MoveByBike (MBBAB) Status Update summary

Strategic and Operational Update

• Successfully completed financial restructuring, including an 18.9 million SEK debt write-down, resulting in a nearly debt-free balance sheet and improved outlook.

• Achieved 106% year-on-year revenue growth and reduced losses by 64%, despite downsizing and restructuring.

• Over-subscribed share issue secured funding for restructuring and future investments, with an extraordinary general meeting planned to finalize formalities.

• Focus shifting from survival to aggressive sales and business development, with new hires and partnerships in Sweden and Denmark to drive growth.

• Monthly operational metrics, such as deliveries per site, will be published to enhance transparency and track progress.

Financial Guidance and Outlook

• Updated forecasts reflect delays in investments and sales initiatives due to the extended restructuring process, shifting expected growth and profitability timelines.

• 2025 revenue and EBITDA are now expected to be lower than previously forecasted, with gradual recovery targeted for 2026.

• Q4 2024 revenue is projected to reach 11.1 million SEK, surpassing previous Q3 2025 targets, though operating results are temporarily impacted by increased sales investments.

• High gross margins of around 30% are maintained, significantly above industry averages, but overhead and personnel costs remain a focus for further efficiency gains.

• Seasonal effects impact margins, with winter months presenting operational challenges and lower profitability.

Operational Initiatives and Investments

• Invested in a new generation of electric cargo bikes, especially for the Danish market, to improve reliability and efficiency.

• Advertising business has grown, with all vehicles fully booked for campaigns, providing a valuable passive income stream.

• Efforts underway to reduce high staff turnover through new incentive programs and improved onboarding, aiming to boost efficiency and lower costs.

• Exploring innovative advertising solutions, including LED-lit and digital displays on vehicles, to enhance value for advertisers.