Q4 2023 Heramba Electric PLC Earnings Call and Business Update
Speaker Change: Good morning and welcome to Haramba Electric PLC's Investor Webcast 2023 Financial Results and 2024 Operational Updates. I'd like to begin by reading the company's safe harbor statement.
Operator: PLC's Investor Webcast, 2023 financial results, and 2024 operational updates.
Operator: LLC's Investor Webcast, 2023 Financial Results, and 2024 Operational Updates. I'd like to begin by reading the company's Safe Harbor Statement.
Operator: I'd like to begin by reading the company's Safe Harbor Statement. Certain statements included in this call that are not historical facts are forward-looking statements for purposes of the Safe Harbor provisions under the United States' Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the plans and objectives of future management for future operations, business strategy, anticipated growth, and market opportunity. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as it must not be relied on by any investor as a guarantee, an assumption, a prediction, or a definitive statement of fact or probability.
Operator: Certain statements included in this call that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the plans and objectives of management for future operations, business strategy, anticipated growth, and market opportunity. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assumption, a prediction, or a definitive statement of fact or probability.
Operator: Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. These forward-looking statements are subject to a number of risks and uncertainties discussed under the heading Risk Factors and the Definitive Proxy Statement Prospectus filed on March 19, 2024 by Haramba Electric and other documents filed or to be filed by Haramba Electric with the U.S. Securities and Exchange Commission. Now, I will turn the call over to Michele Molinari, CEO.
Speaker Change: Certain statements included in this call that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995.
Speaker Change: These forward-looking statements include, but are not limited to, statements regarding the plans and objectives of management for future operations, business strategy, anticipated growth, and market opportunity.
Speaker Change: These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assumption, a prediction, or a definitive statement of fact or probability.
Operator: Actual events and circumstances are difficult or impossible to predict and will defer from assumptions. These forward-looking statements are subject to a number of risks and uncertainties discussed under the heading Risk Factors and the definitive proxy statement prospectus filed on March 19, 2024, by Heramba Electric and other documents filed or to be filed by Heramba Electric with the U.S. Securities and Exchange Commission.
Speaker Change: Actual events and circumstances are difficult or impossible to predict and will differ from assumptions.
Speaker Change: These forward-looking statements are subject to a number of risks and uncertainties discussed under the heading Risk Factors and the Definitive Proxy Statement Prospectus filed on March 19, 2024 by Haramba Electric and other documents filed or to be filed by Haramba Electric with the U.S. Securities and Exchange Commission.
Michele Mollenari: Now, I will turn the call over to Michele Mollenari, CEO. Thank you very much for this introduction. Ladies and gentlemen, good morning.
Speaker Change: Now, I will turn the call over to Michele Molinari, CEO .
Michele Molinari: Thank you very much for this introduction. Ladies and gentlemen, good morning.
Michele Molinari: Thank you very much for this introduction. Ladies and gentlemen, good morning. Welcome to the very first Haramba Electric management update on business and on recap on fiscal year 2023.
Michele Molinari: Welcome to the very first Haramba Electric management update on business and a recap on fiscal year 2023. Please allow me to go forward with our slide deck. We start, of course, with some statements and disclaimers, and we will go straight away to a short overview of what we will be talking about. Together with me on the call are Peter Mimmler and Alex Ketterl. I will introduce them shortly, and then we will speak about the business combination of Heramba and Parac.
Michele Mollenari: Welcome to the very first Heramba Electric management update on business and on recap on fiscal year 2023. Please allow me to go forward on our slide deck. We start, of course, with some statements and disclaimers, and we will go straight away to a short overview of what we will be talking about.
Michele Molinari: Please allow me to go forward on our slide deck. We start, of course, with some...
Michele Molinari: statements and disclaimers and we will go straight away to a short overview of what we will be talking about.
Michele Mollenari: Together with me, here on the call are Peter Mimler and Alex Ketterl. I will introduce them shortly.
Speaker Change: Together with me here on the call are
Speaker Change: Peter Mimler and Alex Ketterl. I will speak about the business combination of Haramba and Perak.
Michele Mollenari: Then we will speak about the business combination of Heramba and Perak. Our strategy, I will then introduce, so we will introduce, keep it to you, the figures of 2023 and where we are in 2024.
Speaker Change: Our strategy, I will then introduce, or we will introduce, keep it to you, the figures of 23 and where we are in 24, plus...
Michele Mollenari: Plus, some about the key wins in 2023, and we will then end with the Q&A session.
Speaker Change: some about the key wins in 2023, and we will then end with the Q&A session.
Michele Mollenari: First of all, we would like to introduce ourselves. My name is Michele Mollenari. I am Swiss. I am more than 30 years in this mobility and railway and bus business. I have been working and living internationally to implement projects in railways, buses, etc. And I am very excited to be the CEO of Heramba Electric. At the same time, I am also the Managing Director of Kipe Electric USA.
Michele Molinari: Our strategy, I will then introduce, or we will introduce, keep it to you, the figures of 23 and where we are in 24, plus some about the key wins in 2023, and we will then end with the Q&A session. First of all, we would like to introduce ourselves. My name is Michele Molinari. I'm Swiss. I've been in this mobility and railway and bus business for more than 30 years. I've been working and living internationally to implement projects on railways, on buses, etc. And I'm very excited to be. At the same time, I'm also the Managing Director of Keep Electric USA. We will discuss this further down the road. Next, Peter, may I hand it over to you, please?
Speaker Change: First of all, we would like to introduce ourselves.
Michele Molinari: My name is Michele Molinari. I'm Swiss.
Michele Molinari: I'm more than 30 years in this mobility and railway and bus business. I've been working and living internationally to...
Michele Molinari: implement projects in railways, in buses, etc. And I'm very excited to be the CEO of Heramba Electric.
Michele Molinari: At the same time, I'm also the Managing Director of Keepe Electric USA. We will discuss this further down the road.
Michele Mollenari: We will discuss this further down the road.
Michele Mollenari: Next, Peter, may I hand it over to you, please?
Michele Molinari: Next, Peter, may I hand it over to you, please?
Peter Mümmler: Hello, I'm Peter Mümmler. I'm the CFO of Haramba Electric and CEO of Kipe Electric. I started with Kipe Electric in May this year, and I'm happy to take the CFO position now for Haramba Electric. My background is I'm leading different companies globally in the US, in Europe, Germany, and China. I've worked in different industries as a CFO, and I'm pretty well familiar with different business models like project or product businesses or service and software businesses.
Peter Mimler: Hello, I am Peter Mimler. I am the CEO of Heramba Electric and Kipe Electric. I started with Kipe Electric in May this year. I am happy to take the CEO position of Heramba Electric. My background is leading different companies globally in the US, in Europe, Germany, China. We are in different industry as a CFO and I am pretty good familiar with different business model like project or product business or service and software business. Happy to... to be here.
Peter Mümmler: Hello, I'm Peter Mümmler. I'm the CFO of Haramba Electric and CFO of Kipe Electric. I started with Kipe Electric in May this year. I'm happy to take the CFO position now for Haramba Electric. My background is a leading
Michele Molinari: different companies globally in the US, in Europe, Germany, China.
Michele Molinari: worked in different industry as a CFO and I'm pretty good familiar with different business model like project or product business or service and software business. Happy to to be here.
Peter Mümmler: Happy to be here.
Michele Molinari: Thank you, Peter. Alex, please. Yeah. Hello, everybody.
Peter Mimler: Thank you, Peter. Alex, please.
Alex Ketterl: Yeah, hello everybody, this is Alex from the kitchen. I'm the CEO of Keep Electric, and I'm more than 20 years in this transportation business for road and rail. I was working different senior management positions for companies like Zeeman, Deutsche Bahn, and Bombardier. I'm four years with Keeper, and I'm very happy for today's meeting.
Alexander Ketter: Hello everybody, this is Alexander Ketter. I'm the CEO of Keep Electric, and I have more than 20 years in this transportation business, for road and rail, and I have worked in different senior management positions for companies like Siemens, Deutsche Bahn, and Bombardier. I have been four years with Kieper, and I'm very happy about today's meeting.
Michele Molinari: Thank you, Peter. Alex, please. Yeah, hello everybody. This is Alexander Ketter. I'm the CEO of Keep Electric and more than 20 years in this transportation business.
Alexander Ketter: for road and rail, and I was working different senior management positions for companies like Siemens, Deutsche Bahn and Bombardier. I'm four years with Kieper, and I'm very happy for today's meeting.
Michele Molinari: Thank you very much, Alex. As you can see, ladies and gentlemen are on the call. We are, uh... people, engineers, managers with a long experience and track record in the mobility industry. And for us, it's not only a job; it's a passion, and this is what drives us forward every day. Let me go forward and give you a little bit of history since it's the first time Haramba Electric is presenting itself and where we come from.
Michele Mollenari: Thank you very much, Alex. As you can see, ladies and gentlemen on the call, we are experienced people, engineers, managers with the long experience and track record in the mobility industry, and for us it's not only a job, it's a passion, and this is about drives us forward every day.
Speaker Change: Thank you very much Alex. As you can see ladies and gentlemen on the call
Speaker Change: We are...
Speaker Change: experienced
Speaker Change: people, engineers, managers with a long experience and track record in the mobility industry.
Speaker Change: And for us it's not only a job, it's a passion.
Speaker Change: And this is what drives us forward every day.
Michele Mollenari: Let me go forward and a little bit into the history since it's the first time Heramba Electric is presenting itself where we come from. Heramba Electric acquired Keep Electric in February 2024. Keep is Keep Electric is a German and US-based technology company focused on the decarbonization of commercial and public transportation vehicles and charging solutions, etc. This continued then in April as we started the business combination with Perak, SPAC, and with this, Heramba began to a new life, a new setup which led then end of July 2024 to the listing to the public listing of Heramba Electric on Nasdaq with the symbol Pita, P-I-T-A.
Speaker Change: Let me go forward and...
Michele Molinari: Heramba Electric acquired Keep Electric, a German and U.S.-based technology company focused on the decarbonization of commercial and public transportation vehicles and charging solutions, etc. This continued then in April as we started the business combination with PERA. And with this, Seramba began to... to a new life, a new setup.
Harambe Electric: little bit into the history since it's the first time Haramba Electric is presenting itself.
Speaker Change: Where we come from. Heramba Electric acquired Keep Electric in February 2024
Michele Mollenari: So this was, of course, for all of us and the whole team who made this possible a big moment, and we are at the beginning of this journey, and there is much more to come, and we are excited to go forward.
Michele Molinari: So this was, of course, for all of us and the whole team who made this possible, a big moment. And we are at the beginning of this journey, and there is much more to come, and we are excited to go forward. Now, who are we and what do we do? Heramba Electric is focused on the acceleration of the decarbonization in commercial and public transportation. You all, all of us, we know we have, we want to achieve some goals with regard to the reduction of carbon emissions, etc., and that there are 2050 goals, etc., and everybody talks about the transition towards this on my website, www.hamskey.com. We will go off the beaten path.
Michele Mollenari: Now what? Who are we and what do we do? Heramba Electric is focused on the acceleration of the decarbonization in commercial and public transportation. You all, all of us, we know we have we want to achieve some goals with regard to reduction of carbon emissions, etc. and that there are transitions towards this to reach these goals and we are specialists in this and this drives us forward.
Michele Mollenari: How do we do this? We do this by, if I say it with my We go off the beaten path, we look for hidden champions and in the respective industry we have experienced a track record and the future in commercial and public immobility. And we invest in sustainable clean energy technology companies, and we want to make a dent into the universe to do that and to make a strong contribution in this going forward. The market in which we are active is the global market in the first place with two strong centers, accessible centers for us, let's say Europe and North America.
Speaker Change: We go off the beaten path.
Speaker Change: We look for hidden champions.
Michele Molinari: We look for hidden champions in the respective industry who have experience, a track record, and the future of commercial and public e-mobiles, and we invest in sustainable, clean energy technology companies, and we want to make a dent in the universe to do that and to make a strong contribution to this going forward. The market in which we are active, the global market, in the first place, with two strong centers, accessible centers for us, let's say, Europe and North America.
Speaker Change: And we invest in sustainable, clean energy technology companies.
Michele Mollenari: The market for commercial electric vehicles, and this does not only include electric buses for urban transportation, but everything: trucks, off highway trucks, commercial vehicles, construction vehicles, etc. This is a very fast growing market segment. According to Roland Berger research, you see here some figures where the estimated market in 23 was about 11 billion US dollars and is expected to grow until 2026 to 34 billion dollars. This is a fast, very fast growing market, and we want to be part of it, and we are part of it. You will see that later on.
Michele Molinari: The market for commercial electric vehicles, and this does not only include electric buses for urban transportation but everything, trucks, off-highway trucks, commercial vehicles, construction vehicles, etc. This is a very fast growing market segment. According to Roland Berger's research, you see here some figures where the estimated market in 23 was about 11 billion US dollars and is expected to grow until 2026 to $34 billion. This is a fast, very fast growing market, and we want to be part of it, and we are. You will see that later on.
Speaker Change: trucks, off-highway trucks, commercial vehicles, construction vehicles, etc. This is a very fast
Speaker Change: growing market segment.
Speaker Change: and is expected to grow until 2026 to 34 billion dollars.
Speaker Change: This is a fast, very fast growing market, and we want to be part of it, and we are part of it. You will see that later on.
Michele Mollenari: Another fast growing business is the high power charging business for electric buses to recharge batteries. We speak of battery electric buses and vehicles for urban transportation for commercial use, etc. which is also in a very strong growth, as you see here what Roland Berger estimates from 1.4 to 2.8 billion dollars. This is going fast. Here the key point is to be there in the key markets and to have a strong foothold. The other more older market is, of course, the rail vehicle market, which is depending on where, on which geography, more electric driven or diesel driven. But the urban rail vehicle market is usually electric.
Michele Molinari: Another fast-growing business is the high-power charging business for electric buses to recharge batteries. We speak of battery-electric buses and vehicles for urban transportation, for commercial use, etc., which is also at the very forefront of very strong growth. As you see here, what Roland Berger estimates from 1.4 to 2.8 billion dollars, and this is growing fast.
Speaker Change: Another fast-growing business is the high-power charging
Speaker Change: Business for electric buses to recharge batteries. We speak of battery electric buses and vehicles for urban transportation, for commercial use, et cetera.
Speaker Change: which is also at the...
Speaker Change: at in a very strong growth. As you see here what Roland Berger estimates from 1.4 to 2.8 billion dollars.
Michele Molinari: Here the key point is to be there in the key markets and to have a strong footprint. The other more older market is, of course, the rail Vehicle market, which is, depending on where and which geography, more electric-driven or more diesel-driven, but the urban rail vehicle market is usually electric. This, in the same time frame from 23 to 2026, growing from $33 billion to $36 billion.
Speaker Change: And this is growing fast. Here the key point is to be there in the key markets and to have a strong foothold.
Speaker Change: The other more older market is of course the rail vehicle market, which is
Speaker Change: depending on where and which geography more electric-driven or more diesel-driven, but the urban rail vehicle market is usually electric.
Michele Mollenari: This is in the same time frame from 23 to 2026, growing from 33 billion to 36 billion dollars. And we are present, and you will see now shortly how we are present in these almost more than 70 billion global market.
Speaker Change: This in the same timeframe from 2023 to 2026, growing from $33 billion to $36 billion.
Michele Molinari: And we are present, and you will see shortly how we are present in this, almost more than $70 billion market. As mentioned before, Haramba acquired Kipe Electric in February 2014. And the rationale for doing this is... Simple and clear.
Speaker Change: dollars.
Speaker Change: almost more than 70 billion market global market.
Michele Mollenari: As mentioned before, Heramba acquired Key Pay Electric in February 24, and the rationale for doing this is simple and clear. Keep Electric is a renowned global leader in the electrification of rail and road transportation. And since 2022, also in the high power charging solutions business and has a history of more than 100 years. This is a strong legacy, a strong base on which we can build on. Keep is a specialist in system design, system integration, manufacturing and implementation of power electronics, power drives, vehicle control, hard and software. And Keep is not only designing it in house, but also producing it in house here in Düsseldorf, Germany.
Speaker Change: As mentioned before, Haramba acquired Kipe Electric in February 2024 and the rationale for doing this is
Michele Molinari: TPElectric is a renowned global leader in the electrification of rail and road transportation and, since 2022, also in the high-power charging solutions business. TPElectric has a history of more than 100 years. This is a strong legacy, a strong base on which we can build on.
Speaker Change: Keep Electric is a renowned global leader in the electrification of rail and road transportation and since 2022 also in the high power charging sector.
Speaker Change: solutions business.
Speaker Change: has a history of more than 100 years.
Speaker Change: This is a strong legacy, a strong base.
Michele Molinari: Kipe is a specialist in system design, system integration, manufacturing, and implementation of power electronics, power drives, vehicle control, hard and soft. And Tipe is not only designing it in-house but also producing it in-house here in Dusseldorf, Germany. So this knowledge is in-house.
Speaker Change: system integration, manufacturing and implementation of power electronics, power drives, vehicle control, hard and software.
Speaker Change: And Tipe is not only designing it in-house, but also producing it in-house here in Düsseldorf, Germany.
Michele Mollenari: So this knowledge is in house and I think this is a very strong point and which makes keep a shine out in this market. Keep also is very strong on software has always been and has always been pushing in full-fledged solutions for the customers and to end solutions in everything for the vehicles, rail, buses, and also with charging stations. And the very important smart fleet management solution is being enhanced with AI-based features, specialized to optimize battery life for the operators, which see new challenges with the electric battery electric vehicles. This all together is a very good proven business, and this shows that Harampa is not a startup but a company together with Kipe, which has a long track record, real customers, and real revenues.
Speaker Change: So, this knowledge is in-house, and I think this is a very strong point, which makes Kipe shine out in this market.
Michele Molinari: And I think this is a very strong point which makes Kipe shine out in this market. Kipe is also very strong on software, and has always been, and will always be pushing, for full-fledged solutions for customers, end-to-end solutions, for everything for the vehicles, rail, buses, and also with the charging stations. And the very important smart fleet management solution is being enhanced with AI-based features, specialized to optimize battery life for the operators, who see new challenges with the electric, battery-electric vehicle. This all together is very good.
Speaker Change: Kipe also is very strong on software, has always been and has always been pushing.
Speaker Change: in full-fledged solutions for the customers, end-to-end solutions.
Speaker Change: in everything for the vehicles, rail, buses and also with charging stations.
Speaker Change: for the operators, which see new challenges with the electric
Speaker Change: battery electric vehicles.
Speaker Change: This all together is a very good
Michele Molinari: Proven, Business. And this shows that Haramba is not a startup, but, uh, a company together with Kipe, which has a long track record, real customers, and real revenue. On the next slide.
Speaker Change: proven
Speaker Change: business.
Speaker Change: And this shows that Haramba is not a startup, but...
Speaker Change: a company together with Kipe which has a long track record, real customers and real revenues.
Michele Mollenari: On the next slide, you see the key figures business highlights of Kipe, more than 500 employees, more than 500, 5,000, sorry, 5,000 globally installed. Vehicles. As I said before, more than a hundred years old, found at 1906 by Mr. Kippe himself, with the global presence today for sales and after sale support. And the tool key features today, as I said before, is the high power charging business and innovations keep as introduced, just started in 22 in Paris, Il de France, which is Paris, with very interesting leading-edge solutions for the charging of battery electric buses.
Speaker Change: On the next slide
Michele Molinari: You see... The key figures, business highlights of Keepe, more than 500 employees, more than 5,000 globally installed vehicles. As I said before, more than a hundred years old, founded in 1906 by Mr. Kippe himself, with a global presence today for sales and after-sales support.
Speaker Change: You see the key figures, business highlights of Kipe, more than 500 employees.
Speaker Change: More than 5,000 globally installed.
Speaker Change: Vehicles
Speaker Change: As I said before, more than a hundred years old, founded nineteen...
Speaker Change: 06 by Mr. Kipe himself
Michele Molinari: And two key features today, as I said before, are the high-power charging business, and innovations keep us introduced, just started on 22 in Paris, Ile-de-France, which is Paris, with a very interesting leading-edge solution for the charging of battery electric buses. And the other point is, which is very important in today's industry, everything that has to do with control, and controls in the mobility industry is cyber security. Keeper has updated its complete product line, in the vehicle control line for buses and rail vehicles, and new product features with regard to cyber security have been implemented and rolled out, and successfully rolled out, I must say. And, as you see here, the standard, ISO 26262. At the same time, it's compliant with the new European Directive on Cyber Security.
Speaker Change: And two key features today, as I said before, is the high power charging business and innovations keep as introduced.
Speaker Change: Just started in 22, in Paris, Ile-de-France, which is Paris, with a very interesting
Speaker Change: leading-edge solutions for the charging of battery electric buses.
Michele Mollenari: And another point is which is very important in today's industry: everything that has to do with control, the controls in the mobility industry, is cybersecurity. Kippe has updated its complete product line in the vehicle control line for buses and rail vehicles. And new product features with regard to cyber security have been implemented and rolled out, and successfully rolled out, I must say. And here you see the standard, the ISO 26262. At the same time, it's compliant with the new European Directive on cyber security. The three business segments, Kippe is in, as already said a little bit, I go more a little bit into the details are the bus electric vehicle systems which represent nowadays or represented in 23, about 7% of the order intake.
Speaker Change: updated its complete product line.
Speaker Change: line for buses and rail vehicles, and new product features with regard to cyber security have been
Speaker Change: implemented and rolled out.
Michele Molinari: The three business segments Kipe is in, as I have already said a little bit, and I will go more into the details a little bit later, are the bus electric vehicle systems which represent, nowadays, or are represented in 23 about 7% of the order intake. The goal is to have this grow fast and steadily for the future. Second, the business segment is rail Vehicle Systems, which represented 58% of the order intake in 2023, and the life cycle support, modernization, and other kinds of business and revenues, which represented 35% of the order intake in 2023. For the sake of time, I just pick out a few key points here of what is key and special with Tipe.
Speaker Change: The three business segments
Kipe: Kipe is in. As already said a little bit, I go more a little bit into the details.
Kipe: are the bus electric vehicle systems, which represent nowadays, or represented in 23, about 7%...
Michele Mollenari: The goal is to have this grow fast and steadily for the future. The second business segment is rail vehicle systems, which represented in 2023, 58% of the order intake, and the life cycle to port, modernization and other kinds of business and revenues, which represented 35% of the order intake in 2023.
Kipe: of the order intake. The goal is to have this grow fast and steadily for the future.
Kipe: The second
Kipe: Business segment is rail vehicle systems, which represented in 2023 58% of the order intake.
Kipe: and the life cycle support, modernization, and other kinds of business and revenues.
Kipe: which represented 35% of the order intake in 2023.
Michele Mollenari: For the sake of time, I just pick out a few key points here of what is key and special with Kippe. I already spoke about high power charging systems, but what Kippe is known and famous for, and what customers like OEMs, public operators, and others appreciate, is that Kippe designs and delivers standardized or tailor-made power electronics solutions. Electric drive solutions and components and vehicle control systems for buses, trams, trains, locomotives. The customers can decide if they want to buy the components and do it themselves or if Keep acts as a system integrator. And not only delivers the components, but also does the full system design, the software, the implementation into the vehicle, commissioning, and after sale support.
Speaker Change: For the sake of time, I just pick out a few key points here of what is key and special with Kipe. I already spoke about high power charging systems.
Michele Molinari: I already spoke about high-power charging systems. But what Kippe is known and famous for, and what customers, like OEM, public operators, and others, appreciate, is that TIPE designs and delivers standardized or tailor-made power electronics solutions, electric drive solutions and components, and vehicle control systems. The customers can decide if they want to buy the components and do it themselves or if Kipe acts as a system integrator and not only delivers the components but also does the full system design, the software, the implementation into the vehicle, commissioning, and after sales.
Speaker Change: is that TPE designs and delivers standardized or tailor-made power electronics solutions.
Speaker Change: electric drive solutions and components and vehicle control systems for buses, trams, trains, locomotives.
Speaker Change: The customers can decide if they want to buy the components and do it themselves or if Kipe acts as a system integrator.
Speaker Change: And not only delivers the components, but also does the full system design, the software, the implementation into the vehicle.
Speaker Change: commissioning and after-sales support.
Michele Mollenari: This has been a very successful part of the business for Tipe. And the idea is to expand and make it more stronger by widening the customer base, also more on the product side, but we will speak later on about this. Another important part is the life cycle support for the customers; other people call it service. We call it life cycle support because the vehicles keep a supporting have a life cycle, a lifespan of 30 plus years. So this gives the opportunity to keep it for a very long exposure to the client, to keep track of their own products, and to be there for when the customer wants to upgrade the systems or new features shall be implemented.
Michele Molinari: This has been a very successful part of the business for Tipe, and the idea is to expand and make it stronger by widening the customer base and also more on the product side, but we will speak later about that. Another important part is the life cycle support for the customers. Other people call it service; we call it life cycle support because the vehicles keep a supporting have a life cycle, a lifespan of 30 plus years.
Speaker Change: This has been a very successful part of the business for Tipe and the idea is to expand
Speaker Change: and make it more stronger by widening the customer base, also more on the product side, but we will speak later on about this.
Speaker Change: Another important part is the life cycle support for the customers.
Speaker Change: other people call it service, we call it life-cycle support because the vehicles
Kipe: Keeppay supporting have a life cycle, a lifespan of 30 plus years, so this gives the opportunity to keeppay for a very long exposure to the client, to keep track of their own products.
Michele Molinari: So this gives them the opportunity to keep it for a very long time exposure to the client, to keep track of their own product, and to be there for when the customer wants to upgrade, systems, or new features are implemented. On the next slide, you see the different solutions which are provided today and the future market solutions which are anticipated. On the left-hand side, you see the value chain of Kipe from design, integration, hardware, and software down to life cycle support and fleet management.
Kipe: and to be there for when the customer wants to upgrade.
Kipe: the systems or new features shall be implemented.
Michele Mollenari: On the next slide, you see the different solutions which are provided today, and the future market solutions which are anticipated. On the left-hand side, you see the value chain of Tipe from design, integration, hardware and software down to life cycle support and fleet management. We all see that the future business will be over the air. We are not flying, but this means to access on a two-way stream vehicles, buses, railway vehicles, etc., not only to download data, but also to upload data and programs in different, and also the business as service solutions. We see there more to come.
Kipe: On the next slide, you see the different solutions which are provided today and the
Kipe: future market solutions which are anticipated. On the left hand side you see the value chain of Kipe, from design, integration, hardware and software, down to life cycle support and fleet management.
Michele Molinari: We all see that the future of business will be over the air. We are not flying, but this means accessing, on a two-way stream, vehicles, buses, railway vehicles, et cetera, not only to download data but also to upload data and programs and different, and also the business, as service solutions. We see more to come. In the commercial vehicles you see transit, buses, trolleybuses, etc.; the future or already starting markets for commercial mining construction vehicles, such as electric vehicles, coaches, school buses, and trucks, where TPE has a very good and proven solution.
Kipe: We all see that the future business will be over the air.
Speaker Change: We are not flying, but this means to access.
Speaker Change: on a two-way stream, vehicles, buses, railway vehicles, etc.
Speaker Change: not only to download data but also to upload data and programs and difference.
Speaker Change: and also the business...
Speaker Change: as service solutions. We see there more to come.
Michele Mollenari: In the commercial vehicles, you see transit, buses, trolley buses, etc., and the future are already starting markets for commercial mining, construction, vehicles as of electric vehicles, coaches, school buses and trucks, where Tipe has very good and proven solutions. Then we have the charging infrastructure, either for the vehicle or route. From small power, let's say small power ratings to ultra high power ratings, Keep Pace is one of the leading in this field with already rolling out the 800 kilowatt solutions and, of course, Keep Pace is working on the megawatt charging solution as well. Last but not least, we have the rail vehicles where everything from light rail vehicles to metro electric multiple units and locomotives are being served, and Keep Pace products are being installed all over the world in a wide variety of operators. As I said before, Keep Pace has a real and long track record. This is why you see the countries where Keep is all in. Of course, the headquarters in Germany, Düsseldorf, where we are sitting right now, with the subsidiaries in Austria, Switzerland, and Italy, as well as in North America with Alpharetta in Georgia and Vancouver in Canada. This is a very strong base for the future growth we are with this in the key markets for the future business and to be there to serve the customers. So this was the rationale why Heramba invested in Keep and to show you the base of this company and why we decided to take it on and to lead it into a new future and the expansion on a global level. Next will be, of course, the American expansion in North America where you will see that already good progress has been made. I would now turn over to Peter for the tea to guide us through the 2023 highlights. Hello everybody, just giving a broad overview about the 23 financial highlights. Keep in mind that 22 and 23 Keep it was a part of no branches still and get outsourced on 24 and get independent. The revenue what you see where the significant grows in 23 you see it on the right side, but approximately 30% the revenue share is still dominating in Germany. This is the house market of Keepers roughly close of 50%.
Speaker Change: In the commercial vehicles you see transit, buses, trolleybuses, etc.
Speaker Change: the future or already starting markets for commercial mining construction vehicles.
Speaker Change: as of electric vehicles.
Speaker Change: coaches, school buses, and trucks.
Speaker Change: where TPE has
Speaker Change: very good and proven solutions.
Michele Molinari: Then we have the charging infrastructure, either for the depot or en route, from a small, Um.., power ratings to ultra-high power ratings. Kipe is one of the leaders in this field, with already rolling out 800 kilowatt solutions. And of course, keep working on the megawatt charging solution as well. Last but not least, we have the rail Vehicles, where everything from light rail vehicles to metro, electric multiple units, and locomotives is being surveyed, and Kipe products are being installed all over the world in a wide variety of countries. Operator. As I said before, Kipe has a real and long track record. This is why.
Speaker Change: Then we have the charging infrastructure either for the depot or enroute.
Speaker Change: from a small
Speaker Change: Power, let's say, small power ratings to ultra-high power ratings. Keepay is one of the leading in this field with already rolling out 800 kilowatt solutions.
Speaker Change: And, of course, Keepay is working on the megawatt charging solution as well.
Speaker Change: Last but not least, we have the rail vehicles.
Speaker Change: where everything from light rail vehicles to metro...
Speaker Change: electric multiple units and locomotives.
Speaker Change: are being...
Speaker Change: surfed and
Speaker Change: TPE products are being installed all over the world in a wide variety of operators.
Speaker Change: As I said before, Kipe has a real and long track record. This is why...
Michele Molinari: You see the countries where T-Pain is all in. Of course, the headquarters are in Germany, Düsseldorf, where we are sitting right now, with subsidiaries in Austria, Switzerland, and Italy, as well as in North America with Alpharetta in Georgia and Vancouver in Canada. This is a very strong base for future growth; we are with this in the key markets for future business and to be there to serve the customer. So this, uh, was... the rationale why Heramba invested in Kipe, to show you the foundations of this company, why we decided to take it on and to lead it into a new future and expansion on a global level.
Speaker Change: You see the countries where Kipe is all in.
Speaker Change: Of course, the headquarter is in Germany, Düsseldorf, where we are sitting right now, with subsidiaries in Austria, Switzerland and Italy.
Speaker Change: as well as in North America with
Speaker Change: Alpharetta in Georgia and Vancouver in Canada.
Speaker Change: This is a very strong base for the future growth, we are with this in the key markets.
Speaker Change: for the future business and to be there to serve the customers.
Speaker Change: So this was the rationale why Heramba invested in Kipe.
Speaker Change: to show you the base of this company.
Speaker Change: why we decided to take it on and to lead it into a new future and expansion on a global level.
Michele Molinari: Next will be, of course, America, the expansion in North America, where you will see that good progress has already been made. I would now turn over to Peter, as he guides us through the 2023 highlights.
Speaker Change: Next will be of course the American, the expansion in North America, where you will see that already good progress has been made.
Speaker Change: I would now turn over to Peter that he guides us through the 2023 highlights.
Peter Mümmler: Hello everybody, I'm just giving a broad overview of the 23 financial highlights. Keep in mind that 22 and 23 were a part of Knoe-Bremse's bill and will get outsourced on 24 and become independent.
Peter: Hello everybody. I'm just giving a broad overview about the 23 financial highlights. Keep in mind that 22 and 23 was a part of Knoll-Bremses bill and get outsourced on 24 and get independent.
Peter Mümmler: The revenue, what you see is the significant growth in 2023, you see it on the right side, but approximately 30 percent. The revenue share is still dominating in Germany, this is the house market for Keeper, it's roughly close to... 50% in Europe. These are the countries around Germany, I would say, with 39 percent, but we have even a share in the U.S. of 12 percent of the revenue today.
Peter: The revenue, what you see with a significant growth in 2023, you see it on the right side but approximately 30%.
Peter: The revenue share is still dominating in Germany. This is the house market of Keeper, roughly close to...
Peter Mimler: And Europe, this is the country around Germany, I would say, with 39%, but we have Ema chair in the US of 12% of the revenue today. I think the most important information about the growth is where we have the growth. And there you can see one of the strategies we are growing in North America by close to 60%. And this shows and mirrors the activities we are pushing right now to really get a key player in the American market. In the North American market, they're gaining the growth in one of our focus markets, too, because we see a significant potential there.
Peter: and Europe . This is the countries around Germany, I would say, with 39%, but we have even a share in the U.S. of 12%.
Peter: of the revenue today.
Peter Mümmler: I think the most important information about growth is where we have growth. And there you can see one of the strategies. We are growing in North America by close to 60 percent, and this shows and mirrors the activities we are pushing right now to really get a key player in the American market, in the North American market. We are gaining growth and is one of our focus markets, too, because we see significant potential there.
Peter: I think the most important information about the growth is where we have the growth. And there you can see one of the strategies we are growing in North America by close to 60%.
Peter: shows and mirrors the activities we are pushing right now to really get a key player in the American market, in the North American market, that we're gaining the growth and it's one of our focus markets too because we see a significant potential there. But nevertheless, we grow in Europe about 25%.
Peter Mümmler: But nevertheless, we grow in Europe by about 25 percent. When you go down to the net profit for 22... We had a significant loss in 2022. This was really a one-time impact on a project, a double-digit million impact. What was it?
Peter Mimler: But nevertheless, we grow in Europe about 25%.
Peter Mimler: When you go down to the net profit for 22, we had a significant loss in 22. This was really a one-time impact in a project. Double-digit million impact. What was it? It was a reassessment in the project, and we needed to refurbish more or less a complete fleet. And this was a significant impact. But it was a one-time impact. You cannot push it to all of us.
Peter: When you go down to the Net Profit for 2022...
Peter: We had a significant loss in 22. This was really a one-time impact.
Peter: in a project double-digit million impact. What was it? It was a reassessment in the project and we needed to refurbish more or less a complete fleet.
Peter Mümmler: It was a reassessment of the project, and we needed to refurbish more or less the entire fleet, and this was a significant impact. But it was a one-time deal; you cannot push it on all of us. We have pretty good risk management in our projects, and when you come to the end of a project, and we had a couple of good projects where we mitigated risk, and therefore we had a positive impact, and we can turn risk business to more likely be in a positive range in 2023.
Peter: and this was a significant impact, but it was a one-time impact.
Peter Mimler: 23. We have a pretty good risk management in our project. And when you come to the end of projects, and we had a couple of good projects, where we mitigated risk. And therefore, we had a positive impact and we can turn risk business to more likely foreigners in a positive range in 23.
Speaker Change: you cannot push it to all of us. 23, we have a pretty good risk management in our project. And when you come to the end of project, and we had a couple of good projects where we mitigated risk.
Speaker Change: and therefore we had positive impact and we can turn risk business to more likely fall in a positive range in 2023. What was a significant improvement.
Peter Mimler: What was a significant improvement? One of the assets of Kipei must say is really the order backlog. When you see on the order backlog on the right side, we have an order backlog of 621 million. What is reaching out to 2032? This is more likely when you have a long-term main modernization project or service project contract. This is going roughly over 10 years sometimes. Therefore, you have this long-term information here for the main main core business, what Michele mentioned already, that the knowledge of Kipei is the system indicator business. And this is dominating in the order backlog today.
Peter Mümmler: What was a significant improvement. One of the assets of Keep Amok Stay is really the order backlog. When you see the order backlog on the right side, we have an order backlog of $621 million. What is reaching out to 2032 is more likely when you have long-term modernization projects or service project contracts. It's going roughly over 10 years sometimes.
Speaker Change: One of the assets of Kipe I must say is really the auto backlog and when you see on the auto backlog on the right side, we have an auto backlog of $621 million.
Speaker Change: what is reaching out to 20...
Speaker Change: 32, this is.
Speaker Change: more likely when you have long-term modernization project or service project contract.
Speaker Change: This is going roughly over 10 years sometimes.
Peter Mümmler: Therefore, you have this long-term. For the main core business, as Michele mentioned already, the knowledge of Keep Amok Stay is the system integrator business, and this dominates the order backlog today. It goes up to 80 percent, and the other businesses are the maintenance business, which is 20 percent of the order backlog. We live!
Speaker Change: Therefore, you have this long-term...
Speaker Change: information here for the
Speaker Change: The main core business, what Michele mentioned already, the knowledge of Keepa is the system integrator business.
Peter Mimler: It goes up to 80%, and the other businesses are the maintenance is 20% of the order backlog.
Michele Molinari: And this is dominating in the auto backlog today.
Speaker Change: goes up to 80% and the other businesses are the maintenance is 20% of the order backlist.
Peter Mimler: We left Klobremser, which you see down with no debts on the balance sheet and a cash equivalent of 35 million per 4 million. There are some positive impacts in there. What's operational? What's mainly driven by leaving a cash pool? They are impact in there, but pretty positive.
Speaker Change: We left...
Knoop-Ramsay: Knopp-Ramsay, which you see down with no depth on the balance sheet.
Speaker Change: and a cash equivalent of $35 million, $34 million. There are some positive impacts in there. What's not operational, what's mainly driven by leaving a cash pool, there are impacts in there.
Peter Mümmler: and mainly driven by leaving a cash pool. When we go to the next page, where we're going to look at the market, the Outlook 24. We had market challenges, and this year we had significant pressure on our revenue and profitability. The one, the actual situation, one I mentioned already, we have a tailwind in the North American market, new project. This is still a market where we see growth and really increasing the share from 12% today to a much bigger share in keeping revenue.
Peter Mimler: When we go to the next page where we are going for the market, the outlook 24, we had market challenges. This year we have significant pressure on our revenue and profitability. The one, the actual situation, one, I mentioned is already with a tailwind in North America market, new projects. This is still a market where we see the growing and really increasing the share from 12% today to much bigger share in the Kipei revenue. But in the other side, we have Europe and the OEMs, what our mainly partners are in the system indicator business, they have critical performance areas.
Speaker Change: but pretty positive.
Speaker Change: When we go to the next page where we're going for the market, the Outlook 24.
Speaker Change: We had market challenges what what
Speaker Change: This year we have significant pressure on our revenue and profitability.
Speaker Change: The one, the actual iteration one, I mentioned this already.
Speaker Change: We have a tailwind in North America market, new project.
Speaker Change: This is still a market where we see it growing.
Speaker Change: and really increasing the share from 12% today to a much bigger share in the Kipe revenue.
Peter Mümmler: But on the other side, we have Europe, the OEMs, what our main partners are in the system integrated business, they have critical performance areas, and this impacts our revenues by delaying projects, by failing on projects in the OEM, and we are somewhere with them together in the boat. And I think as the whole industry still faces global supply chain problems, it's not stable, delays in deliveries, need to manage firefighting, the costs are still increasing, it's still a huge pressure on our business due to the long-term projects we have in there. And then we have price pressure on the bus and rail market; this has an impact on cross, actions to improve profitability.
Speaker Change: This is still working. But on the other side, we have Europe , the OEMs, what our mainly partners are in the system integrated business.
Speaker Change: They are critical performance areas and this impacts our revenues by delaying projects, by failing on projects in the OEM and we are somewhere with them together in the boat.
Peter Mimler: And this impacts our revenues by delaying projects, by failing on projects in the OEM, and we are somewhere with them together in the boat. and I think as the whole industry still faces global supply chain, it's not stable. The delay of deliveries needs to manage the firefighting. The costs are still increasing. It's still a huge pressure on our business due to the long term projects we have in there.
Speaker Change: And I think as the whole industry still faces global supply chain is not stable.
Speaker Change: delay of deliveries, need to manage the firefighting, the costs are still increasing. It's still a huge pressure on our business.
Speaker Change: due to the long-term projects we have in there. And then we have a price pressure on the bus and rail market. This has an impact of cross-margins.
Peter Mimler: And then actions to improve profitability. I mentioned this. There's one really topic we are pushing by very strongly. This is Push Components service and modernization business. Why are we doing this? This is, first of all, a higher market business, and we're using this significant project risk in our business. What gives us certain volatility in profitability in the market. And we want to really go to a different share. I mentioned the backlog share 80% system in a greater business. The target must be that we are around at the range of 50 to 60% in our revenues and system in a greater business.
Peter Mümmler: I mean, I mentioned this there's one really topic we are pushing right very strongly. This is push components, service, and modernization business. Why are we doing this? This is, first of all, a higher margin business, and we will be using this significant project risk in our business, which gives us certain volatility in profitability in the market. And we want to really go to a different share.
Speaker Change: Actions to improve profitability. I mean I mentioned this there's a one really topic we are pushing right very strongly this is push component service and modernization business. Why are we doing this is this is first of all a higher margin business.
Speaker Change: we will be reducing this significant project risk.
Speaker Change: in our business, what gives us certain volatility and profitability in the market and we want to really go to a different share. I mentioned the backlog share, 80% system integrated business.
Peter Mümmler: I mentioned the backlog share, 80% of system integrator business. The target must be that we are around in the range of 50 to 60% in our revenues and system integrator business. It's still our core business, and the rest will be really divided by component service and monetization business to get stable. Diversity from the customer base with new OEMs. You have more OEMs that we share the impact with, very important. We're working on new OEMs and new partnerships for the whole strategy supply chain.
Speaker Change: The target must be that we are around in the range of 50% to 60% in our revenues in system integrator business. It's still our core business and the rest will be really divided by component service and monetization business to get stable.
Peter Mimler: It's still our core business, and the rest will be really divided by component service and modernization business to get stable. Diversity from the customer base with new OEMs. You have more OEMs that we share the impact.
Speaker Change: Diversity from the customer base with new OEMs. You have more OEMs that we share the impact. Very important. We're working on new OEMs and new partnerships.
Peter Mimler: Very important. We're working on new OEMs and new partnerships for the whole strategy supply chain. Secure second sources in the supply chain to really have a low cost and a secure delivery area to reduce risk. And the one thing is what we initiated at the cost down program to improve competitiveness and profitability. We need to reduce costs with different measures, levers, low cost countries, reducing admins and supply chain as GNA costs. This is initiated, and we're working right in our heart on this program.
Peter Mümmler: Secure second sources in the supply chain to really have a low cost and a secure delivery area to reduce risk. And one thing is what we initiated as the cost-down program to improve competitiveness and profitability. We need to reduce costs with different measures, levers, and low-cost countries. For example, reducing admin and supply chain SG&A costs. This is initiated, and we're working hard on this program right now. The outlook, as I mentioned, North America grows, wins a couple of projects in the pipeline.
Speaker Change: for the whole strategy supply chain, secure second sources in the supply chain.
Speaker Change: to really have a low cost and a secure delivery area to reduce risk. And the one thing is what we initiated as the cost down program to improve competitiveness and profitability. We need to reduce costs.
Speaker Change: with different measures, levers, low-cost countries.
Speaker Change: Reducing admin and supply chain SGA costs. This is initiated and we're working right now on this program.
Peter Mimler: The outlook, what I mentioned, North America, grow, win another, win a couple of projects in the pipeline. Strong push, components, what I mentioned is reducing the risk profile. Getting more and more independent, a bright share of the business. This is what I mentioned with reducing the system in the greater volume down to 50 to 60 percent. And yeah, improving profitability with cost out and then a cash position about this business.
Peter Mümmler: Strong push components, what I mentioned, are reducing the risk profile. I mean, getting more and more independent, a bright share of the business. This is what I mentioned with reducing the system integrator volume down to 50 to 60%, improving profitability with cost-out, and the net cash position on this. This is the outlook.
Speaker Change: The Outlook
Speaker Change: What I mentioned North America grow when when another win a couple of projects in the in the pipeline
Speaker Change: Strong push components, what I mentioned is reducing the risk profile. Getting more and more independent, a bright share of the business. This is what I mentioned with reducing the system integrator volume down to 50-60%.
Speaker Change: And, yeah, improving profitability with cost out and the net cash position about this business.
Peter Mimler: This is the outlook.
Michele Mollenari: Thank you very much, Peter. For guiding us through these slides.
Speaker Change: This is the outlook.
Speaker Change: Thank you very much, Peter.
Michele Molinari: Thank you very much, Peter, for guiding us through these slides. Next, I will hand over to Alex, who will introduce us to the key. Key wins, in 2023 and 2024, please. Yeah, hello everybody.
Peter: for
Peter: guiding us through this slides. Next, I will hand over to Alex.
Alex Ketterl: Next, I will hand over to Alex. We will introduce us to the key wins in 2023 and 24th.
Alex Ketterl: who will introduce us to the key.
Alex Ketterl: key wins in 2023 and 2024. Please. Yeah, hello everybody. We want to highlight some major project wins for 2023. This slide should give you a better overview and flavor of our business. So first...
Alex Ketterl: Please. Yeah, hello everybody. I want to highlight some major projects. The wins for 2023, so this slide should give you a better overview and flavor of our business.
Alexander Ketter: I want to highlight some major projects for 2023. So this slide should give you a better overview and flavor of our business. I want to highlight the smart hybrid for slow.
Alex Ketterl: I want to highlight a smart hybrid for slow wind, which is a shunting look, and here we equip the shunting look with a traction system. The speciality is with the battery container to serve zero emission operations for the last mile. So this was a significant milestone for Keeper and the customer in our component business as well as towards our innovation competence into the market.
Alexander Ketter: Wind, which is a shunting loco, and here we equip the shunting loco with a traction system and the specialties With a battery container to serve zero emission operations for the last mile, so this was a significant milestone for Keeper and the customer in our component business as well as for our innovation competence in the market. The second highlight was the first charging stations. We have one in 2023 for the city of St. Gallen in Switzerland.
Speaker Change: which is a shunting loco and here we equip the shunting loco with a traction system and the speciality is with a battery container to serve zero-emission operations for the last mile.
Speaker Change: So this was a significant milestone for Keeper and the customer in our component business as well as towards our innovation competence into the market.
Alex Ketterl: Second highlight was the first charging stations we have won in 2023 for the city of San Gala in Switzerland. So you see we are international business and here the customer trust into the new technology and innovation of keeper and here we are using existing power supply of the public grid and the catenary. And so this helps the customer to avoid and to limit investments for charging stations and infrastructure.
Alexander Ketter: So you see, we are an international business, and here the customer trusts the new technology and innovation of Keeper, and here we are using the existing power supply of the public grid and the catenary, and so this helps the customer to avoid and limit investment, free of charge. And the third very important highlight is what we won last year... the whole drivetrain which contains the traction container, the motor, and the engine, the battery system as well as the traction control and energy control.
Speaker Change: And here we are using existing power supply of the public grid and the catenary. And so this helps the customer to avoid and to limit investments for charging stations and infrastructure.
Alex Ketterl: And the third very important highlight is what we have won last year: the traction platform for BMC. BMC it's a Turkish bus OEM, a British motor company and here keeper was awarded to equip the bus with the traction system or we also call it the whole drive frame which contains the traction, a container, the motor and the battery system as well as the traction control and energy control. So hopefully we will finalize the homologation this year, and we will start series delivery next year in 2025.
Speaker Change: And the third very important highlight is what we have won last year is the traction platform for BMC, BMC it's a Turkish bus OEM, British motor company and here Kipe was awarded to equip.
Speaker Change: the whole drivetrain which contains the traction container, the motor and the battery system as well as the traction control and energy control.
Alexander Ketter: So hopefully, we will finalize the homologation this year, and we will start serial delivery next year in 2020. So in 24, we have similar major wins, and here I want to start with the really top one.
Speaker Change: So, hopefully we will finalize the homologation this year and we will start serial delivery next year in 2025.
Alex Ketterl: So in 2024 we have similar major wins and here want to start with the really top one: it's the modernization project for CTA in Chicago. Here we equip nearly 400 coaches for Metro with a new traction and auxiliary power supply. This shows the competence of keeper extending the life of a vehicle and also what Peters said, so we are in the core business of life cycle support and life cycle management. And the next one is again BMC. They trusted our technology, and they were awarded to design and implement technology for their 18m bus. So it means for the British motor company, keeper is able to deliver the whole immobility equipment for their whole product offerings.
Speaker Change: So, in 2024, we have similar major wins and here I want to start with the really top one. It's the modernization project for CTA in Chicago. Here we will equip
Alexander Ketter: It's the modernization project for CTA in Chicago. Here we were equipped with nearly 400 coaches for the metro with the new traction and auxiliary power supply. This shows the competence of Keeper, extending the life of a vehicle, and also what Peter said.
Speaker Change: nearly 400 coaches for metro with the new traction and auxiliary power supply.
Speaker Change: This shows the competence of Keeper, extending the life of a vehicle and also what Peter said, so we are in the core business of life cycle support and life cycle management.
Alexander Ketter: So, we are in the core business of life cycle support and life cycle maintenance. And the next one is, again, BMC. They trust our technology, and we were awarded two contracts to design and implement technology for their 18 meter bus. So it means that for the British Motor Company, Keeper is able to deliver the whole e-mobility equipment for their whole product offering. The third one is a smaller project, but it could come very fast to a European railway.
Alex Ketterl: The third one is a smaller project, but it could come very fast to a European railway operators. It's ultra light vehicle drazy for the French market, so there's a huge market potential to equip very small railway vehicles with a traction equipment based on road technology, so easier, not so heavy, and therefore cheaper for railway solutions. And here keeper is in the business what you can see not only in new projects but the characteristic of our businesses also extends cope of existing projects getting more options after same so this will drive our profitability and also of course a lot of service and modernization business which drives our revenue.
Peter: The third one is a smaller project but it could come very fast to a European railway.
Alexander Ketter: Operators, it's an ultralight vehicle draysy for the French market. So there's a huge market potential to equip very small railway vehicles with traction equipment based on road technology, so it's easier, not so heavy, and therefore cheaper for railway solutions. And here Keeper is in the business, which you can see not only in new projects but the characteristic of our business also extends the scope of existing projects, getting more options of the
Peter: So there is a huge market potential.
Peter: to equip very small railway vehicles with traction equipment based on road technology. So easier, not so heavy, and therefore cheaper for railway solutions.
Speaker Change: And here Keepe is in the business what you can see not only in new projects but the characteristic of our business also extends scope of existing projects.
Alexander Ketter: So this will drive our profitability and also, of course, a lot of profit. Service and Modernization Business, which drives our revenue. So for the next slide, beyond the road, of course, what is not in our plan and what we anticipate to accelerate our growth and profitability. First of all, what we also mentioned is the new business opportunities in charging solutions with existing power supply infrastructure. So we use the public grid as well as the catenary.
Speaker Change: getting more options of the same so this will drive our profitability and also of course a lot of service and modernization business which drives our revenue.
Alex Ketterl: So for the next slide, beyond the road, of course, what is not in our plan and what we anticipate to accelerate our growth and profitability. First of all, what we also mentioned is that the new business opportunities in charging solutions with existing power supply infrastructure. So we use public grid as well as catenary, so that means we are using existing infrastructure, so that means finally the cost for setting up such charging stations will be lower compared to other solutions. Second is, of course, the North American eBus market will grow heavily. Yeah, there are not many OEMs, and so we want to support OEMs with our technology and also partner with new OEMs which will occur in the U.S.
Speaker Change: So for the next slide, beyond the road, of course, what is not in our plan and what we anticipate to accelerate our growth and profitability.
Speaker Change: First of all, what we also mentioned is the new business opportunities in charging solutions with existing power supply infrastructure. So we use public grid as well as catenary.
Alexander Ketter: So that means we are using existing infrastructure, so that means the cost for setting up such charging stations will be lower compared to other stations. And second, of course, the North American eBus market will grow heavily. There are not many OEMs, and so we want to support them, our technology, and also partner with new OEMs which will emerge in the U.S. market. The third one is to provide a one-stop-shop for e-mobility solutions in North America.
Speaker Change: So that means we are using existing infrastructure, so that means finally the cost for setting up such charging stations will be lower compared to other solutions.
Alex Ketterl: market. Third one is to provide a one-stop shop for immobility solutions in North America that means next to the bus and next to the immobility equipment you need, also charging solutions and service maintenance solutions.
Speaker Change: The third one is to provide a one-stop shop for e-mobility solutions in North America. That means next to the bus and next to the e-mobility equipment you need also charging solutions and service maintenance solutions.
Alexander Ketter: That means, next to the bus and next to the e-mobility equipment, you also need charging solutions and service maintenance. A fourth pillar of our growth strategy is, of course, software. It is very important to want to add additional functionalities to our smart fleet management tools and to use also AI and to serve better operations for keeper and also non-keeper fleets.
Alex Ketterl: A fourth pillar of our growth strategy is, of course, software. Yeah, it is very important. So we want to add additional functionalities in our smart fleet management tools and to use also AI and to serve better operation for keep and also non-keeper fleets. This could be important for us.
Speaker Change: A fourth pillar of our growth strategy is, of course, software. Yeah, it is very important to want to add additional functionalities in our smart fleet management tools and to use also AI and to serve.
Speaker Change: better operation for keeper and also non-keeper fleets. This could be important for us.
Alexander Ketter: This could be important for us. Finally, what is also a major trend and driver is hybridization for existing rail, diesel multiple units for rail, and also buses, so this could also be a major driver for Kiefer. Thank you, Alex. What I want to... Mentioned here, especially in number five on dehybridization, maybe you saw it in one of the pictures in the slide before, Kipe is also supplying electric drivetrains for hydrogen vehicles. So, we are covering all markets, not only the electric side, the battery side, but also the hydrogen market.
Alex Ketterl: Finally, what is also made to train and driver is the hybridization for existing rail; these are multiple units for rail and also pass. So this could be also a mentor rail for Keep.
Speaker Change: Finally what is also a major trend and driver is the hybridization for existing rail, diesel multiple units for rail and also bus. So this could be also a major driver for Keeper.
Michele Mollenari: Thank you, Alex. What I want to mention here, especially on number five on the hybridization, maybe you saw it on one of the pictures in the slide before, Keep is also supplying into hydrogen vehicles, the electric drivetrain. So we are covering all markets, not only the electric, the battery side but also the hydrogen market. Yeah. Very good.
Speaker Change: Thank you, Alex.
Speaker Change: Mentioned here, especially on number five on dehybridization, maybe you saw it on one of the pictures in the slide before, Kipe is also supplying into hydrogen vehicles.
Speaker Change: the electric electric drivetrain so we are we are covering all markets not only the electric the battery side but also the hydrogen market right exactly
Michele Molinari: Very good. And I think this is also very exciting and very good and will help us all to expand further into the market. With this, we have almost reached the end.
Michele Mollenari: And I think this is also very exciting and very good and will help us all to expand further into the markets.
Speaker Change: yeah very good and I think this is also very exciting and very good and will help us all to expand further into the markets
Michele Mollenari: With this, we have, we almost reached the end.
Speaker Change: With this we have...
Michele Molinari: I want to make you aware of the upcoming events where Heramba Electric and Kipe Electric will be present. First of all, it's the InnoTrends show in Berlin, the biggest. Globally, the biggest show for the railway market, from September 24 to 28. Kip has a long presence there, and since many, many years ago, And so we will be present with a big stand. Then, the next one in North America will be at the Uptown Conference in Anaheim, California, right the week after EnoTrans, from September 29 to October 2.
Michele Mollenari: I want to make you aware of the upcoming events where Haram by Electric and Keep Electric will be present. First of all, is the inner trends show in Berlin, the biggest globally, biggest show for the rail market from September 24 to 28. Keep as a long presence there since many, many years. And so we will be present with a big stand. Then the next in North America will be at the Opta conference in Anaheim, California, in right the week after the Inotrans from September 29 to October 2. And in November, we will be present in Toronto, Canada, at the CUTA exposition.
Speaker Change: We almost reached the end. I want to make you aware of the upcoming events where Heramba Electric and Kipe Electric will be present.
Speaker Change: First of all, it's the InnoTrans show in Berlin, the biggest...
Speaker Change: Globally biggest
Speaker Change: show for the railway market.
Speaker Change: from September 24 to 28.
Speaker Change: Keep has a long presence there and since many many years and so we will be present with the big stand.
Speaker Change: Then the next in North America will be at the Uptalk conference in Anaheim.
Speaker Change: California in right the week after the Eno-Trans in September from September 29 to October 2nd.
Michele Molinari: In the end of November, we'll be present in Toronto, Canada, at the Kuta Exposition and present there also for the very important Canadian market, where Kipe is also present with a known subsidiary. So in the next, in September, October, November, we have important shows, which give us the possibility to show our customers, existing and future customers, etc. What we are doing, and why they should buy it with T-Pair and Ramba. So far, we have reached almost the end of our slides and what we have prepared.
Speaker Change: And in November , we will be present in Toronto, Canada.
Michele Mollenari: And present there also on the for the very important Canadian market, where TPA is also present with the known subsidiary. So in the next in September, October, and November, we have important shows, which gives us the possibility to show our customers, existing and future customers, etc. what we are doing and why they should buy with TPA and Heramba.
Speaker Change: at the Kuta Exposition and present there also for the very important Canadian market, where Kipe is also present with the known subsidiary.
Speaker Change: So, in the next, in September , October , November , we have important shows, which gives us the possibility to show our customers, existing and future customers, etc., what we are doing.
Speaker Change: and why they should buy with Tipe and Ramba.
Michele Mollenari: So far, we have reached almost the end of our slides and what we have prepared.
Speaker Change: So far, we have reached almost the end of our slides and what we have prepared.
Operator: We are now open for a Q&A session, and we are happy to hear your questions. So that's, and we hope, of course, to answer them right away. Please, we would like to start.
Michele Molinari: We are now open for Q&A, and we are happy to hear your questions. And we hope, of course, to answer them right away. Please, who would like to start? Certainly. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone.
Speaker Change: We are now open for Q&A session.
Speaker Change: And we are happy to hear your questions.
Speaker Change: So that's and we hope of course to answer them right away. Please who would like to start?
Operator: Certainly, at this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that is star one to ask a question. One moment, please, while we pull for questions. As a reminder, if you would like to ask a question, please press star one.
Operator: Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: Certainly. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue.
Speaker Change: You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that is star 1 to ask a question. One moment please while we poll for questions.
Operator: Once again, that is star 1 to ask a question. One moment, please, while we poll for questions. It's got a name on it. As a reminder, if you would like to ask a question, please press star 1. We have reached the end of the question and answer session, and I will now turn the call over to Michele for her closing remarks.
Speaker Change: As a reminder, if you would like to ask a question, please press star 1.
Speaker Change: We have reached the end of the question and answer session, and I will now turn the call over to Michele for closing remarks.
Operator: We have reached the end of the question and answer session, and I will now turn a call over to Mattelay for closing work marks. Thank you very much.
Michele Molinari: My closing remark is: I hope we were able to show you what and where Heramba is doing, where Heramba is invested, and what we are going. Just to make it short.
Michele Mollenari: My closing remark is I hope we were able to show you what a Ramba is doing, where a Ramba is invested and what was not where we are going to. Just to make it short, I think we were able to show you that we are now a startup. We are a real company established with a strong customer base worldwide, especially in Europe, but also very much in the United States. And this drives our revenues, real revenues, and will drive further growth in this business. And we are very proud that every day, with our solutions, we impact already tomorrow.
Michele Molinari: Thank you very much. My closing remark is...
Michele Molinari: I hope we were able to...
Speaker Change: show you
Speaker Change: What?
Speaker Change: Rambha is doing, where Rambha is invested, and what...
Speaker Change: where we are going to.
Michele Molinari: I think we were able to show you that we are no startup. We are a real company, established with a strong customer base worldwide, especially in Europe, but also very much in the United States.
Speaker Change: Just to make it short, I think we were able to show you that we are a no-start-up.
Speaker Change: We are a real company, established with a strong customer base.
Speaker Change: worldwide.
Speaker Change: especially in Europe but also very much
Michele Molinari: And, uh... This drives our revenues, real revenues, and will drive further growth in this business, and we are very proud that every day, with our solutions, we impact already tomorrow. This is the goal and the mission of Kipe and Aramba, and this is what drives us forward every day, and I thank you for using these services with Kipe products on board. We are looking forward to our upcoming calls in the near future to provide more information and insights on Heramba. Thank you very much, ladies and gentlemen. We will now close this session, and we are looking forward to our next call. Thank you very much.
Speaker Change: This drives our revenues, real revenues, and will drive the further growth.
Speaker Change: in this business and we are very proud that every day with our solutions we impact already tomorrow.
Michele Mollenari: This is the goal and the mission of Kipe and Heramba, and this is what drives us forward every day. And I thank you for using these services with Kipe products on board. And we are looking forward to our upcoming calls in the near future to provide more information and insights on Heramba.
Speaker Change: This is the goal and the mission of Kipe and Haramba, and this is what drives us forward every day. I thank you for using these services with Kipe products on board.
Speaker Change: We are looking forward to our upcoming calls in the near future to provide more information and insights on Heramba.
Michele Mollenari: Thank you very much, ladies and gentlemen. We will now close this session, and we are looking forward to our next call. Thank you very much. Thank you.
Speaker Change: Thank you very much, ladies and gentlemen, we will now close this session and we are looking forward to our next call. Thank you very much.
Speaker Change: Thank you. Thank you.
Operator: This concludes today's conference.