Kempower Oy · OMXHEX:KEMPOWR
Kempower Oy — Q4 2021 Earnings Presentation
30 slides from Kempower Oy's earnings presentation, Feb 16, 2022
Slide 1: Kempower
KEMPOWER
Slide 2: Today's presenters
@KEMPOWER Today's presenters Tomi Ristimaki Jukka Kainulainen Chief Executive Officer Chief Financial Officer
Slide 3: Agenda
Agenda 01 Key highlights Q42021 2021 key Q&A and and takeaways, growth strategy = FY2021 financial short term execution performance outlook and risks @ KEMPOWER
Slide 4: Kempower in brief
@KEMPOWER KEMPOWER IN BRIEF Kempower: Rapidly growing Europ’ vehicle (“EV") fast cha ‘olutions provider Aim: “To be the best partner for our customers in Founded: 2017 developing emission free business” + Kempower solutions delivering almost 80 MWh charging power to end customers on daily basis * 2
Slide 5: 2021 key highlights
2021 key highlights Historical Nasdaq Helsinki First North listing Growing existing and new customer base in Nordics and in Europe Capacity expansion project to additional 10 300m2 floorspace progressing well Component shortage managed well -no lost customer deliveries Reaching 99% lifetime recyclab
Slide 6: Growth enabled by our Go-to-Market Strategy
Growth enabled by our Go-to-Market Strategy 13 in the European market in the short to medium term —— _— v 2. Target of by the end of 2025 = ai is on each Kempower in each of its geographic markets separately — 4. additional personnel, especially within R&D, production, marketing, sales and after sal
Slide 7: Kempower targeting EUR 4.0 billion market
@KEMPOWER Kempower targeting EUR 4.0 billion market = DC charging CAGR DC charging market split by segment 2020 & 2030 (EURm)”” 2,492 17.3%) 504 127 378 2020 2030E (0) Private Vehicle [J Commercial Vehicle [J Off-highway a DC charging market split by segment 2020 & 2030 (EURm)" 1,441 200 26.8%) 729
Slide 8: Kempower customer groups
Kempower customer groups Retail chains _ Parking spaces by, eg. [Pl department & grocery stores, hotels, restaurants etc. (©. Device manufacturer and Q system supplier Charge point operators (“CPOs”) (PIL Publicly available charging “3 nework -©- Device manufacturer Source: Company information Origi
Slide 9: Several bluechip credentials in all customer groups
@KEMPOWER Several bluechip credentials in all customer groups Distributor and CPOs and retail chains Bus and truck operators OEMs ina cnblae MECULECRE * S Group * Nobina * Normet . omen * Recharge Infra » VY buss * Epiroc + Vital EV Solutions * Osprey Charging * Koiviston Auto . raced : + Wennstrom
Slide 10: Growing organization driving the growth
@KEMPOWER Growing organization driving the growth 160 140 120 100 Headcount, at the end of year Headcount by functions, at the end of 2021 136 38 : [ 2019 2020 2021 = Admin = Operations = Sales and marketing ®& R&D 10
Slide 11: Scalable and flexible business model with limited capital expenditure needs
Scalable and flexible business model with eae limited capital expenditure needs 1. The capacity expansion from 500m2 to 2800m2 in the beginning of 2021 took four (4) months. 2. The capacity expansion to additional 10 300m2 floorspace is progressing according to plan 3. Asset light business model ena
Slide 12: State of the art backend system ChargEye
State of the art backend system @KEMPOWER ChargEye™ - a key differentiator ChargEye is an embedded control and monitoring software that provides features such as remote management and analysis, authentication and connectivity Cloud-based backend software ChargEye made its break through and became cr
Slide 13: Kempower's dynamic charging - unique solution in DC charging
Kempower’s dynamic charging @KEMPOWER - unique solution in DC charging — ! Dynamic power sharing enables more charging power for vehicles in need, generating less idle power Approximately 70 percent of Kempower's | — | — | current commercial vehicle / fleet operator Te customers mention dynamic char
Slide 14: Commitment to sustainability
Commitment to sustainability @KEMPOWER -reaching total carbon neutrality by 2035 Decreasing relative carbon footprint annually > 99% 100% Carbon biscYetantuey vats een commen Transferring to 100% fossil free electricity by for T-series chargers 2035 Carbon compensation of business travel 0% landfill
Slide 15: Agenda
Agenda 02 {03 Key highlights Q42021 2021 key Q&A and and takeaways, growth strategy FY2021 financial }) short term execution performance outlook and risks @KEMPOWER 15
Slide 16: Strong growth, strong order intake and successful IPO enabling the growth
Strong growth, strong order intake and @KEMPOWER successful IPO enabling the growth * In 2021 revenue + In Q4 2021 order + In Q4 2021 EBIT * IPO Gross grew 741% intake EUR 11.5 EUR -1.0 million Proceeds EUR million 100.1 million * In Q4 2021 revenue + In 2021 loss for the grew 328% to EUR period EUR
Slide 17: Nordics and rest of Europe driving revenue growth
Nordics and rest of Europe driving revenue growth Revenue breakdown by geography m€ @KEMPOWER Comments 30.0 25.0 20.0 15.0 10.0 @Nordics mRest of Europe Rest of world 2021 * Nordics represents currently the largest end-market for Kempower but rest of Europe share is increasing * In Q4 2021 revenue g
Slide 18: Strong order intake in Q4 and full year
Strong order intake in Q4 and full year @KEMPOWER Comments Order intake m€ * Order intake growth driven aa: mainly by Nordics and also = rest of Europe + In 2021 order intake grew = 427% to EUR 37.4 million. + At the end of the 2021 Order backlog m€ order backlog grew to EUR 13.7 million. ic)
Slide 19: Healthy gross profit and positive operating cash flow in Q4
Healthy gross profit and positive operating @KEMPOWER cash flow in Q4 Gross Profit m€, % * In 2021 Gross Profit on healthy 46% level + In 2021 growth strategy execution is reflected in ( operating cash flow 0.0 /94% 0.2 /69% (8/58 2018 2019 2020 2021 + In Q4 2021 operating cash flow EUR +2.9 million
Slide 20: From IPO Gross Proceeds to Net Proceeds
From IPO Gross Proceeds to Net Proceeds EUR 100.1 million Gross Proceeds from IPO Loan and capital loan repayment to Kemppi Group Oy worth of EUR 8.0 million IPO fees paid to advisors EUR 6.0 million Cash and cash equivalents EUR 90.4 million at 31st of December 2021 Net Debt EUR -90.4 million at 31
Slide 21: Financial targets
@KEMPOWER Financial targets 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 margin” in the long term Dividend policy Dividend * Short to medium term: No divi
Slide 22: Agenda
Agenda Key highlights and growth strategy execution 03 Q42021 2021 key Q&A and takeaways, FY2021 financial short term performance outlook and risks @KEMPOWER
Slide 23: Short-term outlook and 2022 risks
@KEMPOWER Short-term outlook and 2022 risks + Kempower expects favourable market development and demand for its products Shorter * Kempower expects seasonality to affect revenue on the first and on the fourth quarter Outlook + Expansion in Europe continues + Kempower explore alternatives for expansi
Slide 24: 2021 key takeaways
2021 key takeaways +» KEMPOWER EUR million annual revenue managed without lost deliveries Year-on-year revenue growth project to 2,800m2
Slide 25: Financial Calendar 2022
@KEMPOWER February Week May August Financial Calendar 2022 FY 2021 Financial FY 2021 Annual Business Review Half-year financial Statements Report January-March report (Q1) January-June (H1) November April Annual General Meeting is planned for Wednesday 13" of April 2022. The Board of Directors will
Slide 26: Kempower
OKEMPOWER
Slide 27: Appendix
@KEMPOWER APPENDIX
Slide 28: Profitability: Group P&L
PROFITABILITY Group P&L EURM, FAS 07-12/2020 Growth % FY 2021 FY 2020 Growth % Revenue 25 633% 274 33 741% Other operating income 00 03 on ‘Change in invertories of finished goods and in work in progress on 07 oz Raw materials and consumables wee a2 229 External services, 00 as Perrornel expenses 13
Slide 29: Balance sheet
Balance sheet Group Balance Sheet @KEMPOWER EURm, FAS 12-2020 EURm, FAS 12-2020 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Intangible assets 02 Shae capa) 00 Tangibk angie assets = Translation differences 0.0 Non-current assets total 07 Invested Unrestricted equity fund 0.0 Ciruataswals
Slide 30: Investments in tangible and intangible assets
Investments in tangible and intangible assets ®KEMPowER increasing Comments * Increase in investments mainly driven by investments into assembly lines, office, testing area and laboratory and production equipment * During the 2021, cash flow from investing activities [=] represented 6% of revenue 20