ADS-TEC Energy PLC Q4 FY2022 earnings call

• Product portfolio: ChargeBox is in the field, well-received, used in various mobility areas including electric boating. ChargePost, a battery-buffered charging solution, launched in 2022, easy to install with additional revenue streams from advertisement screens. PowerBooster and Storage Rack Systems are the commercial industrial business with updated portfolio. • Operational highlights: Overcame supply chain issues in second half of 2022, produced systems and performed services of €45.6 million from European factory. Successfully launched ChargePost as expected in 2022. Focus on strategic Blue Chip partners and customers, sales cycle is long-term. • Customer examples: Working with JOLT, which received funding and new orders for ChargePost. Have a leading rental car company taking first units. Signed framework agreement with a Blue Chip oil and gas company. • Utilization proof: ChargeBoxes in various sites have high utilization rates, battery-buffered chargers can provide high power and utilization, shown with data from charging sessions.

In 2022, the majority of sales were from charging products (ChargeBox and ChargePost), which accounted for 74% of total revenue. Charging products included ChargePost, which was launched in 2022. Commercial and industrial product service and others were 26% of total revenues. Geographically, 2022 revenue was 74% from Germany, and 26% from other European countries and the United States. Full-year 2022 revenue was €26.4 million, down from €33 million in 2021. Gross profit was negative €4.5 million in 2022, down from negative €2.3 million in 2021.

• 2023: Expect revenues to exceed €100 million, underpinned by strong order book of €90 million in binding orders. Expect break even to positive EBITDA. • 2024 and beyond: Anticipate substantial growth driven by strong customer dynamics and market trend. • Shareholder loan: Entered into unsecured shareholder loan of $12.9 million, strengthening balance sheet.

• Supply chain issues: Major components shortages affected production in 2022. • Geopolitical challenges: War in Ukraine and other geopolitical factors could impact business. • Customer-related: Some clients not taking products by end of 2022 due to various reasons in infrastructure business.

Q: Of the €100 million of revenue that you are expecting, how much was originally supposed to have come in 2022?

A: Thomas said they were conservative last year due to units produced but not yet delivered to customers.

Q: Can you share how much revenue approximately you had in the March quarter?

A: Wolfgang said they are not sharing quarter information yet as they just finished fiscal year audit.

Q: What is the geographic mix that you anticipate in 2023 revenue between Germany, other Europe and U.S.?

A: Thomas said U.S. expected to be 10% to 15%, Europe distribution between Germany, other European countries including Switzerland, Austria, Great Britain etc., but detailed share not known as customers have sites and installation locations not specified.

Q: Can we get an update on the residential energy product?

A: Thomas said it was on lower priority in 2022 due to resource issues, now observing home market as off the shelf products from Asia kick in, will enter business partnerships where full scope including services is involved.

Q: In your pathway to sustained free cash flow positivity, how much incremental capital do you foresee needing?

A: Wolfgang said they do not anticipate any increase in equity in foreseeable future if goals are achieved.

Q: Could I get a little bit more color on potentially why customers were not picking up orders from Alabama?

A: Wolfgang said some customers in U.S. not picking up products as infrastructure business has cases where customers not successful in acquiring sites or funding.