Kempower Oy · OMXHEX:KEMPOWR
Kempower Oy — Investor Presentation (April 2022)
32 slides from Kempower Oy's investor presentation, Apr 13, 2022
Slide 1: Kempower Investor Meeting
Kempower Investor Meeting 13 April 2022 COMPANY PRESENTATION
Slide 2: Agenda
Agenda Year 2021 Go-to-Market Value proposition FY2021 financial and production performance scale up 2
Slide 3: Disclaimer
DISCLAIMER IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Kempower Corporation (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the
Slide 4: Today's presenters
Today’s presenters Tomi Ristimäki Sanna Otava Mikko Veikkolainen Jukka Kainulainen Chief Executive Officer Chief Operating Officer Chief Technology Officer Chief Financial Officer
Slide 5: Towards electric world of transportation
TOWARDS ELECTRIC WORLD OF TRANSPORTATION Aim: “To be the best partner for our customers in • Kempower is rapidly growing European developing emission free business” electric vehicle (EV) fast charging solutions provider • Kempower focus is in fast and efficient DC (Direct Current) charging solutions
Slide 6: 2021 key highlights
2021 key highlights Historical Nasdaq Helsinki First 27.4 EURm North listing In revenue 2021 Growing existing and new 741% YoY growth in revenue 2021 customer base in Nordics and in Europe so 37.4 EURm Order intake in 2021 Capacity expansion project to additional 10 300m2 floorspace progressing well
Slide 7: Short-term outlook and 2022 risks
Short-term outlook and 2022 risks • Kempower expects favorable market development and demand for its products • Kempower expects seasonality to affect revenue on the first and on the fourth quarter Short-term Outlook • Expansion in Europe continues • Kempower explore alternatives for expansion into
Slide 8: Commitment to sustainability - reaching total carbon neutrality by 2035
Commitment to sustainability -reaching total carbon neutrality by 2035 Commitment Long-term target Decreasing relative carbon footprint annually 100% Carbon neutrality by Transferring to 100% fossil free electricity by 2025 Recyclability rate 2035 for T-series chargers Carbon compensation of busines
Slide 9: Ukraine
Ukraine • Kempower does not have customers or employees neither in Russia nor in Ukraine. • Kempower has no direct suppliers or production in Ukraine, Russia or Belarus. • Kempower have stopped business development regarding Russia market. • Delays in international logistics may cause a small risk t
Slide 10: Agenda
Agenda Year 2021 Go-to-Market Value proposition FY2021 financial and production performance scale up 10
Slide 11: European passenger car EV stock expected to grow to 150M by 2040
European passenger car EV stock expected to grow to 150M by 2040 Vehicle stock volume (millions) 400 315 11% 312 311 310 310 311 311 312 313 313 314 4% 315 315 315 315 316 316 316 316 316 316 300 1% 5% 41% 41% 14% 200 5% 28% 20% 100 57% 12% 38% 17% 0 2020A 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2
Slide 12: Targeting 4.0b€ rapidly growing markets
Targeting 4.0b€ rapidly growing markets DC charging CAGR Private Vehicle Commercial Vehicle Off-highway DC charging market split by segment 2020 & 2030 (EURm)1) DC charging market split by segment 2020 & 2030 (EURm)1) 2,5B€ 100 1,4B€ 1 062 200 17.3% 26.8% 729 504 1 329 127 134 512 378 87 47 2020 203
Slide 13: Go-to-Market Strategy is progressing
Go-to-Market Strategy is progressing 1. Continue expanding in the European market in the short to medium term 2. Target of establishing operations in the US by the end of 2025 3. Focus on each Kempower customer segment in each of its geographic markets separately 4. Continue to recruit additional pe
Slide 14: Several bluechip customers in all customer groups
Several bluechip customers in all customer groups 0 Distribution and CPOs and retail chains Fleet operators OEMs installation • Normet • Omexom • S Group • Nobina • Epiroc • Vital EV Solutions • Recharge Infra • VY buss • Gilbarco • Wennstrom • Osprey Charging • Koiviston Auto Veeder-Root • European
Slide 15: @KEMPOWER
@KEMPOWER
Slide 16: 100% Electric
100% ELECTRIC P™ ZERO EMISSIONS BUS
Slide 17: Agenda
Agenda Year 2021 Go-to-Market Value proposition FY2021 financial and production performance scale up 17
Slide 18: A scalable and modular charging system is future proof
A scalable and modular charging system is future proof
Slide 19: DC charging is much faster than AC charging
DC CHARGING IS MUCH FASTER THAN AC CHARGING 2–22 kW 50+ kW AC charger DC charger The charger in AC charging Battery <3.7 kW in vehicle Battery & the battery management system ! Kempower chargers are compatible with almost all electric vehicles Estimated charging time is Estimated charging time is se
Slide 20: Dynamic charging reduces idle capacity and shortens the queues
Dynamic charging reduces idle capacity and shortens the queues Charging system Competitor charging system
Slide 21: Kempower ChargEye Depot Master
Kempower ChargEye Depot Master Kempower ChargEye for bus & logistics operators home depots is a cloud-based SaaS solution specifically designed to optimise total cost of ownership (TCO). Kempower ChargEye Depot Master reduces CAPEX (Capital Expenditure) Modular hardware with intelligent power distri
Slide 22: ChargEye Depot Master Minimizes Charging OPEX
ChargEye Depot Master Minimizes Charging OPEX Minimizes grid connection tariffs with algorithmic Peak Power Shaving Reduces total energy consumption by just-in-time vehicle preconditioning and utilizing battery charging heat losses Minimizes energy cost by shifting charging to lower energy tariff ho
Slide 23: Scalable and flexible business model with limited capital expenditure needs
Scalable and flexible business model with limited capital expenditure needs Modular Secured Precise product Outsourced Asset light material flow Standardization / No local management product design from dual- Mass warehousing of Installation Business sourcing customization finalized products and mod
Slide 24: Targeted capacity increase via subcontracting and duplicating assembly lines
Targeted capacity increase via subcontracting and duplicating assembly lines Two-way scalable modular production Frames Electronics Modules Scaling (sub-contracting) (sub-contracting) (sub-contracting / in-house) through sub- contracting Domestic Line 1 Assembly 1 Assembly 2 Testing Final & packagin
Slide 25: Factories in Lahti with 10 300 m2 of new production space in 2022
factories in Lahti with 10 300 m2 of new production space in 2022 25
Slide 26: Agenda
Agenda Introduction to Go-to-Market Value proposition FY2021 financial Kempower and production performance scale up 26
Slide 27: Kempower has financially strong standing
Kempower has financially strong standing Growth Balance sheet and Profitability shareholders • EUR 27.4 million • EUR 1.1 million EBIT • EUR 90.4 million revenue in 2021 4% EBIT margin in cash and cash 2021 equivalents • EUR 37.4 million order intake in In 2021 loss for the • IPO Gross Proceeds 20
Slide 28: Nordics and rest of Europe driving revenue growth
Nordics and rest of Europe driving revenue growth Revenue breakdown by geography m€ Comments • Nordics currently the largest 30.0 geography for Kempower but 0.2 rest of Europe share is 25.0 4.1 increasing 20.0 • In 2021 revenue grew 741% 15.0 27.4 to EUR 27.4 million (EUR 3.3 23.1 million) 10.0 5.0
Slide 29: Healthy gross profit and negative cash flow in 2021
Healthy gross profit and negative cash flow in 2021 Comments Gross Profit m€, % • In 2021 Gross Profit on 12.7/46% healthy 46% level • In 2021 growth strategy execution was reflected in operating cash flow 0.0 /94% 0.2 /69% 1.8 /54% • In 2021 the global shortage of semiconductors Operating cash flow
Slide 30: Financial targets unchanged
Financial targets unchanged Financial targets • EUR 200m revenue in the medium term in Growth (4-6 years) • 10% operative EBIT margin reached in the medium Profitability term (4-6 years) and at least 15% operative EBIT margin1) in the long term Dividend policy Dividend • Short to medium term: No div
Slide 31: EVs become the norm
Aiming for an electric vehicle charging infrastructure that is both extensive and reliable, meaning that EVs become the norm
Slide 32: Kempower
OKEMPOWER