Ebusco Holding N.v. · EURONEXT:EBUS
Ebusco — Q3 2024 Earnings Presentation
37 slides from Ebusco's earnings presentation, Oct 24, 2024
Slide 1: Analyst Call – 24 Oct 2024
— —_ _—. — ANALYST CALL—24 OCT 2024
Slide 2: Today's Speakers
TODAY'S SPEAKERS Christian Schreyer Roald Dogge Jurjen Jongma CEO and Chairman COO CFO 2
Slide 3: Cautionary Statement
CAUTIONARY STATEMENT NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY (IN WHOLE OR IN PART) IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. This presentation is for information purposes only a
Slide 4: Agenda
Agenda 1 Introduction of Christian Schreyer as new CEO 2 Update on Q3 2024 and Ebusco’s financial condition 3 Rights Issue update 4 Turnaround Plan 5 Q&A 4
Slide 5: Introduction New CEO
INTRODUCTION NEW CEO 5
Slide 6: Introduction of Christian Schreyer as new CEO
INTRODUCTION OF CHRISTIAN SCHREYER AS NEW CEO Joined Ebusco on 2 September 2024 as CEO and chairman of the Executive Team. 25 years experience within the Public Transport and logistics sector. • Deutsche Bahn, DB Schenker Rail, Transdev and Go Ahead. Deep industry expertise, extensive customer insig
Slide 7: Why Ebusco
WHY EBUSCO “ Based on my extensive industry experience, I know this bus is a gamechanger in the industry ” Revolutionary Impressive Market leading Range lightweight low energy Total Cost of up to 700 km on technology consumption Ownership a single charge 7
Slide 8: Update on Q3 2024 and Ebusco's Financial Condition
UPDATE ON Q3 2024 AND EBUSCO’S FINANCIAL CONDITION 8
Slide 9: Our strategy to produce buses in-house has not been successful
OUR STRATEGY TO PRODUCE BUSES IN-HOUSE HAS NOT BEEN SUCCESSFUL • Strategy to produce the Ebusco 3.0 in-house as of 2021 has not been successful and led to: • Consequent years of losses • Increasing inventory levels • Increasing operating expenses (OPEX) • To improve performance and reliability Ebusc
Slide 10: Operational challenges continued in the second half of 2024
OPERATIONAL CHALLENGES CONTINUED IN THE COURSE OF THE SECOND HALF OF 2024 • Ebusco has not been successful in safeguarding the availability of funds in H2 to date, which led to: • Severe limitations on payments to suppliers and prioritization of payment of salaries over other operational expenses •
Slide 11: Orderbook impacted by challenging financial condition
ORDERBOOK IMPACTED BY CHALLENGING FINANCIAL CONDITION • 135 buses delivered in first 9 months of 2024, of which 37 in Q3 • Legal proceedings initiated by Ebusco on cancellation by Qbuzz of 45 buses was denied by the court - Ebusco will use the buses produced for Qbuzz to fill the other orders in its
Slide 12: Rights Issue Update
12 RIGHTS ISSUE UPDATE
Slide 13: Rights issue to restore our balance sheet
RIGHTS ISSUE TO RESTORE OUR BALANCE SHEET • Approval sought for €36 million in new equity • Mobilizing of support from our shareholders and, potentially, some new investors continues, and progress is being made • In the event not all rights are exercised, we will issue the relevant shares to other i
Slide 14: Measures to prevent a working capital shortfall in Q1 2025
MEASURES PUT IN PLACE TO PREVENT A WORKING CAPITAL SHORTFALL IN Q1 2025 • Because of production almost at a halt, and order cancellations, our lowest point in working capital will occur in Q1 2025 – this is expected to improve and turn positive in Q2 2025 • We have initiated various measures, aimed
Slide 15: 5-for-1 share consolidation
5-FOR-1 SHARE CONSOLIDATION Purpose – increase market value per share to facilitate the rights issue Nominal value per share will go from EUR 0.01 per share to EUR 0.05 Resulting number of shares outstanding: 14,617,676 (from 73,088,382) Timeline • Last day of trading in the ordinary shares under th
Slide 16: Turnaround Plan Update
TURNAROUND PLAN UPDATE 16
Slide 17: Our buses continue to be cost competitive and economically viable
OUR BUSES CONTINUE TO BE COST COMPETITIVE AND ECONOMICALLY VIABLE… • Both the Ebusco 2.2 and 3.0 continue to be competitive, especially from a Total Cost of Ownership (TCO) perspective - the Ebusco 3.0 has an impressive low energy consumption • The bus manufacturing landscape in Europe is changing r
Slide 18: …and our addressable market continues to be strong
…AND OUR ADDRESSABLE MARKET CONTINUES TO BE STRONG EU 2030 target for city bus market vs. the 2020 – 2022 market trend Growth drivers for the 16000 electrification of the public number of new electric city buses on the market 14000 transport bus fleet in Europe continue to be strong 12000 10000 • St
Slide 19: Global push for public transport electrification
…BASED ON AMONGST OTHERS A GLOBAL PUSH FOR PUBLIC TRANSPORT ELECTRIFICATION Global push for public transport electrification Green deal - Fit 55 Relevant programs / targets • Package Proposals of the Commission to align current laws with the 2030 / 2050 ambitions. Clean vehicles Fit 55 Directive / G
Slide 20: More drastic measures are required
GIVEN THE FINANCIAL CONDITION AND TO FULLY CAPTURE THE MARKET OPPORTUNITY MORE DRASTIC MEASURES ARE REQUIRED Why is it different this time? Management team in place with relevant industry experience and a track record of turnarounds Change in company model from Operational Equipment Manufacturin
Slide 21: Core objectives of the Turnaround Plan (1)
CORE OBJECTIVES OF THE TURNAROUND PLAN (1) THE PRIME OBJECTIVE OF THE TURNAROUND PLAN IS TO IMPROVE OUR FINANCIAL SITUATION AND TO RESTORE AND RETAIN THE CONFIDENCE OF OUR STAKEHOLDERS IN EBUSCO AS A RELIABLE AND VALUED BUSINESS PARTNER. 21
Slide 22: Core objectives of the Turnaround Plan (2)
CORE OBJECTIVES OF THE TURNAROUND PLAN (2) Gradual increase of the monthly run rate to 40-50 buses by the end of 2025, reduce obsolete processes and structural annual cost reductions of c. €30 million by the end of 2025 Rationalization of the value chain and ensuring stable output OPERATIONAL Simpli
Slide 23: Turnaround Plan Programme
TURNAROUND PLAN PROGRAMME Turnaround Plan 1 2 3 4 5 6 Realize / adjust Rationalize Improve Clarify OED Minimize working Professionalize commercial plan footprint value chain model capital Ebusco Energy Transformation Sponsor: CCO COO COO COO CFO Director 7 Change Communication 8 Contract & Legal Ter
Slide 24: Workstream 1. Realize commercial plan
WORKSTREAM 1. REALIZE COMMERCIAL PLAN Cultural shift required to meet customer expectations. Sell what we can make rather than make what we can sell. Required adjustments Resulting in • Realistic commercial ambitions as the base for • Lower level of customization and better control of executable ope
Slide 25: Workstream 2. Rationalize footprint (1)
WORKSTREAM 2. RATIONALIZE FOOTPRINT (1) Be lean end to end by minimizing complexity in the value chain and improve production and logistics control. Required adjustments Resulting in • Reducing production locations of the Ebusco 3.0 • Lean processes and less complexity • Discontinuation of one of ou
Slide 26: Workstream 2. Rationalize footprint (2)
WORKSTREAM 2. RATIONALIZE FOOTPRINT (2) Current set-up * Future set-up 26 * Part of the logistic flow will be handled directly by contract manufacturers
Slide 27: Workstream 3. Improve value chain
WORKSTREAM 3. IMPROVE VALUE CHAIN Optimize quality while minimizing PDI hours by improving information transfer and progress control. Required adjustments Resulting in • Further improve the quality of the assembly process by • Less PDI efforts in the Netherlands doing things first time right at cont
Slide 28: Workstream 4. Clarify OED model
WORKSTREAM 4. CLARIFY OED MODEL Clarify the roles of all stakeholders for the contract manufacturers to work efficiently and effectively. Required adjustments Resulting in • Clarify stakeholders’ responsibilities and governance • Clear understanding of roles and responsibilities between Ebusco, cont
Slide 29: Workstream 5. Minimize working capital
WORKSTREAM 5. MINIMIZE WORKING CAPITAL Reduce working capital by reducing inventory levels, creating production flow and attracting additional bank guarantee facilities. Required adjustments Resulting in • Converting existing stock (approx. €110 million) into • Better aligned procurement of componen
Slide 30: Workstream 6. Professionalize Ebusco Energy
WORKSTREAM 6. PROFESSIONALIZE EBUSCO ENERGY Harvest the identified demand in a high barrier market by leveraging the awarded, high-value, and difficult-to- obtain maritime certificates, while meeting delivery schedule to improve cash flow. Required adjustments Resulting in • Setting up new ways of w
Slide 31: Cross functional elements of the Turnaround Plan
CROSS FUNCTIONAL ELEMENTS OF THE TURNAROUND PLAN 7 Change Communication • Refine vision and create an optimal company culture, aligned with the new strategy. • Integrate new ways of working, improvement of collaboration between departments & setup performance management program to create clarity whe
Slide 32: Solid governance structure in place for the Turnaround Plan (1)
SOLID GOVERNANCE STRUCTURE IN PLACE FOR THE TURNAROUND PLAN (1) • Steering Committee comprising the CEO, COO, CFO and the Transformation Director with a joint responsibility for the implementation of the key elements of the Turnaround Plan in a structured and diligent fashion • Each workstream is ow
Slide 33: Solid governance structure in place for the Turnaround Plan (2)
SOLID GOVERNANCE STRUCTURE IN PLACE FOR THE TURNAROUND PLAN (2) SteerCo CEO - COO - CFO – Transformation Dir. Transformation Office Transformation Director - Ebusco Transformation Support 1 2 3 4 5 6 Realize/ adjust Rationalize Improve Clarify OED Minimize working Professionalize commercial plan foo
Slide 34: What is needed for the Turnaround Plan to succeed?
WHAT IS NEEDED FOR THE TURNAROUND PLAN TO SUCCEED? Pre-requisite Addressed through… Excellence in execution • Track record of management team and solid governance structure • Believe in quality and effectiveness of the Turnaround Plan and ability of Ongoing customer support and buy-in management to
Slide 35: We have made a good start - first proof points
WE HAVE MADE A GOOD START - FIRST PROOF POINTS First steps made in FTE Contract manufacturing model Slot planning in place reduction and simplification is yielding initial results with of the organization reduced throughput times One single truth of Very supportive and Key employees show information
Slide 36: Q&A
Q&A 36
Slide 37: Ebusco – Made to move people
EsSUSCO” MADE TO MOVE PEOPLE www.ebusco.com