Smart Wires Inc.

Smart Wires Technology Ltd, Q2 2022 Interim Report

August 11, 2022

“Revenue in the second quarter of $8.2M was in-line with our previously communicated guidance that more than 70% of revenue will be in the second half of the year as supply chain disruption continued to impact production timing and associated deliveries.

After the end of the quarter, we updated the market on the company’s outlook for the rest of 2022. We lowered the revenue outlook to $55M to $60M compared to the previously stated $65M to $70M due to the impact of continued supply chain disruption on our production volume and technology deployment.

Cash at the end of the quarter was $30.2M. We are managing our cash profile through careful management of quarterly spending and driving improved payment terms with both vendors and suppliers, while continuing to explore strategic financing opportunities.

Market demand continues to gain pace, strengthening from quarter to quarter, and we’re well positioned to benefit from the long-term trends. Our order backlog has grown to $72M with additional orders expected in the back half of 2022, driving our expected orders intake to between $100M to $120M for 2022, with more than half coming from key customers in the UK, Australia and Colombia.”

Peter Wells

CEO of Smart Wires

The Company’s Key Business Highlights for Q2 2022:

  • As anticipated, global supply chain disruptions led to a low-volume quarter
  • Given continued supply chain challenges, full year revenue outlook was reduced to $55 million to $60 million
  • Orders outlook remains on track for $100 million to $120 million
  • Current order backlog at $72 million slated for 2022 and 2023 delivery
  • Q2 Revenue of $8.2 million, -20% vs. Q2 2021
  • Q2 Net loss of $18 million, +26% vs. Q2 2021
  • Q2 non-GAAP adjusted EBITDA loss of $16.1 million, -7% vs. Q2 2021
  • ~50% of order target contracted already or in late contracting stage; $120+ million of high-probability, new opportunities identified this year from lighthouse customers; strong position and potential for order upside in 2022
  • $18 million – $20 million order received for second largescale project with ISA Transelca
  • New global HQ opened in North Carolina; Colombian subsidiary officially incorporated
  • Organization strengthened with key appointments
  • Reseller partnership with ELES Group subsidiary Operato broadens commercial offering to include dynamic rating software SUMO

Smart Wires Technology Ltd (“Smart Wires”) presents its Q2 2022 Interim Report at 15:00 CEST on 11 August 2022 via audiocast teleconference at the following link: https://tv.streamfabriken.com/smart-wires-q2-2022. Teleconference: Dial-in number SE: +46850558366 UK: +443333009271 US: +16467224957

The full Smart Wires Technology Ltd Q2 2022 Interim Report is attached to this release, and can be found at: https://www.smartwires.com/investors/financial-reports-presentations/.

Important notice about forward-looking information

This interim report contains certain forward-looking information and statements that reflect the Company’s current views on future events as well as financial and operational developments. Words such as “refer”, “assess”, “expect”, “can”, “plan”, “estimate”, “calculate”, “could” and other expressions that indicate indications or assessments regarding future developments or trends, and which does not relate to historical facts, constitutes forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties because it is dependent on future events and circumstances. Forward-looking information does not constitute a guarantee regarding future results or development and the actual outcome may differ materially from what is stated in forward-looking information. Neither the Company nor anyone else make any representations about publishing updates or revisions of forward-looking information as a result of new information, future events or similar circumstances other than as provided by applicable mandatory rules and regulations.

CONTACTS

Julie Andrews, CFO

E-mail: julie.andrews@smartwires.com

Tel: +1 901 687 8314

Smart Wires’ Certified Adviser is Erik Penser Bank AB, Apelbergsgatan 27, Box 7405, SE-103 91 Stockholm, E-mail: certifiedadviser@penser.se, Tel: 08-463 83 00, www.penser.se.

This information is information that Smart Wires Technology Ltd is obliged to make public

pursuant to the EU Market Abuse Regulation. The information was submitted for publication,

through the agency of the contact persons set out above, at 2022-05-12, 07:30 CET

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