Kempower Oy · OMXHEX:KEMPOWR
Kempower Oy — FY2021 Earnings Presentation
30 slides from Kempower Oy's earnings presentation, Feb 16, 2022
Slide 1: Full-year and Q42021 results
Full-year and Q42021 results COMPANY PRESENTATION
Slide 2: Today’s presenters
Today’s presenters Tomi Ristimäki Jukka Kainulainen Chief Executive Officer Chief Financial Officer 2
Slide 3: Agenda
Agenda Key highlights Q42021 2021 key Q&A and and takeaways, growth strategy FY2021 financial short term execution performance outlook and risks 3
Slide 4: Kempower in brief
KEMPOWER IN BRIEF Aim: “To be the best partner for our customers in Kempower: Rapidly growing European electric Founded: 2017 developing emission free business” vehicle (“EV”) fast charging solutions provider • Kempower solutions delivering almost 80 MWh charging power to end customers on daily basi
Slide 5: 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 6: Growth enabled by our Go-to-Market Strategy
Growth enabled by our Go-to-Market Strategy 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 additi
Slide 7: Kempower customer groups
Kempower customer groups Original equipment manufacturers Bus and truck operators (“OEMs”) Charger location En-route & overnight Various locations Kempower desired charging positions Device manufacturer and Globally managed Device manufacturer component subcontractor Retail chains and system supplie
Slide 8: Several bluechip credentials in all customer groups
Several bluechip credentials in all customer groups 0 Distributor and CPOs and retail chains Bus and truck operators OEMs installer network • Normet • Omexom • S Group • Nobina • Epiroc • Vital EV Solutions • Recharge Infra • VY buss • Gilbarco • Wennstrom • Osprey Charging • Koiviston Auto Veeder-R
Slide 9: Growing organization driving the growth
Growing organization driving the growth Headcount, at the end of year Headcount by functions, at the end of 2021 160 140 136 120 14 38 100 80 47 60 38 37 40 20 17 5 0 2018 2019 2020 2021 Admin Operations Sales and marketing R&D 9
Slide 10: Scalable and flexible business model with limited capital expenditure needs
Scalable and flexible business model with 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 enables
Slide 11: State of the art backend system ChargEye™ - a key differentiator
State of the art backend system 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 critical to
Slide 12: Kempower’s dynamic charging - unique solution in DC charging
Kempower’s dynamic charging - unique solution in DC charging Approximately 70 percent of Kempower’s current commercial vehicle / fleet operator customers mention dynamic charging as a major purchasing reason Kempower’s dynamic charging optimizes the power usage and shortens queues which in important
Slide 13: 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 Transferring to 100% fossil free electricity by Recyclability rate neutrality by 2025 for T-series chargers 2035 Carbon compensation of busines
Slide 14: Agenda
Agenda Key highlights Q42021 2021 key Q&A and and takeaways, growth strategy FY2021 financial short term execution performance outlook and risks 14
Slide 15: Strong growth, strong order intake and successful IPO enabling the growth
Strong growth, strong order intake and successful IPO enabling the growth EUR 27.4 million EUR 37.4 million EUR 1.1 million EBIT EUR 90.4 million revenue in 2021 order intake in 2021 4% EBIT margin cash and cash in 2021 equivalents • In 2021 revenue • In Q4 2021 order • In Q4 2021 EBIT • IPO Gross g
Slide 16: Nordics and rest of Europe driving revenue growth
Nordics and rest of Europe driving revenue growth Revenue breakdown by geography m€ Comments • Nordics represents currently 30.0 the largest end-market for 0.2 Kempower but rest of 25.0 4.1 Europe share is increasing 20.0 • In Q4 2021 revenue grew 15.0 27.4 328% to EUR 8.4 million (EUR 23.1 2.0 mill
Slide 17: Strong order intake in Q4 and full year
Strong order intake in Q4 and full year Comments Order intake m€ 37.4 • Order intake growth driven Q4: mainly by Nordics and also 11.5 rest of Europe • In 2021 order intake grew 427% to EUR 37.4 million. 7.1 0.0 0.5 2018 2019 2020 2021 • At the end of the 2021 Order backlog m€ órder backlog grew to
Slide 18: Healthy gross profit and positive operating cash flow in Q4
Healthy gross profit and positive operating cash flow in Q4 Comments Gross Profit m€, % • In 2021 Gross Profit on 12.7/46% healthy 46% level • In 2021 growth strategy execution is reflected in operating cash flow 0.0 /94% 0.2 /69% 1.8 /54% 2018 2019 2020 2021 • In Q4 2021 operating cash flow EUR +2.
Slide 19: From IPO Gross Proceeds to Net Proceeds
From IPO Gross Proceeds to Net EUR million Proceeds 120.00 -8.0 100.00 -6.0 • EUR 100.1 million Gross Proceeds from IPO 80.00 • Loan and capital loan repayment to Kemppi Group Oy worth of EUR 8.0 million 60.00 100.1 • IPO fees paid to advisors EUR 6.0 40.00 90.4 million • Cash and cash equivalents E
Slide 20: Kempower targeting EUR 4.0 billion market
Kempower targeting EUR 4.0 billion market 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) 2,492 100 1,441 1,062 200 17.3% 26.8% 729 504 1,329 127 134 512 378 87 47 2020
Slide 21: Financial targets
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 margin1) in the long term Dividend policy Dividend • Short to medium term: No dividends
Slide 22: Agenda
Agenda Key highlights Q42021 2021 key Q&A and and takeaways, growth strategy FY2021 financial short term execution performance outlook and risks 22
Slide 23: Short-term outlook and 2022 risks
Short-term outlook and 2022 risks • Kempower expects favourable 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 24: 2021 key takeaways
2021 key takeaways EUR 27.4 million annual revenue First North Component shortage managed without lost deliveries Growth Market listing and +700% EUR 100.1 M Year-on-year revenue growth Gross Proceeds Capacity expansion project to 2,800m2 24
Slide 25: Financial Calendar
Week 12 February Week May August 16 12 18 11 Financial Calendar FY 2021 Annual 2022 FY 2021 Financial Statements Report Business Review January–March Half-year financial report (Q1) January–June (H1) November April Annual General Meeting is planned for Wednesday 13th of April 2022. 9 13 The Board of
Slide 26: Q&A
Q&A @KEMPOWER
Slide 27: Appendix
APPENDIX @KEMPOWER 27
Slide 28: Profitability: Group P&L
PROFITABILITY Group P&L Source: Company information 29
Slide 29: Balance sheet
Balance sheet Group Balance Sheet Source: Company information 30
Slide 30: Investments in tangible and intangible assets increasing
Investments in tangible and intangible assets increasing Comments • Increase in investments mainly driven by 1.6 investments into assembly lines, office, testing area and laboratory and production equipment • During the 2021, cash flow from investing activities 0.5 represented 6% of revenue 0.2 0.2