Ads-Tec Energy(US:ADSE)2022-09-12 20:56Financial Data and Key Metrics Changes - H1 2022 revenue was EUR 9.431 million, down from EUR 20.9 million in H1 2021, indicating a significant decrease [14] - The company reported a net loss of EUR 7.309 million for H1 2022, compared to a positive gross profit of EUR 1.5 million in H1 2021 [18] - Cash balance decreased to EUR 65.72 million from EUR 101.8 million at the end of 2021, primarily due to higher working capital needs [18] Business Line Data and Key Metrics Changes - The service segment revenue decreased by about 39% year-over-year to EUR 636,000, driven by reduced sales of spare parts and lower service sales [15] - The commercial and industrial business saw a revenue increase of 65% year-over-year, reaching EUR 2 million [16] - The order backlog increased to EUR 176.7 million, providing visibility for future growth opportunities [11] Market Data and Key Metrics Changes - In H1 2022, 54% of revenue came from outside Germany, with significant contributions from Spain, the UK, and Switzerland [16] - The U.S. market accounted for 27% of H1 2022 revenue, reflecting the successful launch of the North American business [16] - Global EV sales in 2021 were 6.6 million, with expectations to exceed 10 million in 2022, indicating strong market growth [7] Company Strategy and Development Direction - The company aims to capitalize on the transition to decentralized energy supply and electric vehicle adoption through its battery-buffered charging technology [4][5] - ADS-TEC positions itself as a platform provider, offering not just charging solutions but also services and software for energy management [22][24] - The company is expanding its manufacturing presence in the U.S. to better serve local customers and enhance production capabilities [12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance of EUR 80 million to EUR 100 million, despite challenges in the first half of 2022 [19] - The company anticipates improvements in gross margin by the end of 2022, driven by changes in supply chain management and pricing adjustments [20][36] - Management noted that the current energy crisis in Europe could accelerate demand for their commercial and industrial solutions [60] Other Important Information - The company has secured significant partnerships, including with JOLT, to expand its ultra-fast charging solutions in urban areas [10] - The company is actively seeking partnerships in the U.S. similar to existing collaborations in Europe [52] Q&A Session Summary Question: What is the level of visibility into 2023 deliveries based on the current backlog? - Management indicated that all current bookings are expected to be delivered by the end of 2023, with a high pipeline of opportunities [28][29] Question: What is the timeline for ramping up production at the new U.S. facility? - The facility is expected to open in Q4 2022, starting with warehousing and battery assembly, with full production ramp-up planned for the following years [30][32] Question: What is the expected gross margin for 2022? - Management stated that while the gross margin was negative in H1 2022, it is expected to turn positive in the second half, though specific figures were not provided due to supply chain uncertainties [34][36] Question: Is there any impact on charging infrastructure build-out in Germany due to lower EV sales? - Management noted that demand for chargers remains strong, with expectations for continued growth in infrastructure despite supply chain challenges [37][39] Question: What is the company's approach to partnerships in the U.S.? - The company is actively seeking partnerships similar to those in Europe, with ongoing discussions with various potential partners [52] Question: How does the energy shortage in Europe affect the company's operations? - Management believes the energy crisis may accelerate demand for their solutions, particularly in the commercial and industrial sectors [60]