ADSE

• Achieved first-time positive cross-profit and adjusted EBITDA for full year 2024. - Service revenues almost tripled to EUR5.6 million, with customer base increasing by over 200% to 55 customers. - Renewed focus on CNI (commercial, industrial, utility scale) projects, including large-scale battery projects. - Strengthening partnership with existing and new customers, focusing on recurring revenues. - Expansion in North America with new customers like Corporation Parkland. - Ability to control the full stack (hardware, software, services) and focus on innovation. - Secured EUR50 million convertible note and extended shareholder loans for financial stability.

• Intends to strengthen partnerships with existing and new customers. - Aim to accelerate recurring revenues. - Continue to grow customer base across Europe, USA, and Canada. - Focus on a resilient business model with multi-revenue streams. - Plan to develop large-scale CNI projects in 2025, including a 500-megawatt project in Europe. - Potential for scaling own-and-operate business model with multi-revenue streams.

In 2024, ADS-TEC Energy achieved a revenue of EUR110 million, up from EUR107.4 million in 2023. Service revenues almost tripled to EUR5.6 million. The company reported a positive cross-profit and positive adjusted EBITDA for the first time. The gross margin improved significantly from -2.7% in 2023 to 70.7% in 2024. Operating cash flow improved from -$20.7 million to $16.3 million. Cash and cash equivalents ended at $22.9 million.

• Challenges from diverse and regulated market zones in Europe and North America. - Impact of political/regulatory changes (e.g., new governments affecting regulations). - Market pauses in some regions affecting installation delays. - Competition from large corporations in the energy sector, but sees opportunity in being a strong partner.

Q: What are some challenges and opportunities for companies like ADS-TEC?

A: Opportunities include ongoing energy transformation, growing need for flexibility in renewables and demand side, and return of EV market. Challenges include diverse regulated zones, impact of political/regulations, and market pauses in some regions. But ADS-TEC's ability to act and adjust to local needs is an opportunity.

Q: How do we see the competition with regard to the large corporations in the same business?

A: ADS-TEC sees itself as a strong partner to utilities, not trying to be a 'winner takes it all' corporation. Focus is on enabling others to participate in the business through technology. Regulation and politics play a big role, but big corporations look for partners like ADS-TEC.

Q: Can you provide some view on the financials for the large 500-megawatt project? Who has this been signed with?

A: The 500-megawatt project is under development. Sites have been secured, but it's not signed yet. Next steps include grid access application. ADS-TEC has history in CNI projects, like a 2015 commercial frequency regulation power plant for Starcraft.

Q: Could you expand on how the EUR50 million financing will only result in the number of new shares?

A: It's a convertible note. Price to be determined next month. First portion EUR15 million, remaining EUR35 million redeemed over 36 months. Secured for investing in own-and-operate business for long-term recurring revenues.

Q: Given the change in strategy, will impact the numbers short-term? Should we expect weaker short-term financials?

A: It's not a change in business model. ADS-TEC remains an eco-platform provider supporting customers. Own-and-operate business is an addition, not a change. Restriction is on production capacity and site access. Potential to scale multi-revenue streams, and existing partner business continues.

Q: How many operational charges you acquire and the deal where you acquired your customers, and related to that, could you say something about how many charges or sites to be run by yourself planning to develop in 2025?

A: Details under NDA. First sites are in three-digit numbers (above 100, below 500). Installation to proceed as fast as possible with funding. Potential to scale multi-revenue streams, and services offered to existing partners too.

Q: In a year or two, how much of the revenues do you see coming from power or energy trading?

A: Hard to predict, but flexibility is key in energy transformation. Market for flexibility is expected to grow. Examples like frequency regulation show flexibility prices can rebound. Multi-revenue streams including trading, peak shaving, and grid services will contribute.