Morning, and welcome to Eurowag's first Capital Markets Day. Thank you for all of those who have come here today. Thank you for those who've actually flown in for the event. We really appreciate it, and thank you for those who are joining us online. Welcome also to our ExCo, who have joined us today. We also have our chairman and a few of our board members who are also in the audience today. It's no coincidence that this week actually marks the two-year anniversary of Eurowag being listed on the London Stock Exchange. As many of you know, we've been incredibly busy over the last two years, both growing the business organically and inorganically.
We hope today, after today, that you don't, not only just understand Eurowag a little bit better, some of you are new to the story, but you really understand our ambitions and the exciting opportunities that lie ahead of us. Let me run very briefly through the agenda before I hand over to Martin Vohánka, who will start us off with our strategic overview. We'll then move to commercial, where Martin will be joined by Miroslav Nov á k, who's one of our country managers. He looks after Czech Republic and Slovakia. We will then take a half an hour break. For those who are in the room, you'll have the opportunity to go outside and look at the display tables, talk to our colleagues out there, and as I say, you've got the ExCo here, too, if you want to have that, those conversations.
We'll return back into the room, where we'll have the session that I'm sure you've all been waiting for, our product and platform, and that will be presented by our CPO, Martin Strigač. And finally, Oskar Zahn, our CFO, will finish with some financials. At this point in time, we will have the opportunity to ask some questions. For those who are online, there is a Ask Question tab on your screen. Please feel free during the presentation to ask your questions, and we will answer them whilst we are doing the Q&A session at the very end with all of those in the room. And finally, one point for me. Oh, so sorry, if you don't have to rush off, we'd obviously love you to join us for some lunch outside.
One last point from me, for those who are in the room, we're trying to be eco-friendly today, so if you want some of the slides, we haven't printed them. But if you look on your lanyard, we've given you a QR code, which will take you straight to our website, where the presentations are available. With that, before I hand over to Martin, I'd love to just show you a quick video. Please enjoy.
Every day, thousands of trucks begin a journey, moving the goods on which our lives depend. Just a driver, their truck, and the open road. Ahead lies a complex journey. Navigating routes, crossing borders, meeting deadlines, following rules, all to keep our world moving. Many challenges and struggles, both seen and unseen. How to deliver on time? Which route to take? Where to stop and rest? When will I reach home? There's always so much to overcome. Eurowag has everything truckers need to go far on the road, in business, and in life. Wherever the road takes you, we're always there to re-energize trucks and drivers, remove the stress and strain, make every journey easier, and help you see the way forward. We free up your money to give you peace of mind, keep the wheels turning and your business moving.
We keep you connected, helping you find the best way, saving precious time and money. Better for business and better for you. We're here for the journey, helping you stay closer, run your trucks cleaner, and turn the future greener, making life on the road and on our planet always a little better. Eurowag, together we go far.
Good morning. Good morning to everyone. I'm Martin Vohánka, and I'm super pleased to welcome you on our first Capital Markets Day. Carla was saying a lot of thank you to many people. I will need to say thank you to the team which was preparing this day. You can appreciate it. This is big thing for us, so there is a lot of excitement, a lot of energy which was put into it, and there is a bit of nervosity, which I think is quite normal. But I do hope that you will, out of this day, you know, you will bring home, you know, great feelings from what Eurowag is doing, and that you will appreciate why we are so excited. So, I would like to mention that, as Carla said, there was a lot of things done.
There were delivered a lot of achievements, a lot of changes, a lot of deliveries, but one thing didn't change since IPO, and this is, I think, very first message which I would like to convey, that simply our strategy didn't change. What we were introducing back then, two years ago, we were speaking about something what was totally new for your ears and for the industry itself, and this is industry first end-to-end digital platform, which is totally digitizing tracking company operations, and this is one thing which didn't change at all. There are three key messages which we would like you to take back home. The first is how critical importance Eurowag is having when it comes when speaking about industry transformation.
The second, that after five years of heavy transformations, heavy transformation, large investments, reskilling of the organization, now we are getting very close to launch of the platform. And that because of that, Eurowag is sitting on great business already today, but we are super pleased when it comes to our future. Now, I would like to go back to roots, to the basics. Trucking industry. This is one of the things which we realized when talking first with investors, that trucking is not really understood, that this is underestimated or overlooked industry. However, it's big and it's important. There is nine million trucks which we are passing on the ways when we are traveling. 5% GDP is trucking. It's big. 20 million people are working there. And everything physical, in certain moment, needs trucks.
Our homes will not be full, we would not have furniture, we would not have food, hospitals would not have medicals. Everything needs trucks, and this will not change. There are a lot of efforts to build railways. There are a lot of efforts for optimization, for multimodal, et cetera, but this will change just a bit. Therefore, we do expect, as well, the industry analyst, that trucking will only grow. One thing which we set at IPO, that we will be enlarging our total addressable market, and we did. We started with certain amount of products, which represented approximately EUR 5.8 billion or EUR 5.9 billion total addressable market value. Nowadays, we speak about EUR 9 billion because we were adding products in the meantime, and we were developing products in-house.
We see further opportunities for extension of total addressable market because we continue develop other products, and specifically, load matching will be adding another X billions of total addressable market opportunity. Now, we already know that trucking industry is important, that we need it for our everyday life. But what is the kind of dark side or problematic side, or what is the challenge of the industry? They are multiple. At first, everything is stemming from the analog nature of the industry. This is really the industry which is on a tail of digitization. If you see all these like studies, which industries are where in terms of their journey for digitization, you will find typically construction and trucking on very end. However, it's very, very complex. So one would suggest that it's logical that it is to be digitized.
There are 30 tasks which needs to be performed for every route, and they are doing multiple routes a week. They are working a whole week. They are working entire year. So if you times it by the size of the fleet, you realize that this is very demanding, operationally demanding job, while not having modern digital tools. Market is super fragmented. 90% of companies are small, medium-size and small companies. Mama and Papa shops, with average size of the fleet, seven trucks only. So there are just few people in a back office, 10 drivers, and they are running their company. Regardless, what is the geography, whether we speak about UK, Belgium, Spain or Romania or Czech Republic. It's an industry which is facing lack of interest from the parties to cooperate with.
One of these parties are financiers, bankers. For them, it's difficult to assess the credit risk because there is a high fluctuation. There are a lot of companies coming in, these small businesses, a lot of businesses coming out, and banks are struggling how to sell them, yeah. How to bring cost of acquisition down, how to bring cost of acquisition, cost to serve down, and how to assess the credit risk. This is, this is the challenge. The next one is utilization. 30% of trucks on European roads are empty, and if you look on average mileage of international trucks is around 7,000, 8,000, depends on the geography. Meanwhile, champions can do 13,000, 14,000 kilometers a month. You can immediately see what would be the impact on their top line and bottom line.
Despite all this, what was said, you would say, "Okay, so they are well paid, at least." No, they are not. The margins are very thin, 3%-5%. Last but not least, because of all these inefficiencies, because of all these empty, empty miles which trucks are doing, this is the industry which is in urgent need for decarbonization. It represents 9% of total CO2, so which is a lot. What is the answer on that? What is the answer on all these pain points? I was, in fact, already answering that when speaking about the first problem of analog nature of the industry, is really total digitization of the industry. How you can conceptualize it? It's a very simple, simple picture.
There are truckers, and we are bringing all the data, all the interactions into one platform, and through this platform, we allow them to interact seamlessly and exchange the value seamlessly with the rest of the ecosystem. Be it energy and toll providers, which is our legacy business, to financiers, so to connect this a lot of money, which are on the market, with this, with this, specific segment through our platform, through our data. With, car manufacturers, with regulators, it's ever-growing. It's ever-growing challenge for them. Again, think about small businesses somewhere from Romania, and they need to comply with 25 European, European legislations. It's a real challenge. Different languages, different legislative environment. How comes that they can operate without support? They really need support. Shippers, freight forwarders, no-brainer. There are a lot of middlemen in, in between these two.
There are a lot of inefficiencies, because simply there is lack of transparency, lack of connectivity, and roadside service providers. This is everything possible through our digital platform. Last five years, we were building for it. This is the how our platform, conceptually, of course, is very much simplified, how it will look like. Many of you have seen it before, and Martin Strigač, my colleague and Chief Product Officer, will be talking about it in more detail. But you see, again, similar things. People which we interact with, you see unified sales channels, unified pricing, one product stack of all mission-critical services, and the data which we are collecting and which makes the difference. And this brings me to really matter of data. I cannot stress it more.
This is probably, for me, almost the most important slide of the entire presentation. Because we do have all thinkable data about trucking companies. Never before, never before was something like that seen and available on the market. Just let me illustrate. Here you see the pictures of the acquisitions which we've made in order to collect that, you know? You remember, we were always talking that we are acquiring and focusing on the companies which are producing, you know, on services and products which are producing mission-critical data. This is how we have harvested it and how we can structure it. Truck information. We know everything about truck: age, temperature in a trailer. We know when they open the door, what is the fuel level. We know what is the battery, charge level. We know routing. We know typical patterns.
We know how they are utilized, whether they are empty, whether they reach destination and really unloaded in order to create proof of delivery. Simply everything about truck information, online, real-time data. Drivers' information. In the past, it was a challenge for the industry, for fuel card industry, because we give away fuel card, and then we haven't seen driver. We had no clue what driver is doing. This was paradox, because we distributed to the trucking company, and we didn't have direct interactions. You've seen that we invested into Road Lords in order to gain the experience, and therefore, now we can say that we have information about their behavior, about their habits. We know what they need to do in order to comply. There is a lot of regulation around it. Inelo, last acquisition, was helping in, in this respect as well.
We have lots of company information. Toll, it's obligatory service. They have to pay toll, so therefore, they need to register. They need to give it, give us all the thinkable data in order to be able to run through the toll network in Europe. Tax refund, very interesting one. Tax refund, typically, they are using one, one agent, and through tax refund, they are refunding all their spendings abroad. So in fact, what we know, if they are buying something outside of Eurowag ecosystem, for what prices, when they were buying it, from which places, what were the suppliers? We know simply everything about it because we are doing tax refund for them. Receivable, receivable financing, these give us information about customers of our customers. So when customer issue the invoice and we finance it, then we know for whom they are working. Extremely valuable information.
Indeed, through our payments, et cetera, we know the payment history, we know how they are diligent. There is a lot of learning which we are taking away from it. Shippers information, customers of our customers, I already mentioned. Our transport management system is managing their loads. We know what is the utilization. Again, through the invoices, we know what are the names for whom they are working, what is the current trading, and we even know for whom they are delivering, what is the end destination, which is the opportunity, again, to sell and to find new customers. So if you think about it, we have literally everything, maybe except of personal data, and even this we sometimes know as we are talking with them and having long-term relation.
It's not just for the sake of, having data. I have to say that we do not need to sell data to third parties, not at all. We have great two use cases. First, to totally digitize their operations, to bring efficiencies, et cetera. I will be speaking about it a lot. And secondly, to improve Eurowag sales and marketing efficiency. Just for that, we will be changing the industry, and with that, we will be improving dramatically our economics and our growth trajectory. Oh, sorry. Now, you can think, how we get to this point. Those of you who are new, I think for you, it will be very, very instructive material. Actually, company history started in 1995. I was 19.
I was starting with fuel trading because next to my hometown, there was a refinery and a coal mine, so trading with coal was not as attractive as trading with refinery. I started that, but a few years after, we introduced our first fuel card, which was kind of extension of what we were doing with fuel trading, but more sophisticated. We realized soon after that this is really a completely new universe, a lot of opportunities ahead of us. That's what we started to do. From regional fuel card, from initial 14 stations in the network, we became regional, then we went abroad, and over almost 20 years, we became one of the leaders in Europe, providing fuel card and at the time, as well, toll and tax refund services.
It was already achievement because the market was dominated by five, six players. It's oligopoly play, and we squeezed in. This was already great success. Back in 2017, we start to ask ourself: Is it all what we can do for the industry? Because at the time, we had already scale, we had the loyalty of the customers because we were supplying them large chunk of their wallet. We understood very well what the industry challenges are, and we said, "Okay, maybe this is the path forward. Maybe this is something what we can do for the industry and create something much, much bigger, much more valuable, much more impactful when it comes to industry, and consequently, humankind." That's why we start to define our new vision to create this integrated end-to-end platform. It took really five years.
Now, I'm very proud to be here in front of you and introducing with my colleagues what we were working on, which I understand that at the time, maybe at IPO, was still a bit blurry, yeah? So a lot of components were missing. The organization was not ready, but as said on our very first slide, we are very close to launching this platform and start really changing fundamentally the industry... One of the key tools how to achieve that, not in 10, 15 years or 20 years, or maybe never, but to do it in few years' time, was indeed M&A. And you may ask, you know, "So how was it?" You know, "How you compiled your shopping list?" And it was very rational and very strategically well, well-thought-through process. At first, we were asking, does it bring scale?
Because any platform is viable, and it's successful in case that it brings scale. Secondly, whether it's bringing capability. Coming back to the data, capability means whether the system or product is really producing mission-critical data. The second was, if we were contemplating this capability, is it buy or build? What is better? Can we build it in-house? In most of the instances, we said, "No, we need to buy it," because these products were industries on its own, evolving for decades, having own integrities or details, and it would be naive to think that we can simply build it. And then, we were asking questions, "What is the cost of acquisition of one truck?" Because we have in-house cost of acquisition through organic.
We were asking, you know, if we acquire scale, you know, what is the cost of acquisition of truck through M&A, and eventually, what is cross-sell potential? What is their current ARPU when they are sitting in the target, and what is our ARPU, and what is the gap? What is the delta, and what it can do with our financials? Last but not least, we were asking whether this business is viable, whether before we really integrate it, before we really harvest all the benefits of integration, whether it's viable, whether it's cash generative. What is the result on competitive landscape? We were starting as a fuel card, as mentioned. Over the last five years, it was a great, great journey, and we get it to the point where none of our competitors ever was.
The reason is that all of the ecosystem, and there might be much more logos, it would be even chaotic slide then. They are typically providing one product or very limited product offerings, so they cannot think even about something what we are introducing you, to you today. And this brings me to the next slide, because investors are typically asking how I shall position you, and I think that this was one of the struggles when people ask me, you know, "What was the key challenge at IPO?" And I said, "We are a special beast. You know, we are not fitting to existing boxes. We are creating something totally new." So indeed, we originated from the fuel card. That's where our competence, scale, understanding, loyalty of the customers, and again, where it comes from.
However, in the meantime, we have built the competencies and high margins in which are the integrated payments. We are now, and we will be talking about it, we are clearly shifting to software-as-a-service model. Martin Strigač will be speaking about it as well, Oskar, when it comes to our KPIs going forward. So simply, we took the best out of all three segments. Therefore, we are simply unique in terms of our CVP and positioning. What are our next three years' goals? I have to say that we will simply continue in what we have on our plate, there is still a lot of work to be done. You will be learning as well from Martin, and we are talking about soft launch of our platform.
You can imagine how complex it is. We are merging multiple industries together: payments, navigation, software, energy, e-mobility, you know, you name it. There are so many. It's a complex thing. We will just continue in doing that. For that, indeed, we need people, so we will be continuing investing in human capital, upskilling, adjusting our operating model to be ready for this new tech-enabled era of Eurowag. When it comes to product, integrate everything. I'm sometimes using analogy of Formula One engine. It can be any other engine, but Formula One is more attractive, let's say. What we were doing the last five years, we were investing in various components, and I know that you are rightly impatient as investors to see immediately maximum of the returns.
Think about the following: If you are building a Formula One engine, and if you have 50% of the components, does it mean that you can put it on a racetrack and run on 50% of the output? No, you cannot. You need to really have almost 100% of the components to really put it on a racetrack and start to tune it, test it, you know, and improve it, you know? That's what it was five years ago. First acquisition of Sygic, four years ago, navigation. People were asking me, "Martin, why you need routing? Why you need digital expertise, you know, in that? Fuel card, this is so different to it, you know." We knew that Sygic is absolutely unique asset on the market. There are only four companies, other four companies globally, which you cannot buy, you know.
It was difficult, but I said, we were always buying, thank God, businesses which were viable on their own. Even though we were not yet fully utilizing their capabilities, still they were viable, and they were bringing growth of our EBITDA. In product, simply, we are focusing now everything integrate into one platform. When it comes to technology, data, AI, in order to enable everything else, in order to manage company better, in order to realize all the efficiencies. I think no surprises here. Now, I would like to briefly remind our strategic house. You can imagine that such a complex business, it's easy to get lost. Really, the execution, the demand for execution is immense, yeah? That's why we structure our approach into strategic house.
On the top is our purpose, which you are familiar with: to make commercial road industry clean, fair, and efficient. We have four pillars, and I will be talking about them. I will be introducing each of them on the following slides, yeah? Attract. Attract, it's about scaling our capabilities to acquire new customers, and that is happening, a lot of things. I will be talking about it in a second. Engage, it's mostly about the value which we deliver to the customers, because platform will be attractive, not only if it will fulfill our objectives, our KPIs, but it will deliver tangible difference, tangible benefits to our customers, and Engage is exactly about it. Monetize. If you think what platform will be doing from Eurowag perspective, key theme of it is cross-sell. Accelerate cross-sell.
Stimulate customer on every single step to take more products, to take it faster, with all the benefits of growing, lifetime value, reducing churn, et cetera. Miro and, and, Oskar will be speaking about some of the relevant data in this respect. Retain, it's about how to grow, how to evolve our business model towards recurring sub, revenues represented by subscription. And when it comes to KPIs, Oskar will be providing you more light on it. Attract. I will speak about it, in a section of commercial, so I will just, just very briefly, briefly comment it.
Our ambition here is to bring all these channels, which you already hear from us, to talk about direct and indirect, into seamless omni-channel experience, with strong digital, with objective to bring cost of acquisition down from current approximately EUR 500-EUR 300. This is the absolutely no-brainer, that analog industry was serviced analog, so face-to-face, and now we are shifting to digital. There are new generations of people which are managing these small businesses, so this is right time to do it. And our ambition, by scaling our capability, by increasing the funnel, is to get into 1 million trucks serviced by our platform from current 250,000. Bold ambition, but we believe absolutely realistic. Engage.
This is really the pillar where our vision comes through from customer perspective, from improving and delivering efficiencies to our customers' operation. I think that the picture is quite instructive. You see a lot of systems which they now they need to handle, typing, copy-pasting, using Excel spreadsheets, writing on a wall. To moment when there will be only driver, his truck, nothing else, just application, which will guide him on every single step. Monday morning, he will activate or she will activate, there is a 4% of women being drivers, activate the application. We will say where to go, where to pick up, where to stop, how to comply.
We will secure payment, financing, so that when driver will get back home on Friday and sit with his wife in front of his popular whatever, comedy channel or whatever, that he really can concentrate on his family, and he does not need to sit behind a computer and do all this admin work. When it comes to value, real value, how we can quantify it? You know that we were talking about it, about bringing costs down, increasing revenues on a customer side, and here is what we estimate, what is possible to achieve. At first, it's about 20% our annual revenue growth, and we know that there is a where to, where to build it, yeah? Remember, empty loads, empty, empty journeys, and utilization of truck being very low. Up to 10% of the cost savings.
Back office, we already talked about it, better decision-making. Saving a lot of CO2 per truck, per transported good. These are very huge, these are very tangible benefits for the customers, why customers shall engage with our platform, why it's so much transformative for the industry. Monetize. As I mentioned, key economic reason for us to build platform is to create the engine, custom, a cross-sell-centric engine, which stimulates on every single step customer to take more, more product. You already heard from us that first thing, very first thing, which we did after every acquisition is to bring sales organizations together, whereby my sales organization is already fully integrated with Eurowag sales organization. They are working like a one agile team, multi-competency teams. This in a lot will be happening from Q1.
This is just one of the layers which we are, on e of the levers for cross-sell. We will be adding more, and again, Martin will be providing you more details, but it's about one brand, simplified bundle pricing, about one place where all the products are stored. It's about one data storage, and it's about one hardware. All this is stimulating customer to take more. And when it comes to KPIs, again, you might remember that we are around three products per customer. We believe that we can double it, and that this path or the adoption rate, or the speed of adoption might be, could be much, much faster.
Secondly, our ambition when it comes to financing, and you will hear more, more from us in every interaction, is that we would like to finance 40% of issued invoices by customers, and we would like to be there and help them financing and to cover the gap in between when they get money from their suppliers and when they need to pay their own bills. This is just highlighting, yeah, we are still on Monetize, how we are supporting cross-sell. I think even from your perspective, you do not need to be expert, and you see—this is the jungle of the system which they are facing today. We are here depicting Eurowag products and Eurowag platforms, yeah? Even though they're sourcing it from some other suppliers, it's even more complex.
At the end, we are expecting something like that. One dashboard, one data, one brand, one pricing, everything simplified, brutally simplified, and much more effective. Finally, obvious thing is that if we were negotiating with customer separately and negotiating about price on fuel, price on tolling, and arrangements on a software and et cetera, there were multiple, multiple revenue streams, multiple negotiations with the customers. What we have now at hand, all the mission-critical services, which allow us to bundle it and get unique, somebody would say unfair competitive advantage against single product providers, because simply they cannot provide these bundles. They cannot provide all the things which are coming, all the benefits of efficiency improvements of having multiple products in one platform.
When it comes to KPIs, you know that already now, we have 40. After acquisition of Inelo, we have approximately half of revenues from so-called mobility solutions and a half from payment solutions, while majority of the mobility solutions is subscription. We would like to move further and to have 60% of revenues from subscription and 20% from financing revenues. And finally, let me again reiterate what customer will be getting, yeah? Because, again, some people ask me, "They are poor truckers, low profitability, how they will pay for your fancy, fancy services?" It's not like that. No, we'll be just getting a piece of savings. We'll be asking for a piece of the revenue improvements.
We'll be helping them with financing, and, and eliminating barrier of scaling, because nowadays, if they want to deploy truck, they would need to have three months money for fuel, for drivers, for leasing, et cetera, because nobody's paying them earlier. So we'll be just sharing the piece of the part of the value which we'll be creating for the customer. We are not asking something on top. That's very important to understand. And we'll be helping to reduce carbon, carbon intensity of customers. And this nicely brings me to our sustainability strategy. I love to present it because personally, I'm very, very much keen, I'm passionate about our sustainability efforts. And I have to say partially, it's a luck.
Because if you think what we are doing, efficiency improvements, better routing, better utilization, influencing drivers to have better driving style, it's of course, creating stimulus for the customer to stay with Eurowag, to pay for the service, but at the same time, it's reducing CO2. We are lucky to be in a place just to continue and strengthen all the activities and maybe be more structured around them in order to pursue, let's say, the trucking industry, which is not harming our environment. The evidence on our strategy house, you might overlook it when I was showing you the first time, is embedded in our strategy house, yeah? It's not something like on top, something when we have time, that we do it. No, it's deeply embedded in our, in our, in our strategy.
Here, I would like to pick up just the... There are many things which we can do, but there are some which are having really the biggest impact, which are worthy to mention. The first one is climate action, enabling customers to reduce greenhouse gas emissions, reduce the carbon intensity per ton of transported goods. Secondly, still, there will be some energy. Sometimes we are asked, "Fuel card, there is no future." We are not supplier of the energy. We are enabler of transactions in between energy, suppliers, and trucking companies. I think it's quite easy. What we are doing is authorizing, identifying, exchanging the, exchanging the data, realizing the payments, realizing financing. It will stay with the trucking industry forever, regardless whether there is a diesel or charging or hydrogen or LNG. It's the same.
So what I want to say by here, you know, that Eurowag is energy agnostic, but still, there will be energy needed. And it's about us to be part of the ecosystem, which is enabling smooth transition to low carbon alternatives. The second area is customer success and well-being. Here in U.K., what's happening last summer, that there were no fuel station, no, no fuel on a fuel station. Supermarkets were not having toilet paper, which is a small drama, but it is. And you see that the industry is simply not attractive, becoming not attractive for drivers. So there is something what we need to do. That's why here, fair, fair, very important part. You know, we shall not forget of it. Nowadays, you know, drivers and trucking companies are having low profitability.
A lot of middlemen, they are struggling to have a toolbox which enable them to prosper better. This is not exaggeration. We can really do a lot in terms of improving their life, improving their economics, make their life not all the time be on a phone, despite they are having holidays, but really to have meaningful life. A last thing, which in Eurowag we do very long time, is community impact. I think this is basic hygiene for every company. Meanwhile, even here, Eurowag was innovative, and we introduced philanthropy, a new project, and in fact, we are engaging every single our employee. We are providing them funds. In fact, it's a portion of our net profits, which they are deciding and distributing. We are empowering our employees to do good to the society.
We are very proud of it, and we have 80% participation. I think this is quite unseen number. And company governance and culture, I think that IPO-ing, doing listing, you know, is a evidence that we are really aspiring for the best possible standards of managing company. Now let's have a look on decarbonization. There is a lot of things happening. It's full. Media are full of that. Therefore, I will not dwell into or, or go deep into the numbers, but you see that simply there are a lot of aspirations. And here you see what is the response of truck manufacturers. What I, however, has to say, and I need to manage expectation, it's a really complex job. I do not wanna be in their shoes, because if you think decarbonization is not matter of producing electric trucks, it's entire ecosystem.
There has to be energy available, enough renewable energy available. There has to be grid. There has to be production of hydrogen. There has to be retail. There has to be charging ports, points near the truck routes, does not exist. So it will take time. It will be, it will be, gradual. However, as I already mentioned, Eurowag is uniquely placed because of two reasons. At first, we are energy agnostic. Already now we are authorizing e-charging. We have we have made investment into LMS. So for us, it's just changing the liters to kilos or to kilowatts.
Secondly, we have end-to-end perspective on the decarbonization process, and that's why we feel natural obligation, natural duty to be part of the various associations and help to shape the, help to shape regulation, that this is really consistent end to end, and this, that really the transition is fast and effective to, let's say, new low-carbon future. And here I would like to bring two numbers which we committed in our disclosures. Probably really the far fast of the biggest impact what we can make, and this speaks about decarbonization. I do not speak about carbon zero 2050. This is too far, yeah, so, nobody maybe no, none of us would really take this seriously. But, numbers which we are really serious is already what will happen in next few years. So by 2030, we committed to reduce carbon intensity per ton kilometer by 20%.
It's huge. Yeah, and this is the best way. This is the very first thing, carbon avoidance. There are products which are clearly leading us to it, and we are measuring our progress every year. We are not waiting for 2030 to wake up and learn that we, we screwed. Fleet management, loads, utilization, drivers, app, CO2 calculator, reporting, and offering, again, advice. Maybe it seems like a simple, but again, think about small trucking company from Czech Republic, how they can know, yeah. They need European network. There are subsidies. There are a lot of things they need to report. Plenty of things which needs to happen in order to change the fleet from diesel to electric or hydrogen. Advisory is very much needed.
As said, the remaining part of the energy, it's about to help them to find the, the, the right place to recharge or to get hydrogen or LNG. So we committed, in this sense, to have 80,000 trucks by 2030, which will be on alternative powertrain. Out of current 250,000, you might say that this is big number, but should really industry pro, move forward, as all the analysts are expecting, truck manufacturers, European Commission, et cetera, we believe that this proportion is very much, very much feasible. So now I would like to summarize what is our ambition. We wanna bring to our platform one million truck. You remember, nine million truck in total, 1.5 million trucks which are, which are, international trucks, so this is big, big portion.
This is our sweet spot, yeah, 1.5 million international truck, where they need the biggest number of tr- of products, and they have biggest ARPU, 1 million. Reposition Eurowag as go-to address for anyone who would like to do something with trucking, either newly established trucking company or supplier or regulator or OEM. Simply, Eurowag will be no-brainer for anybody who would like to do something meaningful in the industry to connect to us, and 1 million truck is the ticket for it. We'll be moving our revenues, more and more subscription, more and more recurring. It's clear. Platform, when they connect, they get everything. They will pay for connectivity to the platform, and eventually they will pay financials, final interest and ethics, should they borrow money from, from Eurowag.
Our ambition is to improve, as was mentioned several times, customer revenues and empower them to realize efficiencies. Last but not least, we know that by doing so, we'll be reducing energy intensity, and we'll be helping customers to this transition to low-carbon future. That's for the first part. Now I'll let you breathe, digest. You will not see in next few minutes me, but a lady. It's a special woman. It's one of the 4% of women driving on European roads. In the U.S., it's 7%, so we have something to do. We have a homework. She's one of those... She's a prominent person in trucking industry. She's not only driving, but owning her truck, or actually now two. She's having 1.3 million followers.
So if you see, you know, it's a really big thing on various platforms, and therefore, she's a quite frequent participant on various conferences. She's invited by the European Commission on various debates, et cetera. And last but not least, as you will see, she's a big fan of Eurowag.
Hi, my name is Ivona, and today I'm taking you for a trip. Welcome on board! This is where I spent most of my last 12 years. Daily, I spend around nine hours at the wheel, but driving itself is only part of this job. Trucking often is physical job: getting truck ready for pickup, loading, securing the load, unloading, getting trailer clean for the next load, and all this being done in different weather conditions, often without access to sanitary facilities or easy access to secure parking lot. Throughout day and night, 'cause we truckers work around the clock. I need to plan where to get the fuel and the best price. I need to make sure I have road toll device working, or in some countries, vignette bought.
I need to think about legal issues like driver's working time, regular and holiday truck traffic bans, and the most important, delivery appointment. 13-15 hours of work every day, 5-6 days a week, away from family for weeks, years, entire lifetime, to be honest, and expensive internet abroad. Truckers, tough as may seem, are still human being, not robots. The reason I'm telling you about it is to give you a general context to help you understand why we truckers appreciate each little thing that makes our life easier on the road and less stressful. Eurowag has a bag full of these little, yet big things that, in the end of the day, make a huge difference. For example, EVA toll device takes care of the road tolls automatically. Extremely easy to check if everything is okay with just looking at while driving. Green light, go.
Red light, no go. Instead of few different toll devices, each for one country, I have one for many countries. For the rest countries, I can get a vignette on Eurowag website, paying with Eurowag fuel card, of course. I can also get the dedicated card for tunnels such as Mont Blanc or Frejus. Fuel card with an app, where I can see the prices of fuel with my individual discount. And my favorite option, Eurowag ePay. I love it! It makes refueling so much faster and safer. I used to hate refueling, but now, to be honest, it's such a fun. I can't stop playing with it. You can switch on the fuel pump just with an app. Amazing. How cool is that?
Even though it's called fuel card, I can also pay with it for services I need on the road, like parking lots, truck wash, or workshops. Life of the trucker is challenging, but life of owner operator is a roller coaster. Transport orders, documents, insurances, truck maintenance, payments, bills, accountancy, administration, on the top of that, driving like any other driver. Being a transport company owner is a constant challenge. Let me give you a little context now. The European road freight market is really big and accounts for over EUR 450 billion. Despite the expectations that sector will be downsized for environmental reasons, its share of land transport is constantly growing and stands at around 70%. This is mainly strongly influenced by intense development of e-commerce.
When we hear road transport, most of us probably see all these big brands, such as Schenker, DSV, DHL, and others. But in fact, it is a highly fragmented market. Most carriers are really small, acting as owner-operators or with fewer than 10 vehicles. 54% of hauliers in European Union have only one employee, while 37% have between two and nine employees. This means that more than 90% of road freight transport companies in European Union have fewer than 10 employees. Over the last two years, the market has undergone many disruptions. Just to name a few: COVID-19, Brexit, mobility package, war in Ukraine, and the resulting crisis, not only humanitarian, but also with the consequences of further restrictions on drivers' access or sharp increases in fuel prices.
For hauliers, whose average profitability balance is between 3%-5%, it is very difficult time, especially now that business has become more complex with new restrictions, the cost base remains high, and the market is weakening. Especially now, they need support to run their companies more efficiently, simplify processes to reduce staff costs, secure visibility to increase productivity, and get access to cheaper fuel. This is the time and place where Eurowag steps in with its services. I told you earlier about EVA road toll device and fuel card from perspective of trucker, but it was just a top of the iceberg. As an owner operator, I use Eurowag services even more often. Tax refund, easy access to factoring, insurance, and telematics. Factoring seems to be very important option, as carriers mainly fail not because of negative profitability, but lacking liquidity.
Talking about telematics, as recently I got my second truck for oversized transport, telematics provides me with real-time information concerning my first truck: location, working time of the driver, fuel level, and fuel consumption, and many other. I love watching my second truck making money for me.... How nice is that for a company owner? The fact that I get so many different bills on one invoice every two weeks saves me so much time, and in the end of the day, money that I spend on accountancy and banking services. What is extremely important, that whenever I need something, I have dedicated contact person answering my phone and emails, and access to customer service twenty-four seven. Eurowag brings peace to my life, and providing me with such a quality services help me and my business grow, which I love.
Is she great? I think she is. She is. She is Good. So, now this is just visualization of what Ivona was talking about, yeah, the complexity before the journey, on the road, after the journey. Times it, the size of the fleet, imagine all this is manual, fragmented, very, very difficult. Now I would like to refocus on the market size. We already talk about nine million trucks. Here I would like to highlight that, majority of the international trucking companies, vast majority is coming from the two regions, Central and Eastern Europe and Iberia. So you might- here, here is simply the answer why we were focusing. Why we are focusing on international trucks and why on these two regions.
At first, Central and Eastern Europe and Iberia are leaders in international trucking because of one key difference: lower wages. Simply, when these countries were on entering European Union, they were stepping, maybe they were weaker in other economic terms, but there was one advantage of lower wages, lower starting salaries for the drivers. And that's why they start to dominate very quickly to international market. That's why when you are driving on German or even UK motorways, you see so many trucks passing with Lithuanian, Polish, Romanian, or Spanish or Portuguese number plates. So our focus is very conscious. However, the rest of the Europe is not something what we are giving up. We were already informing that last year we opened our office in Germany. We have already office in Austria for more than five years.
Even the rest of the market is having some international companies, which are of our interest, and will be growing as well in these markets. The second point is about why international trucks, and I was already hinting that. International truck is doing approximately 7,000-8,000 kilometers. Domestic is doing only 4,000, less than 4,000, so half. You see that potential for number of transactions, for financing revenues is 50%. That's why we focus on international. Second reason is that if you are domestic, you do not need international toll, you do not need work time management, you do not need tax refund, you need much less roadside services. The ARPU potential is simply very, very smaller when it comes to domestic transport compared to international.
When it comes to our existing customer base, it's very diversified. We have 18,000 payment customers. We have absolutely no concentration risk from obvious reasons. Our biggest markets are Poland, Ivona is from Poland, you probably learned, Czech Republic and Hungary. We see that clearly we have huge avenue for growth. Simply, there is a huge headroom both on established markets and on new markets. Now I would like to invite Miroslav. I'm very grateful that Miroslav took the challenge because this is, of course, not usual format of presenting in front of investors. Miroslav is representing where really, real things are happening, on a market, being with the customer. I hope that Miroslav will provide you now more in-depth insights. Miroslav, over to you.
Thank you, Martin. Good morning. My name is Miroslav Novak. I'm Country Manager for Czech Republic and Slovakia. I've been with Eurowag since 2020. Before that, I spent my professional career in automotive industry or mobility services, and most recently, I was managing director at Jaguar Land Rover importership in Slovakia. As Martin mentioned, the story of Eurowag begin in 1995. Since that, many of, many of important milestones were recorded, such as in 2005, the opening of our first own Eurowag truck park in Czech Republic, or 2006, launch our toll service solutions. But most importantly, in 2008, Eurowag expansion started, with Slovakia as a first country opened outside of Czech Republic, and then followed by Poland, Hungary and Romania.
Looking at the map now, Eurowag coverage is almost entire Europe, from east to west, from Turkey to Portugal, from Baltic to Italy, where we have agent model of cooperation. Currently having offices in 18 countries with more than 630 employees. At IPO, our main product to hook a customer was energy. It was really large contributor to our revenues and our legacy business. In Czech Republic and Slovakia, almost 80% of any interaction with our prospective customers are about the fuel. It's obvious, because fuel represents 14% of our customers' wallet, and any cost saving on this is really closely monitored. As Ivona mentioned in the video, margin are very thin. Today, we have multiple entry point to our customer with fleet management system, meaning telematics, the second largest take-up product.
Once we have customer sign up, we can immediately start to analyze their behavior, start offering smart routing, optimized routing throughout toll management system, or transport management system, or telematics. Once our customers start using multiple solutions, we actually create customer value proposition. They start to see the benefits with all their services connected to one platform or receiving one invoice. Given Czech Republic and Slovakia is our one of the most developed market in Eurowag's portfolio, they are also often used as a testing ground, so we pilot ideas before sharing them with other countries. We started and piloted the digital sales channels. We started it as a soft launch in 2021, slowly developed our digital sales team, and today, more than 30% of our customers are acquired digitally.
We have also invested in our digital self-care, and therefore moved from manual onboarding of customers to digital onboarding. As we introduced new products, for example, tourist toll services, we have created digital sales campaign to drive cross-sell within our existing portfolio or acquire new customers. Finally, we have moved our sales team into new agile team structure, ensuring all our products are getting marketed to our customers. All of these have led to the results shown in the screen, which I'm really proud of. Looking at the left-hand side of the screen, more product we have with the customers, longer relationship we have with them. Most importantly, more product we have, higher net revenue margin we can generate.
Looking at the churn decrease, actually, it halves with any addition or additional product, between one product, second, and from third to fourth. Finally, all this leads to higher average net retention rate. Despite Czech Republic and Slovakia are the most developed market, you can see that the initiative I mentioned earlier has led to strong customer growth, +26% since 2021. The chart in the middle shows we still have further opportunity to cross-sell our legacy products, and as I mentioned, having our services bundled or on the same platform allows us to accelerate cross-sell to customer, which you can see in the fleet management system. Both the growth in our customer base and continued cross-sell opportunity shows our strong net revenue, +25% since 2021. Thank you. I'm handing over back to Martin.
Thank you, Miroslav. So you see, when I was talking about that we have a lot of things to do in established market, I think Miroslav and his team is a great living example of that. Now, let's refocus on our future. So what all the changes which I was introducing, and Martin will be detailing in a minute, what does it mean for commercial organization? I was already mentioning that now we have very promising three, three channels. I will be commenting in next two slides, digital and indirect. But what is the next step? What is the next layer, is to create omnichannel experience. Omnichannel is well-proven model. First, I don't know whether Telco, but probably Telco is good example of omnichannel approach. It's unifying sales strategy across all the channels. It's integrating end-to-end journeys.
It delivers orchestrated messaging, and it works with centralized data from all the touchpoints. All this is designed in order to maximize the effect with least possible resources. So this is something what we are working on just now. Key component of this is digital. Miroslav already mentioned that this is not new to us. So, we were working on it already last two years. I said it was not easy because the industry was purely analog, used to be visited by salespeople for every single interaction. However, it's changing, and as well as our capabilities. So what you will see in the middle is Eurowag platform, which will be servicing mostly small companies, like Ivona and similar. We do expect that this segment will grow.
Again, if you connected what we were talking about, that our platform enables them, gives them tools which only the biggest companies are having, no surprise that this segment will grow. That's why we are betting so much on already sizable, but we believe, growing market, rapidly growing after we introduce all these things, of small companies. When it comes to medium and large companies, they will be interacting as well with our platform, but we do expect that it will be, as well, cherry-picking or opting simply for part of the solutions and not maybe all. So where direct sales, of course, will be very much needed, especially in a form of advisory sales. As well, our marketing will dramatically change while leveraging data we collect from broad product suite.
For that, we will be indeed as well harnessing or utilizing the data from all the acquired companies. The next leg of the omni-channel is indirect. Really never before were typical after-sales product sold as a part of the new truck. Never before. Our application will have our brand. It will be inbuilt by truck manufacturers in their infotainment, and its basis is now navigation. But we have full discretion over the year to upgrade gradually and extend its functionalities to a full platform offerings, which Martin will be speaking about. So it's really absolutely unique Trojan horse into the new truck sales, which provide us full, undisturbed avenue for providing full set of our services. However, I need to manage expectations. This is new for us. We need to learn how to really utilize it, as well truck manufacturers needs to learn.
It's-- These are complex businesses, truck manufacturers. They have various arms, financial services, truck manufacturers, digital, dealers, et cetera. It's a rather complex environment. So as well, they need to learn, you know, how to stay with the customer through the life cycle with help of Eurowag. However, this is really unique, and I think already that we signed three deals out of six leading manufacturers in Europe, is simply providing clear evidence, clear endorsement, that Eurowag is doing something truly unique, which is not available elsewhere on the market. So in a summary, we will continue expand our market share. We'll be increasing our capacity to sell and reduce cost of acquisition. We will be leveraging our new platform. We'll be leveraging these deals with OEMs, and we will be further expanding our capabilities in digital. With that, I hand over to Carla. Thank you.
Right. Thank you, everyone. We're gonna take a refreshment break now. For those who are online, we'll be back in half an hour. Before we leave, I just wanted to quickly introduce some of the Exco who are here today, just so you know who they are. If I can ask you to quickly stand, Etela, who's SVP for Energy. Pavel? Oh, sorry, Emma. Emma Fiona. Sorry, Emma, please stand. She's the Chief HR or People Officer. Pavel is our CTO.
Morning.
Martin Strigač, I know you are presenting, but it's worth you showing who you are. And obviously, you all know Oskar, but in case you don't, that's Oskar. So please, as I utilize the time outside to go and have a look at our... Oh, sorry, Ivan. I was wondering where you were. Sorry, Ivan, if you could stand, sorry, who is our Chief Strategy Officer. So yes, please take this time to, as I say, we've got some display tables. We've got our colleagues who've flown all the way over here, who would love to show you more about our products and services. So go and grab a tea and a coffee, and we'll speak to you outside, and we'll be back in half an hour. Thank you.
. Hello. Hi, welcome back after the break. See you again in the room. I hope you managed some time with my colleagues from product office during the break to see what we are cooking in the kitchen on the display tables. I will be your guide today to go through the product and platform insights at Eurowag. I'm the Chief Product Officer. You know, I'm the geek guy, not wearing suit that often than my colleagues. But, you know, developing software from my childhood and work—I used to work for large corporates as well as for small startups. More than 10 years in banking and fintech, paytech, insurtech, and the last decade spent with truckers as a CEO of Sygic, one of the companies who joined four years ago, Eurowag family.
Talking about trucking industry, as you heard from my colleagues, as you heard from Ivona, the industry is very fragmented. Most of our customers, most of trucking companies, are very tiny, small, so SME, micro SME type of companies with less than 10 trucks. From technology product perspective, these are the companies not having any IT people. They don't know how to procure software. They don't even can imagine that they would need to integrate something. That's why they are using multiple systems. They are copy-pasting data. You know, they don't have time to search on the market for tools which are available. The companies typically not even have people to reinstall their computers. And the legislation is not helping. I mean, it's putting even more pressure on them, eating even more time. It's not going to be better.
And by the way, many U.S. companies, many startups or, you know, tech, uh, disruptors from U.S., which are very successful in their homeland, just haven't succeeded or they are hardly penetrating the European market, and one of the reasons is, uh, the regulation. Probably the most recognized example would be Uber Freight, who left the European market just a few years ago, closed the business, sold it. I took the challenge to put a daily life of trucker and the tools they are using, and systems, and services on one screen, although it's not an easy task. Just let's imagine with me, let's say, Coca-Cola wants to ship their products to Tesco or Sony to Amazon Fulfillment centers.
What they do, they usually outsource the task of searching for transport capacities to freight forwarders, because it's not their core business, because they don't have time, they don't have capabilities. It's easier. That's where we have freight forwarders, whether the typical traditional ones we know, like DHL, GEFCO, Hermes, or more and more digital ones, sennder, who bought, by the way, the Uber business. Or they just rely on some modern platforms or freight exchanges. But let's look at the bottom. Let's look at the carrier. It's not that easy, isn't it? They cannot outsource. They don't have margins for that. They need to deal with the complexity of the environment, even though not having IT people.
They need to use more than 10-15 systems for financing, of course, for payments, for tax, for toll services, but also for procurement, for transport management, to plan the trip, to send it to the driver, to know where to go, of course, to monitor the transportation, take care of their fleets, ERP, payroll, and so on. Just a few mentioned on the slide. They are copying a lot of data. They are switching between contexts, all differently behaving system, differently looking systems. If I would mention just Eurowag Group as a one vendor, is having more than 20 mobile apps and 15 portals. J ust because of historical reasons, because of all the acquisitions, all the complexity we are providing. So if you want tax return, you go to one portal. If you want to see your payment transaction, you go to another portal.
If you want to search for fuel stations, you open your app. You know, if you want to, to do the transport management, you use another app than for fleet management. Not integrated means less efficiency, more mistakes. Just imagine all this complexity would be gone and integrated, pre-integrated in one system. Something like office, something that you do in the office, in a digital office, digital fleet office, let's call it. In a digital fleet office, which is based on more than thirty years of capabilities, reliability, and proven functionality, which we acquired through many years, and we will utilize, and we already utilize in building the office. We are bringing the capability in fuel management and fuel economy.
Whereby in the others like CVS, Inelo, you know, Princip, Baldauer, I couldn't name more, bringing fleet management capabilities, FireTMS, and some others bringing transport management, Sygic bringing location-based services, mapping and navigation capabilities. Last Mile Solutions, eMobility, Drivety Mobile Payments, Raymond Tax, tax services, JITpay financing services. I could name all of them. We are building an office where many become one. Because for the owner, the office is the place where he's meeting all his people, where he's dealing with the problems of financing, of working capital. It is the place where he's receiving offers from other companies, from vendors, and where he's searching for new tools and for a way of improvement. For dispatcher, office is the place where he prepares all the transportation, where he's searching for a new job, how to utilize better the trucks or how to fulfill the capacities.
It is the place where he's solving most of the operational problems, most of the problems on the road, but from the office. It is the place where he's issuing invoices, where he's taking care of payments. For truck driver, the office is the truck. He lives in the truck. He loves it many times, and many times the truck driver is the owner. He's also dispatcher. So we cannot say that we separate these roles strictly. They need to be integrated. This is not only integration of the tools and services. It's the integration also of the functionalities and how they use the software into one seamless customer experience. Let me jump into some real screens from our kitchen, still fresh and hot. We are adding functionality every agile sprint, so it will grow over the time.
I will talk about the roadmap, but just to tease already, next year will be the year when we release it. This, for example, as you can see, would be a typical screen where in the owner role or owner would come and see just in a one look, all the main important information. We have, of course, also a mobile app, which is showing the mobile version of all the information, because many times owners are on the move. They don't have time to open the laptop and check everything. Just want to take out the mobile phone from the pocket and see it, what's happening. And we say they don't even have time to proactively check everything what's happening. So we are preparing notifications, alarms, push notifications to warn them before something can happen, to guide them how to improve the efficiency.
So instead of creating 200 reports, 300 more than our competition, we rather give them the guidance, comparing to some bigger companies or to peers which are doing better, how to improve their performance. You can see that we already integrating live operations, transport management, fleet management. Maybe the menu will not look the same as it is right now, but it's already showing that we are well ahead with the integration of business services into one customer experience. You can see that, as I mentioned, the office is the place where you receive also offers for new tools for the improvement. We incorporating e-commerce, we incorporating shopping cart, shopping experience into a self-service view, where you can buy, upgrade, buy new services, and it will be all over the places.
I will show also on the other screens, which we called event-based or event-driven sale model, where we don't offer something he doesn't need this today. We don't flood him with many emails, but rather than seeing how he's using the system, learning his profile, learning profile of the company, we will offer a tailor-made proposition that time when he has a problem, where he's working on something. Let's say he's planning a trip, he's preparing all the itinerary for the driver, most probably he is already the offer. Already has the order to transport. Guess what? We can already pre-finance the order. We can already give him money before he starts the transportation to, to spend or his drivers to be, to spend it during the transportation for payment, for fuel, for tax, for parking spots, and so on.
Of course, when he finishes the transportation, we can offer premium proof of delivery, delivery, which can issue an invoice automatically, and we can fully finance the whole transportation. When he's searching for fuel prices, we can upgrade him to much better prices, which would come with some bundle of products which he doesn't have, because we already know he has maybe fleet management from us. Or we know that he has seven trucks, but not all are efficiently using the network which we have. On one screen, where usually you would be in a dispatcher or so-called transport manager role, and again, there is an alternative in the mobile phone as well. We can show him various information about particular driver and the vehicle.
Of course, telematics data, if we have sensors for temperature or the fuel probes, where we are measuring very precisely, the fuel management and also preventing the fraud. He can check whether some of his drivers are not in infringement with the law, with the legislation of work time, which is penalized heavily, and you can lose your license. So it's a big deal for many of our customers to watch carefully, what the remaining hours of service are. And because we already know where he's going, so it's not like a telematics. Just pure telematics is like a dot on the map where you know where your truck is, you can share it maybe. You can see the telematics information coming from the onboard unit.
But because we have transportation management, where everything is pre-planned, we know at what time he will be for loading, what is the time window for unloading, and we already know he hasn't planned the backhaul. Is it because he's not fully utilizing the value we're giving him, or is it just because he doesn't have work yet? So why not to propose from the destination the possible best matches for the next backhaul, even showing him economy of it, to... And even they could model how would it bring to the numbers, which I will show on the other slides, so the KPIs of a truck, as we say. Of course, big deal is driver's behavior. Drivers are affecting the fuel economy, tire and wear, carbon emissions produced.
They are affecting road safety, but also driver safety, well-being, based on also how they are chased to drive. So we pre-prepared the whole module of monitoring and analysis of driver's behavior. You could see my colleagues were showing also artificial intelligence, augmented reality we are utilizing, and cameras we will bring to market, which will be very affordable. And then we say many companies are managing driver's behavior, but not many are coaching. Just imagine, in trucking industry, it's different. After 1,000 miles, 1,500 kilometers, would you remember if I tell you, you were speeding somewhere on the 300 kilometer on the road? Come on, how would you improve? You, you don't know that you are harsh braking there. But if I tell you in a moment, you do that. You did that three times in a row.
I tell you, "Come on, now is the time to calm down." Your score is going down, so you will not get back or maybe some reward at the end of the month if you don't improve your behavior that time when it's happening, because it's all about real-time data we have here. That makes a difference. You know, when I walk in, into the office of our customer, and I was with many customers, typically, they have a big map, big map with postal codes. It's a very typical screen of an office, of transport office. By the way, I haven't shown, but we have also that layer on top of the map to mimic the paper map, so they can use the environment they will know. But the second thing they have on the wall is the whiteboard, classical, manual, wall whiteboard. They all have it.
They put their, like, ID of a vehicle, you know, like calendar, and then the utilization, some problems like, "Okay, don't, do not forget to order maintenance of that truck," or, "Do not, forget to order tires." Because they are changing, by the way, tires a couple of times a year. And the whole set of tires. Tire management is a big thing. So we try to create a digital representation of their whiteboards. This is the age of digitization. They should not use paper and pen if they can have something more efficient. They just don't know it exists. But we, we went even further. We integrated all the services, all the available data, and we will add more and more into the screen. So just imagine if a typical dispatcher has two screens. On one screen, he would have the map, remember?
On another one, he would have this one. This would give him, like, a complete screen of what's happening with his fleet he's responsible for. Not just that, he will already see, you know, these blue, blue ones, what are the possible next jobs, even with some ratings from the community. We all know KPIs, budgets, forecasts, and whether we miss it or fulfill it, they have it, they have it as well. Every single truck needs to earn money to cover the costs and to generate at least a few percentages, as we heard, of the profitability. So they already know that after last, after first week, if some of the truck is below the expectation, they will need to be very much searching the weeks after for more profitable jobs. Or the other way around.
Maybe the first weeks were excellent, so we should not spend that much time maybe in getting the next job, because the economy of the truck is already good and we have other challenges in within the company. Which of course, on a few clicks, you can manage as well from this environment. Let's not forget about the driver. These are the warrior, warriors. These are the people in field, so we need to take care of their customer experience, everything seamlessly integrated. Whatever dispatcher changes, in real time, updates on the screen of the truck driver. Maybe you don't need to pre-plan everything in the beginning. You don't know where to stop because you don't know how the work time, the hours of service will look like.
You don't know anything about the, o r you can't predict the traffic on the road because we have some speed profiles and historical transportation data, but you cannot prepare everything. So as you want to add, for example, new secure parking during the transportation, or you want to show preferred refueling spots, you change it in your office, as I shown on the other screens, it updates immediately on that screen. If you want to get data from the driver immediately, it's all in the cloud. It's all available. If you are a driver and owner, you can use the same app for everything. Or if you have time, you open your laptop and work with more complex duties. If somebody would ask me how I would explain the value proposition in a simple sentence, it would be something like, "Just connect your trucks.
Connect your trucks and let us guide you," because we do care. We do care to create a product which truckers will love. Let me jump into a little bit of modules and the architecture. Not to be too technical, but to explain, you know, how hard it is to build and where we spend most of the time, but how easy to be, to be used. So I already shown some screens from the integrated digital frontends, you know, from getting rid of all these 20-plus apps and 15 portals, replacing it with essentially one web portal and two apps, one dedicated for driver, one universal office app. To be able to build a lightweight but very nice-looking, very usable frontend, we are building so-called integrating business services, integrated business services. We leverage on the capabilities we already have. To build such a complexity would take tens of years.
It already took those years to build it, to the companies we acquired, even to Eurowag. To build it, to fine-tune it, you know, to introduce it to customers. So we don't rebuild something what we already have. But how to utilize it if all these systems, all these modules, everybody was writing in a different language, you know, they are not speaking to each other. So like, just imagine they speak Spanish, German, in a programming language, I mean, you know, English, and we need to make sure that they all understand each other. So we created a middle layer, or we sometimes call it integration bus, and we introduced a technique where we can interconnect all these building blocks. We call it, let's call it Lego bricks.
So where you can put all these Lego bricks together and then on top of it, build the final experience. And we build a language they are all understand. It's like Esperanto, like types. You know, they understand each other. We went even further because there are repeating functionalities, something you can reuse, rebuild, or build once and then reuse. Similar example to Volkswagen Group. They're very clever, by the way. I like it very much. They are building one platform, which then they use for Volkswagen Golf, Škoda Superb, Škoda Octavia, Seat Leon, even Audi A3. One platform. If you open Audi, you will probably find some Volkswagen or Škoda components in it, and it's the same vice versa. So we do the same.
We build a framework of shared components, we call it technology platform, on top of which you can build the integrated business services, on top of which you build the integrated frontend. Single sign-on, document management system, ERP, pricing services, maps, all shared components. What would it be, a modern technology platform without data? We need everything, we need data. Today, we have a lot of data. Martin already mentioned we have a lot of data. Just imagine it's all over the places... is not synchronized. You cannot easily connect them together. You cannot convert the data to information, meaningful information. You need to build, and we had to build first, an integrated data platform where we put data in the same format. They are connected to each other.
So we know that this company has these vehicles, and it doesn't matter whether it's coming from tax system or it's coming from payments or it's coming from transportation management. Once we have data inside the ecosystem, they are already there, we should use it. And then I don't care, like in a Apple ecosystem, if you buy first the Apple phone or the laptop. Once you are in the ecosystem, I want you to buy the other gadgets, the other systems. Because we have the data, we make it much more simple and easier to add another layer, another hardware, another software, because it's all utilizing the same data platform, same cloud, same services. And talking about hardware, that's the hard stuff.
I say it's hard to install, hard to convince customer to change it, because you need to uninstall the previous one, you need to install the new one. It's also hard to get rid of. That's a lock-in. I call it positive lock-in because with hardware, we can get data you would not be able to get without it. Hardware is sometimes even mandatory. Like, for toll, you cannot avoid it. Legislation is very strict. But what we can do, we can simplify also the hardware portfolio and integrate it into one box with accessories and evolving it. The infrastructure is just supporting everything. Whether it's a parking infrastructure, whether it's a fueling infrastructure, these are the physical touch points when they meet the customer experience of Eurowag. Transport management, fleet management, navigation, payment, that all exists. It's not new components, it's not integrated, but they all exist.
But I want to highlight one component, which in this industry is a brand-new one. It's e-wallet. Just imagine it as a regular bank account. It's not like that today. You know, if you want to pay for fuel and you want to have a prepaid card, we give you a prepaid card. But what if you want to have a postpaid? We don't give you credit, or we don't send you money on your bank account. We give you another card, which is postpaid card. What if we have a partner like DHL or Volvo, who is co-branding the cards, taking out the risk from us, and then giving this kind of, we call it vector cards or this kind of reseller partnership cards. So you get the third one.
What if you want to have a safety card, which is an open loop one, MasterCard, Visa, so you can pay on any POS terminal? It's the fourth one. It's one vendor, four cards. Do we talk about balance management properly and everything? No, we talk about extended payment terms. But now, with our office, we will introduce e-wallet, as it is well known, from Revolut, from your business banking. As our owners, they all know it. The customer experience will not change. It will be just quite different because they are not used to it in our environment. Balance management, Forexes, transaction processing, exactly as you would expect in internet banking, to see it as it is expected in internet banking or mobile banking. Various liquidity providers.
Customers can apply for Eurowag credit, but they can apply also for some other credits from other partners who can offer it. They can receive factoring or invoice discounting, so we are actually financing the cost side as well as the revenue side. I already mentioned we cooperate with OEMs, with automotive. We cooperate even with freight forwarders and shippers. They bringing customers to us because of rev share they can get as a new additional revenue stream, as well as to control the transportation flow with our services much better if the carriers are using it. So they can be also liquidity providers. We are designing it the way that at some stage, because we are building community here, a club, that even our customers can offer peer-to-peer liquidity, peer-to-peer lending within the system. And of course, we need to monetize it.
We need to convert the users to paying customers. We need to upsell and cross-sell the existing amount, the existing customers we have quite a large amount of. What we will introduce is going to be a freemium business model, which is based on already proven and tested, models from Road Lords ecosystem, from JITpay, which already is using some freemium, as well as, FireTMS, which is our transportation management system, offering also freemium. And we will learn, we will evolve it. We will start introducing subscription-based bundles, because it's not so easy. When I say we need to integrate services, we need to integrate data, we need to integrate also pricing. Martin, I think you had it on the screen. You had, like, there are transactional pricings because, yes, we are selling like payment is, payments are transactional or tolling and so on....
But then you have fleet management system. That's all around subscription per vehicle, or a so-called onboard unit. But then you have transport management, and that has nothing to do with onboard unit. So there's a subscription as per user per month, or per company, or per functionality. And now how to mix it all together into one reasonable, long price list, because you don't want to go through 200 options. Maybe for the biggest customers, we can do with advisory sales, because when you are buying SAP, you are not buying it, the next day you are not using it. That's a consultancy. But for majority of customers, it needs to be pre-integrated, pre-built, with prepared packages they will believe are the best for them. That's what we will work on, and that what we will evolve on the market.
It's quite new, and it will significantly change how these products and services are sold. We already work on gamification, not only for drivers, but also enterprise gamification for the owners, because we want to create a club with a loyalty program and to also support the engagement. Who are our customers? Obviously, we cannot immediately focus on all the type of customers in transportation industry. I think it was many times mentioned that primary focus are, is on the micro SMEs. It's the majority of the market anyway. If we want to have 1 million trucks, we need to start with it, and that's where most of our competitors, if not all of our competitors, is not focused on. They are not focused on majority on the market because of the return on the investment of acquisition, which is not there.
That's why we need to bring new digital channel, even to cooperate with automotive OEMs, because to reach 1 million, we need also partners to bring the truck companies to us. But of course, as the legislation is expanding to the domestic transportation or even to 2.5-ton vehicles, and it will come, 2026, it's already approved, the work time management will go and will be applied also to 2.5 and more tons, and some other legislation is in preparation. That will open a new market for us, from 9 million to almost 50 million vehicles. But step by step. What we cannot focus on, and these are usually very specific solutions on the market, would be like construction, agriculture, emergency vehicles, taxi business. There are different players. So when to introduce it?
We are already working on the platform for months. When you are building a house, you need to build foundation first, and you need to have a solid foundation that your house sustain. That was the first beginning of what we started to build. Do you remember the picture? Data platform, you know, technology platform. These are the foundations, infrastructure, hardware. That's something we had to invest time, money, analyze, communicate with customers, bring feedback back to the product department, cooperate with technical department to build it first. What you could see already today, we are much further. We already have these Lego bricks. Not all of them, you know, as in Lego, even you have a few Lego bricks, you can already build something amazing. We are already building all the digi- digital touch points.
We do believe the last quarter next year, we'll launch it. That's a hard deadline for us, because we can only fine-tune it and test it with real customers. It's pointless for us to have it in the kitchen too long. Of course, it's also not good to show something unprepared because they will lose interest, and they might not cooperate. So we need to balance when is a good time. And... But we will welcome you next year, I'm pretty sure, on a show where we, where you will all be able to use it, and feel it, and touch it, even you are not truck drivers. I know how it is. You want to feel you, what you are investing in. And then it's not the end.
That's the beginning of the journey, as in any software as a service, as in any technology company, they're just the beginning. And only through continuous evolution, and I know we will bring the revolution to the market, but we don't want to do it through revolution, but through evolution. So we will evolve it to more functionality, to even more comprehensive business models, to bundles. We'll introduce more and more AI, because we need data first, then we need machine learning, and we need to give time to the algorithms to learn, and then we can benefit out of it. Do you remember internet before Google search? You know how it was? You know, like, you drill through to many categories to search for something, then after 10 minutes, you found it. How important it is to have one text box.
How ridiculous complexity is behind it, we don't need to know. But for end customer, it is one text box for a user to search for something. Do you remember the picture I showed you with all the tools and services our customers have to use? Thank you for your attention.
Ladies and gentlemen, good morning. You'll be pleased to know I'm the last person standing here to speak to you. Martin will finish it. He's after me. It's a short period of time to questions and answers. I appreciate there's a lot you've had to take in, in the last few hours. An enormous amount of information. You've heard about KPIs, financial data, cross-sell, upsell, acquisitions, inorganic, organic growth, new development costs, CapEx. So my task in the next few slides is to try and pull this together and, and put it into a financial context. What does this all mean in terms of our journey so far? Where have we come from in terms of the financials? Where are we going? How are we gonna measure ourselves on that journey? So, I'm Oskar Zahn, in case you didn't know, Chief Financial Officer.
I've been here now six months, and I'm really pleased to have made this change. On these two charts, very simple, we've got the net revenue on this side and the EBITDA growth on this side. They are pretty impressive numbers.
I don't know where your starter is.
All right. I feel a bit like Keir Starmer, right? You're gonna throw some glitter on me. For those of you who don't know who Keir Starmer is, you may have looked into the news yesterday. What we're showing here is simply the road, the journey we've taken from 2018, only a few years ago, to where we are today. The shaded part is the consensus number for revenue. Look at that impressive number. It's a great story, isn't it? 28%, over 28% CAGR for revenue. Even more impressive is the EBITDA. This is what, h ow did we get here? You've heard some of the stories behind it. It's been a mixture of organic. It's been a mixture of inorganic growth. It's the upsell, the cross-sell.
It has underpinned a lot of our acquisition strategy, the ability to continually sell more products to the existing customer base. It's, it's getting rid of duplication. It's improving efficiency. That's how we've done it so far, and we're about to change the journey, as we move to this platform that Martin has been talking about. Margins, yes, they've been fluctuating earlier on. They're around between 44%-46%. It's still an impressive story. Look at the CAGR, the growth, look at the margins. I defy you to find many companies that have this history. The mixture has changed. Revenue has changed significantly over the time. Not long ago, 2021, most of our revenues were from payments, so fuel and toll. And look where we are today.
As Martin Strigač has mentioned, we're almost 50/50 in terms of payment and mobility solutions. This has come through this journey of acquiring capabilities, acquiring different businesses, as we started to look for the technology that we believed we needed to fix the pain points to help our customers on their journey. Fuel, as a percentage of net revenue, has fallen from 60% not long ago to less than 40% today. So again, it shows how we have progressed and the mobility, which is mostly as Martin Strigač has mentioned, is subscription-based. Again, the terms of the stickiness of the revenue, the recurring revenue nature of these revenues, so the strength of these revenues are improving as we go along on that journey as well.
This bodes very well for what Martin Strigač was just saying earlier on, about how are we going to price this new offering to our customer, customers. Having this basis already in-house helps us enormously. How did we get here? What this chart shows is our cost base. This is essentially the building blocks, the financial Lego blocks, so to speak, which Martin Strigač has been talking about. Our costs are mostly employee costs, technology, and operating costs, such as PLC costs, marketing, sales, et cetera. You can see it makes up about three-quarters of our revenues, our net revenues. It's a lot of money, but this is what we've been building over time. This is the, w e've been investing not only in the capabilities of individual people, we've had to evolve as the business has evolved.
In a very short period of time, we've had to do this. We've had to make sure we had the right people doing the right pieces of work. We had to continually evolve as our customers were evolving. We had to deal with changing market circumstances. We've had to gone through, like everyone else, COVID, war in Ukraine, and the terrible things we're seeing now in the Middle East. We've had to invest in talent, attracting the right skills. We had to be of the right size in order to be able to attract the right technology people into the business. So this is what we're seeing here. You're seeing the absolute cost breakdown, and you can see a clear improvement in investment into technology as we move into what we will hopefully will be seen as a technology business.
Here is the number of employees. Not long ago, I don't even have the split of what these people were doing in 2019, about 900 people, and now, more than double that, and you can see. You, you, you heard Martin talk about he had one IT person, I don't know who that poor guy was, by the way, or woman, in 2017. We now, with our technology, CPO CT alone is over 800 people. Can you imagine that journey? You're a fuel card company, now you're a technology business. You're building something no one else has seen. I hope you've seen the complexity, but also the huge opportunity that lies ahead for us. Big investment internally, in people, in systems, in technology, cloud-based systems. Huge, huge investment. We've also spent it on M&A.
We've heard. You've heard we've been buying a business, so the light blue has been a lot of M&A. You've heard Martin himself comes from Sygic. The blue, the dark blue has been our CapEx. We talked about a EUR 50 million transformational CapEx program. How do you define a tech CapEx program three, four years ago, when you don't know what you're going to build? Trying to explain this platform that you've seen, what was presented today earlier on, it's pretty complex, isn't it? Yet we did. We went on this journey. We acquired all these specific technologies, which were the sort of foundation, the platform of what we have today. Yes, it has had an impact on leverage. The bottom shows the net debt. We have been high before, and we've come down.
We will come down. It is high. What we have here still is some deferred compensation or payments that we're gonna make to our existing portfolio, but we are determined to bring the net debt down to something I'm much more comfortable at, between 1.5 and 2.5 times EBITDA. Capital expenditure has been a complex program. What we've tried to show on this slide is, very simply, the ordinary CapEx, which is this strange bluish color. I don't know the names of blue. Infrastructure, definitely the dark one. We have truck parks. They need investment. They need continual investment as well.
But we've also separated organic ordinary CapEx versus what we've recently acquired, and we started to show that that is this funny color, which is from our acquisitions. Why did we show that? First of all, the mix has changed. The recent acquisitions of WebEye and Inelo, they invested a much higher percentage of net revenues than we've had. You can see at the top, the percentage of net revenues. Both Inelo and Sygic and WebEye invested a much higher percentage. A lot of it was OBUs, onboard units, the hardware that Martin was talking about earlier on. And we heard in future, that's gonna eventually consolidate into one. But at the moment, it's a significant capital investment.
In the half-year results we just released a few weeks ago, we talked about medium-term guidance on ordinary CapEx falling to about 10%, going forward. So we do see the end has come on the transformational CapEx. Then, of course, there'll be development as we continue to roll out this program and continually invest for the benefit of our customers. This is probably the question I get asked the most from people like Tint in [crosstalk].
How does your working capital work? What is your cash flow? How do you look at it internally? And it is complex. So what I've done here, operating cash flows, in my terminology, for this business, I see it as ordinary cash flows from operations before working capital, but after allowing for ordinary CapEx. I'm already deducting from the previous slide, the ordinary CapEx, because I think that's right. And why have I not used working capital? Because it's a slightly different animal in our world. Working capital in Eurowag is driven by our gross revenues, so we are the pass-through of fuel, for example. We buy two billion liters of diesel, we sell two billion liters of diesel. The price of that diesel fuel changes over time, and you can see it where it fluctuates.
You can see the time of COVID, where prices fell, demand fell, then came back up again. We're seeing some high prices today. It affects the overall gross payables, gross receivables. But at the end of the day, what you see here is it's pretty negligible when you divide it by gross revenues, and that's what we try and manage. It's fairly complex within it. You can see other payables causing actually some of the fluctuations of working capital. But where there are certain receivables that are harder to forecast, I always pick on Spanish guys, sorry. The tax authorities in the Basque region, you have no idea when they're gonna pay you back. So what do we do? We factor some of those ourselves, just to manage our cash flows ourselves.
But by the way, it's not just Spain, it's every country has an issue with paying back taxes. Remember, we're collecting on behalf of government. So where we really try and manage our working capital very, very carefully, but it's easy to move. If you've got gross revenues of about EUR 2 billion, it's easy to move EUR 30 million-EUR 40 million on a single day, and perhaps on the thirtieth of June or the thirty-first of July or the thirty-first of December, I may not have received what I thought I would receive, and that's why you sometimes see in our working capital a fluctuation. So going forward, what is the expectation?
We've heard a lot from Miroslav, who, you know, has lived and breathed Czech and Slovakia, already a very, very steady ship in Eurowag. It's the most mature businesses we have, and yet is still able to cross-sell and upsell. You saw those charts very, very clearly. We haven't yet started Inelo. You heard Inelo will be doing the agile sales teams, really from quarter one, we're bringing in. So the opportunities are still lying ahead for us. So I expect revenues to go up. We continue to look at new geographies. We, you know, through the Inelo acquisition, we acquired CVS, of course, different geographies than we were operating. Again, new territories, new opportunities, cross-sell, upsell, all there. Our market has, Martin Vohánka showed, the addressable market continuing to go up.
We expect that also to continue moving. The movement to a more subscription-based model, 60% of our revenues being subscription and 20% finance. We don't have that today, but offering this e-wallet is, is again, you know, very unique in the offering. So that's revenue. So we expect revenue to go. What about the margins? You saw very clearly, cost of acquisition of every new customer today is about EUR 500. We want it to be EUR 300. You can do the math. 250,000 trucks difference, and the new customers to come, that's clearly the move to digital. Significant reduction in the direct sales force. You saw Miroslav's chart right at the beginning, 600 sales force. Well, that's a lot of people.
Do we need them going forward when you've got a huge change in the way we go to market? Internally, we're rolling out SAP ERP. Internally, my back-office functions will improve efficiency, so margins should be going up. All of those, of course, combined, will have an impact on cash flow. At the moment, we do not believe we need any more M&A. We have what we need in-house. Yes, you can always accelerate the acquisition of new customers, new trucks, but in terms of technology, we have what we need to build the platform that you've just seen Martin Strigač present. So all of this will come. Hopefully, it manifests itself in a lower debt level. And as a result of all of this, it gives me confidence to state that in the medium term, the guidance hasn't actually changed from the IPO.
We did say high teens revenue growth. We did say we'll go back to the high forties in terms of EBITDA. We did say the CapEx program will come to an end. We are coming to the end of that. And you can see where I expect, how I expect the margins to come down. Yes, in the half-year results, for the first time, I gave near-term guidance. We've never done that before. Why did I do that? It's because we continue to see some headwinds in front of us, the economic conditions are not great. We continue to see kilometers, less kilometers driven, but we can see a path to still continue to grow. It's not a bad mid-teens growth business. But we're also, you heard, going to be trialing a new pricing model.
That will have some disruption to revenue. So all it was, is about managing your expectations, that in the near term, we did expect it, revenues to take a slightly different growth rate. So how are we gonna measure ourselves going forward? This transformation from where we are today to a hopefully conceived fintech business requires completely different KPIs than we have shown so far. Number of active trucks is the backbone of our business now. We have to continue looking at it. It allows us to see the scale of our market, the growth opportunities. It allows us to see as to whether there's any duplication across it. But importantly, is the average revenue per truck, as you can see there, is going to be a key driver behind our overall growth in terms of revenue.
You've heard a lot about customer experience. NPS has to be a very important factor for us. That experience that we've been trying to show over the last few slides is so important. If a customer doesn't believe what you're offering has got value, why are we doing it? Hence, we have to measure it. Number of products per truck, that is going to be a key indicator. We want, as Martin Vohánka mentioned right earlier, we want to double that from three to six. We have to measure it. That is going to prove our business model. We also heard that every time you give an extra service, your churn halves, making that revenue even more sticky. So you can imagine you've got now more subscription, you've got less churn.
That is what makes the business more stronger as we go forward. Of course, the percentage of subscription, we've put out ambition as over 60%. We have to start showing it. That is the recurring revenue that we're talking about. On the last one, R&D. At the moment, in the last few years, we've spent between 7% and 8% on research. Mostly, it's been development. Most of it has been capitalized in the last few years. But as you heard, we will continue to invest in development. We have to continue to do that. Of course, it'll come down. The overall spend will come down as we're getting to the end stage of this, but there will always have a more...
There will always have to be a development to ensure that we deliver the product that is right for our customer, as well as make sure that we ourselves do not damage the strong business model we have today. So before I invite Martin Vohánka to come back on stage to wrap the session up, and I can hear people cutlery outside, and we'll have a Q&A session shortly. I personally just wanted to thank my colleagues. You know, they presented something pretty complex in a second or third language, which if trust me, if you hear the few words of Czech I can speak, you don't want to hear it more frequently. Really well done. Thank you very much. Of course, today would not have happened with Carla. By the way, it's Carla's Market Day, not Capital Markets Day. So, my gratitude to Carla. Martin?
Thank you. Thank you, Oskar, for presenting where the rubber hits the road, as I learn the English expression. So, how it simply translates all what we do into numbers. Perfect. So for me, really, just in one minute, to summarize key takeaways of our ambitions. First, one million trucks, so to go big, simply go big or go home, I would say. This will create like a multiplication effect. We are repositioning already Eurowag as go-to address for anyone in trucking industry, be it trucking companies itself, or partners, or shippers, or anybody else. We will be shifting as a consequence of all the simplifications. This is one of the objectives which you remember, probably, you heard it throughout the this morning multiple times.
We'll be simplifying as well, pricing towards something what is more recurring, what is much more simpler, which is demonstrating our shift to software as a service part. You remember this positioning, so 60% of the revenues and 20% out of the financing, which is now a bit hidden in our deferred payments, but through EVA, we will be able to demonstrate it and grow it. We is in parallel, or as a consequence of all these activities, we will be improving customers' revenues, bringing costs down, and helping them to decarbonize. So that's all. Now, I will ask Carla to organize us for the Q&A session. Thank you.
Thank you.
Thank you, Martin. Thank you, Oskar. And thank you, Martin Strigač. While we get Martin and Oskar comfortable on the stage, just a few things from me. Yeah, if you could come and take a seat. Thanks. For those who are online, just a reminder, again, you have the opportunity now to ask questions. So again, you've got Ask Questions on your tab. Please do submit those now, and we will, as I say, answer them now. Those of you who are in the room, we have two roaming mics. We've got Isadorea and Sidonie on either side of the room. Please, can I ask you to, when it's your turn to ask the question, please, can I ask you to speak clearly into the microphone?
Not just for us in the room, but as I say, we've got some viewers online. All right, we ready? Maybe we don't do. Great! I will start. I had some few analysts in, at the break already trying to ask me questions. So let's start in the room. Should we do Hannes first.
Thank you. Hannes Leitner from Jefferies. I got a couple of questions for Martin and for Oscar. Maybe we start with Martin. You have introduced quite an ambitious goal with 1 million trucks from currently 250,000. Not only that you want to get the reach, but you also want to increase revenues by 20% per truck. Can you help us to understand that why should trucks go basically with a Eurowag? It sounds like you want to penetrate them more and displace other card, fuel card businesses, which might not have the full functionality. But if you drive through a Europe, maybe Europe, Eurowag's network is not that pleasant.
Then the second question on the same remarks is basically thinking about why should Eurowag be better positioned to digitize a very manual industry compared to freight forwarders and their platforms, thinking like sennder, who acquired Uber Freight in Europe. That's the first two questions for you, and then for Oskar. You talked about the medium-term ambition and the KPIs, and very thankful for drilling those in and repeating them. The only thing which is missing is free cash flow targets, and maybe you can talk there a little bit about the progression, how cash flow should come in. You mentioned a little bit the deleveraging process, which will be kind of driven by revenue growth and EBITDA margin improvement. And the last question is, no, that's fine. Thank you.
I was gonna say three questions only, but we'll give you the last one, don't worry.
Thank you, Hannes, for the questions, and I would just mention that feel free as well to ask our ExCo. So I'm sure that you might have a lot of questions on product, et cetera, so it's not only about us. We are ready to answer these questions. When it comes to growth and one path to 1 million, indeed, this was not... It's a round number. We love this number. It's easy to show, and it's aspirational. But indeed, there was thinking behind that, yeah. And it has multiple components. At first, we, of course, wanna continue in our growth path, you know, and leverage what we know, you know, which is direct sales. We wanna expand digital. You learn that there are a lot of small companies, which is difficult to reach, it's high cost of acquisition, et cetera.
Digital, we simply see, we already sense the substance. It's not something to come. We already can build the models based on a current experience, how digital will be contributing. The next component is, truck manufacturers. I don't know whether I conveyed the message properly, but, you know, what else you would like to hear as endorsement of unique approach of Eurowag, even if truck manufacturers select Eurowag? Because simply they do not see it anywhere else. And if you think from certain moment as the new line, new, these models will be hitting the road, it will cover more than 40% of the market. So more than 40% of new trucks introduced on European roads will have Eurowag application, Eurowag platform in their infotainment, doing these great things which Martin was talking about, you know?
And in total, it's representing 250 up to 300,000 trucks a year hitting the road. 40% out of it will have our application. So if you do simple math, you see this is huge potential.... Again, I was managing the expectation that there is a way to learn how to ensure that the conversion rate will not be one person, but I don't know, you know, much, much, much bigger number. So there is still way to go. And everything seamlessly in omni-channel. Plus, Oskar mentioned that in terms of capabilities, we have over everything what we need, but I can imagine as we deleverage and as we integrate everything, that we can go back and to look on a market, and again, you know, look on a companies and run the test.
What is the cost to acquire one truck through whatever portfolio of fuel, fuel trucks or fuel cards portfolio or fleet management portfolio? So we will run these tests and say, "Okay, what is the cost of acquisition? What is their current ARPU? What is the ARPU? So this might be additional driver of how to reach 1 million trucks. So you see that we do not rely simply on one bet, we have multiple avenues how to deliver this, these 1 million trucks, you know. Whether it will be slightly different mix as we, as we guess today, very likely, but we believe that all in all, it's very much possible.
When it comes to why, if I may condense your second question, why, and please correct me if I'm wrong, why they shall be selecting us, why we shall be able to replace the existing, for instance, fuel cards, et cetera. That's what I was trying to depict on this slide when I was speaking about reduction of the cost, increasing the revenues, and having and solving the financial issues which trucking companies have. Because the problem is that if you procure, if the trucking company procures single product, by single products from various suppliers, they are exactly not able to achieve these 10% of cost savings, because these are born by the integration. Simply, we invested into these integration capabilities in order to unlock the inefficiencies and the value which is lying in these inefficiencies.
Simply, single product providers, it might be super nice fuel card company, or it might be super nice fleet management solution, but because they are lacking integration, they are lacking this user experience, they are lacking these streamlined workflows and data and hardware sitting in one place, they cannot simply deliver it, you know? That's why if you zoom out, Eurowag was providing discounts on commodities, if I brutally simplify that, as a fuel card. That was the fuel card business. And now, we are changing into somebody who is enabling efficiency improvements, which the way how the industry was done so far, was not possible to be done. So that's why I was speaking about unique or somebody would say, unfair competitive advantage against single product providers.
We believe that those companies which will stay swimming in their silo, they will be marginalized over the time, and we will be expanding our market share primarily on account of those single product providers.
Do you need time to digest all that? Look, to me, cash flow, it's not a KPI. It's an absolute essential part of my financials. It's as important as the revenue, as the cost, as the balance sheet, so I don't even consider it as a separate KPI. The KPIs I've shown is how we want to monitor our growth, our growth drivers, making sure we're on the right track. Of course, cash flow is an essential part. We have to improve it. How is it going to improve? You've heard how I say, expect the EBITDA to grow. The EBITDA as then, as a conversion of how much is turned into cash, clearly becomes a very, very important part. So to me, it's, it's, it's not a separate KPI, it is absolutely essential that we and I can assure you that internally, it's a huge focus for myself.
Great. All right, thank you. Tint in, please. Thanks.
Why are you looking at me, Tinti n?
I don't have a cash flow question. Tint in Stormont from Numis. I have an ARPU question. If we think about the ARPU per truck and your ambition to get three products into six products, but also the limiting factor of what can you think they can actually afford in terms of what they're gonna pay, for example, one supplier, what that ceiling could be? Could you kind of walk us through what that might look like? And then I'll just say all the questions. On the OEM side, sort of obviously very exciting, three out of six manufacturers, could you remind us of the nature of the, the partnership or the, the revenue model with, with, with the truck companies?
Mm-hmm.
Realistically, when do you, do you think we'll see the first trucks with Eurowag built in into there, hitting the roads? And then thirdly, from a product development standpoint, what is the biggest risk from now till the launch date, till the soft launch?
Mm-hmm.
What's the thing that's keeping you up at night?
Thank you, Tint in. I will answer first two questions, and I will ask Martin to help me with the rest of the second question, and maybe third. So when it comes to ARPU, already when you read disclosures about Inelo acquisition or WebEye acquisition, you've seen that their ARPU was 15-20 EUR, it depends which company. Our ARPU, if you divide our net revenues by number of trucks, which we are, it was well over 100. So there is a clear path, yeah, so what we can achieve. However, how... What is the maximum? You know, whether we speak about 300, 200, 150, this is to be seen, and this is function of two things. First, the value which we unlock for the customer.
You've seen that we measured and we estimated what we can release in terms of cost, what we can improve in terms of revenues, yeah? And that's what is the great challenge to measure it, because unlike from Uber, which can demonstrate it on one single case of the taxi, taxi driver, because there is, there is nothing else which they are interact with, interacting with. In our case, trucker is working with various shippers, wages, they have different, et cetera. But still, this is what will be happening, that we will be unlocking this value, and therefore, we will be constantly testing and iterating with the customers and testing what is the, what is the price elasticity, how much they are ready to pay for. So we have some theoretical view. Of course, our strategy department have.
We pre-calculated all these things, but reality will only show, because we do not have a precedent. We do not have somebody before us who was testing it, you know? But you see the value is immense, what we are unlocking, you know. So, already from that, you see that there is a lot of room for adding or increasing the ARPU over the time. But we do not wanna do it sensitively. It's a new thing. We need to learn, customers how to buy, how to buy in different way to gain their trust in a technology, to gain trust in a new business model. And as we will be getting volume, as we will be getting traction, word of mouth, et cetera, I believe that our pricing power will be immense.
You've seen what Miroslav was showing, how this every adopted product, the churn is going down. So if you just extrapolate this curve, if he has five or six volume, five, five or six products from us, it's a real lifetime relation. The customer will never leave because we will be so embedded and so, so useful for them that it's a lifetime relation. So I think there is a plenty of headroom, but simply to cut long story short, we will be testing it, we will be learning. We are very excited from this opportunity, but we cannot say as of now. When it comes to the second question, and I would need a paper to write these questions, yeah, so do not forget. [crosstalk] OEMs. OEMs, yeah
I will just answer the first part, and Martin will help me with the second. Nowadays, we are getting paid by the OEMs to place... Because I said the core of it is navigation. It has a value. Truck navigation, they cannot use Google Maps, yeah, because they will hit, in a first instance, the bridge, which is too low, or they will get into whatever residential area. We are getting revenues for every installed application, but this is not our goal. This is more like a basic hygiene. Our goal is to make customer, make the happy owner of the new truck to register and to converge into paying customer. And Martin, please, if you can precise this.
I'm not sure where I should stay. Okay. So automotive, it is a super conservative industry. You cannot just come, knock on the door and start supplying something or just sign some big global agreement. It just doesn't work like that. I'm not sure if how many of you really know how the business is working there. So first of all, you need to get trust, to be trusted. Sometimes it's called, like, you need to be whitelisted as a, some approved supplier who can then go to RFQs and supply the offers, and then, then, you know, in a complex, procurement process, either win or lose. So that's something we are trying already for a few years. We already have a signed contract.
Some of them we can talk about, some not, as you again imagine, it's, not easy to convince also the partner that when we can go public with it. But you can do your math because there are not that many trucking companies, OEMs, if we want to be like 40% on the market, with three of them. And we already succeeded with something what was the fastest for us to convince and to gain the trust, and that's the location-based services, navigation, truck navigation. It was a standard procurement process. Every 5, 7 years, we are testing the market, whether they change the provider of the inbuilt navigation system into the infotainment system, and the automotive is transforming as well. So far, it was always like proprietary system based on some, these kind of Lego bricks.
Almost exclusively built for every time they procured something, it was built for them. This is the first time we convince them it's just a product. The technology product, which is evolving much faster than brakes or engines, and they should treat it like that. It's a huge improvement in understanding of the transformation of our partners. We made this first step. We convinced already three of them, big ones, and they already signed contract for like 5+ years, which can be prolonged, that we start with this as a first component, which is through cloud, connected, updated every time it's needed. It's like a, n ot pre-built, and it stays like that until you go to service to have a map update. You know, it's just, y ou can get a new feature whenever it's available.
You get it the same time, maybe when you have it on the app store for your smartphone, you have it also in the truck. They said, "We understand you have more on the plate, so come and let's start discussing the other stages. Let's extend it to other services of the office over the time." We just don't want to give them something to offer it to the end customer through the truck. They have something super important for us. They already have data. For us, it's a huge blocker that we need to install a black box into a truck through aftermarket installation. You know, it's hard to test it, but you test the services. "But you know what? You need to uninstall what you have, you install what we offer you, and then after whatever, three months, you tell us." It doesn't work like that.
What if we have data from OEMs, which they already collect for their own purposes anyway? They have it on cloud already, all the telematics data. What if we would get access to it, and we can just say, "Let's use the functionality for three months. No, you don't need to install anything. We'll just turn on in the office some extended telematics view, and you feel free to decide whether you buy the or subscribe long term or not." The same thing, tablet. T oday, everybody is buying the new cars, new trucks, with more and more displays. But guess what? You anyway, after, retrofitly install another tablet, 'cause that just those displays don't connect to your fleet management or transport management system.
So you have even tablet from us, you have tablet from our competition, and then you use that screen instead of what is already inside, what costs something. You cannot avoid it, because you need to pay for the screen. There's another area we are discussing. We have navigation, why not extend it with itinerary management, with some additional information to connect it through the cloud, and to extend the experience through something that already exists, what you paid for as automotive. You as a customer, you paid for it, but maybe you would subscribe for some more premium services where we can share the revenue. Again, because they need to transform as well. I mean, the automotives, they are listening.
The first step was to convince them that we are a trustful partner. We can win a procurement, which can you can imagine it was a very difficult time to win a procurement. We had to go through automotive certification. They came, they analyzed, they audited us, they checked how we develop software. Automotive standards are very high level standards. They even, even gave us a stamp that how we develop software is a very quality way that we can win even to be whitelisted, and even to sign the contract afterwards. So to keep it short, maybe, I will stay here. But I could talk about automotive a long time because it's super exciting, they are how they are changing, and to be with them in the change is amazing. So
Thank you.
Thank you.
What's the biggest risk from now till launch? Oh, well, oh, yes. Sorry.
Biggest risk? The biggest risk would be that it would, y ou know, software development and IT is a very fragile ecosystem, so it needs to be very consistent, and we need to take care of people, and we need to take care of of the teams to stay with us a long time, because onboarding of new developers, onboarding of new designers and everything, costs a lot of money, takes a long time. So we need to do our best not to fiddle with CapExes, with the investments. So it needs to be very stable, and it needs to be consistent. We need to understand if we build technology, if we build build software, it's not a project which has a clear end. It has a beginning, and then it's a lifetime investment.
That's a little bit I'm afraid of, because, yes, the market can fluctuate, the macroeconomics can be different, but our development needs to be continuous, and we pragmatically need to shift the teams or make it bigger or smaller. You cannot even make it 2x bigger. Where would we find those developers? We are stealing from each other, like the companies are stealing developers, the good talents, so we need to create an environment where they want to join, and we need to make sure that we retain the good talents within the team.
Right. We'll continue. Sorry. Gautam, please.
Thank you. Gautam Pillai from Peel Hunt. I have a follow-up on the product development cycle. So you Martin, you kind of talked about how the integration has happened so far. Every acquisition means a different tech stack, a different code base, and you're standardizing it, putting a middle layer on top of it. What needs to be done from now until the launch? What is left to do? So that's my first question. I, I'll just ask the next two questions as well. The aspirational 1 million trucks target, is that an organic target or, you know, kind of Oskar, in your prepared remarks, you mentioned that you've done all the tech acquisitions you need. If there is a truck acquisition or kind of acquiring a footprint, does that include in this 1 million target? Would be my second question.
Maybe I'll answer that-
Yeah
while, while Martin thinks of the answers to the first question. We said we're growing mid-teens to high teens in terms of revenue, so that implies you're gonna double in size automatically just in three or four years' time. So you'd be where we are today and double again and still gap. We didn't say when, so one good thing I've taught Eurowag is never give a number and a date in the same sentence. So we didn't say when the one million will happen, but clearly it's an ambition and it's a round number. But we also said that's just growing organically, but the upsell cannot be underestimated. That going from two to six on your same customer base, and then growing with markets, as well as looking for new geographies as we continue to do.
That, that we, we, we have not built into our long, our medium-term models, a big number for acquiring, say, another 100,000-200,000 trucks. Clearly, you can accelerate that growth if you felt, if we felt we needed to. Again, we know what it costs to bring in a single customer. We know it takes time. We hopefully that's down to EUR 300 per truck. If you had suddenly the opportunity to accelerate and bring in 200,000 overnight, at what cost? That is, t hat's not in our model. Getting to the-- We think organic growth is sufficient to deliver that. As and when the balance sheet allows, we can consider M&A, but until then, it, it, the answer is quite a strong no from my side.
Got it. My last question on the OEM side, how important is to be integrated directly into the automotive OEMs? Because if you have with- Android Auto or Apple CarPlay, you can have an app and kind of connect into those infotainment systems, you know, in a different way. Is that a route which you have considered as well?
Yeah, I would ask Martin to answer both questions. Thank you.
I will start, and I will ask my colleague, Pavel, CTO, to complement. With automotive, Android Auto, we are already building, so that will be there next year. To get the data from CAN bus, from inside the truck, from all the data within what the automobiles have to, to utilize it, that's a different story. Google, Apple, they are isolated systems. They are not allowed to read this data and, and to use, to, to combine it with some other data. This is really more like a... It's similar to what the OEMs, they have their own fleet management systems. This is almost like getting into their fleet management area by extending their capability with something they are missing. We don't want to get rid or, or replace their super eco-driving, you know, capability.
They would be probably the best ones because they know the truck the best. They know how to utilize it the best. There are multiple other components, as you could see within the office, which they don't want to build from scratch, or it's, you know, costly, it's risky, and they rather partner to create an ecosystem. Because we have these Lego bricks, it's not that hard for us to have one Lego brick from OEM or from automotive, but the others from us. With what's left, of course, there are some things which we are building almost from scratch. That's the digital touchpoints, the front-end layer. Of course, there is a work ahead of us, as well the e-wallet I mentioned, that's like a new development.
There is a lot of stuff which needs to happen on the services layer and technology and data platform, and that's maybe I will ask my colleague to answer. He's more in deep with the teams.
Thank you. So you remember these four layers? Basically, I think, our two layers, like data platform and technology platform, is already quite stable. We have enough data there. We can rely on them. So this is obviously also evolving. We are doing our, let's say, ERP migration now, also for different reasons. But we are very much looking to that, because from first of January, basically, we should have new ERP system. What I would mention, what is ahead of us is the integration part. It has, for me, like, two dimensions. First is to integrate acquisitions, to integrate the customers. So this is, we'll have new, we call it group customer, so we'll be able to really do the cross-sell for all the customers. This is, this is what we are right now doing.
Then integrating all the products, because up until now, they were, like, really very much separated, very much in different systems. We have new UX, which is really integrated, and this is what we are right now developing. We are somewhere in the middle of the development, and I believe very much that we are going to do that before the launch, as planned.
Great. Thank you. Sure. Thank you.
Thank you. It is Rory Mackenzie from UBS. There's been loads of focus on your customers and products. Can you talk about the challenges of connecting and collecting data from all the suppliers that you need in your platform, as well? You know, that dashboard shows that you'd need huge network coverage of all fuel and toll sites across Europe. You'd have integration with loads of freight forwarders to create all those offerings to give them. So can you talk about what you're doing to enable you to get the 1 million trucks to 6 products on that side? Then secondly, on the evolving pricing model, how should we think about pricing evolving for the traditional, I guess, payment services, so the non-subscription side? You know, how would the average spread of discounts on fuel evolve in that bundle?
How will the average take rate in tolls evolve? And do you see any deflation risk as this kind of bundled approach grows? And then finally, on productivity, Oskar, you've only been there six months, and there's lots of growth ambition, clearly. For you, is productivity about driving the growth to justify the cost base, or are you thinking there's gonna be some areas you need to optimize as well? Thank you.
Thank you, Rory. I will start with the second question. When it comes to pricing and evolution of the revenue mix, we are touching commercially sensitive area as well, so I will try to stay on a conceptual level. One thing to assure you, the fact that we are adding more and more products means, and that's what we've seen already in Eurowag, but as well in Inelo, by the way, yeah? So whenever we were doing due diligence, it was very clear to see whenever they were adding second product, work time management and fleet management together, that immediately their pricing power has increased, yeah? Because in subscription, typical things which subscription-based companies are facing, that there is a pressure to decrease the subscription, yeah? So, but whenever they add the second, it stopped, yeah, this erosion.
Yeah. So that's, that's what we see, simply, that whenever we are selling more products to customer, simply, we have more revenues, and we have the higher pricing power, and that's what will continue. And this will only deepen with more and more services added to, added to the platform. So we do not necessarily see erosion of the margins, both in, on both of these transactional services. But as said, and here I'm really touching commercial sensitive area, we do believe that overall, this overall mixture, it's possible to move and to manage more toward subscription, you know? So in a nutshell, pricing power as a consequence of cross-selling, as a consequence of integrating everything and unlocking the value, will only increase. That's for sure. That's what we already know, and that's what we can state firmly. When it comes to the first question, Carla, can you repeat?
It was-
Yeah, the suppliers. In fact, there is only one group of suppliers which is not yet developed, because we have the network, we have fuel network, we have toll network, we have the access to roadside service providers. There are very few truck manufacturers, you know, we already signed three. So, there is only really one area, and this is providers of the load. You already seen some real examples. This was not like a created pictures, you know, these were real loads which we have available. And that's what we were already commenting, I think, a year ago, that we have a pilot in this area, that we have already contracted multiple big production facilities.
We were contracting as well, freight forwarders, and that's what we are now developing more and more, and we are strengthening business development team around that, to go around and contract these, most obvious load providers. Initially, we are not, like, bound to one category, whether freight forwarders or large factories. Simply, we will be contracting all who will be keen to explore this, this path, and who will be ready to establish such a data connection. This is the only area of focus. However, we see again that we have a case, because the problem in between shippers and, transporters, why there are all these middlemen, all these freight forwarders, which Martin was showing on his slide. The problem are two, two-- stemming from two reasons.
First is lack of transparency. Shippers have no clue what the transport company is about, how big it is, how old they are, their trucks, whether they are insured, what are the typical patterns. So total lack of transparency. And the second is fluctuating production, therefore, demand and supply is not matching. Therefore, that's why there are the freight forwarders. However, especially for full truckload, so these straightforward cases, deliver full truck from point A to B, we do not see space for the middlemen. And the solution for that is not digitizing part of the workflow. Solution for that is to harness the data about trucking companies and to pool the capacities, and that's what exactly we are doing.
We are the only one who is having such a breadth of, and depth of the data, and we already pooled 250,000 trucks. Whenever you expose it to shippers, you expose it to these; this is a totally different game. Immediately, they do not need the middlemen, because they know what they are procuring, because we can rate truck, we can rate company, we can rate the driver. We know whether they are experienced with such routes. We know whether they are experienced with such a type of goods, you know. This is the new quality. On this basis, we believe that in long term, we can disintermediate the industry. To cut long story short, in terms of partners, our focus, business development focus, is really shippers and freight forwarders.
Efficiency. Back office efficiency, what does that mean? Imagine we've just bought a huge company called Inelo. It's got its own reporting system, general ledger, HR system, health and safety system. We've got a different CRM, huge. You heard how important it is to keep the developers, but also our customers. All different systems to what we have. We have WebEye, similar, different systems. You got, systems that are more up to date, got some old, antiquated systems. That's why, what Pavel was saying about the SAP going live in January, is key to have the core done, but all the supporting systems have to be efficient as well. So how do you improve efficiency in the back offices? Systemize, digitize. So what we're doing for our customers, we have to do internally as well.
So having an integrated ERP system is hugely beneficial. But it's not just broadening the general ledger, it's about the working capital, it's about the information, making sure that the HR systems are supportive of the people that we have to support. This is all about people. You saw the biggest cost is employee costs. That's what we have to make efficient. How do I manage my working capital? It's a huge task. If I don't have the right data, the system, it's manual, and that causes you fines. Getting rid of duplication, getting rid of duplicate IT systems, that is where I'm gonna have a huge benefit in the back office. So it's not about justifying, it's an essential part of moving forward.
Before I go back to the room, there are a few online. Martin, one for you, and Oskar, I'll send one to you. So the first one is: Do you have ambition to become a bank to your customers? I think they're referring to e-wallet. And the second one, Oskar, is: The customer acquisition cost today versus tomorrow, what is that, this, the EUR 500 to the EUR 300, what is - what are the components of those, and how do they move from the EUR 500 to EUR 300? If I've correctly asked the question properly.
So, straightforward answer, yes. Clever banking solution, absolutely. And you heard me speaking about the future as we see it, just truck, the driver who is owning the truck, and he's just driving. And we are securing everything, meaning as well, the banking services, financing, ethics, payments, all this, all this is included in e-wallet. And that's why mentioning, that's why Martin was mentioning that this is revolutionary. So you can think about our platform in two dimensions. One is software, providing software which connects everything, enabling, you know, doing these algorithms, clever algorithms. And then, in order to interact with outside world, you need payments and financing, yeah, ethics and other things which are in banking. So that's why it's sitting everything in one platform. So, yes.
A good question on the acquisition costs. You saw in Martin Vohánka's presentation, his very opening slide, at 18 offices, 600 direct sales force. Well, as you go more digital, as you go more indirect, as we've been trying to explain through the OEM structure, do you really need 600 direct sales force? And the answer is no. A lot of the time today is spent on pricing, and most of that pricing is on fuel. As fuel becomes a pass-through, we will not need to spend all that time. You know, how do I reduce that cost by 40%? Well, it's reducing the number of direct sales force by 40%, improving the systems that support them, so that there is a very, very direct mathematical way of going from 500 to 300.
Thank you. One question on geographic expansion, just in terms of roadmaps and priorities, are there any countries that we are today versus where we want to be?
I already mentioned that Europe is our playground, yeah, so we have to win whole Europe. Sometimes I get asked whether there are some other continents, yeah, but I think the homework is clear. We need to be number one and undisputed or go-to address for trucking in entire Europe. And indeed, when speaking, for instance, about Nordics, Nordics are. Their affinity to digital solutions is very high. And as I think Martin was mentioning, introducing really seamless digital experience, we can have a different road to market, go-to-market strategies than so far. Because as the industry was direct, you need to at first open the office, employ the people, et cetera. And then, you know, we were bringing only, only digital.
We can imagine that we will be flipping that around, yeah, through OEMs being present in across entire Europe and through digital, and only then bringing eventually direct sales when it comes to larger... Whenever, whenever we have certain penetration and bring direct, direct sales more in consultative, consultative way of, way of selling. So, now, Central and Eastern Europe, Spain, where the biggest markets are, we open Germany. Austria, Germany is a huge market, and the other markets will simply follow.
Great. Thank you. One on our sustainability strategy. There's just a follow-on question from your presentation. Considering the expected progressive shift towards zero emission vehicles over the next few years, how do we assume that our customers currently using our card today to buy fuel will be able to access then the alternative, so electric versus the LNGs, et cetera? And how are we gonna play our role against, I guess, the competitors in this space?
Yeah. We feel very comfortable when it comes to alternative energies. We already demonstrated LNG and all liquid type of energies are really almost identical like diesel. It's just different looking fuel site, which is having hydrogen or LNG. So there is not that much change, and we already have in our network 50% coverage of LNG, which is the only viable alternative so far. Hydrogen is still to come. Maybe we will see something more sizable in five years' time. When it comes to e-charging, this will be different, and that's why we as well made investments into LMS. LMS is now leader in e-mobility in Western Europe, having huge number, today, maybe it might be more than, more than 700 of charge points connected to hundreds of thousands of charging points.
We acquired them because there are some specific technologies. There is energy management, there is a specific billing, et cetera. Just to ensure that we have access to this technology, these are... And this technology would be already generating revenues. We have the technology, and we already generate revenues through LMS, through passenger cars. We are very well positioned when it will come for trucks, that we have the mature technology, and we didn't bleed when it comes to investment costs, because, of course, trucking will be picking up only step by step. What we specifically will see in charging will be that first, it will be like small islands. Companies will introduce their slow charging overnight for the transport which is around the church.
We will see introduction of the e-charging on these big hubs, let's say, Amazon type of operations or supermarkets and their big warehouses. We will see that their docking stations will be equipped either with slow charging or fast charging. Only in the last stage, we will see something what will be relevant for international haulage. International haulage will be definitely the last one electrified, and we will see more and more truck stops alongside the motorways, which will have these speed chargers with half a kilowatt, or 300, 350, or 1 megawatt chargers. This will really take time because this is very costly, very demanding, and again, avenue to that is the slowest.
Thank you. Any more in the room?
Yeah. Martin Kujal, J&T. Martin, I have a product question for you. Great presentation, but there was one thing I was not quite sure about, and that is: are you aiming to basically create a marketplace where you have, guys like Pepsi coming in and they're like, "Okay, I need to move this from A to B," and then you see it as an operator on the same app, and you're thinking, "Okay, I can actually pick this up for you because I have some spare capacity?" So is that all gonna be happening in the same app?
First, we are building Eurowag Office for carriers. That's important to understand. So we need to scale it. We need to build a product our customers will love. Once we build it, it's similar to Amazon. Amazon started as a bookshop, digital one, but a bookshop, but it converted to a marketplace similar to Allegro or Mall in Czechoslovakia, when they allowed also third parties to offer their products and services afterwards, to, to be offered through the marketplace, which is controlled by quality, by business models, and, you know, some kind of protection of the community, of the club, only afterwards, once you have the scale. So yes, we're building the technology, we're building the proposition the way that landing. Yeah, we can have third-party landing companies who can offer it through marketplace.
Fuel, we can have third parties who can offer energy services and energy as our partners. We can have road service partners who can offer road services through the marketplace, but we can have even different providers in the future. Typically, it would be the load providers offering capacities or offering transportation, but we're already thinking, for example, to create a job marketplace. 'Cause just imagine having so many drivers connected, being able even to profile them, and because typically on the market, you have a profile of a driver within a company you are driving for. Just imagine the shift when we have a profile of a driver within his app, his own app. So it doesn't matter for whom he's driving at the moment.
Maybe he was driving 3x or during the three years for three different companies, but we keep all the data about his driving style, where he's driving, everything. It's like a curriculum we can build. So we can help, of course, with the driver shortage, maybe in the future. I don't want to go to rush into too much future now, because we have so much things to do in the next even five years, that to rush something could actually jeopardize that value, which needs to be simple, deliver to the end customer first and test it, and then we can focus on extension. So again, comparable to Amazon. If they would create marketplace in the beginning, would they succeed? Hell, no. They focused to be the best bookshop online at that time.
And so in the presentation where you had the financials of the route, where, where does that come from? Like, who inputs that information into the platform?
You mean the KPIs of the, of the transportation or of what?
Well, no, maybe I just didn't understand correctly, but I saw a route from, let's say, I don't know, Madrid to-
All right
Brussels, and then you were saying that you can already see how much they can make on that route if they take it up.
Oh, yeah, I, I understand. So that's a so-called transport management domain. Usually, that's a part of transport management systems, where you are not managing your fleet, like, you know, like wear and tear, tire pressure, temperature, and all that, but you are really managing the transportation efficiency and planning of the transportation. Every transport usually starts with some order, let's call it transport order. That's kind of contract between the shipper or forwarder and the transportation company. In that document, you have all the details about what you, what you are going to carry, when you should be unloading, when you should be on unloading, and so on and so on. Conditions, payment terms, everything. That's a document which we need to be able to finance the transportation.
Just imagine how simple it would be if you drag and drop that PDF, you know, just with a mouse to the platform or to our office. We extract all the data with OCR. The same we do for tax. We are scanning and digitizing documents and extracting metadata automatically with artificial intelligence already for all the tax returns, tax refunds. Using the same or similar technology, let's extract all the data, so we can even pre-populate the transportation plan. Nobody needs to type anything. We can already say... It was pre-approved for financing, so one click, you have money on your bank account, on our e-wallet type of bank account, and start spending it. That's the source of the data.
If we have it, of course, every time you can type it in, so that's something we will encourage. That let's start using the whiteboard. Let's start instead of having the, you know, writing it on the wall, let's use the digital form. But we also need to improve in how to make it simple, and more simple, and more simple. Maybe not in the first stage of the version we will introduce to the market, but these are our roadmap things to make it even and even more simple. I will just add that the cost side is something what we are calculating. Yeah, so really, Martin was introducing a lot of things, which seems like a no-brainer for you from your perspective, to have numbers under control.
But these type of businesses, sometimes they have a problem to differentiate what is the cash flow, what is the profit. So these things, you know, it probably seems simple, what is the cost for the journey? What is the revenues? What is the total profit? You know, these are having value of gold for them, for many, many of them. So that's essential to our platform, yeah. Right. To help them, really, to guide them, as Martin was mentioning in his slide.
It was a screenshot of basically dashboard of the operator, and he sees it?
Yeah. Absolutely. Yeah. And to extend it with loads data, that's another story. That's the business development with shippers, with forwarders. We are in early stage. We are not even in a stage be as we are with automotives. It's a brand-new industry. It's like somebody mentioned sennder here. We want to partner with them. We don't want to steal the job from them. They, they take the liability during transportation. Do we want that? Absolutely not. We don't want to be liable for transportation, but we want to provide a toolkit as SAP's ERP standard, isn't it? So we want to be the ERP, the SAP for carriers, you know. And then, everybody wants to connect to SAP. Everybody wants to have API with SAP. So why not sennder? Why not the Freight Exchanges? But we need to scale first.
Great. Thank you very much.
Thanks. Thanks. I think we have some hungry people, so we're gonna close it there. Thank you for those who've asked questions online. If we haven't answered them, I will come back to you. If you have any further questions, please feel free to get hold of me. My email address is on the slide, as we see it. At the end of today, I will send some feedback forms to those in the room, and actually, those who are online. Please, if you have two minutes, we would love your feedback. It's always very helpful for me in terms of our communication, so if you wouldn't mind giving us some feedback at the end of the day, it would be great.
Thank you very much again for everyone who's come, as I would love to invite you outside now for some lunch, and as you've got the opportunity now with all our colleagues to continue. All right.
Thank you-
Thank you
for your attention and for coming. Thank you. Thank you.