ALGAU Gaussin

Revenues and license fees: €20.5 million versus €3.0 million a year earlier

EBITDA of -€7.4 million

Operating result of -€9.6 million

Consolidated cash position of €14.3 million at October 15, 2021

Firm order book of €98 million, including licenses, as of September 30, 2021

GAUSSIN (EURONEXT GROWTH: ALGAU - FR0013495298) announces that it has held a meeting of its Board of Directors on October 26, 2021 and that it has approved the consolidated financial statements for the six months ended June 30, 2021.

Opinion of the auditors

The auditors' opinion is as follows:

Opinion

We conducted our review in accordance with professional standards applicable in France and with the professional guidance issued by the French Institute of Statutory Auditors (Compagnie Nationale des Commissaires aux Comptes) relating to this engagement.

…/…

Based on our review, nothing has come to our attention that causes us to believe that the accompanying financial statements do not present fairly, in all material respects, the financial position of the Group as of June 30, 2021, and the results of its operations for the period then ended in accordance with the accounting rules and methods applicable in France.

The first half of 2021 was marked both by strong growth in sales and licensing revenues (+93% on a pro forma basis and +578% on a reported basis), which reflects the rapid ramp-up of the GAUSSIN Group's commercial activity and by significant R&D development costs for autonomous, hydrogen and electric vehicles, robotic systems, and ON ROAD vehicles. Investments linked to the launch of new vehicles are, by definition, non-recurring.

Results for the first six months of the year also reflect the successful integration of METALLIANCE and the initial realization of synergies between the two companies.

Finally, international deployment has expanded significantly with the creation of the North American subsidiary and the structuring of the Asia-Pacific subsidiary. It is in this region of the world that the most recent license was signed (not yet accounted for) - Australia and New Zealand – demonstrating success of the strategy to accelerate adoption of GAUSSIN’s technology worldwide.

1. A half-year rich in developments and future investments

Key events from January to June 2021

• Creation of GAUSSIN North America and structuring of the Asia-Pacific subsidiary

At the beginning of January, GAUSSIN created its North American subsidiary which will lead its commercial deployment across the Atlantic (see PR on January 4, 2021). This new entity will accelerate the marketing of GAUSSIN electric and hydrogen vehicles following the strategic partnerships signed with Magna, Plug Power and Robotic Research.

The Asia-Pacific subsidiary, headquartered in Singapore (see PR on January 14, 2021), is responsible for the deployment of GAUSSIN ranges throughout the countries of the region.

• First participation in the Dakar Rally Raid and preparation of the 2022 edition

In January 2021, GAUSSIN took part in the world's biggest rally-raid, the Dakar, as a partner of the Swiss team Rebellion (see PR on 15 January 2021). From the 2022 edition until at least 2024, GAUSSIN will be the first team in the world to compete in the famous rally with a 100% hydrogen truck. The group will participate with its own hydrogen vehicle, which will be specially designed for the event. This hydrogen racing vehicle will be unveiled on November 9, 2021.

• Winner of the automobile modernization fund

GAUSSIN has been selected by the Ministry of Industry as the winner of the call for projects to "support investments in the automotive industry" for its NewLine project (see PR on February 18, 2021). This recognition has enabled the group to benefit from a grant of €993,786, intended for the modernization of the GAUSSIN site at Héricourt.

• Launch of "Zero-emission Yard Automation"

At the end of March, the group presented "Zero-emission Yard Automation," its new solution of autonomous hydrogen tractors equipped with a robotic arm, intended for major players in logistics and e-commerce (see PR on March 23, 2021). See the video of the vehicle.

• Bolloré Ports and Maersk Group order 36 APM® 75T HE

GAUSSIN has received a firm order from CIT Abidjan, a port terminal jointly operated by Bolloré Ports and APM Terminals, a subsidiary of the Maersk group, for 36 APM® 75T HE electric tractors, 24 Powerpacks and 6 36-channel charging stations (see PR on April 22, 2021). This historic order represents a turnover of €9.9 million.

• GAUSSIN enters the hydrogen road truck market

The group has presented the world's first "skateboard" for class 8 tractor or carrier trucks from 18t to 44t, hydrogen or all-electric, a rolling, versatile and modular platform designed for the various players in the market (see PR on April 27, 2021). The solution is aimed at traditional truck manufacturers as well as new entrants, but also at bodybuilders and autonomous navigation software players. Access the video presentation of the skateboard and the technical presentation.

• Partnership with HYNAMICS to conduct 4 "Moonroad" pilot projects

GAUSSIN and HYNAMICS, a subsidiary of EDF, have signed a partnership agreement for the implementation of four pilot projects to demonstrate the efficiency and productivity of GAUSSIN's 100% autonomous and "dual energy" transport solutions, running on hydrogen and electricity (see PR on May 25, 2021). The project will be deployed at the end of 2021 and during 2022 and 2023.

• Partnership with MICROVAST in new generation batteries

This partnership aims at integrating MICROVAST's new generation of batteries for GAUSSIN's electric and hydrogen skateboard applications (see PR on June 8, 2021).

• GAUSSIN chooses the NVIDIA DRIVE AGX platform for its autonomous trucks

GAUSSIN has chosen the NVIDIA DRIVE AGX Xavier™ platform to host its centralized intelligent driving system, designed to transform the truck industry and accelerate the transition to zero-emission freight transportation (see PR on June 17, 2021). The computational capacity of the NVIDIA DRIVE AGX Xavier™ allows GAUSSIN to centralize its skateboard architecture.

• Creation of 2 assembly lines in Saint-Vallier, METALLIANCE site

The group has announced the creation of two assembly lines for ATM® (logistics) and APM® (port) vehicles in Saint-Vallier in Saône-et-Loire, on a site adjacent to that of its subsidiary METALLIANCE (see PR on June 24, 2021). They are scheduled to be commissioned by the autumn. Eventually, their annual production capacity will reach 450 to 500 vehicles with a workforce of 40 to 50 people on site.

Highlights since June 30, 2021

• PLUG POWER places first order for ATM-H2 hydrogen tractors

Plug Power placed an order in mid-August (see PR of August 16, 2021) for 20 hydrogen-powered fleet tractors (ATM-H2), which will be deployed at Plug Power's existing customers in North America. Deliveries will begin in November 2021.

• New electric and hydrogen solutions for marine and pleasure boating

GAUSSIN presented its clean, ecological and innovative propulsion and power solutions for the marine and nautical industries during the Monaco Yacht Show 2021 (see PR of August 31, 2021).

• METALLIANCE: order for 16 mobile underground machines in Great Britain

This order for 16 underground mobile machines (see PR of September 1, 2021) is for the Southern section of the High Speed 2 project in Great Britain. Deliveries are scheduled between March 2022 and April 2023.

• License granted to Nexport covering Australia and New Zealand

This exclusive 20-year license is granted to NEXPORT Zero Emission Transport (see PR of September 22, 2021) to assemble and supply zero-emission vehicles locally in Australia and New Zealand.

• Strategic partnership with HRS to supply 36 hydrogen stations

This partnership with HRS-Hydrogen-Refueling-Solutions (see PR of September 30, 2021) provides for the supply of 36 HRS hydrogen stations between 2021 and 2026, intended to accompany the deployment of GAUSSIN's turnkey hydrogen mobility solutions, for on-road and off-road applications. As part of the agreement, HRS has subscribed to an increase in GAUSSIN's capital for an amount of €7 million in cash.

• Bolloré Ports orders 2 electric port tractors for the Freetown terminal

This new order from Bolloré Ports for 2 APM® 75T HE electric port tractors, 4 POWERPACK® HE and a 6x4 multi-load station (see PR of October 14, 2021) is intended for the port terminal of Freetown in Sierra Leone.

• Gaussin wins the Dubai World Challenge for autonomous vehicles

For the second time in a row, the Group wins the Dubai World Challenge 2021 autonomous vehicle competition. GAUSSIN entered the competition in consortium with NEOLIX China, the Chinese leader in autonomous mobility for last-mile goods delivery on public roads. GAUSSIN and NEOLIX will share the prize of $1 million dollars offered to the winner (see PR of October 27, 2021).

2. Revenues and license fees up 93% (pro forma) to €20.5 million from €3.0 million a year earlier

Sales figures

The GAUSSIN Group achieved a consolidated turnover of €19.9 million during the first half of 2021, compared to €3.0 million on June 30, 2020, i.e., an increase of +93% pro forma and +560% on a reported basis, reflecting the acquisition of METALLIANCE in July 2020.

The logistics business, which includes clean, fully electric and hydrogen vehicles (ATM, TSBM and MTO ranges), generated revenues of €2.8 million, compared with €2.4 million for the six months ended June 30, 2020, representing growth of +15%.

• Revenues for the first half of 2021 include the delivery of 6 ATMs to BLYYD and 5 self-propelled vehicles (tanks) to EURODISNEY.

The port activity, which serves operators of major ports around the world with the range of automatic container transport vehicles (AGV PERFORMANCE, AIV REVOLUTION and APM 75T AUTONOMOUS) and with drivers (APM 75T), Power Pack Full Elec batteries, as well as Docking Stations, generated revenues of €2.6 million in the first half of 2021, compared with no revenues at June 30, 2020.

• Revenues for the first half of 2021 reflect the delivery of 7 APMs and 7 TT trailers to CENTREPORT in New Zealand.

And road works generated a turnover of €14.1 million for the six months ended June 30, 2021.

Licenses

For the first half of 2021, the Group has recognized license revenues of €0.6 million related to the license signed with STELS. On September 22, 2021, GAUSSIN announced that it had signed an exclusive 20-year license with NEXPORT covering its electric and hydrogen logistics vehicles and PowerPacks in Australia and New Zealand. The contract includes an initial fee of €10 million that will be accounted for in the second half of 2021 as license revenues.

This new partnership advances the strategy implemented by GAUSSIN to enhance its technological expertise. This strategy enables GAUSSIN products to be rapidly deployed internationally, both for initial sale and maintenance.

3. Group results for the first half of 2021

Consolidated income statement of the GAUSSIN Group - Part 1 € in thousands 1st sem2021 1st sem2020 Changein K€ Changein %   Turnover

19,943

 

3,020

 

16,923

 

560

%

licensing revenues

540

 

-

 

540

 

100

%

Turnover and licensing revenues

20,483

 

3,020

 

17,463

 

578

%

  Turnover

19,943

 

3,020

 

16,923

 

560

%

Production left in stock

(2,106

)

(59

)

(2,047

)

3,469

%

Self-constructed assets

3,611

 

650

 

2,961

 

456

%

Total activities

21,448

 

3,611

 

17,837

 

494

%

  Production costs

(8,203

)

(1,760

)

(6,443

)

366

%

Operating margin

13,245

 

1,851

 

11,394

 

616

%

  Other products and expenses

(21,225

)

(7,546

)

(13,679

)

181

%

licensing revenues

540

 

-

 

540

 

100

%

EBITDA

(7,440

)

(5,695

)

(1,745

)

31

%

  Depreciation charge net of reversals

(2,192

)

(1,262

)

(930

)

74

%

EBIT

(9,631

)

(6,957

)

(2,675

)

38

%

  Extraordinary income/loss

(79.00

)

192.50

 

(272

)

(141

%)

Operating profit/loss

(9,710

)

(6,764

)

(2,946

)

44

%

  Financial profit/loss

(143

)

(263

)

120

 

(46

%)

Profit/loss before tax

(9,853

)

(7,027

)

(2,827

)

40

%

Note: H1 2020 does not include the METALLIANCE sub-group (integration on July 1, 2020).

• EBITDA amounted to -€7.4 million.

The decrease in EBITDA between H1 2020 and H1 2021 amounts to €1.7 million.

Overall, the loss for H1 2021 is mainly related to non-recurring research and development costs for the Group's new projects (road skateboard, hydrogen vehicles, robotic arm, etc.), as well as to consulting fees intended to support and intensify the development of the licensing activity.

• The operating result amounts to -€9.6 million.

After taking into account operating allowances and reversals, i.e., -€2.2 million, the operating result amounted to -€9.6 million, compared to -€7.0 million for H1 2020.

• The net result of the integrated companies before taxes is -€9.9 million against -€7.0 million for H1 2020

Consolidated income statement of the GAUSSIN Group - Part 2 € in thousands 1st sem2021 1st sem2020 Changein K€ Changein %   Net profit/loss of integrated companies before tax

(9,853

)

(7,027

)

(2,827

)

40

%

  Income taxes

(1

)

-

 

(1

)

100

%

Net profit/loss of integrated companies

(9,854

)

(7,027

)

(2,827

)

(40

%)

  Share in equity affiliates

-

 

(516

)

516

 

(100

%)

Charge/Reversal Goodwill

(156

)

(34

)

(122

)

359

%

Net profit/loss of the consolidated entity

(10,010

)

(7,577

)

(2,433

)

(32

%)

  Minority shareholdings

(4

)

-

 

(4

)

100

%

Net profit/loss (Group share)

(10,014

)

(7,577

)

(2,437

)

(32

%)

• Net income was -€10.0 million compared to -€7.6 million for H1 2020.

• Cash and cash equivalents reached €14.3 million on October 15, 2021

The Group had cash of €14.3 million as of October 15, 2021. Following a capital increase completed in October 2021, the Group received €12.2 million, of which €7 million was subscribed by the company HRS (see PR of September 30, 2021).

• The Group's debt and borrowings are relatively stable

The Group's total borrowings amounted to €25.6 million as of June 30, 2021, compared to €25.4 million as of December 31, 2020, and consisted of €14.5 million in loans, €7.2 million in BPI advances, of which €5.4 million is repayable in the event of commercial success, and €2.1 million in restatement of leased equipment.

4. 44% increase in backlog to €98 million at September 30, 2021

The GAUSSIN Group's order book, excluding royalties on future sales, increased 44% since December 31, 2020, and stood at €98 million as of September 30, 2021.

Order book 30 September 2021

31 December 2020

€ in thousands

In

%

€ in thousands

In

%

Logistics

40,007

41

%

37,279

55

%

Ports

10,524

11

%

2,585

4

%

Airports

1,009

1

%

1,009

1

%

METALLIANCE

36,449

37

%

25,812

38

%

License

10,000

10

%

1,200

2

%

Consolidated order book

97,989

100

%

67,885

100

%

Backlog as of September 30, 2021 includes:

- 144 ATMs from BLYYD, which will be delivered over the next 5 years; - 20 ATM hydrogen for PLUG POWER; - 3 autonomous AGVs from PRB (Produits de Revêtement du Bâtiment); - 1 tanker for TOTAL; - 38 APM 75T HE harbour tractors (hot climate models) for BOLLORE; - 6 AMDT FULL ELEC vehicles for QATAR AIRWAYS CARGO, intended for the transport of airport Cargo pallets with a preferential right for 50 additional units; - The order book of METALLIANCE amounts to €36.1 million. It includes an order for 16 mobile underground machines for the Southern section of the High Speed 2 project in Great Britain. METALLIANCE will supply the vehicles to SKANSKA, COSTAIN and STRABAG (SCS), on behalf of HS2 (see PR of September 1, 2021); - The sale of an exclusive license to NEXPORT for an amount of €10 million (see PR of September 22, 2021).

As the Group communicates on an order book that extends over a long period, there may be either a time lag, which does not affect the order book, or total or partial cancellations linked to customer activity, which would then have an impact on the Group's activity, results and financial situation. It should also be noted that, in general, the review of the order book is not part of the statutory auditors' duties.

5. Promising prospects driven by the licensing strategy and the fast-growing hydrogen vehicle market

The Global Licensing Program

The GAUSSIN Group is rolling out the Global Licensing program, the objective of which is to build a worldwide network of licensees for the local manufacture of all the Group's technologies. Initiated in 2018 and developed in 2019, this strategy gained traction in 2020 and 2021 with the signing of a dozen licenses with leading players:

• ST Engineering Land Systems (STELS) to manufacture and market the PERFORMANCE® FULL ELEC "Ultra Fast Charge" AGV in Singapore. The 20-year contract enabled STELS to win the tender for the first batch of 80 vehicles for the PSA Port Singapore Authority's Tuas Port project.

Following this success, in September 2019, GAUSSIN granted eight new licenses to STELS, including four exclusive licenses for the territories of Saudi Arabia, Thailand, the United Arab Emirates and South Korea and four non-exclusive licenses for the territories of Indonesia, Qatar, the Philippines and Oman.

• The State-owned QATAR RAILWAYS COMPANY (QRC), for the Fleet Management Platform (FMP) autonomous vehicle fleet management program, for applications in the semi-private sector, such as the Smart City Lusail project, the 2022 FIFA World Cup, transportation between metro stations and stadiums, or Doha University.
• The Qatari company AL ATTIYA MOTORS for its electric vehicles dedicated to seaports, airports, logistics and smart cities. The contract includes not only the initial entry fee of €20 million, for an exclusivity covering the main countries of the Middle East, but also royalties of between 3% and 5% for possible future developments.
• Nexport for a license covering Australia and New Zealand. This exclusive 20-year license is granted to assemble and supply zero emission vehicles locally in Australia and New Zealand.

The goal is to sign about 40 licenses in the next 30 months.

Deployment in hydrogen

GAUSSIN has taken a lead in the very promising hydrogen vehicle market with the presentation in autumn 2020 of the APM-H2 dedicated to the port market and the ATM H2 dedicated to logistics. The group received a first order from Plug Power in the summer of 2021 (see PR of August 16, 2021) for 20 ATM-H2s, which will be deployed in North America. Deliveries to Plug Power will start in November 2021.

A sharp increase in the number of hydrogen vehicles is expected in 2022.

Finally, in April 2021, GAUSSIN entered the heavy goods vehicle market with the world's first "skateboard" for class 8 tractor or straight trucks from 18t to 44t, hydrogen or fully electric.

Next meeting

Presentation of the first 100% hydrogen truck to participate in the DAKAR Rally: November 9, 2021

About GAUSSIN

GAUSSIN is an engineering company that designs, assembles and markets innovative products and services in the field of transport and logistics. Its know-how covers the transport of goods and people, autonomous technologies for driverless use such as Automotive Guided Vehicles, and the integration of all types of batteries, particularly electric and hydrogen batteries. With more than 50,000 vehicles worldwide, GAUSSIN enjoys a strong reputation in four rapidly expanding markets: port and airport terminals, logistics and people mobility. The group has formed strategic partnerships with major world players in order to accelerate its commercial penetration: SIEMENS LOGISTICS in the airport sector, BOLLORE PORTS and ST ENGINEERING in the port sector, UPS in the logistics sector and Bluebus in people mobility. GAUSSIN has expanded its business model with the signature of licensing agreements accelerating the distribution of its technology throughout the world. The acquisition of METALLIANCE marks the emergence of a group with over 200 employees and a turnover of €50 million.

In October 2019, the Group won the Global Autonomous Vehicle Transportation Competition "Categorie Leader" - "Best Energy and Environmental Sustainability."

GAUSSIN is listed on Euronext Growth in Paris since 2010 (EURONEXT GROWTH - FR0013495298).

More information on www.gaussin.com

This document may contain forward-looking information. This forward-looking information refers to GAUSSIN's future prospects, developments and strategies and is based on the analysis of forecasts of future results and estimates of amounts that are not yet determinable. Forward-looking information is by nature subject to risks and uncertainties because it relates to events and depends on circumstances that may or may not occur in the future. GAUSSIN draws your attention to the fact that forward-looking information is not a guarantee of its future performance and that its financial situation, its results and the evolution of the sector in which GAUSSIN operates may differ significantly from those proposed or suggested by the forward-looking statements contained in this presentation. Moreover, even if GAUSSIN's financial situation, its results and the evolution of the sector in which GAUSSIN operates were to be in line with the forward-looking information contained in this presentation, these results or these evolutions may not be a reliable indication of the company's future results or evolutions. GAUSSIN does not undertake to update or confirm analysts' expectations or estimates or to make public any correction to any information or event to reflect an event or circumstance occurring after this presentation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211102006395/en/

GAUSSIN Christophe Gaussin, invest@gaussin.com +33(0)3.84.46.13.45

Ulysse Communication Nicolas Daniels, ndaniels@ulysse-communication.com +33(0)6.63.66.59.22

Charles Courbet, ccourbet@ulysse-communication.com +33(0)6.28.93.03.06

LHA Investor Relations – USA Jody Burfening, jburfening@lhai.com (212) 838-3777

RooneyPartners - USA Jeanene Timberlake, jtimberlake@rooneypartners.com (646) 770-8858

More information on www.gaussin.com