Kempower Oy · OMXHEX:KEMPOWR
Kempower Oy — Q3 2024 Earnings Presentation
25 slides from Kempower Oy's earnings presentation, Oct 30, 2024
Slide 1: Kempower Q3 2024 Interim Report
Kempower Q3 2024 Interim Report
Slide 2: Q3 2024: Challenging market conditions continued during the quarter
Q3 2024: Challenging market conditions continued during the quarter Tomi Ristimäki Jukka Kainulainen Chief Executive Officer Chief Financial Officer
Slide 3: Quarter in brief
Quarter in brief Challenging market conditions – High customer inventory levels prevailed, and customers’ slow decision making Q3 2024 Key Figures continued to impact sales performance. 52.3 51.5 Market situation – YTD installations grew significantly in both Europe and North America. EUR million EU
Slide 4: High customer inventory levels
High customer inventory levels • High inventory levels continue to affect our order intake from the existing customers. • As we anticipated in June 2024 the decline in inventories was not significant during the third quarter. • We estimate the excess inventory to be around EUR 80 million and to rema
Slide 5: Electrification megatrend continues
Electrification megatrend continues • YTD 2024 data shows that the DC charging installations have grown 18% in 2024 in Europe, and 74% in North America. • The share of electric vehicles registrations in January-September 2024 at the same 15 percent level in Europe compared to corresponding time-peri
Slide 6: Sales recovery
Sales recovery • Sales recovery is progressing step by step. • Kempower onboarded 12 new customers during the third quarter of the year (44 during 1-9/2024). • The steady expansion of our customer base positions us well to regain momentum and return to our growth track. Wide customer base also dilut
Slide 7: Kempower provides EV fast-charging solutions for Revel at Pier 36 in Manhattan
Kempower provides EV fast- charging solutions for Revel at Pier 36 in Manhattan, the fastest DC charging station in New York
Slide 8: Kempower delivered its fast-charging solutions to a public EV charging hub in Hyderabad, India
Kempower delivered its fast- charging solutions to a public EV charging hub in Hyderabad, India, in collaboration with GLIDA
Slide 9: Kempower backs electric truck transition in France
Kempower backs electric truck transition in France with the country’s first logistics hub equipped with Kempower DC fast-charging solutions
Slide 10: Steady progress in North America
Steady progress in North America • Revenue for January-September 2024 in North America more than doubled from the corresponding period. • Good sales pipeline, and there is room to grow. • We acquired our first customer under the 5 billion NEVI funding program. • New customers include a global truck
Slide 11: The ramp-up of the next generation product portfolio is completed
The ramp-up of the next generation product portfolio is completed • The production of the next generation product portfolio is now in normal state and no longer limiting production. • Our new product portfolio will provide top-of-the-class performance to our customers. • The new charger platform has
Slide 12: Technological development
Technological development • Megawatt Charging System (MCS) • Kempower is the forerunner in high- power charging according to our strategy – we were the first company to bring MCS to market in Europe. • First MCS and 700A CCS deliveries in Q4 2024. • California CTEP certification • Our CTEP certifica
Slide 13: Modular, scalable, dynamic & user-friendly charging solutions for all charging applications
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 14: Our vision is to create the world's most desired EV charging solutions for everyone
Cars Trucks Buses Our vision is to create the world’s most Mining desired EV charging Vessels solutions for everyone, everywhere Vans Agriculture Port Air travel machinery Construction machinery
Slide 15: Sustainability achievements
Sustainability achievements • We achieved the Silver-label in the EcoVadis evaluation (Bronze in 2023), a recognition of our efforts in ESG performance. • We also renewed our Nasdaq Green Equity designation, a voluntary designation for stock listed companies in Nordic markets wanting to increase vis
Slide 16: Financial Review
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Slide 17: Key figures
Key figures during the review period, IFRS EUR million Q3 2024 Q3 2023 1-9 2024 1-9 2023 2023 Comments Order backlog 100.2 126.7 100.2 126.7 110.6 51.5 60.9 150.5 208.6 275.3 • Q3 2024 Key financials were still Order intake impacted by ramp up of next Revenue 52.3 72.6 152.0 200.8 283.6 generation c
Slide 18: Q3 2024 order intake was weak
Q3 2024 order intake was weak Order intake (EUR million) Comments +32% • Q3 2024 order intake EUR 51.5 Q4 million (EUR 60.9 million) and Q3 275.3 January-September 2024 EUR Q2 Q1 150.5 million (EUR 208.6 million) +459% 66.7 208.9 • Order intake has been negatively affected by customers’ high 61.7 60
Slide 19: Q3 2024 revenue decreased
Q3 2024 revenue decreased Revenue development (EUR million) Comments +174% 283.6 11.3 • Q3 2024 revenue EUR 52.3 million (EUR 14.0 72.5 million) and January-September 2024 EUR 152.0 million (EUR 200.8 million) • The decrease in revenue was negatively impacted by ramp up of next generation charging p
Slide 20: 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 operative EBIT was impacted by costs associated with the US operations, higher fixed cost base and increase in warranty provision. • Actions ongoing to improve net wo
Slide 21: Headcount reduced significantly
Headcount reduced significantly Headcount development Comments +9% -7% +13% 907 • We initiated and concluded change 834 842 negotiations resulting of around 90 +97% reduction in headcount globally –full 737 reduction visible in Q4 2024. • Planned reductions were made without endangering technology r
Slide 22: Profitability improvement progressing
Profitability improvement progressing • In addition to personnel reduction, other actions include temporary lay-offs in Finland and limiting external spending. • Targeted EUR 10 million annual savings (compared to cost level at the end of second quarter 2024) progressing according to the plan. • We
Slide 23: Kempower's updated outlook for 2024
Kempower’s updated outlook for 2024 (specified on 29 October 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. This has a major negative impact on purcha
Slide 24: 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 25: Q&A
Q&A