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CEO Update May 23

After the intense development period at the beginning of this year, we now see a shift towards sales, and we expect to see a dramatic increase in turnover starting from the second quarter.

Dear shareholders,

We are diligently working on our new three-wheeled, solar-powered vehicle, EVIG. Initial test production has commenced in Trollhättan. A few weeks ago, I personally delivered the EVIG to IDIADA near Barcelona, a global player in the automotive industry for certification and testing. The vehicle is currently undergoing the final rigid tests for type approval. A type approval means the vehicle is approved for traffic throughout the EU (as well as Norway, Switzerland, and the UK). This is a prerequisite for production and delivery to begin in Europe. The type approval opens opportunities for us to offer EVIG throughout the European market.

There is significant interest in our cost-effective vehicle, EVIG, throughout Europe, which has resulted in several new distributors entering the fold. Our EVIG electric vehicle is equipped with rooftop solar cells that, in southern Europe, can provide enough electricity for a full day's need, reducing dependency on external charging infrastructures and fossil fuels. This represents a more sustainable and self-sufficient energy solution for the transport sector. In Europe, the infrastructure for charging is a barrier, and here EVIG has a strong advantage over competitors. Including the solar cells, EVIG is one of the most energy-efficient transport vehicles in the world.

This spring, we secured engagement and led a consortium regarding simple, modular electric vehicles under Horizon Europe, the EU's research program. Our share of the budget is approximately 14 MSEK, and the decision is expected this fall, with the project starting in December 2024. As a company, Clean Motion and our product build on significant in-house development and the creation of groundbreaking technology. Therefore, we place great importance on participation and ensuring research and product development.

The company has reached a position where larger contracts and procurements have a significant impact on our operations. As previously communicated, we have offered a solution for approximately 20 MSEK regarding a Last Mile Delivery solution to Saudi Arabia. Today, I can reveal that the client is Neom and their first sub-project, Sindalah island. We have now signed a framework agreement and expect the first purchase order for customization and prototype in the coming days, worth approximately 2.8 MSEK. The plan is for extended deliveries during the second half of the year. Sindalah will open its doors in January 2024. The Neom project is a massive investment encompassing 500 billion dollars. We see fantastic potential for additional business in other regions of the Neom project in the coming years. I also see that the development of trailers and dollies will enable an even better offer to other customers in the future.

Yesterday, we proposed a decision to the assembly that includes expanding the board and strengthening competence in technology, internationalization, and rapidly growing organizations. Sofia Haby and Joel Rozada are proposed as ordinary members, and Emma Rozada as a deputy for these two. I am delighted with this addition of driven entrepreneurs where we share a conviction for more efficient transport.

The world is facing an urgent climate crisis, and the transport sector is one of the largest sources of carbon dioxide emissions. It is critical to transform before 2030 to achieve the ambitious climate goals that have been set. We have previously talked about the initiative from the EU Commission where 100 cities will be climate-neutral by 2030.

The Swedish cities that will be climate-neutral by 2030 are Gävle, Gothenburg, Helsingborg, Lund, Malmö, Stockholm, and Umeå. We presented EVIG at the Elfack fair in Gothenburg last week, together with our partners Bosch and Sortimo. Together, we displayed a customized solution for craftsmen with a specially adapted cargo space in EVIG with Sortimo's shelving system and Bosch tools. The response was overwhelmingly positive, and we see great potential in our domestic market as well.

After the intense development period at the beginning of this year, we now see a shift towards sales, and we expect to see a dramatic increase in turnover starting from the second quarter. My ambition remains as before; I aim for part of the year to be profitable and strong growth as we enter 2024.

Göran Folkesson, CEO

16th of may 2023, Jonsered Sweden