Interim report Q3, 2023

Company Announcement no. 25-23
Copenhagen, May 12, 2023

This announcement is a summary and should be read in conjunction with Shape Robotics’ interim report for Q1 2023, published on May 12, 2023. The interim report will be available on the company’s website.

Financial highlights Q1, 2023 (Jan-Mar)

• The Company has realized a revenue of MDKK 18.9 (Q1 2022 MDKK 7.1), corresponding to a revenue growth of 166%
• Contribution Margin amounts to MDKK 6.0 (Q1 2022 MDKK 2.6)
• Contribution Margin in % YTD amounts to 31% (Q1 37%)
• EBITDA is MDKK -2.9 (Q1 2022 -2.0)

Management’s review

The Q1 2023 revenue results demonstrate the typical fluctuations inherent in the B2G market, which have been observed also in previous years. Most the company's revenue typically materializes in the latter quarters of the year.

The group realized a revenue of almost DKK 19 m in Q1, with a contribution margin of 31%.  As part of the preparations for the scale-up to come, herein also the strategic initiatives, the operational costs have also increased in Q1, following in a negative EBITDA of DKK -3 m in the period. The operational costs in the coming quarters are somewhat expected to be in the same range as in Q1, but the company expects a significant growth in revenue in the coming quarters, leading to expected EBITDA-profitability for the fiscal year 2023 (guidance of EBITDA DKK +3 to +5 m bf. non-recurring costs).

The group's pipeline possesses promising tender opportunities, organic growth, with positive quotes and forecasts from both new and existing distributors. For example, during the winter and spring, more than 1,000 schools applied for a Smart Digital Laboratory ("SmartLab") under the Romanian National Recovery and Resilience Plan, with a total allocated budget of €117m (DKK 870m), in which Shape Robotics' own or third-party distributed products are eligible for purchase. The Romanian Ministry of Education announced the list of schools eligible for funding on May 9, and next step, most likely during the summer, will be for the schools to start placing orders at integrators and distributors of solutions that meet the Ministry of Education's minimum specifications for products in a SmartLab.

Furthermore, the partnership with Samsung is also showing great promise. Besides an already confirmed new Samsung-distributor (HandyAV) that had an opening order of DKK 1.5 m, Shape Robotics recently participated in the world's largest Edtech exhibition, the BETT show in London, as an integral part of Samsung's booth, which has resulted from the development of Fable Blockly as an integration of Samsung's interactive displays.

The exhibition was a huge success and generated many promising leads in Europe, Asia, and South America.

Finally, we are also focusing on countries like Bulgaria, Poland and the Republic of Moldova, and we have high expectations for growth in these markets in the coming months and years.

Outlook 2023

• The Company expects the full year revenue 2023 to be in the range of MDKK 130 to 140 with an EBITDA of MDKK +3 to +5 (bf. non-recurring costs).

Non-recurring costs are related to one-off costs related to the process of up-listing the company on Nasdaq Main Market Copenhagen.

Sign up for the live presentation and Q&A
Inderes; May 12, 11:00 here
Stokk.io; May 15, 10:00 here

Additional information and investor relations
André Fehrn, CEO Shape Robotics A/S
Tlf.  (+45) 2444 8556
Email: [email protected]
Rugmarken 18, 3520 Farum, Denmark
CVR-nr. 38322656
www.shaperobotics.com

Certified advisor contact
Grant Thornton