Welcome to today's event. We have the pleasure to present GreenMobility. To help us through, we are joined by CEO Kasper Gjedsted. Today's event, the preliminary figures you released yesterday with a guidance upgrade. I also need to say that this is of course not your full- year H1 2024 report that I think will be released the 27th. We will also have an event there. Of course there's very, very limited where you can dig down to that unless you wanna have the talk with the authorities about what you can say and what you can't say. I hope everybody will respect that. As always, you're very welcome to ask questions in the box down below. We already have one in. Also, I have some on my plate also.
Do feel free to ask that. Also in Danish I will try and translate to the best of my abilities. For now, I think I will hand the call over to you, Kasper, for a short presentation, then we'll go to the questions.
Okay. Thanks a lot, Michael. Well, obviously I'm satisfied that we've come so far in the execution of our change in the strategy that we yesterday were able to increase our guidance for 2024. I'm also very satisfied that this brings us on track to become the first and only company in Europe, current and car-sharing company in Europe to demonstrate this profitability of shared electric cars. A little bit about the numbers here. On our updated financial guidance, we adjusted our guidance for the continued business upwards, where we previously said that the revenue was gonna be DKK 115-DKK 125. We now say that the revenue is gonna be DKK 120-DKK 130.
The net profit from the continued operations is going to be between DKK 2 million and DKK 12 million, and where we previously guided between DKK 0 and DKK 10 million. If we dive a little into Q1 and Q2 and look at the preliminary financial results on the continued operations, we will see that we have a very strong growth. It's revenue that goes up with 59% to DKK 57 million. Our net profit is down to DKK -1 million. If you look at our net profit from Q1, that was DKK -2 and a half million. If you go to the Q2, you'll see that it was DKK +1.5 million.
If you compare the two, you will see, and it's pretty obvious that you'll see an accelerated growth and accelerated profitability here. What's, I think even more interesting is that from a demand perspective and, you know, from a seasonality perspective, we are moving into the best half of the year here in the second half of 2024, which I think again, will, you know, underline that we are accelerating the revenue and growth and profitability for 2024 for the whole year. We are confident about our guidance here. We're looking forward to the second half of 2024, which is traditionally the best from a demand perspective, the best half of the year.
Perfect. Should we jump to some questions then?
Sure.
Yeah. The first one, I have, how long time holds a car in average in your fleet? Is there risk of any value loss or loss on your P&L side when it is exchanged to a new one?
The lifetime duration of a car, of an electric car, we really don't know yet. Nobody knows that yet because, you know, the cars that were made, 10, 15 years ago are still running with a lot of battery capacity. My father-in-law has a Nissan Leaf, you know, that came out in 2012, I believe. It's still running with 98% battery capacity. These electric vehicles are completely different ballgames than the internal combustion engine cars, where we knew that they had to have a lot of big repairs as they were, you know, nearing their 36 months, 48 months and so on.
You know, for our fleet, I would say in general terms, we are constantly looking at when we should change the cars, and we have also changed cars, and we have got new cars in. You know, an example is that we are putting in new vans, new, electric vans are coming in later this month. Some have gone out, and so on and so forth. We are continuously monitoring where the residual values are versus the market values. Cars are generally not getting worth more as we go along the way, I think we have a very good plan for that, and we have a good depreciation model for that, so I'm absolutely confident on, on that. We also.
...and in that sense you also answered the second question, is there a big risk of any losses? I know you probably can't predict the car market and the price range that has been volatile in the electric market, but as in general terms.
I think that's right. I think we are very conservative in terms of our residual value simulations and how much we are writing off on the cars, and I'm very confident about that. I would also like to say that we are going towards an asset-light model, where we don't have any risks on the cars' residual value. I prefer a complete fleet, and as we move along in changing the fleet, all new cars that we're getting in, we don't see any residual value risk. We let someone else do that. I'll give you a couple of examples here, like we have the 50 Polestars that we took in in the beginning of last, of this year. We don't have any residual value risks on that.
It's a fixed amount that we're paying every month, and we don't care what basically on those cars, we don't care what Elon Musk is doing in California, or whatever the Chinese are going to do. That is the model that we're moving ahead with. Our vans, as I mentioned, we don't have any residual values on any of the new vans that are coming in, and basically all new cars that are coming in, we will not have any residual values. We are moving what I call as a asset-light model, where we don't take these risks on the cars.
There's a little bit of an accounting question. I don't know whether you have, we should have your CFO on the side. How much are they depreciating every year? I don't know whether you are down to these details.
I don't wanna go into details about that, but what I can say is that I'm very confident about the model, the depreciation model that we have, and that we also, you know, explained a little bit about in our annual report 2023. I'm confident about that. They are in line with the market development, the used car market development. I cannot go into details because it totally depends on which model do you have, how old is it, how many kilometers has it driven, and so on and so forth.
Perfect. There's the question here, and I don't think you commented on your discontinued operation. How big a one-time cost has there been this year to, you know, to move into the Danish markets? I don't know whether you can comment on that before the 27th?
You'll have to wait for the 27th of August to, for me to comment on that.
I know. I know, I know. How is the cash situation? You also didn't send anything out, and that's... I don't know whether you can comment a little bit on that also.
That'll be on the 27th.
The 27th. Then there's a little bit where you look into the future. What are the growth rates you expect in the coming years when you are alone in DK? Is there a risk that the growth will have a standstill, you know, after you have moved in the cars, moved out the competitors, and so on? A little bit about the expectation for growth rates, and I know you probably haven't guided for the future, so I guess how specific, I'm not sure how you can be.
Yeah. No, we haven't guided for 2025 yet, but what I can say in general is that I see a tremendous amount of possibility and opportunities for growing this business. You know, I come from the old-fashioned car rental industry. I've been CEO for Avis in Denmark and Sweden and for Sixt, our product is just so much better. I'm saying this as objectively as I can, of course, but it is so much better from a customer perspective. I think I've given the example before when I was going to Mallorca, and we had to wait, you know, 50 minutes to get our rental car. If a company like GreenMobility was in that airport, we would have been at the villa at the time when we got the keys for our rental car.
I mean, it only underlies what kind of model we are up against here. From a customer perspective, it's a much better product. Convenience perspective, it's a much better product. From a pricing perspective, it's a much better product. You know, the old-fashioned car rental companies, you have to rent a car for 24 hours. With us, you can rent it for 10 minutes if that's your demand, or you can rent it for seven days if that's your demand. I'm not afraid that we're not able to continue our growth paths as we're going along. We have only, you know, scratched the surface of the opportunities of this business.
There's, do the company have a attitude, is the wrong English word. A attitude to Chinese cars? Some customers might not, look, well upon them, and they haven't had a very big success, you know, in selling cars to the European or the Danish crowd. Do you have any, do you have any opposition against that? Or is that, are you purely economic viewpoint, the cheapest car with the cheapest running costs with the best profitability? Is that how you will look at a Chinese car?
It's a very political debate I'm a little hesitant to go into, but, I mean, on a general standpoint, this company has some very high standards from a CSR perspective, so that's number one. You have to comply to our CSR policies. You know, I think whenever we are going for a big change in our fleet, with a lot of cars being moved into the new cars being moved in and a lot of other cars are being moved out, we will ask our customers, and we will ask our shareholders on their opinion on this. It's not gonna be up to me, but it will be up to our shareholders and our customers on how they see this.
I mean, it's a very delicate question. You know, if you buy a Volkswagen, an electric Volkswagen today, around 70% of that, up to 80% of that is actually Chinese. A lot of the Teslas that are driving around in Denmark, they're Chinese. They're made in Chinese factories. You know, the laptop that I'm standing in front of here is probably Chinese. Oh, it is, it is actually Chinese-made. It is a very delicate discussion, and it's a discussion that we will have with our customers and with our shareholders before we make any decisions on that.
I guess it has been made a little bit easier by the tariffs, which could indicate that, you know, they are not getting with the very cheap car, you know. The, I guess the unit economics might not be as strong as maybe one expected half a year ago choosing a Chinese car.
Sure. It is a delicate discussion because you will see very soon that the first Chinese factories are opening in Europe.
Yeah.
What is it then? Is it a Chinese car? Is your phone a Chinese phone, even though it was... I mean, it was produced, manufactured in China, but it was designed in California. It's a very, very difficult discussion on this one, but I'm looking forward to have that with our customers and our shareholders.
I will let you off the hook. It's not me you need to discuss it with. There's a little bit about the longer term outlook. What is the midterm EBIT margin ambition? Previously, you had expressed a 20-point level. Is that still applicable?
That's something that's too detailed for this meeting. I'll comment more on that on the 27th of August.
Yeah. Perfect. A little bit about the competitive situation. Do you see any changes to that out there? You know, you move fast to keep competitors out after, you know, the competitor moved out of Copenhagen, are you seeing anything out in the market about the competitive situation? Is that changing? Are some also trying to take advantage of this situation, or have you forcefully with your reaction met that?
I think we have met that. You know, given our growth rates and the demand we have on our cars and our vans, I think we have dealt with that in a very diligent way. I mean, we still have a lot of direct and indirect competitors. I think one of the major changes, and that is actually to our favor, is that the municipality of Copenhagen has, you know, dedicated 1,000 parking lots to the free-flow model. That means us, we are the only one with a free-flow model, you know, where we can take one car from point A in the city and then return it to point B. The first 100 parking lots are already in our system. The next 300 parking lots, they're actually stamping the signs for that now as we speak.
The next 300, and then the next 600 is coming in in 2025. I think that's a major competitive advantage that we have. It's really good that the municipality really has seen the light of, you know, car-sharing cars as a major contributor to avoid the congestion and the parking problems and the pollution in the city. 1,000 parking lots will give us a, for sure, a competitive advantage.
Then there's a question to follow up on that. If you look three to five years ahead into the future, and I know something guessing about the future is always wrong, but let's try it. Do you then expect more or fewer competitors in Denmark, if you should look into the future? You know?
Well, I think that as we go along with ensuring that we can actually be a profitable company and that our growth rates are tremendous as we have seen now, I think there might be someone who will come in, but it's not something that I'm afraid of. Quite the opposite, I would say, Michael. For me, it's about growing the total market here, and there's plenty of place to grow the total market of this. It's gonna be difficult for them because we will have a very strong position on this market, and I don't intend to give away any market shares to anyone coming in, so it's gonna be very expensive for them. We're gonna be aggressive in any way possible on that.
I welcome them still, because it can, you know, give a bigger market.
A question, is there any cost connected with the, with those parking places you just talked about? Is that just a municipality stamping and giving you that? Do you have any cost associated with that, besides putting them in your system, I guess, so people can see that here they can park and so on.
Yeah.
Do you-
No more cost than we have for other parking places today. It's an absolute big, tremendous advantage to us that we're getting access to these parking lots that makes it so much easier for the customers to return the cars and pick up cars at those dedicated spots.
I have final question. How far are you moving the cars into the Danish market? How far are you in your plans? I could see that you indicated that you have taken the vast majority of cost of handling that. That's so much I saw you wrote in your message. Can you elaborate a little bit about how far you are in the plans of moving the physical moving and implementation of moving those cars into the Danish market?
Sure. We're done. There are no more cars in any of the international markets that we need to move. All of the cars, I'm happy to say that we have moved them in accordance with the plan that we made and in accordance with the demand uptake. That has been a very controlled process. It was very important to me and to us that we did it in a controlled manner along with the demand uptake. I'm super happy that I can say that that actually we succeeded in that big task.
Perfect. I don't think we have any more questions out here, and I don't have any more on my paper. Looking forward to the 27th, where we of course will dig a lot deeper into some of the questions we have had here today, where you are then able actually to speak about it, when we have the full sets of numbers. Thank you for joining us today, Kasper, and thank you for the audience for listening in.
Thanks a lot.