Slide 1: Kempower Half Year 2024 Financial Result
Kempower Half Year 2024 Financial Result
Slide 2: Q2 2024: Weak second quarter
Q2 2024: Weak second quarter Tomi Ristimäki Jukka Kainulainen Chief Executive Officer Chief Financial Officer
Slide 3: Current situation
Current situation Poor financial performance – Poor financial performance in the first half of the year due to continued high inventory levels not able to close orders from new Q2 2024 Key Figures customers as expected . 57.1 54.1 High inventory levels – High inventory levels on our customers side p
Slide 4: High inventory levels
High inventory levels • Component shortage after COVID-19 led to abnormally high demand for DC charging equipment. • The abnormally high ordering is visible on our ordering data as the negative difference between the orders from our largest clients in H1 2024 vs. H1 2023 is approximately EUR 75 mill
Slide 5: Sales development
Sales development • We onboarded 17 new customers during Q2 2024 (32 during H1 2024) with high business potential. • Good progress with retail chain customers continued in Q2 2024. • Decrease in sales from existing large customers due to excess inventories. • We need to develop our customer support
Slide 6: Kempower to provide charging technology to K-Lataus
Kempower to provide charging technology to K-Lataus* for a nation wide EV charging network in Finland *part of Kesko
Slide 7: Partnership with Q8 and Storm in Belgium
Partnership with Q8 and Storm in Belgium - A good example of a fuel retailer entering EV charging market
Slide 8: Electrification of ports
Electrification of ports- delivering DC charging technology for a leading global port operator in the UK
Slide 9: Steady progress in North America
Steady progress in North America • Market entry is progressing and we are gaining foothold and good reputation in the market. • The customer acquisition has been good - 20% of the new customers during the quarter globally has come from North America, a nationwide US CPO customer as an example. • We
Slide 10: Market situation
Market situation • Data shows that the DC charging installations have grown 20% in 2024 in Europe, and 40% in North America, indicating the continued growth of DC charging industry. • Kempower’s market share of the charging point installations is on the • We expect the current market same level as i
Slide 11: EV registrations in H1 2024 – Growth in majority of countries
EV registrations in H1 2024 – Growth in majority of countries USA 595,000 +3.1% 577,000 Germany 184,125 -16.4% 220,244 United Kingdom 167,096 +9.2% 152,968 France 158,402 +14.9% 137,919 Belgium 64,404 +47.8% 43,578 Netherlands 60,338 +4.1% 57,940 Norway 52,018 -5.9% 55,275 Sweden 41,998 -19.9% 52,44
Slide 12: Profitability improvement
Profitability improvement • The decrease in revenue has also negative effect on Kempower’s profitability. • Kempower accelerates actions to improve the company's profitability and, as part of such actions, initiates change negotiations. • The target is to achieve EUR 10 million in cost savings annua
Slide 13: Progress of the next generation product portfolio
Progress of the next generation product portfolio • Ramping up the production of our next generation product portfolio has progressed well. • Production volumes of next generation product portfolio have risen steadily. • New technology will strengthen our position as the technological frontrunner an
Slide 14: Technological development
Technological development • We successfully launched Megawatt Charging System for electric trucks following the Megawatt Charging Standard (MCS) protocol in Europe. • First system delivered to Hedin Supercharge in Sweden. • Deliveries with the North American Charging Standard (NACS) connector starte
Slide 15: Modular, scalable, dynamic & user-friendly charging solutions
Modular, scalable, dynamic & user-friendly charging solutions for all charging applications Kempower ChargEye Kempower Dynamic power sharing Pantograph Up User-friendly Kempower Satellites Modular power source 1-12x 25kW increments Scalable charging: Kempower Power Unit
Slide 16: Sustainability
Sustainability • We have conducted pre- assurance process of our sustainability report to prepare for the upcoming CSRD regulation to identify development points in our reporting. • We have also started work to improve our EU taxonomy reporting. • Average daily charging power delivered to electric v
Slide 17: Short-term focus
Short-term focus • Kempower is taking decisive actions: • Increased focus in better developing the customer relationships with new customers for faster sales execution. • Significant short-term and mid-term cost base adjustments to improve profitability and cash flow. • Improve net working capital a
Slide 18: Financial Review
es Financial Pewering Planet Cool.
Slide 19: Key figures
Key figures during the review period, IFRS EUR million Q2 2024 Q2 2023 H1 2024 H1 2023 2023 Comments Order backlog 101.0 138.5 101.0 138.5 110.6 • Q2 2024 Key figures impacted by Order intake 54.1 86.3 99.0 147.7 275.3 not succeeding in closing orders as Revenue 57.1 72.5 99.7 128.2 283.6 expected,
Slide 20: Q2 2024 order intake was disappointment
Q2 2024 order intake was disappointment Order intake (EUR million) Comments +32% Q4 • Order intake during the Q3 quarter EUR 54.1 million (EUR 275.3 Q2 86.3 million) and the first Q1 half of the year EUR 99.0 +459% 66.7 million (EUR 147.7 million) 208.9 has been negatively affected by customers’ hig
Slide 21: Q2 2024 revenue decreased
Q2 2024 revenue decreased Revenue by geographical area (EUR million) Comments +174% 283.6 11.3 • The decrease in revenue both for the 14.0 second quarter EUR 57.1 million (EUR 72.5 million) and first half EUR 99.7 million (EUR 128.2 million) are mainly explained by high inventory levels of our custo
Slide 22: Profitability and cash flow development
Profitability and cash flow development Operative EBIT (EUR million) Operating cash flow (EUR million) Comments 14.3% 39.7 40.7 • The operating loss resulted from lower revenue, the ramp up of next generation charging portfolio and the US operations and higher fixed cost base. • Operating cash flow
Slide 23: Cash Flow Statement waterfall Q2 2024
Cash Flow Statement waterfall Q2 2024(m€) Change in net cash position during Q2 2024 (EUR million) 84.0 -9.5 -2.0 -7.6 -0.6 -0.4 -6.9 58.9 -1.6 3.5 Q1 2024 EBIT Change in Changes Income Items Investments Lease Other items Q2 2024 Net cash* provisions in working taxes paid affecting in intangible pay
Slide 24: Kempower's new outlook for 2024
Kempower’s new outlook for 2024 DC charging market demand has been lower than Kempower has earlier anticipated. After COVID-19, there was a component shortage which created higher than normal demand for charging solutions. Also, charger rollouts have been slower than earlier anticipated due to limit
Slide 25: Profitability improvement
Profitability improvement • Kempower accelerates actions to improve the company's profitability and as part of such actions initiates change negotiations. • The target is to achieve EUR 10 million in cost savings annually compare to cost level at the end of second quarter 2024. The change negotiatio
Slide 26: Kempower's financial targets
Kempower’s financial targets Financial targets Revenue of EUR 750 million in the medium term Growth (years 2026-2028) Operative EBIT margin of 10 percent to 15 percent reached Profitability in the medium term (years 2026-2028) and operative EBIT margin of at least 15 percent in the long term Dividen
Slide 27: Q&A
Q&A