Slides
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Kempower Q1 2025 InterimReport
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Q1 2025: Year started with a strong sales execution Tomi Ristimäki Chief Executive Officer Jukka Kainulainen Chief Financial Officer Monil Malhotra President, North America
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Key takeaways Q1 2025 Strong sales execution: Order intake grew 32 percent to EUR 59.4 million. Financial performance: Revenue growth was modest, and operative EBIT was in line with the expectations. • Revenue growth was modest as we started the year with lower order backlog for the first quarter. Record quarter for North America: Order intake from North America grew over 300 percent to EUR 10.3 million. DC charging market: • Strong growth in BEV registrations and DC charging installations in both Europe and North America. • Demand still affected by customers’ inventory levels. • We expect the market to recover during the second half of 2025. 43.5 EUR million Revenue 59.4 EUR million Order intake +2% Revenue growth Year-on-year, % +32% Order intake growth Year-on-year, % Q1 2025 key figures
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DC charging market • Significant growthin BEV registrationsin both Europe and North America. • Positive indicator for industry growth in the near future. • The market still weak for DC charging manufacturers, with customers’ excess inventories continuing to impact the demand. • DC charging point installations grew significantly in both Europe and North America. • Market for commercial vehicle charging continues to grow. • We expect market to recover during the second half of 2025. 251,500 330,000 Jan-Feb 2024 Jan-Feb 2025 +31% 266,000 296,000 Q1/2024 Q1/2025 +11% BEV registrations Europe North America
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Positive sales development • Kempower onboarded 11 new customers during the first quarter of 2025. • New customer acquisition from 2024 starting to show in order intake. • Order intake grew in Rest of Europe more than 50 percent, driven by Germany, France, Austria and Italy. • Order intake from North America grew more than 300 percent. • Commercial vehicle segment continues to generate significant share of revenue.
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North America
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Second record quarter in a row for North America • Order intake from North America was EUR 10.3 million, highest in Kempower history. • Over 300% growth compared to Q1/2024. • Strong performance in both US and Canada. • Strategic wins in private and commercial vehicle segments during Q1. • Strong sales pipeline to build growth both in US and Canada and customer sentiment is positive.
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North American market • Market is growing driven by growth in BEV registrations - sentiment towards BEVs is changing favorably. • Environmental Protection Agency (EPA) emission requirements will continue to drive the transitionto electric trucks. • Despite temporary slow-down in federal funding, the state level funding continues to support investments in charging infrastructure. • There is significant investment debt in charging infrastructure even with current BEV base. • In a fast-growing market like Canada, we are outperforming the market growth. New York Florida
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Our global setup with local supply chains mitigates the headwinds from the tariffs • Our setup with production facilities in Europe and US combined with local supply chains gives us operational flexibility and positions us wellin this situation. • We continue to monitor the situation — however, we expect tariffs could have only limited effect on our business.
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• After the review period we introduced Kempower’s enhanced charging solution with more power, more plugs, and more data. • The improved charging solution features a 600 or a 1,200 kW Kempower Power Unit connected to 12 charging points. • The updates are designed to meet the growing demands for efficient and scalable power solutions in various EV charging applications. Technological leadership
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Q1 2025 Financials
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Key figures during the review period *Operative EBIT = EBIT – items affecting comparability of operating profit/loss (items can arise from, e.g. external advisory costs related to capital reorganization & strategic projects) • Q1 2025 Financials were negatively impacted by modest revenue growth. • Fixed costs EUR 26.2m (EUR 30.4m) impacted positively by savings program implemented in 2024. • Improved Operating cash flow primarily driven by improved profitability-largely offset by an increase in trade receivables • Inventory decreased by EUR 5.4 million and is on the lowest level since fourth quarter of 2023. EUR million Q1/2025 Q1/2024 2024 Order backlog 106.5 111.9 95.0 Order intake 59.4 44.9 218.3 Revenue 43.5 42.6 223.7 Revenue growth, % 2% -24% -21% Gross profit 21.5 21.2 109.0 Gross profit margin, % 49.5% 49.8% 48.7% Operative EBIT -7.3 -10.8 -26.4 Operative EBIT margin, % -16.8% -25.4% -11.8% Profit/loss for the period -6.2 -8.8 -23.2 Cash flow from operating activities -7.5 -10.2 -23.4 Investments 1.8 4.6 18.8 Net debt -14.8 -58.7 -23.8 Total equity and liabilities 224.0 234.5 230.8 Headcount end of period 779 834 786 Comments
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Order intake on a good level CommentsOrder intake (EUR million) • Order intake grew +32 percent during Q1 2025 to EUR 59.4 million (EUR 44.9 million) due to strong sales execution. • New customer acquisition during 2024 contributing to order intake positively even though the customers’ high inventory levels still prevail. 7.1 37.4 26.9 61.4 44.9 59.4 55.0 86.3 54.1 65.4 60.9 51.5 61.7 66.7 67.8 2020 2021 2022 2023 2024 2025 208.9 275.3 218.3 +427% +459% +32% -21% Q4 Q3 Q2 Q1
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Low revenue for the first quarter • We started the year with low order backlog for the first quarter. • Revenue for Q1 2025 grew 2 percent and was EUR 43.5 million (EUR 42.6 million) and excluding foreign exchange impact growth was 4 percent. • Revenue from the Nordics and the Rest of the World increased during the Q1 2025. • Q1 2025 is the first quarter since Q4 2023 when we grew our top line. CommentsRevenue by geographical area (EUR million) 23.1 57.8 114.1 97.9 19.0 40.7 144.2 94.8 18.3 14.0 10.3 11.3 20.8 4.1 2021 3.5 1.6 2022 2023 2024 3.13.2 Q1 2025 27.4 103.6 283.6 223.7 43.6 +278% +174% -21% Nordics Rest of Europe Rest of World North America
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Profitability and cash flow development CommentsOperative EBIT (EUR million) Operating cash flow (EUR million) • Q1 2025 Operative EBIT and operating cash flow were negatively impacted by modest revenue growth. • Operative EBIT was EUR -7.3 million (EUR -10.8 million) impacted positively by cost savings measures started in the second half of 2024 and decrease in expected credit loss allowances. • Operating cash flow was EUR -7.5 (EUR -10.2 million) million impacted by improvement in profitability and was offset by an increase in trade receivables. • Own inventories on balance sheet decreased during the quarter by EUR 5.4 million and have reduced EUR 16 million from the peak in 2024. • We have maintained a strong overall liquidity of EUR 107.7 million (EUR 99.0 million). -2.6 -5.4 39.7 -23.4 -7.5 2021 2022 2023 2024 Q1 2025 1.0 6.7 40.7 -26.4 -7.3 2021 2022 2023 2024 Q1 2025 4.0% 6.4% 14.3% -11.8% -16.8%
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In 2025, the company aims to return to a growth trajectory as the DC charging market is expected to start recovering in the second half of the year. Kempower continues to invest selectively in its growth initiatives including growth in North America, growth in key countries in Europe and developing cutting edge technology. These initiatives enable Kempower strategy execution but weigh on profitability in the short-term. Kempower’s outlook for 2025 Kempower expects: • 2025 revenue is expected to grow between 10% - 30% (revenue 2024: EUR 223.7 million). • 2025 operative EBIT is expected to improve significantly from year 2024 (operative EBIT 2024: EUR -26.4 million).
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1) Operative EBIT = EBIT – items affecting comparability of operating profit/loss (items can arise from, e.g. external advisory costs related to capital reorganization & strategic projects) Kempower’s financial targets Financial targets Growth Profitability Dividend Revenue of EUR 750 million in the medium term (years 2026-2028) Operative EBIT margin of 10 percent to 15 percent reached in the medium term (years 2026-2028) and operative EBIT margin of at least 15 percent in the long term Short term: no dividends Dividend policy
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Q&A