Wallbox N.V.

Hello everyone and welcome to Wallbox's first quarter 2022 earnings conference call and webcast. My name is Charlie and I'll be the operator for today's call. At this time, all participants' lines have been placed in listen-only mode to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Analysts who wish to ask a question can place themselves into the queue by pressing star followed by one. I'd now like to turn the call over to Matt Trachtenberg, Wallbox's Vice President of Investor Relations. Matt, please go ahead.

Thank you, Charlie, and good morning and good afternoon to everyone listening in today. Thank you for joining us on today's conference call to discuss Wallbox's first quarter 2022 results. This call is being broadcasted over the web and can be accessed from the investor section of our website at investors.wallbox.com. I'm joined today by Enrique Asosian, Wallbox's CEO, and Jody Lyons, our CFO. Earlier today, we issued our press release announcing results from the first quarter 2022 period ended March 31st, 2022, which can also be found on our website. Before we begin, I would like to remind everyone that certain statements made on today's call are forward-looking, that may be subject to risks and uncertainties relating to future events and or the future financial performance of the company. Actual results could differ materially from those anticipated. The risk factors that may affect results are detailed in the company's most recent public filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20F for the year ended December 31, 2021, which can be found on our website at investors.wallbox.com and on the SEC website at www.sec.gov. For a more detailed description of certain factors that could cause actual results to differ, please refer to that 20F and our earnings release issued today. Please also note that we will be presenting unaudited financial statements in IFRS format that reflect management's best assessment of actual results. There is a reconciliation of adjusted to non-adjusted measures in the presentation as well. Also, a copy of these prepared remarks can be obtained from the investor relations website under the quarterly results section, so you can more easily follow along with us today. And finally, I want to point out that all results today are presented in Euro. This includes both quarterly figures as well as guidance. So with all that out of the way, I'll turn it over to Enrique.

Thank you, Matt, and thanks, everyone, for joining us today. In addition to reviewing highlights from the first quarter of 2022, I will also share some updates on key strategic initiatives, provide you with a view of the market, and offer some additional thoughts on Wallbox key focus areas in 2022. I will then turn the call over to Jordi, who will provide a more detailed review of our financial results before returning to communicate our guidance for the second quarter of 2022. We will end by taking questions from our covering research analysts. Despite a complicated geopolitical backdrop and continued global supply chain disruptions, Wobox continues to perform exceptionally well and exceeded expectations in the first quarter of 2022. I'm proud to share our record results, which highlight our continued commitment to executing our business plan. I want to thank our team for their hard work in helping to deliver on our commitments to investors, partners, and customers. We've been busy this year. At CES in January, we introduced Quasar 2, our newest bidirectional DC charger, specifically intended for the U.S. and European markets and compliant with CCS standards, and also expanded into Canada. We announced strategic partnerships in the U.S. like Napa Autopass, City Electric, and Polaris. and expanded the existing partnership with Uber in February and March. We celebrated the opening of our new Barcelona factory in April and continue to make progress on the Arlington facility today. Just last week, we announced our commitment to achieve net zero emissions of greenhouse gases by 2030 and released our first sustainability report. We are fortunate to have sustainability embedded into the DNA of what we do, but it doesn't end there. We strive not only to be technology leaders, but also in creating best-in-class ESG practices. We are proud to have already measured our Scope 1 and Scope 2 carbon emissions as a new public company and are determined to leverage our global platform to make an international impact. Looking to the financial results, first quarter revenue of 28.3 million euros was up 192% year over year. The outstanding performance was fueled by broad strength across much of Europe, with notable growth in the UK of approximately 200%, France of 280%, and the Netherlands of more than 330%, all on a year-over-year basis. North America continues to perform very well too, growing 10 times versus the prior year period, already representing approximately 9% of our global sales. In LATAM, Brazil is now driving solid results, generating more revenue in the first quarter of 2022 than all of 2021. Consolidated gross margin in the quarter was 41.4%, driven by improved cost control on key components, even in the face of global shortages. Component costs today are difficult to forecast because prices and availability often vary month to month. But I'm very pleased with the current quarter performance and believe it highlights our ability to navigate the uncertainty very well. Jordi will share more color in a few minutes on this subject. And finally, we sold more than 51,000 chargers in the quarter, with 84% in Europe, 10% in the U.S., 5% in APAC, and 1% in LATAM. Notable share gains continue to occur in Southern Europe, Sweden, and the U.S., with new markets like Australia, New Zealand, and Lithuania ramping up nicely. EV demand is stronger than anyone imagined, and governmental support, technological advancements, and consumer preferences are all coming to drive unprecedented change in the automotive and energy management space. As you can see, the first quarter of 2022 showed no signs of slowing down for either the EV market or for Woolworths. In the first half of 2021, more than a million EVs were sold in Europe, making up 17% of all car sales on the continent, up from 11% in 2020 and 3.4% in 2019. According to Bloomberg New Energy Finance, More than 200 million EVs are expected to drive the European roads in 2040, consuming a combined 456 kWh of energy. EV sales in Europe are expected to total more than 3 million in 2022, 33% higher than in 2021, and just under 1.4 million by the end of 2022 in the U.S., more than double the figure from 2021. This sea change of an industry occurs once in a generation, and it's incredibly exciting, not only to see it happen, but be a driving force behind it. While charging those vehicles is key today, energy management is equally core to our long-term strategy at Volvo. Our goal is to be at the center of the most important architecture consumers will manage in the future. An EV, when paired with renewable energy sources, controlled by smart hardware and software, will be critical to ensure we are prepared for a future where energy is less available and more expensive. Driving this vision is our belief that green energy is not being generated as quickly as is needed, and that energy from all sources will not meet the demand at peak load times. This presents some challenges to consumers, utilities, businesses, and public services in the coming 10 to 20 years. It will require that we, collectively, accelerate the adoption of alternative sources of energy, including solar and wind, and think more holistically about when and how that energy is stored and distributed. It will require that we use battery storage, leverage the batteries in our EVs to power our homes, and share excess power back to the grid rather than lose it altogether. The amount of energy storage capacity in the global electric vehicle fleet today is about 482 gigabit hours or 13 times that of installed stationary battery storage, according to Bloomberg New Energy Finance. RIT operators are aggressively looking for ways to incentivize and shift charging to off-peak hours. Tariffs applied to EV owners can drastically increase costs. However, effective use of energy management software can reduce expenses by analyzing the cost per kilowatt and grid loads, shifting to renewables, and even offering a revenue source as energy is sent back to the grid from home and fleet sources. We are able to provide this solution today, and it is expected to become increasingly important to our strategy going forward. The complex issue is one that is not going to solve itself, but one that we spend a great deal of time and resources on. You should expect us to know more about this and what expanded role we intend on playing in this future I described. To ensure we are prepared for that future, we need to build it in today, and that's exactly what we have been doing. Becoming a public company has enabled more than just the raising of capital. It has given us tools and visibility to attract world-class talent and accelerated global brand awareness, something that would have otherwise taken much longer to achieve. I'm very excited about the talent that business leaders were attracting, and I'm looking forward to the impact I know they will make. Any successful growing business must invest and expand to ensure they are able to meet the future market demand. The EV market is a prime example of a hyper-growth market. The opportunities are numerous, and our strategy is sound. But it must be driven by talented, experienced, and passionate people. At the end of the day, a company is only as good as its people, and world boxers are truly amazing. In the last two quarters, we've brought on a new CTO, a VP of People and Talent, and Matt to run IRG. We've also recently selected a plan director for our Arlington facility and brought on a new VP of service and aftersales. These additions come to us from leading companies like Tesla, Siemens, Autodesk, Schneider, and Cisco. The business process and rigor within the project and growth of the company allow us to operate at a much higher level than many of our peers. You can see it in our results. They are driving key initiatives, and I'm excited for you to see what they can do here. After sales is a great example of a strategic function we are building at Inron. The revenue opportunity and customer relationship does not end with the sale of a Volvo charger. In fact, it's often the beginning. Additional hardware and accessories, services, and support often follows closely and transform deals from one of purchases into a multiyear contract with various upselling and cross-selling opportunities. Ensuring that we have a strategy, team, and offering ready to provide, it all is enormously important, and one of that will contribute materially to revenue in future periods. We've brought on a very talented business leader to lead the charge here, and I'm sure you will hear more about them on future calls. The last topic I wanted to hit before Jordi takes over is that of our global footprint. Operating in more than 100 countries is challenging, especially as a young company growing at a fast pace. To enable this growth, the combination of engineering, operations, sales, and marketing must work in sync. Once a product is certified for a market, we first launch through strategic partners who are on the ground reselling, installing, or operating charge infrastructure. This is critical because they both understand specific local market dynamics and can rapidly scale distribution. We follow a market launch with investments to build brand awareness and accelerate sell-through at the point of sale. We understand that one of the biggest challenges facing the electrification movement is an educational challenge. If we can train our partners and provide them with the most attractive marketing materials, we convert them into local wallbox champions for our brand and for our technologies. We have seen compelling results with partners with whom we apply this model, improving both conversion time from lead to customer, seen by faster growth than accounts lacking this co-marketing strategy. This global footprint is also enabled through new manufacturing facilities in Arlington and Barcelona. It's enabled by new distribution centers we have in Canada, the U.S., Sweden, and the U.K. Our new centers in Toronto and North Carolina allow us to put inventory closer to the source of demand, which improves delivery time and reduces shipping costs. And it's enabled by an extensive global network of partners, installers, distributors, and OEMs. But the global market is really just a collection of local relationships. The local needs, regulations, subsidy requirements, certifications, relationships, and business practices are often what keep local players local, confined to a home country. That will work for a period of time, but eventually the customer, distributor, installer, or OEM will want to expand the relationship. What then? Find a second vendor, a third, a tenth? The commercial benefit we offer to these customers and partners to expand with them to localize products where we need to, while having global capabilities, is enormously powerful. It's something that is not easily replicated. A great example is Uber, with whom we started a pilot project in California to support an ambitious plan to electrify their fleet. A key to working with Uber was not just providing the hardware. but having the capabilities to offer the entire solution, hardware, software, installation, financing, marketing, and exceptional customer support. We have since expanded the program to the entire U.S., selling and installing chargers for Uber drivers all over the country. The program is now expanded to cover Canada as well. Iberdrola is another. With operations across Europe, our ability to offer them best-in-class DC fast charging solutions was a game-changer. This is why they've recently increased their purchase commitment by 20% to 10,000 units, which will include Hypernova, our 350-kilowatt public charger that will be available next year. While the benefits of a diversified footprint to operations and partnerships are clear, the benefits to revenue from a global footprint might not be. Individual countries have unique market characteristics, often influenced by subsidies and the amount of EV deliveries. Sometimes those subsidies begin and end sharply, which can drive variability in revenue country by country and quarter to quarter. The fact that we operate in more than 100 countries provides more revenue stability and consistency that would not otherwise occur with a concentrated footprint. Say differently. One contest performance in a period will not result in our consolidated results. This lower volatility should provide comfort to investors seeking high growth with more predictability. Now, over to Jordi to comment on our financial details.

Thank you, Enric. Good morning and good afternoon to everyone. I'd like to thank our analysts and investors for joining us today. Before I review the financials, I'd like to point out that as a foreign private issuer, we are required to produce a full set of audited financial results on an annual basis. These can be found in our recently filed 20F. Therefore, our intention is to provide you with key and audited financial and operational measures as we make our way through the year so you can remain informed of our progress. Like Enric, I'm very pleased with our record quarterly results. Our revenues, gross margins, number of units sold, geographic footprint, and headcount highlight the scalability of the business model and the strength of the EV market. For the first quarter of 2022, revenue was €28.3 million, a 192% increase from the year-ago period, driven by strength across all regions and products. Let me share with you some key highlights that allowed us to perform so well in the quarter. First, our regional mix, now with more than 100 countries, continues to improve upon the benefit of geographic diversification while providing additional regional and global partnership opportunities that Enric listed earlier. Second, new products and services like ElectroMaps continue to perform very well. growing revenue at more than 160% from the same period last year and highlighting a clear path of increased recurrent revenue. And as new vehicles come to market that can take full advantage of the unique benefits of our new DC solutions, we expect those products to contribute meaningfully. And finally, the investments in our partners' ecosystem are beginning to show promising returns. These relationships with installers, distributors, and retailers are key to our efforts of building strong and profitable systems partners who will help amplify our expansion efforts and build the global Wallbox brand. These committed investments, which represent a fixed percentage of our revenue each period, are put back into the system to improve education and training of these installers, distributors, and retailers to help them expand and grow their business and other marketing support and collateral. Gross margin was 41.4% for the first quarter, a strong performance given the inflation and supply chain issues we are all experiencing. The ability to quickly adapt to variability to component cost and select alternative sources, redesign product, or negotiate preferred vendor status has allowed us to effectively offset the impact of the inflationary environment we are all working through. I'd like to congratulate the manufacturing team on another amazing quarter. Adjusted in the loss for the quarter was €15.7 million, which includes the quarterly impact of items such as strategic marketing expenses discussed on our last call. Our balance sheet remains strong, with €157 million of cash and equivalents available, which we believe is enough for us to execute our strategic plans. We ended the quarter with €23.5 million of long-term debt. And during the first quarter, we hired an additional 104 employees, with a mix between all functions. As of March 31st, there were almost 1,000 Wallbox employees around the world, almost double the number from one year ago. With that, I will now turn it back to Enric to provide you with some commentary around Q2 and the full year.

Thanks, Jordi. Before we provide some insight on the second quarter and full year 2022, I wanted to share some thoughts on the current state of the market and what we see as both the risk and the opportunities. There is no doubt about the long-term opportunity of electrification and energy management. It is exceptional, and we are well positioned. In the shorter term, while there is always an efficient risk, that is not what keeps me up at night. What I'm watching closely in the short term is the ability of auto manufacturers to keep pace with demand. Appetite for EVs is off the charts, fueling part by high energy prices, consumer preferences, new technology that is accelerating price parity with ICE vehicles. government subsidies, CO2 emission taxes, and lastly, and perhaps most importantly, improving charging infrastructure. I do not believe these factors are going to diminish with time. This week, Volkswagen say that they are sold out of EVs for the rest of 2022, and this is not a function of component shortages. but time encouraged by their comments and other manufacturers, most of whom are now aggressively shifting investment and resources to prioritize EV production. In the short term, this inserts some uncertainty into the mix, but over a longer period, it's clearly an opportunity. Capacity will catch up, and that means that deliveries will occur, and that gives us confidence in our business plans. The second market observation I want to share is the shift between the DC fast charging environment. 150 kilowatt chargers are available today, and Supernova is a compelling investment for customers, given its reliability and price point. I expect it to perform well in many markets around the world, and I am encouraged by the significant backlog already in place. In the U.S., many of the subsidies focus on specific technologies that enable much faster charging in public settings. Products like Hypernova, which will begin at 350 kilowatts of power and increase from there, will meet this demand head-on. For this reason, you will see us shift North American manufacturing capacity to prioritize Hypernova, accelerating its time to market and capturing market share. I look forward to sharing more product details on customer wins as we make our way through the year. I offer you these gives and takes because it's important we share the context around how we arrive at our guidance. Our goal is to provide you with reasonable and achievable targets given the current landscape. We know that it's important for investors to understand the quarterly pattern of revenue and expenses, so we wanted to provide a bit more detail. As you will expect, at a fast-growing company like Wallbox, revenue in the second half of the year is much higher than the first half. often more than now. In 2021, approximately 62% of our annual revenue occurred in the second half of the year, and we will expect the second half of 2022 to follow a similar pattern. Additionally, we will closely watch how EV deliveries play out this year and if manufacturers can meet the strong demand we see in the market. We will share our thoughts on future calls with you. With that in mind, We expect consolidated revenues in the second quarter of between 35 and 38 billion euros, or growth of approximately 100 to 115% year-over-year. For the first half of 2022, this results in a year-over-year growth rate between 132 and 143%. Given the items we previously mentioned, including new product introductions and continued uncertainty within the supply chain, we expect growth margins of approximately 40% in the second quarter, in line with our full-year expectations. And we remain committed to the full-year 2022 target discussed last quarter of revenue between 175 and 205 million euros. representing an annual growth rate of between 145 and 190%. That concludes our prepared remarks today. We will now take questions from our covering analysts.

Welcome back, everyone, to our analysts. We ask that you pose one question with a follow-up if needed, and then re-enter the queue if there's more. This will allow each of you to ask a question up front, and we'll get to as many additional questions as time allows. Charlie, I think you had some additional instructions for everyone today.

Thank you. If you'd like to ask a question, please press star followed by one on your telephone keypad. If you'd like to withdraw your question, please press star followed by two. When preparing to ask your question, please ensure you're unmuted locally. As a reminder, that's star followed by one on your telephone keypad now. Our first question comes from Chris Schneider of UBS. Chris, your line is now open.

Thank you. Appreciate the question. I was just hoping for some additional color on the gross margin improvement. You know, Q1 came in almost 500 basis points above Q4, which is much stronger than we were modeling. Sounds like from Jordi's commentary, this is primarily driven by, you know, an improved cost structure. But can you just talk a bit more about some of the moving parts and what the team has done, and then also why the company's company can hold 40% gross margin? in Q2 as the cost environment is still quite challenging.

Thank you, Chris, and thanks for the question. Basically, there's two main things. One is the product mix. When we forecasted Q1 gross margin, we had a product mix that was focusing on lower gross margin products, and we have been able to sell the most added value products and the smartest products, like Commander 2 has increased in gross margin product mix, and Copper SV also has increased in the product mix, so this is one driver. And the second is that our manufacturing team and operations team and purchasing team have been able to navigate very well these last months and the last quarter with suppliers. We are more in the... top of the allocations list, we call it. That's when a supplier is deciding who gets a specific electronic component. We are prioritized by them. Main reason why is because we have been able to show them that we are a huge growth vector for them. So they see us as a huge opportunity. So big chip manufacturers are are prioritizing us and we are able to go to get components at the cost it should be. And maybe the last one is we, as we discussed in the past, We are always planning and working on achieve and improve our costs for our products. We have cost-saving programs for all of the products we have, and we are achieving them at the time we expected, which was at the beginning of this year, just to make sure the gross margin for full 2022 will be around 40%.

Chris, the only other thing I would want to add is that as you close the books, you know, there are always provisions and allocations that you go back and allocate to the months and the full quarter. And sometimes that changes the finished number, the final number. In this situation, in this case, that was a positive change. And so while we're happy to provide, you know, 41-plus percent gross margins, Sometimes those adjustments do bring up or sometimes bring the number down as we're sort of finishing the accounting, okay?

I appreciate that. Thank you. And then I guess for my second question, you know, when we look at the strong revenue ramp implied throughout the year, you know, both into Q2, but then, you know, even more so into the back half, but can you talk about what that implies for, you know, the DC fast charging production. I'm assuming that is a tailwind to that inflection we're seeing in the back end.

yeah exactly you're totally right so we have a geographical growth as we are seeing in the us you know we are going in the new markets where we are we grow in our ac charging products but definitely in the second half of the year and and also in q2 we expect uh uh fast charging to to be an important part of our of our review and our growth and it's the very positive side of this is that it's not really dependent on car deliveries. As I commented during the call, we are looking at car deliveries and we hope that car manufacturers can keep with the growing demand that we all expected. If that happens, that will be very positive for the market. But DC charging doesn't depend on that. You install the charger in the street, no matter if there's one car more or 10 more. So we see this as a more predictable revenue other than additional deliveries of cars that could impact Eventually we'll increase our market, but we don't know in the next quarter what will happen.

Thank you. Chris, know that every week more and more of our supernova comes off of the production line, and so certainly it's a ramp, and it's beginning to contribute materially as we make our way through the second half. So there's some of that there. But as Enrique mentioned in the call, the pattern, the revenue pattern as we make our way through the year is very similar this year to last year. And we didn't have supernova hitting the streets last year. So the pattern is similar, but certainly the magnitude is different.

I appreciate that. Thank you.

Charlie? Thank you for your questions, Chris. Our next question comes from Stephen Gengaro of Stiefel. Stephen, your line is now open.

Good morning. Good afternoon, everybody. Thanks for taking the question. So two things for me. One of the things that jumped out at me in the quarter was sort of the average price per unit. And I'm just trying to sort of think about the change versus the fourth quarter how much of that's mixed versus if there's any FX in there. And then as we think about the rest of the year and the mix evolving, you know, what should that look like as 2022 progresses?

Thank you, Stephen. Thank you for the call. So, as I said, the very positive is that the product needs to really improve gross margin. However, as we add new customers or our oldest customers grow in terms of volume per account, that has an impact on the average discount we give to them. So, we are seeing that uh our customers are growing as the market grows obviously we adapt depending on the market the discount we give to them but this has a slight impact on price but what we are what we focus on especially is on making sure that the gross margin stays at the number we want and we have been able to even increase on our on our forecast i don't know if that does answer the question or

I think so. You know, Stephen, it's important to remember that the product mix within countries, especially as those countries are growing faster than the consolidated number, also play a role in price and mix. And so in some countries where we haven't launched DC fast charging solutions and they're only selling AC products, As those countries grow faster, it's going to have sort of a downward pressure on price in the short term. But over the longer term, the entire product portfolio should be sold on a global basis. So that should come back into line.

Okay. So when you think sort of progression there that's sort of baked into your guidance expectations is what?

I don't think we necessarily look at product mix on a geographic basis and the price per unit on a geographic basis. I think that we talked about global diversification and the broad footprint allows us to have a bit of a more smooth effect to it. But look, I mean, selling one supernova or one hypernova, that replaces a lot of Pulsar Pluses or Pulsar Max, our new product, right? And so as that ramps up, you will definitely see a change in a per-unit price. I would say that the product mix is not yet material, but as we enter the end of the year, it's probably going to become more and more noticeable.

Okay, great. Thank you. And just the follow up I wanted to ask you just a point of clarification and a question. The $157 million in cash, is that a dollar or a euro number? And just the timing on Arlington, is it on track for completion as well?

Yeah. Hi, Stephen. It's Jordi. Thank you for joining us today. Well, let me just one comment. 157 million euros, not dollars, okay? Okay. And this is existing cash, existing cash and equivalents in the balance sheet of the company at 31st of March. In terms of Ablington, we continue with the works. We are paying as certifications are done in our factory, and we continue expecting to inaugurate in the second half of this year.

Yes, exactly. And we are looking into ways even to... accelerate the transition of some of the assembly lines in Arlington. We want to be more resilient in our operations, given all the things we've commented before. So, luckily, we have two assembly lines in Barcelona for our UL product. What we are doing is pretty soon we're going to ship one of the assembly lines in Arlington. So, we don't need to wait for the fully automatized assembly line that we ordered in the U.S. to be produced to start producing in Arlington. So, we are trying to push even accelerate more the assembly lines with all the assembly lines we have in Barcelona. while we wait for the new assembly line. And two, we are also accelerating the supply chain in NAFTA. So we have been meeting and already certifying many suppliers in the U.S. and in Mexico. So we are trying to build a fully resilient, very little dependent on Europe assembly line to keep with the growing demand in the U.S. And also, we are already starting to look on hypernova for the U.S., in terms of manufacturing moving into next year.

Great. Thank you, gentlemen. Thank you.

Thank you, Stephen. Our next question comes from Ben Callow of Baird. Ben, your line is now open.

Hey, thanks for taking my question. I just wanted to clarify, are you shifting production more to supernova in the US? And is it is it because of demand you see is my first question. My second question is just on on total visibility, just because you have such a strong second half. How do we think about your visibility here? And then my third question, sorry for that, it sounds like you're doing more on energy services or potentially, I don't know if that's true, or are you just talking about your customers doing more on energy services?

Okay. So, regarding that first, well, thank you, Ben. Thank you for the call, and thank you for attending. So, first of all, what we are selling today in the U.S. is Pulsar Plus 100%. That's the product we have available in the U.S. As we discussed in the past, we were planning to launch Supernova at the beginning of next year to start producing in our Arlington facility. What we've seen is that there's a lot of subsidies coming for higher power charging. Although we are already selling Supernova in Europe and we have lots of orders, we see a very short-term advantage of launching Hypernova in the U.S., okay? So the good thing of Hypernova versus Supernova is that it's the same software, it's the same hardware. The only thing that changes is that it has more power modules and there's a separated power unit. compared with a, there's a separated power unit in Hypernova and a dispenser, whereas Supernova, everything is confined in a single charger. But in terms of architecture, hardware, software is exactly the same and uses the same protocol, so it's very easy for us to launch the product. It's more an effort of, operations of industrialization and a little bit of certification, which we are not really worried for certification because, again, it's the same architecture and hardware than Supernova. So what we're saying is that instead of only prioritizing Supernova for our Arlington facility, we are going to make these assembly lines looking also into hypernova and even try to get hypernova available for some U.S. customers as soon as possible because we see a potential upsell with all the high power and big corridors that are being planned. So we see higher power charging as a good certain opportunity for the U.S. especially, and that's why in terms of operations we are going to accelerate hypernova.

Maybe the second question for you, Jordi. Yeah. Hi, Ben. Thank you for joining us today. Well, basically, in terms of visibility for this second half of the year, basically, the first of all, as Matt mentioned before, it's our historical pattern where approximately 60%, 65% from our yearly sales occurs in the second half of the year, and this is what we are forecasting. But also, not only that, also we are We are looking at the industry forecast, and what we are seeing is that, as also mentioned, those wagons have sold out all their production for this year, and it seems that if there are not significant deliveries in the cars industry, So we are looking at that in order to achieve our goal. Also conversations with customers and partners where we are seeing our forecast for second half. And lastly, also our backlog, including supernova deliveries for the second half. And then as a conclusion, we are quite confident to achieve this guidance for the full year in terms of revenues.

So maybe to add to what Joris said and reaffirm, basically we are following the same pattern as last year, but there's maybe an additional thing, which is Supernova deliveries and Pulsar Max, a new product also, that add to additional ramp-up of products and revenues in the second half of 2022. I'm going to the third question, and I will let you follow up with an internal clarification. About energy management, we see that the world is really changing in this regard. You know, all the energy prices that are going up, especially in Europe, but everywhere in the world, we see that people are starting to think more about not being as dependent on other energy sources and have solar panels at home or even store their own energy. So it's becoming more and more and more important. provide more value to our energy management functionalities in our chargers. In this direction, Quasar 2, we believe is going to be a game changer because it basically converts a car into a battery and it's connected with solar panels and basically makes you independent as an energy speaking. So what we've seen basically is an acceleration of the consumer preferences into energy management. We are seeing also that Almost every charger we sell activates some energy management feature. And we're also seeing that some countries, like the UK, are now passing regulations where they, by law, require energy management features activated in the chargers by default. So, for example, in the UK, starting the 30th of June, actually the 1st of July, it's mandatory that all chargers have pre-programmed a schedule to charge when energy is cheaper at night, and even having a random timing of start to make sure the grid is not put at stress. So people, energy costs, and countries and governments are pushing for energy management, so we are going to focus more and more to add more value to our products regarding energy management.

Thank you. Thank you, Ben. Our next question comes from Brian Dobson of Chardin Capital Markets. Brian, your line is now open.

Yeah, thanks very much for taking my question. So just quickly about your charging management software solutions, I guess could you speak to the long-term opportunity there for asset-like fees and, you know, how you ultimately envision that business evolving?

Thank you, Ryan. I love that question, actually. So, we all know that installing chargers in people's homes is a massive opportunity, and we are doing this, and today 50 more thousand users in the last quarter have installed our chargers, and that makes us be the first contact they have with energy management. A charger is perfectly positioned between the home and the car, which are the two main consumptions of energy that anybody has. Actually, the car is 50% of the home consumption, and the actual home is the other 50%. So the charger is between these two walls, and we are the ones that can manage both walls. And that's step one, you know, making sure that this car charges when energy is cheaper, that adapts to the power of the installation, or even charges when energy is clean. And that's the product we are selling today. But because we are adding this value to customers, Soon they think, wow, my energy bill or my energy consumption has doubled. I need to install solar panels at home. So when that happens, they make sure they use our products, and they can have an inverter that can work with our chargers, with our power. with our our our not 80 charges no so we make sure we we connect with inverter and we charge with solar energy and any excess is managed by by our platform by wallbox but then comes the next opportunity which is vehicle to home thanks to quasar and quasar 2 you can use in a single product you can have bi-directional charging which converts your car into a massive battery and that means that you can power your home with your eb battery for up to four days so it's a storage either backup generator it you can use it to charge when energy is cheaper and discharge when energy is more expensive and even you can use it as a solar inverter so that's the hardware plate but From today, every charger we sell is gathering data. It's providing these energy management functionalities. And we can start offering small fees for activating these functionalities, which allow customers to save money, that create recurrent revenue for us. Or even, we can create additional revenue with vehicle to grid. So now selling the energy of the car that has in the battery, selling it back to the grid. And we actually are doing all these things today. We are partnering with Octopus in the UK where we do vehicle-to-grid or we do vehicle-to-home with many of our thousands of customers that use Quasar. And the hundreds of thousands of customers that have Pulsar also use energy management. So it's not only converting all the hardware at the home to make it ready for energy transition, it's also all the software and all the recurrent revenues that will come from managing all this energy at the home. Thank you very much.

Thanks, Brian.

Charlie? We have a follow-up question from Chris Snyder of UPS. Chris, your line is now open.

Thank you, and thanks for letting me hop back in. I just wanted to follow up for clarification around the update that the company provided on the DC tax charge and purchase commitments and Iberdrola. So here's the question is, is the 10,000 units the total number of units on order or only the orders from Iberdrola? And if so, can you provide any color on orders from non-Iberdrola customers?

so the 10 000 units commitment has been given by the president of iberdrola only for iberdrola and this include includes supernova and hypernova chargers we keep having a very strong backlog of few thousands of units, around 1,500 units additionally to be delivered pretty soon for companies like COPEC in Chile, IGAC in Thailand, or many CTOs that are placing initial orders to test our products. And once they are happy, which we expect is going to happen pretty soon, we expect to increase their volume for their orders. But that amounts to 1,500 units more.

Thank you. I appreciate that.

Thanks, Chris.

Thank you for your question, Chris. At this time, we currently have no further questions, so I'll hand back over to Matt for any closing remarks.

Great. Thank you, Charlie. So thank you, everybody, for joining us today. We hope you found it a good use of your time today. Our next quarterly earnings call is going to be held in August, so check back with us. Also, please note that we have numerous investor events throughout May and June. So if you'd like to spend some time with us, please check the calendar of upcoming events or conferences, which begin as early as tomorrow, as a matter of fact. So reach out to us at investors at wallbox.com. Let us know if we can help you in any way. Have a great day, everyone.

Ladies and gentlemen this concludes today's call. You may now disconnect your lines.