Earnings Call: Q1 2021

May 19, 2021

The conference is now being recorded. Good morning, ladies and gentlemen, and welcome to the Q1 2021 Results Presentation. At this time, all participants have been placed Let me now turn the floor over to your host, Georg Ciesemann. Hello. Good morning, everybody, ladies and gentlemen. Ulrike, thanks a lot for the introduction. This is a Q1 call of Complia Group. I'm here together with Peter and Sebastian, our finance team, and I'm happy to walk you through the results of our Q1. On Slide 3, obviously, it's slide sorry, on Slide 5, which you can see on the screen Slide 6, sorry, apologies. On Slide 6, We have presented to you the overall sector trends. For all of You who are dialed in through telephone, our quarterly presentation is available on our website as usual. So before we dive into the numbers of the company and what happened in the Q1, we would like to give you an overview of what's happening in the sector and some most recent developments. The first one There's a changing in the German law regarding changing infrastructure regulation. In German, that's Lade soeun for Ortmung. And in this regulation, there's a requirement for public charging infrastructure to have either a debit card or a credit card payment possibility included. And this is a quiet disruption in the sector as this legal requirement will be effective in 2 years from now. And all charging stations that are installed in the public space must offer a debitcredit card payment option. At Complio, we have implemented some 4 years ago already payment with debit cards. And our subsidiary, Volvi, has also very experienced very much a lot of experience In the payment sector, especially with credit card payment, it has already delivered 100 of public charges with credit card options. Unlike many of our competitors who does not have such an option, we have now a leading position And this is a clear differentiation, and this will lead to a strong barrier for other competitors in the market. There are other players trying to influence this law and are claiming that this is a lead time of at least 2 years for other players until They have developed credit card competent, have installed that in their hardware and charging infrastructure and then got the certification of the calibration law authorities. So this new charging regulation massively helped to strengthen our market position in the public area. So that was just recently announced last week and will become effective in 2023. The second on subsidies, We have highlighted this in the last calls as well. End of last year, Card V, which is a German Subsidy Bank, state owned, state backed has opened a subsidy program for private wall boxes, where each person who buys the Warbucks gets the first €900 for free from Kabi. And this was now 3x increase. There was in 2 steps increased to 400,000,000 and now in May, that was increased to 500,000,000 And already more than 385,000 application were registered, and we expect that this program is going to be continued. This helps us with our new wall box at Complio that we just recently launched. And also the wall v wall boxes, which are already in the market for quite some time. Number 3, there are strong messages from the VDA, which is the Verbantkerge Deutsch and Autobelersteller, which is the German Automotive Association And they are strongly asking to increase the share of public charging infrastructure. The target that the German government has set is 1 to 10, I. E, for 10 EVs in the on the street, We need at least 1 public charger, 1 public charge point. Currently, we are at a ratio 1 to 17, so 17 cars and only 1 public charger on the street. So they are strong up from the automotive industry to increase to decrease this ratio and therefore to increase the power infrastructure. So this also helps us as now the automotive industry are ramping up their product portfolio. There are very many new and attractive cars are coming to the market in this year From Volkswagen, from Porsche, from Mercedes, from Renault, they are all launching new series from the top end like the EQS from Mercedes, but also to the mid price segment like the ID. 4 from Volkswagen. And we expect that they will fulfill the increasing demand in the market. And as these automotive players are bringing the cars to the market, We hope that this will also pull the charging infrastructure massively. Number 4 is On our Austrian expansion, we have just opened an office in Austria beginning of May, we have recruited an experienced manager as a country manager in Vienna, who will help us to build organically the Austrian businesses. We have started with a partnership with KFW. Now we have also increased our workforces to internal management. And we just received last week the confirmation that our charters in line with the Austrian calibration law. And calibration law, as we have highlighted in previous calls is a requirement that was initially set up by the German government, that each kilowatt hour that you Charge in your charger is probably measured, and this is controlled by the calibration law authorities. And a similar regulation that we have right now in Germany was rolled out to Austria, and we received the confirmation that we can sell now AC and DC charger also in line with this calibration law would also give us a competitive advantage. These were the four highlights. And now I'm moving to the next slides on Slide 7, which is probably not directly related to the quarterly results, but I would like to spend a few minutes talking about hydrogen. We were quite frequently asked whether there's a threat, whether hydrogen will be a risk for our business and whether in 10 to 20 years probably hydrogen cars will replace electric cars. And here are some scientific numbers we would like to present to you, which are quite important to understand. And on the top side of this chart, you see how much energy is still left from 100% of energy that is put into a hydrogen car. For those of them for those of you who are not familiar with the hydrogen car, what is the hydrogen car? This is the electric car where hydrogen is converted into energy. So the energy is not stored in the battery, But it's stored in a tank, in fluid hydrogen, and but effectively, the motor The electric motor is more or less the same. It's just the way how you store the energy. It's not the battery. It's the hydrogen And the process is as follows. The energy and water is produced into hydrogen. And to transport hydrogen, you have to liquefy it and keep it with very, very much pressure or at very, very low temperatures. So that's a massive energy loss while converting energy into hydrogen and to transport and to process it. And this is probably something that is completely underestimated also when talking about hydrogen gas stations. Yes, If you fuel up your car at your hydrogen gas station, this goes much faster than charging up and EV probably. But to come back and to refill the hydrogen gas station, it will take roughly half an hour until the pressure that you need to fuel the car All the temperature that you need to fuel the car is reworked to the 250 bar. So it takes 20 to 30 minutes. And there are long, long and some of the hydrogen gas stations in the state, there are long queues because The drivers, the hydrogen car drivers, there are only very few ones luckily, have to wait until 20, 30 minutes until the pressure For hydrogen at the back of the gas station, the hydrox in the car can be fueled up. So you're losing already roughly 50% of the energy while in the production and the processing process. And Later on, there must be a conversion back to the electric motor. And again, it is again 50% of the overall energy. So only 15% to 18% of the total energy that initially went into the process left for the electric motor. And on the lower end, you can see the battery process. You'll probably lose a little bit of energy in the transportation through the grid. And then there are some losses in the battery while charging in and charging out of the battery, but effectively, we are at about 70% usage of energy, I. E, you need 4 times more energy to have the to run the same distance with a hydrogen car compared to an electric vehicle. And hydrogen technology is in the market for decades already, So there is not there will not be many improvements going forward, but the EV technology and the battery technology is still in, I wouldn't say baby steps, but in the teenager steps. And there will be more and more improvement, especially on the battery side. So the ratio of 70% usage of battery cars will significantly improve going forward. So we don't see any threat from hydrogen cars, And the same views comes from major automotive player like Volkswagen as well, who are completely committed to electric cars and by the way also electric trucks. So the Volkswagen subsidiary, Traton, which is the truck segment also is pushing the heavy truck and it's heavy truck the electrification of heavy trucks and they expect also Going forward in the midterm that hydrogen trucks will be replayed by electrified trucks. So what does this mean for our business and the overall EV business on Slide 8. On Slide 8, you see the share of EV registrations to the overall car registrations. And what we have mentioned is the Share is massively increasing. And in Germany, that was roughly at 20%, beginning of the year already at 25%. That means every 4th, every 5th car is already an electrified vehicle. Still, we have a large proportion of plug in hybrids. We believe that in the next years, the plug in hybrids share will decrease and the share of fully electrified pure battery electric vehicle will increase. And this is in line with the mission statements of many of the major players, whether it's General Motors or Volkswagen, They either plan to completely cut the production of ICE and the R and D of ICE or they will significantly increase the share of EV. So the disruption have just started and we and will continue for the next decade. Now after this view on Some macro trends, I'm now happy to walk you through the Major topics that happened at our company, Copelio, on Slide 9. First of all, the Warby acquisition that was closed in Q2, but we have negotiated the deal in Q1. So that was a successful deal. We have closed the deal end of April and First time consolidation of the company will be 1st May. We are fully on track with the post merger integration. We plan to integrate Wallaby to have 1 firm, 1 sales force and 1 integrated platform That's going quite smoothly. And we are reviewing right now other M and A options to further strengthen also our European footprint. In terms of top line, And Peter will highlight on the financials later on in the financial segments. Just to mention that we're growing roughly 43% year on year, and we have a properly filled pipeline for the year to go. On the European expansion, I mentioned already the Austrian expansion and that we have set up an office in Vienna and going to establish a subsidiary now in Vienna and the calibration law will help us to roll out our products to Austria. But we are also expanding our activities in Poland and Switzerland. We have established in the first quarter relationships with partners there. And the next step is to analyze whether we will establish our own workforces in Poland and Switzerland. The next one I would like to highlight is the e commerce team. Despite the fact that we are not the B2C business, but a pure B2B business, sorry, we're not And we have built up an e commerce team, and this e commerce team includes the training and partnership and the technical team to tackle the installers and electrician market. In Germany, there are more than 40,000 electricians and installing companies, and they will help to roll out e mobility overall in the country. Because the 2 natural partners, if you locally need a charger or a wallbox, is either your utility company or your an electro insulation company. And we have started this web shop in Q1. We have hired an experienced digital manager, and we have launched this web shop, and we have already some 6 digit sales numbers. And the idea is that there's a direct sales channel from Complayo as the producer of charging station 2, the electro insulation company, this is a complete different approach than many of our competitors go. Many of our competitors like Menicus and ABL, they all sell through wholesalers. So they sell to wholesalers. They never sell directly to the electro insulation companies, of course, they lose some margin. And we believe in times of Amazon and Google and all the digital experience that consumers have also electro installers will order online their charger, whether it's a wallbox, whether it's AC and the DC and we already sold DC chargers through our web shop. And we believe this is also A great add on in our sales strategy to grow through this e commerce platform. Next one is the product of our Woolworths. We are ramping up right now the production. The first 100 plus pieces are produced and sold. We already won 4 digit orders from a large international utility player. So despite the fact that we're just ramping up the production And we received this order, which will kick in at the remainder of the year and the year after. So we convinced with the functionalities, the technology that we built into our new WarBox, this major customer. That was a huge success. And we expect to further grow Warbucks revenue, not only at Warby, but also It's compleo going forward, which will help on the top line. The last one is the investment into growth. And we have massively ramped up our R and D team, which was grown for more than 124%. And we will continue to invest into R and D. This is part of our strategic DNA. The same as For the production capacity, we have rented out a new production site in Dortmund. This is interim production site. We are in process to finally we are in negotiation process for our new Complio campus. We want to merge our actually split sides to one side And to merge in 1 headquarter R and D level production site, all our complete of forces, and we think we can close this deal in Q3 and then start with the construction process. So we have invested into R and D. We have invested into the sales team like the e commerce team, and we'll continue to do so. And looking forward, we're very optimistic into the year going forward. And now I would like to hand over to Peter, and You will continue on the next slide on the financials. Thank you, Georg. Good morning, everybody, from my end. On the financials, as Georg already pointed out, we've grown nicely by 43% year over year, And that is about in line with our expectations. We had some delays in the call offs of a large contract with a customer where we had expected the call offs to start a little bit earlier. That has no impact on the total volumes that they have placed for the full year, but just the pattern is slightly different from what we initially expected. Where did the growth come from? Our DC Products sold pretty well. They have grown 162% year on year, which is mainly driven by fact that we just introduced the DC charging stations in the second half of the first quarter last year. 2nd part is our project and installation business that has grown by some 54 percent to €1,700,000 and that is mainly driven by a large order with a German automotive sports car manufacturer that we have acquired in the second half of twenty twenty. As Georg already pointed out, the group wide sales pipeline looks nicely filled. We are working on couple of large tenders at the moment, and we're very positive with the functionality that we at least can get through that. As mentioned, we are ramping up our wallbox production and we will start selling it through the web shop any minute. And then the Recently acquired Walby pipeline as well is nicely filled, especially with the OEM business of Walby. Next page. Looking at gross profit, year on year, we've grown our gross profit by some 27%. However, gross profit margin is only at 23%, and there's 2 main impacts in this quarter. One is that we have ramped up our production capability and capacity by hiring for the people to be prepared for, a, the wallbox production and b, the growth that we are expecting in the second half of or into the remainder of the year. That has about an impact from the, let's call it under absorption of that personal capacity of roughly 220 basis points. And the second impact is, and we've already seen that in the last quarter of 2020, that the accounting on the projects in the P and I business have a little drain on the margin as long as they are still running projects and that will then flip when we are kind of finalizing the projects and that kind of really accounting for that. With the profit margin, so according to IFRS, we are not allowed to account on any profit while we are in the project phase and that has about an impact of €120,000,000 €130,000 in this quarter, which translates into 150 basis points. On top of that, as you know, we have a large order with the German automotive customer on the DC charging stations. And As usual, when you work with OEMs and as usual when you're working with large contracts, we have a little higher price concessions that we have to make in order to win those, but that's ordinary part of the business. Excluding those effects mentioned, gross profit margin would be in the range of 25%, so in line with prior year and in line with what we expect going forward. On the OpEx side, I think the overall message is that the OpEx increase that we are seeing across all functions is purely driven or mainly driven by the increase in FTE. We have some step fixed costs that were not fully utilized by the increase of the top line, and that is our investment in the future growth. Total personnel costs grew by some €2,100,000 across all functions, including COGS for the whole business in the quarter. As a percentage of sales, This means that compared to prior year's quarter where we had 33% of our sales being personnel costs, In this quarter, we had some 47%, which is our investment in the future and that is about 1 point €2,000,000 impact on the overall profitability that we have invested in the future. The impact on the EBITDA follows What we explained earlier, it is mainly driven by the investment in people and in capacity In the second facility that we've just opened, those investments, we believe, are key for our future success and for generating the growth and the top line and the profitability going forward. We have some minor one off costs had in the quarter that mainly relates to the real estate agent costs for the new facility and some advisers, and we're expecting the one off costs at least excluding M and A related costs to come down on the long run. And just to re mention that, you might become bored from that. But just to point out, we don't we still don't capitalize any own R and D expenses. And net of the €1,300,000 our EBITDA prior to R and D would be in the range of €1,100,000 Closing with the cash flow. I think the cash flow is a good summary of what happened in the quarter. We've invested in people in our operation and in R and D, and that cost us some $2,000,000 in cash with the net profit or the net loss that we've made. And then we've invested into working capital around €4,000,000 The majority of that, €2,600,000 is a planned increase in inventories in order to be prepared for a, future growth And B, to be prepared for some expected prolonged delivery times that we at least get a feeling that happened in the remainder of the year. And part of that is semiconductors where we have acquired already kind of a large part of the numbers that we need and have them sitting on stock. So this is investment of 2,600,000 The remainder in the working capital increase is mainly driven by the increase in receivables on the back of the sales pattern in the quarter. On the CapEx side, we are still continue to be disciplined. The €1,000,000 that we've invested here is mainly based on software and investments in the new facility. And all in all, that is the 7,000,000 of cash that we've invested in the quarter. Now back to Bjorg. Thanks, Peter. I'm moving now to Slide 17 to reiterate our Strategic agenda and just reminding you on the Four main pillars that we have. 1st of all, the European expansion. We are still very much Germany focused. We want to become and we will become a European player and with further investment in European Expansion. Number 2, we are an R and D driven company. We're a tech company, a green tech company. We'll continue to invest into R and D to have all in house competence for all kind of charging infrastructure, AC, DC, but also all the software, including back end, competent. Number 3, as we just mentioned, we have some interim production sites, But hopefully, in 2, 2, 2.5 years, we will have our own headquarter and including new production facilities, R and D lab. And number 4, this is The new add on to our strategy, which we announced after the Huobi acquisition, we will continue to non organically grow with the focus outside of Germany for further add ons that fit to our strategy. We will be very conservative. That must be an accretive deal, very cautious. There are a couple of deals that we're reviewing right now, but only if it's completely fit into culture and strategy, we will go for further deals. Closing with the guidance for the year. So for the will be consolidated starting 1st May, and we want to be 1 company. There might be a rebranding, but we want to keep the Warby brand for their software technology parts and their back end products. And going forward, we see that we jointly will have a strong position in the German market and will achieve on a consolidated basis between €68,000,000 €78,000,000 We have narrowed the range a little bit compared to the last guidance that we have given, and we confirm the breakeven on the adjusted EBITDA level on group level for 2021. And this is all in line with the conservative accounting policy, I. E, not to capitalize any R and D, But this adjusted EBITDA number includes the completely expensed R and D investment and the R and D cost from our side. Ladies and gentlemen, we have thanks a lot for your attention. And we're now moving to the Q and A part, and we're looking forward for your questions. And the first question comes from Michael Jungheinz, Commerce Bank. Please go ahead. Yes. Good morning, gentlemen. First question is, I want to touch on your M and A pipeline. Cost has mentioned that you are reviewing other M and A options in Europe. So could you please explain a bit on the timing if everything went according to your plan And in which regions you ideally want to gain further footprint and how such a deal could further complement your current product portfolio? And would you consider financing FSRD from internal sources given that you have about €30,000,000 cash on hand? Or would you aim to undertake An external funding process like in the case of your Wolvie acquisition would be my first question. Yes. Michael, thanks for your question. So regarding M and A pipeline, As always with M and A deals, this can come quickly. This can take some time and mine disappear. But we are positive that we will close at least a deal this year. This should be most probably outside of German deal. We have mentioned what are the key countries where we will go to, Austria, Switzerland, the Nordics, France. So and therefore, it might be in one of these countries. And this should be something with technology and market, which is a good add on on the technology side and the market add on. But again, these are some early talks and negotiations that we are in, and we will see. And when it comes to financing, we have to consider all options, and it's depending on the price. So if it comes with a smaller price tag, we could finance this with our internal sources or with some leverage on it. If it's a bigger deal where we should need external financing, we would review whether we go for any capital increase or we would find some other financing options. So please, I cannot give you more details as it's still an ongoing negotiation. We try to target our target is to continue the contribution in kind deal. So we want to have deals where we can pay with our Complio share as a currency and therefore issuing shares with long lockup periods to have an alignment of the interest of the selling parties. And therefore, my perfect deal would be to pay 100% in shares. This probably will not work, But this would be my perfect deal where we try to negotiate to in MHAD. Okay. Thank you. Fully clear. My next question is on your on the current trading environment in Q1 and Beyond that, so though you do not report order intake, but could you nonetheless give us an indication Where are your book to bill ratios stood at the end of Q1 this year? And furthermore, could you elaborate on the demand environment since the beginning of Q2 this year. So have you seen any particular slowdown or acceleration of bookings as compared to Q1 this year? Yes. So in terms of order forecast, This is still unchanged like the last year. So the industry has not changed. So we have a view for the next 2 to 3 months. So we have a clear view on the order for the next 2 to 3 months, which is in line what we have expected and in line what we have guided. So we see we will see an increase coming from market growth, but also from the launching, the ramping up of the Warbucks. So we would see an acceleration of growth going forward compared to this quarter. But again, there are if you want to install a huge EV charging part, you need approvals, You need permission from the grid operator and we see that at many major projects that there might be delays of 3, 4, 5 months. And even if our clients plan to order and plan to install, there are other instances around, especially from the grid operator side that will delay products and therefore delay our revenue. Okay, understood. And I believe it would also be a fair assumption that growth in your AC business should also improve in the quarters ahead, right? Because there was a low growth in Q1, but As your colleague referred back to it, so it was like driven by somewhat postponement With regards to a major customer, right, which you recently mentioned? That delay referred to both the AC and DC. It's a customer that is ordering both product lines. The AC business grew by some 17% year on year, and we expect that to pick up in the remainder of the year to be in line with the others. And especially the wallbox business will be part of the AC revenue. So this is going into that bucket. Yes, understood. Another question I have is on the new charging regulation, what you touched on, which requires that either a debit or credit card payment system must be attached to the station. Do you see any short term growth headwinds for your new equipment business from this new policy, maybe because I could think about public sector customers would now be in the need to make some retooling with their existing installed base, which might induce them to postpone new tender processes by a few months or quarters or would you clearly see this new policy adoption as a clear growth booster for your public sector business in the upcoming months. So what are your thoughts on this? Yes. So we see this is a competitive edge that we have and a competitive advantage. As this regulation was just launched last week, I think the industry will take some time. And it will take some time until this is reflected in tender processes, until this is reflected what does it mean for refurbishment of existing charging stations. So we expect that this is a more strong midterm impact than the short term impact in the next weeks or months. The industry has to adopt. They have to understand, update the tender documents, understand requirements, and we have to position ourselves in this market. So this will be a boost, but we see this more as a midterm boost. Menekus, one of our largest competitors, has stated that they would need probably 2 years until they have adopted and they are on the same level that we are right now with our debit and credit card competence. And whether this will boost probably of the existing tenders, yes, maybe, but I would rather be a little bit conservative on this one, But very bullish on the midterm development. And in the short term, Say in the next few months, it would be neutral. There would be no significant headwind from the coming quarters. Yes. Because normally all these tender processes, all the large orders, they have, let's say, 6 months plusminus planning time. It's only going to be effective in 2020 3, so if you install right now a public charter, you wouldn't there's no need to fulfill this regulation. So probably existing tenders will continue with the old Larders Oil for auto with the old regulation. And but then in a couple of months from now, this new regulation will affect tenders and then hopefully positively our business. Good, understood. The last question I have before I go back to the Q relates to your gross margin development in Q1. So as you outlined, it dipped below last year's level. And I understand that there were significant ramp up costs associated with the capacity expansion. However, in view of current discussions on a tightening supply chain environment with rising inflation expectations for key raw materials for semiconductors. I'm wondering whether you saw any additional headwinds in Q1 on your gross margin coming from these discussions from this topic. And in addition, it would be helpful if you could elaborate on this potential gross margin headwind for the remainder of the year as we are now in the middle of Q2. Yes. So as per today, we see relatively little negative impact from the shortage in semiconductors. The main headwind that we see is that prices have increased from roughly $0.80 to $15 to $20 We have 1 to 2 of those computer chips in our charging stations. So the overall impact is quite limited for each charging station. So it's kind of we're talking about a €30, €40 euro per station lower margin that we are going to make on those products. We are in discussions with the producers and not only with the resellers. So we try to get that solved pretty soon, hopefully. But If there's any further shortage coming in the market or if there's again a ship getting stuck in the Suez Canal, We just don't know that's out of our control. But for now, as for today, also as per in the 2nd quarter visibility, the financial impact seems to be quite limited. It can. It could change. But as for today, it's a couple of €100,000 on the year that we might to invest into higher prices of semiconductors. Great. Thanks, Alistair. I'll go back to the queue for now. The next question comes from Emmanuel Cahier, Kempen. Please go ahead. Yes. Hi, good morning all. The first question I have is Follow-up on the regulation in Germany with respect to payment. So we know that Manikas does not have the debit and credit card option, which you provide maybe an overview of some other competitors who do not have that option? The majority of players do not have. So it's RBL, it's Menekas, I think it's Schneider Electric. ABB has for some extent, I know Alstom does not have EV box, I'm not pretty sure. I think they have on the DC side, but probably not on nor they don't have on the AC side. So the major Dutch and German competitors on the AC side, ABL, Manikas, EV Box and Alcon, they do not have. The question is whether they have it in their R and D pipeline and they will solve it sooner or later. So on the AC side, I think We have at least 1 to 2 years competitive advantage with the Huawei and the Complayo technology. On the DC side, I think it's ABB. For the other ones, I'm not pretty sure. We know that Delta does not have, Tritium does not have, And Albitronic is right now working on this. Maybe one remark. Alphen has just launched for the German Charging stations in Germany, they've launched the same solution that we have developed together with the DLS Bank some 3 years ago. Only on the debit card side? Only on the debit card side. But they basically bought our system for the German market products. But it's a difference there still is a difference between debit card and credit card and the credit card technology is advanced and more complex. And at Complayo, we were working, as you might know, also on the Credit card technology. And luckily, with the acquisition of Vauld, we have a super experienced payments, credit cards team and also technology, which they have already implemented into their charging stations. But of course, the industry will not hurry up and will try to develop also credit card options. Yes, understood. Thank you for that answer. And then another one on the regulation, but moving from Germany to Europe. What is your current thinking about European regulation? Could European regulation move closer towards German regulation? And from that point, could that be an advantage for Compileo to do European expansion? And we are part of ChartUp Euro, which is the association of charging players in Europe, so we are quite close and we are the PR representative company in this association. So we are quite well aware what's happening on the European level. One topic that we follow is the calibration law regulation. We expect that this is something that will come on the European level as well. But overall, there's a need for standardization. Europe is still a quite fragmented industry with different local regulations, whether it's in the UK, whether it's in France. So we expect it will probably take 2 to 3 years from now until we have a more harmonized level. But do you believe that the modes of Complio could increase going forward driven by European regulation? Or is that just too early to Yes, because we see the complexity that we have coming from The German politicians and German regulations and German grid operators, This will be rolled out to other countries, yes? And whether this is the credit card requirement, the cannibalization of conformity and other regulations. So we see Germany as one of the, let's say, most complex, most regulated countries in terms of regulations and this will positively influence our European rollout. Yes. But could Europe also not choose to make things more easy? Or is that impossible to do if you want to have things standardized? What do you mean with easy? Well, you see this as an advantage, but could it not be the case that Germany remains more regulated versus other European countries and from that point that it's not really a benefit? That's a difficult question. There are still industries who try to protect their players and have set up Also local regulations, for example, in France, where local regulators on shutters, on plugs, which are unlike the German ones, which will need to harmonize the product portfolio. I think the overall message must be to harmonize our product portfolio going forward for European rollout. But this is a complex topic. The passporting of regulation like it now happened to Austria, This is something that we would expect so that the regulation and the COFINA regulation will lead to a passporting in other countries. Yes. All right. And then moving to organic sales growth. So in Q1, it was around 43%. I think if I look at The standalone guidance for Complius was closer to 66%, I think. So the acceleration that you need to see in the organic growth rate is that coming from the delay in the order and from the wallbox product that will be added? Or are there other drivers that you believe will help to accelerate the organic sales growth in the coming quarters? Yes. If you compare the and I don't want to call it a pattern because kind of the history that we have is too early to call it a pattern. But last year, we had about 16% of Q1 sales compared to the total year. If you compare Q1 with the guidance that we've given, we're about in the same range. And similar to last year, There will be a significantly positive effect from the WarBox coming. So yes, we believe that Likely, it will look like in the last year that a higher share of the sales growth is coming in the later part of the year. And besides the product mix, it's also the sales channel and the market mix As we are building now up new country sales teams like in Austria, this will have an impact. So it's the product, The increase in the product portfolio is the increase in the market, I. E, having new markets where you're going to sell. And number 3, these are the sales channels as we are tackling now electro insulation companies, which we haven't done before. And with the e commerce shop, there's also a new sales channel. So these are the 3 driver, New products in market, Q and A will help. Yes, that's very clear. Thank you. And then on EBITDA, So you guide for breakeven on EBITDA in 2021. Could you maybe provide a little bit Color how you expect the ramp up in adjusted EBITDA over the next three quarters because to get towards breakeven, you need to have some quarters that are already positive. Will that be a gradual evolution driven by the growing top line? Or are there other elements that, yes, that will play a role here. Yes. I think one thing you just answered yourself with the growing top line and the higher absorption of fixed costs, we will have a natural effect just from the operating performance and that will offset the slightly weaker numbers in Q1. The second effect is the consolidation of Wall B, where we will have for sure some consolidation effects starting in May. And I think that is we have a different product mix. We have the WarBox out. We have different sales channel, which will shift our sales expenses quite a bit. So from that perspective, we still are confident that the guidance that we've given is Yes. All right. And then so that means that 1 yes, you would gradually move towards breakeven. Could we already expect close to breakeven in Q2? No, we will have a one off impact from the M and A costs And the cost for the capital increase that we have in Q2, so this will have an impact on the organization, on the TETA and not for Q2. And we have so far issued for the first time guidance at all. I know you gentlemen from the analyst side love to have more details, more guidance, more numbers, but This is still a young growing company, so we are comfortable and happy. We have the guidance for the full year, but I wouldn't break this down 2 quarters. Yes. All right. Thanks a lot. It was a pleasure. Thanks for your questions, Maher. So at the moment, there are no further questions. And there seems to be one follow-up question coming from Michael Jungheinz. Please go ahead. Yes. Thanks for one follow-up question. I want to touch on working capital development. So you mentioned that you increased inventories to be prepared for loan delivery times. Could you explain for which kind of inventories or raw materials you are currently seeing extended delivery times? And have you seen any relaxation of this since the beginning of Q2? Or has this Topic become even tougher as we are speaking. Main components that we have at least invested in is the casings for the DC charging station. It is cable. It is semiconductors, as mentioned. And I think that's most I don't know, it's a licensed electronic Power Electronics. Power Electronics that we have invested quite a bit into to have enough capacity on stock. And I think that's basically it. Okay. Thank you. With regards to your new sales regions, you have just recently entered the markets in Switzerland, Austria and Poland. Could you give us a rough picture about your current trading in these new regions as of where you're speaking right now? I didn't get this question on the new region. Can you please repeat this, Miguel? Yes. Yes. Yes. With regards to your new sales regions, what you have just recently entered Switzerland, Austria, Poland. So what is the current trading environment here? Could you give us an update with regards to these 3 regions what you have not just recently entered. In terms of sales in terms of Sales revenue or in terms of market development? Yes. In terms of market development? Yes. And the passions with your sales team is asking. Yes. I mean, the market development is comparable to the overall sales and car EV registration rate development in Germany, which you can see on the slide at the beginning. So the markets equally increasing in Germany as they are increasing in Austria and Switzerland. As we are just ramping up our partnerships and Our old sales team, it will take some time until we gain some market share there. So please allow us to give us some chance to work on these expansion plans. But overall, market value more or less behaving the same in Germany as the North Koreans with them. Okay, understood. Just the last question, very short one. On your calibration law conformity on the DC side, So are you currently still the only provider of calibration law conformed DC charging stations in Europe? And if Yes. How long would you likely be able to maintain this position? No. There are other players announcing that they will be in line with DC conformity, we know that Alcatronic just has announced it that they're going to rework their chargers in the second half of the year. So they are offering nonconformed DC chargers and offering them and to upgrade the stations in the second half of the year. So at least the competition is coming now in the second half of the year. Okay, understood. Yes. But as we speak right now, are you still the only one with this calibration of performance here? Yes. As far as I know, we are the only one, but That might change. Yes, understood. Okay. Thank you. You're welcome. The next question comes from Thomas Schiefler, Equities. Please go ahead. Good morning, gentlemen. This is Thomas Schiefler from Equities In Frankfurt, I would like to touch on your CapEx development. In the Q1, there had been a decrease. And in light of your headquarter, You would like to erect at the end of the year. How will the CapEx will evolve in the coming quarters? And will we the CapEx will increase in the coming year? This is the one question. The other would be on the R and D activity. How many FTEs are within this segment or within this activity? And will you increase the number of employees at this segment? Thank you. If we start with the second question, on the OpEx slide in the financial section, there is the headcounts for each division. We've ramped up R and D from 21 people last year to 65. And we're continuing to hire, especially on the software side. On top of that, we have, let's call it, acquired an R and D team from Walby, which we now will integrate into our team as we speak. And we will continue to further invest into our R and D capacities. And on your first question on CapEx, we are a CapEx lean company. So the investment that we have are rather limited to some equipment and some technology in the production, but we have leased the 2 production side that we have so far. And the CapEx into the real estate And the new production site, this will the construction will take place in 2022 only on the next year. So for this year, There won't be any construction cost. We will start to acquire a land slot probably, yes, if we would buy and not rent it out. But there might be an investment into a land slot and but all the construction costs of $20,000,000 $30,000,000 whatever, we will have in the next 2 years only, not the next quarters. So construction will start in next year and will yes, you will have to move, I guess, after 6 or 9 months, We will move into the new buildings? Yes. I assume we will be quicker in the construction process than airports in Berlin, our Opera House in Hamburg. And therefore, I hope that after 1 year construction, we can move into the new building. So, but this is something that we have to consider carefully. And as always, construction can take some time and can Maybe late. Yes. But on top of that, we are in the process of Launching a new ERP system as we speak. So I think we're starting with the project in 2 weeks' time. So there will be some CapEx related to that. And then there will be already now CapEx in R and D technology that we want to kind of that we will build up in the current facility already now. So testing lab and some test equipment that we have rented at the moment and we will now invest into our own facility. We will buy that already parts of that already now and then move it to the new facility once it's ready. So we will see CapEx ramping up a bit in the second half of the year. Okay. Thank you, gentlemen. So there are no further questions. Back to you, Mr. Kliesemann. Yes. Ulrike, thanks a lot for managing the call. Ladies and gentlemen,