ADS-TEC Energy PLC Q1 2023 Earnings Call

Operator: Hi, everyone. Welcome to ADS-Tec Energy's Full Year 2022 Earnings Call. A recording of today's call and a presentation can be accessed shortly after it concludes from the investors section of our website. Joining me on today's call are Thomas Speidel, Founder and CEO of ADS-Tec Energy, and Wolfgang Breme, CFO of ADS-Tec Energy. Today, we will be discussing ADS-Tec's latest financial results for the full year 2022, guidance for 2023, and conclude with a Q&A session. Please note, to ask a question, you will need to dial in with 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.

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.

Operator: These forward-looking statements involve risks and uncertainties, many of which are beyond our control and could cause actual results 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 IFRS and non-IFRS. We use non-IFRS measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the IFRS measures that we provide.

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.

Operator: A reconciliation of these non-IFRS measures to comparable IFRS 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 Thomas Speidel, ADS-TEC's founder and CEO. Thomas?

<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.

Thomas Speidel: Yes, thank you very much. Very warm welcome from my side and from Wolfgang to this call. I'm happy that you take your time and go with us through this earnings call. Let me start with some information about our product portfolio and where we are. As I guess most of you know, the ChargeBox is the product which is already out there in the field, and which is our battery-buffered supercharger, 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 ChargeBox 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.

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.

Thomas Speidel: The second product segment, also battery buffered charging. We have announced it, and we are proud that we made it on time last year due to all the difficulties in supply chain and shortages. It's the ChargePost. The ChargePost, similar technology, so we can connect to the existing low-power grid. In this case, it is an all-in-one solution, so no separate dispenser. We added up to two big advertisement screens, which allows us to offer our customers more revenue streams. This is very important to understand the ADS-TEC business model. We are not a component supplier, we are providing platforms, including hardware, software, and services over long-term periods that allows our customers and partners to operate their business to the end customer. ChargePost has been launched as expected 2022, and we also will see later a little bit more information about the ChargePost. It's very well-received.

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.

Thomas Speidel: We have presented it the first time on the new exhibition in Stuttgart here, Volta-X. Mainly from infrastructure investors and operators, we get a very solid feedback. The reason is, it is easy to install. It is providing many different revenue streams, and as I said, in this case, the advertisement comes on top of it. The ChargeBooster. These two segments, ChargeBooster and StorageRackSystems, that is our commercial industrial business, which we are doing since many years. Here we have updated and expanded our portfolio. New batteries as we have announced it, new cells and modules came in. This year, 2023, we are starting to deploy the new and expanded systems to the market. Next page, please. Don't see it?

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.

[Company Representative] (ADS-TEC Energy): It's not.

Okay.

Thomas Speidel: What we see here, and that is important to understand and to know, why is it important that when I speak about we are not only a component or hardware company, it's a platform business, eco-platform business. We see that here, the circles. We start with the hardware. That is important because if we don't understand the hardware and if we don't have the ability to act on any level of the hardware, we cannot provide long-term services. This is what, in current discussions with customers, and if I may say, I am in that business now for 12 years. At the beginning, people were starting with demonstration units. We had first projects or with very early-stage customers. Now that is changing. We are talking more and more to infrastructure investors, which are interested in investing in a larger portfolio.

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.

Thomas Speidel: That portfolio must be managed. As you know, if you listen to our general business model, we want to be the partner for these operators to run the business not only for years but for decades. Very long time periods. That requests that we can act in hardware, software, and it ends up in services we are providing. We see in these circles here on the slide, we start in the center with the hardware, and then we add the software and the operating system, the security stacks, and the services. We even provide basic apps, and we compare that on the right side. You see a mobile phone, just to give an analogy how that works. If you have your smartphone, then you also get a platform including sensors and actors.

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.

Thomas Speidel: You get an operating system, including the security, the back-end connection, the ability to store data in the back end and to analyze it. Also apps are provided on the device. The same is in our business, we are not only providing the platform, we are providing basic apps. What are basic apps? Basic apps are, for example, charging, billing, calibrated DC metering, connection to back-end, to SCADA systems, from our customers and partners, 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.

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.

Thomas Speidel: We have told that when we made the PIPE presentations before our de-SPAC. 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. That's key to operate your business and to make revenue out of the investment. That is important to understand. That applies for all of our platforms, whether it's the battery buffer charging, whether it's the battery system, including the controls on that side. This is also the reason. Many people are asking us, "Why are you not offering non-battery buffer chargers?" There is a market for non-battery buffer chargers. It is just converting AC to DC on a high-power scale.

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.

Thomas Speidel: 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 or flexibility services, and in addition, for sure, charging. With the battery, we can also offer to use the local generated electricity, which makes it, in total, cheaper, more convenient, and so better for the end customer. Next page, please. 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, just 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.

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.

Thomas Speidel: I think that has been a common problem. We got hit by some major components. We have not been able to, for example, assemble some PCBs. If you don't have a PCB, then the complete inverter or whatever it is, cannot be made. We started then a taskforce, which did a very good job. Finally, by end of the year, many of these issues had been solved, and we see later how that turned out 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 do not delay or postpone the launch of the ChargePost.

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.

Thomas Speidel: We have announced the ChargePost for 2022, for Europe, and we delivered the ChargePost and the launch in 2022. We have also shipped the first systems in 2022 to our initial customers. You see here in the picture, a real example, which is in front of our office, where we also get an impression about the advertisement screens and the opportunities arising out of that additional business. As I mentioned, the ChargePost will, besides the ChargeBox, have a very significant part in our portfolio and also for the future business and revenue stream. The reason is, and we will come to that later, we see more and more demand for supercharging and not only on the Autobahn or on these charge parks, but more and more in the city, close to the office buildings or industrial sites. We will see that later in the presentation.

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.

Thomas Speidel: Strategically, we are focusing on Blue-chip partners and strategic customers. The business model of ADS-TEC is not to operate the units by ourselves. The business model is not that we are selling electricity to the end customer or managing the local regulation. Our business is providing the platform, the services, and to enable these partners so that they can scale their 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 customers. The customers are using the benefits and the opportunities which are provided by these platforms and integrate it in their own software.

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>.

Thomas Speidel: That is the reason, and we need to understand that it takes time to integrate the units into the business and into the software and into the business model of our partners and customers. We call them, internally, the future power companies, because we are thinking about the segments, for example, classic established utilities, but also oil and gas companies, and ending up with new cos coming out of the digital energy management segment, which know how to, for example, use flexibility in terms of buffers, and combine that with photovoltaic or grid services, and then operate and manage these units in a larger scale. 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. As I mentioned, to get into such a customer, that is nothing.

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.

Thomas Speidel: The sales cycle is not just yet that you present the unit and they do one or two tests. I always say it's like a pregnancy, which takes nine months, and if you try to shorten it, then it might not end good. 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 just off the shelf. On the other side, if we are in the business together with our customer, then 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. Our customer, they have a partner where they can rely on over long-term periods, so their investment is not stranded.

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.

Thomas Speidel: They can use it even if the conditions and the parameters might change. Next page, please. Please 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. The press release or the statement in September 2022 has been that our revenue projection will be above EUR 80 million for 2023. That was based on a solid order book and on a secured production capacity in our factory. All of a sudden, we had the problem with the supply issues. We communicated that immediately in October, as soon as it came up. We said that we have to cut the projection because we needed to get the material or the components and to get that solved. Now, what has happened between October and end of the year?

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.

Thomas Speidel: As I mentioned, our team has successfully managed the major supply issues, that has been material hunting. Where can we get the missing parts, which ends up in brokerage and other things. Now, that is a big advantage of ADS-TEC, due to our ability to act and to make all changes even down on the PCB level. We did, that was a big challenge for our technical people. We have been able to replace components. Here I think that's a big point also for our customers, that just in case if we hit or come into situations like that. Material shortage could be because of a situation like now, which is as we know from COVID or the war in the Ukraine or whatever might be part of the reason. In many cases over time, just components are phasing out.

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.

Thomas Speidel: Here we see that it is important and that it is a benefit if companies can then act and change even on the low-level PCB site, and that's what we did. In the remaining months from October to end of the year, we produced systems and performed services from the factory. The factory is in Germany. In the US where we have started our site in Auburn, that has started with services and warehousing. We have produced here a number which is now, it's not on the corporate level, but it's on the GmbH level of EUR 45.6 million. We shipped the finished goods to the US before year-end, what has been our target.

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.

Thomas Speidel: If you calculate the ships and the time to ship it to the US, then you get an impression 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 end of the year. That has been the reason and what we will see also in our financials. We have shipped them and the finished goods are by end of the year in our warehouse and in the US in the facility and will now be moved in 2023. With that, please next page. I am pleased to hand over to Wolfgang and he will go now into the details and the financials where we will see what that means because, Wolfgang. Yeah, here we are. You can get going.

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.

Wolfgang Breme: Yeah. Thanks, Thomas, and good day to everybody. After covering our full year result 2022, including revenue, operational expenses, EBITDA, and cash, I will provide guidance for this fiscal year, full year 2023 in respect to revenue, order book, and profitability. As Thomas already pointed out, we successfully managed the supply chain crisis in H2 2022. We were able to produce systems and perform services of EUR 45.6 million out of our factory locations in Europe. This said, we were impacted by certain clients not taking products by 31 December. This means that our full year revenue was EUR 26.4 million, down EUR 6.6 million from fiscal year 2021 revenue of EUR 33 million.

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.

Wolfgang Breme: The decrease in 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. ChargeBox and ChargePost also included already, as Thomas pointed out. We sold ChargePost and revenue ChargePost last year, which accounted in total the charging products for 74% of total revenue. Commercial and industrial product 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.

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.

Wolfgang Breme: Our full year 2022 came in at EUR -4.5 million, down from EUR -2.3 million in full year fiscal year 2021. The 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 orders. Since then, we have redesigned our supply chain. 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 in 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 in fiscal year 2022 in comparison to 2021.

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.

Wolfgang Breme: SG&A expenses accounted for EUR 31.3 million in 2022, compared to EUR 13.3 million in full year 2021. Legal and consulting stayed on a higher level because of the merger with EUSG and being a publicly listed company now. Please don't forget, 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 US presence in Auburn, Alabama, and general growth of the business. Furthermore, the first-time recognition of stock option expenses accounted for EUR 2.8 million and insurance expenses, including the necessary D&O insurances as a public company, were EUR 2.3 million. Our operating result came in at EUR -36.4 million compared to EUR -18.6 million 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.

Wolfgang Breme: Adding back depreciation and amortization of EUR 4.3 million, resulting in an EBITDA of EUR 32.1 million for fiscal year 2022. The finance income of EUR +20.5 million was largely driven by income from the remeasurement of warrant liabilities and foreign currency gains because of the stronger US dollar compared to the euro during last fiscal year. Our result for the period net income is EUR -18.9 million for full year 2022. Quickly turning to the balance sheet, inventories rose to EUR 40.1 million, driven by the reasons mentioned before and higher than expected business volume in the coming quarters. Trade and other receivables increased to EUR 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.

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.

Wolfgang Breme: Our cash balance is EUR 34.4 million down from EUR 101.8 million at the end of 2021. This was driven by higher working capital and operating losses as commented on already. Next slide, please. Now let me come to the outlook for fiscal year 2023. For this year, we expect revenues to exceed EUR 100 million. This target is underpinned by a strong order book of EUR 90 million in binding orders from quality customers and, of course, by the substantial growth we currently see in the market, driven by strong customer dynamics and the general development towards electro mobility and CO2 reduction initiatives all over the world, especially in the countries we are focusing on, which is Europe, European Union, UK, and the United States of America and Canada. On those revenue levels, exceeding EUR 100 million, as I said, we will be the highest revenues in the company's history.

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.

Wolfgang Breme: We are expecting also a break-even to positive EBITDA. Before I end, let me report on a very important event and achievement after 31 December, which we also published today as a 6-K on the SEC website, which you can access through our website. On 5 May, ADS-TEC Energy entered into an unsecured shareholder loan with multiple shareholders amounting to a total of $12.9 million. Thereof, $7.1 million maturing on 30 June, and $5.6 million of 2024, and $5.8 million due on 22 December 2023. The shareholder loans can be drawn down by ADS-TEC 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.

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.

Wolfgang Breme: We anticipate substantial growth driven by very strong customer dynamics and market trend for 2024. A very positive outlook here. With that, I turn back to you, Thomas.

Thomas Speidel: Thank you, Wolfgang. I think we can see here on that slide that the strong order backlog, of EUR 90 million, and what we expect in revenues is very close. We want to be on a side where we really see that that's going to happen due to all these, or based on all these things we cannot calculate like we saw it last year. Let me go into the details and why we are so positive in terms of what's coming and what's next. One thing, it was just announced a few days ago. We are working with our partner, JOLT, since many years, having the same vision. JOLT is one of these future power companies using our products and running their business case on the platform.

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.

Thomas Speidel: I don't know whether you have seen it, but it was published in many main medias that JOLT has now get a lot of funding. They have received EUR 150 million now, and they have a pretty significant and big growth plan over the next years. We received directly a new order, significant double-digit number of ChargePost. We start with JOLT, the growth now in Europe and also in other countries. If you want more details about that, please go also to the JOLT website on to the press releases. We see here, Maurice, the CEO, and myself on a site in Stuttgart, where I will later give some more details also about the utilization and the performance.

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.

Thomas Speidel: That gives us an impression why the technology and the battery-buffered supercharger makes a lot of sense, especially in these kind of areas, downtown and close to 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 with JOLT, but also with other infrastructure investors, where we are either in negotiation or have already contracts, 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 units are available. We see that in the complete EV business, that people are only accepting chargers being always on and providing the electricity or the charging capacity being requested by the car.

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.

Thomas Speidel: In the service business, we have three models, which can be negotiated in detail about what data shall be offered, what access to our cloud is required. Are you asking just for second-level support or third-level support? Here we can 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. That is slightly different from partner to partner because they are running already infrastructure, software packages, back-end systems, or trading accounts for electricity. It's important to bring these together. We see here, more and more coming business over the next year.

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.

Thomas Speidel: Not only with new customers but also with existing ones who we expect or where we expect that they are jumping on the bus to, also get the services for a long-term period. Next page, please. Expanding the business is one of the key things. 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 course, charge parks, which are directly connected to the grid in almost all of the today's installations. That's not our business. We see that from these major suppliers, charge parks along the highways and autobahns. We are focusing on the decentralized side. There you need infrastructure partners because this is in park houses.

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.

Thomas Speidel: This is, as I said, close to the buildings, to the real estate, and it is always linked and combined with infrastructure, not only related to the site but also to the regulation. You may have to apply for it. You may have different local regulations. It can depend from the grid provider or from the electricity company. All of that has to be Taken care, and that is exactly what our partners are doing. We have explored the market and one segment, which is important for us, that is the rental cars and the fleet business. I'm proud to announce today that we have one first really relevant and leading rental car company, which has now taken the first unit for their sites.

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.

Thomas Speidel: We know and have read it in the news that also the rental car companies now will go more and more into the EV and in the electric-powered offerings to the end customer. Therefore, we can imagine how many charging opportunities we need. Just when we go on vacation and we pick up the car, then we need a supercharging opportunity because nobody wants to wait for hours just to go to the hotel or wherever the place might be. The second thing, which is important for us, and I said we are concentrating on blue chips and strategic customers. We have been able to sign a framework agreement with a blue-chip-listed oil and gas company.

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.

Thomas Speidel: We call them also the future power company, as I said at the beginning, because all of these companies are in the transformation, not only from the CO2 reduction, but also from what is coming up in the all-electric world. For us, it's important to be also in this space, and it took us many, many months to get that contract done, and we are proud that this is another partner where we expect the first deals now kicking in in 2023 as well. Next page, please. To understand why this business is really strong and is getting stronger, I want to share with you the proof that has been made. Here we see three sites, in Hamburg, Stuttgart, and Frankfurt, where the ChargeBoxes are installed with our partner. Here in the example, it's JOLT.

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.

Thomas Speidel: We see that the utilization rates are really going in a high level. A lot of people have not expected that battery buffer chargers are able to provide such a high utilization. Normally, in all of the discussion, people mention, Hey, there is a battery inside the charger, so okay, we have understood that we can charge the internal battery. When the car shows up, the battery will drain, but it takes time to recharge the internal battery, so the utilization must be low. Here, there is one thing which is important. If we just take the number, the expected number of EVs in 2030, which is the plan for the US, United States, as well as for the European Union, we talk about 330 million of pure EVs in 2030.

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.

Thomas Speidel: That's the way to go, but if we just 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, assume it's a Tesla Model S or something like that. That ends up in a demand for electricity, which is about 990 TWh a year. That is not really a lot, if we talk about electricity. One rumor, which is not true, is that we don't have the electricity. The problem is, do we have it everywhere, anywhere, and do we have it in the necessary power quality on the rates that we can charge within a reasonable time? If we take these 90 TWh and cut them down, then we know that one-third will be charged at home.

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.

Thomas Speidel: Let's say low power destination at offices is the next third, and one-third is expected to be charged on the go, which we call supercharging or ultra-high power charging, where it's relevant that you don't have to wait. If we talk about that third of 90 TWh, then that is 30 TWh. If we just take, for an example, the European Union, that would mean that's the amount that the demand of these 30 million cars being out there be from Portugal to Denmark, from Eastern Germany to Great Britain. It's a widespread area, having that demand. What we need is, we need a decentralized installed base. Now we come to the conclusion, if we have chargers with a high density, then the utilization is even going down. It's not going up. That is what we see here.

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.

Thomas Speidel: If we are reaching with a battery buffer charger, 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, a grid expansion, which is expensive and might be used only, a portion of the year? Next page, please. Saying that, I want to go a little bit deeper to explain. Here we see it. This is, that we understand why is it so important and why is it so powerful to have battery buffer chargers being able to provide this performance. This is now the proof, and it's a time frame, it's a session of one car. The car here, charged 25 minutes. In the 25 minutes, 68, almost 70 kWh of energy has been delivered, and the power rate was pretty high.

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.

Thomas Speidel: It went up to 268kW. That is, let's say it's the upper level of the charging power, which is taken today from a car. What we see on the right side is the dark blue-shaped area. That is what we get from the grid. In this case, the remaining capacity we got was 100kW. We see that the car at the beginning and then over that period of time, what is it? 20 minutes, something like that, or 80 minutes. The car's asking for more than the 100kW. That is the light blue shaped area, and this energy is provided by the internal battery. We see in the green segment, that's the second graph. We see how the internal battery drains.

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.

Thomas Speidel: 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 charge from 100 to, let's say, roughly 80. It's above 80. Then we are already recharging the internal battery. It's kind of a breathing system where we only need for a specific time or where we boost the demand of the car. For the user, it's a great experience because in these 20 minutes, he can charge 30%, 40%, 50% more of electricity. That saves time. It makes it very convenient, and you can do that almost anywhere. On sites 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.

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.

Thomas Speidel: We know in Germany, for example, I know that it's in San Francisco the same, that solar on the rooftop, it's a mandate. If people are having solar generators on their rooftops, it makes absolutely sense to use this CO2 free and this cheap electricity on your own premises, on your own site. The battery buffer chargers, they help you now in more than one way. They give you a supercharge, 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. The question now is from many people, okay, that is a one-shot. We have one session. What if there is more than just one session? This is real data. What we see here. We see a time frame of one week.

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.

Thomas Speidel: It's 13 March until 20 March. We see in one week, and that is now, its installation here in Stuttgart. 139 charging sessions ending up in almost 6 MWh of delivered energy to the cars. What we see here, the blue line, the spikes are the charging sessions. We see that the power went up to 268 as well, also the premium cars have been used and go there for charging. More important is that we only see once that the internal battery dropped down to a level, which is, it's not zero, but it's close, it went down. That is for this investment, it's 6 MWh. If we just assume that's an example, we would sell the electricity on EUR 0.65 per kWh.

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%.

Thomas Speidel: That would end up in a revenue just from this charging of almost EUR 4,000 a week. On an annual basis, then roughly EUR 200,000 or whatever you take on the utilization over the year. What we want to show here that the idea when we presented that, when we started together with Porsche developing that product, nobody had the real data. 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's very expensive. What if there are more than one? In combination with what I just mentioned about, if we really have 30 million cars out there and there will be more charging opportunities than we really need.

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.

Thomas Speidel: There will be a distributed utilization for the chargers, and people will always charge where it's convenient and where it's cheap. We will get a distributed behavior, and that means at the end, only making revenues out of selling electrons might be not a business on any site. It might very high frequented sites on the Autobahn, for sure. We want to charge wherever we are. Next page, please. This is something we see now on our customer base, and I'm proud to show you some examples because it's always about pictures and what they tell us and where we see that it's real. Just some impressions here. The picture on the other side of the slide, that's the new headquarter of Porsche, the Porsche Tower in Stuttgart. It's their flagship store. That building, it's completely new, brand new.

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.

Thomas Speidel: Even there, they decided to put two ChargeBoxes in front of the main entrance, together with four dispensers. Two of them are public, two of them are only for internal use for Porsche. We see even in this infrastructure where, and that's a flagship store where many people are coming in, and where people are ordering cars for test drives, the ChargeBox has been chosen, and not a grid connection. We see on the left side, the green picture. This is a fleet in Austria. Why have I picked that picture to explain it here in the earnings call? Because I see a very strong business coming from people owning office buildings and fleets. Normally, every company having more than 200 people or a fleet of 20, 30 cars, in the near upcoming future, they must have EVs.

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.

Thomas Speidel: Let's say, 20% to 30% of the total amount will be pure EVs. In that case, it absolutely makes sense that the management, the guests, employees can charge just in case, although in a short period of time. For sure, you will have the low-power chargers, and that's no doubt. Here we see they have a fleet, and the fleet must be operated 24 hours, and therefore they cannot afford to go to a supercharge park whenever they need to recharge. That is why they needed a charger at their own premises inside. Here we see there is very less space. The ChargeBox can handle that. It's easy to install. We can split the dispensers away from the ChargeBox, and that's exactly what they did. Not again talking about additional business models, which I mentioned.

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.

Thomas Speidel: It's only charging. Even there, it makes sense. Modern buildings, we talk also to real estate development companies, they will, in the future, not only offer an elevator or an air condition, they also will offer charging. We see here, the gas stations, I don't want to mention that in detail. Here we see also in Berlin downtown, they ripped out the vacuum cleaner, put in 2 dispensers and the cube, just close to the transformer. You have an upgrade for a gas station. Next, please. Important also, I mentioned that, is the opportunity to charge downtown wherever people are. That is mainly what we see here, whether it's fast food restaurants. On the left side, one more gas station. On the right side, we also see a residential area in Spain.

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.

Thomas Speidel: In Spain, normally the grid connection is very weak. Most of the people have only a single-phase connection to their private homes. If now EVs are kicking in and people getting EVs as a private car, where do you charge? The average people are driving is about 200 km a week. If you share a charger like the ChargeBox in a community or an apartment house or condominium, people do that once a week. Just in case, when you come home, you make a brief stop whenever it's needed, and you fill up your car in, let's say, 10 to 20 minutes and just checking your email so you don't even get out of the car.

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.

Thomas Speidel: We expect that to be more as well together with our partners and installers and infrastructure developers, because now cities are also asking about charging infrastructure, not only the Level 2 low-power chargers where people need to stay seven to 10 hours or more. Next page, please. 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. The gas stations we mentioned already. Also the fast food restaurants. Here we see another one on the left side. That is now a construction company, and the owner of the company is well-known here. He got his first EV, and the first decision he was taking is he said, I need a supercharger directly on my site. I'm not willing to drive to a park.

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>.

Thomas Speidel: It must be convenient for me, for my customers, for my employees." We see that on the left. The funny thing is, at the beginning, he opened it for the public, and then it was so occupied that he needed to close it again, because it was really a hotspot. Next page, please. That shall be then also my last one before I hand over to Q&A. But I just want to give an impression what is in front of us. It took some time. It took time, yeah, to get the technology done, to develop everything, to get the production up and running. Recently we're having that all the time, that infrastructure investors want to see also the facility, the quality. They're doing due diligence on our auto production and quality assurance, because if you really scale, then that is important as well.

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.

Thomas Speidel: What we see on the left side, and it has been already communicated, that is a site of our new partner, amperio. amperio is a daughter company of Slate Asset Management, a huge infrastructure fund having its own site and also other sites. We see here the first installations. They have ordered 100 units now of the ChargePost. We see even existing parking spots, this here is a parking house, can be expanded or can be equipped with a supercharger, and therefore here, the ChargeBox or the ChargePost is the right solution. Not only cars, and this is now what I wanted to mention, that the segments are going to be expanded. We see trucks here. The upper picture is a truck in the Netherlands, where we see now that this business is also going to be electric.

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.

Thomas Speidel: They like that we can charge up to 300kW. On the right side, we see a bus. That is a bus which is operating in Luxembourg. Last but not least, I mentioned the EV boating business. We see sport boats, but even bigger boats now being fully electric on the lakes. We expect that more and more lakes will request electric-powered boats also for the water sports. That is the first installation for Artemis. If you are interested, you will find on Google, if you type in Artemis and charging station, you will see these pictures as well. Before we run out of time, thank you for listening to me.

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.

Thomas Speidel: I want to summarize so far that we really see now that the business is ramping up in different segments as I tried to show, because it's always to see what's happening and not only to hear it. I wanted to point out how solid and how powerful the services and the performance of the system itself are, and 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. Who is taking over that?

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.

Operator 2: 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 you're 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. A reminder, to ask a question, you will need to dial in with the telephone details already provided. The first question comes from Pavel Molchanov with Raymond James. Please go ahead.

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.

Pavel Molchanov: Thank you for taking the questions, and appreciate all the detail in your comments earlier. Let me first ask about the outlook for 2023. Of the EUR 100 million of revenue that you are expecting, how much was originally supposed to have come in 2022?

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.

Wolfgang Breme: Yeah. Hi, Pavel, how are you? Nice talking to you. It's of course, hard to assess in infrastructure business how much is shifting from one year to the other. I'll give it over to Thomas, just from some strategic aspects to that.

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.

Thomas Speidel: Yeah, Pavel. We took out from last year because I mentioned that we had problems by end of the year with the units we have produced, but so far have not gone out to the customers. We have been very conservative on that. Last year, if we take that on top, it has been more. Okay? Let's say that one. It has been more, so we have been conservative in this case.

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.

Pavel Molchanov: Okay. Can you share how much, because we're now in May, can you share how much revenue approximately you had in the March Q1?

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.

Wolfgang Breme: No.

No.

Wolfgang Breme: Yeah. Hi, Pavel. We are currently not sharing any quarter information because we just finished the fiscal year audit. We are now focusing on the numbers of Q1 and Q2. As you know, like last year, we will come out with H1 numbers as soon as they're ready.

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.

Pavel Molchanov: Okay.

Okay.

Thomas Speidel: You have seen. Yeah, sorry. Go ahead.

But here you are asking.

Pavel Molchanov: No, please. Go ahead.

Sorry go ahead. Please go ahead.

Thomas Speidel: 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, and the volume we have also disclosed. If you look at that and take all the information you get, you might get a picture, but we are not able, as Wolfgang said, to communicate it now.

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.

Pavel Molchanov: Okay. What is the geographic mix that you anticipate, in 2023 revenue between Germany, other Europe, and US?

Okay.

What is the geographic mix.

That you anticipate.

In 2023 revenue between Germany.

Other Europe and U S.

Thomas Speidel: Yes. The expectation is that in the US, we will be, in percentage, it will be 10% to 15%, because why? We started in Europe many years earlier than in the US. It is important to understand that, and I tried to mention that at the beginning of the call, infrastructure business is not an off-the-shelf business. You have to get into detailed communication in testing phases in all the approvals. Now, even if the system is certified, that doesn't matter. It takes time. We see in the US 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, and that is the plan that the US will have a delay in the growth, but it will be a huge market.

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.

Thomas Speidel: 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 US because systems are out and running in the US and not less. If you ask me about 2023, so my expectation would be it's between 10% and 15% in the US, but that's not the end, it's just the beginning. That's difficult to understand because, if you start a new business 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. To 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.

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.

Thomas Speidel: 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, then normally it's that they have the sites, and we don't even know exactly today where they are installing the units. Just an example for you, if we get an order of 100 units from Imperial, which is the case, then we do not know today where the installation will be. I just cannot tell it now. We might tell it later when the installation has been done.

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.

Pavel Molchanov: My last question is, can we get an update, please, on the residential energy product that you have been working on?

Okay. My last question is.

Can we get an update please on the residential.

Energy product that you have been.

Thomas Speidel: Yeah. As I 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, for the replacement to rescue the material issue and also to get the ChargePost out as planned. That has just been a resource issue. The second is we are now observing that the whole market is booming. Myself, I'm the president of the German Energy Storage Association, and we see that now more and more, off-the-shelf products also from Asia are kicking in. We are a little bit in an observation role because, and now we're coming back to the business model.

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.

Thomas Speidel: For ADS-TEC and our view, it makes only sense if we can get into business partnerships where we are not only asked for the hardware and the basic software, but for the complete scope, including services and long-term business cases. If it's only going into the business in the direction of bulk ware, where price is the main focus, then I think we should reconsider and mainly concentrate on the business where we see that the company strategy can fully play out. Have we stopped it? No. Are we pushing it right now? No as well. Are we observing what the market is doing? Yes.

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.

Thomas Speidel: If we look at the new companies are 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 get China deliveries directly on their premises or on their site. There's nothing in between anymore. That's the reason, probably why we are here a little bit, in a careful or not bullish role for the company. We want to go in the business, which is core for ADS-TEC.

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.

Pavel Molchanov: Okay. Thank you very much.

Okay. Thank you very much.

Thomas Speidel: Thanks, Pavel.

Thanks Paula.

Operator 2: The next question comes from Matt Somerville with D.A. Davidson. Please go ahead.

The next question comes from Matt Summerville with D. A Davidson. Please go ahead.

Kenyon Hazen: Hi, this is Kenyon Hazen for Matt Somerville. Thanks for taking my questions.

Hi, This is Kevin is untrue, Matt Summerville, Thanks for taking my questions.

Thomas Speidel: You're welcome. Hi.

Youre welcome.

Kenyon Hazen: Just in your pathway to sustained free cash flow positivity, how much incremental capital do you foresee needing?

Just in your pathway to sustained free cash flow productivity, how much incremental capital before the meeting.

Wolfgang Breme: Could you repeat it? I couldn't really hear you.

Could you repeat it.

Because I couldn't really hear you.

Kenyon Hazen: Sorry about that. In your pathway to sustained free cash flow positivity, how much incremental capital do you foresee needing to make that happen?

Sorry about that and your pathway to sustained free cash flow positivity, how much incremental capital do you foresee needing to make that happen.

Wolfgang Breme: As we said, we do not anticipate any increase in equity in the foreseeable future. If we achieve our goals and targets, which we have communicated in that call, we are not envisaging to raise additional equity.

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.

Kenyon Hazen: Thank you. Could I get a little bit more color on potentially why customers were not picking up orders from Alabama?

Thank you.

Could I get a little bit more color on potentially why customers were not picking up orders from Alabama.

Wolfgang Breme: Yes, you can. As Thomas pointed out, some of the customers in the United States have not picked up some of the products. As we pointed out, we are an infrastructure business. Of course, we have to be careful because we cannot name our customers, and we should not give any hints to who they are. In infrastructure, we see cases in which customers were 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 saying, in a nutshell, Thomas, what it is, isn't it?

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.

Thomas Speidel: Yeah.

Yep.

Kenyon Hazen: Great. Thank you for that color.

Great. Thank you for that color.

Operator: This concludes our question.

This concludes our question and Ed.

Wolfgang Breme: Yeah, okay.

Wolfgang Breme: No. Please go ahead, Operator.

Yes.

No.

Operator: Oh, thank you. This concludes our question and answer session. I would like to turn the conference back over to Wolfgang Breme for any closing remarks.

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.

Wolfgang Breme: Okay. Thank you, operator. Ladies and gentlemen, this ends our ADS-TEC Energy's 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. Bye-bye.

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.

Operator: The conference has now concluded. Thank You for attending today's presentation. You may now disconnect.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

[music].

Okay.

[music].