ADS-TEC Energy PLC Q4 FY2022 earnings call

Management Statement and Operational Highlights:

• Product Portfolio: Highlighted ChargeBox in the field, ChargePost launched in 2022, and updated PowerBooster/Storage Rack Systems.
• Business Model: Emphasized a platform business model providing hardware, software, and services for long-term partnerships with customers.
• Supply Chain: Overcame supply chain issues in the second half of 2022, producing systems and performing services despite challenges.
• Strategic Focus: Focused on Blue Chip partners and strategic customers, aiming to scale with customers integrating platforms into their software.
• Operational Highlights: Launched ChargePost as planned, shipped first systems to initial customers, and concentrated on strategic partners.

Segment Performance:

• ChargeBox: Battery-buffered Supercharger, well-received with multiple customers including for electric boating.
• ChargePost: Battery-buffered charging solution launched in 2022, all-in-one with advertisement screens, well-received by infrastructure investors.
• PowerBooster and Storage Rack Systems: Commercial industrial business with updated and expanded portfolio, starting to deploy new systems in 2023.
• Revenue Contribution: In 2022, charging products (ChargeBox, ChargePost) accounted for 74% of total revenue; commercial and industrial product service and others were 26%. Geographically, 74% of revenue came from Germany, and 26% from other European countries and the United States.

Guidance:

• 2023 Revenue: Expect to exceed €100 million, supported by a strong order book of €90 million in binding orders from quality customers.
• Profitability: Anticipates break even to positive EBITDA.
• Shareholder Loan: Secured a $12.9 million unsecured shareholder loan, strengthening the balance sheet.

Risks:

• Supply Chain Issues: Previous challenges with components, although the supply chain has been redesigned.
• Geopolitical Factors: Impacted by the war in Ukraine and geopolitical challenges affecting operations.

Question and Answer: Q: Outlook for 2023 revenue, original 2022 projection A: Last year faced supply issues, but 2023 expects over €100M revenue with a strong order book.

Q: Geographic mix in 2023 revenue A: US expected to be 10%-15%, Europe with Germany, other European countries including UK.

Q: Residential energy product update A: Not stopped, but observing the market as focus is on business partnerships with services and long-term cases.

Q: Incremental capital needed for free cash flow positivity A: No plan to raise additional equity if goals are met.

Q: Reason customers not picking up orders from Alabama A: As an infrastructure business, customers in the US faced issues with site acquisition and funding.