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 click. 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.

Good morning, everyone, and welcome to ChemPower's Q3 2026 results presentation. My name is Kalle Loikkonen and I'm director of investor relations. Today, Kempower CEO Bhaskar Kaushal and Interim CFO Juha Jaatinen will walk us through the highlights and the results of the quarter and the first nine months of the year. After the presentation, we will, as always, end with a Q&A session. But without any further ado, let's begin. So let me hand over to Bhaskar.

Thank you, Kale. And good morning, everyone. Thank you for taking the time to be with us today. Let me start by saying upfront, the third quarter was below our expectations. As investment in public charging slowed sharply in the quarter, our order intake decreased by 19% and revenue down by 10%. So we have therefore lowered our 2026 revenue outlook to around 5% growth. Also, we now expect operative EBIT to be lower compared to 2025. Now, to build a stronger earnings base for 2027, we are increasing our fixed cost reduction target to more than 15 million euros. As part of this program, we are restructuring our organization to align our cost base to the current market conditions. We have announced the start of change negotiations in Finland regarding the potential organizational changes. Now, these are difficult but necessary decisions in this moment. I want to leave you with four messages today. First, we are outperforming a sharply weaker market, particularly in Europe. In a market where new public DC fast charging installations in Europe and North America are down 11% year to date, our revenues are up 12%. In Europe outside Nordics, we grew 10% in the quarter. Second key message, electrification is growing and the underlying long-term demand is still intact. In Europe, electric car registrations were up 55% in Q3 and now nearly one in four cars is now electric this year. The share of electric buses and trucks also is up this year. 30% of new buses and 6% of new trucks are electric. Third, Our ChemPower 2.0 strategy is delivering, and we're leaning in even further. Aftermarket sales are up 83%, and APAC and EMEA orders were up 48%. Our product cost reduction program is helping us hold margins despite price pressure and cost inflation. And fourth, we are resetting our cost base for 2027. these cost actions will lower our breakeven revenue point. And today, with a backlog or end of Q3 with a backlog of about 128 million and liquidity of 91 million, we have a solid foundation to keep executing this ChemPower 2.0 strategy and drive towards our vision. Next, let me walk you through the key numbers. First, I'll start with order intake. So market activity slowed pretty rapidly during the quarter, and that is visible in our orders. Order intake is down 19% year to 60.8 million and down 4% for the first nine months. In the quarter, we still added 10 new customers. Our order backlog is now 128 million, which is 9% higher than the same time last year. Second, revenues, 66.2 million, down 10% in the quarter, but up 12% in the first nine months. And this is in a market where public charging installations declined 11% year to date. Aftermarket was up 83%, as I mentioned, and it's up 60% year to date. Third, profitability. Operative EBIT was minus 1.7 million, mainly due to lower revenues. Our gross margin up slightly around here, supported by our cost reduction actions. And for the first nine months, the operative EBIT has improved by 1.7 million, roughly 20%, and operative EBIT margin improved by 1.4 percentage points. Finally, on cash flow, operating cash flow was minus 5.9 million, which is worse versus last year, but an improvement from minus 11.7 in Q2. The main driver is a higher share of partner sales that come with longer payment terms. Now, reducing the receivables is a clear priority for us. Overall cash flow is a key priority, and Juha will talk about the actions we're taking immediately. Next, let me explain what this means for our outlook. So we have updated our outlook for 2026. We now expect revenue to grow approximately 5% over 2025. And we expect operative EBIT to be lower compared to 2025. Now, the main driver of the revenue revision is the sharply weaker market activity that we see right now. In the public charging segment, there's ongoing consolidation amongst charge point operators, which is accelerating. And these customers are prioritizing utilization and profitability over network expansion in this moment. In the fleet segment, we're seeing longer sales cycles, deal closings are taking longer, and some investments are being delayed. Overall, we do expect these challenging market conditions to persist in the near term. But I'll show you in a moment why we believe the market will turn. Because underlying all of this, the EVs on the road are growing much faster than the chargers. But I'll come back to that in a second. As for what's driving the change in the EBIT outlook, we're expecting lower revenue than planned earlier. And I mentioned about the fixed cost reduction program that we're undertaking and increasing our target to 15 million euros. As part of that, we're assessing our entire cost structure. And there may be potential provisions and write downs that would impact our 2026 operative EBIT. Now, we're currently assessing these actions and the potential amounts, and we'll come back in the full year results with those. Next, we'll look at the market in a bit more detail. The market is sharply weaker, and we are outperforming that market. For the first nine months of the year, the new public DC fast-charging installations in Europe and North America, they're down 11% versus last year. Compared to the market, our revenue grew 12% in the first nine months. That was supported by Europe, market being down 8%. Our revenues are up 7%. In North America, market down 21%. We are up 32%. The standout market for us is Europe outside Nordics. The market is down 8%, but we are up 26% in revenues. To be clear and transparent on the numbers, the market data here shown here is public installations only, which accounts for roughly more than three quarters of the market. Our revenue also includes fleet, aftermarket, and APAC. Not a perfect like for like, but the direction here is pretty clear. So let me break this down by region. Our growth in Europe and APAC was offset by Nordics and North America. In Europe, outside Nordics, where we are up 10% in Q3 and up 26% for the year, we're growing across strategic accounts and countries, and our focus here is to keep winning share. In the Nordics, revenue declined 30% as existing customers have moderated their investment level. What we've seen here in our public charging customers, particularly, they have built up out their networks over the past several years. And currently, our focus here is on the fleet segment, on upgrades, aftermarket, on a large install base. North America, revenue decreased 37% in Q3. The CPO activity here has slowed significantly. For the year, we're still up 32% in terms of revenues. Last quarter, we described the order softness in North America as timing. Some of it was timing, but the market has weakened much more than we expected. And there, we are focused on continuing to win in fleet, ports, and NEVI-funded public charging sites. APAC in the Middle East, revenue down 11% in the quarter, but order intake is actually up 48%, and revenue will follow those orders in that market. Next, the market picture in Europe. In Europe, we're seeing quite strong growth in electrification. And we believe, and that's why we believe that the long-term demand is intact here. The current demand slowdown is actually in the charger investment. When you look at the vehicle electrification, it's actually accelerating. In Europe, the battery electric car registrations, they grew 55% in Q3 and are up 42% year-to-date. So this year, nearly one in every four new cars in Europe is electric. And it's not just cars. I mean, e-buses are now 30% of new bus registrations, and e-trucks, 6%, both up versus last year. If you look at today, the vehicle install base, less than 5% of that install base is electric. And as EV share continues to grow, which is driven by the total cost of ownership advantage of the EVs, we believe that in the mid to long term, the need for charging infrastructure remains substantial. So as the electric vehicle growth outpaces the charger growth, the utilization of that charger base improves and rises, which improves the charge point operator and our customer profitability. And in time, that profitability also leads to higher investment that they will put back into the network. Now let's look at North America, where the picture is a bit different right now. North America is going through a demand reset. The battery electric car registrations, those are down 33% for the first nine months and down 45% in Q3. EVs fell from 9% of new car sales to 6%. You ask why this sudden decline? This decline, I mean, this is driven by the expiration of federal EV incentives that happened in September of 2025. That expiration pulled forward some of that demand into 2025, in particular, in Q3. So that comparison base is quite high. We do see 2026 as an year of demand reset in terms of year-on-year compares for North America, but it's not the end of electrification in North America. Strong activity on the ground, particularly in segments where we are focused on winning in fleet, in ports, in NEVI-funded public charging sites, in good evidence fleet where the business case is truly driven by total cost of ownership, not just incentives. School buses like Denver Public Schools, where we've deployed our chargers and in helping them increase their electric vehicle base and the charger base. Ports, we've signed a framework agreement with DP World Canada and the Port of Vancouver. Navy-funded public sites, we are continuing our partnership with Power Up America. So a lot of green shoots in the ground. Next, I'll talk about something that I'm particularly quite encouraged by, which is our growing installed base and how it's performing. So our installed base keeps growing, and it's working harder to deliver more energy to EVs. We now have close to 42,000 units in the field, and the base has grown consistently every quarter. The energy charged through ChemPower chargers grew 83% in the quarter. up from 204,000 megawatt hours to 372,000. Why does this matter? I mean, it shows the growing demand for charging infrastructure on the ground. The EVs are there. They're charging on our equipment. Higher throughput, again, improves customer economics, brings profitability, brings returns to our customers, who then invest back into further network expansion. So this is very encouraging. And also encouraging is that the larger, more heavily utilized installed base, it needs our aftermarket offerings. It needs the support of that business. So that supports the growth of that aftermarket business as well. Next, let me talk a bit about ChemPower $2 strategy and how we're doing. We can't control the market, but where we control the outcomes, you know, our 2.0 strategy is delivering. And we're really leaning in even further into that strategy. First, winning with customers. This quarter, we added 10 new customers. I mentioned the framework agreement that we signed with DP World Canada. We continued partnerships with PowerUp America. So, you know, we're continuing to drive activity with our customers, strong wins there with Blue Chip customers. Second, technology leadership. In the last quarter, I introduced the MegaSatellite Flex. And this quarter, we delivered the first of those MegaSatellite Flex in Sweden for heavy-duty depot charging. And we're continuing to invest in ChargeEye software, which strengthens our analytics, the insights that really deliver operational outcomes for our customers. Third, lifecycle solutions. Aftermarket revenue, I mentioned, up 83% in Q3 and up 60% year-to-date. We've also launched service packages to cater to the growing needs of our customers. Fourth, operational excellence. Our product cost program, which I'll talk about here in a second, has already delivered 8 million euros of savings. And underneath it all, it's our team. We've strengthened our leadership team We appointed a new chief financial officer, Lasse Hattenen, and chief people officer, Oti Sortino. Both were joining in early 2027, and we look forward to welcoming them. Next, a few customer highlights. We're continuing to build and expand our partnerships. This is across segments, across geographies, with ChargePoint operators. You know, I mentioned PowerUp. We're expanding in the retail segment. In France, the great partnership with Sowat Solutions. Highway stops retail in the UK is one way we've helped build actually through our leasing partner, which is very interesting as leasing lowers the upfront investment for operators. And it's a practical way to unlock projects in this market. In the fleet and port segment, the demand is steady. In the fleet, you know, trucks, our first mega satellite flex in Sweden at Dagab's depot. In bus, I mentioned the Denver Public Schools. In ports, global container terminals that we are electrifying in the Port of Vancouver is a great example. We're immensely grateful for the trust that these customers are placing in us with their infrastructure and their electrification plans. Next, briefly, I'll talk about lifecycle solutions and aftermarket. These are our key priorities. And aftermarket, you know, we put a lot of focus on this, and it's showing results. Revenue's up 83% in Q3. That represented 8% of our revenue, which is double the share of what it was a year ago. And on a rolling 12-month basis, it has nearly quadrupled since early 2024, from about 5 million to 19 million euros. And why does this matter? I mean, these are higher margin recurring sticky revenues. And they grow with our installed base, which I just mentioned is growing at a pretty fast clip. Next, I'll talk about our cost programs, starting with product cost. Our product cost program that we've talked about for the last couple of quarters has delivered approximately 8 million euros of savings this year. And we're on track to exceed our target of more than 10 million. We had about $4 million at the end of Q2, so the pace has clearly accelerated. And where this is coming from, it's procurement, it's production, it's product design. And these reductions are helping us hold our gross profit margin, which you see this quarter was 45.9% versus 45.8% a year ago. This in the context of heavy price pressure and higher raw material costs. And this is a market that's very competitive. So this program is doing exactly what we defined it for, which is to defend and to grow our margins eventually. Next, I'll talk about fixed costs. This is where we're really stepping it up in this quarter. And we're resetting our cost base for 2027. In July, we announced and launched a program targeting more than 5 million euros of fixed cost savings. And in the current market conditions, we need to build a stronger earnings base for 2027. So we're increasing this fixed cost reduction target to more than 15 million euros. And savings from this program are expected to reach full run rate by about mid points or Q3 of 2027. And as part of this, we do plan to restructure our organization. And we've initiated change negotiations in Finland today. These are difficult but necessary actions and decisions. I recognize that these negotiations will be difficult for our people as well, and we'll conduct them with deep care and respect. Overall, together with the product cost reduction program, these cost actions will lower our break-even point and give us a stronger earnings base for 2027. And with that, I will hand it over to Juha Iatinen, who's our interim CFO, to take you through the financials in more detail. Juha.