Full Year 2023 ADS-TEC Energy PLC Earnings Call

Operator: Hi everyone, welcome to ADS-Tec Energy's full year 2023 earnings call. A recording of today's call and a presentation can be accessed shortly after it concludes from the investor section of our website.

Hi, everyone welcome to E D. S Tech Energy's full year 2023 earnings call.

A recording of today's call and the presentation can be accessed shortly after that concludes from the investors section of our website.

Joining me on today's call are Thomas beetle founder and CEO of a P. S Tech energy and Wolfgang Brown CFO of a D S Tech energy.

Operator: Joining me on today's call are Thomas Beadle, founder and CEO of ADS-Tec Energy, and Wolfgang Brehm, CFO of ADS-Tec Energy. Today we will be discussing ADS-Tec's latest financial results for the full year 2023, guidance for the 2024 year, and conclude with a Q&A session. During the call, management will be making forward-looking statements regarding full year 2024 and onwards, and the Outlook for Expected Growth in Investment Initiatives. 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, economic turmoil and political instability, the ongoing military action in Ukraine, conflict between Israel and Hamas, and other geopolit

Today, we will be discussing a D. S tax latest financial results for the full year 2023 guidance for the 'twenty 'twenty four year and conclude with a Q&A session.

During the call management will be making forward looking statements regarding full year, 'twenty 'twenty, four 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 results to differ materially from our expectations, including among other risks and uncertainties economic turmoil and political instability the ongoing military action in Ukraine.

Conflict between Israel, and Hamas and other geopolitical challenges.

Operator: These four forward-looking statements apply as of today, and we undertake no obligations 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-S, 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 standards.

These forward looking statements apply as of today and we undertake no obligations 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 S E C and posted to the investors section of our website.

Also please note that financial measures presented on this call adhere to I F. R S and none I F. R. S.

Operator: 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. A reconciliation of these non-IFRS measures to comparable IFRS measures is included in the earnings release and investor presentation. With that, I will turn the call over to Thomas Speedle, ADS-Tec's founder and CEO.

We use non I S. R. S measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the I L. I F. R. S measures that we provide.

A reconciliation of these non I S. R. S measures to comparable I F. R. S. Measures is included in the earnings release and Investor presentation.

Thomas Pedal: With that I will turn the call over to Thomas pedal a D S text founder and CEO Thomas.

Yes can you hear me.

Thomas: Oh, Okay, so welcome ladies and gentlemen.

Thomas Beadle: Okay. Ladies and gentlemen, dear investors. Thank you for taking your time and joining our earnings call on the 30th of April 2024. So, please move to the slide with the agenda, to go through the year, so it's a review of the full year 2023 and then an outlook to 2024.

Thomas: Thank you for taking your time and joining our earnings call. It a good piece of April 2024. So please move to the slide with the agenda.

Thomas: We want.

Thomas Pedal: To go through the year. So the revenue of the full year 2023, and the outlook to 2024.

Thomas Beadle: Let me say something about the current market trends and also the challenges we see. Then, again, about the ADS-Tec strategy and our use case, and, important for the call, also the financial highlights, and then with that, I will hand it over to our CFO, Wolfgang. Next slide, please. So let's start with a review of the full year 2023 and the outlook for 2024.

Thomas Pedal: Let me say something about the current market trends and also the challenges we see.

Thomas Pedal: Then again about the atheistic strategy and our U S. P S.

CFO Wolfgang: And important for the quote here all through the financial highlights and then with that I will hand, it over to our CFO Wolfgang <unk>.

CFO Wolfgang: Next slide please.

Wolfgang Brown: So let's start with a review of the full year 'twenty <unk> three and the outlook 2024.

CFO Wolfgang: Next slide please.

CFO Wolfgang: Yeah.

CFO Wolfgang: Let's look at the revenue for the full year 2023.

Thomas Beadle: Let's look at the review for the full year 2022. So, as said last year, even in a not very easy environment, we... made or met our projection of more than 100 million revenue in 2023. So we achieved our targets communicated to the market. We also achieved that the adjusted EBITDA was positive in the last quarter of 2020.

CFO Wolfgang: So it's that last year, even in a not very easy environment. We.

CFO Wolfgang: Meet or we met our prediction of more than 100 million revenue in 'twenty 'twenty free so we achieved our targets being communicated to the market last year.

CFO Wolfgang: We also.

CFO Wolfgang: Cheap that the adjusted EBITDA EBITDA was positive in the last quarter of 2023.

We also confirm that for this year 2024.

Thomas Beadle: We also confirm that for this year 2024, we have our target and have confirmed the target. Revenue-Wide, We are very proud that we have reached these targets with our team, and we see that the increasing number of clients and blue chip partners and clients will meet the targets we have communicated and we are working for. Some numbers.

CFO Wolfgang: We have a our target and confirm the target.

CFO Wolfgang: Revenue wise.

CFO Wolfgang: $200 million and above.

Speaker Change: We're very proud that we reach these targets with our team.

Speaker Change: And we see that the increasing number of clients and Blue chip partners and clients.

Speaker Change: Well.

Speaker Change: Lead to the growth into.

Speaker Change: The targets, we have communicated and we are working for.

Speaker Change: So number.

Thomas Beadle: We have over 1,500 battery-buffered charging points installed. We don't know any other company having a similar or even close to the amount of battery-buffered charging points installed. In total, we have shipped and produced more than 2,500 charging points so far, and a very important point is that the operation, the, you know, the field experience is even better than expected. So we hear from customers that expectations are met or we are even beyond expectations in terms of utilization.

Speaker Change: We have over 1500 battery buffered.

Two point installed.

We don't know any other company, having similar or even close the amount of battery buffered charging points installed.

Speaker Change: In total we have.

Speaker Change: Shipped and produced more than 2500 charging points so far.

Speaker Change: And a very important.

Speaker Change:

Speaker Change: Point is that the operation the you know the field.

Speaker Change: Spring is even better than expected so we hear from customers that.

Expectations are met even.

Speaker Change: We are beyond the expectations in terms of utilization.

Thomas Beadle: We have sites providing more than a megawatt hour of electricity a day, and we saw more than seven megawatt hours a week delivered by one charge box to EV drivers on a power-limited grid with no grid expenses.

Speaker Change: We have sites, providing more than a megawatt hours.

Speaker Change: Megawatt hour of electricity a day.

Speaker Change: And we saw a more than seven mega, but the week.

Delivered by one charge books to EV drivers on a power limited grid with no great expansion.

Thomas Beadle: So that is almost or that's close to the performance of a charged park because utilization then is more than 20 sites a day. We keep focusing on our core competences, and we also want and work for growth with many partners in different segments and markets. Next page, please. Let's dig a little bit deeper into the market trends and the challenges we see or we're facing right now. Next slide, please.

Speaker Change: So that is all more or that's close to the performance of a charter park because utilization then is more than 20 sites a day.

Speaker Change: We keep focusing on our core competencies and we also won.

Speaker Change: And work for the growth with many partners in different segments and markets.

Speaker Change: Next page please.

Speaker Change: Yeah.

Speaker Change: Let's dig a little bit deeper into the market trends and the challenges.

Speaker Change: We see are we facing right now.

Speaker Change: Next slide. Please so you should see now the effects and current market trends and challenges.

Thomas Beadle: So you should see now the current market trends and challenges. Um, a topic which is on the news every day is grid expansion, whether we are in the U.S. or whether we are in Europe. I would say everywhere, grid expansion is one of the hottest topics because the transition to that more or less all-electric world, more power, more transportation capacity, or and that's the point where we are jumping in flexibility. We just have compiled here some messages from some recent news. You can pick whatever news you want.

Speaker Change:

Speaker Change: A topic, which is on the news every day is the great expansion wherever we are in the U S. Whether we are in Europe.

I would say everywhere grid expansion is one of the hottest topics because the transition to that more or less all electric would need.

Speaker Change: We need.

More power more transportation capacity or and that's the point, where we are jumping in flexibility.

Speaker Change: We just have a comparator here some messages from some reason views you can pick whatever news you. One we see that grid expansion is an issue whether it's on the highest level or going down to the mid <unk> or low voltage level.

Thomas Beadle: We see that grid expansion is an issue, whether it's on the highest level or going down to the mid-voltage or low-voltage level. And that gives us the confidence that flexibility and especially intelligent management of flexibility, such as it is necessary for peak shaving, for example, when we supercharge a car in minutes instead of hours. So we can see here some numbers, and these numbers are important to understand because all the costs will, over the next years, be distributed to us as the end customer because somebody has to pay for them.

And that gives us the confidence that flexibility and especially intelligent edge.

Speaker Change: Management of flexibility such as it is.

Speaker Change: Necessary for the peak shaving.

Speaker Change: For example, when we supercharged our calling minutes instead of hours. So we can see here some numbers and these numbers are important to understand because all the costs will over the next years.

Somehow they must be distributed to us at the end customer because somebody has to pay for it so power from our point of view would be more expensive in the future.

Thomas Beadle: So power, from our point of view, will be more expensive in the future because the investments must be repaid. And we see here some numbers, 300 billion euros for transmission grids and power lines and also $150 billion for regional distribution grids. So these are very high numbers, and we also know that the time to get it done is delayed in many cases.

Speaker Change: Because the investment they must be repaid and we see here some number 300 billion euro fraud transmission grid and power lines.

Speaker Change: And also 150 billion for reaching the distribution grid. So these are very high numbers and we also know that the time to get it done in many cases is delayed. So we you have to apply for it or the planning has to be done people don't want to have a great expansion.

Thomas Beadle: So you have to apply for it, all the planning has to be done, people don't want to have a grid expansion close to the places they live, and so there are many restrictions and also hurdles which must be taken even if we want to expand the grid. There are obstacles, not only the money we need, but also the amount of corporate, the amount of resources, of people, of time for application, and all the other things, a lot, but not least also the acceptance of people living close to the transmission line.

Speaker Change: Close to the places they live and so there are many restrictions and always Garuda.

Speaker Change: Which must be taken even if we would want to extend the grid they're obstacles.

Speaker Change: Not only the money we need it's also the amount of cope with the amount of resources of people of the time for application.

Speaker Change: And all the other things.

Speaker Change: And last but not least also the acceptance of people.

Speaker Change: Living close to the transmission lines.

Thomas Beadle: Next slide, please. Despite the challenges and the dynamic market development, and we see that on the news every day right now, some journalists are writing that EVs are going down. The others say they will come back.

Speaker Change: Next slide please.

Speaker Change: Despite the challenges and the dynamic market development and we see that on the news every day right now so that some some.

Speaker Change: Uh huh.

Speaker Change: Journalists are writing that evs are going down the other day.

Thomas Beadle: So we all know that it's a temporary, transitory fuel, but in the long run, EVs will be more efficient. And what we see here is also that the management of these flexibilities and of the restrictions in the grid regarding power will lead to bottlenecks in the grid expansion, but also on the other side, we will see that the driving factors for more power in the grid are not only coming from the chargers; it's also coming from heat pumps and from photovoltaics.

Speaker Change: We all know that it's a temporary.

Speaker Change: Transitory few but on the long run E V. So there'd be more efficient in what we see here is also that.

Speaker Change: The management of these flexibilities and of the restrictions in the grid regarding the power will lead to bottlenecks now bottlenecks in the grid expansion, but also on the other side, we will see that are the driving factors for more power in the grid is not only coming through.

Speaker Change: From the charterers, it's also coming from heat pumps and from Ford over time. So in both directions, we have a need to expand the grid and we see here. The E V forecast, whether it's in the U R. In the U S is an exponential curve. So this is on top of all that he has done.

Thomas Beadle: So in both directions, we have a need to expand the grid, and we see here that the EV forecast, whether it's in the EU or in the US, is an exponential curve. So this is on top of all that, and here down right in the corner, you see that our solution with the battery buffered supercharger is very welcome here and helps to solve these issues.

Right in the corner you see that our solution with a battery buffered.

Supercharger is wherever you come here and helps too.

Speaker Change: So these issues next slide please.

Thomas Beadle: Next slide, please. These numbers, we got them from the P3 group, again give us an estimation about what's coming, what's in front of us. We have here two geographical areas, the European Union and also North America. And what we can see in many locations is that the acceptance of EVs is really rapidly growing because people who drive an EV and they have the charging capacity, then it's convenient, and it's cheaper regarding the total cost of ownership.

Speaker Change: Okay.

Speaker Change: These numbers.

Speaker Change: We got them from P. Three group.

Speaker Change: Again gives us an estimation about what's coming what's in front of us where P M to <unk> do.

Speaker Change: Geographically areas European Union and also North America.

Speaker Change: And well we can see in many locations. The E V acceptance is really rapidly growing because people who drive in EV and they have their charging capacity than it is convenient and it's cheaper regarding the total cost of ownership in the Nordics, we are already the adoption rate.

Thomas Beadle: In the Nordics, we already have an adoption rate of beyond 90%, which is the highest one. But we also see here that fleets and company cars are going to be electric because it's just cheaper. And not only for people driving them, it's also a tax issue. It's about the energy cost, about the total cost of ownership, the OPEX, and, last but not least, also the opportunity to generate your own electricity, which is, in many cases, even subsidized by the government, so you can generate your electricity beyond 10 cents while you're buying it. 30 or even above from the grid.

90%, which is the highest one but we also see here that fleets and company called <unk>.

Speaker Change: <unk> going to be electric because it's just cheaper and not only for people driving it. It's also a tax issue. It's about the energy cost about the total cost of ownership the opex.

Speaker Change: And last but not least also.

Speaker Change: The opportunity to generate your own electricity, which is in many cases, even subsidized by the government. So you can generate electricity beyond 10 cent, yeah, why you're buying it.

Speaker Change: 30, or even above from the grid.

Speaker Change: Hum.

Thomas Beadle: What we can see here is that an increasing number of charging points is in front of us. The reason is that if we have a higher population, people just expect that they can charge everywhere. And this is what we also hear from companies; if they move their fleet to EVs, then they cannot spend, you know, the time driving on the Autobahn or highway, and then it takes you one hour to get off the highway to make the break to recharge the car to get back on the highway. And it's very inconvenient, and it takes time to do that whenever you travel.

Speaker Change: What we see here that the increasing number of charging points.

Speaker Change: <unk> is in front of us.

Speaker Change: The reason is that if we have a higher population people just expect that they can charge every everywhere and this is what we also hear from companies if they move their fleets.

Speaker Change: To Evs then they cannot spend you know time driving over the older Barno Highway and then it takes you one hour to get off the highway to make the breakthrough reach out the car to get back onto highway and it's very inconvenient and it takes time to do that.

Speaker Change: Whenever you travel so charging is also going into the infrastructure people expect even supercharging, where they are close to the office as part of the infrastructure in their office buildings in condominiums.

Thomas Beadle: So charging is also going into the infrastructure. People expect even supercharging where they are close to the office as part of the infrastructure in their office buildings, in condominiums, in residential areas. It is okay to charge your car for hours, overnight, if it's possible, but just in case, mobility is always freedom, freedom to go wherever you want and whenever you want, and that means nobody will accept that you have to wait to recharge your car, and nobody would see it as a convenient solution. It takes me 10 to 20 minutes to get to a charging station and then another 40 minutes to get recharged and all the way back.

Speaker Change: In residential areas.

Speaker Change: It is okay to charge your car over hours overnight, if it's possible, but just in case mobility is always a freedom freedom to to go wherever you want and whenever you want and that means nobody will accept that.

Speaker Change: I have two way to reach out to your car and nobody would would you see that as a convenient solution, which are that it takes me.

Speaker Change: 10 to 20 minutes to get to a church program then another 40 minutes to get recharged and all the way back.

Speaker Change: Another I.

Thomas Beadle: Another thing are the CO2 reduction plans. We just heard from our Commissioner from the European Union, Ms. von der Leyen, last week when she opened the Hannover Fair that the Green Deal and the CO2 reduction plans will be one leading component over the next years. And so that is also important for companies, because to reduce their CO2 emissions and their footprints and to get credits and ratings with the right results, people have to reduce their CO2 emissions, and fleets are one of the driving factors here.

Speaker Change: In August <unk> reduction plan.

Speaker Change: We just heard from our commissioner familiar European Union, Mr. Amit underlying last week when she opened the Hanover film that the Green deal and the C O T reduction plan.

Speaker Change: Will it be one leading component over the next years and so that is also important for companies because to reduce your cotwo emission in your footprint and to get credits and rating.

Speaker Change: With the right rethought people have to reduce the C. O two emissions and fleets are one of the driving factors here next page. Please.

Thomas Beadle: As I just said, many people now are saying, well, we are going back to combustion engines, and the sales of cars are going back. And look at Tesla; even their last quarter was going down. But I think we don't have to worry about that because that's normal.

Speaker Change: As I as I, just said many people know I'm, saying, well, we are going back to combustion engines and the sales of the costs are going back and look at Tesla, even their own last quarter was going down.

Speaker Change: But I think we don't have to worry about that because that's normally you cannot go up all the time that we will face. Some pushback there was very clear in this huge transformation and transition.

Thomas Beadle: You cannot go up all the time and that we will face some pushback. That was very clear in this huge transformation and transition. Nevertheless, they can reduce the prices of their cars. And we also see that from Korean cars, Chinese cars, and others. They can reduce the price and still make profit. So Tesla is now down to 10 percent profit. It came from 17, which is very high.

Speaker Change: Nevertheless, they can reduce the prices of their costs and we also see that from Corinne cost Chinese costs and others.

Speaker Change: They can reduce the price and still produce profitable so tesla.

Speaker Change: Now it's down to 10.

Speaker Change: Percent.

Speaker Change: Profit they came from 17, which is very high so they can still make money with just producing evs and so it will be the way that the car will be computer on wheels, and powered by electric motor and what we can see here on this page.

Thomas Beadle: So they can still make money by just producing EVs. And so this will be the way that the car will be a computer on wheels and powered by an electric motor, as we can see here on this page.

Thomas Beadle: The EV registrations, it's not as we might see it on the news. We see here China, Europe, and the U.S. And if you look at the numbers, then you can see the new EV registrations and the market shares. In China, it went up, and if we only now look here at the BEV, so the battery EVs, the pure batteries, not the plug-in hybrids. The pure batteries went up from 39% to 36.6% in China, which is really significant growth. And we see that in Europe. It's close.

Speaker Change: The E V registrations is it's not as we might see it on the news, we see here, China Europe and.

Speaker Change: The U S.

Speaker Change: And if you look at the number then you can see the new EV registrations and the market shares in China. It went up and if we only now let's look here at the best or the battery Evs, the Pew batteries not the plug in hybrids the pure batteries.

Speaker Change: Went up from 39% to 36, 6% in China, which is really.

Speaker Change: Our significant growth and we see in Europe.

Speaker Change: It's close it's not really a strong growth if we only look at the best.

Thomas Beadle: It's not really strong growth. If we only look at battery-based EVs, and in the U.S., it's at a very low level. It's almost stable so far.

Speaker Change: Beth the battery based Etfs and in U S. It's been a very low level. Its a its almost staples, so far but on the other side, we see the registrations and that's on the on the right side the development in Germany.

Thomas Beadle: But on the other side, we see registrations, and that's on the right side, the development in Germany and in other countries. And we see the United Kingdom, last year, from Q1 2023 to Q1 2024, they raised it about 18% the EV rate, and Germany went down 5%, which is not as dramatic as people say, it's 5%. But the growth before and also the subsidies we got were heavily pushing the EV adoption rate. Now it's coming down a little bit, but we will see that the curve will turn back to positive growth.

Speaker Change: And in the other countries and we see United Kingdom last year from Q1 2023 to Q1 2024.

Raised at about 18%.

Speaker Change: The E rate and the Germany went down 5%, which is not as dramatic as people.

Speaker Change: Say, it's 5%, but the growth before and also the subsidies. We got we're heavily pushing out of the EV adoption right now, it's coming down a little bit, but we will see that the growth will will turn back to positive growth.

Thomas Beadle: So we are convinced that that's going to happen soon, and we see in France that there was 17% growth from Q1 2023 to Q1 2024. So in total, there is a growing population of electric vehicles, and they all need infrastructure, and they all need power. Next page, please. If we now translate that to the need for charging capacity, then we see here a slide which is also data provided by P3 Group, and we see what is expected, and that is why I say it's in front of us, so the best things are still to come. We are here in 2023, moving to 2024.

Speaker Change: So we are convinced that that's going to happen soon and we see in France.

Speaker Change: There have been 17% growth from Q1 2023 to Q1 2024, so in total.

Speaker Change: There is a growing population of electric vehicles, and they all need infrastructure and they all need power next page. Please.

Speaker Change: If we now translate that to the need of charging capacity then we see here a slide which is also the data provided by piece regroup and we see what is expected and that is why I say, it's in front of us So best things still to come we are.

Speaker Change: Here in 2023 moving to 2024.

Thomas Beadle: And we see the EU and U.S. again, and the forecast for high-power chargers. We talk about high-power chargers when we provide more than 150k charging capacity. That's the definition.

Speaker Change: See you in U S again, and the forecast for high power Chargers.

Speaker Change: We talk about high powered charterers when it when we provide more than 150 K chartering capacity.

Speaker Change: That's the definition and you'll see the numbers in thousands of charging points. So if we look just the period 2024 to 2027 2028, then this is almost a.

Thomas Beadle: And you see here the numbers in thousands of charging points. So if we look at just the period 2024 to 2027-2028, then this is almost a tripling of the amount of charges planned or expected in 2024. We see, in parallel, and this is something we also have to consider, extremely volatile market conditions. So, as we all know, the infrastructure is called a critical infrastructure.

Speaker Change: Tripling.

Speaker Change: Of the amount of charge of plan.

Speaker Change: We expected in 2024.

Speaker Change: We see in parallel and this is something we also have to consider extremely volatile market conditions. So as we all know the.

Speaker Change: Infrastructure is called the critical infrastructure is it is regulated it's highly regulated even within countries, but even more over the boundaries of countries and in Europe, we have completely different regulations and.

Thomas Beadle: It is regulated, it's highly regulated even within countries but even more so across the boundaries of countries, and in Europe, we have completely different regulations and grid codes, and in the U.S., it's also depending on the states. So this is also something we have to follow, but on the other side, it's a positive momentum for ADS-Tec. Why?

Speaker Change: Great coach.

Speaker Change: And in the U S. It's also depending on the states. So this is also something we have to follow but on the other side. That's a positive momentum for atheistic Y and we will see that later, it's not as easy to just you know build one component and roll it up.

Thomas Beadle: And we will see that later. It's not as easy to just build one component and roll it out over all Europe or the U.S. or worldwide because of all the specific needs and regulations and changes in regulations which we have seen many, many times over the last years when we have started to develop charge books. The applicable regulations were 24 pages, and now it's about 300-something.

Speaker Change: Out over all Europe, or the U S or worldwide because.

Speaker Change: To comply with all the specific needs and regulations and changes in regulations, which we have seen over the last years. Many many times when we are starting to develop charge books.

Speaker Change: Apply regulations have been 24 pages and now it's about 300, something so you see how also the regulation is changing and who can follow.

Thomas Beadle: So you see how the regulation is changing, and who can follow all these changes and who can provide the services and the compliance over years if you don't have... the ability to change every software, every piece, and follow exactly these developments. And that is, for us, on one side, it is a loss of momentum because the rollout can be slowed down, so it takes some time to get all the regulatory stuff done. When our customers have to apply for installation, then that could take some time, but we can do it.

Speaker Change: All these changes and who can provide the services and the compliance over years.

Speaker Change: You don't have.

Speaker Change: The ability to change every software every piece.

And follow exactly these developments and that is for us on one side. It is.

Our braking momentum because the rollout can be slowed down. So it takes some time to get all the regulation stuff done to do when we have to win our customers have to apply for in store.

Speaker Change: Installation, then that could take some time, but we can do it in the positive thing on the other side is.

Thomas Beadle: And the positive thing on the other side is, with ADS-Tec, you have a partner who can support you, not only at the beginning when you buy and install the unit, but we are there also over time, supporting you with services and also availability services and all the digital things behind that. So, to..., fulfill the demand which we see in the upcoming years. Now we have two curves.

Speaker Change: With <unk> you have the partner who can support you not only at the beginning when you buy and install the unit. We are there also over time supporting with services and also.

Speaker Change: <unk> ability.

Speaker Change:

Speaker Change: Services and other digital things behind that.

Speaker Change: No.

Speaker Change:

Speaker Change: To fulfill the demand, which we see in the upcoming years now we have the two curves.

Thomas Beadle: I just mentioned the demand for the grid expansion residing not only from the EV business but also from, as we say, the all-electric world, so it is coming from photovoltaics, from renewables, but also now hydrogen, electrolyzers. The whole system is in the transformation, and you might have seen that the ZVI, which is one of the biggest associations in Germany of our industry, their new slogan is all-electric society, and so it is a clear view on the market that electrons in the future will be the currency of energy because we can transform electrons very easily, electrons to electrons with batteries, but also electrons to mobility, EVs, electrons to gas, electrolyzer, or electrons to heat, which could be a heat pump or other technical solutions, so that's the currency, and we can manage it on a digital basis wherever it is installed, and that would be a decentralized installation, and that's exactly what we are supporting here. Next slide, please.

Speaker Change: <unk> just mentioned the demand for the grid expansion residing not only from the EV business, but also from as we said the all electric work. So it is coming from Fotis <unk> from renewables, but also now hydro drain electrolyze it.

Speaker Change:

Speaker Change: Yes.

System is in the transformation and you might have seen that as said, we I, which is the one of the biggest association in Germany of our industry their new slow.

Speaker Change: All electric society and so it is a clear few on the market that electrons in the future will be the.

Speaker Change: The currency of NMC, because we can transform electrons very easily electrons to electrons with batteries, but also electrons to mobility evs electrons to bass, electrolyze them or electrons to heat, which could be a heat pump.

Speaker Change: Other technical solutions. So that's the currency and we can manage it on a digital basis wherever it is in stores and that will be a decentralized installation.

Speaker Change: That's exactly what we are supporting here the next slide please.

Speaker Change:

Thomas Beadle: Um... A few words about the strategy and the USP that ADS-Tec Energy can offer in this environment or in this market segment. We want to still focus on our core competencies, which means that when we started, when we had the first PIPE presentations, we already said we wanted to be very clear. We are not an operator.

A few words about the strategy and the USPS atheistic.

Speaker Change: Can offer them in this environment or in this.

Speaker Change: Segment next page please.

Speaker Change: Okay.

We want to still focus on our core competent in competency, which means when we started and when we had the first type presentations. We already said, we want to be very clear.

Speaker Change: We're not an operator, we are providing technology and services to the future power companies, who are serving their customers. They are trading electricity. They are offering trucking services. They integrant integrated solutions into the infrastructure. That's still what we do so we are very clear in the position in the market, which is <unk>.

Thomas Beadle: We are providing technology and services to future power companies who are serving their customers. They are trading electricity. They are offering charging services. They integrate the solutions into the infrastructure. That's still what we do, so we are very clear about our position in the market, which is helpful for our partners and customers because they don't have to be afraid that we are in competition with them. And you will see later that this strategy led to a broad base of new customers and partners because it's their job to be the next utility company or the next power company offering all the services following the local regulations, optimizing the energy flow or the payment services and That's their business. That's what they do, but we give them the opportunity for a long time.

Speaker Change: Helpful for our partners and customers because they don't have to be afraid that we are in competition with them and you will see later that this strategy led to a broad base of new customers and partners because it's their job to be the next utility company over the next power company offering all the surge.

Speaker Change: This is following the local regulations optimizing the NFC flow or all of the both.

Speaker Change: The payment services and everything that their business, that's what they do but we give them the opportunity.

Speaker Change: Over a long over a long time.

Thomas Beadle: As I always said, it's like your phone. Apple is not providing the apps, but they are providing the platform so that thousands of companies can run their own applications on the platform. So when we look here at Europe and North America, still the two...

Speaker Change: With that I'd like your phone Apple is not providing VF, but they are providing the platform that companies thousands of companies can run their own applications on the platform and we are the one who support you with updates over the year security patches and so on so when we look at Europe and North America is still there.

Speaker Change: Two.

Speaker Change: Geographical.

Thomas Beadle: Geographic targets we are supporting. So ADS-Tec here in Europe, we will expand our role, and we want to have leadership in the battery buffer structure, and this is, I think, the role we currently have, and we see strong momentum on onboarding new, also blue-chip clients and customers. And this is important to understand also the growth plan, which we will see later. Why can we grow in the way that we saw last year and what do we expect this year?

Speaker Change: Targets, we are supporting so Adas take here in Europe, we will expand our role and we want to have the leadership in battery buffer.

Speaker Change: And this is I think the road we currently have.

Speaker Change: <unk>.

Speaker Change: And we see strong momentum on Onboarding, new auto Blue chip clients and customers and this is important to understand also the growth plan.

Speaker Change: Which we will see later why can we grow in a way that we have seen last year and what we expect this year and beyond that is that many partners will or have just been starting with us.

Thomas Beadle: And beyond that, many partners will or have just started with us, and we have, over the last three years, started with one customer, one partner, and then, meanwhile, there are many. And based on these customers, all of whom are facing a network or not just one installation, so together with them, we see growth in the market and in the future of battery-buffered chargers. And also in business models, because very often they start with one business model, and then other ones will be added.

Speaker Change: And we have over the last three years.

Speaker Change: Started with one customer one partner and then Meanwhile, there are many and based on these customers and they all are phasing of network or not just one installation so together with them we see the growth.

Speaker Change: In the market and in the future battery Buffett charters and also in the business model because you very.

Speaker Change: Very often they start with one business model and then the other ones will be added. So for example, you charge.

Thomas Beadle: So, for example, you start with charging because you just want to avoid a grid expansion, and then later you may add bidirectional use of the battery. You may add using arbitrage against the stock, because, therefore, you need also the backend and all the technical environments to do so. So it's a step-by-step process, and not every customer from ADS-Tec is using the full package. For geographical expansion, we are now active in 15-plus countries, so from Great Britain across Europe, the Nordics down to Spain, and recently, we installed, or our partners installed, some systems down in Australia, even if that's not our target country.

Speaker Change: You start with charging because you just want to avoid the grid expansion and then later you may add.

Speaker Change: Directional use of the battery you may add using arbitrage.

Speaker Change: <unk>.

Speaker Change: The stock because therefore, you need also the back end and all the.

Speaker Change: Technical <unk>.

Speaker Change: Environment to do so so it's a step by step case or not.

Speaker Change: Every customer from <unk> is using the full package from day one.

Speaker Change: For the geographic expansion, we are now active in 15 plus countries.

Speaker Change: From Great Britain over Europe, the Nordics down to Spain.

Speaker Change: Recently autumn have installed or partner to install some systems down in Australia, even if that's not our.

Speaker Change: Target country.

Thomas Beadle: We see on the right North America. We have set our location in Auburn, which has already been communicated by us. We have with Roberto a new manager in the U.S., a very experienced manager, and now in the U.S., many changes have happened.

Speaker Change: We see on the right North America.

Speaker Change: We have set our location in Oman, which is already or has already been communicated by us we have with Roberto a new.

Speaker Change: Manager in the U S.

Speaker Change: Very experienced manager and now in the U S. Many changes has happened we know that NACS came up last year, we will follow dna's years demand for charge books as well as for charter posed.

Thomas Beadle: We know that NACS came up last year. We will follow the NACS demand for the charge box as well as for the charge post. Why that has been decided nobody knows, but it is now the new standard. And we will follow that. We have, besides Renato, who is managing the U.S., Michael Spurr. He spent the last year here in Germany, and he is now also in the U.S., and he is responsible for the role and for government affairs.

Speaker Change:

Speaker Change: Why that has been decided nobody knows but it is now the new standard.

Speaker Change: And we will follow that we have.

Speaker Change: Besides Renato who is managing the U S. We have micro scale he was.

Speaker Change: Last year's here in Germany, and he is now also in the in the U S and he is responsible for the road and for the government of Fas.

Speaker Change: So we are closely also in discussion with the authorities because we know that there are lots of regulations funding subsidies demand charges, where we have to talk to the official sites that is what Mike doesn't support where not to.

Thomas Beadle: So we are also closely in discussion with the authorities because we know that there are lots of regulations, funding subsidies, and demand charges where we have to talk also to the official sites. That is what MITRE does and supports Renato in that regard. We also have new partnerships in the U.S., so C-Stores like Nuria, we have made our first sales to Alabama Power and also to some Ford dealerships, and so in the United States, we are now getting step-by-step, especially into the decentralized locations, and as you have seen in the press release, I hope we started one installment at Marina Palms in Florida. Why did we do that?

Speaker Change:

Speaker Change: In that regard.

Speaker Change: We have also new partnerships in the U S. So these stores like Ria we have.

Speaker Change: Phase two Alabama power and also to some four dealerships and so in the United States. We are now getting step by step into the especially into the decentralized.

Speaker Change: Locations and as you have seen the press release I Hope we started one installment at Marina pumps in Florida.

Speaker Change: Why did we do that because.

Speaker Change: We are convinced that supercharging with part of your infrastructure asset.

Thomas Beadle: We are convinced that supercharging will be part of your infrastructure, as we said. And in this case, it's a luxury condominium. People already enjoy the elevator, air conditioning, valet parking, security, gardening. Everything is coming out of one service package. The garage is sufficient for 400 cars, passenger cars. And if you walk through the garage, you'll see really nice cars.

Speaker Change: And in this case, it's a luxury condominium people already enjoy elevator air condition valet parking security.

Speaker Change: Gardening everything is coming out of one service package.

Speaker Change: The garage is.

Speaker Change: Sufficient for 400 car passenger car.

Speaker Change: And if you walk through the garage you see really nice car. So also.

Thomas Beadle: So, um, also, not only combustion but, meanwhile, lots of EVs. So the manager from Marina Palm told us that last year, they went up to 50 EVs, and they were from a Tesla Cybertruck to a Tesla Model Plaid, Audi e-tron, Porsche Taycan, and Korean cars. And what we have seen is that the installment of a Level 2 Charter is expensive. It was about 15k to get that installed and all the wiring going through the concrete ceiling, and then the charging capacity is only 11k.

Speaker Change: The not only combustion, but meanwhile, lots of evs, so the miniature from Marina palms told us.

Speaker Change: That last year. It went up to 50 Evs and it was from the Tesla cyber truck to Tesla model led <unk> corporate tycoons.

Speaker Change: And the Korean cars and what we have seen is that.

Speaker Change: The installment over Levered to charter.

Speaker Change: Is expensive it was.

Speaker Change: About 15, K to get that installed and all the wiring.

Speaker Change: The concrete is sealing and then.

Speaker Change: The charging capacities only 11 K.

Thomas Beadle: What we did is now installed a charge box in front of the garage, and now the valet parking and also the residents of the condominium are now able to quick charge their EV, and that is very convenient, and the feedback we have gotten so far is absolutely positive, and we see a market there for all these condominiums, residential areas, and also office buildings where they will install a supercharger on their premises because it will be as normal as an elevator It's part of a modern infrastructure that you can charge your car and even fast charge, and that's in front of us, so we see that maybe there is much more, the ability to act as a key for us, and now we are also a recommended partner.

Speaker Change: What we did is now we installed the charge folks in front of the garage and now the valet parking and also the residence of the condominium.

Speaker Change: Now able to quick charge their EV and that is very convenient and the feedback we got so far is absolutely positive and we see a market there for all these condominiums residential areas and also office buildings that they will install a supercharger on their premises because it will be.

Speaker Change: Abnormal as an elevator or HVAC, it's part of a modern infrastructure that you can charge your car and even fast charge and that's in front of us So we see that.

Speaker Change: Maybe there is much more supply or that there will be much more supercharging capability than we expect because if you can't do it everywhere and maybe even for low price because of electricity is generated locally or it's subsidized by you.

Speaker Change: Employer or by the city or whoever then that will be also a hotspot for people driving and Navy also here.

Thomas Beadle: We all know that Porsche has been our first big contract, and more and more, we are also providing services for the Porsche dealers, which now, and I mentioned this last year, will help us to expand our service business. We are convinced, and this is what we already see, that services are kind of a tail you pull after the OPEX, after the CAPEX. After installation, people need different services. Sometimes you start with a low level, and then you take a higher service level, and this is where we are right now.

Speaker Change: To come back to the competencies are 100% ability to act as key for US and now we are also the recommended partner them.

Speaker Change: We all know that Pasha has been our first big contract and more and more we are also providing the services for the Porsche dealer.

Speaker Change: Which now and I mentioned that last year will help us to expand our service business.

Speaker Change: We are convinced and that is what we already see that the services are kind over attain you pull after the opex after the capex.

Speaker Change: After installation people need a different services, sometimes you start with a low level and then you take a higher service level and this is where we are right now so we see it coming step by step.

Thomas Beadle: So we see it's coming step-by-step. Next page, please, and this is what we have, I guess, mentioned very often, so just the basic footprint of ADS-Tec. We need to have the hardware because only if you control the hardware are you able to add all the other things on top of it. So hardware is the key.

Speaker Change: Next page please and this is what we've I guess.

Speaker Change: I mentioned very often so just the basic.

Speaker Change:

Speaker Change: The footprint of <unk>, we need to have the hardware because only if you control. The hardware you are able to add all the other things on top of it. So hardware is the key.

Thomas Beadle: We are still only buying the battery cells from different cell suppliers, and all the rest is developed internally. Based on the hardware, the software also must be in-house. Meanwhile, we have the software for the charge controller in-house. We have the software for the inverter in-house, for the battery, and for the battery management system.

Speaker Change: The only buying the better result from different suppliers and all the rest is developed internally.

Speaker Change: Based on the hardware the software also must be in house. Meanwhile, we have also the software for the chart controller in house, we have the software for the inverter and Howard for the battery for the battery management system, that's all internal software, which helps us to modify their systems.

Thomas Beadle: That's all internal software which helps us to modify the systems whenever it's needed or to provide security patches or upgrades. Then the services are kicking in. Services, it's a broad range of services. In general, it's all about optimizing the TCO, whether it's providing APIs for a new business model, which could be frequency regulation. It could be an interface to interconnect many of our charges to one virtual power plant. It could be an availability service, which is very common that customers say, please ADS-Tec, you take care of the availability. So we want to have 97, 98%, whatever. It depends on the location.

Speaker Change: And whenever it's needed or to provide security patches.

Speaker Change: Upgrades than the services are kicking in services, it's a broad range of services in general, it's all about optimizing the Tc or whether it's providing apis for new business model, which could be frequency regulation it could be an interface.

Speaker Change: Interconnect many of our charterers to one virtual power plant.

Speaker Change: It could be.

Speaker Change: Availability service, which is very common that customers say, please take you take care for the availability. So we want to have 90, 798% whatever.

Speaker Change: It depends on the location availability.

Thomas Beadle: Availability, it's your turn, and ADS-Tec is doing it. So we have remote access. We are monitoring the systems. We can do the software updates.

Speaker Change: Zero turn and <unk> is doing it. So we are remote access we are monitoring the systems, we can do as a software updates and then.

Thomas Beadle: And then we also can do the services, which means spare parts for very long periods because it's all developed in-house. And also, if needed, Last but not least, and that will be the next step, and partly it's already starting, we call it features. And again, if you compare it with your Apple iPhone, the platform Apple is providing its own apps such as AirDrop and others, which are highly welcome if you use your Apple system.

Speaker Change: We also can do the services, which mean spare parts over very long periods, because it's all developed in house.

Speaker Change: And also if needed.

Speaker Change:

Speaker Change: Our software update.

Speaker Change: Last but not least and that will be the next step and partly it's already starting.

Speaker Change: We call. It features and again, if you compare it with your Apple iPhone. The platform Apple is providing one app such as air drop and others, which are highly welcome if you use the Apple system.

Thomas Beadle: But there are others which can be programmed by you as a customer, the same strategy is ADS-Tec offering, so we... We are offering more and more integrated software components, where, for example, a real-time frequency regulation or a real-time peak shaver, which might be dedicated to a local requirement from a grid operator. That could be an internal function.

Speaker Change: But there are others, which can be programmed by U S customer in the same.

Speaker Change: Our strategy is ASIC offering so.

Speaker Change: We are offering more and more integrated software components.

Speaker Change: For example.

Speaker Change: Our real time frequency regulation or real time peak shaver.

Speaker Change: Which might be dedicated to our local requirement from our grid operator that could be an internal function external function could be that youre using our battery and integrated in your escaped us system, which is very interesting for utility companies because theyre trading electricity 24.

Thomas Beadle: External function could be that you use our battery and integrate it into your SCADA system, which is very interesting for utility companies because they are trading electricity 24 hours, 365 days a year. They make money out of energy trades. And then they can integrate the battery as a source or a drain. And that allows them to distribute electrons, and not only on a virtual basis. And therefore, they need interfaces, and these kind of interfaces you see here are third-party apps.

Speaker Change: Our 365 days a year they make money out of energy trades and then they can integrate the battery as a source.

Speaker Change: Drain and that allows them to distribute electrons and not only on a virtual base and therefore, they need interfaces and these kind of cases youll see here third party apps.

Thomas Beadle: We can offer a standard interface but can also customize these kinds of additional functions to the needs of our customers and partners. Here we see again that it is a kind of toolbox. We have all, in most cases, the same battery module, which allows us to provide spare parts over a long time. So even different battery cells are in the same form factor. Our battery module can support 21700 cylindric cells as well as prismatic cells.

Speaker Change: We can.

Speaker Change: Offer a standard interface, but also can customize these kind of.

Speaker Change: Additionally functions to the needs of our customers and partners next page. Please.

Speaker Change: He always see again.

Speaker Change: It is a kind of a toolbox we have one in most cases the same battery module.

Speaker Change: It allows us to provide spare parts over a long time, so even different battery cells I understand form factor.

Speaker Change: Our battery module can support 21, 700, cylindrical as well as prismatic cells.

Thomas Beadle: And you see here some of the applications, whether it's industrial storage or the charge box or the charge post. Charge box and charge post are using identical battery modules, which allows us to have one spare part for the long term and, on the other side, because the module is less than 30 kilograms, it's very easy to replace in a service case because you only need one person to handle a module and no forklift to replace a 400 kilogram battery. Next page, please. Um... Let's go to some of the advantages when we talk about a battery-based charger. On the left side, we have a standard charger.

Speaker Change: And you'll see here some of the applications, whether it's industrial storage or the charge the charge port.

Speaker Change: Charged boxing charge ports are using identical battery modules, which allows us.

Speaker Change: To have one spare part for long term and on the other side because the module.

Speaker Change: Less than 30 kilograms, it's very easy to replace.

Speaker Change: The service case, because you only need one person to handle the module and no forklift to replace 400 kilogram battery pack next page. Please.

Speaker Change:

Speaker Change: Let's go to some of the advantages.

Speaker Change: When we talk about battery based charts on the left side, we have a standard chartered.

Thomas Beadle: So this is a grid-connected charger without a battery. And on the right side, we have the DC fast charger, and the battery buffer. And just walk through these.

Speaker Change: So a grid connected charter without a battery and on the right side, we have the DC fast charging the battery buffers and just walk through these.

Thomas Beadle: The CAPEX for a non-battery buffer charger is cheaper when there is enough grid capacity available, that's for sure. But as soon as grid expansion is necessary, then it shifts because you have to apply for it or pay for the grid expansion. Then every year, the price for power has increased over the last few years, and I will show you another slide where you can see that later. Even if you expand the grid, then you must consider that it only makes sense – the, If we expand the grid only for 5% utilization, that makes no sense.

Speaker Change: Item CSO the Capex.

Speaker Change: The capex for our non bedroom and powerful charter is cheaper when.

Speaker Change: There is.

Speaker Change: Enough grid capacity available that's for sure.

Speaker Change: Sure.

Speaker Change: Not new but as soon as grid expansion is necessary then it shift.

Speaker Change: Because you have to apply for it or the cost for the grid expansion.

Speaker Change: And then every year.

Speaker Change: The the price for power has increased over the last years and I would show you. Another slide where you can see that later.

Speaker Change: Even if you expand the grid then you must consider that it only makes sense that he has $8600.

Speaker Change: If we expand the great only four 5% utilization that makes no sense.

Speaker Change: In nowadays when grid expansion is.

Thomas Beadle: Nowadays, when grid expansion is... Um.., very expensive and, in general, is needed, then why should you expand the grid for 300k to charge your car if you only need it 5% over the year? That makes no sense.

Speaker Change:

Speaker Change: Very expensive and in general is needed then why should you expand the grid for 300 K to charge. Your car if you only needed 5% over the year that makes no sense of the spare capacity will be too high and some utilities are charging you a penalty because they.

Thomas Beadle: So the spare capacity will be too high, and some utilities are charging you a penalty because they want, if you expand the grid, they want you to use at least, for example, 70% of the capacity over the year. You also would not build a highway with 12 lanes where the 12 lanes are only used 5% of the time over the year. And that is why we will see additional costs coming up.

Speaker Change: One if you extend the grid. They want you to use at least for example, 70% of the capacity over the year.

Speaker Change: You also would not build a highway with 12 lanes, where the 12 lanes are only used in 5% of the time over the year and that is why we will see additional cost coming up its not only the transformers not only the initial cost for the Capex.

Thomas Beadle: It's not only the transformer, it's not only the initial cost for the CAPEX. And we see here the OPEX, total cost of ownership over 10 years. We have to consider also an increasing price for electricity, not from generation. We even see now that the electricity price went down again. Even people now say the Ukraine war has led to a shortage, and that is now why the electricity price is up three times.

Speaker Change: And we see here the Opex total cost of ownership over 10 years, yet we have to consider also increasing price for the electricity not from.

Speaker Change: From the generation, we even see now that the electricity price went down again, even <unk> now the Ukraine.

Speaker Change: <unk> has led to a shortage and there is now why the electricity price is up three times, but Meanwhile, it came it came back and we all know that based on the very low.

Thomas Beadle: But meanwhile, it came back, and we all know that based on the very low cost of, for example, photovoltaic-generated electricity, you can generate electricity for more than 10 cents on your own premises. So over time, if we talk about a 10-year or even more operation, then with your photovoltaic, if you look at the carport, the carport can have a 5 megawatt-hour solar generator on the rooftop. 5 megawatt-hours a year, that is already what a Tesla Model S takes if you run it 25,000 kilometers a year.

Speaker Change: Low cost of for example for the voyage hike generated electricity you can you can generate.

Speaker Change: Electricity beyond 10% on your own premises. So over time, if we talk about a 10 year or even more operation.

Speaker Change: Then with your photo void Todd if you look at the car part a carport roughly can have a five megawatt hours solar generator on the roof top five megawatt hours a year that is all that is already awarded Tesla model S takes if you run it 25000 kilometers a year. So here we see.

Thomas Beadle: So here we see that there are, you know, potential savings, and it's also paying into your CO2 reduction account. And if you buy it from the grid, then you are addicted to the cost, and not only the electricity cost from the stock price but also from the grid price and the grid cost. And they have been increasing over the last years, especially the last two ones significantly.

Speaker Change: They are you know.

Speaker Change: Potential savings and it's also paying into USD two reduction account.

Speaker Change: And if you buy it from the grid, then youre addicted to the cost and not only the electricity costs from the stock price, but also from the grid pricing grid costs and they have been increased over the last year, especially last two ones.

Speaker Change: Significantly then great services, we just mentioned it with the battery you can go you can use it for bi directional views and we also can offer.

Thomas Beadle: Then grid services, we just mentioned it; with the battery, you can go; you can use it for bi-directional use, and we can also offer peak shaving or frequency regulation, arbitrage, I think I don't have to mention that, and with a charge post, in addition, advertising. But also here, advertising, it's a very regulated market. In some locations, it's easy to get an application through.

Speaker Change: Shaving or frequency regulation arbitrage I think I don't have to mention that in with the charge Port. In addition, advertising, but also here advertising at a very regulated market in some location, it's easy to get application through in some areas.

Thomas Beadle: In some areas, it's a longer thing to get an allowance to install an advertising poll, but these are opportunities where people can add revenue streams on top of the investment, which are not only related to charging. Next page, please. But even in the pure naked charging application, we enabled the operator. [inaudible] Electricity price, it differs from region to region, but basically, the electricity price is composed out of the electricity price, which is basically defined by the stock price, in Leipzig in Germany, for example, and then all the great fees, expenses, taxes, and so on are added up.

Speaker Change:

Speaker Change: It's a long ago.

Speaker Change: Thing together, allowing to install an advertising program, but these are the opportunities where people can add.

Speaker Change: Our revenue streams on top of the investment and which are not only related to charging.

Speaker Change: Next page please.

Speaker Change: But even in the pure naked charging application.

Speaker Change: <unk> enabled the operator.

Speaker Change: Optimized business case, and let me just point out it here.

Speaker Change: <unk> DC fast charge off.

Speaker Change: To the battery Buffered trust charge on the right side, we see on the left side.

Speaker Change: If we buy the electricity from the market.

Speaker Change: Then we have a stacked.

Speaker Change: Electricity price.

Speaker Change: First from region to region, but basically the electricity price is composed of.

Speaker Change: Out of the.

Speaker Change: Electricity price, which is basically defined by the stock.

Speaker Change: In Leipzig in Germany for example, and then all the grid fees expenses taxes, and so they ended up and so we have different prices here in Austria or in Germany, or wherever in Europe, and the U S and what we can see here.

Thomas Beadle: And so we have different prices here in Austria or in Germany or wherever, in Europe or in the U.S. And what we can see here... If you have a normal charger, then your margin can only be made on top of all the costs. So you have to follow the costs which are provided by the grid and the grid operator and the electricity price, and you have to add a margin. And you are in competition with all the others providing exactly the same electrons. And there is no difference, which makes it very hard to compete.

Speaker Change: If you have a chart show enormous charter then your margin can only be made.

Speaker Change: Off.

Speaker Change: The top of all the costs. So you have to follow the costs, which are provided by the creating the grid operator and electricity pricing you have to add a margin.

Speaker Change: And you're in the competition with all the others, providing exactly the same electrons and there is no no different which makes it very hard to compete and I think that's part of the.

Thomas Beadle: And I think that's part of the reality we see right now in the charging business. Where is the big difference if you only have the same electron and you have to pay? The price for the electron, which is not in your hand; you have to pay whatever is given by others.

Speaker Change: The reality, we see right now in the trucking business.

Speaker Change: There is the big difference if you only have the same electron and you have to pay.

Speaker Change: The price for the electron which is not in your hands you have to pay whatever is given by others.

Speaker Change: And if the Greek fees are increasing then you're forced to increase your price if the grid fees are going down they're going down as well for you enable too.

Thomas Beadle: And if the grid fees are increasing, then you are forced to increase your price. If the grid fees are going down, they are going down as well for your neighbor; it's the same system. On the right side, we are offering them more opportunities to optimize their margin. Just one example, as I mentioned before, if you compare, when I pull an electron out of the grid today, it could be here around 25, 28 cents, up to 30, maybe. If I generate it on my own premises with my own photovoltaic system, it's 7, let's say it's 10.

Speaker Change: The same system on the right side, we can we are offering them more.

Speaker Change: Opportunities to optimize your margin is just one example, I mentioned too.

Speaker Change: Before is if you compare when I pull in elektron out of the grid today could be here around $25 28 and up to 30, maybe.

Speaker Change: If I generated on my own premises with my own fiduciary target seven let's say, it's 10 so it's.

Thomas Beadle: So it's about 20 cents difference from using your own electricity compared to the electrons you buy from the grid. In that case, your margin will be tripled, I guess, and you can control part of the cost by yourself. And the same is true if you use it for arbitrage, for peak shaving, you use the battery for peak shaving, you may be able to avoid demand charges. In the US, we have compiled a database where you can type in your zip code, and then you will see what can be avoided regarding demand charges, and we see locations where it's between 40 and almost $100,000 a year only to avoid demand charges.

Speaker Change: About 20% different now from.

Speaker Change: From using your own electricity.

Speaker Change: Sure.

Speaker Change: Compared to the electron you buy from the grid and that gives you margin will be tribute I guess now and you can control part of the cost by yourself and the same is if you.

Speaker Change: Use it for arbitrage for peak shaving you use the battery for peak Shaver you may can avoid demand charges in the U S. We have compiled the database where you can type in your ZIP code and then you will see what can be avoided regarding demand charges and we see locations, where it's between 40 and <unk>.

Speaker Change: $100000 a year.

Speaker Change: Only to avoid demand charges. So the payback time of a battery buffer charterer. In these cases is very short why because you don't have to apply you don't have to explain the grid and you don't have to pay for the demand charge next page. Please.

Thomas Beadle: So the payback time of a battery-buffered charger in these cases is very short. Why? Because you don't have to apply, you don't have to extend the grid, and you don't have to pay for the demand charge. Next page, please. Let's come back to our business and the development of our business, and I think one very important slide here shows the development of our customer base. We started with, as you know, one blue chip customer and some less important others, but that was our main customer with Porsche when we had the opportunity to equip all the Porsche dealers. But then new customers came in, and you see here how it developed over the last year. 2021 was when we launched the Porsche charge boxes by the end of 2021.

Speaker Change: Let's come back to our business and the development of our business and I think one very important slide here shows.

Speaker Change: The development of our customer base, we started with as you know one.

Speaker Change: Blue chip customer.

Speaker Change: And some less other so on a but that would be that was our main customer with Porsche when we.

Speaker Change: Had the opportunity to equip order portion dealers, but then new customers came in and you see here how it developed over the last year 2021 was when we have.

Speaker Change: Launched the Porsche chart boxes by the end of 2021, they were all shipped out and now we see 2022 already and this is what we also communicated we we won new customers partners and they followed our.

Thomas Beadle: They were all shipped out, and now we see 2022 already, and this is what we also communicated. We won new customers, and partners, and they followed our lead. They are sharing the same vision of the future in terms of a decentralized intelligent energy system. And they followed with their business models and our platform strategy, and you see how that almost exponentially grew over the years 2022-2023, and you see here at the end of year 2023-2024.

Speaker Change: They are sharing the same vision of the future.

Speaker Change: In terms of a decentralized intelligent energy system and they followed with their business models and our platform strategy.

Speaker Change: And then how that almost expands exponentially grew over the years 2022, 2023, and you'll see here end of year 2023, 2024, so that is already.

Thomas Beadle: So that is already what we have achieved with new customers. Of course, they are starting at a low level, but every customer, and we are not talking about end customers where we sell one unit to one, let's say, office owner. These are partners who want to scale into the market. And now you see the distribution all over Europe or the U.S.; there will be hundreds of them because it's so widely distributed. And there is not one Google serving all of the installations.

Speaker Change: What we have achieved with new customers of course they are.

Speaker Change: Starting on a low level, but every customer.

Speaker Change: And we're not talking about end customers, where we sell one unit two one.

Speaker Change: Let's say office O&M These partners.

Speaker Change: Who want to scale into the market and now you see the distribution all over Europe or the U S. There will be hundreds of them because it's so distributed there is not one Google serving all of the installations.

Thomas Beadle: There will be many, and we want to be the company supporting them. And we see here that it has worked. And just... a few words about the sales cycle. We can say that it takes, almost like pregnancy, about nine months to get a new customer on board because they need to understand the technology. We talk a lot about the potential. But we have to talk about software interfaces, about business models. Or they are asking us how we can support them, and then they do a first installation. The bigger ones may have the request to put the units in a test lab first. And so it's about nine months until we get the first order.

Speaker Change: There will be many and we want to be the companies supporting them and we see here that it worked.

Speaker Change: And just.

Speaker Change: A few words about the sales cycle.

Speaker Change: Can say that.

Speaker Change: It takes.

Speaker Change: Almost like a pregnancy about nine months to get a new customer on board it because they need to understand the technology. We talk a lot about the potential we have to talk about software interfaces about the business models or they are asking us how we can support them and then they do a first installation they may the bigger ones have.

Speaker Change: The request to put the units in the test lab first and so it's about nine months until we get the first orders.

Thomas Beadle: Then they do the testing, they check the utilization, and then we see that the numbers are going up. And don't forget that these companies have the sites. So they have to do the planning; they have to do all the preparation to get the units out. So it's not only that they say, wow, this is the solution we want to have, and now we buy it. I don't know how many hundreds, and it's only a question of logistics and installation.

Speaker Change: They do the testing they check the utilization and then we see that the numbers are going up and don't forget that these companies that they have the sites.

Speaker Change: So they have to do the planning they have to.

Speaker Change: Do all the preparation to get the units out so it's not only that they say well. This is the solution we want to happen now we buy.

Speaker Change: I don't know how many hundreds and it's only a question of logistics installation no. It's more because you have to planet it must be part of the business model and that is why it takes some time to get new customers and partners on boarded and we are proud and business. What this crucial show that we did.

Thomas Beadle: No, it's more because you have to plan it. It must be part of the business model, and that is why it takes some time to get new customers and partners on board. And we are proud, and this is what this curve shows, that we did that in the past, and this is not a plan for the future. We only want to share here and today that it's already achieved, and that we have reached a significant number of new customers and partners, and not just rely on the initial ones.

Speaker Change: In the past and this is not a plan now into the future.

Speaker Change: We only want to share here and today that is already achieved and then we have.

Speaker Change: <unk> reached a significant amount of new customers and partners and not just relying on the initial once they are important of course, and we will serve them as good as we can but we also want to go into the broader market and that is what we see here.

Thomas Beadle: They are important, of course, and we will serve them as well as we can. But we also want to go into the broader market, and that is what we see here. And don't forget that all of our partners, number one, we are not competing with them. So everybody is served as well as we can and in a fair way, so they can rely on us.

Speaker Change: And don't forget that all of our partners number one we are not competing with them. So everybody has served as good as we can in a fair way. So they can rely on us and number two.

Thomas Beadle: And number two, they all want to scale their business, so it's a partnership. And that is why we believe it's a long-term partnership, and it will be very positive for both parties that we can follow in the combination what we will expect, a new business model. Flexibility could be a market. We are talking about the bidirectional use of EVs as a buffer.

Speaker Change: They all want to scale the business. So it's a partnership.

Speaker Change: And that is why we believe it's a long term.

Speaker Change: Partnership and it will be.

Speaker Change: For both.

Speaker Change:

Speaker Change: Very positive that we can follow in the combination what we will expect new business model flexibility could be a market. We are talking about bidirectional use of evs as above or whatever is now.

Thomas Beadle: Whatever is now, you know, coming up together with our partners, we are the ones who can help them. And it's not a stranded investment because they have a partner who has the ability to act 100 percent. Next slide, please. Um... That's a summary of, I think, what I have already mentioned. We see here that the ability to act helps us to optimize the total cost of ownership, to provide multi-revenue opportunities for our customers, and to make them strong.

Speaker Change: Coming up together with our partners we.

Speaker Change: We are the one who can help them and it is not a stranded investment because they have a partner who is who has the ability to exit 100% next slide please.

Speaker Change:

Speaker Change: That's the summary of I think what I already have mentioned.

Speaker Change: We see here that the ability to act helps us to optimize the total cost of ownership to provide multi revenue opportunities to our customers to make them strong the stronger they get the better it is for us for all of us and we need resilient energy system, we need to resist.

Thomas Beadle: The stronger they get, the better it is for us, for all of us. And we need a resilient energy system. We need a resilient infrastructure, and that is what will be more and more topic. We see that the geopolitical issues are not solved, and maybe will not be solved over the next year. So it will be more and more important that networks are coming together, supporting here in the best way. The broad scope of services I have already mentioned, and also that we can follow the market specifics and that we can offer them individual IT interfaces or APIs, which allows them then our customers to adopt the physics, the physical opportunities of the platforms from ADS-Tec into their own business models, whether it's trading, or whether it's arbitrage, whether it's flexibility management, or whatever. Or, like we have seen it in Marina Palms, serving

Speaker Change: In infrastructure and that is what will be more and more topic, we see that the geopolitical issues are not sourced and maybe will not be solved over the next year. So it will be more and more important that networks are coming together supporting here and the best way the broad scope of service.

Speaker Change: As already mentioned.

Speaker Change: And also that we can follow the market specifics and that we can offer them individually it interfaces or Apis, which allows our customers to adopt the physics the physical opportunities.

Speaker Change: The platform from <unk> into their own business models, whether it's trading or whether it's arbitrage whether its flexibility management.

Speaker Change: Or whatever.

Speaker Change: Or like we have seen it in Marina palms, serving the local customer.

Thomas Beadle: Next page. Before I hand over to Wolfgang to talk about the numbers, I want to thank you. Thank you for listening. Thank you for all your support, also in very volatile times. I'm proud of what our team has achieved over the last years and especially that we have been able to close 2023 on a level that we have communicated to you as an investor, to the market, to the analysts. And with that, I want to hand it over to Wolfgang. Yeah,

Speaker Change: Next page before I hand over to Wolfgang to talk about the numbers I want to thank you. Thank you for listening. Thank you for all your support also.

Wolfgang Brown: Very volatile time.

Speaker Change: I am proud what our team has reached over the last years, and especially that we have been able to close 2023.

Wolfgang Brown: On a level, what we have communicated to you as it relates to the market to the analysts and with that I.

Speaker Change: 100 handed over to Wolfgang.

Thomas Beadle: Yeah, next slide, please So that shows the development of the revenues. I will be relatively short to open the line for questions as soon as possible.

Wolfgang Brown: Next slide please.

Wolfgang Brown: So that shows develop development of the revenues.

Wolfgang Brown: I will be relatively short open the line for questions as soon as possible. So what we see on this slide and we as you know we already published of rough financials in February. So you can see we.

Wolfgang Brehm: So what we see on this slide is, and we, as you know, we already published our rough financials in February. So you can see we achieved what we announced to deliver, so $107.4 million in revenues. And our guidance for this year, we reiterate our guidance which we gave out earlier in the year. So this year, we are approximately doubling our revenues to $200 million. That's the target and guidance for this year.

Wolfgang Brown: Achieved what we announced to deliver $107 4 million in revenues.

Wolfgang Brown: And our guidance for this year, we reiterate our guidance, which we gave out earlier in the year. So this year over year, approximately doubling our revenues to $200 million thats, the target and guidance for this year.

Wolfgang Brehm: For last year, the adjusted EBITDA was around minus 16.6, as announced in February. But more interesting is that the EBITDA for Q4, where we had 50 million in revenues, the performer adjusted EBITDA in Q4 amounted to positive 4.6 million, which shows that the company for the first time after the DESPEC and IPO was able to deliver a positive result on a performer EBITDA basis. So next slide, please.

Wolfgang Brown: Last year, the adjusted EBITDA was around minus 16 six.

Wolfgang Brown: As announced in February more interesting is that the EBITA for Q4, where we had $50 million in revenues pro forma adjusted EBITDA in Q4 amounted to positive $4 six.

Wolfgang Brown: Million, which.

Wolfgang Brown: Shows that the company first time after the spec and IPO.

Wolfgang Brown: It was able to.

Wolfgang Brown: Deliver a positive result on a pro forma EBITDA basis. So next slide please let me summarize.

Wolfgang Brehm: Let me summarize the highlights of the presentation: more than 1500 charging points. We have delivered in total, so this means we have delivered, installed, and not yet installed two and a half thousand battery buffer DCFC charging points. Our major selling products last year were charge boxes and charge posts, which have been proven by real operating data from customers. So those products are very high-performing, high-usage products in the market and exceed customer expectations. So currently, we are basically benefiting from the fact that more than 10 years of product development are now coming to fruition and entering the market with bigger numbers. The revenue target, as said, we achieved 107.4 million. We confirmed the revenue target of 200 million for this year.

Wolfgang Brown: The the highlights of the presentation, so best in class what Thomas mentioned.

Wolfgang Brown: More than 500 charging points.

Wolfgang Brown: Installed stood with US we have delivered in total so this means delivered installed and not yet installed two and a half thousand battery buffer DCF C charging points, our major selling products last year, we charged box in charge post who has been proven by real operating data from customers.

Wolfgang Brown: So those products are very high performing high usage products in the market and exceed customer expectations. So currently we are basically <unk>.

Wolfgang Brown: Benefits from the fact that more than 10 years of product development and now coming towards success in entering the market with bigger numbers.

Wolfgang Brown: The revenue target has said we achieved $107 4 million, we confirm the revenue target 200 million for this year.

Wolfgang Brehm: We increased our number of customers, which is quite important. Also, we see Blue Chip, very well-known names going into the market, and also some of our smaller startup customers getting funded, as we have mentioned before, so that we can see traction from both sides, new Blue Chip clients but also our established customer base. And we are now working in North America with new management expertise and are expanding as well. You can see that we more than 5x grew our revenues in the United States. Margins, we are positive for positive adjusted EBITDA in Q4. We are targeting to be positive on an adjusted EBITDA basis for this fiscal year.

Wolfgang Brown: We increased our number of customers, which is quite important so we see.

Wolfgang Brown: Blue chip very well known names going into the market and also some of our smaller startup customers getting funded.

Wolfgang Brown: So I mentioned before so that we can see.

Wolfgang Brown: Traction from two sides, new Blue chip clients, but also our established customer base and we.

Wolfgang Brown: And our working in North America, with New management expertise.

Wolfgang Brown: Our expanding as well, but you can see that we more than.

Wolfgang Brown: At five X grew our revenues in the United States margins, we are positive for positive adjusted EBITDA in Q4.

Wolfgang Brown: Our targeting to be positive on an adjusted EBITDA basis for this fiscal year.

Wolfgang Brehm: And the incremental margin improvements are driven by high value-add for our clients, as Thomas pointed out. Service revenue growth is also important. Our products are now going into the market, and within our model. We are also selling service and contracts to our customers, which has proven to be very successful. And there is a high demand because we can support customers for a very high uptime of our system. And, of course, this year, we will see another volume impact when we expand revenues and the number of products shipped. So with this, I end my very short finance presentation, and I give it back to the operator. Hmm.

Wolfgang Brown: The incremental margin improvements are driven by high value add for our clients as Thomas pointed out service revenue growth are also important.

Wolfgang Brown: Our products are now going into the market it within our model we are also.

Wolfgang Brown: Selling service contracts.

Wolfgang Brown: Contracts to our customers, which has proven to be.

Wolfgang Brown: Successful that there is a high demand because we also cannot support the customers for a very high uptime of our system and of course this year, we will see another volume impact.

Wolfgang Brown: We expand the.

Speaker Change: The revenues and the number of products shipped so with this site by very short finance presentation, and I give back to the operator please.

Speaker Change: We will now begin the question and answer session.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: I'll ask a question you May press Star then one on your Touchtone phone.

Speaker Change: If youre using a speakerphone please pick up your handset before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. The first question today comes from Matt Somerville with D.A. Davidson. Please go ahead.

Speaker Change: Is it any time your question has been addressed and you would like to withdraw your question. Please press Star then two.

Speaker Change: The first question today comes from Matt Summerville with D. A Davidson. Please go ahead.

Speaker Change: Is there you have canyon is on for Matt Summerville.

Matt Summerville: I just wanted to check in on the 2024 guidance with respect to the first half and second half revenue and EBITDA cadence.

Wolfgang Brehm: Hi Matt. Good morning to you.

Wolfgang Brehm: So, first of all, as mentioned in the press release, we expect a stronger second half of the year, so a back-end-loaded fiscal year in terms of revenue. Of course, we do not want to disclose the exact number of products which are shipped into the market, if we just say 200 million in revenues, but it's not wrong to assume, if you look at the numbers which are published, that we will bring an equivalent number times, maybe two, if it comes to 200 million compared to last year, into the market. If you look at our presentation. Um...

Matt Summerville: Similarly, I was curious on your unit volume.

Matt Summerville: Assumptions baked into that guide and similarly geography.

Matt Summerville: Hi, Matt.

Matt Summerville: Good morning to you. So first of all as mentioned in the press release, we expect a stronger second half of the year to a back end loaded fiscal year in terms of revenue.

Matt Summerville:

Matt Summerville: Of course, we do not want to disclose the exact number of products, which are shipped into the market given our if we just say $200 million in revenues, but it's not wrong to assume if you look at the numbers, which are which are published that we will bring.

Matt Summerville: Trivalent numbers times, maybe two if it comes to the $200 million compared to last year into the market. If you look into our presentation.

Wolfgang Brehm: This said, also, we are not expecting, for instance, to have margin decreases. We are expanding with the market. We are not expanding the market by, for instance, reducing prices or anything like this. We simply sit in a good spot in the growing market and expect to also double the output in terms of numbers of our system when it comes to charging. Great, thank you.

Matt Summerville: <unk>.

Matt Summerville: This set also.

Matt Summerville: We are not expecting for instance to have margin decreases we are and we are expanding with the market we are not expanding.

Matt Summerville: The market by for instance are reducing prices so anything there because we simply sit in a good spot in the growing market and expect to also doubled the output in terms of numbers of our system. If it comes to charging products.

Speaker Change: Great. Thank you.

Speaker Change: Do you have any early feedback or any read on the charge post demand in the U S. Similarly are there any existing supply chain or factoring challenges as of late.

Wolfgang Brehm: Yeah, we already spoke about the ChargePost, and we said that we would introduce the ChargePost in 2025. Now we have the development changes for NACS. We will do that right away, and certification, UL, everything is right now ongoing, and we expect the ChargePost to be announced in the U.S. on

Speaker Change: Yeah, we already have spoken about the charge post and we said that.

Speaker Change: We will.

Speaker Change: <unk> introduced the charge for 2025 now we are.

Speaker Change: The development changes of NACS.

Speaker Change: We will do that right away and certification.

Speaker Change: The thing is right now ongoing and we expect the charge to be.

Speaker Change: <unk> announced in the U S on the exhibition, which is Q1 2025.

Speaker Change: Any further question Smith.

Wolfgang Brehm: Any further questions, Matt?

Speaker Change: Okay.

Operator: The next question comes from Pavel Molchanov with Raymond James. Please go ahead. Thanks for taking...

Smith: Thank you.

Smith: The next question comes from Pavel <unk> with Raymond James. Please go ahead.

Pavel: Thanks for taking the question.

Wolfgang Brehm: Thanks for taking the question. Let me start with a similar question to the previous analyst. When we think about EBITDA positive for the year as a whole, should we assume negative EBITDA in the first half and positive in the second half? Is that a fair generalization?

Pavel: Let me start with a similar question to the previous analyst.

Pavel: When we think about EBIT.

Pavel: Positive for the year as a whole should we assume negative EBITDA in the first half positive in the second half is that a fair.

Pavel: Generalization.

Wolfgang Brehm: It's a generalization. Of course, it's driven by types of customers and products sold in the market. In general terms, Pavel, it's such that, of course, the second half, if, like, if you see for instance the Q4 numbers, in the second half, if we have higher revenues, we will have a stronger result. But in general, we are not expecting it to be negative as in the previous years and quarter

Pavel: Okay.

Pavel: It's a generalization of course, it's driven by types of customers.

Pavel: <unk> sold into the market.

Pavel: In general in General terms, Pavel it's such debt.

Pavel: Of course, the second half if like if you see for instance, the Q4 numbers in the second half if we have higher revenues. We will have a stronger result, but in general we are not expecting to be negative as in the previous years and quarters.

Pavel: Okay.

Pavel: As you look to build a significant U S business.

Wolfgang Brehm: As you look to build a significant U.S. business, will that include establishing a manufacturing operation in the United States?

Pavel: Will that include establishing a manufacturing operation in the United States.

Thomas Beadle: Pavel, we are still on the same page about what we have planned in the U.S. So, as you know, in Obun, we have started with the battery assembly. Meanwhile, we had two major events in the U.S.

Pavel: In parallel we are still online what we have planned in the U S. So as you know in <unk>. We have started with the battery Assembly. Meanwhile, we had two major events in the United States number one the market has changed and now request and Acs at least as a replacement.

Thomas Beadle: Number one, the market has changed and now requests an ACS, at least as a replacement. That's the reason why we will postpone the introduction of the charge post in the U.S. a little bit, because the certified cables from our suppliers will be available to the market in Q1 next year, and we cannot ship the units without the cables. So that is one reason why it's a little bit slow or why it's delayed in the U.S. And the second is the Inflation Reduction Act and the NAVY funding. That all has changed many times, and we have seen that in the sentiment of EV charging to follow these rules and regulations.

Pavel: That's the reason why we will.

Pavel: Postpone the.

Pavel: Introduction of the charter post in the U S a little bit because the 35 cable from our suppliers will be available.

Pavel: To the market in Q1 next year, and we cannot ship the units without the cadence.

Pavel: So that is one reason why it's a little bit slow or.

Pavel: Delays in the U S and the secondaries.

Pavel: The inflation reduction act and the Navy fundings.

Pavel: That all has changed many times and we've seen that in the sentiment of EV charging to follow these.

Pavel: Rules and regulation there was uncertainty also on the customer side, we had many many talks with.

Thomas Beadle: There was uncertainty also on the customer side. We had many, many talks with potential customers, and they said, okay, I would like to, you know, buy a unit, but I don't really know how to apply for the subsidies. How do I get it?

Pavel: Potential customers and they said, okay I would like to.

Pavel: Buyer unit, but I don't really know how to apply for the subsidies fundings, how do I get it what is requested from <unk> to get.

Thomas Beadle: What is requested from ADS-Tec to get as confirmation from us? And so we had last year a lot of discussions here, but still, the target is that we, in the United States, ADS-Tec will have, over time, own, let's say, outside of the U.S. for the U.S. That's the way we have said it. So we have already started to work with local suppliers to be prepared to then get the supply chain also moved over to the United States. So this plan has not changed. It has only been postponed for several reasons, and in total, there is no change.

Pavel: As confirmation from us and so we had last year.

Pavel: A lot of discussions here, but still the target is that we in the United States <unk> will have over time one.

Pavel: Let's say out out of the U S for the U S. That's the way we have set it. So we have already started to work with local suppliers to be prepared to then get the supply chain also.

Pavel: <unk> over to the United States. So this plan has not changed it only has been postponed for whatever reason reasons and.

Pavel: In total there is no change in UC, our investments now in urban whether through a natural course was really experienced guy.

Thomas Beadle: And you see our investments now in Auburn, whether it's Renato Gross, who is a really experienced guy and he knows how to build a business, or now we have sent over people, we are hiring new people, we are expanding our sales, but we go step by step and with a clear plan from the low-hanging fruit of what's coming next. And we don't want to go and now, for example, take a lot of money into the company and build a factory which is completely focused on an IRA or funding or tax credit basis, and then the market may change or might be delayed, and then we could get in trouble because the sales and the production capacity are not aligned, and then we get stuck.

Pavel: And he knows how to build a business or now we have sent over people. We are hiring new people, we are expanding our sales, but we go step by step and with a clear plan.

Pavel: From the low hanging fruits, what's coming next and we don't want to go and now for example, take a lot of money into the company and build a factory which is completely.

Pavel: Focused on our own.

Pavel: IRI or funding or tax credit basis, and then the market may change or might be delayed and then we could get in trouble because the salesman.

Pavel: Production capacity is not aligned and then we got stuck and we have seen some of these cases in the U S. Also by the way the battery business.

Thomas Beadle: And we have seen some of these cases in the U.S. Also, by the way, the battery business. I started very early to look for partners in the United States where we could get batteries and cells. It is not as easy as we may think, and that is ongoing. I'm 100 percent convinced that we will see a lot of supply out of North America, including Canada, and we know that that's going to happen, but it's ongoing.

Pavel: Started very early to look for partners in the United States, where we could get batteries cells.

Pavel: It is not as easy as we May think and that is ongoing I am 100% convinced that we will see a lot of supply out of North America, including Canada.

Pavel: We know that that's going to happen, but it's ongoing and so the answer is yes, we will stay with our decision and opened we will go step by step and yes, we plan to have a local for local strategy in the United States or North America.

Thomas Beadle: And so the answer is yes, we will stay with our decision in Auburn. We will go step by step, and yes, we plan to have a local for local strategy in the United States or North America.

Pavel: Okay.

Wolfgang Brehm: Last question from my end: what was the percentage of revenue from Germany in 2023 and how will that change this year?

Speaker Change: Last question from my end, what was the percentage of revenue from Germany in 2023.

Pavel: How will that change this year.

Wolfgang Brehm: So, the German content went down slightly. If you look later, if you look into our revenue breakdowns in the filings, so Germany is around 80%, and Europe is around 80%. Remarkable is, so Germany and Europe grew by 80%, the US grew by 5x, not significantly, it's 5% US and then other countries. So there is, of course, Germany being very strong as a big country in Europe. The other countries, like the Nordics, like Benelux, are growing; the DHCH countries, the DACH countries are growing. France has now come in. France came in.

Pavel: So the the German content went down slightly if you. If you look later, if you look into the revenue breakdowns in the filing so Germany is around.

Pavel: Europe is around 80%.

Pavel: Marketplace, So, Germany Europe, 80%.

Pavel: U S grew five ex not significantly at 5% U S. And then other countries. So there is of course, Germany being very strong is a big country in Europe. The other countries like Nordics like Benelux are growing.

Pavel: The DH DH countries. The Doc countries are growing front now France came in.

Wolfgang Brehm: Of course, Germany is, by population, very big, but the others, as Thomas pointed out, have a higher adoption rate. So not only is the customer portfolio diversifying, but countries are also diversifying now. And going forward, what you saw in the graph is that we still expect Europe to be faster at EV adoption and faster at extending the charging grids and networks. So for the next maybe foreseeable shorter-term view of years, it's a stronger Europe and then the U.S. will kick off at the end of the day, if you remember the graph which Thomas showed.

Pavel: Of course, Germany is by population very big but the others as Thomas pointed out have a higher adoption rate. So.

Pavel: Not only the customer portfolio is diversified but also the countries are diversifying now.

Pavel: And going forward, what you saw in the graph as we still expect Europe being faster in EV adoption, and foster and extending the charging grips and networks. So.

Pavel: So for the next maybe placebo.

Pavel: Short term shorter term view on years, it's stronger Europe than the U S will kick off at the end of the day. If you remember the graph, which Thomas shows so and then it will shift to the U S. And this is why we are preparing let's say with hindsight of course, we are preparing a building.

Wolfgang Brehm: So and then it will shift to the U.S., and this is why we are preparing, let's say with hindsight, of course we are preparing to build, if the demand is there, an assembly facility in the U.S. to serve our U.S. customers. And we see for some...

Pavel: Building.

Pavel: If the demand is there.

Pavel: Assembly facility in the U S to serve our U S customer base.

Pavel: And we see flat number key they are close to us.

Thomas Beadle: And we see, for example, Kia, they are close to us in Auburn, or close to Auburn, and we have now installed a charge box close to our factory or site in Auburn, and they are coming and charging their EVs, and you can see how.., how positive it is received and very welcome that you can really, even in these decentralized areas, you can supercharge your cars and so, hey, that's at the very beginning that it's such a huge country, it is impossible to, you know, expand the grid in all the different countries and corners for, yeah, we are positive with the U.S., it might be a little bit delayed, but it will.

Pavel: In Oregon, or close to <unk>, and we have now installed the charge booked close to our.

Pavel: In February our site in <unk> and they are coming in charge, the Evs and you can see how.

Pavel: How positive it is received and very welcome that you can really even in these decentralized areas you can supercharge your costs.

Pavel: So that's at the very beginning that is such a huge country. It is.

Pavel: Impossible to.

Pavel: Expand the grid in order.

Pavel: Different countries and corners.

Pavel: We are positive with the U S. It might be a little bit delayed, but it will come.

Speaker Change: Thank you very much.

Speaker Change: It will come.

Operator: The next question comes from Craig Irwin with Roth Capital Partners. Please go ahead.

Speaker Change: The next question comes from Craig Irwin with Roth Capital Partners. Please go ahead.

Operator: Good morning, and thank you for taking my question, or I should say good afternoon. I was hoping that you'd like... Hi.

Craig Irwin: Good morning, and thank you for taking my questions.

Craig Irwin: I should say good afternoon.

Craig Irwin: <unk>.

Craig Irwin: Hi, Mike.

Wolfgang Brehm: I was hoping that you might be able to talk a little bit more about your backlog and your business pipeline. Do you maybe have an updated number for us on the backlog today, the committed backlog as of April 30th? And can you maybe characterize for us, you know, you saw a five-fold growth in the United States. Those were very early units, and many of those customers were taking their first units last year.

Craig Irwin: Hi.

Craig Irwin: I was hoping that you might be able to talk a little bit more about your backlog.

Mike: And your business pipeline do you maybe have.

Mike: Updated number for us on the backlog today the committed backlog.

Craig Irwin: At April 30.

Craig Irwin: And can you maybe characterize for us.

Craig Irwin: You saw five fold growth in the United States.

Craig Irwin: Those were very early units and many of those customers who were taking their first units last year.

Wolfgang Brehm: You know, are you likely to see similar strong growth in the U.S. based on what you have in your backlog? And then, is the NEVI funding starting to support an accelerating outlook for you in the United States? And business pipeline, anything quantitative that you could share would be really useful. Thank you.

Craig Irwin: Are you likely to see similar strong growth in U S.

Craig Irwin: Based on what you have in backlog.

Craig Irwin: And then.

Craig Irwin: Is the <unk> funding.

Craig Irwin: Starting to support an accelerating outlook for you in the United States.

Craig Irwin: <unk> and <unk>.

Craig Irwin: Business pipeline anything quantitative that you could share would be would be really useful. Thank you.

Wolfgang Brehm: Yes. So, hi Craig. How are you?

Speaker Change: Yeah, So hi, Craig how are you. So let me start with the backlog. So we will disclose the April backlog with our quarter one numbers.

Wolfgang Brehm: So, let me start with the backlog. So, we will disclose the April backlog with our quarter one numbers. We will change, because I have very shortened my presentation, we will change to quarterly reporting this year. So, it's not a full, like U.S. reporting, but we will give you a trading update on the basis of Q1 within the next four weeks.

Speaker Change: We will change because they are very short in my presentation.

Speaker Change: Presentation, we will change to quarterly reporting this year. So it's not a foods food like U S U S.

Speaker Change: Reporting, but we will give you a trading update on the basis of Q1 within the next four weeks and then we will disclose the backlog if you take the backlog as of December 31, It's 180 million eight zero million.

Wolfgang Brehm: So, then we will disclose the backlog. If you take the backlog as of December 31st, it's 80 million, 8-0 million. The backlog for the year, so you can see that already at the end of December, and this backlog turns around this year, the backlog is sufficient to cover more or less the whole of last year. So we start with a quite solid backlog for this year. The pipeline is larger than the backlog. If you take our filings, it's around at the end of the year. We had a pipeline with, let's say, a certain high probability, as we define it internally, of around 100 million.

Speaker Change: The backlog for the year. So you can see that already end of December and this backlog turns around this year.

Craig Irwin: The backlog is sufficient to cover more or less the whole of last year. So it will start with a quite solid backlog into the year.

Craig Irwin: Pipeline.

Craig Irwin: The pipeline is larger than the backlog if you should take our filings.

Craig Irwin: Around at the end of the year, we had a pipeline with let's say a certain.

Craig Irwin: Higher profitability as we defined it internally of around $100 million.

Wolfgang Brehm: So having said this, we have a good start to the year, but as I said before, maybe it's back-end loaded, so the same as we saw last year. So then I think Nevi, I give to Thomas. What do we expect from Nevi? Yeah, Nevi, you know, the question is who will benefit from Nevi?

Craig Irwin: No.

Craig Irwin: Having said this we have a good start into the year, but what I said before it may be.

Craig Irwin: Back end loaded so the same what we saw in last year.

Speaker Change: So then as I think never give to Thomas what we expect from <unk>.

Speaker Change: The question is who will benefit from the Navy.

Thomas Beadle: Yeah, NEVI, you know, the question is who will benefit from the NEVI funding and if you look in details what's happening here is the companies who benefit from NEVI funding are the ones who will do the installation or operation or the utilities themselves. And so for us as a partner, as a platform partner, it is important to have additional values in USPs which gifts our customers and partners, the need or the the wish to go with us and not just for price and because if you take away all the fundings and subsidies and everybody's naked then at the end of the day you have to have additional values to survive and to be on the right place and just building a business on funding and subsidies and tax credits that's never good so it might be an accelerator we would take the accelerator but we would not invest only hoping that this accelerator will bring us up as a company because if you take it away then everything is gone that means yes and and I cannot disclose the the company's names but we know that customers from us they were filing or they were applying for NEBI funding and they got it with ADS-Tec technology and then we are in very close discussion what is really needed and that is it's not one serves all for the whole U.S. there are different waivers locations you can talk to the utility companies to the grid operators and say okay is that needed is that necessary we have different regulations in California which are the stronger ones compared to others and that is what we do and we want that our customer partner picks ADS-Tec for the additional services and not just because of the cheapest price and So, Navy funding is okay and fine, yeah, but at the end of the day it's neutral, it's the same for anybody.

Craig Irwin: If you look in detail what's happening here is.

Craig Irwin: The the companies who benefited from from <unk> funding.

Craig Irwin: The one who will do the installation or operation or the utilities themselves and.

Craig Irwin: So for us as a partner as a platform partner it is important to have additional values and USPS, which.

Craig Irwin: Give our customer and partner.

Craig Irwin: <unk>.

Craig Irwin: The need or the wish to go with us and not just for pricing because if you take away all the fundings and subsidies and everybody's naked than at the end of the day you have to have additional values to survive and to be on the right place and building a business on fundings as subsidies and tax credits.

Craig Irwin: That's never good so it might be an accelerator, we would take the accelerated but we would not invest only hoping that this accelerator.

Craig Irwin: Will bring us up as a company because if you take it away then everything has gone.

Craig Irwin: That means yet.

Craig Irwin: And I cannot disclose the company's names, but we know that customers from us they were filing or they were applying for navy funding and they got it with <unk> technology and then we are in very close discussions what is really needed and that is it's not one serves all for the whole U S. They are.

Craig Irwin: Different waivers locations you can talk to the utility companies to the grid operators and say, okay that needed is that necessary, we have different regulations in California, which the stronger ones compared to others and that is what we do and we want that our customer partner peaks avs take for the additional services and <unk>.

Craig Irwin: Not just because of.

Craig Irwin: The cheapest price.

Craig Irwin: So navy finding is okay and fine but at the end of the day, it's neutral it's the same for anybody so.

Thomas Beadle: So, it's good, it's a warm rain, it's a warm shower if it comes, and then we take it, but it can never be the basis of the business we want to develop, because if you take it away, then everything is gone.

Craig Irwin: It's good it's a warm rain, it's a warm shower if it comes and then we take it but it can never be the basis of the business, we want to develop because if you take it away then everything is gone.

Operator: This concludes our question and answer session. I would like to turn the conference back over to the speaker for any closing remarks.

Speaker Change: This concludes our question and answer session I would like to turn the conference back over for any closing remarks.

Thomas Beadle: Yeah, again, thank you for supporting ADS-Tec and for your interest in what we do. Thank you for all your support, and we are looking forward to... to getting 2024 as successful as 2023 has been, and we are very confident. And with that, I wish you a very nice and pleasant day. Thanks again.

Speaker Change: Yes again, thank you for supporting <unk> for your interest in what we do thank you for all support.

Speaker Change: And we're looking forward to.

Speaker Change: To getting 2024 as successful as 2023 has been and we're very confident with that.

Speaker Change: Wish you, a very nice and Pleasant day, Thanks again.

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

Speaker Change: The.

Craig Irwin: Vince has now concluded. Thank you for attending today's presentation you may now disconnect.

Craig Irwin: [music].