - In concrete discussions with several parties

Andreas Thorsheim, CEO of Otovo, remarks on the quarter:
- The solar market has remained challenging, particularly in Scandinavia and
Spain that have represented an important part of our activities in previous
years. While we grow in other markets, that growth has not been sufficient to
make up the difference.

Otovo is ready to initiate further cost reductions in order to add to the NOK
90m annual savings expected to emerge from the previous efficiency program in
order to align costs with activity levels.


- We see that our cost program from December 2023 is being completed as planned,
but given three quarters of flat sales, we plan further efficiency measures,
adds Thorsheim.

The company is seeing sales upside in an improved customer acquisition structure
based on partnerships and improving sales conversion in some countries and aims
at maintaining scalability through the cost action.


Otovo saw attachment rates of batteries continue their upward trajectory across
all of Europe and expects more than half of systems sold to include batteries
from now on. That change is coming at the same time as solar and battery
equipment costs continue downward and installation prices follow suit. The
company is able to expand margins in this price environment.

- There is a massive technological change happening in the market, where the
astounding cost declines of solar and battery technologies allow consumers to
get more powerful systems, bigger savings and more freedom from the energy grid
for less. We believe the continuously improving tech and cost offering to
homeowners is a driving force that will push solar to new highs.


***

Please find attached the quarterly report and the quarterly presentation that
Andreas Thorsheim (CEO) and Petter Ulset (CFO), will provide at the webcast at
09:00 20 August, that can be obtained through the following link:
https://my.demio.com/ref/bygjJBcqRTF4X5bb


***


Disclosure Regulation

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Metrics used in this notice are defined in the attached financial report.


***

About Otovo: For homeowners, Otovo is the easiest way to get solar panels on the
roof, and batteries in the home. Otovo is a marketplace that organizes hundreds
of local, high quality and qualified energy installers. The company uses its
proprietary technology to analyze the potential of any home and finds the best
price and installer for customers based on an automatic bidding process between
available installers.

Follow us on investor.otovo.com for reports, financial calendar, contact details
and more.