Update on strategic review of BVI segment and trading update

Core Viewpoint - The company is undergoing a strategic review of its Battery Systems and Vehicle Integration (BVI) segment due to changing market conditions and has decided to scale back operations while preserving future optionality [4][5]. Group 1: Company Developments - The company has established a leading position in the North American heavy-duty truck market for battery-electric mobility, supported by proprietary technology [2]. - An agreement has been made with Hino Motors Sales U.S.A. Inc. for the delivery of Class 6 & 7 battery-electric trucks, with 27 vehicles already delivered for commercial use [2]. - The company has received an additional order from Hino for 14 Class 6, 7, and 8 battery-electric trucks, expected for delivery in mid-2026 [6]. Group 2: Market Conditions - The U.S. market for vehicle electrification has faced significant changes, with regulatory and tariff uncertainties impacting near-term demand [3]. - Fleet operators are delaying asset utilization and fleet replacements, leading to limited near-term demand despite some state-level incentives [3]. Group 3: Strategic Review and Operational Changes - The strategic review initiated in June 2025 is evaluating various alternatives for the BVI segment, but a value-accretive transaction is currently deemed unrealistic [4]. - The company plans to reduce the BVI workforce by approximately two-thirds, maintaining a core team of about 25 individuals to ensure operational continuity [5]. - The BVI operations will be consolidated at the Dallas facility, with plans to exit the Ontario site by March 2026 and gradually wind down the Kelowna facility [5]. Group 4: Financial Position - One-time restructuring costs related to workforce reduction are estimated at approximately USD 0.7 million, to be recognized in Q1 2026 [5]. - Preliminary estimated figures for Q4 2025 include revenue of approximately NOK 468 million, a cash balance of approximately NOK 322 million, and an order backlog of approximately NOK 728 million [8].