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Ads-Tec Energy(ADSE) - 2024 Q4 - Annual Report
Ads-Tec EnergyAds-Tec Energy(US:ADSE)2025-05-12 20:05

Review FY2024 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 year10 - Service revenue almost tripled to €5.6 million10 - Customer base grew by more than 200% to 55 customers across Europe, USA, and Canada10 - Focused on a resilient business model backed by long-term multi-revenues and proven technology10 Strengthening Partnerships & Accelerating Recurring Revenues 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 revenues13 - The company is continuously expanding its international customer base and will act as a full-service provider for selected infrastructure projects16 - 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 Parkland16 Strategy Europe & North America 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 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-revenues21 - 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 - Use cases for the extended business model include charging, energy trading, and advertising (DOOH)23 ChargePost and C&I Projects 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 - 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 planning31 - 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 202531 Financial Highlights FY2024 FY2024 financial performance shows significant improvements in profitability, driven by revenue growth and effective cost management Revenues 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 Canada36 Profitability and Liquidity 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 management39 Summary 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 clients42 - 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, 202642 - 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 base42 Q&A This section provides an opportunity for questions and answers regarding the financial report and company outlook Appendix: Detailed Financial Statements 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) 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 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 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 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 |