Welcome to the Pod Point full-y ear 2023 results webinar. All attendees are in listen-only mode, and at the end of the presentation there will be the opportunity to ask questions. This webinar is being recorded. I now hand over to Andy Palmer, CEO, and David Wolffe, CFO. Andy, over to you. Thank you. Good morning, everybody, and welcome to Pod Point's full-y ear 2023 Results presentation. I'm Andy Palmer, I'm CEO of Pod Point, and I'll be joined today by David Wolffe, who's our Group CFO. As you all know, I've been interim CEO of the group since the middle of last year, and have worked very closely with the board and the executive team to do two things: firstly, to bring strategic focus to Pod Point. This work culminated in the Powering Up strategy that was presented at our Capital Markets Day in November last year. Secondly, to bring more operational grip and control to the group. We will cover a lot of the details during today's presentation, but let me be clear: we're making great progress, and the Powering Up strategy is indeed delivering. We remain very confident that the group has the right strategy. That said, we are still only at the start of delivering our strategy, and we have a lot more work ahead of us. We're focused. We are delivering. We will continue to deliver. As importantly, we're delivering on our promises. Our financial results are slightly ahead of our guidance. We upgraded our guidance in November, and we've come in better. Furthermore, you'll see we're making strong progress against the nine operational targets we set at the CMD. Last month we announced the appointment of our new CEO, Melanie Lane. Melanie will join the group on 1st May, and the board are very excited about her arrival. She's had a fantastic career to date and brings a wealth of experience in energy transition and delivery of strategic change. Mel's been getting up to speed and spending time with the senior leadership team, and I know she's looking forward to meeting with our shareholders in the months ahead. I will be moving back to the board, and I'm looking forward to taking on the role of Chairman for Pod Point. With myself, David, as CFO, alongside Pilgrim Beart, who's Head of Flexibility or Flex, and Arjan van Rooijen, our CTO, there is continuity in the team that constructed and presented Powering Up to you last year. See Slide 2, and please note the disclaimer. Turning to today's agenda, I'll provide a summary of what we've achieved in 2023, how we're delivering on our promises, and the strong momentum that we've seen during the second half of the year. David will then provide a full review of our financial performances in 2023, and then I'll return to discuss our strategic focus, our priorities, our outlook, and our summary. We'll then be happy to take your questions. In terms of our financial highlights for 2023, our full- year numbers are ahead of guidance that we gave at our interims and that were upgraded at the time of our CMD in November. Clearly, performance was soft in half one, but we've built momentum since then. Net revenue was GBP 63.8 million, which is down 11% compared to 2022, a year that saw a major boost from the OZEV scheme. Our H2 performance was up 11% compared to H2 2022, which I'll come back to. Gross margin was up 700 basis points to 30% for the full year. Yes, you heard me right. That's seven percentage points up. I think this has been a fantastic achievement by the business and that we have more to go for. David will come back with more details on the drivers of this performance. Adjusted EBITDA loss was GBP 15.3 million for the year. While slightly better than our guidance, this is a disappointing performance and should mark the low point in our results. Cost discipline was poor, and that is now being addressed through our transformation plan. Net cash ended the year at GBP 48.7 million. Our cash management has been very good. David and the team have done a great job here. Lots of great disciplines have been embedded into our business. On this slide, you can see that across a series of financial metrics, the business has seen a dramatic change of momentum in the second half of 2023. While Powering Up was only formally launched towards the end of 2023, we actually began the implementation of the strategy at the end of August. As promised, back at the interim results, we made some rapid changes to how we operate, bringing much greater discipline and a culture of accountability. These changes have led, as you see, to early gains. In the top left-hand chart, we show revenue growth. After a disappointing H1 with revenue down 26%, we returned to a year-on-year growth in the second half of the year up 11%. Growth returned despite us not having addressed all of our challenges, so clearly there is more to come. On the top right, you can see our gross margin improved by 900 basis points in H2 compared to the prior year. As I mentioned earlier, our gross margin was strong across the year, albeit improved at a slightly higher rate in the second half. On the bottom left, we show revenue for the Home segment. Our Home performance made difficult reading in H1, down 54%. However, I'm pleased to confirm that we've returned to growth, albeit modestly, in the second half at +3%. Finally, on the bottom right, we can see our cash burn performance. Cash burn improved by GBP 5 million during the second half compared to the first half. Our cash management disciplines become well embedded in the second half. We should see further improvements in cash burn in 2024 despite further exceptional cash costs relating to our transformation program. For those of you that joined our Capital Markets Day back in November, you'll recognize this slide, which is a summary of our Powering Up plan. At its core, we're aiming for 1 million customers by 2030, which will result in significant revenue growth for the group. The three pillars of our strategy are a focus on Home and Workplace segments with capital-light growth internationally. Second is the rapid growth of Flex and recurring revenues, which will turbocharge our customer lifetime value. Finally, we're taking out costs to improve our gross margin and our operating cost base. The plan will ensure we deliver attractive financials with double-digit EBITDA margins, high recurring revenues, and attractive free cash flow generation, which we believe will drive long-term value creation. Next Slide. We've built strong foundations during 2023 to support the Powering Up strategy. For Home and Workplace, our brand strength has remained high based on reports from YouGov, Ipsos, and excellent rating with Trustpilot. Customers like and trust Pod Point. We act as a consumer champion, and we were awarded the Which? Trusted Trader status, the only charge point provider with that status. We've signed many new partnership deals during the year, including Redrow, Barratt, Roadchef, Group 1, and Knight Frank. We also renewed many contracts, including Mercedes-Benz, JLR, and Lex Autolease. We have, perhaps more importantly, maintained our market leadership position in terms of our installed base. We ended the year with over 226,000 installed charge points. On Flex and recurring revenues, again, the story of 2023 is one of good progress. We delivered our first revenues for Flex, far, far, far exceeding our internal target. GBP 39,000 is significant as it demonstrates Pod Point's ability to deliver and to execute pound value to the P&L. We have critical scale, and just as with Home, we've signed multiple commercial agreements for Flex, including with Centrica, EDF, and UK Power Networks. And we have multiple real-world trials underway that are delivering us recurring revenues today and providing significant future upside potential. On cost out, we've already delivered the first phase of our transformation plan, and the second phase is underway. These actions mean that we're on track to delivering our GBP 6 million target saving. The 700 basis point improvement in gross margin shows costs are coming out of our BOM and our installation costs, and we remain confident in our target of a further 500 basis point improvement by 2025. Finally, we've started to simplify the group's structure with the exit of some non-core activities. It's been a busy year for the business and the teams, and I'm pleased with what's already been achieved, knowing clearly there's still a lot to do. Next slide. Continuing with the theme of delivering on our promises, I want to provide an update on our progress against the nine operational targets that we set for 2024. We told you that we would set the targets and allow you to monitor them. As you see here, we've made great progress already with four of our nine targets already delivered in the year. Furthermore, we're on track for the other targets to be delivered in 2024. On focus on Home and Workplace, we've returned Home to growth. We delivered this in H2 2023, and we've seen growth year- to- date. Arch 5, our new charger, is now in volume production and will be launching into the market in the coming weeks. For our international rollouts, we're on track for launching in two markets this year, and I'll come back to this topic in our second section. On Flex, as I said, we're really pleased with the further momentum that we are seeing and have already delivered two of our three targets. We have successfully entered a new segment of the Flex market, the balancing mechanism market, through our Centrica trial. We're now playing in the local constraint market, wholesale trading, and balancing mechanism segments. Secondly, we've already hit our six-figure revenue target for the year. As you'll have picked up from our results announcements, we have now increased our revenue target to be at least GBP 300,000 in 2024, up from the original GBP 100,000 that we committed to. Finally, we're on track with the launch of our customer proposition. On cost out, we're on track to deliver both our organizational transition and the GBP 6 million annualised cost saving. We completed the first part of our redundancy program earlier this year, and I want to thank all of my colleagues for managing this program professionally and indeed with sensitivity. Cost out programs are never easy, but this program is critical for the long-term success of Pod Point. Next slide. To conclude, we think we have a lot to be pleased about in terms of what's been delivered in 2023. We've made honestly a really good start on the journey. Powering Up our transformation strategy was launched, setting out a clear strategic direction for the group that is focused on Home and Workplace in the U.K. and in International markets via a capital-light partnership approach. We'll be accelerating our customer lifetime value flywheel through Powering Up. 2023, slightly ahead of guidance that was set back at the interims and then upgraded at the Capital Markets Day, and we've beaten on revenue-adjusted EBITDA and net cash position. Delivered a strong improvement in H2 2023. As I showed you earlier, we've demonstrated strong momentum in H2 across a number of measures: revenue growth, performance at Home, gross margin, and cash burn. Our cost out program is on track. We're making progress and taking full advantage of our strong partnership with Celestica, who manufactures for us. Finally, we're showing strong momentum with Flex. Our 2023 revenues are ahead of plan. We've signed some great contracts, and we're taking advantage of our leading market installation base in long-dwell charging. So at this point, allow me to hand over to David, who will take us through the financials. David. Thank you, Andy. Starting with the P&L and working down, revenue at GBP 63.8 million is 11% down for the full year, but this is improved from the 26% decline we reported at our interims and reflects a second half actually up 11% on 2022. 2022 as a year included the uplift of the OZEV grants coming to an end and the resulting pulling forward of demand. So the comparatives are challenging, especially in Home, which was down 35%, but all of the other segments were still in positive growth. In Commercial, we have continuing positive growth on 2022, which stood at 3% up at the first half but has increased to 7% growth for the full- year. U.K. distribution, where we sell units into the wholesale market and to house builders, continues well with growth at 26%. Owned assets growth of 97% reflects the fully annualized impact of completing the Tesco rollout. Clearly, the most significant issue here is in the Home segment at GBP 27 million, down 35% for the full- year. But here we are seeing some positive progress with RPU growth of 5% and revenue growth returning to the second half, where we move to positive 3% growth after that sharp decline in the first half. Although volumes were down, we are continuing to see material improvements on gross margin percent, up by 700 basis points to 30.2%. This is driven by progress on a number of fronts, which I'll come back to in more detail in just a moment. As a reference, this margin of 30.2% is higher than where we were in 2021 at 27%, which was before the supply chain economic pressures. Margins improved across all core segments, with Home now up to 28%. The overall revenue reduction combined with a higher overhead base. We call this out explicitly at the Capital Markets Day that costs in sales, marketing, customer service, and tech had got out of line with revenue, and our cost out programme only takes effect progressively during 2024. So that combined takes adjusted EBITDA to the GBP 15.3 million loss. The loss before tax at GBP 83.2 million includes a non-cash goodwill impairment charge of GBP 53.2 million, which reflects the strategy of focus away from some parts of the commercial market. Not only did we see progressive improvements in the second half year-on-year, but we saw momentum in the second half over the first half within 2023. Overall, the second half was 8% up on the first half, with U.K. Home up 17% and driving most of that growth, with Home units up 16%. Energy Flex appears for the first time in the second half at GBP 39,000, and overall recurring revenue, where we collect monthly fees for being on our network, that increased by 48% over 2022. The gross margin improvements, as I mentioned, were across all core segments, with Home up to 28%, a level back up to where it was before the supply chain economic pressures. So onto the evolution of gross margin percent within that headline of 700 basis points of improvement. As I said before, we've been making progress across several areas. The total moved from 23%- 30%, and while a big driver of that improvement was the elimination of the additional supply chain costs and sourcing of components, that represented a margin uplift of 4%. But we also delivered some bill of materials and efficiency improvements of 3%. We've driven a 2% uplift in gross margin from price increases and that RPU increase of 5%. But there was a relative shift in the revenue mix towards lower margin commercial business that reduced overall margin by 2%. We see this overall margin improvement as very positive progress, and we're expecting further margin improvements into 2025 in line with the Capital Markets Day commitment of a 500 basis points margin gain by the end of 2025. Looking then directly at that decline in adjusted EBITDA from a GBP 7 million loss in 2022 to the GBP 15.3 million we're reporting now, the picture reflects a net GBP 2.5 million improvement in gross profit contribution from the operating segments. But that's outweighed very significantly by the increased spend on scaling the business that we've said was out of line with revenues and hence our cost out programme. The gross margin percent improvement in Home mitigated the year-on-year volume reductions and led to a drop in profit of only GBP 0.4 million from that segment, while the other segments grew gross profit by GBP 3 million. However, the GBP 10.4 million of increased spend across tech, customer service, software, sales, and marketing clearly was not matched by revenue, hence our commitment to reducing overheads on an annualized basis by GBP 6 million by the beginning of 2025. Looking at cash utilization in the year, we continue to demonstrate steady cash management. Closing cash sits at GBP 48.7 million, so total use in the year was GBP 25.4 million, of which the second half was GBP 10 million. The main component of that utilization after the GBP 15.3 million EBITDA loss was the invested GBP 11.5 million in capitalized development, where we've been working on product and software development, and that represents a small increase on the GBP 10 million that we invested in 2022. Owned asset investment was just GBP 500,000, which reflects the end of the Tesco rollout and that this segment is no longer a focus for the future. Cash management discipline comes through in the GBP 6 million improvement in working capital. Here we are maintaining a tight control on stock and ordering in response to what has been reduced revenue in the year. We will continue to exercise careful cash management so that our strong balance sheet gives us the resources and time to fully execute the Powering Up program. We talked at the Capital Markets Day about our strategy centered on the advantage of scale, driving a virtuous circle around customer lifetime value, and we wanted to say a little bit more about it, especially in the light of our high margin Energy Flex recurring revenue stream starting in the second half of 2023. We're now managing the business through the lens of customer lifetime value. As a home charge point customer with a Pod Point on their wall leads to a long continuing stream of Energy Flex value. So we're moving the business from a one-off margin to a recurring revenue model. Conceptually, it looks a bit like this, and these numbers are illustrative at this early stage in our business's transformation. When we make a home install, we make an initial margin based on an RPU of around GBP 800 and a gross margin of around 30% at present. We say that a Pod Point might have a useful life of seven years in line with outdoor electrical equipment, but it could be longer. Across that life, we expect to drive Energy Flex high margin revenue, which is now actually starting to flow, and we said we estimate that to be in the region of GBP 40-GBP 50 per charge point per annum as the share coming to Pod Point. An acquisition cost might typically arise when we could make a GBP 100 discount offer, as we did in March, and promote it on social media, resulting in a total cost of, say, between GBP 125 and GBP 150. There will also be some annual support costs to cover too. Now, I'm not going to translate all of these numbers into a single net figure for you now because our transformation and Flex evolution is at an early stage and will change somewhat over time. But if you do the math, you can see that there's substantial customer lifetime potential. And as we aim at a million connected customers, there's also substantial enterprise value potential too. So the outlook for 2024. And at this stage, we are maintaining the full- year guidance that we laid out at the Capital Markets Day on the headline financials. That's revenue around GBP 60 million, an adjusted EBITDA around a loss of GBP 14 million, and year-end cash ending around GBP 15 million without drawing on the EDF facility. And within those loss numbers and cash consumption numbers for the full year, we would expect to see a greater emphasis on losses and cash consumption in the first half relative to the second half. In getting to those overall headline financials, we are putting our Home segment firmly back into growth, which will offset the orderly exit from our non-core segments. However, we are upgrading expectations on the Energy Flex business. We'd previously guided to around at least six figures, and we're now increasing that to around GBP 300,000 for the full year. And with that, I'll hand you back to Andy. Thank you, David. So you've heard from David about the progress that we made. So let's remind ourselves of why we think Pod Point is a truly exciting story. We have permission to be winners in this exciting and growing market. The energy transition market is big today, but it will become huge. We have revenues today from Flex, and new contracts are agreed. Our strategy is built around our core strengths. We have a transformation program to ensure that we deliver on our plan with self-help cost out and low-risk international growth. Over time, we have a significant amount of high margin recurring revenues and Energy Flex revenues, and we have a clear path to profitability and sustainable positive cash flow. Importantly, we have sufficient funds to deliver on this. The company is holding itself accountable by setting clear KPIs upon which we are delivering against. Next page. Our customer lifetime value flywheel is shown here. You may remember it from the CMD. It's built on the basis of a strong and trusted consumer brand, and our differentiated strategy and key advantages are reinforced by EDF. Our brand and our diverse routes to market bring new customers into our network. The growth of our network creates more options in terms of Energy Flex. We can then reinvest the gains from the Energy Flex market into our customer proposition, hence making our brand and network more compelling. EDF can enable faster growth in terms of our network as a distribution partner in European markets, as well as providing expertise in the Energy Flex market. The previous Pod Point leadership team did not take advantage of these capabilities. We will. Next page. The output is attractive. We're setting an ambition of having 1 million customers in our profitable network. High growth. We see a 20%+ CAGR for revenues and a 4x increase in our customer base by 2030. We'll build out our high margin recurring revenues, 25% of the group revenues from recurring revenue and Energy Flex. Next page. Here we show industry expectations for growth and installed base of chargers across the U.K. segments. Home remains the largest and most significant segment throughout the period. Workplace shows the fastest growth, albeit from a lower starting point. Combined, we're focused on 60%-70% of the U.K. market. In addition, there is product commonality across Home and Workplace. There are other segments that, on the face of it, look attractive in terms of size and growth, but there are significant operational and technical complexities with the other segments. Furthermore, the long dwell time of the Home and Workplace segments makes them especially attractive from an Energy Flex opportunity point of view. Next slide. This year, we will deliver further progress on strategic execution of our three pillars, which will drive long-term value creation. In Home and Workplace, we will be driving incremental volume. We will have our new product in the market. Our sales and marketing will be improved, and we'll have launched in two international markets. In terms of Europe, we're now expecting to launch in France and Spain. You'll recall from the CMD that Spain, in particular, is a highly attractive market. In Flex, we have a dynamic and active year ahead. We'll continue to enhance our customer champion brand credentials with further targeting and selected brand advertising and continued operational enhancements to our installation process. We'll build out our Flex commercial partnerships and technical integrations. It's worth remembering that we will only need limited tech and capital deployment to capture further Flex revenues. Our teams will continue to explore and assess workplace recurring revenues, and we will continue to assess double Flex and triple Flex ecosystems via solar and battery. Cost out will be a key focus to ensure that we deliver the GBP 6 million of annualized cost savings by the end of this year. This will include the orderly exit of non-core activities, the completion of our restructuring programs, further gross margin improvements via BOM savings, in part from volume gains, as well as tech development spend reductions. 2024 is expected to be a high point on capitalized R&D for the next few years. Next page. I did cover this earlier, but I think it's worth repeating. I think it's important that we all remember that this is a business that is now delivering on its promises. As CEO, I'm proud of how much progress we've already made in the few months since launching our newly focused strategy. As we go through the year, you'll see more and more progress against all of these objectives. Next page. In summary, we've delivered in 2023. We saw a step change in performance in the second half, and our gross margin and Flex revenues are coming through, really demonstrating the business model. The closing cash balance remains healthy, and we have further liquidity available in our GBP 30 million credit facility, which I emphasize we do not plan to draw. We're executing on Powering Up, a strategy that is reinforced by our relationship with EDF. We've already hit four of our operational targets for 2024, and the others are on track to be delivered. With Flex revenues well ahead of a target and our gross margin improving, we are pulling all of the key levers to drive our customer lifetime value. Our leadership team is being strengthened. Next page, I think. A new CEO joins on the 1st of May, and our new COO coming from EDF is now in place. We've appointed a new Chief People Officer and Chief Revenue Officer replacing the current interims, and they will start in the next few weeks, further strengthening our leadership team. I'll be moving to Chair, and David, Pilgrim, and Arjan provide executive continuity in terms of our strategic direction. There's a slide in the appendix which we're actually showing here, showing our strengthened leadership team. I think you can see the persuasive argument for both the new team and the existing team, strengthening our team and showing continuity throughout the Powering Up period. Everyone at Pod Point firmly believes that the long-term future is really exciting. EV penetration is increasing despite some near-term challenges, and demand for Flex is increasing. We have the right ingredients for success, a great brand, wide-space or widespread partnerships, and an existing leadership position. As you saw at our CMD, our long-term growth and profitability potential remains really attractive. Thank you all. That now concludes the formal presentation, and David and I will answer your questions. If you could keep to two questions and state your name and company you work for, please, that would be really useful. So can we now go to the first questions? Thank you. Thank you very much. To ask your question, use the raise hand button or type your question by clicking on the Q&A button. If you've dialed in on your phone, dial Star nine. The first question is from Joe Brent at Liberum. Joe, do you want to unmute yourself? Go ahead. Thank you. Good morning, gentlemen, and it's Joe Brent at Liberum. I'll stick to the two questions and maybe take them one at a time. Firstly, you very helpfully give guidance on where the margin progress has come from. Could you give similar guidance as to where the future gross margin improvement will come from? Shall I pick that one up? Yep. Yeah, so we've talked about a further 500 basis points of improvement by the end of 2025, and we see further progress coming through in four areas. Firstly, on bill of materials, as we progressively bear down on component and sourcing costs, working with Celestica, we see some further progress on bill of materials costs. On installation efficiency, we have a program that will drive further efficiency in how well we use both our in-house installer team and how well we work with contracting partners. We'll see some of the mix effect that dragged down margin in 2023 push margin up as our Commercial business becomes a smaller part of the overall mix and Home becomes bigger. And we also will see some price improvements flowing through into better margin. We have our Arch 5 product, which is OCPP compliant and has solar integration in production right now and will be on the market in the next few weeks, driving a higher price point and higher overall margin. So we see all four areas giving us good confidence that that 500 basis points of improvement will land. Thank you, David. That's wonderfully clear. And if I could move on to cash, I think you gave some good guidance talking about GBP 24 million of 2024 cash of GBP 15 million. I think talking about cash positive in 2027, if I heard correctly, you have no plans to draw on the facility. Where do you think the cash will bottom out? Before we get to cash positive in 2027, we see cash flow progressively improving from 2025. And that's coming out through a number of levers. Firstly, adjusted EBITDA losses will be coming down next year. We won't have the GBP 5 million of restructuring and transformation one-offs hitting next year. We are this year at the top of the cycle of capital expenditure, and we would expect to see coming through next year further progress on modest working capital gains. So all of that gives us confidence that there's going to be a significant reduction in cash burn in 2025. 2026, again, will show further progress on each of those fronts. Cash, we think we'll get into the single- digits before it gets cash positive in 2027. Very clearly. Thank you. We'll go to Ken Rumph at Goodbody. Ken, do you want to unmute yourself? Hi. Do you hear me now? We can. Thank you. Hello? Yes, we can hear you. Hi. Thank you very much. Okay. Firstly, gentlemen and ladies, this is the third update where we've had a slight beat and a slight improvement to guidance. So that's a very welcome habit to be getting into. Congratulations. The two questions. Firstly, kind of a small one, the owned assets business at Tesco, effectively, I mean, that's fully invested, I guess, now. I don't know if there's any significant kind of updating you anticipate over the life or anything like that. But my question basically is, kind of what's the sort of free cash flow from that? It's a high-margin business. I imagine there's not an awful lot of kind of OpEx attached to it. Obviously, it's got some Triodos debt that kind of sits against it. But I imagine that's pretty much an annuity for nearly 10-odd years. Yeah, that's a good do that one and then a second. Thanks. Let me just pick that one up quickly. Yeah, that's a good characterisation, Ken. We've now completed the rollout. The standard terms of the rollout are that for each site in the rollout, we have a tenure of seven years. Once the CapEx is complete, which it now is, as I said earlier, we get a cumulative cash generation in the region of GBP 2 million a year coming from that estate. So we will just see that run on through to the end of its tenure. Super. Okay. And then the second question, which is more important perhaps for the future, on the Flex side of the business, there are kind of multiple ways your estate, or whatever I should call it, fleet of chargers can kind of provide grid services. You've talked about allowing utilities to manage their kind of half-hour-by-half-hour sort of demand profile. There's grid balancing. There's local DNO-type services. Within the sort of GBP 300,000 that you expect to earn this year, to me, it's important that you're kind of proving each of those various services. So how far do we get, given how large the potential is? Which of the various kind of services that you can offer, are we going to have a kind of proof of concept this year? Thanks. Yeah. Shall I pick that up? Yeah, sure. So there are, as you say, a number of segments to the Energy Flex markets. We believe we have the potential to access five. Firstly, the DSO/DNO, the distribution network operators. And that's where, to date, we've done deals with the likes of UK Power Networks and NGED. That's where we're getting revenue at the moment. We actually think that is the smallest area of long-term potential. We see the balancing mechanism and wholesale markets as the most significant areas of opportunity. And it's in those areas that we'll be doing trials with Centrica and EDF through the course of this year, although we're not planning for that to be in this financial year, a major contributor to the net financial result. We've also got non-energy costs, which is where we help energy companies manage their use of capacity, and the capacity market itself, the long-term forward planning for the grid. So all of those represent long-term revenue potential, contributing to the GBP 40 million-GBP 50 million that we see coming our way. But this year, Ken, it's just primarily in the DNO part of the market that we are going to be generating revenues, but also proving out capability in the capacity in the sort of balancing mechanism and wholesale markets. Great. Great. Very encouraging. Thank you. And we'll go to Carl Smith at Zeus. Carl, do you want to unmute yourself? Yes. Hi, morning. It's Carl Smith from Zeus. Just two questions. The first is on the contract extensions with Mercedes, Jaguar, Land Rover, and Lex Autolease. Two parts to this one. Just first is, how important are these as a route to market now, these OEM preferred supplier relationships? And has there been any instances of these supplier agreements not being renewed? I know you used to mention that you had 20 OEMs signed up. Then the second question is on the international expansion. I think at the Capital Markets Day, you identified Italy as being an attractive market as well. Has this now been ruled out? And sort of what are the reasons for ruling out Italy and favoring Spain? Contract. Well, the importance of OEMs. OEMs, of course, remain important as a catalyst to sales. As you might have seen, there are a number of OEMs that offer our charger fitment for free, as opposed to just a simple discount off the vehicle. And those, in particular, have been important and continue to be important. And we very much value the relationships with the OEMs. There's a lot of press, as you know, around the contraction of the EV business, which, of course, is not true. The rate of growth has slowed down a little. But each of those vehicle manufacturers are held accountable to the regulation, the legislation that requires that 22% of their fleet is EV within 2024. And by 2030, that has to reach 80%. So the pressure on the OEMs to sell EVs is relentless and is increasing. And generally speaking, by having relationships with the OEMs, we benefit from that growth. I don't think that we've seen any notable losses from OEMs. Some of the contracts have become non-exclusive. But generally speaking, as I've said in the speech, we've seen renewal of many of those contracts. On international, we don't pull away from our intention to launch in Italy. What we've found in association with working with EDF, that we've simply prioritized our first two countries to be Spain, which has a large nascent EV capability, and France, where, of course, EDF are ever-present. So we said that we would go for the low-hanging fruit. We have done as we said, which is we've designed the Arch 5 new product to be common, basically, between the U.K. version and the international version. And therefore, our R&D costs and our risk of development has been significantly reduced going into that market. And we're very much leveraging the relationship with EDF. And that's what drives us, basically, to France and Spain. We still have intention in future years. Obviously, we're in Ireland already. But we're intending, of course, to go ahead in Italy and Belgium. And beyond that, we'll see. That's great. Thank you. Thank you. And the next question is from Thomas Mordelle from Bryan Garnier. Thomas, do you want to unmute yourself? Yes. Thank you for taking my question. Hi, Andy, and hi, David. Thomas Mordelle from Bryan Garnier speaking. I have a question on the overall EV adoption in Europe. As you mentioned, there is a sequential slowdown, demand-wise, mostly stemming from lower discretionary spendings and revised incentive schemes. And on the supply side, the industry, with a bit of manufacturers and grid operators, are still adapting themselves to the scale-up. How do you see the trend going into 2024/2025? And do you have some insights from OEMs or on the regional dynamics where you sell and operate more specifically? Then the second question, sorry, on grid flexibility, regarding demand offset services, are you considering to sell some aggregated capacity you are currently gathering based on the products you sell and the contracts you have with customers to grid operators during capacity auctions, such as or like with T-1 or T-4 auctions in the U.K.? And can those contracts be worth individually? Thank you. Very good. One of the reasons for pursuing an international rollout where we haven't in the past is very much to create a portfolio of countries. So generally speaking, to insulate ourselves a little bit, for example, from the ebb and flow of the U.K. market. And therefore, the reason for going initially to France is, obviously, we can leverage the EDF relationship there, for which we have nothing today. And likewise, Spain, which is perceived as a faster growth. So even though it's fair to say that the rate of growth has slowed, nevertheless, you've also seen the TIV in Europe increase. And therefore, the actual volume of EVs increasing. And obviously, our new sales are linked to that. In the U.K., we have a slightly more mature network. So there isn't a strong correlation between new car sales and charger sales. There is obviously a correlation, but not a strong one because we've been around for so long. As we move into the new international markets, there's a very strong correlation between those car sales and our charger sales. And over the next few months, you'll be seeing some of the commercial offers that we're putting in place in those two countries in order to speed the network. But we're going from zero. So everything we sell in France and Spain is a net gain for us. And as we said, to some extent, there is a land grab for the 1 million charging points that we're aiming at because that land grab then allows us to flex. And I'll pass over to David for the discussion around flex. Yes. So you're right. Obviously, we are going to be playing demand-side response here. And we clearly see that long-term potential, we can bid into the capacity market for T-1, T-4 auctions. And we already have an asset that's of the order of a small nuclear power station to offer. However, that, for us, is a relatively small characterization of the opportunity because we see the wholesale market effectively day ahead and the balancing mechanism where, effectively, you're working within an hour of response as the bigger of the opportunities. As we grow the size of the installed base, we think that is going to be where most of the value potential sits, working very closely with the market and with specific energy retailers on helping them to optimize their energy costs and minimize their non-energy costs. That's where we think we can take a good share. That's why we believe GBP 40-GBP 50 per charge point is a good opportunity for us. As an indication of where this will go, we said at the Capital Markets Day that by 2027, we're expecting our grid flex business to be making a profit contribution of at least GBP 5 million per annum. So this is going to make a huge difference to the profitability of the business and underpin what we see as substantial enterprise value. Okay. Thank you. We'll go to Oliver Swift at Panmure Gordon. Oliver, do you want to unmute yourself? Hi, both. Just a couple of questions from me. Firstly, given you touched on it at the CMD, it'd be good to get some color on how the Home segment market share developed over H2. And then further to that is, what level of home installations growth can we expect over this year? Sure. At the Capital Markets Day, we explained that part of the Powering Up strategy was in response to a loss of market share during 2022. And we talked about share having gone from around 37% in 2022 down to around 23% in 2023 in the first half. And what we've seen since then is that market share has been stable. It was stable through 2023. And in the first quarter of this year, is in line with those levels. So we've succeeded in arresting the issues of 2022. We still haven't yet deployed a host of measures that we believe are going to drive a further progression on volume and share. Those include the launch of our Arch 5 or Solo 3S product, which is currently in production and will be coming onto the market very shortly. That includes more functionality. It's OCPP compliant, which will make it more relevant to more commercial partners. It includes solar integration, which is a key feature for consumers. We've also talked about customer lifetime value. That lens on the business means we'll be driving customer acquisition harder through the marketing channels where we get the best return. There's more to come on that. We're working on smart tariff integration, which will widen the compatibility of Pod Point's chargers with energy providers providing smart tariffs. And we're also relaunching the consumer proposition and the app later in the year, which will underline how being on the Pod Point network drives extra value to you as a consumer. So we're really optimistic about what's still left in the tank about pushing our volumes. In terms of growth expectations for the year, I said that we returned the Home segment to growth in the second half. And that was 3% in the second half of last year. And so far, what we're seeing this year is growth in home that is around the double-digit percent level. So that gives you an indication of where we think volumes will get to in this year. Thanks, David. And we've got another question from Ken Rumph. Good morning. Ken, do you want to unmute? Go ahead. Ken, we can't hear you. Hello? Yes. We can hear you. Go ahead. Okay. Right. Sorry. Two questions, never enough. Firstly, on house builders and their obligations to install chargers in, well, many developments, obviously, as I recall, they had a kind of only where you hadn't already submitted plans and planning and so on. So there's a kind of lag to that. What's your perception of kind of from your house builder customers, and you've got some of the biggest, how far has that gone? My impression probably is there's quite a lag. And then perhaps sort of using Andy's experience of the wider auto industry, on the ZEV mandate, there is some kind of wiggle room in a sense that you can borrow from next year. You can pull. And indeed, rather than pay a fine, also, you could discount. You can discount different ways. You could offer a free charging point and so on. You might, if you knew that you had a lot of models coming out at the end of the year or next year, choose to do some of those things. Not every auto manufacturer is at 22%. So what's your perception of kind of where the different players are and how they're kind of using the flexibility within the ZEV mandate? Do you want to take the first one, David? I'll take the second. Sure. So on house builders, this sector sort of operates at two timescales. First is long-term. So when we do deals with these house builders, and we've announced a number of them over the past year, they're long-term deals. They secure a good future flow of volume for us. But it is a long-term picture. And just because the government has just introduced the requirement that new planning, it's just for new planning. Not literally every build that's happening at the moment should have a charge point. That will take some time to come through. The second timescale is just the short-term call-offs within those long-term deals. That's associated with literally how many completions are taking place in the coming months. That's where we've seen some weakness, widely reported problems within the housing sector. We see short-term volatility in the call-offs. The long-term looks really encouraging because of the requirement for new build planning to have a charge point and because we've got this pipeline of long-term deals with a number of house builders secured. It's both factors together, Ken. Ken, on the OEMs, first of all, I don't think that the ZEV mandate is going to change. Certainly not within this session of Parliament. And if we speculate a change of government, then I think, if anything, it'll tighten up rather than the opposite. And you've seen the opposition talking about bringing back the 2030 date. So I think it's unlikely that we'll see that mandate change. You will see companies missing the 22% numbers. I think, obviously, many of the Chinese will take advantage of that. And you will see a growth of the Chinese OEMs coming into the country. But undoubtedly, a number of OEMs will miss that 22% and will, where possible, exploit some loopholes, if you want to call them that, some alternatives within it. Generally speaking, that's good for us, honestly, because one of the strategies deployed, as you said, is a free charge point. And we already see some of our OEMs actually deploying that strategy. So that's actually helpful. It's true that some will maybe find a way through 2024, but it becomes increasingly hard in 2025 and 2026. And you know who those are because, generally speaking, those are the OEMs that are publicly saying that they'd like to see a delay or they don't see the customer demand. But there are clearly those that do. And those will be the big winners, I think, over the next few years. So 2024, I think, will be a mixture of sales. Generally speaking, I think the 22% will get missed. And there will be, as you said, the deployment of the various alternatives to make up for that. But some will end up paying tariffs. Yeah. And if they delay, they'll only have to do more next year. So it all adds up. Thanks very much. Exactly. Exactly. Thank you. Andy thanks indeed. And that's the end of questions. Andy, do you have any closing remarks? I think we've said all that needs to be said, to be honest. I hope if we've done nothing else, we've reinstated some trust. Ken, you said that this is the third update with the third beat. That's the drumbeat that David and I have tried to instill into the company. We've instilled a sense of accountability within the company. And we've deployed all of the KPIs that you've seen deep into the company through the various layers of management. I think if you buy the macro view of the deployment of EVs, then you can see that this is a very attractive place to be. But I hope also that you can see that the future is not simply in purveying plugs. The future is very much in this flex market, in the purveying of energy in order to bring a better service to EV customers and ultimately a cheaper service to EV customers. So I think the future for the company is very good. I'd like to thank you all in the insistence and support that you've given me over the last 9, 10 months as Interim CEO. As you know, I'll shortly be moving across to Chair designate and ultimately chair, hopefully, and will be supporting the new and current executive team in further deployment of this strategy, which we're all very excited about. But thank you for your perseverance. And thank you for your support over the past 10 months, which has been a heck of a ride. Thank you very much. Thanks very much, Andy and David, and to you all for joining. This is the end of the webinar.