Core Insights - The article highlights the evolution of charging infrastructure in the retail sector, particularly through battery-buffered ultra-fast charging, which is expected to increase customer traffic and create new monetization opportunities [1] Industry Trends - Recent market analysis indicates that electric vehicle (EV) drivers are increasingly choosing shopping locations based on the availability of EV charging stations [1]

Core Viewpoint - ADS-TEC Energy has successfully delivered a large-scale battery storage project for Stadtwerke Mühlacker in Germany, enhancing energy system flexibility amid rising electricity demand [1]. Company Summary - ADS-TEC Energy PLC (NASDAQ: ADSE) has completed a large-scale battery storage system that provides 10 MW of power and 20 MWh of storage capacity [1]. - The project focuses on German development, system integration, and operational processes [1]. Industry Summary - The implementation of large-scale battery storage systems is crucial for increasing energy system flexibility as electricity demand continues to rise [1].

Core Insights - ADS-TEC Energy PLC has successfully implemented a new SAP cloud-based IT platform to enhance operational performance and support international scaling [1][4] - The company is focused on a growth strategy that emphasizes international expansion and the use of high-performance IT infrastructure [2][6] - The integration of international financial reporting and consistent data structures is aimed at reducing operational risks and accelerating decision-making [3] IT Infrastructure and Implementation - The SAP S/4HANA Public Cloud is utilized to standardize processes, increase transparency, and ensure scalability in operations [2][8] - The project is recognized by SAP as a reference project for its complexity and the successful deployment of standardized cloud processes [4][5] - The deployment phase lasted approximately 14 months, starting in November 2024, and was completed on time and within budget [10] Operational Efficiency - The SAP-based cloud landscape includes various SAP solutions that enable integrated mapping of core processes across sales, service, operations, and billing [8][9] - The use of standardized best-practice processes has led to the creation of an integrated system that supports complex requirements and ensures reliable operations [9] - The company emphasizes high value creation depth through in-house design, development, production, and operation of its technologies [6][7] Company Background - ADS-TEC Energy specializes in lithium-ion technologies, developing battery storage solutions and ultra-fast charging systems [11] - The company has received recognition for its quality and performance, including a nomination for the German Future Prize [12] - With a focus on vertical integration and extensive investment in in-house development, ADS-TEC Energy is a trusted partner for various stakeholders in the automotive and energy sectors [12]

Core Insights - ADS-TEC Energy PLC has secured new contracts for large-scale battery storage projects in Germany and Austria, totaling a capacity of 20 MW and 40 MWh, indicating a growing demand for its energy storage solutions [1] - The company’s battery energy storage business has gained significant traction, reflecting the trust energy utilities place in its long-standing experience and technical execution capabilities [1] Group 1: Project Developments - The new contracts build on a growing customer reference base, including successful large-scale systems operating since 2016 and a recent project for Stadtwerke Ludwigsburg-Kornwestheim (SWLB) in Germany, which selected a BESS5000 system with a capacity of 5 MWh [2] - In early December, ADS-TEC Energy completed its first large-scale battery storage project in Austria at AAE Naturstrom, featuring a BESS5000 system with a capacity of 5 MWh, integrated with a photovoltaic system [3] - A flagship project in Germany features a 1 GW grid connection and 2 GWh of storage capacity, with potential expansion to 4 GWh, aiming for 'ready-to-build' status in 2026 [4] Group 2: Industry Significance - Large-scale battery storage systems are essential for integrating high volumes of renewable energy, enabling the storage of surplus electricity, smoothing peak loads, and stabilizing the grid [5] - Battery storage provides operators with revenue opportunities through energy trading and ancillary services, enhancing operational efficiency [5] - ADS-TEC Energy's storage solutions combine high-performance battery technology with intelligent energy management systems, optimizing performance for various markets [6] Group 3: Company Overview - ADS-TEC Energy has over a decade of experience in lithium-ion technologies, developing battery storage solutions and ultra-fast charging systems [7] - The company has been recognized for its quality and performance, receiving nominations for prestigious awards and maintaining high levels of vertical integration in its operations [8] - ADS-TEC Energy is a trusted partner for automotive manufacturers, energy providers, and charging infrastructure operators globally [8]

Core Insights - ADS-TEC Energy, a leader in battery-based energy storage and fast-charging systems, has successfully prequalified its ChargePost fast charging system for the Austrian ancillary services market [1] - Salzburg AG has integrated the ChargePost system into its virtual power plant, enhancing its contribution to grid stability [1] Company Overview - ADS-TEC Energy operates in the fast-charging and energy storage sector, focusing on innovative solutions for electric vehicle charging [1] - Salzburg AG is a regional energy and infrastructure provider in Austria, involved in integrating advanced technologies into its energy systems [1] Market Implications - The integration of ChargePost into Salzburg AG's virtual power plant signifies a growing trend in the energy sector towards utilizing fast-charging systems for ancillary services [1] - This development may enhance the operational efficiency and reliability of energy supply in Austria, reflecting a shift towards more sustainable energy solutions [1]

Core Viewpoint - ADS-TEC Energy PLC reported slower performance in the first half of 2025 due to delays in its legacy electric vehicle charging business [1] Financial Highlights - The company announced its unaudited interim condensed consolidated financial statements for the first half of 2025, covering the period ended June 30, 2025 [1] - The delays in the electric vehicle charging business impacted overall business opportunities, although no significant business opportunities were noted during this period [1]

[Review FY2024](index=4&type=section&id=1.%20Review%20FY2024) The company achieved its first-ever positive gross profit and adjusted EBITDA in FY2024, significantly growing service revenue and its customer base - Achieved first-time ever **positive gross profit** and **positive adjusted EBITDA** for the full year[10](index=10&type=chunk) - Service revenue almost tripled to **€5.6 million**[10](index=10&type=chunk) - Customer base grew by **more than 200%** to **55 customers** across Europe, USA, and Canada[10](index=10&type=chunk) - Focused on a resilient business model backed by long-term multi-revenues and proven technology[10](index=10&type=chunk) [Strengthening Partnerships & Accelerating Recurring Revenues](index=6&type=section&id=2.%20Strengthening%20Partnerships%20%26%20Accelerating%20Recurring%20Revenues) For 2025, the company will prioritize strengthening partnerships, accelerating recurring revenues, expanding its international customer base, and developing large-scale BESS projects - For 2025, ADS-TEC Energy will focus on continuing partnerships and accelerating recurring revenues[13](index=13&type=chunk) - The company is continuously expanding its international customer base and will act as a full-service provider for selected infrastructure projects[16](index=16&type=chunk) - Plans to develop large-scale Battery Energy Storage System (BESS) projects in 2025+ and has improved momentum in North America, attracting blue-chip customers such as Parkland[16](index=16&type=chunk) [Strategy Europe & North America](index=9&type=section&id=3.%20Strategy%20EU%2FNAR) The company's strategy in Europe and North America focuses on leveraging proven technology and an extended 360° business model for resilient growth [Strategic Foundation and 360° Approach](index=10&type=section&id=3.1.%20Strategic%20Foundation%20and%20360%C2%B0%20Approach) ADS-TEC Energy leverages over a decade of development experience and a focus on innovation to build a resilient, multi-revenue business model, including an extended 360° approach covering hardware, software, installation, operation, and services for infrastructure projects - The strategy is built on **10+ years of development experience**, continuous innovation, awarded and proven technology, and a resilient, long-term business model based on multi-revenues[21](index=21&type=chunk) - The extended 360° business model includes hardware (battery-based products), software solutions, installation & commissioning, operation of solutions, and broad service contracts (SLA) and digital services (SaaS)[23](index=23&type=chunk) - Use cases for the extended business model include charging, energy trading, and advertising (DOOH)[23](index=23&type=chunk) [ChargePost and C&I Projects](index=12&type=section&id=3.2.%20ChargePost%20and%20C%26I%20Projects) The ChargePost enables resilient business models through ultra-fast charging, energy trading, and advertising, while the company renews its focus on large-scale Commercial & Industrial (C&I) projects, including planning one of Europe's largest BESS projects (500MW/1GWh) for a 2025 start - ChargePost enables resilient and long-term business models backed by multi-revenues from ultra-fast charging, energy trading, and advertising (DOOH)[27](index=27&type=chunk) - Large-scale storage systems are becoming crucial, and ADS-TEC Energy will take part in this international growth market, with a pipeline including one of Europe's largest BESS projects (**more than 500MW/1GWh**) currently in planning[31](index=31&type=chunk) - The required land for the large BESS project has been secured, and the application for grid connection submitted, with an expected official project start during 2025[31](index=31&type=chunk) [Financial Highlights FY2024](index=14&type=section&id=4.%20Financial%20Highlights%20FY2024) FY2024 financial performance shows significant improvements in profitability, driven by revenue growth and effective cost management [Revenues](index=15&type=section&id=4.1.%20Revenues) ADS-TEC Energy exceeded its previous year's revenues in FY2024 amidst market uncertainties, driven by a significant increase in service revenue and a growing customer base | Metric | FY 2024 (million EUR) | FY 2023 (million EUR) | Change (YoY) | | :---------------- | :------------------ | :------------------ | :------------ | | Total Revenues | 110.0 | 107.4 | +2.4% | | Service Revenues | 5.6 | 2.0 | +180% | - The customer base grew by **more than 200%** to **55 customers** across Europe, USA, and Canada[36](index=36&type=chunk) [Profitability and Liquidity](index=16&type=section&id=4.2.%20Profitability%20and%20Liquidity) The company achieved a significant turnaround in profitability in FY2024, reporting positive gross profit and adjusted EBITDA for the first time, alongside improved operating results and strong liquidity management | Metric | FY 2024 (million EUR) | FY 2023 (million EUR) | Change (YoY) | | :---------------- | :------------------ | :------------------ | :------------ | | Gross Profit | 19.4 | -2.9 | Turnaround | | Gross Margin | 17.7% | -2.7% | +20.4 pp | | Adjusted EBITDA | 2.2 | -38.1 | Turnaround | | Operating Result | -8.6 | -44.5 | +35.9 million EUR | | Cost of Sales | -90.6 | -110.27 | -18% | - Cash and Cash Equivalents stood at **€22.9 million** as of December 31, 2024, demonstrating strong liquidity management[39](index=39&type=chunk) [Summary](index=17&type=section&id=5.%20Summary) The company achieved significant financial milestones in FY2024, including positive gross profit and adjusted EBITDA, while receiving technology recognitions and outlining a clear growth strategy - Received multiple technology recognitions including the German Innovation Award and Green Product Award in 2024, with ChargeBox and ChargePost proven by real operating data from clients[42](index=42&type=chunk) - Established a strong financial basis with first-time **positive gross profit** and **adjusted EBITDA**, issuance of **$50.0 million** senior secured convertible notes, and extended shareholder loans until August 31, 2026[42](index=42&type=chunk) - Growth strategy focuses on strengthening partnerships, accelerating recurring revenues, expanding the customer base by **over 200%**, and tripling service business driven by a growing installed base[42](index=42&type=chunk) [Q&A](index=19&type=section&id=6.%20Q%26A) This section provides an opportunity for questions and answers regarding the financial report and company outlook [Appendix: Detailed Financial Statements](index=21&type=section&id=7.%20Financials) This appendix provides detailed financial statements, including profit or loss, EBITDA reconciliation, financial position, and cash flows for the reported periods [Consolidated Statements of Profit or Loss and Comprehensive Income (Loss)](index=22&type=section&id=7.1.%20Consolidated%20Statements%20of%20Profit%20or%20Loss%20and%20Comprehensive%20Income%20%28Loss%29) The consolidated statement of profit or loss shows a significant improvement in operating result and gross profit for FY2024 compared to FY2023, despite a higher net loss for the period primarily due to increased finance expenses | Metric | Dec 31, 2024 (thousand EUR) | Dec 31, 2023 (thousand EUR) | | :------------------------------------------------ | :-------------------------- | :-------------------------- | | Revenue | 110,013 | 107,384 | | Cost of sales | -90,585 | -110,270 | | Gross profit (loss) | 19,427 | -2,886 | | Research and development expenses | -8,971 | -2,832 | | Selling and general administrative expenses | -31,588 | -27,823 | | Other income | 14,530 | 667 | | Operating result | -8,609 | -44,525 | | Finance expenses | -88,883 | -13,887 | | Result for the period | -97,958 | -55,081 | | Diluted Earnings (loss) per share (in EUR) | -1.91 | -1.13 | [EBITDA and Adjusted EBITDA Reconciliation](index=23&type=section&id=7.2.%20EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) The reconciliation shows a substantial improvement in both EBITDA and Adjusted EBITDA for FY2024, moving from significant negative figures in FY2023 to near break-even for EBITDA and positive for Adjusted EBITDA | Metric | Dec 31, 2024 (thousand EUR) | Dec 31, 2023 (thousand EUR) | | :-------------------------- | :-------------------------- | :-------------------------- | | Result for the period | -97,958 | -55,081 | | + Depreciation | 6,699 | 4,850 | | + Net finance result | 88,858 | 13,697 | | + Income tax benefits (expenses) | 491 | -3,141 | | EBITDA | -1,910 | -39,674 | | + share-based payments | 4,090 | 1,561 | | Adjusted EBITDA | 2,180 | -38,113 | [Consolidated Statements of Financial Position](index=24&type=section&id=7.3.%20Consolidated%20Statements%20of%20Financial%20Position) The balance sheet shows an increase in total assets and total liabilities from FY2023 to FY2024, with a notable shift in equity from positive to negative, largely influenced by warrant liabilities | Metric | Dec 31, 2024 (thousand EUR) | Dec 31, 2023 (thousand EUR) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Total assets | 145,230 | 124,408 | | Non-current assets | 30,188 | 34,900 | | Current assets | 115,042 | 89,509 | | Total equity | -42,809 | 33,919 | | Non-current liabilities | 126,192 | 30,142 | | Current liabilities | 61,847 | 60,347 | | Total liabilities | 188,039 | 90,489 | | Warrant liabilities (non-current) | 119,581 | 21,626 | [Consolidated Statements of Cash Flows](index=25&type=section&id=7.4.%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operating activities improved in FY2024, though still negative, while investing activities saw reduced outflows and financing activities shifted to a net outflow, resulting in a net decrease in cash and cash equivalents | Metric | Dec 30, 2024 (thousand EUR) | Dec 30, 2023 (thousand EUR) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Cash flow from operating activities | -16,285 | -20,659 | | Cash flow from investing activities | -1,296 | -9,920 | | Cash flow from financing activities | -10,598 | 25,492 | | Net decrease (-) / increase in cash and cash equivalents | -6,984 | -5,087 | | Net cash and cash equivalents at the end of the period | 22,858 | 29,162 |

Financial Performance - Total revenue for FY2024 reached €110.0 million, slightly exceeding the €107.4 million in FY2023[57] - Service revenue almost tripled, increasing from €2.0 million in FY2023 to €5.6 million in FY2024[57] - The company achieved its first-ever positive gross profit of €19.4 million, representing a gross margin of 17.7% in FY2024, a significant improvement from a negative gross margin of €-2.9 million (-2.7%) in FY2023[60] - Adjusted EBITDA turned positive at €2.2 million for FY2024, a substantial turnaround from €-38.1 million in the previous year[60] - Cash and cash equivalents stood at €22.9 million as of December 31, 2024[60] Business Growth and Strategy - The customer base grew by more than 200% to 55 customers across Europe, USA, and Canada[57] - The company is focusing on a resilient business model backed by long-term multi-revenues and proven technology[17, 63] - The company plans to develop large-scale Battery Energy Storage System (BESS) projects in 2025 and beyond[26] - A large BESS project in Europe, exceeding 500MW/1GWh, is currently being planned, with land secured and grid connection application submitted, with official project start expected in 2025[49] Financial Position - The company issued senior secured convertible notes with an aggregate principal amount of $50.0 million and warrants to purchase 1,116,072 ordinary shares[63] - Existing shareholder loans were extended until August 31, 2026, providing an open credit line of $25.6 million[63]

Financial Data and Key Metrics Changes - The company achieved a revenue of EUR 110 million for the full year 2024, compared to EUR 107.4 million in 2023, representing a growth of approximately 2.5% [18][19] - Positive gross profit and positive adjusted EBITDA were reported for the first time, with a gross margin of EUR 90.4 million (70.7%) compared to a loss of EUR 9.2 million (-2.7%) in 2023 [20][23] - Operating cash flow improved significantly from EUR -20.7 million to EUR 16.3 million, marking an improvement of EUR 12 million when accounting for capitalized R&D [21][22] Business Line Data and Key Metrics Changes - Service revenues nearly tripled from EUR 2 million in 2023 to EUR 5.6 million in 2024, driven by a growing base of installed fast charging solutions [19][20] - The customer base increased by over 200%, reaching 55 customers across Europe, the USA, and Canada [19][25] Market Data and Key Metrics Changes - The company noted improved momentum in North America, winning new customers and expanding its market presence [12] - The market for electric vehicles (EVs) is showing signs of recovery after a downturn, indicating potential growth opportunities [29] Company Strategy and Development Direction - The company aims to strengthen partnerships with existing and new customers while focusing on recurring revenue streams [4][25] - A shift towards a full-service provider model is being implemented, allowing the company to operate and own infrastructure projects [10][14] - The strategy includes a focus on large-scale battery storage projects, with plans for a significant project exceeding 500 megawatts [16][41] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of flexibility in operations and the ability to adapt to local market regulations [30][32] - The overall market remains volatile, but the company is optimistic about long-term growth opportunities despite short-term challenges [9][34] Other Important Information - The company secured a convertible note of EUR 50 million and extended existing shareholder loans, providing additional financial resources for growth [24][25] - Several awards were received in 2024, highlighting the company's recognized technology and innovation [22][23] Q&A Session Summary Question: What are some challenges and opportunities for companies like ADS Tech? - Management highlighted ongoing transformation in the market and the return of EV demand as key opportunities, while also noting regulatory challenges [28][29][30] Question: How do you see the competition with large corporations in the same business? - Management clarified that the company does not aim to be a utility but rather a strong partner for utilities, focusing on decentralized solutions [35][36][38] Question: Can you provide some view on the financials for the large 500 megawatt project? - Management stated that the project is under development, with site access secured and grid connection applications expected to be fulfilled in 2025 [39][41] Question: Could you expand on how the EUR 50 million financing will impact new shares? - Management explained that the convertible note will be exchanged for shares, with the price determined in the coming months [44][45] Question: Will the change in strategy impact short-term financials? - Management emphasized that the strategy is not a change but an expansion of existing operations, with a focus on maintaining partnerships [47][49] Question: How many operational charges are planned for 2025? - Management indicated plans to acquire between 100 and 500 operational sites, with installation timelines dependent on funding and site access [55][56]

Financial Data and Key Metrics Changes - The company achieved a revenue of EUR 110 million for the full year 2024, an increase of approximately 2.5% compared to EUR 107.4 million in 2023 [18] - Positive gross profit and positive adjusted EBITDA were reported for the first time, with a gross margin of EUR 90.4 million (70.7%) compared to a loss of EUR 9.2 million (-2.7%) in 2023 [20] - Adjusted EBITDA improved from a loss of EUR 38.1 million to a positive EUR 2.2 million [21] - Operating cash flow significantly improved from a loss of EUR 20.7 million to a positive EUR 16.3 million [21] Business Line Data and Key Metrics Changes - Service revenues nearly tripled from EUR 2 million in 2023 to EUR 5.6 million in 2024, driven by a growing base of installed fast charging solutions [19] - The customer base increased by over 200%, reaching 55 customers across Europe, the USA, and Canada [19][25] Market Data and Key Metrics Changes - The company noted improved momentum in North America, winning new customers and expanding its market presence [12] - The market for electric vehicles (EVs) is showing signs of recovery after a downturn, indicating potential growth opportunities [28] Company Strategy and Development Direction - The company aims to strengthen partnerships with existing and new customers, focusing on a resilient business model with multiple revenue streams [6][25] - Plans to develop large-scale battery storage projects are underway, with a significant project of over 500 megawatts in Europe expected to start in 2025 [16][41] - The company is transitioning to a full-service provider model, managing complete infrastructure projects for clients [10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of flexibility in operations and the ability to adapt to local market regulations [30] - The overall market for charging and energy trading is expected to grow, with flexibility becoming increasingly valuable [62][63] Other Important Information - The company secured a convertible note of EUR 50 million to support its growth strategy and operational investments [24] - Several awards were received in 2024, including the German Innovation Award and the Green Product Award, highlighting the company's recognized technology [22] Q&A Session Summary Question: What are some challenges and opportunities for companies like ADS-TEC? - Management highlighted ongoing transformation in the market and the return of EV demand as opportunities, while also noting regulatory challenges and market volatility [28][30] Question: How do you see competition with large corporations in the same business? - The company positions itself as a strong partner rather than a utility, focusing on enabling others to participate in the market [34][36] Question: Can you provide financial details on the large-scale battery project? - The project is under development, with site access secured, and further steps will involve applying for grid access [39][41] Question: How will the EUR 50 million financing impact new shares? - The financing will be through a convertible note, with details on share conversion to be determined in the coming months [45] Question: Will the change in strategy impact short-term financials? - Management clarified that the strategy is an expansion rather than a change, maintaining focus on the existing business model while exploring new opportunities [47][51] Question: How many operational chargers are planned for development in 2025? - The company anticipates acquiring between 100 to 500 operational sites, with installation progressing as quickly as possible [56]