ADS-TEC Energy PLC Q1 2023 Earnings Call
A recording of today's call and the presentation can be accessed shortly after it concludes.
The investors section of our website.
Joining me on today's call are Thomas Speidel, founder and CEO of a D S Tech energy and Wolfgang Braemar.
F O have a D S Tech energy.
Today, we will be discussing a D S tax.
Latest financial results for the full year 2022 guide.
Guidance for 2023.
To conclude with a Q&A session.
Please note.
Ask a question you will need to dial in what the telephone details provided.
During the call management will be making forward looking statements regarding full year 2023 and onwards, and the outlook for expected growth and investment initiatives. These forward looking statements involve risks and uncertainties many of which are beyond our control and could cause actual result.
To differ materially from our expectations, including among other risks and uncertainties supply chain issues the war in Ukraine and geopolitical challenges.
These forward looking statements apply as of today and we undertake no obligation to update these statements after the call.
For a more detailed description of factors that could cause actual results to differ.
Please refer to the risk factors section of our annual report on form 20-F, previously filed with the SEC and posted to the investors section of our website.
Also please note that financial measures presented on this call adhere to Ifr S and non I F. Rs. We use non <unk> measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the ifr S measures that we.
<unk> a reconciliation of these non <unk> measures to comparable <unk> measures is included in the earnings release and Investor presentation.
If you require operator assistance. Please press Star then zero.
With that I will turn the call over to.
The call over to Thomas Spidle, <unk>, founder and CEO Thomas.
Yes.
Yes, thank you very much.
A very warm welcome from my side, then from Wolfgang to this call.
Hey, I'm happy that you would take your time.
So with us through this earnings call.
Let me start with some information about our product portfolio and where we are.
I guess most of you know that charge book is the product, which is already out there in the field and which is our battery buffered supercharged.
Being well received and up and operating.
We have now and you will see that later not only our initial customer from the automotive business.
Now we have more customers and I want to show you later in the presentation, where the charge booked Meanwhile, is operating and serving not only in the EV business.
But also in related businesses of mobility, such now the first time also for electric boating.
The <unk>.
The second product segment.
Battery buffer charging we have announced it.
And we are proud that we made on time last year due to all the difficulties in supply chain and shortages.
The charge port.
The charge posed.
Similar technology. So we can connect to the existing low power grid in this case. It is all in one solution so no separate dispenser.
And we added two up to two big advertisement screen, which allows us to offer our customers.
More revenue stream.
<unk>.
This is very important to understand the ASIC business model, we are not a component supplier, we are providing platforms, including hardware software and services over long term periods that allow us our customers and partners to operate their business to the end customer charge Pope.
Has been launched as expected 2022, and we also with the later a.
A little bit more information about the charts, Paul it's very well received.
We have presented at the first time on the new exhibitions Stuttgart here Walter.
<unk>.
And mainly from infrastructure investors and operators, we get a very solid feedback. The reason is it's easy to install.
Providing many different revenue streams and as I said in this case the.
Advertisement comes on top of it.
Power booster.
So these two segments power boosters storage storage rack systems, that's our commercial industrial business, which we are.
Doing since many many years here we have.
Updated and expanded our portfolio so new batteries as we have announced that the new cells and modules came in.
And this year 2023.
We're starting to deploy the new and expanded systems to the market.
Next page please.
Don't see it.
Okay.
So.
What we see here and that is important to understand and to know.
Why is it important that way.
When I speak about we are not only component of our hardware company. It is a platform business eco platform business and we see that here.
The circle, we start with our hardware and that's important because if we don't.
Understand the heartworm, if we don't have the ability to act on any level of the hardware we cannot provide long term services.
And this is what in current discussions with customers and if I may say I am in that business now for 12 years and at the beginning people were starting with demonstration units, we hetrick project or with a.
Very early stage.
State customer, but now that is changing we are talking more and more to infrastructure investor which are interested in investing in that in a larger portfolio, but that portfolio must be managed.
And as you know if you listened to our.
General business model, we want to be the partner for these operators to run the business not only for years.
But for Dk, so very long time period.
That regret that we can act in hardware software and it.
It ends up in services, we are providing and we see <unk> on the on the slide we start in the center.
With our hardware.
And then we add the software and the operating system the security stack.
And the services.
We even provide basic apps and we compare that to on the right side you see a mobile phone to give analogy how would that work. If you have your smartphone Daniel to get the platform, including sensors connectors, you'll get the operating system, including the security the baggage connection the ability to store data.
In the backend into analyze it but.
And also <unk> are provided in the device. The same is in our business. So we are not only providing the platform. We are providing basic app. What are basic basic Africa example, charging billing calibrated DC metering.
Connection to begin to skate assistance.
From our customers and partners.
So they can.
Operate our platforms out in the field and that's the way how they can scale.
Important will be and we will see that later now after the initial installations have been done we see that the services are getting more and more important we have.
Towards that when we.
Made the pipe presentations before our this deck and we mentioned that the service will come after the initial installation and setting into operation phase.
The reason is availability and maintaining the platform and offering services to adapt the platform to all of the changes we see in the.
Let's say all electric world out there Thats key.
To operate your business and to make revenue out of the investment that is important to understand and that applies for all of our platforms, whether it's battery buffer chartering.
Whether it's.
The battery system, including the controls on that side.
This is also the reason and many people are asking US why are you not offering non battery buffer charter.
There is a market for non battery buffer chartered it is just converting AC to DC on a high power scale.
The reason is that we believe we need to have the multi revenue streams, so not only one business model.
Transferring AC to DC.
We want to offer our partners and customers revenue streams coming out of grid services peak shaving whatever else might be.
In the future available for grid.
Flexibility services.
And in addition for sure charging with the battery weekend also offered to use the local generated electricity, which makes it in.
In total cheaper more convenient and so better for the end customer next page. Please.
Yes.
So.
I don't know, whether we see now it takes a little bit a few seconds.
Now we see the next.
Before we go into the financial details.
First let me talk about some operational highlights.
We communicated last year and I will pick up on that one slide later.
About the issue in the supply chain.
I think that has been a common problem.
Got hit by some major components. So we have not been able to for example, 10% Pcbs and then if you don't have a PCB then the complete and Vito or whatever it is.
Cannot be cannot be made so we started then passport.
Which.
Did a very good job. So finally by end of the year. Many of these issues have had been solved and we see later how that turned out.
<unk>.
In terms of how many products, we have been able to produce and how we.
Overcome.
The supply chain issue and where we are today. The second thing, which was very important for us in 2022, I mentioned it already for US. It was very important that we don't do not delay or postpone the launch of the charge port.
We have announced the charge poised for 2022.
For Europe , and we delivered the charge force in the launch in 2022.
Paul to ship the first systems in 2022 through our initial customer.
You'll see here on the picture.
A real example, which is in front of our office.
Where we also get an impression about the advertisement screens and in the opportunities arising out of that additional business.
As I mentioned the charge port will besides the charge folks have.
There is significant part in our portfolio and also for the <unk>.
Future business and revenue stream.
The reason is and we will come to that later on we see more and more demand for supercharging and not only on the Autobahn on.
Discharge path, but more and more in the city close to the.
Office buildings or industrial site.
We'll see that later in the presentation.
Strategically we are focusing on blue chip partners and strategic customers.
The business model of <unk> is not to operate the units by Alastair the business model is not that we are selling electricity to the end customer or managing the local regulation our businesses, providing the platform the services and to enable these partners. So that they can scale there.
Business.
Saying that it ends up in the focus on these strategic partners, having not only five or 10 sites.
They rather have many and so we can scale with our customer.
And the customers are using the benefit and the.
<unk> opportunities of these which are provided by these platform and integrated in their own software and that is the reason and we need to understand that that it takes time to integrate the union into the business and into the software into the business model of <unk>.
Our partners and customers.
We call them.
Internally the future power companies, because we are thinking about that segment for example classic.
Established utilities, but also oil and gas companies.
And ending up with new codes coming out of the digital energy management segment.
Know how to for example, us flexibility in terms of buffer.
And combine that with four two <unk> Tyco grid services and then operate.
Manage these units in the larger scale. So these are our customers and our focus is going more and more to these bigger and strategic.
Partners and that is what we did in 2022 and as I mentioned to get into such a customer that has not been so the sales cycle is not just yet.
And the unit and they do one or two tests, it's something I always say, it's like a pregnancy, which takes nine months and you try to shorten it then it.
It might not and good so the same is here when we.
Go to a new strategic partner or customer. It takes time, it's not a product that you sell off the shelf on the other side. If we are in the business together with our customer base. Both sides have a long term relationship which is important for both.
Parties in the business, we have a business over long term, providing the technology the services and the add ons and the data access to the data in our customer they have a partner where they can rely on over long term periods. So the investor demand is not trended they can use it.
Even if the conditions and the power metals might change next page group.
Okay.
Okay.
Yes.
Please let me let me start.
Before I hand over to Wolfgang our CFO , where do we come from what has been the last communication and where we are now.
Respectively end of 2022, so the.
The press release or the statement in September 22 has been that our revenue projection will be above $80 million for 2023.
That was based on.
<unk> order book and on a on a secured production capacity in our factory than out of suddenly we had the problems with the supply issues, we communicated that immediately in October .
As soon as it came up.
And we said that we have to cut the protection because we needed to.
To get the material or the components and to get that sort of now what has happened between October and end of the year.
As I mentioned, we have our team has successfully managed.
The major supply issues and that has been material hunting, where can we get the missing parts, which ends up in brokerage and other things, but now and that is the big advantage of <unk> due to our ability to act and to make all changes even down on the PCP level.
We did and that was the big.
The challenge for our technical people, we have been able to replace components.
And here I think that's a big point also for our customers that just in case if we.
Hit our come into situations like that but material shortage could be because of a situation like now which is.
As we know from Covid.
The one the Ukraine or whatever might be part of the part of the reason, but in many cases over time components are phasing out and here we see.
That it is important in that it is a benefit if companies can then.
And change even on the low level PCB.
Our site and that's what we did so in the remaining months out from October to end of the year, We produced systems and performed services from the factory the factories.
Germany, and the U S, where we have started our site in <unk>.
That has started with services and warehousing.
We have produced.
Sure.
Here.
Number which is now it's not.
On the corporate level budgets.
The <unk> level of $45 6 million Euro and we shipped finished goods.
To the U S. Before year end, what has been our target. So if you calculate the ships and the time to ship it to the U S and you get an impression and how much pressure, we had and what we finally have received in this difficult situation.
Unfortunately clients have not been able to take the product by 12 by end of the year and that has been the reason why we will see also in our financials.
We have shipped them into finished goods.
The high end of the year in our warehouse and in the U S.
The facility and will now be moved in 2023.
And with that please next page.
I am.
I'm pleased to hand over to Wolfgang and he would go now into the details in the financials, where we will see what that means because.
Wolfgang.
Okay.
Yes, Thanks, Thomas and good day to everybody.
After covering our full year results 2022, including revenue operational expenses EBITDA and <unk>.
Cash I will provide guidance for this fiscal year full year 2023, and respect to revenue order book and profitability.
As Thomas already pointed out we successfully managed the supply chain crisis in the second half of 2022, we were able to produce systems and perform services of $45 6 million out of our factory locations in Europe . This set.
We were impacted by certain clients not taking products by December 31st.
This means that our full year revenue was $26 4 million Euro down $6 6 million Euro from fiscal year 2021 revenue of 33 million Euro the decrease in.
And revenue from contracts with customers for last fiscal year in comparison is mainly driven by lower than expected sales in the United States and also of course, the supply chain pressures we faced.
During the course of last fiscal year.
From a product perspective, the majority of our sales like in previous years was generated by our charging products charged boxed uncharged post also included already as Thomas pointed out we sold charged Postbank revenue charts post last year, which accounted in total the charging products for 74% of total revenue.
New commercial and industrial products service and others were 26% of our total revenues.
From a geographic perspective, 2022 revenue was 74% from Germany, and 26% from other European countries and the United States of America.
Turning to gross profit and loss.
Our full year 2022 came in at negative $4 5 million Euro down from negative $2 3 million Euro and full year fiscal year 2021.
Reduced gross profit mainly resulted from higher than expected supply chain costs and lower output.
As you remember because of material shortages at some of our suppliers, we had to revert to brokers to complete our customer order. Since then we have redesigned our supply chain and we are comfortable that we will return to gross margins as we have seen in the past.
Secondly, the build out of our manufacturing facilities.
Both in Europe , and the United States led to an increase of payroll related cost in the cost of goods sold.
Coming to operational expenses, we saw a significant increase in sales general and administrative expenses.
Full year 'twenty two in comparison to 21 SG&A expenses accounted for $31 3 million Euro in 2022 compared to $13 3 million Euro in full year 2021.
Legal and consulting stayed on a higher level because of the merger with USG and being a publicly listed company now. Please don't forget we are it's the first year 2022 for us being a listed company the first full year.
Personnel expenses were increased because of the buildup of our production facilities in Germany, Our U S presence in Auburn, Alabama, and general growth of the business.
Furthermore, the first time recognition of stock option expenses accounted for $2 8 million Euro and insurance expenses, including the necessary D&O insurance. This is a public company were $2 3 million Euro.
Our operating results came in at minus $36 4 million euro compared to minus $18 6 million in full year, 'twenty, one, adding back depreciation and amortization of $464 3 million Euro.
Resulting in EBITDA of $32 1 million euro for fiscal year 2022.
The finance income of positive 25 million Euro was largely driven by income from the re measurement of warrant liabilities and foreign currency gains because of the stronger U S dollar compared to the euro during last fiscal year.
Our results for the period net income.
Is minus $18 9 million euro for full year 2022.
Quickly turning to the balance sheet inventories rose to $40 1 million euro driven by that the reasons mentioned before and higher than expected business volume in the coming quarters trade and other receivables increased to $17 7 million, mainly driven by higher trade receivables trade.
And other payables went up on the credit side of the balance sheet because of growing deposits from our customers.
Our cash balance is $34 4 million euro from down from 101 8 million at the end of 2021. This was driven by higher working capital and operating losses as commended on already.
Next slide please.
Yeah.
Okay.
Now, let me come to the outlook for fiscal year 2023.
For this year, we expect revenues to exceed $100 million Euro. This target is underpinned by a strong order book of 90 million Euro and binding orders from quality customers and of course by the substantial growth. We currently see in the market driven by strong cash.
<unk> dynamics and the general development towards electric mobility, and fill due to reduction of initiatives all over the world, especially in the countries. We are focusing on which is Europe European Union U K and the United States of America and Canada.
On those revenue levels exceed.
Exceeding $100 million as I said, we will be it will be the highest revenues in the company's history. We are expecting also a breakeven to positive EBITDA.
Before I end, let me report on a very important event and achievement after December 31.
Which were also published today at 6K on the SEC website, which you can access through our website.
On may 5th area take energies and entered into an unsecured shareholder loan with multiple shareholders amounting to a total of $12 9 million.
U S dollars thereof, $7 1 million.
On.
Maturing on June 30th and $5 six of 2024 and five point.
$8 million due on December 22nd 2023.
Shareholder loans can be drawn down by <unk> energy as required.
This strengthens our balance sheet and is a strong signal and commitment by our shareholders.
Needless to say, we are not intending to raise equity in the next foreseeable future.
A quick look at 2024 and beyond before I give back to Thomas we anticipate substantial growth driven by very strong customer dynamics and market trend for 2024, So a very positive outlook here and with that I'll turn back to you with Thomas.
Thank you Wolfgang and I think we can see here on that slide that the strong order backlog of $90 million and what we expect in revenues, it's very close so.
We want to be on.
On our side, where we really see that that can happen due to all these.
Based on all of these things we cannot calculate like we saw last year.
Me go into the details and why we are so positive in terms of what whats coming in whats next and one thing we just.
Just announced a few days ago, we are working with our partner <unk> since many years.
Having the same vision and enjoyed this one of these future power companies using our product and running their business case on the platform.
I don't know whether you have seen it but it was.
Published in many main media that.
Georgia has now to get a lot of funding they have received.
$150 million now and they have a pretty significant and big growth plan over the next year.
And we received directly.
Awesome.
Difficult double digit number of chart polls. So we start with just the growth now in in Europe and also in other countries. So if you if you.
More details about that then.
Two the joint website.
The press releases.
We see here more recently CEO and myself on a site in Stuttgart, where I will later give some more details about the utilization in the performance and then that gives us an impression why the technology and the battery Buffett supercharger makes a lot of things, especially in.
These kind of areas downtown and.
We closed two factories facilities office buildings and even.
In the countryside.
Another thing, which is important for us.
And I mentioned it at the beginning is service.
We see not only was joined but also with other infrastructure investors, where we are either in negotiation or have already contract.
That service will play a very big role.
We expect.
More and more service contracts to be signed on long term service agreements.
Because it is necessary and it is key that the unit available we see that in the complete EV business there.
People are only accepting.
<unk> been always on and providing the electricity or the chartering capacity been requested by the car.
In the service business, we have three models.
Which can be negotiated in detail then about what data shall be offered.
Access to our cloud is required.
Are you asking just for a second level.
Our support to a third level support so here we can have.
A little bit tailor made adapt our services and offerings to our customers and partners need which allows them to integrate.
Not only the hardware with the interfaces, but also the business model and the services in their own business model and that is slightly different from from partner to partner because they are running already.
Infrastructure software packages back end systems.
Trading.
Trading accounts for electricity and two it's important to bring these together and we see here are more and more coming business over the next year not only with new customers, but also with existing ones, who we expect are where we expected they are jumping on the bus too.
Get the services for long term period next page please.
Okay.
Expanding the business is one one of the key things and let me just say something about that.
The infrastructure business, how we call it is getting more and more important infrastructure means.
First of all of quarter charge parts, which are directly connected to the grid in almost all of the of the two days installations, that's not our business, we see that from these major suppliers charge parts, along the highways and <unk>.
We are focusing on the deep central side and there you need infrastructure partners. Because this is in park houses this as I said.
To the buildings to the real estate.
It is always linked and combined with infrastructure.
Not only.
Related to tight but order to the regulation.
You may have to apply for it you knew may have different local regulations.
Can depend from.
Grid provider or from the electricity company and order all of that has to be.
<unk> taken can and that is exactly what our partners are doing and we have explored the market and one segment, which is important for us that is the rental cars in the fleet business.
I am proud to.
<unk> announced today that we have one for <unk>.
Really relevant and leading rental car company, which has now taken the first unit for Ford.
For there.
For the site.
And we know and have read in the news that the rental car companies now with more and more into the EV in the electric powered.
Offerings to the end customer and therefore, we can imagine how many charging.
<unk>.
Opportunities we need to.
When we go on vacation and we pick up the car than we need.
We need a supercharging opportunity because nobody wants to wait for our test to.
To go to.
The hotel level wherever it might be the second thing, which is important for us and that said, we are concentrating on blue chips and strategic customers.
We have been able to sign a framework agreement with the Blue chip lifted oil and gas company.
We.
Okay.
We call them also the future power company as I said at the beginning because all of these companies in the transformation.
Not only from this year too.
The reduction, but also from what is coming up in the all electric work and for US it's important to be also in this space.
It took us many many months to get that contract.
Diamond we are proud that this is another partner, where we expect the first deals now kicking in in 2023 as well.
Next page please.
Okay.
Okay.
Yeah.
To understand why this business is really strong and it's getting stronger I want to share with you. The proof that has been made and here we see three sites.
In Hamburg, Stuttgart, and Frankfurt, where the top boxes are installed with our partner here in the example, it's Stuart.
We see that the utilization rates are really going in a high level and a lot of people have not expected that battery buffer charges are able to provide such a high utilization normally in all of the discussion Pete mentioned.
There is a better insight to charter so okay. We have understood that we can charge into on a battery when the car shows up the battery will drain, but it takes time to recharge the internal battery. So the utilization must below and here. There is one thing which is important if we just take the number.
The expected number of Evs in 'twenty, 'twenty, which is.
The plan for the U S United States as well as for the European Union then we.
It took about 33 zero million of pure Evs in 2030, so that's the way to go but if we took take that number and we say.
The amount of electricity, which is needed to operate and run these 30 million cars and now let's take a bigger one so.
The Tesla model S or something like that.
That ends up in.
The demand for electricity, which is about 99 zero terawatt hours a year.
That is not really a lot if we talk about electricity. So one room move which is natural is that we don't have the electricity. The problem has to do we have it everywhere anywhere and do we have it in the necessary power quality on the rates that we can chart within reason.
At the time.
And if we take these 90 terawatt hours and cut them down then we know that one third will be charged at home.
Say low power destination offices is the next third and one third is expected to be charged on the go which we call Supercharging, our ultra high power charging where it's relevant that you don't have to wait if.
If we talk about that a third of 90 Terawatt hours, then that is 30 terawatt hours.
If we just take for example, the European Union that would mean that the amount that the demand for <unk>.
$30 million cost being out there be from Portugal to Denmark from.
Eastern Germany, Great Britain, so widespread at.
Area, having that demand for what we need is we need a decentralized.
Installed base and now we come to the conclusion, if we have chartered in.
With our high density than the utilization is even going down it's not going up and that is what we see here. If we're reaching with our battery buffer chart, China utilization rates in this range why do we need.
Except of highways and where people are charging bumper to bumper 24 hours, where do we need then great expansion, which is expensive and.
And might be used only.
A portion of the year next page please.
And in saying that I want to go a little bit deeper.
To explain.
The.
Here, we see so this is.
And that we understand why is it so important and why is it to power for battery buffered charges.
Being able to provide this performance.
This is now the approve and it's the timeframe its obsession of one call on the call here.
Chart 25 minutes in the 25 minutes.
68, almost 70 kilowatt hours of energy has been delivered and the power rate was pretty high it went up to 268 kilowatts or that is.
Let's say the upper level.
Of the charging power, which is which has taken today from a car we see on the right side is the dark blue shaped.
Area that is what we get from the grid. So in this case.
The grid connection was.
The remaining capacity we have we got was a 100 K, but we see that the car at the beginning and then over that period of time what is it.
20 million, something like that or 80 minutes.
The cause asking for more than more than the 100 kilowatt hours.
Kilowatt and that is the light blue shaped area. In this energy is provided by the internal battery and we see in the Green segment. That's the second graph, we see how the internal battery drains and.
And what we can see that until.
The demand from the car hits the.
Supply from the grid.
We are only dropping from a state of chart from 100 to let's say roughly 80, it's above 80, and then we are already recharging the internal battery. So it's kind of a breathing system, where we only need for specific time, where we boost the demand of the car.
But for the user it's a great experience because in these 20 minutes he can charge.
30%, 40%, 50% more of electricity that save time. It makes it very convenient and you can do that almost anywhere.
Site being available.
It can be used for private charging which allows US then to integrate our own photovoltaic we know how expensive electricity now is we know in Germany for example.
Now that it's in San Francisco, the same debt so long on the rooftop is good.
Getting it is a mandate.
If people have been solar generators on the rooftops. It makes absolutely sense to use this year to free in this cheap electricity.
On your own premises on your own site.
Battery buffered Chacha. They have you know in more than one one way they give you a super charge, which is convenient but at the same time. They help you storing your own electricity and using.
What you have harvested on your own site.
Next page please.
And the question now is from for many people. Okay that is a one shot with one session, but what if there is more than just one session and this is real data.
What we see here and we see a timeframe frame of one week.
The 13th of March until 20 <unk> of March.
And we see in one week and that is now it's currently it's installation and script count.
139, charging session ending up in almost six megawatt hours of delivered energy to to the cost and what we see here.
The Blue line the spikes the charging session.
We see that the power.
Went up to 268 as well though.
To the premium costs have been used and go therefore charging.
But more important is that we only see one that the internal battery dropped down to a level, which is it's not zero, but its close so it went down Pat.
And that is for this investment six megawatt hours. If we just assume that example, and we would sell the electricity and 0.65%.
Per kilowatt hours that would end up in a room.
Revenue from discharging of almost 4000 euro weak and on an annual basis, and roughly 200000 or whatever.
<unk> taken the utilization over the year, but what we want to show here that the idea of when we presented that when we started together with positive eloping that product now nobody had the real data and in many many discussion also during the pipe presentations.
I made the question was okay. What if there was one car charging we understand it but therefore it very expensive what if there are more than one and in combination with what I just mentioned about now.
If we really have $30 million cost out there and there will be more charging opportunities than we really need. So there will be a distributed utilization for the charges and people will always charge with convenient and words cheap.
So we will get the distributed behavior and that means at the end only making revenues out of selling electrons might be another business on a new site.
Very high frequented sites on the Autobahn.
For sure, but we want to charge wherever we are.
Next page. Please this is something we see now on our customer base and <unk>.
I'm proud to show you. Some examples because it's always about pictures and what they tell us.
Where we see.
That is really and just some impression tier.
Picture.
On the other side of the of the slide that's the new headquarter of portion.
Deposit tower in Chicago, it's their flagship store in that building has been completely.
It's completely new brand, new and even there they decided to put two charts boxes in front of the main entrance.
Together with <unk>.
For dispensers two of them are public two of them are only for internal use for Porsche, but we see even in even in this infrastructure.
And that's the flagship store.
Many many people are coming in and where people are ordering cost for test drives.
The charge folks has been chosen.
And not a grid connection we see on the left side the Green picture business.
Our fleet in Australia.
And why has that picture to explaining to you in the earnings call because I see a very strong business coming from.
People owning office buildings in fleet.
Normally everyday every company, having more than 200 people a fleet of 20 <unk> cut in the upcoming future. They will they must have evs.
Let's say, 20% 30% of the.
Total amount will be pure evs.
And in that case, it absolutely makes sense that.
The management the guests employees can charge just in case order in a short period of time for sure you will have the low power Chargers and on that note.
<unk>.
But here, we see they have a fleet and the fleet must be operated 24 hours and therefore, they cannot they cannot afford to go.
Supercharge park whenever they need to recharge and that is why they needed a charter at their own.
Emesis insight and here, we see there is very less space.
But the charge folks can handle debt. So it's easy to install we can split the dispensers away from the charge booked and that's exactly what they did and not again talking about additional business models, which I mentioned, its only charging and even then it makes sense.
Modern buildings, and we talk order to real estate development companies. They will in the future not only offer an elevator.
Or an air condition. They also will offer.
<unk> and NAND, we see here the gas stations I don't want to mention that in detail, but here, we see also in Berlin downtown.
Ripped out the vacuum cleaner put into the expenses and the cube.
Just close to the transformer.
When you have an upgrade for gas station next piece.
Important also to Linda mentioned.
Mentioned that is the.
Is the opportunity to charge downtown and wherever people are and that is mainly what we see here, whether it's fast food restaurants.
On the left side, one one more gas station, but on the right side. We also see a residential area in Spain in Spain.
Normally the grid connection is very weak most of the people have only a single phase connection to their private homes. If know evs are kicking in and people getting easier.
As the private car, where do you charge.
And the average people are driving is about 200 kilometers of week. So if you share charter like the charge booked in the community or an apartment house condominium when people do that once a week and that only about 50 charters charging stations a year, if we calculate that so they can have a share.
Service interesting case, when you come home you.
You make a brief stop whenever it's needed and you fill up your car in let's say 10 to 20 minutes and checking your E. Mail. So you don't even get out of the car and we expect that to be more as well together with our partners and installers and infrastructure developers.
Because now cities are always.
Asking about chartering infrastructure not only the level two low power charges, where people need to stay seven to 10 hours or more next page. Please.
Yes.
Now, we speed up a little bit so that we have time for Q&A.
We see here and I mentioned it at the beginning that we are now going into different segments of the gas stations. We mentioned already ordered the fast food restaurants here, we see another ones on the left side that is now.
Our construction company and the owner of the company is well known here. He got his first <unk> in the first decision. He was taking 80 is that I need the turbocharger directly on my side I am not willing to drive to a park it must be convenient for me from a customer for my employees, we see that on the <unk>.
Left and the funny thing is at the beginning he opened it for the public and then it was still occupied that he needed to close it again.
Because it was really a hotspot.
Next page please.
And that shall be then also my last one before I hand over to Q&A, but I just want to give an impression of what is in front of us.
Some time it took time to get the technology done to develop everything to get the production up and running we have.
Recently, we had.
Or are we having that all the time that infrastructure investors want to see the facility quality. They are doing due diligence on our.
Also production.
Quality assurance, because if you really scale than that as important as what we see on the left side and that is it has been already communicated that as a site of our new partner Empyreal Imperial is the daughter company of <unk> acid.
Management.
<unk> infrastructure fund, having owned sites and also.
Other sites and we see here the first installations. They have ordered 100 units now.
Of the charge port and we see even existing parking spot. This year with parking house can be can be expanded or can be equipped with a supercharged and therefore, the charter portfolio touch points is the right solution.
Not only cars and this is now what I wanted to mention that the segments.
Going to be expanded we see trucks here.
Apple picture is.
Truck in the Netherlands.
Where we see now that this business is always going to be electric.
In the light that we can charge up to 300 K.
And on the right side, we see it.
But that's the buses which is operated in Luxembourg.
And last but not least.
The building business.
We see sport boats, but even even bigger boats now being fully electric and delay on the lakes.
And we expect that more and more legs will request.
E E.
Electric powered boat.
So further water sports and that is the first installation for our team is if youre interested youll find on Google If you type in a team is in charging station you will see these pictures as well so before we run out of time. Thank.
Thank you for listening to me and I want to summarize so from that.
We really see now that the business is ramping up in different segments as I tried to show because it always to see what's happening in not only.
To hear it and I wanted to point out how how solid and how powerful the services and the performance of the system itself are in.
What they can deliver also on the utilization side with that thank you very much and I want to hand, it over to Q&A.
And.
Who is taking over that.
Thank you.
We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
If youre using a speakerphone please pick up your handset before pressing the keys if at any time. Your question has been addressed and you'd like to withdraw. Your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
And a reminder to ask a question you will need to dial in with the telephone details already provided.
The first question comes from.
Pavel.
But ross.
With Raymond James.
Please go ahead.
Thank you for taking the questions and appreciate all the detail in Europe .
Comments earlier.
Let me first ask about the outlook for 2023.
The $100 million of revenue that you are expecting.
How much was a regionally.
Suppose to have.
<unk> com.
In 'twenty two.
Okay.
Yeah, Hi, Pavel our U.
Nice talking to you.
So we of course hard to assess an infrastructure business how much you know.
Shifting from one year to the other.
Give it over to Thomas just from some strategic aspects to the us GAAP harvests.
This is.
We took out from last year, because I mentioned that we had problems by end of the year.
The units, we have produced but so far have not.
They have not gone out to the customers. So we have been very conservative on that so last year. If we take that on top it has been more let's say me that one.
It has been water we have been conservative in this case.
Okay.
Can you share how much.
Because we're now in May can you share how much.
Revenue of approximately you had in the March quarter.
No.
Yeah, Hi, Pavel we are currently not not sharing any quarter information because we just finished the fiscal year audit.
And we are now focusing on the numbers of the first and second quarter and as you know like last year, we will come out with half year numbers.
<unk> already.
Okay.
But here you are asking.
Sorry go ahead. Please go ahead.
No I just wanted to say that in the press release, we made today that we also have stated that.
Other new customers came in the volume we have also disclosed so if you look at that.
Take all the information you get.
You might get a picture, but we are not able to.
Two communicated now.
Okay.
What is the geographic mix.
That you anticipate.
In 2023 revenue between Germany.
Other Europe and U S.
Yes.
Spectating is that in the U S.
We will be percentage, it will be 10% to 15% because why.
We we started in Europe .
Many years earlier than in the U S and it is important to understand that and I tried to mention that at the beginning of the call infrastructure businesses. Another off the shelf business you have to get into detailed communication and testing phases in all the approvals even if the system is there.
The fact that doesn't matter it takes time and we see in the U S that we.
Have a strong.
Pipeline, but we started with initial installations and testing and approval sites and that is the reason why I think.
That is the plan that the U S will have a delay in the growth, but it will be a huge market and that is the reason why we have and that has been the right decision to start in Alabama.
We have made the right decision to have our own service station in the U S. Because systems are out and running in the U S and not less.
And.
If you may have.
About 2023, so my expectation would be between.
10%, 15% in the U S, but that's not.
At the end at the beginning.
That's difficult to understand because.
If you if you start a new business in the new in a new area with a new market with.
Not many evs now out in the market then it takes time and we saw exactly the same in Europe and in Germany into finally answer your question about Europe .
We see it will be a distribution between Germany and also the other European countries, including Switzerland and Austria.
And we also see that Great Britain is a big opportunity the detailed share which of the country will take what I cannot even say because when we are and that is our business model delivering to our customers than normally.
That they have the site and we don't even know exactly today, where they are installing the units. So just an example for you if we get an order of 100 units from <unk>, which is the case then we do not know today, where the installation will be so I just cannot tell it now.
We might tell it later when the installation has been done.
Okay. My last question is.
Can we get an update please on the residential.
Energy product that you have been.
Working on.
Yes.
No.
<unk> already communicated we have not stopped working on it.
On a lower level.
Of priority, because we need all our resources for 2022 as I mentioned first of all two for the replacement on.
To rescue the material issue and also to get the charge port out as planned so that is fine.
A resource issue in the segment, we are now observing.
That the whole market is booming.
Myself I'm, the president of the German energy Battery storage Association, and we see that now more and more.
Off the shelf products also from Asia are kicking in and we are a little bit in our observation rule, because and now we're coming back to the business model for <unk> taken our our few it makes only sense. If we can get into business partnerships, where we cannot where we are not.
I only asked for the hardware and.
The basic software, but for the complete.
Hope, including services and long term business cases, if it's only going into the business and the direction of bulk well.
Where price is the main focus then I think we should reconsider and mainly concentrated on the business, where we see that the company's strategy can fully play out.
Have we stopped it no are we pushing it right now no as well and are we a little bit.
Or are we observing what the market is doing yes.
If we look at the.
The new companies out there you might have seen that you now can order over the internet and installers are picking up the systems and we have seen now that they'll get China deliveries directly on.
On their premises or on their side. So there is nothing in between anymore and Thats the reason.
Part of why we are here a little bit.
In a.
Careful.
<unk>.
Not bullish role for the company, we want to go into business, which is core for agency.
Okay. Thank you very much.
Thanks Paula.
The next question comes from Matt Summerville with D. A Davidson. Please go ahead.
Hi, This is Kevin is untrue, Matt Summerville, Thanks for taking my questions.
Youre welcome.
Just in your pathway to sustained free cash flow productivity, how much incremental capital before the meeting.
Could you repeat it.
Because I couldn't really hear you.
Sorry about that and your pathway to sustained free cash flow positivity, how much incremental capital do you foresee needing to make that happen.
As we said, we do not anticipate any increase in equity in the foreseeable future.
So if we achieve our goals and targets, which we have communicated in the call we're not envisaging to raise additional equity.
Thank you.
Could I get a little bit more color on potentially why customers were not picking up orders from Alabama.
Yes, yes, yes, you can.
As Thomas pointed out some of the customers in the United States.
Have not picked up to some of the products and we as will pointed out we are an infrastructure business.
Of course, we have to be careful because we cannot name of our customers and we should not.
Give any hint as to who they are but in infrastructure, we see cases in which customers.
We're not successful acquiring sites were not successful acquiring both public and private funding and therefore.
They could not take the systems at that point, that's let's say in a nutshell commerce, but it is isn't it.
Yep.
Great. Thank you for that color.
This concludes our question and Ed.
Yes.
No.
Please go ahead operator.
Thank you. This concludes our question and answer session I would like to turn the conference back over to Wolfgang Roma for any closing remarks.
Okay. Thank you operator, ladies and gentlemen, the sensor our <unk> 2022 earnings call. Thank you very much for joining and for your continued interest in our business stay tuned and have a good day wherever you are.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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Okay.
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