Kempower

Here at Kempower, we charge our planet for the better by powering the electric movement. We work hard to create quick and scalable EV charging solutions for everyone, everywhere. To meet the constantly growing demand, we have designed an effective and flexible global supply chain model. Our production hubs are in Finland and in the US. we work closely with trusted chosen partners and subcontractors our local supplier networks feed our factories together we ensure to meet the requirements for environmental and social responsibility production principles the main principles of our operations ensure effective and responsible production one We make quick make-or-buy decisions to ensure scaling, to optimize costs, and to mitigate risks. Two, to ensure quality control and flexibility, we do the final assemblies in-house. This also helps us secure business continuity. Three, we believe in local subcontracting. Combined with global sourcing, this equals flexibility, cost efficiency, and proximity, all in line with our environmental and social guidelines. scaling we have been growing fast our first factory opened in 2021 by 2027 chempower will have delivered over 100 000 charging points around the world we have opened new factories every year and will keep expanding to meet the growing demand of ev charging solutions Our delivery times are among the fastest in the industry and our delivery reliability is well over 90%. We always keep on improving our operations. We continuously create new ways of working and best practices to serve our clients better. We focus on our people and safety always comes first. We empower the electric revolution. We are committed to creating a cleaner and more quiet environment for us all. We want to be the best workplace for future professionals. Join the electric movement.

Hi everybody and welcome to this webcast where we present Kempars financial results for the first quarter 2024. My name is Paula Savonen. I am the VP of Communications and also your host today. Today we have two presenters. We have our CEO Tomi Ristimäki and our Chief Financial Officer Jukka Kainulainen. You can ask questions any time during the presentations by typing the questions in the Q&A box on your screen. And we take all the questions in the end of the presentations. I hope you enjoy the presentations and now I give the floor to Tomi.

Thank you, Paula. And we go to the subject of the day. Of course, the first, financial performance. Key finances on a weak level due to customers' high inventory levels, delayed grid connection availability, which is actually tied to the previous one, and basically political strides in Finland affected also the revenues in Q1. What we don't see in the figures is actually that what we see positive sales pipeline development. and also the new customer acquisition in the key markets among the commercial vehicles of public charging segments was very good in Q1. We expect to get back on the growth track during the second half of this year. On North America, which is of course a strategic project for us, we look at the sales pipeline expansion and also the NEVI compliance process proceeding well. Revenue from North America was already 9% of the total revenue. Technically, we look at the launch of megawatt charging system with peak power of 1.2 megawatt, which means 1200 kilowatts. A North American charging standard, NACS. We look at this charging standard that was first called Tesla charging standard and now expanding to different car makers in the US by 2025, and we are now able to deliver. Ram power of the second generation charging product portfolio is progressing very well. We are ahead of the schedule. and looking at very good feedback from the customers. Sales highlights. We see the growing interest towards Ken Power's charging technology, as we have won several new partnerships in commercial vehicles and public charging segments during the Q1, onboarding 15 new customer accounts, We look at first orders from large fuel retailers in Europe, global car manufacturer, and then several bus and truck depots in several countries. As a milestone in a very key market where we were able to enter in the late last year is the first public charging hub delivered in Germany. And sales pipeline is developing positively. And we are expecting actually to receive the orders from the pipeline. later this year we look at the north america and nacs uh this is uh increased sales efforts in in north america where we see the partner channel typical for the u.s industrial product sales that we have a especially increased focus on that for production ramp up has progressed well Operations are in good hands with our current leadership, while we search for the new North America leader. very important NEVI funding compliance progressing as planned so as mentioned before we are compliant with our manufacturing with today's regulation but we see and there is news that this regulation will tighten later this year by requiring 55% local content made in US so this is actually something that we have a clear pipeline how to achieve that and how to reach our goals After the review period, we announced as the first European DC charging company to include NACS charging standard for the company's whole offering in North America. Strengthening our competitive edge with our new product portfolio is a very much theme of the day, also impacting our finances for the Q1. Ramping production of our second generation product portfolio has progressed better than planned. So we are looking at actually being ahead of timeline when we look at the deliveries and the readiness of production. Customers have been satisfied with the high performance and efficiency of the new technology and seeing this as a comparison towards the whole market will strengthen our position as technological forerunner in DC charging market. And then another very major launch, first true MCS offering. And what I mean by true MCS is that it is actually not just doing pilot charging with a CCS protocol. We are actually having product available which has true MCS communication protocol as well as the first one in the market. At the Capital Markets Day, this was one of the key projects that we are going for. And truck charging, what we see is developing to be the biggest DC charging market by 2030. And this is a very major part of that, because this high power for especially long-haul trucks is extremely important. And some references from the quarter. So first, bus depot with Kenpower Charging in Italy, in Bologna. commissioned during Q1. We look at the first public charging systems in Germany. Look at the very nice truck references where Heineken is delivering refreshments to people with joining with Einride and of course, charging the electric trucks with Kenpower chargers. Looking at another truck segment, also major logistic operator DFDS having the charging hub in the Netherlands. And some big things, because we have been now in the Nasdaq first north growth market for over two years, and it's definitely time to take the next step. So transfer to the official list of Nasdaq Helsinki will happen at earliest during the second quarter of 2024. This transfer will bring more visibility to Kemppau and actually have us accessing larger investor pool. And of course it has an impact, positive impact on the liquidity part. Sustainability, very key topic for many companies now. I think the CSRD reporting will be a topic for every company as it will become mandatory next year and this is progressing very well. We are prepared for this change. Actions taken in strengthening our waste management and we are looking at actually our impact to the world So the power delivered to electric vehicles rose 61%. So to a very high figure, 900 megawatt hours per day. And this is 61% more than 2023. So this means emission-free kilometers driven on the roads of the world. And now for Jukka to look at the financials.