Hello, and welcome to the Fastned H1 financial results. My name is Laura, and I will be your coordinator for today's event. Please note, this call is being recorded, and for the duration of the call, the lines will be on listen-only mode. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now hand you over to your host, Michiel Langezaal, the CEO, to begin today's conference. Thank you. Thank you, operator, and, a warm welcome to everyone on this call, as well as, to our webcast viewers. The presentation used during this call is available on our investor relations website. You can find that at ir.fastnedcharging.com. The cover page shows a project I'm very proud of. Last month, we completed a massive upgrade to one of the largest and busiest stations in the Netherlands, Den Ruygen Hoek West. The service area close to the motorway that passes Schiphol Airport on the route from Amsterdam towards The Hague, with around 100,000 vehicles passing by every day. The scale we needed here was so significant that we also decided to rebuild the entire station with a new type of canopy. As you can imagine, I'm very much looking forward to seeing the uplift in revenue at this station after the Dutchies return from their electric holidays, and find out that one of our top stations, which was often quite busy in the past, had a massive upgrade and became twice as large. We want to make sure that the station always has a place for them to charge. Slide two, please. With reference to the information provided in these slides and discussed during this call, please take note of the disclaimer, which brings me to slide three. My name is Michiel Langezaal. I'm the CEO and one of the founders of Fastned. Victor Van Dijk, our CFO, is also present on this call. Together, we will present this webcast. Today, I will elaborate on the highlights of the first half of 2024. We will discuss the current market situation and sentiment, and we will look ahead to how we foresee developments and what this means for Fastned in the coming periods. As always, we will talk about the progress made in acquiring new locations and the construction of new stations. After that, Victor will take over and take you through the financial results for the first half of 2024, and he will also update you on our station metrics. After our presentation, we will be happy to answer your questions. If possible, please limit them to two questions per analyst, so we can give everybody the opportunity. We've scheduled this call to last for one hour. That brings me to slide four. Let's start with revenue growth. Fastned's revenue grew strongly to EUR 37.8 million, which is an increase of 45% compared to the first half of 2023. This is driven by the continued strong growth of electric vehicle fleets in Europe. Note that the EV fleet in Fastned's markets grew by 38%. In the broader space of listed companies active in e-mobility, this is an extraordinary achievement, as many are currently struggling with the current market situation, parties that sell wall boxes, for example. Fastned is doing great. Our revenues have risen to EUR 37.8 million, growing towards the EUR 100 million annual revenue milestone. We have been able to outgrow the market as sales grew by 50% and EV stock grew by 38% in the same period. This also shows the resilience of our business model, because Fastned sells electricity to the entire fleet of electric vehicles driving around, which is a recurring and growing form of demand. It is significantly less impacted by the temporary volatility of electric vehicle sales. About profitability, we continue to outgrow the market while delivering margins that are at or above target levels. With the continued scaling of revenue and having very solid positions in key European markets, this starts to provide significant freedom to continue to take the lead in setting the market price. Also, knowing that we have a very, very significant lead in station economics over others in the market, puts us in a very strong position, in a very strong pricing position. This is something that many had not expected to happen. They thought Fastned would be under pressure from others, but instead, we are in the position to lead the way. Taking a look at the figures, the underlying company, EBITDA, has grown by 14% to EUR 3.2 million. The figure that decreases as a consequence of Fastned scaling its expansion efforts, and the figure that increases as a consequence of scaling revenue. Increasing EBITDA, while at the same time expanding at a high pace and outgrowing the market, is an extraordinary achievement, I think. Moreover, these results are in line with our plan to reach a positive underlying company EBITDA for the full year 2024. Also important is cash flow and funding. As we continue to make massive investments in the expansion of our network, net profitability will, as expected and planned for, remain negative for some time. However, the scaling of revenues does lead to a quickly improving operating cash flow, which in the context of what we're doing, might be a better metric to look at. Operating cash flow improved from -EUR 2.5 million in H1 last year, to -EUR 1 million over the last six months. The significant scaling of revenues ahead of us puts Fastned on the verge of starting to self-fund investments in new stations. Note that this is very, very different from the vast majority of players in the market, which have very different magnitudes of revenue per location. Fastned is years ahead when it comes to commercial traction. In this context, I would also like to mention the issue of a record EUR 61 million in bonds in H1 2024. This allowed us to fund our expansion efforts for the last six months, and it improved our cash position to EUR 145.8 million. These two achievements are unique to Fastned and give us an incredible amount of freedom in expanding our network at speed, without the risk of debt governance that are currently plaguing others in the EV space. Both are providing interesting leverage for shareholders. Energy delivered per station was 403 MWh annualized in Q2 2024. This is up 29% from the previous year, a little lower than the BEV fleet penetration growth of 31%. As in the previous quarter, we took a look at what is causing this. The data again points towards the volume that in 2023 shifted from AC to DC charging as a consequence of the higher pricing of AC in the wake of the energy crisis. This volume has shifted back somewhat, with the AC charging provided by municipalities being more attractively priced again. Last but not least, on the people side, I would like to mention that I'm very happy that Françoise Poggi will be joining us as COO. This will again allow me to have more focus. Previously, she was responsible for Tesla's European supply chain and enjoyed similar roles at Sonos and Cisco Systems. I think Françoise will be of tremendous value to Fastned, helping us to further scale across geographies. I will save the discussion of our record-high location acquisition results for a little later when showing specific slides on the topic. Let's now look at the electric vehicle market. Moving on to slide 5, please. The media tells us that EV sales are down repeatedly. The question is, is that true? Actually, European electric vehicle sales have grown. European EV sales have grown by 1.3 percentage points, from 703,000 cars to 713,000 cars. When we exclude Germany, European EV sales have even increased by 9.4 percentage points. Germany is a bit of a special case, as due to unforeseen budgetary measures, the country had to very suddenly stop EV subsidies in December 2023. So the EV market is growing, although at the moment slower than analysts might have expected or hoped for. But given the circumstances, I would say that EV sales are actually very, very strong. Why? Well, firstly, people continue to buy EVs despite subsidies being significantly reduced, a move that is a logical result of the market growing and reaching its price parity point, but obviously, taking away subsidies has an impact. So the market still showing growth is amazing, and there are more reasons, which I'll talk about in the coming slides. Slide 6, please. For more than a decade, the entire industry has been focused on reaching the moment when it will be possible to produce an EV for the same price as a fossil car. The introduction of the Tesla Model 3 marked this moment in a large car segment several years ago. In the coming year, the Renault 5 and other models such as the electric Fiat Panda will bring price parity and great EVs that can compete with fossil cars to the smaller EUR 25,000 segment. In more recent years, many analysts have predicted battery prices to enable a proper and at par electric vehicle offer in a EUR 25,000 segment. The learning curve for batteries would bring down prices by 25% with every doubling of capacity produced. The thinking was, that this would allow for around $50 per kWh by around 2025-2027. Note that market leaders such as CATL have already achieved this price point this year. So what has caused this to accelerate, and what could happen beyond this point? With continued increases in production scale and matching price reductions, it is not hard to estimate $8 per kWh by 2030. The price level for battery cells, that would be a game changer for the industry. This development was hard to believe for most analysts. Would the learning curve not level off earlier? Analyzing the raw material cost for the common NMC technology, led many to expect the learning curve to level off somewhere around the earlier mentioned 50, because of hitting the barrier of raw material costs. In the last few years, we've seen LFP technology make huge improvements. Originally, many considered this battery technology unsuitable for cars, because its power density was low and energy density was mediocre. Smart innovations have led to breakthroughs here. For example, the preheating of the battery, for which we have to thank Tesla, was the answer to making fast charging possible for this type of battery. LFP has now become a very capable battery technology to use in cars, and as a nice proof point, the recently launched Zeekr 001 is one of today's fastest charging cars, with charge speeds well over 500 kilowatts, and it holds a CATL battery on LFP technology. So why am I telling you all of this? Well, LFP batteries have a far lower raw material cost and contain practically no rare earth materials. The raw material barrier for this technology lies more in the order of $11 per kWh. This is why battery prices have dropped faster than expected. More importantly, it will not only enable an at par great electric vehicle offering in a EUR 25,000 segment, it will flip the market and soon stop the sale of fossil cars altogether. Producing fossil cars will simply be too expensive beyond 2030. Which brings me to slide 7. Now, after having discussed the recent news on batteries, which significantly improves the already bright long-term outlook on the EV markets, I would like to zoom in on what is happening today. What makes me claim that the EV market is strong? Talking about the middle part of the slide, today, many of the first EUR 25,000 cars have already been shown to the media, and specification and pricing have often already been released. All signs point to OEMs trying to push the start of deliveries towards 2025. This would support them in meeting the EU regulations that become stricter in 2025. Furthermore, it looks like they would like to see if they can make people choose to buy one of their currently more profitable fossil cars until then. Whatever the reason, it is on a timeline of months. Fastned is investing for the long term. And what is absolutely clear is that these cars are coming, and the scale is a magnitude larger than the previous segments that we electrified. This is why the next phase of EV market growth is on our doorstep. After discussing the reasons for OEMs to decide the timing of their offerings, let's also talk about the timing of the decisions of consumers. This brings me to the Osborne effect. The Osborne effect is a phenomenon where the announcement of new, more advanced products can significantly reduce the sales of the current offerings as consumers await the new versions to become available. Applying this to our market situation, with so many new, better, and more attractively priced models coming onto the market in the coming months, the Osborne effect would suggest consumers prefer to wait and significantly reduce EV sales. This is not crazy. Personally, for example, I am currently driving a short lease vehicle. I had to hand in my previous lease, given that all potential lease extensions were exploited. While at the same time, the ordering option for the long wheelbase ID. Buzz, the car I want to order, has been postponed several times. So I'm one of these people who waits. As for my big family, the car I want is on the horizon, but not yet on order. So many consumers are currently awaiting the ordering of their vehicle of choice. Secondly, subsidies have been brought in line with the scaling of the market and the price parity point being reached. And still, the EV market is growing. That shows its strength and resilience. The awaiting orders and the opening of a new segment of the market to be electrified, which also is a magnitude larger than the previous ones, is why the next phase of market acceleration is on our doorstep. So that is our view on the market, and this is why we are continuing our efforts to expand our network, which brings me to slide eight. More than 10 years ago, I started this company to build the infrastructure to set free the electric car, build the fast charging infrastructure that is needed to allow electric cars to drive around, and for people to make the choice to go electric. Five years ago, we celebrated being a leading Dutch fast charging player and listed the company at Euronext Amsterdam. The idea was to raise funds and grow the company into a leading Pan-European charging network. Europe has some 10,000 very high traffic petrol stations, and the milestone we set ourselves for 2030 was to get our hands on 1,000 similar, very high traffic locations, including a serious number of great motorway service areas. That would roughly translate into a top 3 to top 5 position in Europe's key markets. Today, we can announce that we have reached the halfway point, something I'm incredibly proud of. Moving on to slide 9. In the first half of 2024, we saw the continued acceleration in the acquisition of high traffic locations, securing 76 new locations. This is our fastest acquisition pace ever. This leads to 509 locations signed at the end of this quarter. In the last 12 months, the acquisition speed of new locations has been above 100. That means we're fully on track to reach our goal of 1,000 stations by 2030. So the investments made in the network development, location design, and construction teams to be able to reach out to more landowners, to be able to develop more relationships, to investigate and design more locations, and to be able to do site due diligence at scale are paying off. Furthermore, with the revenue per station 5-folding over the last 5 years, Fastned is now successfully competing with retail development players to secure private locations along high traffic roads. As the outsized revenue per station we realize that allows us to tap into this new pool of opportunities. Opportunities that, as a consequence of different station economics, do not exist for many others in the market. Let's go to slide 10. We are not diluting our criteria in order to achieve scale. We continue to expand our best-in-market charging concept to these A-plus high traffic locations. What we do is scale the acquisition of great high traffic locations, and yes, that is the difficult thing, which makes me even more proud of our team to be able to have achieved a record level of new locations in the last six months. This brings me to slide 11 and handing over to Victor Van Dijk, our CFO. Thanks, Michiel, and also from my side, welcome all to the call. Since Fastned's inception more than 10 years ago, we have been focused on building large, visible, and efficient charging stations on high traffic locations and delivering a great charging experience, just like Michiel explained. Which is actually hard, because these valuable locations are hard to secure, and building large stations requires building permits and grid connections. And vertically integrating your business and make it efficient takes a lot of time and effort. We have seen other charging companies taking an easier route by putting chargers on parking lots of others, mostly low traffic, and outsourcing most of the key charging company functions like charger management software, maintenance, customer support, design, and construction management. That is quicker in terms of putting down chargers, but the value generation, both for the EV driver and the charging company, is much less in our view. So we have been scaling the hard thing, and by now, it's evident that this is paying off. Building great and large charging stations on high traffic locations and operating them really well through a vertically integrated business model leads to a predictable high session growth that scales with the BEV fleet penetration. And this is relatively independent of what other charging companies do on low traffic locations. And you can see that in the graph, which shows development of sessions per station per day for the top ten fast charging companies overall in our markets. Ultimately, Fastned scaling the hard thing leads to high customer value, high investor value with strong revenue growth and high return potential, and it drives the transition to electric mobility to us. Next, let me put some volume growth into context here. Most of the fast charging demands growth happens in the second half of the year. Why is that? There are two main reasons. One is that electric vehicles have structurally higher charging demand in the winter. Battery drive trains are less efficient, and driving requires more energy in cold weather. Also, people simply drive more in cold and rainy weather. This leads to a structurally higher demand for fast charging of 20%-30% in winter versus summer... So with a steady state BEV fleet, our sales would be 20%-30% lower in summer than in winter. But of course, the BEV fleet is not steady and it's growing substantially, which means that that sales growth is almost flat in the first half of the year, instead of, instead of 20%-30% lower. And in the second half of that year, we get the double whammy of continued EV fleet growth, plus the seasonal effect of higher demands in the winter. Other things to mention are the holiday peak. These days, many people use their electric vehicles to go on holidays, and this leads to increased demand in holiday travel countries like Germany, France, Belgium, and Switzerland, which we see in our current trading for the third quarter as well. Overall, Fastned's energy delivered grew by 50% year-on-year, outgrowing the 30%, 38% electric vehicle fleet growth in our countries, which is a great result. As Michiel explains, electric vehicles continue to hit European roads, causing higher and recurring fast charging demands, and we demonstrate we are able to capture that demand through our high traffic locations and award-winning charging concepts. On station economics, let me start off with the following. As I explained two slides back, we have one of the highest sales per station in the market, 3-4 times more than many other top ten fast charging CPOs, which is a huge difference. This provides financial flexibility by being in the driver's seat when it comes to any price changes and tender and rent bidding, whereas others still have to deal with negative-to-low station profitability. We saw sales per station increase by 29% year-on-year. This is slightly below BEV fleet penetration growth of 31%. The main reason for that, like we saw in the first quarter, is a normalization of slow charging usage in the Netherlands, currently our biggest market. We saw a relatively high public, slow, and home charging costs in the Netherlands in Q1 2023, and later in 2023, in the wake of the energy crisis, before normalizing against, again, over the last months and quarters. This has shifted some volume to fast charging early in 2023, and we see it shifting back to slow charging again now. Overall, we see public slow charging share trending down and public fast charging share trending up in Europe, in line with our and analyst expectations. In terms of fast charging market share, we have visibility on other fast charging companies, and there our market share was actually relatively, relatively stable over the last quarters and years. And we also saw Tesla Supercharger users growing at similar growth rates as Fastned. With station sales going up due to BEV penetration and with a high operational leverage, our operational EBITDA margin is again at 40%, our guided level for 2025. With the EV penetration expected to double by 2026 and fivefold by 2030, we continue to track towards our target of EUR 1 million revenues per station in 2030 and more than 40% operational EBITDA margins. Next slide, please. In the first half of the year, we again saw strong revenue growth at 45% and volume growth at 50% year-over-year. And this is really driven by two big growth drivers. One is organic growth at our existing stations. This is at +29% year-over-year. This is volume growth at the 244 stations we had operational at the start of last year. The driver of this is electric vehicle fleet growth, which increases recurring charging demands. This is obviously a great organic growth driver to have, as with the technology and cost developments that Michiel described, this BEV fleet growth is only going one way and will be a growth driver for the next few decades. Trends we see, like fast charging taking a larger share of charging demands growth and autonomous high mileage electric vehicles potentially on the horizon, only add to this growth. Fastned is uniquely positioned to capture this organic growth with our existing locations at high traffic locations and with our award-winning charging concept. We can cater for this growth at our existing stations in multiple dimensions, as we deliberately have spared capacity, as you can see when looking at our current utilization. Also, charge speeds will increase, meaning we can double or triple sales in that dimension alone over the rest of the decade. Also, almost all of our stations have expansion capacity planned for already, so that we can simply add chargers to satisfy demands. Our other big revenue growth driver is obviously securing new stations and deploying our award-winning concept on them, on them. As you can see, we are able to ramp up sales on them quickly. We have increased the number of stations by 31% since last year, and they already contributes 20%, contributes 21% volume growth. Knowing that a third of those stations were only opened in the last half year, this shows that the new stations ramp up sales to existing station levels within a short period of time. We're securing new locations at a record high level this half year, and with our station building pace ramping up, the inorganic growth from new station openings is also a very important revenue and volume growth driver. Apart from revenue growth, we have seen growth margins stabilize post-energy crisis. Note that we have seen many of the other top 10 fast charging companies actually increasing their pricing, which we feel is illogical, because they have significantly lower sales per station, so they increase pricing to attain some level of profitability. Further, we continue to see operational EBITDA expanding significantly, five-folding over only the last two years. With the revenues three-folding over the same period, this clearly demonstrates the operational leverage we have in our business. Net profit is still negative, but what we see is that it is at comparable levels to our net network expansion costs now. These costs come with our expansion efforts, which we are keen to undertake as we see the potential, and we continue to see very attractive IRRs on new projects. These expansion costs are mostly taken in the current periods, and therefore negatively impact our current profitability, but obviously, they yield over the 15+ year lifetime of the new stations built. Overall, our numbers, all numbers are trending in the right direction, underpinned by very strong structural growth drivers. Next slide, please. We have a very strong funding position. Our operating cash flow is near positive, while many other companies in our industry are still significantly negative. We have a strong organic revenue growth, as explained on the previous slide, requiring little to no further investments, which is obviously different from many other companies in many different industries, where substantial growth only comes after further investments. We also have a high cash on balance at EUR 146 million. Further, we have a unique self-developed retail bonds program with more than 10,000 retail investors, that want to support a leading company in the energy transitions, and that we provide with a good return of 6%. Many of them being EV drivers and our customers. This is a very valuable program for us, as it provides significant volumes of funding, but does not limit our financial flexibility, as it has no financial covenants. Combining all this, we expect to fund the full 2024 and 2025 rollout from cash on balance and further retail bond issuance. We also expect operating cash flow expansion and continued retail bond issuance to fund at least a considerable part of further expansion beyond 2025. Then we see other non-diluting funding options, like bank financing becoming available to the sector, with several examples in the market this year. This we obviously monitor. In summary, we're able to significantly expand operating cash flow organically, and this part does not need further funding. On top of that, we have a very strong funding position to expand operating cash flows through investments in new stations. Thanks for talking us through the financials and providing us many of your insights, Victor. This concludes our presentation for today. Moving on to slide 16. On this slide, we have summarized our guidance for 2024 and 2025, as we presented last quarter. In closing, I would like to say, looking at the facts, the electric transition is well on its way. The electric vehicle fleet continues to increase, and a wave of more affordable new models with more range is on our doorstep. All are enabled by rapidly developing battery technology. It's still relatively young innovation in the car industry that drives an unstoppable and accelerating path to complete transition to electric mobility. It would be foolhardy for any car maker to reduce their focus on EVs. Just think about it, how would they compete in 2030 when EVs are cheaper to produce than fossil cars? Sure, you can call me an optimist, and the truth is that I probably am. Yet, I invite you to take a close look at the insights we shared. On that note, I would like to thank you all for listening. I now hand the word back to the operator for questions. Thank you. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. Thank you. We will now take our first question from David Kerstens of Jefferies. Your line is open, please go ahead. ... Good morning, gentlemen. Thank you for the presentation. I've got two questions. First, on the utilization of the network, I think was a little bit lower on a like-for-like basis in the first half of the year. Can you explain the key drivers? I think you talked about the shift back to the home charging market, AC charging, which is probably a bit more pronounced in a weaker EV market that you experienced in the first half of the year. When do you expect that driver to revert back towards fast charging and drive your utilization of the network and also the operational leverage? And then the second question is on the cost development. It seems that the operating cost per charge have increased relatively strongly in the first half of the year. Do you expect to see further cost inflation in the second half? And also the development cost, it does not look like you're holding back on the development in a weaker EV market. Are you still on track to double these costs to EUR 50 million next year versus 2023? Thanks very much. Do you wanna start with costs, or? Yeah, I can, I can start with costs. Indeed, operating cost per charger increased on an annualized basis to EUR 16.6 thousand for the first half. The guidance we gave was around EUR 16 thousand for the year, and that's actually still the guidance, so that you can still take as an assumption. Development costs, same story. We don't hold back indeed. We do see the opportunity as described. But our guidance on that remains unchanged with a doubling over the period you mentioned. I think regarding utilization, I think we already explained the seasonality effect in that sense. So I think what you see there is that utilization is a time-based figure, whereby, let's say the sales are kilowatt hours, and over the summer, you often, let's say, from winter towards summer, you see charge speeds improving. So that also has an effect. So I think, I think basically that, yeah, there's a combination of these things that, that is at play there. Yeah. So the second half will be a bit clearer. I would say so, and as a consequence of that double whammy that Victor explained, right? Like, every year, you basically, towards summer, you see, you see basically cars needing less energy. People more often choose to not use their car until it starts to become summer break, which ends up in the Q3 figures. And then basically summer break and afterwards, people see sort of temperatures falling, it becomes autumn, starts raining, people start using their car more often, and the energy that these cars need to drive around, to basically cover the same around the mileage, is higher. And then basically you see utilization going up again, whereby also charge speeds are often a little bit lower, which improves the utilization significantly because the time, this utilization is time-based. Yep, that's clear. Thank you very much. Thanks, David. Cool. Thanks a lot, David. Thank you, and we'll now move on to our next question from Thijs Berkelder of ABN AMRO. Your line is open. Please go ahead. Yeah, good morning, gentlemen. My first question is on the funding. You report, excluding expansion costs, CFFO of EUR 11 million in the first half already, so I would say, with the winter effect remains, probably something like EUR 25 million then for the full year 2024. And a back of the envelope growth of 34% next year would hint at EUR 35 million-EUR 40 million in 2025. So, can you say anything more on future funding for your growth expansion after 2025? Yeah. Yeah, I think, indeed, the fact that we're operating cash flow near positive puts us in a very positive position, as I mentioned, and in an autonomous position. I think beyond 2025, I think what we see right now, of course, is our share price developments. And there, yeah, we think that the current share price does not represent the value of what we've created over the last years. That's very clear, so equity issues will be extremely dilutive and unattractive. So, that's that on that part, so that would be unlikely. At the same time, we see, of course, many other funding options. We see them all the time, and we always compare them and pick the most attractive one of them. One of the options we see becoming more available is bank financing for charging companies. So that's... And we've seen a couple of examples in the market this year, and obviously, so that is clearly something we monitor as well. Okay. Thank you, then a follow-up question on the growth in the number of charging points that's- ... as it looks like, clearly slower than what we've seen before. So should we see it more or less that we here see your, let's say, cost flexibility in reacting on a slightly slower growth in the BEV markets than hoped for or expected earlier? No, I would not say that they're connected. I think basically the connection that we put is much more towards the barriers in this market. Permits, development timelines, grids, development, et cetera, et cetera, that basically lead that, and the timeline to develop a site is often somewhere between 1 year and 2 years. And that means that the pipeline needed to accelerate also the construction of new stations. In that sense, I'm just really, really happy that we see that pace of acquisition increasing, and that will allow us, in due time, to also increase the pace of building new stations. And that is, yeah, basically something that works over a timeline of years, while, let's say, the current market situation is something that we look over months. I think we talked about that. Yeah, basically. Yeah, but— Significantly more long-term, To add on that, the question on the rollout on existing stations seems to be less aggressive than before. I fully agree that you fully roll out on your, let's say, new geographies. Yeah. So you're more questioning, like, the expansion at existing stations? Correct. Yeah. Yeah, I think Probably more related to your utilization levels, and if you see them not- Yeah ... growing fast, then there's no reason to add more charging points at that moment in time, probably. True, and I think, I think we also see sort of the typical sort of, let's say, simultaneity factor that we see in the electricity grids into play. So having, let's say, four charge positions, if you then hit a utilization of 20%, yeah, then it already starts to have an impact on the customer potentially. But if you have eight charge positions or 12, then, yeah, that simultaneity factor actually allows you to run the stations at significantly higher utilizations without impact to the customer. So, yeah, basically, the expansions in the past also allow us now to actually, yeah, not necessarily expand them that much, or that early on. Is that- Yeah. Is that... No, that's clear. I think, Thanks. I think that is, I think, the main factor. I think basically, like, yeah, let's say an 8-charger station, you can run at a significantly higher utilization without impacting customer experience than a 4-charger station. So that is why, yeah, the expansions were significantly higher in the past than now. Clear. Thanks. Great. Thank you. I hope that I... We will now take our next question from Jeremy Kincaid of Van Lanschot Kempen. Please go ahead. Good morning, gentlemen. I also have two questions. Victor, just the first one on the network operating costs. I thought you said that if we assume $16,000 per charger for the full year, if I plug that into my model, I get to EUR 15 million for a total cost for the half year, which is obviously the same as the first half, second half versus first half, which would be quite odd compared to history, as network operating costs have actually increased sequentially every half year. So could you just provide some more comments, pardon me, around why that number might not rise as much in the second half, compared to history? And then the second question, also on funding. You've obviously done a very good job with the retail bonds, but I see there's also nearly $1 billion government loan that you managed to draw down and also $10 billion that you managed to draw down from the Caisse des Dépôts. So I was just wondering if there were any more lines available from those two sources, or if there are any other sources of government style funding that could help you bridge the gap in future years? Yeah. Yeah, you said a EUR 1 billion loan, but, but I, I think you mean a EUR 1 million loan. Oh, sorry, yeah, million. It's good that we're achieving a scale that Yeah. No, but that's fine. But now, so the EUR 10 million is related to the SDE in France. And there, yeah, that is for a specific set of stations. And most of them have, almost all of them have been built already, and we can do some expansion from that. So that is there. It's very helpful, but it won't scale significantly. I think overall it's more. And then in the one million example is part of the German station scheme, the German regional tender, where we opened one station and basically effectively what they provide is a zero- interest loan, where they fund part of the CapEx, and then we pay it based on kilowatt-hour sold. And that will scale, and that's all part of the context of the German tender. And we talked about that before. But overall, yeah, once if these schemes are available, we'll use them, of course. But I think the more interesting part is the bank financing I talked about before. And to your earlier point on the charger costs. So of course, number of charges increased by 20, by the second half. So that indeed should increase network operating costs. And so in the first half, there were EUR 16.6 thousand per charger. In the second half, where I would say around EUR 16 thousand. So if you wanna be conservative, you could take the same level. But I assume your the absolute cost should increase. Okay. Sure. Could you just make a comment on whether or not you're seeing continued cost inflation, or if you're seeing cost pressures moderating across the board? You're talking about cost inflation on grid fees, or? On the operating costs, so we see- Grid fees, but anything that you want to call out. Yeah. So what we see, what we have seen is grid fees increasing because of yeah, because of inflation. And the effort that grid companies have to undertake in this energy transition. And we also see, there's one effect, and the other effect is how higher uses, higher charge rates which come with extra grid costs, and there's the effect you see in the operating costs. And that's also sort of a... You could, yeah, basically, those operating costs increasing are also an investment into the future scale of operating that station, right? So, basically, at the highest peak at those charging stations, to some extent sets sort of, yeah, the cost level. And yeah, that basically is an investment in operating that station in the future at these sort of charge rates. Sure. Thanks very much. Cool. You're welcome. Thank you, and we'll now move on to our next question from Simen Aas Lund of DNB Markets. Please go ahead. Yes, thanks for taking my questions. I have two questions on international expansion. The first one around Deutschlandnetz. You added a significant amount of Deutschlandnetz stations to the pipeline in quarter one, specifically. In quarter two, this was a lot lower. Can you just give us some update on how you're progressing with acquiring locations in the regional Deutschlandnetz tender? And then the second one is about, besides Deutschlandnetz locations, you also added stations in every country in the first half of the year, but not in Denmark. You only have one operational station and two under development. And I was just wondering, if you look at other countries that you have recently expanded to, Italy or Spain, we see a bit higher pickup. Yeah, what's going on in Denmark? Are you perhaps focusing a bit more on other countries at the moment, or maybe the Deutschlandnetz? In short, what, what are your goals for, for Denmark? Thanks. I think to start with Denmark, I think it's one of the countries that's on our agenda. But the development in that sense of a team of our commercial efforts to expand the network there have to start at a later phase than, let's say, a later point in time than in Italy and in Spain. And as a consequence, the ramp up is later. I think the reason why you saw the popping up of those first, maybe at an earlier point, and maybe you've seen them in Spain, is as a consequence of winning tenders, so we have to publish. Whereby, basically in Spain, for example, it's more like a couple of commercial deals that you see ending up in the pipeline, but not noticed basically as a country being opened. So there's a bit of a time lag in sort of the, let's say the moment when it ends up in our reporting. So no, let's say, big differences there. It's just a timeline difference. I think when talking about the German expansion, I think we're extremely happy that we... As basically the first party in the market to open the station in Düren, close to Aachen, as one of the regional tender locations. But I also have to say that, yeah, in that sense, maybe was very special. Because the entire development of that regional tender scheme is planned over, let's say, a couple of year periods, whereby these locations have to be developed, found, contracted. And that is going according to plan, but that plan also means, like, we're not gonna see them tomorrow. Yeah, I think you referred to the signing set- Yeah - of locations Yeah - in Q1, first Q2. What you see with the regional tender, there's a number of set deadlines, where you need to show locations and get them approved by the authorities. One of those deadlines was in Q1, so that led to, yeah, the concentration in Q1. I think the next deadline, I don't know on top of my head, but it was- No - in Q2, and will be in the second half of this year. Yeah. So it's tied to specific, That also is right. ... Yeah. All right. Makes sense. Thanks. Thank you. We'll now move on to our next question from Nikitas Bello of Deutsche Bank. Please go ahead. Hey, good morning. Thank you for taking my questions. I have also two. My first question is on the private location. So I understood that the expansion cost of acquiring private locations are higher because these are negotiated individually. Just wanted to ask if it's how it is when you have these orders now in the pipeline, if the timeline of building these stations is the same like the public ones, or if there are also differences? And my second question is regarding your midterm objective. Now that you're nearly reached 40% operational EBITDA margin, if you intend to revisit your target. Yeah, so let's start with the last one. Yeah, we've added, so the operational EBITDA margin target at forty percent, we've reached indeed or nearly reached, if you look at the first half. Yeah, I think it's too early to revise that target. I think it's also fair to say, that and I talked about this, more in the last call, is that what you see is that with increased station sales, yeah, you see that there's an ability to, at some stage, reduce prices. And because basically if we would keep the same prices and have, yeah, continue to grow station sales, you get to ridiculous returns. And that is not sustainable. So at some stage, the returns indeed will allow us to reduce pricing. Would also be in line with our mission, as I think maybe, the sustainability is also maybe linked to whether we want to achieve that. Yeah, and I think it's basically too early to call where, yeah, where that balance lies. It is a new market. We are leading that from a returns perspective. And that puts us in a very strong position with regards to pricing. But yeah, it's also something we need to experience and learn, but I think we can be very happy with that we're at our targets this year already. Yeah. I can't provide any further information on that. And then maybe regarding private sites, I think, yeah, let's say the timelines, I think, can be shorter here and there. Because when a contract is there, it's there. And, and, let's say the regulation that we see for public sites, which are often also motorway related, is often that there's additional regulations, so additional permits to be issued or additional, let's say, check marks to be set. That said, in general, there is a bit of an erratic behavior from site to site. So there will be sites that will be difficult and sites that will be easy. But I would say, generally speaking, the timeline of private sites could be or is a little bit faster than public ones. Yeah, I think cost-wise, I think you're right. I think, like, doing one-on-one negotiations might simply lead to more people efforts and more specialized work. But yeah, the positive on that sense is also that you also pick and choose, so tenders also come with a portfolio often. So there is, in that sense, a bit of a, yeah, let's say a weight effort. Okay, thank you. Does that give you a bit of color on that topic? It's maybe not a complete answer, but... No, yes, it was good. Thanks. Good. Thanks, Nikitas. Thank you. Any other questions? And we'll now... Yes, we do. We'll take our next question from Mahaut Arnaud of Bryan, Garnier & Co. Please go ahead. Thank you for taking my question. I was wondering if you have experienced any issues related to grid connection delays? If so, do you potentially see any improvement this quarter compared to previous quarters? And do you have any expectations for the rest of the year? Yeah, I think basically the situation, I think, remains similar to last year. We do see that the electricity grid in the Netherlands, where this is most profound, is under significant pressure. I think if you look at the developments in the country, there is still a pipeline of sites under development by Fastned. Those are sites where the far majority of them already have a connection that was developed, so the connection capacity has been claimed or is there. It does hamper, let's say, us and others to further expand the, let's say, the charging network in the country. Yeah, I think what I would say is probably on a technical basis, there is not that much happening yet. What we see is that on the policy side, the government and regulator and grid companies are trying to find solutions to the issue, whereby I think the key there is on a nominal basis the grid is full, you might say. On a non-nominal basis, so basically, yeah, the capacity on a hour-by-hour basis, there's a lot of room in the network still. So the question is really how they can start now to yeah to optimize the usage of the grid in a more digital way. But that will probably take some time, so I think that is not tomorrow. And I think that basically, in the end, also shows the, the strength of the position that we have in, in the country, and the value of the work that we did very, very early on. And I think we, we could expect or we-we will expect this to happen in other countries. We see similar signs in, in the UK, where the network is under pressure as well. Belgium, we might expect similar things, but the network is maybe a little bit, stronger or more conservatively, built than, than what we've seen in Netherlands and similarly in, in Germany. Maybe in France and for example, Switzerland or Scandinavia, we will see less of this, because there's much less of, let's say, fossil generation to be converted to solar and wind, so there's much less of change in the electricity grid. Does that give you a bit of context? It's a bit of a long story, but- Yes, that's very clear. I think it's really the timeline that we're talking about is not months. We're talking about a couple of years. Yeah. Mm. That also shows the barriers of entry to this market. It's like, many people think that you could place a charger somewhere, but it's definitely the electricity grid or the supply line to those stations that are starting to be of key and key importance. Yes, definitely. Thank you very much. Thank you. Thank you. And we'll now move on to our next question, a follow-up from Jeremy Kincaid of Van Lanschot Kempen. Please go ahead. Yes, just a very quick follow-up from me. You mentioned that after FY 25, you might look to get other sources of financing, and that there was evidence in the market that others had been able to do this. Could you just provide a little bit more color around maybe what the leverage ratios were that the banks were happy to lend to? Just something to sort for us to get our hands around to better understand the market dynamics would be helpful, please. Yeah. Now, let me be clear, this is... I mentioned this as this is something that potentially as an option that... And we monitor, but we look at many options. So that's the disclaimer. But if you look at those bank finances, you see, basically, it's a bit of an LTV metric they take, and so how much of the CapEx they funds. Often it's SPV-like structures, non-recourse structures. And then the LTVs are in the tune of 50%-70%, which is fund, which, that, that's the part of the CapEx that's funded by the banks. Guess that gives you the number, right? Yeah. That's very helpful. And do they require that the assets on the balance sheet are valued a certain way, or would they be happy with your current methodologies? The assets... Sorry, I don't get your question. The assets on balance sheets? Yeah. Can you repeat that? Do you have to value the assets on the balance sheets in a different way, or are they happy with the current methodologies? Yeah. Well, it's my impression, they don't really look at accounting, and in any case, we account on a cost basis, so I think that's not a topic, to be honest. It's about part of the CapEx they want to be able to fund, want to fund. So I don't think that's the topic. All right. Thank you very much, Victor. Yeah. Thank you. Thank you. Thank you. We'll take... Sorry, there's a follow-up from Thijs Berkelder of ABN AMRO. The line is open, please go ahead. Yeah, thank you for that. Can you maybe give a bit more flavor on the growth in your staff base? Where are you now, where do you want to be at year-end? Secondly, can you maybe explain why you only separate Germany as, let's say, the second country, while meanwhile, Belgium is larger and France larger from an asset-based perspective? Meaning, when can we expect more detail on the developments in Belgium and France, maybe? And finally, a very small one. There's a provision taken in the first half, very small one, but of course, on reported EBITDA, relatively large. Can you maybe explain what it's about? The provision, which provision do you mean? Yeah, in your report, not in your presentation deck, but in your report on page, what is this? Page 20, I think there is a table overview... splitting operational expansion and, depreciation amortization, and there's a pressure of almost 700K on the reported EBITDA because of depreciation, amortization, and provision. So I assume provision or, or an impairment, something like that, meaning that excluding that impairment to the reported EBITDA would have been EUR 4 million, not EUR 3.3 million. Yeah. Yeah, what we see there is that, that is actually goes back to collecting some of the revenues from some of the customers, where we see, it's a bit comparable to if you look at a petrol station where, where people get gas and, and drive off. In the charging sector, you, you have that as well, where people get an account, start charging, and, and some of them don't pay. So that is, that is the effect you see here. And that's something obviously, something we, we are working through to minimize that. We've, we've taken a lot of steps in that already, and that's something, the charging sector as a whole needs to go through. So that's, that is related to that. Okay. There was, yeah, a question on that one? Yeah. In Dutch, I would say it's [torneering, right? It's like payments that just fail to be paid, and then you have follow-ups. So basically, it's like step-by-step optimization of the entire payment process. Yeah. Can you remind me of the other questions? Because- Yeah, I have them here. So the other one was the FTE outlook. Like, what are our views in... I think, mostly I think Thijs is looking for how to model it, right? And then- Yeah the segment accounting. So, I think, yeah, originally, we chose to have segment accounting with Germany, yeah, as a first separation, as a consequence of the size of Germany at the time. But, I think Thijs' point is that, that- Yeah slowly starting to become different. Yeah, so that, that's something we, we will review, because you're right. Germany is, what used to be our second market, and that is changing, so we will re-review that and see how we can best present it. Yeah, because you're showing, let's say, your second market, Germany, only growing, what is it? 25% or so. Well, your real second market, Belgium, is growing more than 100%, and the next big market is France, UK, also more than 100%. Yeah. So we're underselling, you're saying. That's the- Yeah. And partly also the speed of change of the sector compared to sort of sometimes the value of presenting things in a similar fashion, right? Yeah. Yeah. In terms of employees, we're now at around 300 FTEs, so quickly ramping up. I don't actually know the exact number for the year end on top of my head. It also depends a bit on how quickly we're able to scale that. And then I think, yeah, the best guidance you can take is the guidance we provided before on network expansion costs, and also the network operation costs. I think, what I would say is, I think if I look at our hiring, like, I think I said, like, I don't know the number on top of my head, but I do know that we're roughly according to plan. So I would say the guidance that Victor provided in terms of financing is in line with that plan. So that and I think that's actually very positive, because in that sense, it does increase costs, but those costs are aimed at seriously scaling and expanding the network. So, we're very happy if we're able to find these people. Yeah. Okay. Thanks. I get a sign that there's one final question, then? Yes, we have our last- Maybe that's a good moment to also finalize the call for everyone, because otherwise, we're running out of time. Sure. We've got our last question from David Kerstens of Jefferies. Please go ahead. Hi. Thank you for squeezing me in at the end. I just had a follow-up question on your battery innovation slide illustrating the falling cost per kilowatt hour. What is your view on the impact of the capacity of batteries getting larger? I think there are now cars being developed with a range of 800 kilometers. Will that lead to a higher maximum achievable utilization of your network? And also, all the cheaper models that you expect to come to the market are often also smaller cars, which will likely be relatively more efficient. I think right now it's 4 kilometers per kilowatt hour, I think, for the first Teslas, but that number will probably go up quite, quite dramatically with the new models coming on, coming onto the market. Can you elaborate on how you see that impact on of those developments on Fastned, please? I think, I think first of all to say, I think there's many. So it's, it's very difficult to sort of to say that there's one driver, but I would say if, if I would list a couple of them, I would say bigger batteries and, and more affordable cars open up a segment. So, for example, people that, that don't have a driveway can't charge at home. If you can buy a car with a big battery that can charge very quickly at, at a reasonable price, then, yeah, then basically, yeah, for an average motorist, once a week going to a fast charging station becomes an option then. So you basically see that it basically scales. It makes, yeah, makes electric vehicles available to more people. Two is larger batteries lead to more people using their car on longer distance trips, while in the past, they would choose either going by train or taking a fossil car. Basically, it enables them to make that car being the first one. Three is, we see that it's very difficult in, let's say, densely populated urban areas, to develop AC charging country by country, utility by utility, you get these messages. It's very difficult to develop that at cost, which basically means that these people are being enabled to buy a car that is electric. I think when you look at autonomous vehicles, big batteries basically would allow them to go to charging stations and charge at basically moments in time when our network normally wouldn't have any customers, right? So basically nighttime things. So that is basically, yeah, maybe sort of the very long-term outlook, but you could achieve significantly higher utilizations as a consequence of higher charge speeds due to bigger batteries, faster charging, and charging being at times when basically an autonomous vehicle would connect, but a normal human would rather sleep. So I think basically that, yeah, in summary, I would say there's a long list of things that would improve things for us, whereby, yeah, often we see sort of the vocal early adopter say, "Hey, a bigger battery would actually mean that with less, that I would charge, fast charge less." So that's bad for operators of fast charging stations. I think that is a bit of a too narrow view that we still too often actually hear. Yeah. Very interesting. Thank you very much. Thank you very much, and looking forward to speak again in three months' time. Thanks all. Bye-bye. Thank you. This concludes today's call. Thank you for your participation. You may now disconnect.