ADS-TEC Energy PLC Q4 FY2023 earnings call

• Market trends: Grid expansion is a key challenge with high costs and delays, while EV adoption is growing exponentially. The transition to an all-electric world drives demand for flexibility in energy management.
• Strategy and USPs: Focus on core competencies, providing technology and services to future power companies. Not in competition with partners, similar to a platform model like Apple. Hardware, software, and services are developed in-house. Have over 1500 battery-buffered charging points installed, with field experience exceeding expectations.
• Financial highlights: Achieved EUR 107.4 million in revenues in 2023, and Q4 2023 pro forma adjusted EBITDA was positive at EUR 4.6 million.

In 2023, ADS-TEC Energy achieved revenues of EUR 107.4 million. The major product segments include ChargeBox and ChargePost. The company shipped and produced more than 2,500 charging points. Revenue contribution for segments wasn't explicitly broken down by percentage, but the focus was on battery-buffered charging points. For 2024, the guidance is to approximately double revenues to EUR 200 million and above.

• Reiterated revenue target for 2024 is EUR 200 million and above, aiming to double revenues from 2023.
• Expect a back-end loaded fiscal year with stronger second half, building on the positive Q4 2023 EBITDA result.

• Geopolitical issues such as economic turmoil, political instability, military actions in Ukraine, and conflict between Israel and Hamas.
• Grid expansion challenges including high costs, delays in approvals, and public acceptance issues.
• Market volatility with uncertain EV adoption trends and regulatory changes affecting infrastructure development.

Q: Can you provide details on 2024 guidance with respect to first half and second half revenue and EBITDA cadence?

A: Wolfgang Breme stated it's back-end loaded with stronger second half, not disclosing exact product numbers but expecting to double output.

Q: What's the feedback on ChargePost demand in the U.S. and supply chain challenges?

A: Thomas Speidel mentioned ChargePost introduction in U.S. is ongoing with NACS certification and UL, expected in Q1 2025 exhibition. No major supply chain issues currently but development changes are being addressed.

Q: Should we assume negative EBITDA in first half and positive in second half for EBITDA positive year?

A: Wolfgang Breme generalized it as second half likely stronger due to higher revenues, not expecting negative EBITDA like previous years.

Q: Will establishing a significant U.S. business include manufacturing in U.S.?

A: Thomas Speidel said plan to have local-for-local strategy in U.S. started with Auburn battery assembly, postponed due to NACS changes and NEVI uncertainties but plan remains to expand in U.S.

Q: What was the percentage of revenue from Germany in 2023 and change this year?

A: Wolfgang Breme said Europe was around 80% of revenue, Germany part of that, with U.S. growing 5x but still a small percentage, diversifying customer portfolio and countries.

Q: Talk about backlog and business pipeline, and NEVI funding impact.

A: Wolfgang Breme said backlog as of Dec 31 was EUR 80 million, pipeline larger than backlog. NEVI funding is an accelerator but not basis of business as it's neutral and subsidies can be taken away.