ADS-TEC Energy PLC Q4 FY2021 earnings call

• The company develops and produces decentralized, smart storage-based platforms for the energy system transformation, not just a components supplier or charging company. - Key products include ChargeBox, ChargeTrailer, and upcoming ChargePost. - Identified vertical market segments in the US ($54B TAM) and Europe ($62B TAM) for platforms and services. - Expanding in the US, with plans to open a manufacturing plant this year. - Hired experienced managers from Porsche in areas like product marketing, quality assurance, etc. - Supply chain managed well, with efforts to find second sources for critical components.

In 2021, financial year revenue was €33 million, down from €47 million in 2020. The commercial industrial business had about €6 million in revenue, a 16% year-over-year increase. The service segment contributed about €2 million, an 82% year-over-year increase, and upper sources accounted for €700 thousand. About 186 charging units were sold in 2021. Geographically, 28% of FY21 revenue came from outside Germany, including new business from Spain, Ireland, and other European economic areas.

• Expect 2022 revenue in the range of €80 million to €100 million, backloaded to the second half. - Anticipate charging unit sales for 2022 in the range of 400 to 500 units. - Expect positive adjusted gross margin improvement in 2022. - Current cash on hand to support positive cash flow, with continuous monitoring of capital structure and growth opportunities.

• Risks include severity and duration of COVID-19 pandemic, supply chain issues, geopolitical challenges. - Lockdowns in China, interruptions of supply chains, cost and logistics inflation, war in Europe. - Potential delays due to customer-related factors like open permits, delayed approvals, and sub-supplier delays.

Q: How much money do we expect to raise through the warrant exercise?

A: Maybe we can collect this question and answer it later; it depends on warrant holders and stock price.

Q: Deliveries from usual suppliers continue to be pushed out further and further into next year. You mentioned having a U.S. factory this year, can we meet our deliveries in 2022 under the current circumstances?

A: We can produce units in Germany if needed. Delays may also be due to customer-side issues like permit delays.

Q: How do you avoid draining the storage to meet the needs of the electric vehicle?

A: The decision on using battery storage for charging or peak cutting is up to our partners who are 'future power companies' and optimize based on local operations.

Q: Of the 400,000 to 500,000 unit sales guidance, what portion is already secured in the backlog?

A: In our backlog, we have secured over 200 units.

Q: What differentiates ADS from the systems that are offered by Tritium?

A: Tritium offers standard chargers (AC-DC converters) without batteries or flexibility. Our platforms have battery buffers, no need for grid expansion, and additional features like advertisement screening.

Q: What impacts are supply chain and inflation difficulties having on the business in 2022, including your supply of battery cells?

A: Inflation is hard to predict. We have supply contracts for battery cells and expect to receive ordered cells. Commodity prices are up, but the business model remains attractive due to multiple revenue opportunities from the platforms.