Hi to everybody watching in, welcome to today's event where we have the pleasure to present GreenMobility. To help us through today's presentation, we are joined by you, Anders , CFO. Today's presentation, we will cover the Q1 trading update. I will not call it a report, but a trading update, fresh from the press this morning. 29% growth. Good growth in customers as I could see, also somehow affected about your moving of cars between the countries, I guess. I guess we will get more, much more into that. As always, ask your questions in the box down below. Do it through the presentation. I'll see if it fits, or else we will cover it in the end. For now, I will hand the presentation over to you, Anders.
Thank you, Michael. Welcome everyone for this presentation. As Michael says, well, our Q1 trading statement, and I'm keeping it a bit more light than a full report. Let's jump right into it, and as Michael also mentioned, a big part of this quarter except besides of course running the business, has been the closing of Sweden and Germany as we announced in the beginning of January. This of course also means that we have an update for our usual map of cities, where we've removed some dots. That is also to show that we are now finished in moving the cars. I will come a little bit back to that.
Sweden and Germany are both effectively closed by now. I've also put up our usual figures, we'll get into that on the next slide as well, where we can see the development over time. These are more or less the standard as we see it. Let's jump into more specifically. Sorry, now I can see the slides as well. As we mentioned in the beginning of January, we sent out an announcement that we would refocus our strategy with the very specific focus of bringing the company into profitability in 2024 already. That of course entails quite some specific task, one of them have been to close two markets. That has been our operational focus during Q1.
We started already in January, quite quickly were able to move the cars. All cars, which is 200 cars in Sweden, have been moved for Denmark where they are now operational. The 300 cars we had in Germany, they have been moved and are now operational in Belgium and in Netherlands. No more cars and no more ongoing activity at least for now in those two countries. This exercise of course is also was initiated based on what we see in the market at the moment, specifically second half of last year, but also the uncertainty that we are in the middle of at the moment.
Of course taking some proactive measures, and by doing this, meaning closing the two markets, we are also able to ensure that we have enough liquidity to continue to running the business, and thereby no plans of raising equity in 2023, which was originally a plan of ours. The focus is very much on running our existing core markets, strong markets, all of them, and continue our business on that. If we look at the numbers, of course as Michael also introduced, 29% growth in Q1 compared to last year, which is I would say a good growth for us. Especially of course, since this movement of cars does have an effect on revenue.
There are periods where there's been weeks where cars are out of operations. Essentially we've had 500 cars that at least haven't been fully operational throughout the quarter. Given that, I think we're still in a good position on revenue. Net profit, of course that's a good guideline also towards eventually profitability in 2024, but also coming close to a break-even by end of 2023. Of course this is a figure that needs to go down significantly in quarter by quarter.
As we also stated that, during Q1, of course we've had some extra costs in moving cars, but also winding down in the last bit of operation in Sweden and Germany, which totals up to approximately DKK 6 million , which is a, of course a non-recurring cost going forward. In that already we see an improvement to be expected for the second quarter. Customers also a continued growth. We continue to increase our customer base across all markets, which of course is what we should do, and then also what drives additional revenue and growth across the markets. CO2 of course, that usually follows our revenue more or less. Depends a little on the trip length we do.
Trips also a good growth of course also to some extent impacted by cars being out of operations, or some of them have been out of operations for some weeks. Of course the negative part is that we have to turn down the numbers, so that has a drop in percentage. I think these are sort of the all lines on the business throughout the year, sorry, throughout the first quarter here. One of the things that-
I have a short question. This average trips, the DKK 69, just to clarify, is that the DKK per trip or is that the
Sorry, that's average trip in DKK.
Okay, perfect. Perfect.
All figures like that usually I have a small, but for some reason that notice has disappeared here. All figures are in DKK, our reporting currency, and here for every trip that's for Q1 DKK 69 per trip on average.
Perfect.
Of course, one of the things that is still an issue, I think there are many in these uncertainty times, but one of the, at least one of the cost lines and had a lot of focus, last year and continue to have focus is charging cost. It has gone down in most markets, but in Denmark the charging operators continue to keep a high charging cost, which of course still affects our operation in Denmark.
That is of course, for, I think for many, a frustration for us specifically as well, because you see the spot prices, you see the home, the private home, electricity, per minute or sorry, per kilowatt hour is also, has also gone down, but charging cost in public charging is still high. It is expected that's what we also hear from the suppliers, that it will start dropping in second quarter. We are very much looking forward to that. I also expect that Denmark should follow the other markets that we are in. Michael, do we have some questions here?
Yeah. There's your camera has just gone off. You are in a hotel, as long as we have the sound, I hope.
Still there. Okay.
Yeah. There was.
Yeah. How many of the cars have been in transit this quarter?
Yeah. Yeah.
Is there still some not running? During the quarter, a total of 500 cars have been in transit, 200 from Sweden and 300 from Germany. All of them, all 500 are back in operation now in their new respective cities.
Maybe to be a little bit nerdy, but what those cars been in transit, you know, 500 out of 1,600 cars you have, do we have some kind of a length where they have been between market, you know? What has your fleet size gone down, you know, on average? Is that 10%, 15% with the cars being in transit? I don't know whether you have that number, Anders.
Well, it actually depends very much on country because the actual moving of the car is the least amount of time. It is the registration of the cars in a new country. Some countries take longer. The movement period can go anywhere from 1 week to 4 weeks. I haven't calculated the average, to be honest, but.
No. Okay. That's fair enough. You know, in rough figures, there has been some effect, you know, 10% or what the fleet has been standing still, compared.
Yeah.
Perfect.
Absolutely.
Then there's also, one we can take in the end, you know, about your, the general trends. There's a question here also. In which location are the customer growth coming from? Is it broadly, is it Holland? Is it Finland? Is it Denmark, you know? Because I kind of see we are a little bit nervous of the customer, but as you mentioned, but your customer growth is kind of looks healthy also from Q4- Q1.
We actually I would say we have customer growth across the markets. Maybe I'll jump into the individual market slides because then we can get into that.
Perfect. Let's do that.
We start off in Copenhagen, and of course what you will see here, you'll see a drop in the first quarter, which is actually what we're used to seeing. If you go back year by year, there is a typical drop in first quarter. That's typically because we see a slowdown in spending across the board in specifically January, February. I think it goes in line with what happens for for many people that after Christmas they save a lot and January is usually a weak month. Nothing is unusual in that.
Of course, we also have now cars from Sweden, roughly 250 of those in Copenhagen, and they have an effect on average revenue as well, of course. Continuous growth in Copenhagen as well. If we jump, I need to go to the next one here. We go to Aarhus. We see a slightly similar, although it has had a sort of different historic development. Of course, Aarhus is impacted as well by new cars. Aarhus being at a slightly lower base than Copenhagen, there we've seen a slower uptake of new cars. Quite confident that we will see those cars being generating more revenue as we go along.
Aarhus is traditionally a couple of years behind Copenhagen, when we look at original starting point. Jumping to Belgium. Belgium has had a very nice curve, and it's a little bit frustrating to see the drop, but it's directly related to the new cars that Belgium has received. We moved 200 cars from Germany into Belgium, so essentially a doubling of the fleet in Belgium. In that light, I'm actually quite satisfied that we don't see a bigger drop in revenue per car, because it does take. Belgium was actually one of the countries where it took a little longer. Netherlands was the worst, we'll come to that. It did take a bit of time to in-fleet cars in Belgium.
Of course then from one day to another, you have double as many cars. The customers have to see that and as well, and that's also factored into our expectations. We know that when we put in new cars, it always have an effect. It dilutes on short term the existing revenue per car. We've also seen previously from Denmark, especially Copenhagen, where we've added cars several times, that that's a trend that we catch up within typically a quarter or so. The Netherlands and Amsterdam, here you'll also see of course a drop. Netherlands actually received the last batch of their cars from the summer.
They originally we had planned 150 cars, and we had the last 35 cars delivered just around New Year's. Then we've added another 100 cars from Germany. Of course that has a direct impact on revenue per car when we put in a lot of new cars at the same time. As well that Netherlands was absolutely the country that took us the longest of in-fleeting cars from Germany. Which means from the range I gave before, it took us roughly about four weeks to in-fleet those cars. As I also mentioned, they are all fully operational now.
It's very much about looking ahead and building revenue in these cars in the new markets. There we fully expected that there would be an impact in these markets. Had we not moved them, of course this graph would have been different because it would have been based on fewer cars, but then there would also have been some revenue in Sweden and Germany of course. There is definitely some effect this quarter on movement of cars. To take the last market, Finland. Finland has a, I think, normally I say it's our most seasonal market, that's absolutely true.
This winter hasn't been any change. Finland has seen true winter weeks. I think I can truly say that with both snow and a lot of minus degrees, and that affects that market as well. Given that, we've actually been able to maintain the level from Q4 and almost in Q3, which I think all is very good. Now it's about building additional revenue, we fully expect also Q2 to have a very positive effect in Finland.
to note that when you look at Finland over time, it is a little bit unfair to Finland because we started with 25 cars and then in the summer of 2021 we added, we moved from 25- 68, if I remember correctly. So we added a lot of car. We two and a half times up, and then we did the same this summer. So of course, that has an effect on when we look at revenue per car. Or we see, we see good development in Finland, and we actually see some competitors entering the market as well now. So that also mean there's something to be grabbed there. And we actually welcome that. We look forward to continuing the business in Finland. Let's see if the camera will stay. I think those were the markets. Mike, I don't know if there are any specific questions on the markets.
No, just round up and we'll take the questions at the end, I think, Anders. That's the easiest part.
All right. That's perfect. That's perfect. From the markets, maybe just a short comment. We, as part of our annual report, of course, we presented also our guidance for 2023. Essentially, the slide here is just to reconfirm that we don't see any change to that. That remains our guidance, of course. It's only been three weeks since we, since we sent it out, so I think that would have also been quite a shock if anything were changed. The focus is of course very much to continue growing the business in the existing cities we are in now, and growing the business on top line by 40%-50%. Continuous strong growth compared to last year.
With the cars that we've moved, of course, that plays a big part of it. We have moved cars from low revenue markets into high or higher revenue markets. That in itself should generate quite a step in revenue during the year. Of course, net result is a key focus. A guidance of a loss of DKK 35-DKK 45, which in itself will be a significant drop compared to 2022. Also something that we are very dedicated towards because that's the path to a profitability in 2024. Then of course, again, that, we fully expect that we have enough liquidity to run the business, so no plans of raising new capital, at least not on short term and not this year.
There are some questions. What is actually meant by break even on the year into 2023? Is that a quarterly basis? Is it a month you will run that? I know it's a very specific question. I don't know whether you wanna be that clear on that, but what is it we can expect there?
Let me start by saying that we wanna do it as quickly as possible. Realistically there is a process of getting there, of course, that we can't miraculously solve it by next month. I can promise we will do it. What we did say is that the goal is that we will come close to break even by end of this year, which essentially means in December. I can tell you that the entire team is pushing to do it as quickly as possible, but it has to be done in a healthy way as well. Our clear guide and our clear focus is to have 2024 as a profitable year.
When I say that, then it means it's profitable on group level and on a yearly basis. I think that's the key part. Break even, I think we will see that in various markets, during, hopefully during second half of the year. Then as a group, hopefully we'll be close to that by end of year. I think that's as specific as I can be right now. I'm sure that-
What is driving that most?
... it will be a topic we'll cover during the year, and then we'll probably come a bit closer to it as the months go by.
Perfect. What is driving that? Is that your revenue growth? Because you have 29 delivered. I do understand some cars has been in transit, so it's a tough comparison base to be measured where you had most of the cars already. Is it revenue growth or is it the cost still coming down? You know, your cost base you're looking at is, have you calculated in the electricity prices falling and, or anything else, you know, that kinda gotta change for it? What is your run rate now? Around DKK 10 million in if we deduct the extraordinary cost. What is coming from what you might say?
Well, I was almost gonna say everything, but you added a few things more that maybe I was out of my control. Of course, top line has to grow. Traditionally we also see that it grows. This Q1 is traditionally also always our weakest quarter. Of course also a push in those markets where we now have more cars, we have a significantly higher availability and presence. That's key as well. We will also have to work with our cost, and I think that's an ongoing thing. How do we make sure that we run our fleet at an even more effective pace? There are always areas we can improve on. It's both sides.
Of course there are also some costs that are given. I do expect that charging costs, as you mentioned, will go down. I can't build my business on when the charging companies will change their prices. It's, trust me, it's something we put pressure on them as well as all our suppliers. This is an effort that we have to do in GreenMobility. I don't wanna rely on suppliers doing the work for us. This is GreenMobility, you have to raise the revenue, and of course, we'll always work with our cost lines as well.
There's a question, why did it take so long in Holland and Belgium to get the cars in? I would have expected that, it would take longer time in Denmark. I think it takes a long time to get the license plates here. Any reasons why these markets are special?
Well, we did research it before doing it. We did know that it would take longer in those markets. It simply ties down to there is a, in Belgium and Netherlands, there's a difference when you register a new car and when you registered and import a car. Essentially we imported the car from Germany to Belgium and Netherlands, you can say, it sounds very stupid because we've moved the car, I don't know, 150 kilometers within E.U.
When it comes to motor vehicle registration then, you just have to follow what, whatever the rules are. There's a process time. This was simply a matter of paperwork being done in one office, and then in Netherlands, it actually has to go through two offices. First you do one, and then you take the papers, and you go to the next one, and there's a waiting time. Yeah. I was yanking my hair out of my head a couple of times.
That's what's happening. Then let's take a kind of a broad question. Have you seen any macro change since the consumers? Let's start by that. You know, you were worried in the start of the year. It looks like we are still consuming, at least if we look at a lot of numbers. We can always discuss that, whether it's going to break or not here in second half, but that's guesswork. What are you seeing if looking at your figures? You know, your trips were down, so the activity is. Are you seeing anything in the activity that drives the uses of your cars? I guess, are you more optimistic now than you were a year-end, or is it kind of the same?
I think the, and this is always difficult to really guess at. I would say I'm cautiously optimistic. It, I think it's, and it goes for many businesses. Like, you, we read, you can all read the newspapers, and there's a lot of negative stuff. When you go out at night, restaurants are still full. I was at the airport yesterday. It was packed with people. I'm like, "Wait. Okay, so people have money to travel. Okay, so it can't be all that bad." Of course, it's not as simple as that. That gives me at least an indication that I think people broadly have started to adapt to this shock that everyone went through during the fall, where everything just came rambling down.
There are some changes in behavior, definitely by customers, also people selling cars to move into more shared mobility. We've heard that from customers as well. I think it's still sort of moving slowly, but I would say it's moving towards the more positive side. People are adapting to an adjusted reality. Some costs have gone up. I'm still getting surprised when I go to the supermarket myself, and that of course will always have an effect. People still need to move, and it's a question on what's the most flexible and cheap way of moving, and we're definitely cheaper than owning a car. We're cheaper than a taxi. I'm still quite confident in what we do.
There's also the question, do we see any changes environmental, legal, I guess you are, you're still, you know, there's a lot of not legal stuff, but environmental stuff. Do you still see more support from the cities you are in? Are they still pushing your agenda? Is it, I guess it's also by the cost of running a city. It's kind of, how welcomed you are and what they want to give you, like free parking and sort of stuff. Are you seeing any changes there in the great picture, in the markets you're in?
On macro terms and in political side in the cities, no. If anything, they, it's being pushed even more. There's a clear consensus that we need to improve our society. Of course, if people can't pay their bills, then maybe the environment is not top of their list, and I can fully understand that. From a greater perspective, politically and, then absolutely there's no wavering from political side.
Maybe on the, by your, you mentioned Finland, that you have seen a new opponent up there. What about the other markets and, you know, maybe Copenhagen, you know? There was a lot of discussion what would your biggest competitor, SHARE NOW actually. Do anything you are seeing on the competitive landscape that is pressing you or either could help you? I know you say that you also need competitors to build up the market, but.
Well-
I guess.
I think I don't see a problem in having competition. We can definitely work without competition, but there is definitely movement in some markets. Our competitor in Denmark I think is still unresolved. For some reason, the acquisition of Arriva is still pending. I don't know why. I think that's not public knowledge, so that's why we were not able to really get that, but we'll see. Across Europe, we see we definitely see an increased appetite for some of our competitors in Belgium. We have MILES, which is German operator, predominantly traditional cars. No electric vehicles. They have started to change their fleet into electric, but that's in the beginning.
They are growing, they are expanding, which I think is interesting. They've entered Belgium now, so interesting. Something of course we follow very closely. It for us, from my perspective at least, for now, it actually just adds to the development of the market because you have more shared cars available. That leads to increased use. Of course, at one point you will hit saturation of the market, but for now we are, I don't see an issue in it.
Then there's a final question we can take that, is Renault a shareholder or only a supplier of cars? I haven't seen any message from them, but.
Renault is only a supplier. They have no shares in the company. Well, no, we would've been required to announce that.
Perfect. I also seen you are going to other cars in, at least in Denmark, maybe like
We have a few other cars. We have a few Polestars, we have a few MAXUS cargo vans as well. But I think it's, of course, and it's a topic that you can always sort of look at, okay, we have a lot of Renaults, why are they not involved and so on and so on. But you still have to remember that when we started GreenMobility in 2016, the options on EVs were very, very limited. We chose the ZOE because we were very happy about it. We're still happy about it. It's a very simple car. We know it very well. We can fix it. We can repair more or less everything on it. Of course, there are a lot of new cars on the market.
We see them. We also get to test a lot of them. It's not that we are ignorant. We are very much aware, but we look for, as you know, we've moved into premium cars. That's slightly different ballgame. When we look at the sort of the space where the ZOE is, it needs to be a relatively simple car, needs to be cheap as well. The ZOE has gone up, that's a challenge. The ZOE will actually go out of production next year. There will be some change eventually, that's for sure. Whether it's Renault or it's another, that's way too soon to say. For now, we've been very happy about the ZOE.
It works very well. It's good, it's good for the price.
And a little bit on the luxury car. I won't say luxury segment, but the higher priced car-
Yeah
... the premium segment, how is that actually working? You know, that must be some of the first data you are getting in whether, you know, for longer trips and people are willing to pay a little bit more for the comfort and I guess the, what is it called? The distance that you can go longer distance. I'm seeing a range to that.
The range of the cars is longer. We have in Copenhagen, we have Polestars. We've added the new Renault Megane, Renault again, in Amsterdam, because that was the market where we could get some initially. What we see is that yes, there are definitely people, I think we have a lot of customers who are willing to pay a little extra to have a better car that can drive longer or just is a more premium ride.
For some it's day-to-day, but most of them will be either for maybe business trips or longer weekend trips. They are performing quite well. Which is also why we want to have more of them. It's not gonna be the main part of our fleet, but I definitely see a need to increase the share of the fleet. Also because with five cars in Copenhagen, well, it's difficult to find them. We need more of them. That's definitely a segment to continue development on.
Perfect. I think we got through all the questions. Thank you, Anders. Sorry for the little chubby pictures, but you are in a hotel, so we can't always make sure that the lines are perfect. Thank you to the audience for listening in and asking questions. May everybody have a nice day.
Thank you, everyone. Thank you, Michael.