Zapp Electric Vehicles Group (ZAPP) Investor Update summary

Key milestones and market positioning

• i300 electric scooter won nine major design awards, including the 2024 iF Design Award, validating its fit for the premium two-wheeler segment globally.

• The global powered two-wheeler market is projected to reach $201 billion by 2032, with electric models expected to surpass half of all sales, especially in emerging markets.

• Proprietary microfactory system in Thailand can assemble 21,500 units annually from a 12,000 sq ft facility, supporting rapid, cost-effective, and scalable manufacturing.

• Over 200 reseller applications received globally, indicating strong early demand and supporting global expansion.

• Regulatory approvals secured in the UK and Thailand, enabling initial deliveries and positioning for further market entries.

Commercial rollout and sales strategy

• Omnichannel approach includes concept stores, pop-ups, authorized resellers, online direct sales, and an e-commerce configurator, supported by a full-stack digital platform.

• Drop-ship direct-to-customer (DSDTC) model and franchised 'Zapper' vans provide van-based delivery and after-sales support, starting in Bangkok and expanding to other cities.

• EU homologation is pending, with plans to launch in France and Italy, and over 200 reseller inquiries globally are being evaluated.

• India is a key target, with plans to establish a microfactory and leverage EU Type Approval for rapid market entry.

• Digital and experiential marketing campaigns will build brand awareness, starting in Thailand and expanding globally.

Financial performance and guidance

• First i300 sales recorded in fiscal 2024, with FY2024 revenue of $17.4 million, net loss of $9 million (down from $222.1 million in 2023), and operating loss of $6.2 million.

• Operating cash used was $5 million, with a standby equity facility providing up to $45 million in liquidity as of January 2025.

• Gross margin is expected to be in the low- to mid-20% range going forward.

• Guidance anticipates 1,500 units sold in the next eight months and over 25,000 units annually from fiscal 2026, equating to $200 million+ in revenue and expected positive free cash flow.

• Positive operating cash flow is expected in fiscal 2026, with additional microfactories planned at low CapEx.