All right. It's time for the next presentation. This one will be held in English because we have a Danish company presenting. My name is Mikkel Kousgaard Rasmussen. I work as an Equity Analyst here at ABG, covering a bunch of Danish companies. Among these is Donkey Republic, where we have the pleasure of welcoming the CEO, Thor Möger Pedersen, and the COO, Signe Storgaard Sørensen. You guys know the format. It's 15- 20 minutes of presentation. After that, we'll proceed to a 5 to 10-minute Q&A. If you're ready, please go ahead.
Thank you, Mikkel, also thank you for the opportunity to present here. My name is, as Mikkel said, Thor Möger Pedersen, and I'm the CEO of Donkey Republic, and I'm joined by Signe.
Yeah, I'm the COO of Donkey Republic, joined in August last year.
Exactly. Both of us have been with the company for one year now, four quarters, and we're excited to share our view of the company and the outlook of the bike-sharing industry and also the potential of Donkey Republic. Just briefly about me, I have a managerial background in different sectors, including renewables, engineering consulting, and also politics. A bit about you, perhaps?
Yes, I come from the financial industry. I have been around 10 years in Danske Bank, I have also had a few years in the renewable industry before joining Donkey.
DonkeyRepublic is, as Mikkel said, a Danish-based bike-sharing company listed at First North Nasdaq Copenhagen. What we will like to do is to give you sort of a point of departure, deep-diving into our 2025 performance. After that, Signe will give you some insights into our business model and our current portfolio of cities and also our pipeline. As a final item, I will touch upon our company strategy and industry tendencies. What is DonkeyRepublic? In short, DonkeyRepublic is a bike-sharing company with own fleet, operating bike-sharing systems in cities across Europe. The company has grown significantly over the past five years, and in my view, we are now in a new chapter, moving the company from a startup to a mature company, seeking profitable growth, and a more structured and disciplined way of growing the company.
If we look at the 2025 performance, the company delivered, despite a very modest fleet growth, an acceptable 13% revenue growth. We improved profitability significantly, especially when adjusting for a one-off restructuring cost in the course of Q3 and Q4. After we, as new management, joined, we did a structural cost adjustment, especially in our headquarter, aligning the organization to a future setup where we can harvest economy of scale. I will get back to that in a minute. We did see our utilization of our system grow, meaning that we had more trips and more riders than we expanded the fleet, which is a testimony to a continuous adaptation of shared mobility and bike-sharing across the cities we operate. If we look at business highlights for 2025, we launched a new strategy in the course of Q3 and started executing immediately.
Especially for efforts and achievements is vital to understand in order to see the future potential of the company. First of all, we implemented a new operating model, making sure that the organization is now ready to pursue profitable growth. We identified three strategic regions in Europe where we will focus our activities and also build our organization around P&L accountability. That is DACH, meaning Germany, Austria, and Switzerland, the Nordics, and the Benelux, especially Belgium and the Netherlands. That is also a clear deselection of remaining geographies, and a sort of important way for us to focus our efforts and make sure that we are relevant in the geographies where we focus.
We also launched a new bike platform, what we call the Generation 4 platform, including both what we call pedal bikes, meaning pedal bikes, normal, ordinary mechanical bikes, as well as electrical bikes, including a technology around it, making sure that we can remote lock the bikes and also have made them very theft-secure. In addition, we launched several initiatives regarding operational excellence, including utilizing data and new technology and making sure that our maintenance efforts are increasingly more efficient and cost-effective. As a fourth and very important point, we managed to secure two very large contracts for bike-sharing systems in two German areas.
One is a city-based system in Düsseldorf, and the other one is a regional system in the Ruhr district in Germany, adding together to a total of more than 8,000 bikes currently being rolled out in Germany. As you can see, the company has shown a historical good capacity in terms of revenue growth. For the past many years, the company has struggled to achieve profitability. That is the key focus of us as management and the full team in Donkey Republic. We will come back to our guidance for 2026 and our outlook towards 2030 later in this presentation.
Just to say that looking at Q1, we do already see the effects of our efforts executed during Q3 and Q4 2025 with our EBITDA performance increasing significantly and still with ability to increase revenue despite the fact that we, in January and February, which is of course our very low season, not that many people, especially in the Nordics, bike during harsh winter times. We saw significantly harsh winters in our Nordic cities in January and February. Despite that, we actually saw an increase in revenue and improvement of EBITDA, which is of course, very satisfying. Signe?
Yes. What is our business model? We aim at being a strategic partner to cities across Europe where we operate a bike-sharing system, and we do that in two ways. We have a contract-based system where we enter into a contract with either a municipality or a provider of transport in the city. The duration is usually around 3- 10 years, so a very long-term contract. Revenue is generated both from a fixed fee that we get from the contract and then from rider revenue, together with a little bit also on B2B and sponsorship. We also have a license-based approach, which is a shorter duration in time and can be both awarded to one or more providers or can also be a license giving to any operator that live up to a specific number of criteria.
Here we also generate revenue from riders and B2B and sponsorships. We have a little bit of legacy operation as well, where we generate revenue from both selling our hardware, meaning the bikes, and our license fees. It's a very diverse mix of income stream, which is also making our dependency less on one single income stream. If we look at where we are operating today, as Thor said, we have defined three core markets. We have legacy operations here in Barcelona, but our remaining operations is in the Nordics, DACH, and Benelux. Ruhr and Düsseldorf we are rolling out right now, and then we also have more countries on the roadmap, especially here in the Nordics, both focusing on Norway and Sweden. If we look at our tender pipeline right now, we are looking at many strategic opportunities fitting our strategic outlook.
We are measuring them in terms of a product-market fit, if it has a good and viable business case from an economical perspective, and then that it has a geographical fit for us. Currently, we have three applications where we have provided our bid and are awaiting an answer. As you can see, we do have a robust pipeline also, in the early stage, where we are looking into tenders for more than 30,000 bikes. On top of that, we also have licenses that we're looking into, where it's relevant. Yes.
Thank you. Moving a bit more to the big picture, what kind of tendencies do we find relevant, looking at the industry, and what is our vision, and also where do we see we have a competitive advantage? First of all, micro-mobility industry is a young industry, but currently maturing. We are seeing specialization in the industry, and we are also seeing an increasing focus on creating profitable growth and more mature organizations and companies. We do see that not only is the market maturing, but it's also growing. Best estimates, zooming in on bike-sharing, is that the European market will double in size towards 2030. Of course, being in a growing market is always better than being in a decreasing market. In addition, we do see a tendency to increasingly integrate micro-mobility and especially bike-sharing with public transportation and urban infrastructure in general.
That is what Signe also alluded to with either municipalities or transportation companies tendering out bike-sharing systems as a component to the existing urban mobility infrastructure. That, of course, allows the bike-sharing to increase in relevance, but also to harvest more utilization and thereby revenue. Following the logical integration of micro-mobility into public transportation, we do also see a tendency that more and more European cities choose long-term contracts as a way to make bike-sharing and micro-mobility an integrated part of the city planning. Where we aim to be the most trusted micro-mobility partner in Northern Europe, that is to be a trusted city partner. When we focus our efforts in strategic regions, we can build up relationships and deep understanding of city-specific requirements and needs and support municipalities in actually solving problems regarding mobility.
We do focus a lot on integrating our both app and our hardware with public transportation companies and have several proof points that our system is very easy to integrate, both from a software perspective and hardware perspective. A good example, the bike-sharing system that we are rolling out in Düsseldorf is not orange bikes, and it's not called Donkey. It's called Düsselbike and consists of white bikes and is an integrated part of the urban mobility infrastructure. Of course, this is an asset-based business model, and therefore, we do need to be super efficient and cost-effective in order to achieve attractive prices in our tender bids and still make a decent profit. That is, of course, also a key focus for us to maintain a very high operational efficiency.
Looking at our company strategy, as I alluded to in the introduction, what we have set out for 2026, that is to make sure that the company will break even or even produce solid black numbers for the first time in the company's history, but also increasing our growth ambitions and achieving a decent growth in revenue. We have, of course, a focus to really implement the changes we have made concerning our operating model and our increased efficiency. We do also have a focus on securing additional city contracts, allowing us to reach the higher end of our targets for 2027.
As you can count, looking at fleet size with the two contracts secured in Ruhr and Düsseldorf, we are now already in the lower end of our fleet ambition for 2027. The team are confident that we will make sure to reach for the high range of our 2027 ambitions. In 2027, we do expect to actually deliver decent EBT margins and also generate an attractive free cash flow. We will continue to expand our fleet in the disciplined way, not only focusing on growth, but on profitable growth, and thereby delivering a model that is scalable in a profitable way and with the ambition of reaching 70,000 units in the year of 2030. I think that was it from an introductionary perspective at least.
Mikkel, you are more than welcome to ask supplementary questions and for the rest of you, also afterwards, please feel free to ask questions. We are available during the lunch break, and you're also welcome to reach out on investor@donkeyrepublic.com. The mail goes directly to me and Signe. We are small setup, so we are more than happy to reply on questions and give you some more insights in our company and the journey ahead of us.
Yeah.
Mikkel?
Sure. Thank you so much, Thor and Signe for a great presentation here.
Yep.
I think what a lot of people here in the room would think is, how does this really differ from the likes of Voi, Lime, and Bolt, for instance? Maybe you can give some more color on that.
Yeah.
How do you compare in terms of pricing? How do you compare in terms of quality of your bike? You've already mentioned that you have a very trusted relationship, or you aim to have a very trusted with full relationship with your cities and municipalities, et cetera. Are there any other places where you really differ from these? They're obviously way larger than you and also have a broader portfolio of both e-scooters, et cetera, whereas you have only bikes.
It is correct that we are in the same industry as Voi and Lime, and we consider them as competitor and competition is healthy. It is worth noting that we are working in a growing market, and the requirement for micro-mobility is, as stated, growing, and therefore, I do believe that it's also necessary to have several operators in order to meet the market demand. However, we do differ. We are sort of a middle player in the European industry. We have been existing for 10 years, so actually almost as long as the industry. As stated, it's a young industry.
Where we have, I would say, a competitive advantage, or at least where we have chosen to have one due to our size and in acknowledgment that we are a middle player, that is that we have a very disciplined focus in terms of playing field. We have chosen to focus very specifically on three geographical strategic regions, where the larger players are more all over the place. That's of course their model. Our model is to be focused and relevant, and also focusing on penetrating the markets where we operate. In addition, we have also made a very clear and distinct focus when it comes to technology. We do, as you say, only operate bikes, not e-scooters, not other vehicles, meaning that our advantage is that we are very, very focused and thereby reducing complexity enable us to have a more lean setup. That's at least one.
Of course, we believe that having this focus allow us to have a more trusted relationship with the key stakeholders in our regions. The focus on only bikes also allow us to have a very configurable setup, and thereby we can accommodate the special request and wishes from each city. There are always some special wishes and desires for a bike-sharing system. I would also say that Voi and Lime, I know that they are known, especially also here in Stockholm and surroundings. When we see in general in European tenders, we actually do not meet Lime and Voi that often. It's more competitors like German nextbike and Spanish-based Inurba.
Maybe just to add to that, it's also the fact that we both have an e-bike and a pedal bike, and that is actually widening the scope of riders because it's much more affordable to ride a normal pedal bike. Therefore, we can also bid with both, which the competitors you mentioned cannot. We do see the market a bit different.
Perfect. Maybe jumping to the tenders, Signe, you showed a very nice chart here or table. I think what's interesting, of course, that you're targeting 60,000 to 70,000 bikes by 2030. That would be around three times as much as you have today. You have as much as, how far I could count, maybe around 40,000 in your pipeline, in addition to the licenses. Could you talk a bit about win rates historically and how you see that trend developing? Do you see a better capability? Do you see win rates going up as of late because you've, for some reason, improved your execution or the likes of that?
I know you as a numbers guy, Mikkel.
Yeah.
When you look at our fleet size, you need to account for the more than 8,000 bikes that we are currently rolling out, meaning that going into 2027, we already now expect to have around 32,000 units, meaning that our ambition is to double and a bit more our fleet size. The 3x, it might also be that we will 3x, but that's not the base case of the company. That is also just to say that this is a very realistic track, also looking at the market expansion. That was just to say that it's actually realistic. For the tenders, perhaps you can elaborate, Signe, we do not disclose conversion rates. However, we have by winning Düsseldorf and Ruhr at least proved that we are capable of winning tenders based on both price and quality.
We have confidence in us being able to take our fair share of the market opportunities we have identified.
Exactly.
Sure. We've talked a lot about the fleet. I think another important unit measurement, of course, is the revenue per bike, which has seen a very strong development. I think it was DKK 140 a month per bike back in 2020. Now it's more than DKK 600. What has driven this, and how do you see the trajectory going forward? Perhaps which variable or input do you see with having the most upside here?
Yeah. As you also said, the industry is still very new. I think we are seeing a utilization of each bike growing rapidly through the period that you mentioned, and we do see that to continue over the course of the next year. It will probably also flatten out a bit more because the bike-sharing industry is coming into a more saturated market and more riders are aware of the system. We do see that there is still potential, but that it will flatten out.
As a supplement, five years ago, what you saw that was that bike-sharing was mainly for tourists.
A smart way of renting a bike when you visited a city. What we do see now that is that actually majority of trips that we have in our systems, they are from locals, just adopting the convenience of taking a train from your house into a station and then taking a shared bike to work or to a meeting or what other sort of appointment you may have. It's very much also driven by adaptation of locals using shared mobility services and not only tourists.
Yeah. Maybe just one quick question here in the end, because we started a bit later. Five years in the future from now, do you see yourself being in the same markets as you are now? Would there potentially be a upside in terms of expanding into new markets? What could trigger that, and what would be the criteria?
In my view, it is very important to stick with a disciplined focus. Our key efforts will go to penetrate our three strategic regions, Nordics, DACH, and Benelux. If we go three, four, five years out in time, then if we were to expand further geographically, it would be within Europe, and it would be by identifying a new strategic region where we believe to be able to become a relevant and top-tier player in that specific market.
All right. Thank you so much, Thor and Signe, for a great presentation and some good answers.
Thank you very much.
Thank you.