Half Year 2024 ADS-TEC Energy PLC Earnings Call

Operator: Then we will talk about market trends and challenges. After that, we will talk about our strategy in use piece.

Cylinders.

After that we will talk about our strategy and use piece after that.

Operator: After that, we will show you the financial highlights, and we will end up with a few naysession where you will be able to send us your questions; you will answer them. You can send these questions during this event via the web portal or the webcast you are logged in.

Show you the financial highlights and we will end up with some Q&A session where.

You will be able to send us.

Your questions the allowance of them you can send these questions. During this event why of the web portal or the webcast you are locked in.

Operator: With that, I will hand over now to our CEO, Mr. Thomas Spider.

I will hand over now to our CEO Mr. Thomas Spider.

Thomas Spider: Thank you, Dennis. Welcome, dear ladies and gentlemen, investors. Thank you for taking your time, and I'm pleased to walk you through the first part before we will hand over to my colleague, the CEO.

Thomas Spider: Thank you Dennis welcome Dear, ladies and gentlemen investors.

Speaker Change: Thank you for taking your time.

Speaker Change: I am pleased to walk you through the first part before we will.

Speaker Change: We're coming with it.

Thomas Spider: A few bullet points at the beginning, the review of the first half of 2024. We have been able to increase our revenues by 17%, compared to last year, same period in 2023, so about 197% more, but the numbers will be explained by Wolfgang later. The adjusted every time is positive in the first half year, 2024. We have, and that is important, the significant amount of more customers will come to that later. It turns out that our platform strategy and the concept of a multi-revenue business model is the right way, and I will give a little bit more input on that later on.

Speaker Change: Okay.

Speaker Change: A few.

Speaker Change: Bullet points at the beginning the rescue.

Speaker Change: The first half of 2024.

Speaker Change: <unk>.

We have been able to increase our revenues.

Speaker Change: By 107% compared to last year same period in 2023, so about 107% more but the numbers will be.

Speaker Change: <unk> explained by Wolfgang later.

Speaker Change: The adjusted EBITDA is positive in the first half year 2024.

Speaker Change: And that is important to a significant amount of more customers will come to that later.

Speaker Change: And it turns out that our platform strategy.

Speaker Change: The concept of a multi revenue.

Speaker Change: <unk> business model is the right way.

Speaker Change: I will.

Speaker Change: Give a little bit more input on that later on.

Thomas Spider: We have meanwhile more than 2,500 high power charging points produced and delivered.

Speaker Change: We have meanwhile, more than 2500 high power charging points produced and delivered.

Thomas Spider: Let me say a few words, please, about the market trends and challenges. I think we all are aware of the news and everything what's going through the channels and mobility renewables, and I want to give a little bit an overview about the challenge and the volatile energy system. Who knows ADSTEC knows that we are dedicated to the transition of, let's say, the existing energy system to a decentralized sector crossing energy system, including also the mobility sector and transportation. We come from a decentralized, let's call it the old world, centralized power supply, and we are heading or we are already in the middle of that transformation too.

Speaker Change: Let me.

Speaker Change: To say a few words pleased about the market trends and challenges I think we all are aware of the news and everything what's going.

Speaker Change: Through the channels.

Speaker Change: Ability renewables.

Speaker Change: And.

Speaker Change: I want to give a little bit an overview about the challenge and the volatile.

Speaker Change: Energy system.

Speaker Change: Who knows atheistic knows that we do.

Speaker Change: Dedicated to the transition of <unk>.

Speaker Change: Let's say the existing energy system to decentralize sector crossing energy system, including also the mobility sector and transportation, we come from a decentralized let's call. It the old world centralized power supply and we are heading or we are already in the middle of that transformation.

Thomas Spider: We call it the new world, decentralized, intelligent, renewable world, and that is exactly where ADSTEC is dedicated to. So we are not a trucking company, we are not a utility company, we are providing intelligence with decentralized flexibility platforms, which also can be used for supercharging for energy trading and many things more, which we will see later on during this presentation as our strategy and the business model of our customers and future customers. Let me just explain a little bit about the volatile generation in consumption, which is the heart of the transformation. So we know that the wind and the autosolar and all the renewables that the energy is produced on a location and time-based, which is not exactly adjusted or aligned with the consumption.

Speaker Change: We call the new words, a decentralized intelligent.

Renewable world embedded exactly where.

Speaker Change: It is.

Is dedicated to so we are not a trucking company, we're not a utility company. We also widening intelligent.

Speaker Change: Decentralized flexibility platforms, which also can be used for turbo charging for energy trading.

Speaker Change: Many things more which we will see later on during this presentation as OE.

Speaker Change: Our strategy.

Speaker Change: The business model of our customers and future customers.

Speaker Change: Let me just explain a little bit about the volatile generation and consumption, which is at the heart of the transformation. So we know that the wind and solar on order in renewables.

Speaker Change: The energy is produced on a location and time based which is not exactly.

Speaker Change: Adjusted or aligned with the consumption and if we deduct from the generation that the consumption. Then there is a difference between these two parameters and we see that for on the consumption side, we have new participants such as the E mobility electric vehicles.

Thomas Spider: And if we deduct from the generation, the consumption, then there is a difference between these two parameters. And we see that on the consumption side we have new participants such as the immobility, electric vehicles, and they want to be slow or fast charge. We see the sectors heating are coming in, which is also part of the generation of new peaks and new consumption patterns. And we see even more in the future, such as electrolyzer, the sector coupling to gas, and many others. On the left side, the generation side is basically driven by volatility. And of course, we generate a higher amount of wind and energy on an offshore wind park, and also solar is on our rooftops or solar parks, and it's generated over the daytime and not at night.

Speaker Change: They want to be slow or fast charged we see this sector as heating are coming in which is also part of the generation of new peaks New con.

Speaker Change: Consumption patterns, and we see even more in the future such as the electrolyte.

Speaker Change: The sector coupling to gas and many others on the left side. The generation side is basically driven by volatility and of course, we generated a higher amount of wind energy.

Speaker Change: Offshore wind Parkman on onshore smaller park and also solar is on our rooftop solar parks and it's generated over the daytime and not at night. So the difference we know that that's.

Thomas Spider: So the difference, we know that that's the flexibility. And the best case, generation minus consumption is zero; that's not the case. And we call that the flexibility, and ADS take once to provide flexibility platforms, intelligent ones. And we see the flexibility is the twin brother of the regenerative generation. There is no generative word, which is our plan without flexibility. Of course, we need great expansion. We never said that great expansion is not a big part of that transformation, but great expansion alone will not be able to solve the issue of a very volatile and growing.

Speaker Change: The flexibility and the best case generation minus consumption is zero, that's not the case.

Speaker Change: And.

We call that the flexibility.

Speaker Change: <unk> wants to provide flexibility platforms intelligent ones.

Speaker Change: And we see the flexibility is the twin brother of the regenerative generation there is no generated word.

Speaker Change: Which is our plan without flexibility.

Of course, we need great expansion, we never said that expansion is not a big part of that transformation, but great expansion alone will not be able to solve the issue of a very volatile.

Thomas Spider: It's a huge growing market. So we have over generation in times where it's not needed, and we have a lack of supply in times where electricity or energy is needed. And that's exactly the point where ADS take and our solutions platforms and services are kicking in. We also see, and that's just a snap thought, we see that the great expansion and the upgrade, which is of course necessary, but it's also very expensive. We see that 300 billion euro is planned for the transmission grades only over the next years, and another 150 billion euro for the regional distribution grades, and the same or similar numbers we see in other countries and regions.

Growing it's a huge growing market. So we have over generation in times, where its not needed and we have.

Speaker Change: A lack of supply in times, where electricity or LNG is needed and that's exactly the point, where <unk> taken our solutions platforms and services are kicking in.

Speaker Change: We also see and that's just.

Speaker Change: So we see that the grid expansion and the upgrade which is of course necessary, but it's also very expensive.

Speaker Change: We see that 300 billion Euro is planned for the transmission grids only over the next years and another 150 billion euro for the regional distribution grid and the same or similar numbers, we see in other countries and regions. It's massive.

Thomas Spider: It's a massive demand of investment, and so there will be a priority. There must be a priority where to spend the money into the grid expansion, take the resources and upgrade the grid and where we can do that better by optimization of using the existing grid capacity, and that can be done by flexibility, any kind of flexibility, not just batteries. There are more, but in ADS take we are concentrating on battery buffet systems. If we look at the great fees, which is also a driver, then we see over the last years, let's say, 2010 up to 2019 in average, we saw on households consumer-based and also commercial or industrial in average between three and let's say five, almost six percent annual growth of the price, and now the last years, and this is due to the higher expenses for the grid upgrades.

Speaker Change: Mont of investment and so there will be.

Speaker Change: Our priority there must be a priority where to spend the money into the grid expansion take the resources.

Speaker Change: <unk>.

Speaker Change: Upgrade the grid and where we can do that.

Speaker Change: Better by optimization of using the existing grid capacity and that can be done by flexibility any kind of flexibility not just batteries. There are more but we in <unk>. We are concentrating on battery Burford systems.

Speaker Change: If we look at the great piece, which is also a driver that we see.

Speaker Change: Over the last year, let's say 2010 up to 2019 and average we saw on household consumer based and also commercial or industrial and average between three and let's say five almost 6% annual growth of the price and now the last year and this is due to the higher expenses for.

Thomas Spider: This investment must be distributed to all of us, to the end users, to the customers, to our electricity prices, and we see that grid expansion at the end will lead to higher costs. Power prices are going up in the US. We are talking about demand charge in Europe or Germany. We see that on our grid, expenses and so power prices are going up as well, because somebody has to pay for it. We think we believe we have once convinced that with our flexibility and the digital way of using it, we can avoid the peaks. If you can avoid the peaks and the grid upgrade, then you can save a lot of money, not only the greater upgrade itself, but also the total cost of ownership because the objects will go down.

Speaker Change: The grid upgrades this investment must be distributed to all of us to the end users to the customers to our own electricity prices and we see the grid expansion at the end will lead to higher costs down power prices are going up in the U S. We are talking about demand charge.

Europe, or Germany, we see that on our grid expenses and so power prices are going up as well because.

Speaker Change: Somebody has to pay for it and we think we believe we are convinced that with our flexibility.

And the digital.

Speaker Change: They are using it we can avoid the peaks if you can wait if you can avoid the peaks in the grid upgrade named you can save a lot of money not only the creator upgrade itself, but also the total cost of ownership because the Opex will go down we will not see these.

Thomas Spider: We will not see the additional costs in our own electricity bill if we can avoid the upgrade.

Speaker Change: <unk> cost in our own electricity Bill if we can avoid the upgrade.

Thomas Spider: Challenge number two, we call it the investors' or the innovators' dilemma and where we are right now in the segment of immobility. When we open the news every day, we see immobility is going up. It's going down with combustion engines come back again. I just want to explain a little bit how we see it as ADS tech. First of all, let's have a look at innovation cycles and usually happening. We see at the beginning, we have a starter time, any new technology has a start-up, then we have the earlier adopters, then we talk about the ramp-up phase, more people are taking the technology, and then we have a very strong period of growth.

Speaker Change: Challenge number two as we call it the investors or the innovators dilemma and where we are right now in this segment of E mobility and we when we opened the news every day, we see E mobility is going up it's going downward conversion.

Speaker Change: Engines come back again.

Speaker Change: And I just want to.

Speaker Change: <unk> been a little bit how we see it as <unk> and <unk>.

Speaker Change: First of all.

Speaker Change: Let's have a look at innovation sectors and usually.

Speaker Change: Yeah.

Speaker Change: <unk>.

Speaker Change: Happening so we see at the beginning we have a startup time any any new technology has a startup than we have the early adopters when we talk about the ramp up phase more and more people are taking the technology and then wherever we.

Speaker Change: Very strong period of growth.

Thomas Spider: We see this saturation and then the decline. Let's say, if we look at the records in the past, then the records have been taken over by the CD. The CD has been taken over by MB3, and today we are on the streaming level. These are the different technologies, and they are replacing each other. If we look now here on the current business, which is our mobility sector, then we see the technology, and it's the more efficient way of driving. From our perspective, there is no other opportunity than on the long run, the EVs, because no gearbox, no exhausting system. The efficiency is much higher; we have 90% plus on the electric motor compared to the combustion engine.

Speaker Change: We see the saturation in the decline.

Speaker Change: Let's say if we look at the records in the past than the records have been taken over by the CD. The Cds has been taken over by.

Speaker Change: MP three and today, we own the streaming level. So these are the different technologies and their own <unk>.

Speaker Change: Placing each other and if we look now here on the current business, which is our mobility sector. Then we see the ice's internal combustion engine the blue curve.

Speaker Change: And the Green, one which is the pure EV technology and.

Speaker Change: It's the more efficient way of driving so from our perspective, there is no other opportunity than.

Speaker Change: On the long run the Evs because no gearbox no.

Speaker Change: Exhausting system and so on.

Speaker Change: Uh huh.

Speaker Change: <unk>.

Speaker Change: The efficiency is much higher we have 90% plus on the electric motor component compared to the combustion engine and now we see on this curve the blue one.

Thomas Spider: And now we see on this curve the blue one; we are, of course, a very long growth period. Now we end the saturation, and the new curve has already started. We tried to point out where we think we are; that's the black spot here in this area. It is kind of a dilemma zone. So a lot of companies are making their money from the blue curve, and at the same time you have to invest in the green one. In this dilemma zone, this is what we see right now, and any politicians would have a good advice if this will be transferred or we make the transition to the new technology as soon as possible, and we are not hesitating by doing both because that will lose a lot of money.

Of course for a very long growth period now we end the saturation and the new curve has already started we tried to point out where we think we are that's the black spot here and this area is kind of a dilemma zone. So a lot of companies are making their money from the.

Speaker Change: Blue curve.

Speaker Change: And at the same time, you have to invest in the Green one and this dilemma zone. This is what we see right now and.

Speaker Change: Any politicians.

Speaker Change: Or would have a good advice is this.

Speaker Change:

Speaker Change: It will be.

Speaker Change: <unk> heard or.

Speaker Change: We make the transition to the new technology as soon as possible and we are not hesitating by doing both.

Speaker Change: That will lose a lot of money and we expect that now after a little bit of hesitation time, we will see that to bring curve really gets up very strongly and if we look at the development of the market and we compare Q1 2023 with Q1 2024, then we.

Thomas Spider: And we expect that now, after a little bit of a hesitation time, we will see that the green curve really gets up very strongly. And if we look at the development of the even market and we compare, she won 2023 with 2021, 2024 then we see in almost, in the, in the majority of the markets like such as China, even USA or Europe, except of Germany and Italy we see a growth in the, the development. So Germany went down 14%, but that's also due to the reduction of the subsidies last year. You get around 6K if you, if you have bought an EV and then out of the sudden by end of the year it was 10th, which then led to a reduction in, in the EV population.

See in almost.

Speaker Change: And the majority of the markets such as China, even USA.

Speaker Change: Europe, except of Germany, and Italy, we see a growth in the EV development, So Germany went down 14%, but that's also.

Due to the reduction of the subsidies last year, you've got around 6K. If you. If you have board and EV and then out of the starting by end of the year. It was answered, which then led to.

Speaker Change: And in the EV.

Thomas Spider: And what we see is now that new drivers are coming in. So these are the latest news, some of them at least here from Germany. So, we will see text right off. We can, we see that subsidies are kicking in again. And we also see that people realize that the total cost of ownership from EVs is cheaper than running a combustion engine, and over the next years we will also see that CO2 emission cost will be another driver to invest in electric vehicles. And one part which is important is that also the fleets, if we look now, most of the new cars in Germany or also in Europe are bought by companies.

Speaker Change: Population and what we see is now that the new drivers coming in so these are the latest news some of them at least here from Germany. So we will see checks.

Speaker Change: <unk>.

Speaker Change: Write offs, we can we see that.

Speaker Change: Subsidies are kicking in again and we also see that people realize that the total cost of ownership.

Speaker Change: <unk> <unk> is cheaper than running a combustion engine over the next years. We will also see the seal to emission cost will be another driver.

Speaker Change: To invest in.

Speaker Change: Electric vehicles, and one part which is important but also the fleets. If we look now most of the new cars in Germany also in Europe are bought by.

Thomas Spider: And so now if you can save a lot of tax and even people who are having a company car and they can save tax and have more net income than compared to a combustion engine, then they will go for that. And now it's upgraded so we can go up to the latest number was 95,000 euro for, so the, the sticker price of a car can go up to 95,000 and it has been so far, 60,000. So there is now room of development and we expect that this is a driver of the EV segment as well.

Speaker Change: Companies.

Speaker Change: And so now if you can save a lot of tax and even.

Speaker Change: People who are having.

Speaker Change: Company car and they can save tax.

Speaker Change: We have more net income than compared to our conversion engine then they will go for that and now its.

Upgraded so we can go up to the latest number was 95000 euro four so the sticker price of a car can go up to 95000. It has been so far 60000 says there is now.

Speaker Change: <unk> of development and we expect that this is a drag on.

Thomas Spider: And we also see that the range anxiety is mostly gone. Our people who are driving in EV, they know that that's not the big point anymore. We just have one example last week. We had a drive from Venice here to Stuttgart, and with one charge, 25 minutes that was done, and we had even 18% remaining capacity. So I think this is all done, and more and more people will see that it's more efficient, cheaper, and the way into the future. is based on that.

Speaker Change: The <unk> segment as well and we also see that the range anxiety is an.

Speaker Change: Mostly gone and our people who are driving a navy. They know that that's not the big point anymore. We just have a one example last week.

Speaker Change: We had to drive from venues here to cut in with one charge 25 minutes that was done and we had even 18% remaining capacity. So I think this is all done in more and more people will see that is.

Speaker Change: More efficient cheaper and the way into the future.

Thomas Spider: Now I cannot move to the next stage. What has happened? Now it works. So this will drive with an enormous speed the population of EVs. Here we are referring to development estimation from P3, and we see in Europe the growth and the growth which is expected in the US. And if we look at the numbers here on the timeline, then we are at the very beginning. And according to the installation of the population of the cars, we will also see the demand for charging will grow. And as we all know, it is very convenient to charge nearby or where you are.

Speaker Change: Based on that.

Speaker Change: I cannot move tourism pitch what has happened.

Speaker Change: No.

Speaker Change: So this will drive with an enormous.

Speaker Change: Speed the population of Evs here, we are referring to.

Speaker Change: Two.

Speaker Change: <unk>.

Speaker Change: Development.

Speaker Change: Estimation from <unk>, three and we see in Europe, the growth and the growth, which is expected in the U S and if we look at the numbers here on the timeline than we are at the very beginning.

Speaker Change: And according to the installation of the or the.

Speaker Change: Population of the costs, we will also feed the demand for charging will grow.

Speaker Change: As we all know, it's very convenient to charge nearby or where you are.

Thomas Spider: And that will be also a driver for installations on our offices, factories in the cities, in residential areas because for people it is always more convenient to charge where you are. And it might be even cheaper because you can use your own generation from solar, for example.

Speaker Change: That will be also a driver for installations on our offices factories in the cities in residential areas because for people it's always.

Speaker Change: More convenient to chart, where you are in which it might be even cheaper because you can use your own generation.

Speaker Change: From solar.

Thomas Spider: Some few words about the strategy and our US piece. We always talk about the intelligent platform solution where we manage flexibility, but it is not us. It is always done in the combination with our customers and partners. And we just want to point that out again. Yes, of course we have the hardware, and we have to own the hardware. We have to have full control over the hardware. That is the only way how we can provide services over many, many years. The reason that ADS tech has its own battery modules, the own BMS in rural technology, securities, tech, spec and integration, digital trends and all that is that we are able to act over long period.

Speaker Change: For example.

Speaker Change: Some.

Speaker Change: Few words about this strategy and our U S piece.

Speaker Change: We always talk about intelligent platform solution, where we manage flexibility, but it's not us it's always done in combination with our customers and partners and we just want to point that out again, yes of course, we have the hardware and we have to own the hardware we have.

Speaker Change: Two.

Speaker Change: <unk> has full control over the hardware that's the only way how we can provide services over many many years.

Speaker Change: The reason that <unk> has its own battery modules beyond BMS in Windows technologies Securities tax backend integration digital twins and all that is that we are able to add over long term period and based on that we also have the full software stack, whether it's the charge control.

Thomas Spider: And based on that we also have the full software stack, whether it is the charge controller, the inverter technology, the battery control system, and also the back end. We want to have full control over the software as well. That makes us stronger to the one partner, one stop customer for our customers and long-term partners. And based on that we can offer services which is availability services, remote monitoring, data acquisition and also spare parts for a long term and keeping the system up and running for not just five years or eight years maybe for 10 or 15.

Speaker Change: The inverter technology, the battery control system.

And also the back end, we want to have full control over the software as well that makes us in total.

Speaker Change: Two the one partner one stop customer for our customers and long term partners and based on that we can offer services services.

Speaker Change: Which is availability services remote monitoring data acquisition.

Speaker Change: And also spare parts for long.

Speaker Change: Term and keeping the system up and running for not just five years or eight years, maybe for 10 or 15 and this saves the investment of our customers. So we take care about the total cost of ownership to maximize the outcome the revenue streams out of your investment.

Thomas Spider: And this saves the investment of our customers, so we take care about the total cost of ownership to maximize the outcome, the revenue streams out to fuel investment. And in addition to that, and that is now the last part, we are adding software-based services which may be digital payment, digital monitoring, but also app; we call it also app. So feature trading electricity back to the grid or through the stock peak shavers and real-time peak shavers or quarter-hour peak shavers. Solar integration gets, of course, charging but also others such as advertising on the charge post. So that is now the whole stream.

Speaker Change: In addition to that and that is now the last part.

Speaker Change: Adding software based services, which maybe.

Speaker Change: Digital payment.

Speaker Change: Metering, but also as we call. It also features.

Speaker Change: Trading trading electricity back due to greater stock peak shavers.

Speaker Change: Real time peak shavers or quarter hour peak shavers solar integration.

Speaker Change: Of course charging but.

Speaker Change: Also other such as advertisement on the charge post so that is now the whole stream. It's not just the components. We are not competing on a component level. It's the platform. It's the ecosystem.

Thomas Spider: It's not just the component. We are not competing on a component level. It's a platform; it's an ecosystem. And on this ecosystem, we will provide all the basic services and features and apps and data-driven services. And our customers then are able to use not only the data and the apps; they can use the platforms, for example, to make a swarm out of many and then operate them as a virtual power plant or as a park. So even if no cars showing up for a charge, the investment can be used by other revenue.

Speaker Change: And on this ecosystem, we will provide all the basic services and features and apps and data driven services.

Speaker Change: And our customers then are able to use them not only the data and the apps. They can use the platform for example to make us warm out of many.

Speaker Change: Then operate them.

Speaker Change: As virtual power plant or as the park. So even if no cars showing up for a charge the investment can be used by other revenues.

Thomas Spider: Here are some examples. We know that from the standard battery systems and then the two combined systems including supercharging, Charge Force and Charge Force. It's just to visualize the idea we see, and I always combine it with the Swiss Army knife. A normal charger might be a knife can be used to cut something, but you have only one single business case. A charger can take an electron from the AC grid and can transfer the electron to a DC very highly specified and standardized DC charging inlet of any of these cars. That's the only business middle and the only way to make revenue is that cars are showing up and utilization is high enough and there is no competitor nearby who is selling the electron cheaper.

Speaker Change: Here's some examples we know that home.

Speaker Change: Standard.

Speaker Change: Battery systems, and then the two comp.

Speaker Change: Combined.

Speaker Change: Supercharging chunks not in charge for us.

Speaker Change: Objective visualize.

Speaker Change: The idea, we see and I always combine it with the Swiss Army knife.

Speaker Change: Our normal charge might be a nice slide can be used to cut something but you have only one single business case.

Speaker Change: A charterer can take in elektron from the AC grid and can transfer the elektron to D. C very highly specified and standardized D. C. Charging inlet of any of these cars that's the only business in the.

Speaker Change: The only way to make revenue is the cars are showing up and utilization is high enough and there is no competitor nearby who is selling the elektron cheaper.

Thomas Spider: What we are offering with the flexibility and the platform on the right side is charging; is only one tool out of that with Army knife. Yes, of course, you can supercharge. You can supercharge even on the power limited grid, so you don't even have to have a grid expansion and pay for a higher price for the higher power rates in the future. You have even more revenue streams out of your investment, which may be energy trading, peak shaving, grid service, advertising. It's depending also on the local regulation. We see that just in Germany we have 850 grid operators in Europe.

Speaker Change: What we are offering with the flexibility in the platform on the right side is touching it's only one tool out of that Swiss Army knife. Yes of course, you can supercharge you can supercharge even on the power limited grid. So you don't even have to have a great expansion in pay for a higher price for the <unk>.

Speaker Change: Power rates in the future you have even more revenue streams out of your investment, which may be energy trading peak shaving grid services advertisement depending also on the local regulation.

Speaker Change: We see that in our test in Germany, we have 850 grid operators in Europe, we have many many different regulations, whether it's in Austria, Switzerland in UK and also in the U S. North America. So we will follow all of these changing regulations and we are the one so one stop.

Thomas Spider: We have many, many different regulations, whether it's in Austria, Switzerland, or the UK. Also in the US, North America, so we will follow all of these changing regulations, and we are the one, so one stop stopping partner who is able to adjust all these different things to optimize the business models of our customers and partners. So this is what we call the ability to act, and it's important that you, you, our customers and the investors have to know that as well that there is a secure partnership where we can turn any of the screws which might be necessary.

Stopping partner, who is able to adjust all these different things to optimize the business models of our customers and partners.

Speaker Change: So this is what we call the ability to act and its important that you you our customers.

Speaker Change: And the investors have to know that as well that there is.

Speaker Change: Secure partnership where we can turn any of the screws, which might be necessary. So if there is a new regulation in payment on DC metering or in grid code or in whatever else.

Thomas Spider: So if there is a new regulation in payment or DC metering or in a grid code or in whatever else, then we are not depending on any third party. And I think that's a very important message because we have seen in many cases then that investment got stuck because dependencies from others led to the event that then the product was not able to be maintained furthermore or that certification was lost, and the company was not able to solve the problem because of the dependency from third parties.

Speaker Change: Then we are not depending on any third party and I think that's a very important message because we have seen in many cases than the.

Speaker Change: That investment's got stock because dependencies from others led to the event that then.

Speaker Change: The product was not able to be maintained Furthermore, certifications.

Speaker Change: Certification was lost.

Speaker Change: The company was not able to.

Speaker Change: So problem because of the dependency from third parties.

Thomas Spider: One of my most important slides is here, how our business develops, and here you see the last years, and maybe this gives also a very good insight into the business development. Let's start with the year 2020, and everybody knows that Porsche has been our first big customer. So it was one customer with a very high revenue and numbers. Then in 2021, we basically got another six customers and partners into the business. And then in 2022 it went up to 10 and 18, and the customer base has completely changed, and I want to say something about the sales channel and how long it takes.

Speaker Change: One of my most important slides.

Speaker Change: How our business develops and here you see the last years and.

Speaker Change: Maybe this is also a very good.

Speaker Change: Inside into the business development, let let's start with the year 2020.

And.

Speaker Change: Everybody knows that Pasha has been our first big customer. So it was one customer with a very high.

Speaker Change: Our revenue numbers than in 2021, we basically.

Speaker Change: <unk> got another six customers.

Speaker Change: Partners into the business and then in.

Speaker Change: In 2022, it went up to 10 18, and Meanwhile, the 53.

Speaker Change: The customer base has completely changed and I want to say something about the sales channel and how long it takes to if we onboard or if we come together with let's say, a startup and that might be much faster than with the blue chip customer because it blue chip customer they take the time to.

Thomas Spider: So if we onboard or if we come together with let's say a startup, then that might be much faster than with the blue chip customer because the blue chip customer, they take the time to do all the evaluation. We know that in the market many people over the last years have been disappointed because systems were not running up times have been expected. So they want to test it, and we see now what we have done over the last years. We brought more and more of these blue chip customers into our customer base, and on the right side we see the business cycle as we call it.

Speaker Change: Do the evaluation, we know that in the market many people over the last years have been disappointed.

Speaker Change: Because systems were not running up times have.

Speaker Change: Ben.

Speaker Change: <unk> have been expected so they want to test it and we see now and what we have done over the last years, we brought more and more of these blue chip customers into our.

Speaker Change: Our customer base on the right side, we see the business cycle as we call. It. So the first order is.

Thomas Spider: So the first order is we have more than 15 customers now coming in from automotive OEM's, gas station, retail destination, chargepoint, operators, fleets and depots, even the e-board business, and then they start with the rollout. Most of them with a small numbers from 1, 5, 10, maybe 15. And they are now here; we have our second business cycle where they ramp up their installation. And then we are getting to the recurring services because we can sell also the services such as availability services or data driven services. And then in the last part, which is number four, I just explained it in the future.

Speaker Change: More than 15 customers now coming in from automotive Oems gas station retail destination charge point, operator fleets in depots.

Speaker Change: Even the <unk> business and then they start with the rollout most of them with a small numbers from one 510, maybe 15 and they are now here, we have our second business cycle, where they.

Speaker Change: <unk>.

Speaker Change: Ramp up their installation and then we are getting to the recurring services because we can sell all sorts of services such as availability services or data driven services and then in the last part which is number four not just explained it in the future we will.

Thomas Spider: We will offer also the digital subscriptions based on data and additional apps which can be operated on our systems by our customers and partners. And I think the most important thing is here that we do exponentially from the amount of customers. So, and that was a really hard work because the sales cycle, and this is something I want to just to point out with this slide, to onboard or to get onboarded also the other way around from a blue chip corporation, one of the well-known companies, that takes between 9 and 12 months. So from the first touch point that the customer gets interested in our technology or platforms until they really buy the first system.

Speaker Change: Bill.

Speaker Change: Also the digital subscriptions based on data and additional apps, which can be operated on our systems by our customers and partners and I think the most important thing is here that we grew exponentially from the amount of customers.

Speaker Change: So and that was the really hard work because the sales cycle and this is something I want to try and out with this slide.

Speaker Change: To onboard or to get on board and also the other way around.

Speaker Change: Blue Chip Corporation, one of the well known companies that takes between nine and 12 months. So from the first touch point.

That the customer gets interested in our technology or platforms.

Speaker Change: Until they really buy the first system and we have seen that last year.

Thomas Spider: And we have seen that last year very big corporations they decided to buy one system; then they put it six months into a lab, do all the testing, and whether it's according to the specification or to the expectation. And even then it takes up to six months until the first sites, besides the testing labs, then are installed. And so it's a step-by-step and also the onboarding on the commercials to discuss and to negotiate frame orders if you want to spread the business over many countries. Then it takes time to get all the legal stuff in the financial contracts we've done the same with in North America or Canada.

Speaker Change: Very big corporations, they decided to buy one system then they put it six months into our lap do all the testing and the.

Speaker Change: Whether it's according to the specification to the expectation and then even then it takes up to six months until the first sites. Besides the testing labs than our installed and so it's a step by step and also the onboarding on the commercial side now to discuss and to negotiate frame orders.

Speaker Change: If you want to spread the business over many countries then it takes time to get all the legal stuff into financial.

Speaker Change: Contractual work done the same we see North America, and Canada, and so we need to see the timeline to get on boarded into these bigger structures.

Thomas Spider: And so we need to see that the timeline to get onboarded into these bigger structures is not days or weeks. But then it ramps up, and we just want to point out that we now have more than 50 of these partners and customers onboarded over the last three years, and that is also the basis of the growth in the future. And for us it's important that now the risk also is much more spread to many customers. So it's much more risky if we have one or two or three customers with a high number compared to a significant amount of customers taking maybe at the beginning a lower number but then growing with us together into the market.

Speaker Change: If not days or weeks, but then it ramps up.

Speaker Change: Just want to point out that we now have more than 50 of these partners and customers on boarded over the last three years and that is also the basis of the growth in the future and for US. It's important that now the risk also is.

Much more spread to many customers. So it's much more risky we have one or two or three customers with a high number compared to significant amount of customers, taking maybe at the beginning a lower number but then growing with us together.

Thomas Spider: And we are very happy that more and more people understand that there is a differentiation between just buying a charger as a component or having the opportunity to run a flexible digital platform and to optimize your own revenue streams on your site in the infrastructure. And we see that more and more people understand that they have a new opportunity to make revenues because, due to the fact that the electricity in the sector coupling now is coming to us on our location, on our promises, on the factory site, on the office building sites, that they can also make money and that they are not depending on a utility anymore where they just have to accept what they are offering.

Speaker Change: The market and we are very happy that more and more people understand that there is a differentiation between trust buying a charter is a component.

Speaker Change: Having the opportunity to run a flexible flexible digital platform and to optimize your own revenue streams on your side in the infrastructure and.

Speaker Change: We see that more and more people understand that they have a new opportunity to make revenue because due to the fact that the electricity in the sector coupling now is coming to us on our location on our promises on the factory side on the office building.

Speaker Change: Sites that they can also make money in that.

Speaker Change: We are not depending on our utility anymore, where they just have to accept what they are offering. So you can use now your owned photovoltaic you can optimize the tranche of your fleet.

Thomas Spider: So you can use now your own for the work type, you can optimize the charge of your fleet, your customers, your visitors, and also then the sector coupling including heating and the normal consumption of electricity.

Speaker Change: Your visitors and also then the sector coupling, including heating and the normal consumption of electricity.

Thomas Spider: So with that, a few words about the proven tracker account, and we see that we have expanded the business over the last year. And also the last half year in further segments. We see that electric trucks are getting more and more important ADS to get not focusing on the megawatt traction. We believe that the battery, and that's always our case. So this flexibility must be part of the platform, the ecosystem, but we see that even big trucks that they can use it. And here we have an example from the Netherlands; it's a garbage truck, and they run the garbage trucks the whole day.

So with that.

Speaker Change: A few.

Words about the proven track record and we see that we have.

Speaker Change: We have expanded the business over the last year and also the last half year.

Speaker Change: Further segments.

Speaker Change: We see that electric trucks.

Speaker Change: We're getting more and more important <unk> is not.

Speaker Change: Focusing on the megawatt traction we believe that the battery and that's always our case, so the flexibility must be part of the.

Speaker Change: The platform the ecosystem, but we see that even.

Speaker Change: Big trucks.

Speaker Change: That they can use it here we have an example from the Netherlands, it's garbage truck and they run the garbage trucks.

Thomas Spider: And along the route, we have then installed truck boxes which are able to charge the trucks with 300K. And we want over the next years we can expand that up to maybe 640K, but we are not addressing the multi megawatt charging infrastructure or product because we believe that here the direct rate connection will be the right solution. We also see that new segments such as voting are getting interested more and more. And of course we have expanded the business, the charge pose to much more customers and also the charge box is now in a more OEM solutions integrated.

The whole day and along the route we have done in store charge boxes, which are able to charge the trucks with 300 Kt and we want over the next years, we can expand that up to maybe 600 over 640 K.

Speaker Change: But we are not addressing the multi megawatt charging infrastructure or product because we believe that the direct connection will be the right.

<unk>.

Speaker Change: We also see that the new segments such as boating.

Speaker Change: Getting interested more in more and of course, we are expanded the business.

Speaker Change: Posed to much more customers and also the charge books.

Speaker Change: Now.

Speaker Change: And more OEM solutions integrated and we see the business and the demand for charter potent charge box will be more and just to give you. One example, so why should not for example, with the police.

Thomas Spider: And we see that the business and the demand for charge pose and charge box will be more. And just to give you one example, so why should not, for example, the police use EVs. So how many thousand tons of CO2 can be saved every year if just the police of here, our state body wouldn't beg of the barrier. Whoever would replace a part of the combustion cost by pure EVs. And they are just driving in average 100 kilometers a day. So that's nothing for EV. And if we would equip the infrastructure on all the distributed police stations with, for example, a charge box or a charge pose.

Speaker Change: Use evs, so how many thousand tons of <unk> can be saved every year. If just the police of our state body Wittenberg of Bavaria, whoever would replace a part of the combustion caused by pure Evs and they address driving.

Speaker Change: Average 100 kilometers a day.

Speaker Change: Nothing for EV, and if we would equip the infrastructure on all the distributed police stations with for example, the charter book surcharge post that would be a V.

Thomas Spider: That would be very easy, but a high significantly, it will have a high impact on the CO2 emission. And that can be all done right now.

Speaker Change: Very easy but.

Speaker Change: Our highest signal it will have in high impact on this year to emission and that can be all done right now and so we see that many of these discussions are coming up one last example.

Thomas Spider: And so we see that many of these discussions are coming up. One last example: one customer; they have invested in an infrastructure for taxi. We call it a taxi platform. So the investors are providing the taxes themselves, pure EVs, including the charging infrastructure, which is fully equipped with ADS, take charge posts. And they started in one European city, and the taxi driver, they just pay a flat rate per month. And they get charging for free without unlimited charging, charging as much as you can. And they charge. They just want to fix the month to be messed up.

Speaker Change: One customer.

Speaker Change: They have invested in an infrastructure for taxi.

Speaker Change: <unk>.

Speaker Change: We call it a taxi platform. So the investors are providing the Texas themself.

Speaker Change: <unk>, including the charging infrastructure, which is fully equipped with <unk> taken charge posts and they started in one European city and taxi driver. They just pay a flat rate per month.

Speaker Change: And they get charging for free without unlimited charging charter as much as you can in the chart.

Speaker Change: One fixed amount per month to the investors. So they can use the car and charging infrastructure and I think the new models and that shall be spread now to other countries in Europe as well.

Thomas Spider: And so they can use the car and the charging infrastructure.

Thomas Spider: And I think these new models, and that should be spread now to other countries in Europe as well. We think we are at the very beginning of all the new business models, which will change the complete setup as well.

Speaker Change: We think we are at the very beginning also new business models.

Speaker Change: Which will change the complete set up as well.

Thomas Spider: Here we see just the previous and more ideas about where it could be used. On the left here we see the exhibition in Munich where EON has shown our torture, and also here on SOGASTations, which by the way we have now more brains from the gas stations taking charges. Why? Because it's kind of a self-opligation that the gas stations said, at least here in Germany, that they want to equip their sites with at least one or two super troughs over here. In many locations, it's cheaper to not upgrade the grid, and then they just rip out the vacuum cleaner and put the charge box in, and then you have a 300k charge on that site.

Speaker Change: Here, we see adjusted did give you some more.

Speaker Change: Ideas about where it could be used on the left here, we see the exhibition in Munich, where Ian has shown our chartering.

Speaker Change: And also here on Esso gas stations, which by the way we have now more.

Speaker Change: New brands from from the gas stations taking charges.

Speaker Change: Because it's kind of a self obligation that the gas stations that at least here in Germany that they want to equip them.

Speaker Change: The sites with at least one or two supercharged with me here.

Speaker Change: In many locations is it cheaper talks not upgrade the grid and then they transfer it out the vacuum cleaner and put a charge box in and then you have for 300 K.

Wolfgang: We also see distributed areas where you see the tycon, so I would say it's almost in the middle of nowhere, but even there people want to charge and they want to quick charge their cars. So this is also a new segment, and we see on the left an example where, for example, retail and no retail rental cars, sorry, rental cars are now using more and more EVs. And to quick charge the return return cars, it's also impossible to equip all the return locations from the rental cars with grid upgrade or super charges. So these are just some ideas. On the right side, we see a retail store, and here we have another example for a gas station which is in Berlin. So with that over fuel, I would like to hand it over to you, Wolfgang, and please take over and tell us something about the financial highlands, of course.

Speaker Change: So on that side.

Speaker Change: Also to be distributed areas, where you see the thaicom.

Speaker Change: I would say, it's almost in the middle of nowhere, but even there people want to charge and they want to quick charge. Their cars. So this is also a new segment.

Speaker Change: We see on the left an example, where for example.

Speaker Change: Rita.

Speaker Change: No.

Speaker Change: Rental car rental.

Speaker Change: Our rental costs are now using more and more evs and two quick charge.

Speaker Change: The return return costs.

Speaker Change: It's also impossible to increase or the return.

Speaker Change: Occasions from the rental cost.

Speaker Change: It upgrades or supercharged. So these are some ideas on the right side, we see a retail store and here we have another.

Speaker Change: Example, for a gas station, which is in Berlin, So with that overview I would like to hand, it over to you Wolfgang.

Speaker Change: Yes.

Wolfgang: Take over and tell us something about the financial highlights. Thank you Thomas and good day everyone.

Wolfgang: Thank you Thomas and good day everyone. Before giving you more insights into the state of our business from a financial perspective, I'm also, as Thomas, excited to report that ADS Tech Energy continued its strong financial and operational performance in the first half of 2024, achieving key milestones that underscore the company's ongoing growth trajectory. We are delighted to report that first half of 2024 revenue was 79.3 million; for Q2, revenue reached 42.4 million. This reaffirms our confidence in the strengths of our business models, robust customer demand, and the overall market opportunity. We remain committed to driving sustainable growth and long-term shareholder value. We are excited about the ongoing growth of our business, the progress we have made in the last years, and the opportunities that lie ahead.

Wolfgang: Before giving you more insights into the state of our business from a financial perspective.

Speaker Change: Im also ask Thomas excited to report that <unk> technology continued strong financial and operational performance.

Speaker Change: In the first half of 2020 for achieving key milestones that underscore the company's ongoing growth trajectory.

Speaker Change: We are delighted to report that first half of 2024 revenue was $79 3 million for Q2 revenue reached 42.

Speaker Change: $4 million.

Speaker Change: This reaffirms our confidence in the strength of our business model is robust cost customer demand.

Speaker Change: And the overall market opportunity, we remain committed to driving sustainable growth and long term shareholder value.

Speaker Change: We are excited about the ongoing growth of our business. The progress we have made in the last years.

Wolfgang: Before giving you an outlook for fiscal year 2024, let me go back to our H1 2024 numbers in more detail. You will find all the details in the appendix to this presentation, where you find a DNL balance sheet cash flow statement in detail. We are very excited to report strong performance year to date. Our revenue grew more than 107 percent compared to last year's period, which was 38.3 million. From a product perspective, most of our sales, like in previous reporting periods, was generated by charging products, which we have seen before: charge box and charge post, which accounted for the majority of total revenues. Commercial and industrial products, service, and others will also contribute. From a geographic perspective, most of the revenue originates from Europe.

Speaker Change: The opportunities that lie ahead.

Speaker Change: Before giving you an outlook for fiscal year 2024, let me go back to our H, one and 2024 numbers in more detail, we will find all the details in the appendix to this presentation, where you'll find.

P&L balance sheet cash flow statement in detail. We are very excited to report strong performance year to date, our revenue grow grew more than 107% compared to last year's period, which was $38 3 million from a product perspective, most of our sales.

Like in previous reporting periods was generated by chartering products, which we have seen before charge box and charged post which accounted for the majority of total revenues commercial and industrial products service and others were also contributing.

Speaker Change: From a geographic perspective, most of the revenue originates from Europe. This underlines that Europe is ahead of the United States.

Wolfgang: This underlines that Europe is ahead of the United States in terms of the adoption at this stage. Ads-Tec Energy, with a strong European footprint in service and production, is well positioned to cope with the expected strong growth in that geographical market. Important to mention is that European markets outside Germany and also the United States markets are growing and proof our growing international footprint. From a customer perspective, we saw a significant broadening of our customer base, as Thomas explained, with significant players entering the market, but also increasing investments from financial institutions in the charging business. This accelerates our growth potential as we go forward.

Speaker Change: <unk> adoption at this stage areas take energy was a strong European footprint and service and production is well positioned to cope with the expected strong growth in that geographic market.

Speaker Change: I want to mention is that European markets outside Germany, and also the United States markets are growing.

Speaker Change: Our growing international footprint.

Speaker Change: From a customer perspective, we saw a significant broadening of our customer base as Thomas explained with significant players entering the market, but also increasing investments from financial institutions and the charging business. This accelerates our growth potential as we go forward.

Wolfgang: Turning to growth profit, we saw improvements quarter on quarter. Q2 of 2024 was the third quarter in a row with positive growth margins. For H1, growth profit came in at 15.7 million and growth margin of 19.8 percent compared to a break even. Growth profit in the first half of 2023. Improving processing environments, optimized production processes, and finally economies of scale and volume impacts turned the growth margin into the black numbers we saw for the first half. Coming to operational expenses below growth margin, which amounted to 20 million. This means sales, general, and admin expenses, as well as research and development expenses.

Speaker Change: Turning to gross profit, we saw improvements quarter on quarter Q2.

Speaker Change: Of 2024 was the third quarter in a row with positive gross margins.

Speaker Change: For each one gross profit came in at $15 7 million and gross margin of 19, 8% compared to a breakeven gross profit in the first half of 2023, improving purchasing environment optimize production processes, and finally economies of scale and volume impact.

Turning to the gross margin into the black numbers, we saw for the first half coming to operational expenses below gross margin, which amounted to 20 million. This means sales general and admin expenses as well as research and development expenses.

Wolfgang: The increase compared to H1 of 2023 is only 11.7 percent, which indicates better efficiency in our sales and administrative functions. The levels we have reached here allowed to support the business going forward, but both geographical expansion and an increasing service component may require more investments. Needless to say, at listing expenses, including insurance cost contributed here also as well as increased general warranty provisions because of the growing top line. R&D expenses grew significantly because of increased costs in that area and also lower capitalization of development expenses as our product lines offer and offerings mature. Other income and expenses in the first half of 2024 and previous years are driven by operational currency exchange gains and losses, which are not substantial to the business.

Speaker Change: The increase compared to H. One of 2023 is only 11, 7%, which indicates better efficiency in our sales.

Speaker Change: It's trades of functions.

Speaker Change: Once we have reached here allowed to support the business going forward, but both geographical expansion and an increasing service component may require more investments.

Needless to say that listing expenses.

Speaker Change: <unk> insurance costs contributed to you also as well as increased general warranty provisions because of the growing top line.

Speaker Change: R&D expenses grew significantly because of increased costs in that area and also lower capitalization of development expenses as our product lines.

And offerings mature.

Speaker Change: Other income and expenses in the first half of 2024.

Speaker Change: Here are driven by operational currency exchange gains and losses, which are not substantial to the business.

Wolfgang: Our operating result came in at 5 million negative in H1 of 2024 compared to minus 20 million in H1 of 2023, so a strong improvement here. Our EBITDA came in at minus 1.4 million for H1 of 2024 compared to minus 17.6 million in the period last year. Adjusted EBITDA adjusted for share-based payments and inventory adjustments for the first six months is positive 3.6 million compared to minus 14.3 million in the previous period last year. More importantly, Q2 2024 marks the third profitable quarter on an EBITDA adjusted base since the IPOD specs process, as I said on an adjusted EBITDA base.

Speaker Change: Our operating results came in at 5 million negative in each one 2024 compared to minus $20 million in H, one and 2023 so.

Speaker Change: Strong improvement here, our EBITA came in at minus $1 4 million for each one and 2024 compared to minus $17 6 million in the period last year adjusted EBITA adjusted for.

Speaker Change: Share based payments of inventory adjustments for the first six months.

Speaker Change: Positive $3 6 million.

Speaker Change: Compared to minus $14 3 million in the previous period last year more importantly, Q2, 2024th marks the third profitable quarter on an EBIT adjusted pace since the IPO This spec process.

As I said on an adjusted EBITA basis.

Speaker Change: Looking at our balance sheets, we further reduced our inventory.

Wolfgang: The second quarter with the solid cash position of 23.7 million, the proceeds of the exercise of borrants arising from the December capital race were used to repay portions of our. Now let me come back to the outlook for full year 2024. We anticipate continued positive momentum in the second half of the year with expectations for increased sales revenues compared to the first half of the year. The company remains on track to be adjusted if it's our positive. For the full year, reinforcing its position as a leader in the ultra fast charging market. On those revenue levels, which will be the highest in the company's history, we are expecting again positive even dark for the year.

Speaker Change: Receivables were up in comparison to last year because of the increase in revenues. We ended the second second quarter with a solid cash position of $23 7 million. The proceeds of the exercise of warrants arising from the December capital raise were used to repay portions of ourselves.

Speaker Change: The loan facilities, we entered into in 2023.

Speaker Change: Okay.

Speaker Change: Now, let me come back to the outlook for full year 2024.

Anticipate continued positive momentum in the second half of the year with expectations for increased sales revenue use compared to the first half of the year the.

Speaker Change: The company remains on track to be adjusted EBITDA positive.

Speaker Change: For the full year reinforcing its position as a leader in the ultra fast charging market on those revenue levels, which will be the highest in the company's history. We are expecting positive EBITDA for the year.

Wolfgang: For 2024 and beyond, with at least doubling our revenues, we anticipate substantial growth driven by a very strong customer dynamics and market trends.

Speaker Change: For 2024 and beyond with at least doubling our revenues, we anticipate substantial growth driven by a very strong customer demand dynamics and market trends.

Wolfgang: Let me summarize the key takeaways from our presentation. First, ADS-Tec Energy technology best in class. We haven't stored more than two and a half thousand battery bar based DCFC charging points and charging points and delivered. Charge boss and charge post have been proven by real operating data from our clients. Exceeding customer expectations at very high utilization that is at the sides where we have our installed base technology, not to forget, has been developed for more than a decade. Secondly, fulfillment and growth. We have achieved a target of more than 100 million in 2023 in terms of revenues.

Speaker Change: Let me summarize the key takeaways from our presentation.

Speaker Change: First areas to take.

Energy technology best in class, we have installed more than two and a half thousand battery box based.

Speaker Change: CFC charging points and chartering ships.

Speaker Change: Chat box and charge post has been proven by real operating data from our clients.

Speaker Change: Exceeding customer expectations at very high utilization levels at the sites, where we have our installed base.

Speaker Change: And our technology not to forget.

Speaker Change: Debello for more than a decade.

Speaker Change: Secondly, fulfillment grows.

Speaker Change: We have achieved a target of more than $100 million in 2023 in terms of revenues our revenues in the first half of this year are exceeding 17, 9 million, reflecting a growth of $107 million compared to last year.

Wolfgang: Our revenues in the first half of this year are exceeding 79 million, reflecting a growth of 107 million compared to last year. And we see a significant increasing number of blue chip clients. Thirdly, margin improvements adjusted with our positive in each one of this year. We expect to be with the positive for the whole of this fiscal year 2024. We see incremental margin improvements by adding high added value for our clients. Service revenue growth started in following our platform strategy.

And we see a significant increase in number of blue chip clients.

Speaker Change: Thirdly margin improvements adjusted EBITDA positive in each one of this year, we expect to be EBITDA positive for the whole of this fiscal year 2024, we see incremental margin improvements by adding high added value for our clients.

Speaker Change: Service revenue growth started in following our present our platform strategy.

Operator: With that, thank you very much, and I return to Dennis. Yeah, thank you, Thomas. Thank you.

Speaker Change: With that thank you very much and a return to Dennis.

Speaker Change: Yes.

Operator: Looking now in time for our human aid session. Currently, there are no incoming questions in the chat. I would say we're waiting some seconds. If you will have further more questions, sending please via the web chat.

Dennis: Yes sure.

Dennis: Thomas Thank you Wolfgang.

Speaker Change: Now it's time for our Q&A session.

Speaker Change: Currently there are no incoming questions and the chips.

Speaker Change: I would say we are waiting some seconds.

Speaker Change: If you will F. Furthermore question, sending please via the web chat.

Thomas Spider: But one question maybe for Thomas. What will be the biggest challenge for 80th sake in the competition out there in the next one or two days and two years? I tried to point out we're in the middle of this huge transformation, and that is something which is, I would say, it's once in a century. We will see this happy-day period for maybe some more months or years, but then it will be very, very clear that the future will be based on decentralized energy, also on the renewable side as well as on the consumption side, and so we need flexibility.

Speaker Change: But one question maybe for Tom is what will be the biggest challenge for a second the competition, let's say in the next one or two days two years.

Tom: And I try to point out we are in the middle of this huge transformation and there is something which is I would say, it's one once in a century.

Speaker Change: <unk>.

Speaker Change: We will see these hasidean period for maybe some more months of the year, but then it will be very very clear.

Speaker Change: The future will be.

Based on decentralized.

Speaker Change: Energy also on the.

Speaker Change: Great.

Speaker Change: The renewable side as well as on.

Operator: I also want to emphasize again that the immobility will come; there is no doubt, and then I expect that the politics will be more clear because, without any doubt, that this is the future. We may take down the hurdles and the investments in many things in parallel, and that will be an acceleration for our business and also the business of all our competitors and everybody who is in that market. But politics and regulations, and to answer your question, will play a big role. Thank you very much. Now there are coming questions in. A lot of questions.

Speaker Change: The consumption side and so we need flexibility also.

Speaker Change: I want to emphasize again that the E mobility.

Speaker Change: One there is no doubt and then I expect that the politics will be more clearer because of it.

Speaker Change: Without any doubt that this is the future we may.

Speaker Change: We may take down.

Speaker Change: The hurdles and the investments in many things in parallel that will be an acceleration for our business and also the business of all our competitors and everybody who is in that market.

Speaker Change: But politics and regulations and to answer your question, we will play a big growth.

Speaker Change: Thank you very much now theyre coming crest, and then a lot of questions. Thank you for that.

Operator: Thank you for that.

Wolfgang: Next question. What percentage of revenue in the first half of the year came from Germany, and how will that change in the second half, maybe working? As I said in my presentation, the majority of our revenue comes from the first half of the year. Strong customer base here accounted approximately for three quarters of our revenue in the first half of the year. Thank you.

Next question what percentage of revenue in the first half of the year came from Germany, and how will that change in the second half maybe working.

Speaker Change: And so as I said in my.

Presentation, the majority of our revenue comes.

Strong customer base here accounted approximately three quarters of our revenue in the first half of the year.

Wolfgang: Next question. Could you describe your capacity to fulfill the month growth next two to three years? I guess we have pointed out that last time, maybe we should have implemented in this presentation again. So first of all, the production capacity in our factory in Grayskin is high. Now we can produce 5,000 systems, 10,000 dispenses a year. This is not the amount we can sell today, unfortunately, so we have spare capacity here. I would say for the next one or two years, which has been the question at least, and we have prepared in North America to logistics within, let's say, one or one and a half year. We pointed that out during the last presentation, and that's still, I would say, we are fully set for what we can expect over the next years.

Speaker Change: Thank you next question could you describe your capacity to fulfill demand <unk> next two to three years.

Speaker Change: I guess, we have we have pointed out that last time, maybe we should have implemented in this presentation again, so first of all the production capacity in our factory in Greece.

Speaker Change: Yes.

Speaker Change: Hi, now we can produce 5000 systems.

Speaker Change: <unk> is a year this is not the <unk>.

Speaker Change: Mt. We can sell today. Unfortunately, so we have spare capacity I would say for the next one or two years, which has been the question at least and we are prepared in North America too.

Speaker Change: Logistics within let's say, one on one and a half year, we pointed that out during the last presentations and it's still I would say we are fully set for what we can expect over the next years.

Wolfgang: Thank you very much.

Wolfgang: Thomas, next question. How does ADS take expect to finance growth? I think that's maybe for me. First of all, you have seen that also if you take our cash flow statement then. as a public company. We use the capital markets with a private placement to invest. We exercise, which gave us additional flexibility in financing to take back the shell loans. For those of you who follow the company, we've also entered into new shell loan facilities again a few days and weeks ago, which is also public information. So you can see that out. We are seeing continuous support of our shareholders and, of course, we are looking forward to making the company thinkable because we, as a start of scale-up business, right now we have to work on our bank rating, which we actively do, so that we then can also leverage not only equity finance our business.

Speaker Change: Thank you very much Thomas next question Paul.

Does <unk> expect to finance growth.

Speaker Change: I think thats, maybe for maybe for me first of all you've seen that also if you take our cash flow statement that.

Speaker Change: As a public company.

Speaker Change: We use the capital markets to with a private placement.

Speaker Change: Yeah.

Hey, Shlomo.

Shlomo: The Norwegian invest.

Shlomo: Were exercised which gave us additional flexibility in financing to pay back the shareholder loans for those of you who follow the company.

Speaker Change: We also entered into new shareholder loan facilities.

Speaker Change: Again, a few days and weeks ago, which is also public information. So you can see that we are seeing continuous.

Support of our shareholders and of course, we are looking forward to.

Taking the company.

Speaker Change: <unk> is a startup scaleup.

Speaker Change: <unk> business right now we all have to work on our bank rating, which we actively do so that we then can also leverage not only equity financed our business. So going forward. The first step as a startup scale that will be going with shareholder support existing shareholders onboard secondly, going to the capital markets and bank number three.

Wolfgang: So going forward, the first step as a start of scale-up will be going with shareholders of board existing shareholders of board. Secondly, going to the capital market and bank numbers. We as the company ensures setting up the credit side of the balance sheet with the equity and the end of course. Thank you very much.

Speaker Change: As the company's insurers to setting up the <unk>.

Speaker Change: The credit side of the balance sheet towards the equity and debt of course.

Thomas Spider: Maybe another question for Thomas. Can we get an update on your business development efforts in the US market, or maybe what will be there the next step? We still are convinced that North America will be a huge market, so even as well as I said so far it might be a little bit Europe ahead, but the US and also North America are totally such a huge huge area that we believe will be a strong market. We are started in France which is private charging but also now at the OEMs we have deployed the first units to another OEM which is Ford.

Speaker Change: Yeah. Thank you very much maybe another question for Thomas can we get an update on your business development efforts in the U S market or maybe about there'll be there the next steps.

Speaker Change: Hmm.

Speaker Change: We still are convinced that North America will be a huge market. So even as weapons that so far it might be a little bit.

Speaker Change: And Europe ahead, but.

Speaker Change: The U S and also in North America in total is such a huge huge.

Speaker Change: Area that we believe it will be a strong market. We have started in the U S.

Speaker Change: We have seen our project in Marina palms, which is private charging but also now.

Oems we have deployed the first units to another OEM, which is what we.

Thomas Spider: We have started the direct sales, but we also do it in a very solid and careful way. We have seen others who, from our perspective, have invested very early also in building America and made in America, which we are prepared to do, but we need to see the market to really catch up on ramp up. We are working on some specific projects also with numbers which would allow us to do so, and so it's kind of being there working on all of the opportunities, preferring the made in America structure, but stepping into that and also doing the final investment, which are pretty high. This will be done in which day that several times if the business is upholding to then the production we will set up, and so it's a step by step approach which we have always said, and that's still the same strategy.

Speaker Change: <unk>.

Speaker Change: <unk> started the direct sales, but we also do it on a very.

Speaker Change: <unk> solid and careful way, we have seen others.

Speaker Change: From our perspective have invested very early also in building American made in America, which we are prepared to do but we need to see the market to really.

Speaker Change: Catch up and ramp up we are working on some specific projects also with numbers, which would allow us to do so and so it's kind of being being there.

Speaker Change: All of the opportunities preparing the made in America structure, but stepping into that and also doing defining ore.

Speaker Change: Vestments, which are pretty high this will be done we extended several times.

Speaker Change: The business is according to.

Speaker Change: Then the protection, we will set up and so it's a step by step approach, which we have always said and that's still the same strategy.

Thomas Spider: Thank you very much, Thomas.

Wolfgang: I'm not a question for Wolfgang. I guess finance expense was very high in H1 here, one where there's some one items items in that. How should we think about interest expense on a normalized space? Very good question. So this is why I also tend to work more for communication purposes of operating expense, operating income, or EBITDA. The finance expense which you see in the first half of the year is driven by the fair value valuation of the balance we have issued to our warrant holders. And when the stock price does what it thankfully did in the last six months, is when the stock price increases, the welfare value of the warrant increases as well.

Speaker Change: Thank you very much Thomas.

Speaker Change: Other question for Wolfgang.

Speaker Change: Finance expense was very high in age from tier one where there are some one items items and debt how should we think about interest expense on a normalized basis.

Speaker Change: Yeah.

Wolfgang: Good question. So this is why I also.

Speaker Change: Two.

Speaker Change: We drove more for communication purposes was operating expense.

Speaker Change: <unk> income or EBITDA, the finance expense, which we've seen in the first half of the year are driven by the fair value.

Speaker Change #100: Valuation of the borrowings we have issued two to bondholders and when the stock price does moderate thankfully did in the last six months is when the stock price increases the fair value of the bonds increases as well.

Wolfgang: And the counter entry in accounting logically is finance expense, which we have to show there. So it's not an interest expense. It's a non-cash item. If you go to our cash flow statement, it is simply driven by the fair valuation of the balance which we have outstanding, the share in the range public balance of around 11 million and another 5 million of private boards. Thank you very much, Wolfgang.

Speaker Change #100: The counter entry and accounting logically as finance expense, which we have to show that so it's not an interest expense. It's a noncash item. If you go through our cash flow statement is simply driven by the fair valuation of the warrants with which we have outstanding in the range public bonds of around $11 million and another five.

Speaker Change #100: Million of private for us.

Thomas Spider: Next question, I think that's what Thomas. How do you intend to mitigate against an increasingly volatile EV market, in particular in Germany, impacting ADS tax business? And how do you intend to ensure the outline further close to ADS? Yeah, I guess that that exactly comes to the core of our business strategy. So, as I said, we are not selling charges. And so it's not a charging component. You can also charge. And if you look at the big picture, then it is flexibility. And as I try to explain, even if no car will show up, we will integrate and implement more and more business cases such as trading, such as teaching, such as solar integration.

Speaker Change #101: Thank you very much both gain.

Speaker Change #101: Next question I think Thats for Thomas.

Speaker Change #102: How do you intend to mitigate against an increasingly volatile EV market in particular in Germany impacting <unk> business and how do you intend to ensure the outline for the cross asset.

Speaker Change #103: Yeah, I get that exactly comes to the core of our business strategy.

Speaker Change #104: That said, we are not selling charges.

Speaker Change #104: And so it's not a charging component you can also charge.

Speaker Change #104: And if you look at the big picture than it is the flexibility and as I tried to explain even if no car will show up.

Speaker Change #105: We will integrate and implement.

Speaker Change #105: More and more business cases, such as trading such as peak shaving such as solar integration.

Thomas Spider: And that gives a little bit of independency from the charging business, but nevertheless, I guess all of us we expect that the EV fleets are going up. But I always said, and I did that over the last three years, that's just relying on charging and the utilization of charging and selling electrons on a level which finances the whole infrastructure and business may not be. May not be the only opportunity. And this is, I guess, something we have to consider and see if there are more revenue streams paying into one investment. This is interesting. And that's something where our customers can mitigate the risk.

Debt.

It's a little bit of independency from the trucking business, but nevertheless, I guess all of US we expect that the fleets are going up but I always said and I did that over the last three years that just relying on charging in the utilization of charging and selling electrons.

Level, which.

Speaker Change #105: Finances, the whole infrastructure and business may not be.

Speaker Change #106: It may not be the only opportunity and this is I guess is something we have to consider and see if there are more revenue streams paying into one investment. This is interesting in that.

Thomas Spider: So it's not about us. It's more that we are helping investors and infrastructure operators to mitigate their risks just coming from utilization of EV charging. Rather than adding other revenue streams. Thank you very much, Thomas.

Speaker Change #106: It's something where our customers can mitigate the risks so it's not about us. It's more that we are helping investors in infrastructure operators to mitigate their risk since coming from utilization of EV charging rack.

Speaker Change #106: Rather than adding other revenue streams.

Wolfgang: Boothking, I guess that's about you. Could you expand on the decrease in SG&A year over year and your expectations for that going forward? So when I see practically we haven't decreased, we have relatively decreased the deep increased SDNA and what I said before for the current setup for the company is well equipped and the efficiency in those areas which is setting their own admin is improving. But we talked about expansion in the US, we talked about expansion in service, we talk about expansion in especially now sales force both in North America and in Europe and the European countries as well. So we can expect an increase, but the increase will be significantly under the growth trajectory of our revenue growth. So it's definitely growing, but as I said, what he said we doubled our revenue was more than doubled the revenues in H1 and the SDNA increased was around 11-12%. And this is something I would also model into going forward.

Speaker Change #107: Thank you very much to us.

<unk> I guess that's for you.

Speaker Change #107: Could you expand on the decrease in SG&A year over year and your expectations for that going forward.

Speaker Change #108: So when I say frankly, we haven't decreased the relatively decrease the decrease.

Speaker Change #108: And what I said before the current.

Speaker Change #109: Setup the company is well equipped and the efficiency in those areas such as selling general and admin.

Speaker Change #110: Improving but he talked about extension the U S. We talked about expansion in service, we talk about expansion.

And especially in our sales force both in North America, and Europe in the European countries as well. So we can expect an increase but the increase will be cigna.

Speaker Change #110: Significantly under the growth trajectory of our revenue.

Speaker Change #111: Growth, so it's definitely growing but as I said, what he said we doubled our revenue was more than double the revenues in H, one empty SG&A increase was around 11%, 12% and this is <unk>.

Wolfgang: Thank you very much, Wolf King.

Speaker Change #111: Something I would also model into going forward.

Thomas Spider: Another question, I guess, for Thomas: can you give some more outlook and guidance concerning your energy storage business that needs to see in our business, I guess. What are the updates on the expansion towards the residential segments? I guess we already talked about that beginning of the year, but I want to say that again and explain. So, the first of all, the residential market has basically been taken over by products coming from far east. We see that the deployment we have now more than a million battery both systems in the residential area. We know that from the Battery Storage Association these numbers are public, and we have decided that it makes no sense for us to go into that residential market.

Speaker Change #111: Thank you very much working.

Speaker Change #112: Another question I guess for Thomas.

Speaker Change #113: Can you give some more outlook and guidance concerning your energy storage business that needs. The C&I business I guess, what are the updates on the expansion towards the residential segment.

Speaker Change #112: Yes.

Thomas Spider: I guess, we already talked about at the beginning of the year, but I want to.

Speaker Change #114: Say that.

Speaker Change #114: Again and explain so the.

Speaker Change #115: First of all the residential the residential market has basically been taken over by products coming from from far East.

Speaker Change #115: We see that the deployment, we have now more than $1 million.

Speaker Change #115: Battery.

Speaker Change #115: The systems in the residential area, we know that from the battery storage Association. These numbers are public and we have decided that it makes no sense for us to go into that residential market, we rather want to keep the flexibility strategy as explained and therefore, we see now over the last years the site.

Thomas Spider: We rather want to keep the flexibility strategy as explained, and therefore we see now over the last years the site has changed, so it's from the investment and also from the impact much better to have higher power and higher capacities. And so we have the fully combined with Elmi Knife with the Torxus, which is charge-post charge box, and then we stick to the CNI business. Yes, we have been over the last years more focused on charging because that was the biggest project in our company, and now we are also increasing the efforts in CNI, which means flexibility, which does not integrate the charging in one product, but it will be a battery buffer system within, in word about all the software and the services again comes from ADS tech.

Speaker Change #115: This change so it's from the investment and also from this business.

Speaker Change #115: In fact, much better to have higher power and how higher capacities and so.

We haven't fully combined Swiss army knife with the charges, which as Charles post charge box and then we stick to the C&I business. Yes, we have been over the last year is more focused on torturing because that was the biggest project in our in our company and now we are.

Speaker Change #115: We.

Speaker Change #115: Also increasing the efforts in C&I, which means.

Speaker Change #116: <unk> ability, which does not integrating the charging in one product, but it will be a battery buffered system with the new inverter, but all the software and the services again comes from <unk> <unk>.

Thomas Spider: If you look at our references, you see over the last more than 10 years now we have many hundred megawatt hours of CNI charge battery systems out in the field, up and running, and we plan to increase that now in the next level. We are working here as well on new technology so that we can also, you know, be on the competitive competitive side of the business because we all know that this is under a great pressure also in the market. So we must be careful that we are not dropping into the naked component business, which, as I said, is always a difficult place to be and that's not our talk. Thank you, Thomas.

Speaker Change #116: Look at our references you'll see over the last.

Speaker Change #116: More than 10 years now we have 100 megawatt hours of.

Speaker Change #116: C&I charge offs.

Speaker Change #116: Battery systems out in the field up and running and we plan to increase that now in the next level and we are working here as well on new technology. So that we can.

Speaker Change #117: Also you know beyond the competitive the competitive side of the business because we all know that this is under a great pressure also in the market. So we must be careful that we're not dropping into the <unk>.

<unk> component business, which as I said as always.

Speaker Change #117: This is a good place to be and that's not our target.

Wolfgang: Then, with respect to the timing, I would propose the last question for Wolfgang. How about your cash needs in the next two years? Will you need further investments, flash capital? Do you expect the need for a capital increase? That's a very good question. We discussed about the expansion in the United States, which is very clear if we want to go into the United States with our own production to cope with Bi-America, Build America. We definitely need to look for further financing because that's, of course, something which we cannot finance out of our operational cash flow.

Charles: Thank you Charles.

Speaker Change #119: Then with respect to the timing of the proposed last question for Wolfgang our molecule cash needs in the next two years when you need further investments slash capital do you expect the need for a capital increase.

Wolfgang: That's a very good question, we discussed about the expansion in the United States, which is very clear if we want to go into the United States with our own production to cope with the buy America build America, we definitely need to look for further financing because that's of course something which.

Wolfgang: On the other side, if we take just the ongoing business, so the charging business as it stands today, if you take a look into our cash flow statement, you will see that we are approaching the break-even cash flow line and operating cash flows. This is something which we finance out of our operating cash flow, but the expansion of the business would need further financing measures. As I said before, currently, we are supported by existing shareholders and that we will not exclude that we will also look for additional funding in the future, whether it's equity or whether it's also credits.

Wolfgang: We cannot finance out of our.

Wolfgang: <unk> cash flow on the other side, if we take just the ongoing business. So the charging business as it stands today.

Speaker Change #120: If you take a look into our cash flow statement, you will see that we approaching breakeven.

Speaker Change #121: Cash flow line and operating cash flows. So this is something which we financed out of operating cash flow, but the expansion of the business would need further financing measures and as I said before currently we are.

Speaker Change #121: Sorted by existing shareholders.

Speaker Change #121: We will not exclude that we will also look for additional funding in the future, whether it's equity or whether it's OXXO credits.

Operator: Thank you very much, Wolfgang.

Operator: Thank you, Thomas. Thank you to the audience for your time and attention. As I mentioned in the beginning, you will be able to download the presentation on the company's website after this event.

Speaker Change #122: Thank you very much Wolfgang Thank you Thomas Thank you to the audience for your time and attention as I mentioned in the beginning you will be able to download the presentation.

Operator: That's it from my side. Thank you very much for attending and listening.

Speaker Change #122: The company's web site after the event.

Speaker Change #123: That's it from my side.

Speaker Change #123: Thank you very much for attending and listening.

Speaker Change #123: Okay.