ANNUAL REPORT 2020 W.A.G. PAYMENT SOLUTIONS, A.S. 2 INTRODUCTION // ANNUAL REPORT 2020 3 Content INTRODUCTION Content 2-3 Excited by the journey ahead Corporate summary 4-5 Message from the CEO 6-7 Key indicators 8-9 EW History 10-11 PROVIDING VALUE FOR ALL STAKEHOLDERS Business activities 12-13 The Eurowag management 16-17 ENVIRONMENTAL, SOCIAL AND GOVERNANCE Our ESG journey 18-19 Environment 20-21 / Measuring our impact 20 / Advancing clean mobility 22-25 / Optimising transport 26-27 SOCIAL Our people 30 / DEI 31 / Safety 32 / Our communities 33 GOVERNANCE / Corporate governance 34-35 / Conduct, Supply chain transparency, data privacy 36 FINANCIAL DISCLOSURE Consolidated financial statements 38 Independent auditors report 104 4 ANNUAL REPORT 2020 // INTRODUCTION INTRODUCTION // ANNUAL REPORT 2020 5 Corporate summary Eurowag provides Our innovation drives change payments and financing to an industry lagging in services to truckers who digitalization. We are at are the backbone of the forefront of clean We make the world move. European trade. mobility transition. We are one of the fastest growing integrated mobility provider in Europe, focused on finding solutions to simplify Strong focus on our customers is a key pillar of our BACK TO CONTENT the lives of commercial road success, securing loyalty and enabling transport companies. cross-sell. We are harnessing the Our founder led management power of digitalization at scale team inspires a strong to reduce road transport collaborative emissions and help tackle culture. climate change. 6 ANNUAL REPORT 2020 // INTRODUCTION INTRODUCTION // ANNUAL REPORT 2020 7 Message from the CEO Dear Colleagues and Friends of Eurowag, were fundamental to accelerating value Valued Global Citizens, generation despite the multiple challenges facing the transportation industry. An unprecedented pandemic cast a shadow over a large part of 2020 and the first months of We have observed with great satisfaction that, 2021. Millions of lives were lost, more than 100 despite the ongoing health crisis, political million were infected, households continue to leaders around the globe have kept the broader suffer from economic and mental stress, and the impact of humankind on our planet high on quality of life and access to daily normalities for the agenda. Eurowag too continues to develop the majority of the global population has at least the ESG agenda, invest in the digitalization of temporarily deteriorated, while long term impacts road transport and accelerate the transition are yet to be observed and healed. to clean powertrains. We expand the impact of our activities beyond adding financial value BACK TO CONTENT We remain deeply thankful to front-line workers into creating benefits to a wider range of who took care of others and who delivered on stakeholders – to the benefit of the industry, their duties despite increased risk and various society and our environment. challenges. Eurowag Group took the emerging crisis very seriously from its outset. Our priority Finally, I would like to convey a big thank you was to protect the health of our employees, but to the thousand hard-working colleagues equally to continue to provide critical services delivering incredible results, and to our through flawless operations to the backbone partners and suppliers sustaining high levels of our economy - the transportation industry. of service, despite many professional and Eurowag played an important role as an anchor personal difficulties. Though the COVID crisis is of stability for our customers and business not yet over, let’s look forward to 2021 as the partners throughout the crisis. beginning of a new era which provides a unique opportunity to reflect on the past and build As in the 2008 financial crisis, we again proved a better world, where nobody is left behind, to be highly resilient and delivered outstanding where mindfulness, empathy and personal performance and strong double-digit growth. responsibility are key drivers of Unique passion and purpose-driven culture, future prosperity and peace. ingenuity, and a sense for urgency of our employees made all this happen. Improving operational basics and cash flow generation Martin Vohánka and leveraging customer centricity and loyalty CEO and Founder 8 ANNUAL REPORT 2020 // CORPORATE SUMMARY CORPORATE SUMMARY // ANNUAL REPORT 2020 9 SERVICING EUR Key indicators A PORTFOLIO OF HIGH AND MORE THAN INCREASING M NPS SCORE 57 EBITDA K % 100 MARGIN UNIQUE ACTIVE 46 50 TRUCKS COVID ESG HIRED RESILIENCE WITH COMMITMENT % 297 K 200 22 EBITDA CHARGING POINTS NEW EMPLOYEES, BACK TO CONTENT EXCEEDING GROWTH, LNG/ OUTPERFORMING 77 CNG PEERS STATIONS 1.000 OPERATING ROADLORDS PRESENT IN MORE THAN trucker #1 app 30 15 K WITH MORE THAN COUNTRIES POINTS OF 1.000.000 SALE DOWNLOADS 10 ANNUAL REPORT 2020 // CORPORATE SUMMARY CORPORATE SUMMARY // ANNUAL REPORT 2020 11 Expansion of our eMobility platform through partnership EW history with Last Mile Solutions 1995 Founded in the Czech Republic 2021 Full roll-out of RoadLords and EVA 2000 Payment services launched Integrated e-mobility First truck park 2005 into Sygic navigation opened in the Czech Republic BACK TO CONTENT 2006 Toll services 2020 Established launched the ESG program VAT Expanded fuel cards network, navigation software and eMobility capabilities through the acquisitions of Sygic and ADS 2017 2018 2019 Launched Telematics Granted a Payment Expanded Telematics Launched through the acquisition Institution License by services through eMobility and of Princip the Czech National Bank acquisition of Aldobec Alternative and Hi Software Fuels programs 12 ANNUAL REPORT 2020 // PROVIDING VALUE FOR ALL STAKEHOLDERS PROVIDING VALUE FOR ALL STAKEHOLDERS // ANNUAL REPORT 2020 13 Joined forces with Drivitty Business activities to accelerate mobile payment adoption Launched Joined forces with Completed RoadLords Last Mile Solutions the acquisition Free social Truck to supercharge of ADS Navigation GPS App eMobility to strengthen The investment is our next presence in the Iberian step into the role of an Peninsula and integrated mobility solutions Western Europe provider and confirms Eurowag’s commitment to The partnership will provide our ADS customers gain access to Introduced provide sustainable and customers with the ability to a broader portfolio of services BACK TO CONTENT EVA Created new environmentally friendly pay for fuel and related services and geo-network, including business unit transportation services. through their mobile device, location-based services, Enhanced Vehicle Last Mile Solutions operates giving them a superior payment toll solutions, payment and Assistant more than 37,000 connected experience and an additional transaction processing, cross- Automotive charging points and has over layer of security. It will also border currency and insurance 150,000 active charging cards minimise the need for physical solutions, tax services, and with users in over contact, further protecting access to alternative and EVA provides seamless RoadLords Eurowag responds to 22 countries. health and safety on the road. green energy solutions. toll payment across 8 includes specialized truck automotive industry countries and 3 major routing & maps that help megatrends: connectivity tunnels (with second EETS professional drivers with services, electrification OBU). Advanced telematics their everyday work. and autonomous driving, integration delivers The app displays nearby last-mile delivery, inter- Acquired majority share in KomTeS transport operators with fueling options, finds city logistics and shared significant cost savings available truck parks and mobility. We analyze reseller of Webdispečink fleet management solution on fuel and maintenance, recommends suitable complex business schemes The acquisition will ensure continued high level of support, service, while proprietary route for the vehicle. to develop technological and value to customers in the Czech Republic and Slovakia. KomTeS geolocation technology It also allows drivers solutions for new customer serves over 1,700 customers operating over 25,000 telematics protects businesses from to communicate with segments with global units in the CRT, agriculture, and fleet industries with hardware most fuel theft fraud. each other. reach. installation, training, customization and support. 14 ANNUAL REPORT 2020 // PROVIDING VALUE FOR ALL STAKEHOLDERS PROVIDING VALUE FOR ALL STAKEHOLDERS // ANNUAL REPORT 2020 15 Martin Vohánka Chief Executive Officer, The Eurowag Chairman Martin is the founder of Eurowag, Chief Executive Officer and Chairman of the Board of Directors. He lectures at the University of Economics in Prague and holds an MBA management from the University of Pittsburgh. Martin has long maintained an interest in the furtherance of civil society and is a co-founder of the Independent Journalism Foundation (Nadační fond nezávislé žurnalistiky) and the Closer Together Foundation (Nadace BLÍŽKSOBĚ). He was a finalist in the 2014 EY Entrepreneur of the Year program. Kristi Ansberg Magdalena Bartoś Martin Hannsmann Ivan Jakúbek Sunny Mehta Mittu Sridhara BACK TO CONTENT Chief People Officer, Chief Financial Officer, Chief Quality Officer, Chief Corporate Development Group Chief Commercial Officer, SVP Technology Board Member Board Member Board Member Officer, Board Member Board Member Kristi is an HR professional Magdalena is a Finance Martin comes from a mixed Ivan has been leading fast- Sunny has been leading sales Mittu is a Technology veteran with experience in