Kempower Oy · OMXHEX:KEMPOWR
Kempower Oy — Investor Day (April 2023)
79 slides from Kempower Oy's investor day presentation, Apr 20, 2023
Slide 1: KEMPOWER
KEMPOWER
Slide 2: Slide 2
Slide 3: Electric vehicle charging solutions for Everyone, Everywhere
Electric vehicle charging solutions for Everyone, Everywhere KEMPOWER Capital Markets Day 2023
Slide 4: Paula Savonen, Moderator
Paula Savonen Moderator
Slide 5: 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 6: Kempower Management Team
Kempower Management Team Tomi Ristimäki Chief Executive Officer Mikko Veikkolainen Jussi Vanhanen Tommi Liuska Sanna Otava Jukka Kainulainen Juha-Pekka Suomela Chief Technology Officer Chief Market Officer Chief Sales Officer Chief Operations Officer Chief Financial Officer Chief Service Business Of
Slide 7: Agenda
Agenda 1. Kempower story & Q1 2023 financial overview – Tomi Ristimäki & Jukka Kainulainen 2. Surging market and customer demand – Tomi Ristimäki & Jussi Vanhanen 3. Cutting edge DC charging technology – Jussi Vanhanen 4. Scalable delivery capability – Sanna Otava Break at 14:40 5. North America acc
Slide 8: Kempower story, Q1 2023 results and financial overview
1. Kempower story, Q1 2023 results and financial overview
Slide 9: Our vision is to create the world's most desired EV charging solutions
Our vision is to create the world’s most desired EV charging solutions for everyone, everywhere.
Slide 10: Kempower in brief
Kempower in brief Top player in Nordic DC charging markets and gaining the market share in the Rest of Europe. Two production sites in Lahti, Finland. Subsidiaries: Germany, The Netherlands, The UK, Sweden, Norway, France, Spain, Italy, Poland and USA. More than 30,000 shareholders. Listed in Nasdaq
Slide 11: Charging applications
Charging applications Private cars Commercial vehicles Off-highway vehicles
Slide 12: Wide customer reference base
Wide customer reference base Power Dot, Recharge, Mer, Osprey Charging, S-Group, Gilbarco Veeder-Root, FOR:EV, Allego, Virta, Einride, VINCI Autoroutes, eTerminal, Greenstation, Avia Weghorst, Neste, Vattenfall, Nobina, Vy Buss, Koiviston Auto, Keolis, Bergkvarabuss, Scania, Volvo, MINUSINES S.A., E
Slide 13: Modular, scalable, dynamic & user-friendly charging solutions
Modular, scalable, dynamic & user-friendly charging solutions Kempower ChargEye Dynamic power sharing User-friendly Kempower Satellites 25 – 400kW Modular power source 1-12x Scalable charging: Kempower Power Unit
Slide 14: We focus on DC fast charging
We focus on DC fast charging 2–22 kW AC charger Typically > 50 kW DC charger The charger in AC charging Kempower chargers are compatible with almost Cars´s own Car´s own all electric <3.7 kW charger charger Battery vehicles & car’s management system Estimated charging time Estimated charging time is
Slide 15: Q1 2023 Strong start of the year
Q1 2023 Strong start of the year 55.8 61.4 EUR million EUR million Revenue Order intake 385% 12% Revenue growth Operative EBIT year-on-year, % margin, % The availability of electronic components has improved from the previous year Revenue outside Nordics more than 60% of total revenue
Slide 16: Key figures
Key figures during the review period, IFRS EUR million Q1/2023 Q1/2022 2022 Comments Order backlog 124.4 29.1 118.9 • Record high Revenue and Gross profit Order intake 61.4 26.9 208.9 • Operative EBIT margin, % positive 12.4% in Revenue 55.8 11.5 103.6 Q1 mainly due to strong demand and Revenue grow
Slide 17: Q1 2023 revenue growth accelerated
Q1 2023 revenue growth accelerated Revenue by geographical area (EUR million) Comments 55.8 1.7 • Q1 2023 revenue EUR 55.8 million 2022: 103.6 4.9 growing 385% year-on-year. • In absolute and relative terms biggest year-on-year growth was in Rest of 37.8 Europe region. Rest of Europe is now the 32.7
Slide 18: Sales performance according to plan in Q1/2023
Sales performance according to plan in Q1/2023 Order intake (EUR million) Order backlog (EUR million) Comments 124.4 • Q1 2023 order intake growth 65.4 118.9 128% year-on-year 61.7 61.4 55.0 • At the end of Q1 2023 Order Backlog grew to EUR 124.4 million (29.1 million in Q1 2022) • Improved lead-tim
Slide 19: Positive operating cash flow for the first quarter
Positive operating cash flow for the first quarter Gross profit(EUR million) Operating cash flow (EUR million) Comments 48.2 46% • Healthy Gross profit development continued 28.4 51% • Operating cash flow positive EUR 2.5 million even though growth employs net working capital. 12.9 2.5 47% 1.8 0.2 5
Slide 20: Kempower's new outlook for 2023
Kempower’s new outlook for 2023 Kempower gave a positive profit warning on 14 April 2023 and raised its profit guidance for 2023. Kempower continues to seek strong growth in a profitable manner. The advanced entry to North American markets in 2023 impacts Kempower’s operative EBIT due to additional
Slide 21: Kempower as an investment
Kempower as an investment Excellent combination of experience, innovation and advanced technology Rapidly growing Diversified Well- Scalable and Technological Sustainability Management company in an customer base positioned flexible knowhow and at the core with strong attractive and blue-chip produc
Slide 22: Surging market and customer demand
2. Surging market and customer demand
Slide 23: Highlights
Highlights Faster than expected market growth Commercial vehicles driving customer demand North America accelerating growth
Slide 24: Aggressive regulatory measures to speed up electrification
Aggressive regulatory measures to speed up electrification
Slide 25: Broad support for EV adoption
Broad support for EV adoption Car manufacturers have announced Strong support from governments US$600bn of investment into EVs across Europe Announced EV investments by OEM (in US$bn) ICE phase-out for new vehicles 100 EU recently announced ICE ban 100 for 2035 Sweden ~70 Iceland Finland ~60 Norway
Slide 26: Truck manufacturers clearly going towards electrification
Truck manufacturers clearly going towards electrification Announced EV investments in (USD bn) Produce Launched Aims to sell 1000 long-haul 27,000 trucks at trucks in unites per BYD Essex 2023 year by 20,0 plant in 2025 2023 Daimler Trucks 15,0 launched the FUSO Aims to Volvo 5,0 eCanter and have al
Slide 27: USD 16 billion of capital raised on building charging networks
USD 16 billion of capital raised in Europe and North America on building the charging networks since March 2021 Announcement Date Company Investor Investment type Amount Raised ($mm) 27-Feb-23 Evpass Shell Strategic investor - 26-Feb-23 Current Trucking Ares Infrastructure Financial investor 250 01-
Slide 28: Changing market dynamics impacting customer expectations
Changing market dynamics impacting customer expectations Market growing Market spreads to Various customer faster than multiple domains expectations and expected charging use cases • The DC charging market is • Market growth is expanding • Customer expectations vary, growing faster than expected. fr
Slide 29: DC charging market to reach EUR 14 billion by 2030
DC charging market to reach EUR 14 billion by 2030 Total market opportunity EUR 14 billion Europe North America EUR 7.6 billion 50 million EVs by 2030 EUR 6.5 billion 40 million EVs by 2030 44 TWh 500,000 TWh 36 TWh 600,000 TWh million BEVs 185 eTrucks 100 million BEVs 151 eTrucks 193 5 TWh 250,000
Slide 30: DC charging points are driving growth
DC charging points are driving growth Number of DC charging points in Europe and North America CAGR * 1,578,000 26% 1,600,000 1,200,000 DC charging Points 800,000 233,572 400,000 0 2022 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e Charging points Figure. Market studies estimate approximately 200,
Slide 31: The market growth
The market growth • Market value is growing at 19 % CAGR • DC charging points are growing faster, up to 26 % Total DC charging Market Size in Europe and North America (EUR billion) CAGR * 14.0 19% 15.0 7.5 1.4 0 2022 2023e 2024e 2025e 2026e 2027e 2028e 2029e 2030e Total market Figure. Market studies
Slide 32: Key customer groups
Key customer groups DC charging will be divided to two focus markets and three customer groups Market Private Cars Commercial Vehicles (trucks, vans, buses) Customer group Public Charging Operators Original Equipment Manufacturers Fleet Operators • Charge Point operators are providing charging • For
Slide 33: Commercial vehicles to become largest DC charging segment by 2030
Commercial vehicles to become largest DC charging segment by 2030 in Europe and North America DC charging market, EUR billion 14.0 Marine, off-highway + other 10x Bus 9.1 Trucks 1.4 0.2 4.9 1.2 2022 Commercial Vehicles 2030e Private Cars Note: Figures include Europe and North America Source: Kempowe
Slide 34: Towards a complete solution
Towards a complete solution Market maturity Private Cars LONG-TERM Value-added services Conversion Revenue maximization vaa EARLY MAJORITY Customer retention Customer Dedicated experience On-the-route MCP Routing etc. Commercial TODAY Delivery & installation Vehicles smoothness Sustainability & HW s
Slide 35: Revolutionizing UK's EV charging infrastructure
Case Private Cars Revolutionizing UK’s EV charging infrastructure Kempower’s fast charging technology will be rolled out by Osprey Charging across the UK. Osprey Charging's rollout will see over 150 high- powered EV charging hubs open across the UK over the next four years. Each hub will host up to
Slide 36: Fast-charging technology for Sweden's largest e-truck charging station
Case electric trucks Fast-charging technology for Sweden’s largest e-truck charging station Kempower delivered fast charging technology to Scania for the Swedish transportation and logistics company Falkenklev Logistik's new electric truck depot in Malmö, Sweden. Includes Kempower Satellite fast cha
Slide 37: Powering the largest electric bus depot in the Nordics
Case electric buses Powering the largest electric bus depot in the nordics Kempower delivered DC fast charging technology to GodEnergi A/S for Tide Bus’ new electric bus depot in Aalborg, Denmark. GodEnergi A/S has installed 124 Kempower Satellites at the depot, which are connected to 18 Kempower Po
Slide 38: Market presentation: Key takeaways
Market presentation: Key takeaways 1. 2. 3. 4. 5. The market is European and Market is Truck charging is The market growing rapidly North American divided between expected to estimates include and will total up markets will be private car grow rapidly. only equipment. to EUR 14 billion in similar in
Slide 39: Cutting edge DC charging technology
3. Cutting edge DC charging technology
Slide 40: Capturing the most value-adding parts of the value chain
Capturing the most value-adding parts of the value chain COMPETITIVE EDGE User experience and charging flow Modular technology allows for cost-efficient and scalable assembly Technological innovations such as dynamic power sharing Know-how and IP on embedded software and charging control Kempower su
Slide 41: Committed and reliable partner
Committed and reliable partner Dynamic power sharing Kempower ChargEye User-friendly Kempower Satellites 25-400 kW Modular power source 1-12x Scalable charging power unit User-friendly Dynamic power Data solutions & Seamless system Expert & convenient Ongoing development Reliability solutions distri
Slide 42: Advantages compared to traditional DC charging
Advantages compared to traditional DC charging Kempower Charging System: more power, less idle time, small grid connection EV getting the max capacity of kWs ➔ 390 kW of charging can be delivered from a 400 kW power module, EV getting leaving 10 kW idle power less kWs than max capacity Traditional C
Slide 43: State of the art charging management system
State of the art charging management system Kempower ChargEye is an advanced cloud-based Charging Management System that integrates charging hardware into customer’s business. • End-user experience fully integrated into customer’s brand and service portfolio • Advanced optimization of power and ener
Slide 44: Before Kempower ChargEye, we hired staff to stop and start charging
”Before Kempower ChargEye, we hired staff to stop and start charging at the right time in the evening to avoid energy costs” –Keolis Sweden
Slide 45: Robust solution pipeline
Robust solution pipeline Plug & Charge Eichrecht MCS SiC Plug and Charge Eichrecht is a German Kempower Megawatt Next generation Charger allows automated calibration law that Charging with multimodality utilizing Silicon Carbide communication and billing requires all components To satisfy the market
Slide 46: Technology presentation: Key takeaways
Technology presentation: Key takeaways 1. 2. 3. 4. 5. Kempower All solutions include All products within Unique Kempower Kempower charging solutions the same main the charging ChargEye solutions are user solution are are flexible & system, allowing for software with friendly with good fully compatib
Slide 47: Scalable delivery capability
4. Scalable delivery capability
Slide 48: Slide 48
Slide 49: Scalable business model enabling rapid growth
Scalable business model enabling rapid growth Customer driven asset light business model Quickly scalable make Outsourced Precise product Modular product Secured material flow Standardization / or buy production Installation management design from dual-sourcing Mass customization model and maintenan
Slide 50: Scalable operating platform through outsourcing
Scalable operating platform through outsourcing Constant quality Low capex requirements control Flexibility Forecasts & Orders Scalability Suppliers and Mass customization subcontractors Components & Assembly Final assembly which requires critical special Inventory with production know-how, conducte
Slide 51: We continue to scale-up production
We continue to scale-up production In 2022, we started the production in our new factory and expanded production at the old factory space in Lahti. Europe • 14,000 m2 facilities in Finland with continuous production improvements • reviewing different alternatives to increase the production capacity
Slide 52: Scalable global production capacity
Scalable global production capacity Production capacity ramp-up, subject to demand Comments Charging points 4,300 100000 MW Capacity plan includes facilities, 90000 supply chain, people and 3,400 continuous improvement. 80000 MW 70000 2,600 Delivery capacity plan is not the MW 60000 sales forecast b
Slide 53: Delivery capability presentation: Key takeaways
Delivery capability presentation: Key takeaways 1. 2. 3. 4. Rapid scalability Maintain flexibility Global operational Sustainability In-house Seamless excellence model drives production vs. co-operation with Local supply chains daily sub-contracting. product design and supported by decision-making.
Slide 54: North America accelerating the growth
5. North America accelerating the growth
Slide 55: North America will become the world's fastest-growing EV charging market
North America will become the world’s fastest-growing EV charging market North American DC charging market EUR billion 6.5 16x Commercial Vehicles 4.0 0.4 Private cars 2.5 2023 2030 Source: Kempower Market research
Slide 56: Significant incentives through US regulatory actions
Significant incentives are available through the US regulatory actions started in 2023 Buy American Act NEVI* Program Inflation Reduction Act • US-made products • Support the build up of • USD 1 trillion program to curb and preferred in purchasing EV infrastructure reduce deficit, lower prices • Up
Slide 57: California is the forerunner in electrification
California is the forerunner in electrification In the US the following states were leading with plug-in car registrations in 2022: • California • Hawaii • Washington • Oregon • District of Columbia • Vermont • Colorado • Nevada BEV registrations in United States increased to 5.6 percent of light- v
Slide 58: Why did we choose Durham in North Carolina?
Why did we choose Durham in North Carolina? Kempower chose Durham as the location for the new EV charging production site in the USA after careful evaluation The selection was based on for example: • level of local supply chain • cleantech hub • top universities • state incentives • ESG values • tim
Slide 59: North Carolina is the optimal location to serve our customers
North Carolina is the optimal location to serve our customers in North America Durham Our Channels • Regional sales organizations • Global key account managers Production and Kempower subsidiary • Sales partner network Kempower sales team
Slide 60: North Carolina production facility
North Carolina production facility The new facility is in Durham, North Carolina with more than 154,000 square feet (around 14,000 square meters) of space. In the first phase, Kempower scales up the local assembly to produce NEVI-compliant Kempower charging systems. Kempower has a planned project in
Slide 61: This is how we will grow in North America
This is how we will grow in North America Go-to- Operational Schedule Products market excellence • Market certifications • Existing offering • Following European • Establishing existing already completed portfolio is a good fit success story operating model for the North American • Forming structure
Slide 62: North America presentation: Key takeaways
North America presentation: Key takeaways 1. 2. 3. 4. North America will Following European North Carolina is an Our manufacturing become the success story. optimal location facility will be the fastest growing for Kempower. same size as the EV charging current Lahti market. factories.
Slide 63: Updated growth strategy and financial targets
6. Updated growth strategy and financial targets
Slide 64: This is what our strategy update is all about
This is what our strategy update is all about 1. 2. 3. 4. 5. Focus: Private car Full solution All main Software and People and and commercial delivery continents services business competences vehicles charging. capabilities. established. build-up. development.
Slide 65: Dedicated and reliable EV charging solution partner
Dedicated and reliable EV charging solution partner TOP 5 PLAYER IN EUROPE AND NORTH AMERICA BY 2030 Europe North America Rest of the World Top position in the Nordics Rapidly growing market, Business development stage and increasing market entry in 2023 to screen key markets** share in the Rest of
Slide 66: Kempower's new financial targets
Kempower’s new financial targets Financial targets • revenue of EUR 750 million in the medium term (years Growth 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
Slide 67: Our ambition
Our ambition is to be top 5 player in DC charging in selected markets and geographies Kempower revenue by geography Kempower revenue by charging application REST OF THE WORLD OFF HIGHWAY NORTH AMERICA EUROPE COMMERCIAL VEHICLES PRIVATE CARS NOW NOW REST OF THE WORLD OFF HIGHWAY NORTH AMERICA 2030 EU
Slide 68: Kempower positioning
Kempower positioning Customers are looking for electric mobility charging partner Value chain position Offering position Dedicated and reliable Charging Solution provider Full solution integrated to customers’ business processes Full solution offering Product Solution Platform End manufacturer provi
Slide 69: Services offering becoming an important part of the overall solution
Services offering becoming an important part of the overall solution Raw materials Software Research & Production / Services Customers & component integration Installation End user Development assembly production and cloud Securing recurring revenue Device status monitoring Spare parts Preventive ma
Slide 70: Our vision: Use cases for private cars
Our vision: Use cases for private cars
Slide 71: Our vision: Use cases for commercial vehicles
Our vision: Use cases for commercial vehicles How do you charge? Overnight Destina tion On- The- Move Depots, Truck Stops Warehouses, Urban Nodes, Distribution Centers Highways Charging availability: 6-8h Charging availability: 30min-2h Charging availability: 45min 50-100kW 150-350kW 500-1200kW CCS*
Slide 72: Strategy execution
Strategy execution Identified development areas in people and competences for successful strategy execution Agile organization adapted for fast growth mindset Best practices and knowledge sharing Innovation and customer understanding in each team Competences and skills development & recruitment Care
Slide 73: Kempower setting the standard for business sustainability
Kempower setting the standard for business sustainability
Slide 74: Our impacts
Value creation Our impacts SOCIAL ENVIRONMENTAL ECONOMIC Accessible, safe and remotely -86% emissions/100 km from fully Corporate income taxes controllable charging units electric passenger car in traffic Engaged and motivated compared to ICE passenger cars* Wages, salaries, other employees 390 MWh
Slide 75: Strategy and concluding remarks
Strategy and concluding remarks Market demand Value creation Value capture and strategic choices How Kempower gains the fair share of the market Execution for success • Market potential estimate for DC Aim for the Top 5 player in Europe and Differentiation in Customer Experience and charging equipme
Slide 76: Kempower as an investment
Kempower as an investment Excellent combination of experience, innovation and advanced technology Rapidly growing Diversified Well- Scalable and Technological Sustainability Management company in an customer base positioned flexible business knowhow and at the core with strong attractive and blue-ch
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Slide 78: Thank You.
Thank You.
Slide 79: Kempower as an investment
Kempower as an investment Excellent combination of experience, innovation and advanced technology Rapidly growing Diversified Well- Scalable and Technological Sustainability Management company in an customer base positioned flexible business knowhow and at the core with strong attractive and blue-ch