Interim Report Q2

Interim report – Summary

Since OmniCar Holding AB was formed in May 2017, no valid comparative figures for the first six months of 2017 are available
for the parent company. The 2017 numbers presented include previous marketing services revenue that no longer is a part of Omnicar’s offerings. Omnicar is now a software company based on recurrent monthly license revenue.

H1 (2018-01-01 - 2018-06-30)
• Revenue totaled 6 326 TSEK year to date.
• Profit/(loss) after financial income and expenses, net amounted to -14 254 TSEK year to date.
• Earnings per share* is -0,98 year to date.

Q2 (2018-04-01 - 2018-06-30)
• Revenue totaled 3 421 TSEK.
• Profit/(loss) after financial income and expenses, net amounted to -9 302 TSEK for the quarter
• Earnings per share* is -0,64 SEK for the quarter
• The solvency ratio** is 87,43 % per 30 June 2018

*Earnings per share: The net profit or loss for the period divided by the average number of shares.
The average number of shares in the Group for the second quarter amounted to 14 495 710. The registered number of shares in OmniCar as at 30 June 2018 totalled 14 495 710.
**Solvency: Equity as a percentage of the balance sheet total.

Significant events in Q2 2018

19.04.2018
NEW CIO JOINS OMNICAR
On 1 May, Thor Laage Petersen will be joining IT company OMNICAR as its new CIO. Thor Laage Petersen will be spearheading the process of attuning OMNICAR’s digital progress to its global growth ambitions. Thor has an extensive career history within the IT industry and a wealth of experience within management and digitalisation in global companies.

20.04.2018
IT COMPANY DOUBLES ITS REVENUE AND REPORTS
A NET LOSS IN THE MILLIONS
More shares are listed on the mini stock exchange Aktietorget in Sweden than on Nasdaq OMX Copenhagen and First North put together. IT company Omnicar that has masterminded software solutions for car dealers and workshops nearly doubled its revenue in 2017 while reporting a bottom line in the red.

20.04.2018
CEO – OMNICAR HAS NEVER BEEN STRONGER
IT company OMNICAR has today published its annual report for 2017, and with a revenue that has nearly doubled and a steady increase in new customers, the company’s ambitions have been boosted.

30.04.2018
NEW AGM DATE IN OMNICAR HOLDING AB
OMNICAR Holding AB hereby announces that the new date for the Annual General Meeting is 18 June 2018.
The previously communicated date was 24 May 2018.

30.04.2018
DANSK BILBRANCHERÅD IS DIGITALISING ITS WORKSHOPS IN COOPERATION WITH OMNICAR
Dansk Bilbrancheråd has signed a framework agreement with IT company OmniCar, which will assist with digitalising the workshop sector. Dansk Bilbrancheråd expresses high expectations for the cooperation.

31.05.2018
SIGNIFICANT INTERNATIONAL INTEREST IN OMNICAR

 Today, the company released its Q1 report. “In the first months of 2018, we have registered significant interest in OMNICAR, not just in Scandinavia, but in the entire European market, which is growing” says Claus T. Hansen, CEO of OMNICAR.

28.06.2018
OMNICAR ENTERS THE SWEDISH MARKET
There is so much demand for OMNICAR’s digital solution for car dealers and car dealerships that the IT company has now accelerated its planned move into Sweden.

Significant events post period end

07.08.2018
OMNICAR SIGNS CONTRACT WITH BROOKLANDS HELSINGBORG AB
We are proud to announce that Brooklands Helsingborg AB has signed a contract with Omnicar. Apart from being a well-reputed authorised workshop for Jaguar, Land Rover and Range Rover, Brooklands specialises in advising its customers in finding their new dream car and giving them
the best car owner experience.

09.08.2018
OMNICAR SIGNS CONTRACT WITH A LARGE AUTHORISED CAR DEALER AND WORKSHOP IN DENMARK
Per B. Christensen & co a-s is a large authorised Ford, Mazda, Suzuki and Hyundai car dealer and workshop in Denmark.
As part of the agreement, Omnicar’s SAM solution will include Per B. Christensen & co a.s’s current portfolio of service contracts, which makes this deal with Per B. Christensen & co a-s an important milestone for Omnicar. The contract involves a monthly target of new service contracts Per B. Christensen & co a-s has to sign.

13.08.2018
OMNICAR TO LAUNCH SERVICE AGREEMENT MANAGEMENT 2.0 IN Q4
Since the introduction of our Service Agreement Management (SAM) solution in 2017 the market has responded positively.

16.08.2018
OMNICAR SIGNS CONTRACT WITH ONE OF THE MOST POPULAR CARS DEALER IN SOUTH OF SWEDEN
OmniCar is happy to announce the signing of a new important contract. This time Westmans Bilcenter, one
of the most well-known and reputable pre-used car dealers in South of Sweden, has chosen OmniCar SAM to leverage the company’s service offerings and stimulate sales.

17.08.2018
SURVEY REVEALS HIGH DEMAND FOR SERVICE AGREEMENTS
Two major surveys involving 1,176 Danish car owners and
202 Danish workshops reveal a big gap between the supply and demand for service agreements. The surveys reveal a high demand for service agreements but only a few workshops offer them.

21.08.2018
INDUSTRY EXPERT JOINS THE BOARD OF DIRECTORS
The founder of Nordic Forum and former FTZ CEO Jens Sørensen has accepted the offer of joining the board of directors of OmniCar Holding AB.

24.08.2018
ONE OF SWEDEN’S MOST WELL-KNOWN CAR DEALERS SIGNS CONTRACT WITH OMNICAR
The latest car dealer to benefit from OMNICAR’S Service Agreement Management (SAM) solution is the 40-year-old Swedish car dealer and workshop Jarls Bilservice.
The company is a specialized BMW and Alpina importer.

28.08.2018
OPEL NORWAY HAS CHOSEN OMNICAR’S SOLUTION TO MANAGE ALL ITS SERVICE AGREEMENTS
The last couple of weeks have been busy for OMNICAR. Numerous car dealers and workshops have signed contracts and now yet another acknowledged car brand will benefit from OMNICAR’s service agreement solution.

29.08.2018
FRENCH HIGH-END CAR BRAND SET TO BENEFIT
FROM OMNICAR SOLUTION
OmniCar is experiencing a growing interest in the company’s products and solutions throughout the Nordics. The latest car brand to benefit from OmniCar’s digital solution is DS Automobiles in Norway.

CEO Claus T. Hansen has the floor

What’s your take on Omnicar’s Q2 report?
I am very happy with our Q2 report. We are progressing on almost every KPI, we have more and more dealers and our portfolio of service contracts is growing fast. It is key to Omnicar to have a product that generates revenue for our customers. In 2018, our dealers and workshops have generated more than SEK 18 million in service agreement revenue and this is strong evidence that our solution makes a huge difference. Our organisation is fully developed and we have an extremely qualified team of employees. We have just completed our first year as a listed company; and remember we were founded only two and a half years ago… I am proud to say that Omnicar has never been more solid and ready for growth.

Your revenue numbers are up nearly 18% to Q1 2018
– is that in line with your expectations?
First, I am happy to show the market that our SAM revenue has increased in Q2 compared to Q1 – the revenue has more or less been generated by our customer base of car dealers. This segment shows an extremely strong performance with higher average service contract revenue, longer subscription terms and a high average of service contracts pr. dealer in 1H 2018 alone.

If the performance in so strong, why can’t you show
a stronger growth?
I would have liked to see an even more aggressive growth, we have been successful in attracting and penetrating the market for car workshops because our solution readiness for this segment was high and easy to onboard. For many workshops it is a new routine selling service agreements and this behaviour takes longer time to adapt to compared to car dealers. Consequently, we see a slower adaption compared to our expectations and with a business model that is based on a 5% fee to OmniCar, unchanged this business model would
in the long run impact our revenue.
So what actions have you taken to address this?
As a part of the insights we have gained here in 2018, we will now introduce the market to three different solutions, a solution for the workshop market, a solution for the mid-size car dealer and an enterprise solution. All three solutions are based on a fixed license fee as described in our press release earlier this week. We can see that car dealers are ready to pay a high license fee from day one and this license fee will result in the same number as if they have 250 service agreements from day one. Also workshops who are happy with ten service agreements still have to pay as if they have 30 agreements as we will introduce a minimum fee of SEK 429 per month from day one.

How will this impact your growth strategy?
We will place a stronger focus on car dealers and allow workshops to do self-onboarding. Our sales and marketing will focus on the big workshop chains, car dealers and car importers. We will speed up our internationalisation.
We can see how fast we are growing in Sweden with just the limited resources. We can also see that the matureness in the market is higher than in the past few years.

Is your long-term goal still the same?
Our long-term goal remains the same, only with a much higher confidence level than before, since we have now gained the necessary insights into our pricing structure. Also, a recent study shows that up to 56% of car owners between 18 and 49 years old would be “highly interested” or “to some extent
interested” in having a service agreement with their preferred workshop. Only 11% of the car owners surveyed were offered a permanent service agreement when they last visited a workshop.

How do you asses your software solution and are you ready
to service the high-end market?
Yes, we have targeted our development activities towards a steady and mature platform leveraging leading-edge cloud technology provided by Google. Surrounding this platform we have seized new standards of IT amongst others using integrationbased RPA – meaning that we are now able to integrate to the most complicated legacy systems a dealer may have – in much shorter timespans than integrations usually require.

Finally, how do you see the market for service agreements?
First, we are looking at 271 million cars in Europe and more than 1.1 million dealers and workshops. Every month millions of cars change ownership. Ask any dealer if they want to make service agreements. The answer is yes, but they lack the necessary tool. Omnicar has the solution. Our solution
is proven and has generated substantial revenue for our customers. Our legacy product generated more than USD 40 million for our customers. In only six months, our SAM solution has generated more than SEK 18 million for our customers.
I think it is evident that we are looking at an extremelyattractive market.

Any last words to the shareholders?
First of all, I wish to thank our shareholders for your trust and confidence in Omnicar. I am aware that you have numerous options when investing and I feel humble with the fact that you have decided to invest in Omnicar. I am the biggest shareholder with around four million shares and I can assure
you that my confidence level has never been more firm than it is today. I realise that most shareholders are waiting for the hockey stick growth, but we are not there yet. We are on track though, we create results for our customers, our software platform is scalable and we are facing huge demand from the
auto industry. We will see an even stronger growth in Q4 2018 compared to this recent quarter and 2019 will grow at a muchhigher pace.

PERFORMANCE FIGURES FOR THE PERIOD

Revenue
The Group’s net revenue for the second quarter amounted to 3 421 TSEK and to 6 326 TSEK for the first half of the year.
Financial performance
The Group’s Q2 2018 interim loss after tax totalled –9 302 TSEK and year to date totalled -14 254 TSEK.
Liquidity
The Group’s cash and cash equivalents as at 30 June 2018 amounted to 17 997 TSEK.
Solvency ratio
The Group’s solvency ratio as at 30 June 2018 was 87,43 %.

Shares
There is one type of share in OmniCar. The Company’s shares are listed on AktieTorget under the ticker symbol ”OMNI”. Each share entitles the holder to a pro rata share in the Company’s assets and results. As at 30 June 2018, the total number of shares was 14 495 710. The average number of shares during the second quarter of 2018 was 14 495 710.
Warrants
At the extraordinary general meeting held on 29 May 2017, OmniCar approved two warrant programmes, one offered to the board of directors and employees of the Company and one to 1CT Management ApS. The warrant programmes comprise a total of 1 361 957 warrants of the 2017/2020 series, each such warrant entitling the holder to subscribe for one (1) new share in the Company at a price per share of 5,40 SEK. Full exercise of both warrant programmes will thus increase the number of shares in the Company by 1 361 957, resulting in a dilution of around 8,6 %.
An additional warrant program was approved at the extraordinary general meeting held on 21 December 2017, comprising a total of 1 500 000 warrants. Each warrant gives its holder the right to subscribe for one (1) new share, at a subscription price of 18,60 SEK per share, during 1 December 2019 to 30 November 2020. If the warrant program is fully exercised for subscription of shares the resulting dilution will be around 9,4 %. Full exercise of all warrant program will increase the number of shares by 2 861 957, resulting in a dilution of approximately 16,5 %.

Warrant programme for the board of directors and employees of OmniCar
As compensation in the form of warrant programmes is common in Denmark (and Sweden), the Company has decided to use this compensation method as well. In addition, the warrant programmes are also a way of attracting competent employees to a company which is at a relatively early stage as well as a way of creating good value for the Company. The warrant programme offered to members of the board of directors and employees of OmniCar is – with the exception of the shareholder’s pre-emption rights – exclusively offered to Claus T. Hansen, Jesper Aagaard, Mikkel Lippmann, Stig Jensen, Claus Stillborg, Lotte Hansen, Rasmus Munch and Thomas Bendik-Poulsen. Warrants may also be subscribed for and purchased through own companies. The right to subscribe for warrants also applies to the subsidiary OmniCar A/S. Any warrants held by OmniCar A/S may be used as an incentive programme in connection with recruitment. The warrant programmes comprise a maximum of 1 237 000 warrants, entitling the holders to subscribe for 1 237 000 new shares in the Company. The warrants may be exercised from and including 10 June 2019 through 8 June 2020.
The parties entitled to subscribe for warrants are listed below:
• Management and board of directors may subscribe for a maximum of 1 090 000 warrants
• Employees may subscribe for a maximum of 75 000 warrants
• OmniCar A/S may subscribe for a maximum of 72 000 warrants
Warrant programme for 1CT Management ApS
OmniCar has offered a warrant programme to 1CT Management ApS. The number of shares available under the warrants is 124 957. The warrants may be exercised from and including 10 June 2019 through 8 June 2020.
Principles applied in the interim report
The financial statements of the Group and the parent company are prepared in accordance with the general recommendations and guidelines of the Swedish Accounting Standards Board’s (Bokföringsnämnden) as well as BFNAR 2012:1 Annual report and consolidated financial statements (K3).
Audit
The interim report has not been audited by the Company’s auditor.
Financial calendar
The Company prepares and publishes a financial report at each quarter end. Upcoming reports are planned as follows:
• Q3 2018 report 2018-11-30
• Q4 2018 report 2019-02-28
Submission of interim report
Copenhagen, 31. August 2018
OmniCar Holding AB,
The board of directors

OmniCar Holding AB is required under the Swedish Securities Market Act (lagen om värdepappersmarknaden) to disclose the information provided herein. The information
has been provided by the above contact person for publi-cation on 31. August 2018.