Kempower

Powering planet cool. We charge our planet for the better by powering the electric movement. We enable quick and scalable EV charging solutions for everyone and everywhere. We make it positive. We believe in the power of positive energy. We see opportunities where others see obstacles. As a team, we create success for us all and add value to people's lives. We make it quick. We like our charging experience fast and easy. We are quick to respond and quick to deliver. Our service is easy to sell and buy. We make it quick. We make the most user-friendly EV chargers that become future standards. Our products just click. They are flexible to integrate and to scale. We make it happen. We empower the EV evolution and create a cleaner and more quiet environment for us all. We inspire our audiences to join the electric movement. Plug in and be the change.

Hi everyone and welcome to this webcast where we present Kempower's financial results for the year 2024. My name is Paula Savonen. I am the VP of Communications at Kempower and also the host for today's webcast. Today we have three presenters. We have our CEO Tomi Ristimäki, our CMO Jussi Vanhanen and our CFO Jukka Kainulainen. You can ask questions anytime during the presentations by typing the questions on the Q&A box on your screen. I hope you enjoy the show and now over to Tomi.

Thank you, Paula, and welcome from my side as well. Let's go directly to the point. So looking at the key takeaways of Q4. So definitely the best border of the year. So in a gloomy year, I think this would be a great ending to have it on the positive, and it's definitely something that we promised as well. So from that point of view, we kept the guidance given in the summer, the corrected value, and brought the EBIT into positive. Same affects to the cash flow as well. And second best order intake ever. So this is definitely a point that comparison figures, that I'm really, let's say, happy on the efforts we have done and the success we have done on our sales front to achieve this figure. We are in good shape, organizational changes, process changes, reformed leadership, and decreased cost-based positions as well for the future growth. And I would say strategic progress, and we look at the projects which are really affecting our future. So fully transitioned to the next generation charging platform. So for new company like Kenpower, there's a big change to move to a completely new platform and make this big change. We accomplished this during 2024. Successfully initiated pilot deliveries with megawatt charging systems. And also emphasizing this, that we are making actual deliveries with new technology, being first on the market. And as North America, one of our really key projects, revenue grew by 84% year over year, gaining market share in the US and Canadian markets. So key figures, 72 million euros, and ordering intake almost 68 million, and positive Operative EBIT. And looking at the topic we have all looked at in many cases and there has been more like a theme for the year. So customer excess inventory levels. And I'm emphasizing also what does it mean. It's not inventories at Kenpower. It's not really sales inventories. we are talking about goods which are already waiting for installation. So this is the biggest portion of the inventory levels we are always discussing is goods waiting for installation, goods waiting for the customers to actually start profiting the customers. So this has been an industry-wide bottleneck, hindering growth in 2024, especially to the value chain position of the manufacturers. EXS inventory levels have decreased at steady pace. So I think our forecasts have been showing to the same direction. We are looking at all the time how this affects from our goods, and we are expecting the rest of the manufacturer's goods actually to move pretty much in the same pace. Because looking at the market growth, which was about 30%, and we look at how much our installation crew is about the same percentage. So this is looking at really the effect of the inventory. On a year that our revenue decreased by 21%, there was 30% more Kenpower chargers installed into the field. So this is actually showing it in real figures that the goods were coming from the inventories. And we expect that the excess inventories across the whole DC charging industry in Europe will impact the demand during the first half of 2025. Sales development. So we onboarded 22 new customers during the fourth quarter of the year. So looking at 66 significant customers, new ones in 2024. So this looks at wider customer base. And we have definitely increased the focus on retail customers, looking at retail companies who take the charging as their own business, because these are newcomers to the market and are not affected by excess inventories of Kemppau or either somebody else's goods. Significant growth this year, or last year, in commercial vehicle segment in both order intake and revenue. This is already a significant share of our total revenue. And also remember when we're looking at the future figures, how we estimate that this will be actually the biggest market segment for DC charging by year 2030. And the success in new customer acquisition lays the foundation for future growth. Positive progress in North America, which is also Looking at the picture is actually from Manhattan, our first site inside the New York City. Kind of a landmark to be in so central position and have a very busy site in there with our customer, Revell. And it's for the North American team, highest order intake ever. And it's already contributing 15% of the total order intake and the 84% revenue growth year over year is showing that we are growing our market share in the North American market. And also great to announce, and already announced before, that Monil Malhotra has already joined the team, actually, and is now leading our expansion in North America. We are actively monitoring recent market developments in North America and remain confident in our strategic approach. And then I give the floor to Jussi to have the expert really telling on how the market is going in the near years.