Vmoto : 1Q22 Market Update

2 May 2022

Vmoto's 1Q22 Market Update

Global electric vehicle company Vmoto Limited (ASX: VMT) (Vmoto, or the Company) is pleased to provide the following update on its activities for the quarter ended 31 March 2022 (1Q22), during which the Company again delivered strong operational and commercial performance, driven by increasing demand for the Company's products, particularly its B2B products.

Highlights

• • 7,998 units in total sold in 1Q22, up 36% on 1Q21 and up 94% on 1Q20

• • International unit sales of 7,677 units for 1Q22, up 35% on 1Q21 and up 96% on 1Q20

• • Significant positive operational cash flows of A$6.1 million for 1Q22

• • Strong net cash position of A$24.7 million, with no bank debt as at 31 March 2022

• • Firm international orders of 9,116 units as at 31 March 2022, providing a very solid runway for FY22 sales

• • New international distributors appointed, and ongoing discussions and samples shared with a number of potential new B2C and B2B customers

• • Strategic advisory and investment agreement executed with Giovanni Castiglioni along with a partnership and investment agreement with Graziano Milone, both well-known and experienced European entrepreneurs, investors and executives in the global motorcycle industry

1Q22 Sales Performance

During 1Q22, Vmoto sold a total of 7,998 units, with more than 96% of these units being sold into international markets, while just under 4% of units were sold into the Chinese market. Total international units sold in 1Q22 of 7,677 units was up 35% on 1Q21 and up 96% on 1Q20, demonstrating the continued strong momentum in the business.

Sales figures from 1Q22 are in line with the Company's expectations and reflect the usual winter seasonal fluctuations across Europe and the Chinese New Year holiday in January/February 2022. The Company notes that as at the date of this quarterly report, its manufacturing facility In Nanjing, China, remains fully operational and not impacted by COVID-19 lockdowns. While the Company is experiencing some minor supply chain delay issues, it does not expect this to materially impact on its manufacturing operations or ability to meet customer orders.

The chart below illustrates the Company's historic international unit sales, by quarter, for the current and previous financial years:

Financial

As at 31 March 2022, the Company maintained a strong cash position of A$24.7 million, with no bank debt.

Since 31 December 2021, total cash held by the Company has increased by A$6.1 million, largely a result of the positive operational cash flow from receipts from customers, reiterating the Company's excellent growth and profitability for FY22 and the coming years.

Photo: New Vmoto B2C dedicated store in Philippines.

Order Book

As at 31 March 2022, the Company had firm international orders for 9,116 units.

Vmoto's brands and products are gaining more recognition and traction from its distributors and consumers, and interest from new and existing distributors and consumers is increasing.

The Company expects sales to continue to increase with repeat orders from its existing customers and additional orders from new international customers in FY22 and beyond.

Photo: Vmoto's customers riding the Company's zero emisisons1 electric motorcycles.

International Distribution

In 1Q22, the Company signed and renewed distribution agreements with international distributors in Paraguay, Morocco and Lebanon covering the warehousing, distribution and marketing of its B2C range of electric two-wheel vehicles.

Vmoto's B2C distributors continue to expand their retail presence with the opening of Vmoto Soco flagship stores and corner shops in the Philippines and Romania. The Company's B2C distributors have also participated in a number of exhibitions to showcase the Company's products.

Photo: New Vmoto B2C dedicated store in Romania.

Photo: Vmoto's France distributor showcased Vmoto's B2C products in an exhibition event held at Lyon, France in March 2022.

Vmoto has also supplied samples to and/or is in discussions with a number of potential B2C and B2B distributors and customers in Austria, Australia, Belgium, Brazil, France, Greece, India, Kenya, Luwanda, Malaysia, Poland,

Portugal, Saudi Arabia, Singapore, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, United Kingdom and United States.

The Company continues to receive significant interest in Vmoto's B2B fleet products from business operators, which the Company is actively pursuing. The Company is in advanced discussions with these business operators and will update the market on material developments as appropriate.

Go Sharing

The Company continues to receive repeat orders from Vmoto's strategic B2B customer, Greenmo, founder of leading Eurpopean ride-sharing company, GO Sharing(go-sharing.nl)and expects to continue to receive repeat orders from Greenmo for FY22 and beyond.

Go Sharing has expanded its footprint and shared electric moped platform rapidly across Europe, including Netherlands, Belgium, Austria, Germany, Turkey and Italy, Go Sharing also aspires to expand its shared electric moped platform across several other countries throughout Europe.

Photo: GO Sharing's shared electric mopeds.

Corporate

On 4 April 2022, the Company issued 1,720,000 shares to Chinese and European employees in recognition of and to reward their efforts and contribution to the Company in the year ended 31 December 2021. The Company also issued a further 1,500,000 shares and 23,100,000 options pursuant to the strategic partnership and investment agreement, as announced on 4 April 2022. The shares and options were issued on 11 April 2022.

The Company further advises that, effective 1 May 2022, Mr James Doyle has been appointed as Joint Company Secretary. Mr Doyle is an experienced advisory and governance professional specialising in the provision of company secretarial and corporate advisory services to public and private companies across a range of sectors including resources, industrials and information technology. Mr Doyle is an employee of Evolution Corporate Services, a company associate with Non-Executive Director and Joint Company Secretary, Ms Shannon Coates.

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