Slower than expected ramp up weighed on H1 2023 results

New assembly partners to enable improvement of operating results

Operational highlights H1 2023

• First Ebusco 3.0 buses from serial production delivered, showing strong vehicle performance
• Strong commercial momentum, with orders won from Qbuzz, SWEG, and Keolis amongst others
• First nine buses ordered through the French public procurement agency UGAP
• Tender activity in full swing, with traditionally most closing dates in the second half of the year
• Trials with new assembly partners completed, first Ebusco 3.0 buses successfully manufactured through partners

Financial results H1 2023

• Revenue over the first half of 2023 arrived at €41.7 million
• EBITDA[1] loss of €43.5 million
• Result for the period of negative €35.8 million
• Good order book increase with 320 buses (net) to a level of 1,794[2] (of which 677 Ebusco 3.0’s)
• Ebusco achieved a 4.7% market share in European Electric buses in 2Q23[3]

Liquidity and funding

• In order to finance short-term liquidity requirements, Ebusco secured a two-year financing facility of €41.5 million, in addition to its already existing bank guarantee credit facility of €50 million
• In view of the acceleration of production with partners, Ebusco sees further opportunities to streamline its working capital and cost base

Outlook FY 2023

• As per the update provided on the 27th of July 2023, Ebusco expects to record a significant improvement in the operating result for the second half of 2023 compared to the first half of the year and a significant increase in sales over the full year 2023 compared to 2022. In 2024, the company expects to be EBITDA positive.

Deurne, 9 August 2023 – Ebusco (Euronext: EBUS) today provides insight into its figures for the first half of 2023. With an adjusted manufacturing strategy, the company targets an improved result for the second half of 2023.

In the first half of 2023, Ebusco delivered fewer buses than expected. Although the company recently delivered the first Ebusco 3.0 buses from serial production, showing strong operational vehicle performance, Ebusco was unable to reach the production output it was aiming for. Production continued to be impacted by, amongst others, supply chain constraints and a shortage of skilled labour. As a result of these circumstances, the company faces delays due to rework. These effects, and provisions for late delivery penalties, negatively impacted profitability.

To mitigate the above-mentioned challenges, Ebusco has actively sought to increase production capacity by working with bus assembly partners in Europe and Asia. With respect to Asia, as we see with the Ebusco 2.2, supply chains have recovered much faster compared to Europe while the assembly partners also have an experienced workforce available. In conjunction with an existing supplier, Ebusco will also increase its casco output. The proprietary parts required for the casco output will be supplied from Deurne and Rouen.

The measures outlined above in combination with the financing facility up to €41.5 million enable Ebusco to continue its growth path while working on its operational performance improvement and working capital efficiency at the same time.

Peter Bijvelds, CEO and Founder of Ebusco, explains: “With no doubt we can state that the first half of 2023 was disappointing. Mainly due to the impact of supply chain disruptions and skilled blue-collar shortages, our performance, unfortunately, fell short of expectations. Although we proudly delivered the first Ebusco 3.0 buses from serial production, and strengthened our order book with repeat orders, the landscape in which Ebusco operates remains challenging.

We have taken several important steps to mitigate the challenges we faced in the first half of 2023, of which the decision to work with assembly partners for the Ebusco 3.0 is the most relevant. This step will not only improve our delivery reliability and gross margin in the short term, but it also enables us to facilitate further growth of our order book in the long term.

I am fully convinced that, by broadening production capacity and adjusting the supply chain, we take the right measures to improve performance in the second half of 2023.”

Click here to read the full press release.

[1] EBITDA is defined as earnings before net finance expenses, tax, depreciation and amortization. It can be calculated by excluding the depreciation and amortization expenses from the operating result in the interim condensed financial statements.

[2] These orders can be divided into three categories: fixed (669), call off contracts (229), additional options within won contract (896).

[3] Chatrou CME Solutions Alternative Drivelines for City buses Q2-2022 / Q2-2023.