Financial Data and Key Metrics Changes - Q2 revenue was €38,300,000, up 2% compared to the previous quarter but down 22% from a record high in Q2 last year [5][29] - Gross margin was 37.8%, stable compared to the previous quarter and within the guided range of 37% to 39% [7][30] - Adjusted EBITDA loss for Q2 was €7,500,000, reflecting a 33% improvement year over year [10][32] - Cash costs, defined as labor costs and operating expenses excluding R&D, decreased by 35% year over year [9][31] Business Line Data and Key Metrics Changes - AC sales generated €26,600,000, representing approximately 69% of total revenue, with a 4% improvement quarter over quarter but down 18% year over year [15] - DC sales remained flat at €4,200,000, contributing 11% to total sales, with expectations for improvement in upcoming quarters [17] - Software and services grew by 27% year over year, generating €7,600,000 or 20% of total revenue [20] Market Data and Key Metrics Changes - Europe contributed €26,100,000 or 68% of total revenue, with a 30% year-over-year growth in the European EV market [12][24] - North America contributed €11,400,000 or 30% of total revenue, with a 5% year-over-year decline in the EV market [13][25] - APAC and LATAM contributed approximately €260,000 and €550,000 respectively, with significant future potential but not prioritized currently [14] Company Strategy and Development Direction - The company aims to selectively invest in sales structures to capture renewed market growth, particularly in Europe and North America [6][12] - Focus on operational efficiency and rightsizing the organization to achieve profitability while maintaining growth [10][28] - The company is leveraging its platform and innovative product portfolio to position itself as a leader in the EV market [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in potential growth in the second half of the year, driven by the recovery of the European EV market [36] - The company recognizes the volatility in the North American market due to changing subsidies and policies but remains optimistic about growth opportunities [25][26] - The strategic focus is on adapting to market dynamics and achieving profitability through a flexible organizational structure [27][28] Other Important Information - The company ended the quarter with approximately €32,400,000 in cash and financial instruments, with total debt increasing by 9% to €182,000,000 [33][34] - Inventory decreased by 33% year over year, reflecting operational improvements [35] Q&A Session Summary Question: Status of the Generac investment - Management confirmed that the partnership with Generac is progressing well, with home chargers being commercialized in North America and integration of app platforms [41][42] Question: Details about the QUASAR two project - Management highlighted that QUASAR two is a bidirectional charger allowing electric car batteries to power homes, with initial deliveries to Kia AV9 owners [46][48] Question: Updates on the ABL acquisition and market momentum - Management reported strong growth in Germany and Spain, with a focus on expanding the sales organization and cross-selling opportunities [59][60]

Financial Performance - Q2 2025 revenue reached €383 million, a 2% increase QoQ[8] - Q2 2025 gross margin was 378%[8] - Adjusted EBITDA loss for Q2 2025 was €75 million[8] - Q2 2025 cash costs decreased by 35% YoY[10] Sales and Product - Approximately 39000 AC units were sold in Q2 2025[10] - Approximately 140 DC units were sold globally in Q2 2025[10] - AC sales accounted for 69% of Q2 2025 revenue, DC sales for 11%, and Software, Services & Others for 20%[13] Geographical Revenue - Europe accounted for 68% of Q2 2025 revenue, with €261 million[11] - North America accounted for 30% of Q2 2025 revenue, with €114 million[11] - LATAM accounted for 1% of Q2 2025 revenue, with €550k[11] - APAC accounted for 1% of Q2 2025 revenue, with €260k[11]

Core Insights - Liberty Plugins, Inc. has launched the Liberty CodeConnect™ Wallbox Charger in partnership with Wallbox, combining EV charging hardware with advanced encryption technology [1][3] - The charger is designed to provide essential management features such as access control and payment without requiring an internet connection, making it suitable for various locations [2][4] - The product is available in two variants (40A and 48A) at a competitive price of $1,495 per unit, with a subscription fee of $9/month, and a promotional discount available until August 15th [2][6] Company Overview - Liberty Plugins has been a pioneer in the EV charging industry since 2009, known for its innovative charge station management solutions [5][9] - The company has developed a range of products, including the Hydra™ Charge Station Management System and the Liberty Access Platform, establishing a reputation for affordable and accessible charging solutions [5][9] - Liberty has installed over 3,500 customer-owned Level-2 charging ports across North America, demonstrating its commitment to simplifying electric vehicle charging [9] Product Features - The Liberty CodeConnect Wallbox Charger offers a user-friendly interface and meets the latest safety and compliance standards, making it accessible to markets previously hindered by high costs and connectivity issues [3][4] - Key features include no hidden charges, simple access management, and no need for network or gateway setup, allowing for easy deployment and reduced installation costs [7][4] - The charger enables managed EV charging in remote areas and secure sites without increasing exposure to cyber threats, providing a reliable solution for cost-sensitive businesses and organizations [4][3]

Financial Data and Key Metrics Changes - Q1 revenue was €37.6 million, meeting guidance but down 13% year over year [6][29] - Gross margin improved to 38.1%, within the guided range of 37% to 39%, reflecting a 634 basis point improvement quarter over quarter [9][30] - Adjusted EBITDA loss was €7.8 million, the best result since going public, representing a 42% improvement year over year [11][32] - Cash and cash equivalents totaled approximately €40.6 million, with total debt remaining stable at approximately €199 million [33][34] Business Line Data and Key Metrics Changes - AC sales in Europe were soft, contributing €25.5 million or 68% of total revenue, down 14% year over year [12][14] - North America contributed €11.4 million or 30% of total revenue, showing a 142% year over year growth [13] - DC fast charging sales increased by 41% compared to the previous quarter, but remained volatile [30][18] - Software and services generated €8 million, representing 21% of total revenue and a 60% increase year over year [20] Market Data and Key Metrics Changes - The European EV market showed solid growth of 21% year over year, indicating recovery [12] - The global EV market reported 1.7 million EVs sold, a 20% growth compared to last year [25] - North America is becoming increasingly important, with significant production capabilities established [28] Company Strategy and Development Direction - The company is focused on optimizing costs while expanding sales, leveraging a new business unit structure [10][11] - There is a commitment to rightsizing the organization and expanding gross margins as revenue scales [11][27] - The company aims to build a strong backlog and stabilize sales, particularly in the EV market [11][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilizing sales and building a strong backlog, despite macroeconomic volatility [11][27] - The company remains cautious about the impact of tariffs and the evolving automotive supply chain [26][27] - Future guidance for Q2 2025 includes revenue expectations of €37 million to €39 million and a gross margin between 37% and 39% [38] Other Important Information - The company has successfully negotiated an 18-month interest-only period with primary lenders, enhancing liquidity [34] - Inventory levels have decreased by 29% year over year, reflecting effective optimization efforts [36] Q&A Session Summary Question: Thoughts on ABL integration and industry consolidation opportunities - Management reported successful integration with significant synergies achieved, with a focus on cross-selling products across regions [42][44] - Current focus is on becoming cash positive before exploring new acquisitions [50] Question: Additional traction for Quasar beyond Kia - Management indicated ongoing efforts to establish partnerships in Europe, with new customer demand emerging [52][53] Question: Competitive landscape and market opportunities - The company sees significant opportunities in the US market due to competitors shifting focus away from hardware solutions [56][58] - In Europe, the company benefits from a strong geographical footprint and established presence in multiple markets [60][61] Question: Expectations for product mix and its impact on margins - Management expects to maintain a similar product mix in Q2, focusing on building backlog to improve operational efficiency [64][66]

Financial Data and Key Metrics Changes - Q1 2025 revenue was €37.6 million, meeting guidance but down 13% year over year and almost flat compared to the previous quarter [6][29] - Gross margin improved to 38.1%, within the guided range of 37% to 39%, reflecting a 634 basis point improvement from the last quarter [9][30] - Adjusted EBITDA loss for Q1 2025 was €7.8 million, the best result since becoming a public company, representing a 42% improvement year over year [12][32] - Labor costs and operating expenses decreased by 13% quarter over quarter and 23% year over year [11][30] Business Line Data and Key Metrics Changes - AC sales in Europe were down 14% year over year, while North America saw a 142% year over year growth, contributing €11.4 million or 30% of total revenue [15][14] - DC fast charging sales increased by 41% compared to the previous quarter, with over 36,000 AC units and more than 100 DC units delivered in Q1 [8][30] - Software and services generated €8 million in revenue, representing 21% of total revenue and a 60% increase year over year [20] Market Data and Key Metrics Changes - The European EV market showed solid growth of 21% year over year, contributing €25.5 million or 68% of total revenue [13] - North America contributed €11.4 million, with significant growth driven by AC and DC charger sales [14] - APAC and LATAM regions contributed approximately €600,000 and €480,000 respectively, indicating potential for future growth [15] Company Strategy and Development Direction - The company is focused on cost savings and expanding sales, leveraging a newly implemented business unit structure to improve efficiency [11][12] - There is a commitment to rightsizing the organization and expanding gross margins while stabilizing sales and building a strong backlog [12][27] - The company aims to become a global leader in recharging energy management solutions, with a focus on optimizing existing platforms and partnerships [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilizing sales and building a strong backlog, despite a volatile macro environment impacting the automotive supply chain [27][38] - The company remains cautious about the impact of tariffs and economic uncertainty on the EV market, while believing in the long-term growth potential of EVs [26][27] - Future guidance for Q2 2025 includes expected revenue in the range of €37 million to €39 million and a gross margin between 37% and 39% [38] Other Important Information - The company has surpassed 100,000 chargers produced in Arlington, Texas, enhancing its production flexibility and supporting local job growth [28] - The partnership with Nissan for a home EV charging program in Canada is expected to simplify the charging journey for EV owners [17] Q&A Session Summary Question: Thoughts on ABL integration and industry consolidation opportunities - Management reported successful integration with ABL, achieving significant synergies and operational efficiency improvements, with a focus on cross-selling products across Europe [41][43] Question: Additional traction for Quasar beyond Kia - Management indicated ongoing efforts to drive demand for Quasar in Europe, with expectations for new partnerships and customer interest following recent events [51][52] Question: Competitive landscape and market opportunities - Management highlighted the competitive advantage in the US market due to local manufacturing and a focus on delivering comprehensive solutions, while noting challenges faced by competitors [56][58] Question: Expectations for product mix and its impact on margins - Management discussed the current gross margins for fast charging and home/business segments, emphasizing a strategy to reduce inventory and improve operational efficiency [65][66]

Financial Performance - Q1 2025 revenue reached €376 million, a 13% year-over-year decrease[8] - North America experienced a 142% year-over-year revenue increase[8] - Q1 gross margin was 381%[8] - Adjusted EBITDA loss for Q1 was €78 million[8] - Q1 cash costs decreased by 32% year-over-year[8] Revenue Breakdown - Europe accounted for 68% of Q1 2025 revenue, totaling €255 million[11] - North America contributed 30% of Q1 2025 revenue, amounting to €114 million[11] - APAC represented 1% of Q1 2025 revenue, with €300k[11] - LATAM also accounted for 1% of Q1 2025 revenue, generating €480k[11] - AC sales made up 68% of Q1 2025 revenue, reaching €256 million[13] - DC sales comprised 11% of Q1 2025 revenue, totaling €4 million[13] - Software, Services & Others contributed 21% of Q1 2025 revenue, amounting to €8 million[13] Financial Position - Cash and cash equivalents and financial investments totaled €406 million[31] - Loans and borrowings amounted to €199 million[31] - Consolidated inventory was €636 million, a 29% year-over-year reduction[31] - Capex for Q1 was €07 million[31]

PART I [Key Information](index=8&type=section&id=Item%203.%20Key%20Information) The company faces significant operational, financial, and governance risks as an early-stage entity in the volatile EV market [Risk Factors](index=8&type=section&id=D.%20Risk%20Factors) The company outlines major risks including historical losses, EV market dependency, supply chain issues, and a dual-class share structure - The company is an early-stage entity with a history of operating losses, incurring a **net loss of €151.8 million in 2024** and **€112.1 million in 2023**, and expects to continue incurring losses in the near to medium term[56](index=56&type=chunk) - The company's growth is highly dependent on the continued adoption of EVs, which is influenced by factors like government incentives, competition from other fuel technologies, and consumer perceptions[57](index=57&type=chunk)[65](index=65&type=chunk) - The company relies on a limited number of vendors for key components, making it **vulnerable to supply chain disruptions**, such as the semiconductor shortages that have affected the automotive industry[81](index=81&type=chunk) - The independent auditor's report for the year ended December 31, 2024, includes an explanatory paragraph expressing **substantial doubt about the company's ability to continue as a going concern**[125](index=125&type=chunk)[713](index=713&type=chunk) - The **dual-class share structure concentrates voting power**, with Class B shares having ten votes per share compared to one vote for Class A shares[210](index=210&type=chunk) - As a foreign private issuer, Wallbox is exempt from certain U.S. SEC reporting rules and follows home country governance practices, which may offer **less protection to shareholders**[212](index=212&type=chunk)[214](index=214&type=chunk) - The company received a **non-compliance notice from the NYSE** on November 21, 2024, because its average closing share price was below $1.00 for over 30 consecutive trading days[198](index=198&type=chunk) [Information on the Company](index=36&type=section&id=Item%204.%20Information%20on%20the%20Company) The company is a global provider of EV charging solutions, detailing its history, products, acquisitions, and operational structure [History and Development of the Company](index=36&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Founded in 2015, Wallbox became a Dutch public company listed on the NYSE in October 2021 via a SPAC merger - Wallbox Chargers S.L. was incorporated in Spain on May 22, 2015[250](index=250&type=chunk) - On October 1, 2021, the company completed its business combination with SPAC Kensington Capital Acquisition Corp. II and **listed on the NYSE under the ticker "WBX"**[251](index=251&type=chunk) [Business Overview](index=36&type=section&id=B.%20Business%20Overview) Wallbox offers a comprehensive portfolio of hardware and software for EV charging and energy management globally - Wallbox's mission is to facilitate EV adoption by creating smart charging systems that manage communication between the user, vehicle, grid, and building[255](index=255&type=chunk)[256](index=256&type=chunk) - As of December 31, 2024, the company has **sold over 1 million chargers** across more than 120 countries[263](index=263&type=chunk) - Key strategic acquisitions include **ABL in Germany (2023)** and **COIL in the U.S. (2022)** to enhance market presence and capabilities[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - The product portfolio includes AC chargers, DC fast chargers like **Supernova (up to 220 kW)**, and the bi-directional DC home charger, **Quasar**[262](index=262&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk) - The company operates under a vertically-integrated model with manufacturing in Spain, Germany, and the U.S[264](index=264&type=chunk) - The business is structured into three reportable operating segments based on geography: **EMEA, NORAM, and APAC**[265](index=265&type=chunk) [Organizational Structure](index=48&type=section&id=C.%20Organizational%20Structure) The company's structure consists of the parent, Wallbox N.V., and its significant subsidiaries listed in the financial statements - A full list of significant subsidiaries, their country of incorporation, and ownership percentage is provided in **Note 28 of the consolidated financial statements**[333](index=333&type=chunk) [Property, Plant and Equipment](index=48&type=section&id=D.%20Property%2C%20Plant%20and%20Equipment) The company operates leased manufacturing facilities in Spain, the US, Germany, and Morocco with significant production capacity - The company has leased manufacturing facilities in Barcelona (Spain), Arlington (Texas, USA), Nürnberg (Germany), and Tangier (Morocco)[334](index=334&type=chunk) - The estimated annual production capacity is approximately **624k chargers in Barcelona**, 283k in Arlington, and 302k in Nürnberg[334](index=334&type=chunk) - The corporate headquarters are in a leased 11,000 square meter office space in Barcelona, Spain[335](index=335&type=chunk) [Operating and Financial Review and Prospects](index=49&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) Revenue grew 14% to €163.9 million in 2024, but net loss widened due to asset impairments and financing costs [Operating Results](index=56&type=section&id=A.%20Operating%20Results) Revenue increased 14% to €163.9 million in 2024, while net loss grew 35% to €151.8 million, impacted by a significant asset impairment Consolidated Results of Operations (2024 vs. 2023) | Metric (in thousands of Euros) | 2024 | 2023 | Variance (€) | Variance (%) | |---|---|---|---|---| | **Revenue** | **163,943** | **143,769** | **20,174** | **14%** | | Sales of goods | 146,222 | 129,416 | 16,806 | 13% | | Sales of services | 17,721 | 14,353 | 3,368 | 23% | | **Operating loss** | **(133,817)** | **(106,941)** | **(26,876)** | **25%** | | Impairment of assets | (26,415) | — | (26,415) | — | | Employee benefits | (71,488) | (81,236) | 9,748 | (12)% | | **Loss for the year** | **(151,792)** | **(112,071)** | **(39,721)** | **35%** | - Revenue from goods sales grew by 13% in 2024, primarily due to increased sales of AC and DC chargers and the full-year contribution from the ABL acquisition[402](index=402&type=chunk) - Operating loss increased significantly due to a **€26.4 million impairment of assets** in the Nordics, ABL, and Wallbox Europe CGUs[408](index=408&type=chunk) - Employee benefits expense **decreased by 12% to €71.5 million**, reflecting the positive impact of workforce reduction and cost efficiency measures[406](index=406&type=chunk) Adjusted EBITDA Reconciliation (2024 vs. 2023) | Metric (in thousands of Euros) | 2024 | 2023* | |---|---|---| | **Loss for the year** | **(151,792)** | **(112,071)** | | EBITDA | (95,944) | (78,498) | | Share based payment expenses | 2,837 | 14,191 | | One-time expenses | 6,123 | 3,031 | | Impairment of assets | 26,415 | 0 | | **Adjusted EBITDA** | **(59,882)** | **(74,176)** | [Liquidity and Capital Resources](index=60&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company faces liquidity challenges with recurring losses and negative cash flows, relying on financing and debt restructuring - As of December 31, 2024, the company had cash, cash equivalents, and financial investments of **€46.1 million**, with an accumulated deficit of **€569.2 million**[431](index=431&type=chunk) - In November 2024, the Group entered into a framework agreement with key lenders for an **18-month grace period on debt repayments**, finalized by April 2025[358](index=358&type=chunk)[451](index=451&type=chunk)[453](index=453&type=chunk) - The company has raised capital through several private placements, including **$45 million in August 2024** and **$9.9 million in February 2025**[349](index=349&type=chunk)[350](index=350&type=chunk) Cash Flow Summary (2024 vs. 2023) | Metric (in thousands of Euros) | 2024 | 2023 | Variance | |---|---|---|---| | **Net cash used in operating activities** | **(51,532)** | **(64,100)** | **12,568** | | **Net cash used in investing activities** | **(39,461)** | **(54,145)** | **14,684** | | **Net cash from financing activities** | **2,955** | **140,631** | **(137,676)** | - Net cash used in operating activities **decreased by 20% in 2024** due to cost reduction programs, while net cash from financing activities **decreased by 98%**[464](index=464&type=chunk)[465](index=465&type=chunk) [Trend Information](index=64&type=section&id=D.%20Trend%20Information) The company is integrating Artificial Intelligence into its products and services to improve diagnostics and customer support - The company is implementing **AI-based self-diagnosis models** to help users troubleshoot charging device issues remotely via interactive bots[468](index=468&type=chunk) - AI is being used to accelerate diagnostic processes and improve service resolution times for technical support[468](index=468&type=chunk) [Directors, Senior Management and Employees](index=65&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section details the company's leadership, compensation structures, board practices, and a significant reduction in workforce [Directors and Senior Management](index=65&type=section&id=A.%20Directors%20and%20Senior%20Management) The company is led by its co-founders and an eleven-member board with directors from the automotive and finance industries - The executive team is led by co-founder Enric Asunción Escorsa (CEO), Luis Boada (CFO), and co-founder Eduard Castañeda (Chief Innovation Officer)[475](index=475&type=chunk) - The Board comprises **eleven directors**, including one executive director and ten non-executive directors[474](index=474&type=chunk)[475](index=475&type=chunk) - Shareholders **Iberdrola and Generac have rights to designate a director** to the Board, for as long as they meet certain ownership thresholds[491](index=491&type=chunk)[492](index=492&type=chunk) [Compensation](index=67&type=section&id=B.%20Compensation) Executive compensation totaled €1.7 million in 2024, and the company maintains multiple equity incentive plans for talent retention Executive Officer Compensation (FY 2024) | Metric (in thousands of Euros) | All executives | |---|---| | Periodically paid remuneration | 872 | | Bonuses | 84 | | Share based payments | 460 | | Termination benefit | 285 | | **Total compensation** | **1,701** | - Non-executive directors are compensated with annual cash fees for board membership and additional fees for committee participation and chairmanship[499](index=499&type=chunk) - The company has multiple equity incentive plans: Legacy Stock Option Programs, the **Wallbox N.V. 2021 Equity Incentive Plan**, and an Employee Stock Purchase Plan (ESPP)[504](index=504&type=chunk)[509](index=509&type=chunk)[512](index=512&type=chunk) - The 2021 Equity Incentive Plan had an initial reserve of **17,090,419 shares**, and the ESPP had an initial reserve of **8,545,209 shares**[510](index=510&type=chunk)[515](index=515&type=chunk) [Board Practices](index=71&type=section&id=C.%20Board%20Practices) The company has a one-tier board with three standing committees and follows Dutch governance practices as a foreign private issuer - The company has a one-tier board with executive and non-executive directors, appointed for one-year terms[526](index=526&type=chunk)[527](index=527&type=chunk) - The Board has three standing committees: **Audit, Compensation, and Nominating and Corporate Governance**[538](index=538&type=chunk) - The Audit Committee is chaired by Donna J. Kinzel, who is qualified as an **"audit committee financial expert"**[539](index=539&type=chunk) - As a foreign private issuer, Wallbox follows Dutch corporate governance practices in some areas, differing from NYSE requirements for domestic issuers[680](index=680&type=chunk)[682](index=682&type=chunk) [Employees](index=75&type=section&id=D.%20Employees) The company significantly reduced its workforce in 2024, with the total number of employees decreasing from 1,457 to 905 Average Number of Employees | Category | 2024 | 2023 | 2022 | |---|---|---|---| | Directives | 50 | 69 | 41 | | Administrative | 193 | 387 | 445 | | Commercials | 193 | 189 | 194 | | Operators | 339 | 212 | 38 | | Engineers | 333 | 408 | 464 | | **Total** | **1,108** | **1,265** | **1,182** | - As of December 31, 2024, the company had **905 employees**, a decrease from 1,457 employees at the end of 2023[555](index=555&type=chunk) [Major Shareholders and Related Party Transactions](index=75&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) Voting power is concentrated with co-founders, and the company engages in transactions with major shareholders like Iberdrola and Generac [Major Shareholders](index=75&type=section&id=A.%20Major%20Shareholders) Voting control is concentrated with the co-founders through a dual-class share structure, with several strategic investors holding over 5% Beneficial Ownership of Major Shareholders (as of March 1, 2025) | Beneficial Owner | Class A Shares (%) | Class B Shares (%) | Combined Voting Power (%) | |---|---|---|---| | Enric Asunción Escorsa | 3.6% | 73.3% | 28.16% | | Eduard Castañeda | * | 26.7% | 9.54% | | Orilla Asset Management, S.L. (Francisco Riberas) | 12.0% | — | 7.7% | | Inversiones Financieras Perseo, S.L.U. (Iberdrola) | 8.6% | — | 5.5% | | Mingkiri, S.L. | 7.1% | — | 4.6% | | Infisol 3000, S.L. (Pol Soler) | 5.7% | — | 3.7% | | Consilium, S.L. | 6.5% | — | 4.2% | | AM Gestió, S.L. | 5.9% | — | 3.8% | | Generac Power Systems, Inc. | 14.4% | — | 9.3% | | All executive officers and directors as a group (11 persons) | 26.7% | 100.0% | 51.8% | - As of March 1, 2025, there were **265,451,432 Class A Shares** and **13,500,793 Class B Shares** outstanding[559](index=559&type=chunk) [Related Party Transactions](index=77&type=section&id=B.%20Related%20Party%20Transactions) The company engages in transactions with major shareholders, including private placements and commercial agreements with Iberdrola - In the August 2024 private placement, related parties including entities affiliated with Enric Asunción Escorsa, Orilla Asset Management, and Generac Power Systems, Inc. purchased Class A shares[573](index=573&type=chunk)[1167](index=1167&type=chunk) - Wallbox has a lease agreement with an Iberdrola subsidiary for its Barcelona offices and a Power Purchase Agreement for its Zona Franca factory[576](index=576&type=chunk)[580](index=580&type=chunk) - Iberdrola has a non-binding letter of intent to purchase up to 10,000 public chargers from Wallbox; **sales to Iberdrola affiliates totaled €6.1 million in 2024**[577](index=577&type=chunk)[578](index=578&type=chunk) - The Board has adopted a written **Related Parties Transaction Policy**, requiring review and approval of material transactions by the Audit Committee[584](index=584&type=chunk) [Financial Information](index=78&type=section&id=Item%208.%20Financial%20Information) This section references the full financial statements and confirms no material legal proceedings or plans to pay dividends - The company's audited consolidated financial statements are provided under Item 18 of the report[587](index=587&type=chunk) - The company is not currently a party to any material legal proceedings[589](index=589&type=chunk) - Wallbox has not paid any cash dividends to date and **does not intend to in the foreseeable future**, planning to retain all available funds for business growth[590](index=590&type=chunk) [The Offer and Listing](index=79&type=section&id=Item%209.%20The%20Offer%20and%20Listing) The company's Class A shares and Warrants trade on the NYSE under the symbols "WBX" and "WBXWS" respectively - Class A Shares and Warrants commenced trading on the NYSE on October 4, 2021[593](index=593&type=chunk) - The trading symbol for Class A Shares is **"WBX"** and for Warrants is **"WBXWS"**[593](index=593&type=chunk) - The company's Class B ordinary shares are not publicly traded[593](index=593&type=chunk) [Additional Information](index=79&type=section&id=Item%2010.%20Additional%20Information) This section covers material contracts, exchange controls, and U.S. federal income tax consequences for shareholders [Exchange Controls](index=80&type=section&id=D.%20Exchange%20Controls) There are no Dutch or Spanish exchange control regulations affecting capital movements or remittances to non-resident shareholders - The company states that there are no Netherlands/Spanish exchange control regulations that would affect capital movements or remittance of dividends to non-resident shareholders[600](index=600&type=chunk) [Taxation](index=80&type=section&id=E.%20Taxation) This subsection summarizes U.S. federal income tax consequences and the company's status regarding PFIC classification - The company does not believe it will be treated as a **Passive Foreign Investment Company (PFIC)** for the current taxable year and does not expect to become one[248](index=248&type=chunk)[622](index=622&type=chunk) - For U.S. Holders, distributions on Class A Shares will generally be treated as dividends, potentially taxed at lower capital gains rates as **"qualified dividend income"**[605](index=605&type=chunk)[606](index=606&type=chunk) - A U.S. Holder generally will not recognize gain or loss upon exercising a Warrant for cash; the tax consequences of a cashless exercise are unclear[614](index=614&type=chunk)[615](index=615&type=chunk) - Distributions to and gains by Non-U.S. Holders are generally not subject to U.S. federal income tax, unless effectively connected with a U.S. trade or business[628](index=628&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=85&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rates, foreign currency exchange rates, and other market price fluctuations - The company is exposed to interest rate risk; a hypothetical **100 basis point change in interest rates** would impact the 2024 profit or loss by approximately **€2.0 million**[645](index=645&type=chunk)[1180](index=1180&type=chunk)[1181](index=1181&type=chunk) - The company faces foreign currency risk, primarily from the USD; a hypothetical **10% strengthening of the Euro against the USD** would result in a loss of **€2.3 million** for 2024[647](index=647&type=chunk)[1185](index=1185&type=chunk) - The company is exposed to other market price risks through its investments in funds (€25.3 million) and its derivative warrant liabilities (€2.2 million)[649](index=649&type=chunk) PART II [Controls and Procedures](index=87&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective as of year-end 2024 due to three material weaknesses in internal control - Management concluded that as of December 31, 2024, the company's **disclosure controls and procedures were not effective**[654](index=654&type=chunk) - **Three material weaknesses** were identified in internal control over financial reporting as of December 31, 2024[655](index=655&type=chunk) - The material weaknesses relate to: (a) lack of sufficient personnel with IFRS expertise, (b) ineffective IT general controls, and (c) inadequately designed accounting policies[655](index=655&type=chunk)[656](index=656&type=chunk) - A remediation plan is underway, which includes hiring talent, engaging experts, and implementing new systems and controls[657](index=657&type=chunk)[658](index=658&type=chunk)[661](index=661&type=chunk) - As an emerging growth company, the annual report does not include an auditor attestation report on internal control over financial reporting[665](index=665&type=chunk) [Principal Accountant Fees and Services](index=88&type=section&id=Item%2016C.%20Principal%20Accountant%20Fees%20and%20Services) Ernst & Young, S.L. served as the independent auditor, with total fees of €1.644 million in 2024 for audit services Accountant Fees (in thousands of Euros) | | 2024 | 2023 | |---|---|---| | Audit fees | 1,644 | 1,435 | | Other fees | — | — | | Tax fees | — | — | | **Total** | **1,644** | **1,435** | - Ernst & Young, S.L. ("EY") was the independent registered public accounting firm for fiscal years 2024 and 2023[669](index=669&type=chunk) - All audit and non-audit services provided by the auditors must be pre-approved by the Audit Committee[674](index=674&type=chunk) [Corporate Governance](index=89&type=section&id=Item%2016G.%20Corporate%20Governance) As a foreign private issuer, the company follows Dutch governance practices, exempting it from certain NYSE shareholder approval rules - Wallbox is a 'foreign private issuer' and follows certain home country (Netherlands) governance practices in lieu of some NYSE listing standards[678](index=678&type=chunk) - The company intends to rely on the foreign private issuer exemption regarding NYSE rules that require **shareholder approval for equity compensation plans**[680](index=680&type=chunk)[682](index=682&type=chunk) - Instead of following NYSE shareholder approval rules, the company will adhere to the requirements of Dutch law[682](index=682&type=chunk) [Cybersecurity](index=90&type=section&id=Item%2016K.%20Cybersecurity) The company has implemented a cybersecurity program based on ISO27001, which is overseen by the Board's Audit Committee - The company has a cybersecurity risk management program based on the **ISO27001:2022 standard**, which is integrated with its overall risk management[688](index=688&type=chunk)[689](index=689&type=chunk) - The Board of Directors oversees cybersecurity risk through its Audit Committee, with management responsibility held by the CIO and Information Security Manager[693](index=693&type=chunk)[694](index=694&type=chunk)[699](index=699&type=chunk) - The program includes risk assessments, a security team, employee awareness training, and an incident response plan[690](index=690&type=chunk) - **No identified cybersecurity incidents** to date have materially affected the company's operations, business strategy, or financial condition[690](index=690&type=chunk) PART III [Financial Statements](index=93&type=section&id=Item%2018.%20Financial%20Statements) This section contains the audited IFRS consolidated financial statements, which include a 'going concern' notice from the auditor - The auditor's report from Ernst & Young, S.L. for FY2024 contains a paragraph expressing **substantial doubt about the company's ability to continue as a going concern**[713](index=713&type=chunk) Consolidated Statement of Financial Position (Assets) | (In thousand Euros) | Dec 31, 2024 | Dec 31, 2023 | |---|---|---| | **Total Non-Current Assets** | **194,699** | **226,617** | | Property, plant and equipment | 67,848 | 76,183 | | Intangible assets & Goodwill | 87,279 | 107,434 | | **Total Current Assets** | **158,367** | **256,924** | | Inventories | 70,082 | 92,478 | | Cash and cash equivalents | 20,036 | 101,158 | | **Total Assets** | **353,066** | **483,541** | Consolidated Statement of Financial Position (Equity & Liabilities) | (In thousand Euros) | Dec 31, 2024 | Dec 31, 2023 | |---|---|---| | **Total Equity** | **62,578** | **149,811** | | **Total Non-Current Liabilities** | **114,737** | **142,956** | | Loans and borrowings | 66,659 | 80,861 | | **Total Current Liabilities** | **175,751** | **190,774** | | Loans and borrowings | 131,810 | 126,496 | | **Total Liabilities** | **290,488** | **333,730** | | **Total Equity and Liabilities** | **353,066** | **483,541** | Consolidated Statement of Profit or Loss | (In thousand Euros) | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | |---|---|---|---| | **Revenue** | **163,943** | **143,769** | **144,185** | | **Operating Loss** | **(133,817)** | **(106,941)** | **(138,835)** | | Impairment of assets | (26,415) | — | — | | **Loss for the Year** | **(151,792)** | **(112,071)** | **(62,800)** | | **Basic and diluted losses per share (euros)** | **(0.66)** | **(0.60)** | **(0.38)** | Consolidated Statement of Cash Flows | (In thousand Euros) | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | |---|---|---|---| | **Net cash used in operating activities** | **(51,532)** | **(64,100)** | **(136,292)** | | **Net cash used in investing activities** | **(39,461)** | **(54,145)** | **(13,959)** | | **Net cash from financing activities** | **2,955** | **140,631** | **111,747** | | **Net increase/(decrease) in cash** | **(88,038)** | **22,386** | **(38,504)** | | **Cash and cash equivalents at end of year** | **20,036** | **101,158** | **83,308** |

Core Insights - Kia America achieved record-breaking sales in March with 78,540 units delivered, marking a 13.1% increase year-over-year and extending its sales streak to six months [1][7][9] - The company reported total sales of 198,850 units in Q1 2025, a 10.7% increase compared to Q1 2024, setting a new record for first-quarter performance [2][9] - Key models contributing to this growth include the K4 compact sedan, which saw a 10% increase in sales, and SUVs like the Carnival (+53%), Telluride (+17%), and Sportage (+11%) [3][4][7] Sales Performance - March sales of 78,540 units represent the best-ever monthly performance for Kia, contributing to a record first quarter [7][9] - The all-new K4 compact sedan has shown consistent growth since its launch in August 2024, indicating strong market acceptance [2][7] - The SUV segment, particularly the Carnival, Sportage, and Telluride, achieved their highest monthly sales ever, underscoring the brand's strength in this category [4][7] Production and Initiatives - Kia's Metaplant America facility in Georgia, with a $7.59 billion investment, is expected to create over 8,500 jobs and enhance production capabilities for new models [8] - The EV6 and EV9 models have commenced full-scale production, with expectations for improved product and supply chain efficiency to boost electric vehicle sales [4][8] - The 2025 Kia Telluride and EV9 received the IIHS's TOP SAFETY PICK+ designation, highlighting the brand's commitment to safety [8] Model-Specific Sales Data - Sales data for key models in March 2025 compared to March 2024: - EV9: 1,164 units vs. 1,281 units - EV6: 921 units vs. 1,537 units - K4/Forte: 13,719 units vs. 13,417 units - K5: 6,399 units vs. 1,174 units - Soul: 3,717 units vs. 5,284 units - Niro: 2,431 units vs. 2,902 units - Seltos: 4,828 units vs. 6,017 units - Sportage: 16,872 units vs. 15,211 units [5][9]

Core Insights - Wallbox has announced the pre-order availability of the Quasar 2 bi-directional charger, which is compatible with the Kia EV9, allowing for Vehicle to Home (V2H) capabilities [1][2][3] Group 1: Product Details - The Quasar 2 charger, along with the Power Recovery Unit, enables eligible Kia EV9 owners to use their vehicle as an energy storage system, providing backup power during outages and potentially reducing home electricity costs [2][3] - The Quasar 2 offers up to 12 kW of power for charging and discharging, with a retail price of $6,440, excluding taxes and installation fees [4] - Limited quantities of the Quasar 2 and Power Recovery Unit are available for pre-order on a first-come, first-served basis, with initial availability restricted to certain states [5] Group 2: Market Impact and Benefits - The V2H technology allows EV9 owners to manage energy usage and costs effectively, providing the ability to schedule charging and utilize stored energy during peak hours [3] - The Kia EV9 has received multiple accolades, including the 2024 North American Utility Vehicle of the Year, enhancing its market position as a leading electric SUV [7] - The EV9 features ultrafast charging capabilities, allowing it to charge from 10% to 80% in under 25 minutes, further improving the ownership experience [6]

Financial Data and Key Metrics Changes - Full year revenue totaled €163.9 million, reflecting a 14% growth compared to last year, driven by the full year contribution of ABL and solid growth in North America, which was up more than 40% year-over-year [9][10] - Q4 revenue was €37.4 million, down 14% year-over-year but improved by 8% compared to the previous quarter, primarily due to slower DC fast charger sales, which were down 34% quarter-over-quarter [15][39] - Adjusted EBITDA improved by 21% year-over-year, from negative €74.2 million to negative €58.8 million, with Q4 adjusted EBITDA at negative €12.3 million, showing a 43% improvement compared to the previous quarter [10][20][43] Business Line Data and Key Metrics Changes - AC sales of €26.9 million represented approximately 72% of global consolidated revenue, with a 14% growth quarter-over-quarter, mainly due to momentum in North America and increased demand in Europe for the Pulsar Family [25][39] - DC sales were €2.9 million, representing 8% of sales in Q4, significantly lower than expected due to inventory build-up with CPO customers [28][39] - Software, services, and others contributed €7.7 million for Q4, representing 20% of total revenue and an 18% growth compared to the previous quarter [31] Market Data and Key Metrics Changes - Europe contributed €25.7 million of consolidated revenue, or 69% of total revenue, remaining the largest region despite a soft market [22] - North America contributed €10.5 million, or 28% of total revenue, representing a 64% year-over-year growth compared to Q4 2023, while the EV market in the region grew 12% [23] - APAC contributed €900,000 or 2%, and LATAM was approximately €400,000 or 1% [24] Company Strategy and Development Direction - The company is focused on right-sizing the organization and optimizing costs to achieve profitability, with a new business unit structure aimed at efficiently servicing target segments [10][12][38] - Wallbox aims to maintain its market share and capitalize on the anticipated growth in EV sales, with a belief that the transition to EVs is inevitable [13][34] - The company is actively working on gross margin expansion opportunities and has reduced headcount by 35% compared to the same period last year [42][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year for the EV market, with only 6% growth year-over-year in the main regions [8][32] - Despite the current volatility, management remains optimistic about long-term growth prospects, expecting high double-digit growth in the EV market for 2025 [34][37] - The company is focused on generating profitable growth and is getting closer to this objective, with guidance for Q1 2025 revenue in the €34 million to €37 million range and a negative adjusted EBITDA between €8 million and €11 million [53] Other Important Information - The company raised an additional $45 million from strategic investors in 2024, excluding a $10 million private placement announced in February 2025 [12] - The company ended the quarter with approximately €46 million in cash and cash equivalents, while loans and borrowings were approximately €198 million [44][45] - Inventory was reduced to €71.1 million, a 23% decrease compared to the same period last year, with expectations for continued optimization [48] Q&A Session Summary Question: How should the product mix evolve in the U.S. market given potential regulatory changes? - Management indicated that the mix should improve towards fast charging, with the launch of the Supernova UL and certifications expected to increase the addressable market for fast charging [57][59] Question: What is the path to becoming EBITDA positive in the next 12 to 18 months? - Management emphasized maintaining or increasing market share and highlighted that reaching revenues of around €40 million to €45 million should allow the company to break even [62][68] Question: What is the company's exposure to import tariffs and how is it managing this risk? - Management noted that a significant part of revenue comes from Europe, reducing exposure, and mentioned plans to localize more manufacturing in North America if necessary [73][75] Question: How does the recent €10 million capital raise impact funding runway and future capital needs? - Management expressed confidence in managing cash flow and minimizing the need for additional capital, focusing on inventory reduction and working capital optimization [81][84]