2nd quarter presentation for Sabtec. My name is Anders Thyngberg. I'm the CEO of Sabtec.
My name is Kurt Oestan. I am CFO in Sabtec.
So before we go into the numbers, we would like to just have a give an overview of the company as it looks by the end of the Q2. We have installed in total 70,000 chargers. We have a total of 6 sales companies in Europe. And if you include the order backlog by the end of 2nd quarter, we have a revenue growth of 100%. In the markets where we operate, we are going for double digit market share in Norway is 50%.
And in all the 6 countries where we operate, we are going for the same and at least the double digit market share. As we have installed a lot of pro systems previously, we have prepared a lot of parking base, 250,000 parking base for future revenues. This is a more secure revenue stream in the future for Sabtec. We are about 65 employees in the company. The highlights for the 2nd quarter, Strong revenue growth, 95 percent.
Total purchase orders, 150% growth. The backlog by the end of the quarter was NOK 26,000,000 represented an estimated EBITDA of NOK 10,000,000 sliding into the 3rd quarter. We have improved the gross margin from the Q1 as planned, and we see a favorable macro conditions in the EV market. All the markets where we operate have a strong EV growth and EV adoption. And the export share is increasing quarter by quarter.
We have all in all during the quarter increased the competitiveness of our product range. So that is the highlights for the quarter for the company. And we would now like to go into the Numbers?
Yes. The revenue in the second quarter was SEK 92,100,000. This is an increase of 95% from the Q2 last year. Addition to this, We had a backlog of sales order for our Satek Pro in the end of the second quarter. And the total sales order for the 2nd quarter was then SEK 118,000,000 and this is an increase of 150% from the 2nd quarter last year.
The export share also continued to increase and was 41% at the 2nd quarter. This is up from 24% last year. The gross margin was 35.8%. This is slightly down from the Q2 last year, But this is as expected due to the production ramp up of our new product Sato Go and the introduction of new version of Sabtec Pro. Still, we managed to increase the gross margin from the Q1 by 2.5% and we expect the gross margin to increase also in the Q3 and We expect to reach our goal for 40% gross margin at the end of the year.
The adjusted EBITDA was SEK 11,700,000. This is up from SEK 9,200,000 and they give us EBITDA margin of 12.8%. If you add If we have managed to deliver the backlog of Sabtec Pro, the EBITDA would have been increased by SEK 10,000,000. We have still a very strong available liquidity and this was SEK 286,000,000 at the end of the second quarter.
Very good. The EV markets, as you can see on the right hand side in the Nordic countries and Switzerland, is very strong in the Q2. As you can see, Norway and Sweden, especially, has a very strong absolute numbers in new EV car sales. And also, we see Denmark increase month by month. And of course, Switzerland is also strong, but not so strong if you compare it to the Nordic countries.
We expect this adoption and the shift from fossil fuel cars to electrified cars to continue in all these markets going forward. So the markets where we operate is we see a very strong growth in the EV adoption. For UK and Germany, where we have established companies to sales companies with a very strong local management and top industry professionals. You can see on the right hand side, especially Germany selling 150,000 plus cars being electric in the Q2. So this surpassing Norway, all other markets when you talk about absolute numbers.
So Germany is definitely the most interesting market for charging and electric vehicles in Europe going forward. Mainly, it's due to the domestic car producers. They are doing the shift from the old fossil fuel cars to new electric models. I would say also U. K.
Is growing quite fast. We will start selling in the U. K. Thruster than we do in Germany. So we have 5 top industry professionals in the U.
K. Wrapping up. We are training the electricians in the U. K. At the moment, And we expect sales to be picking up in the end of this year, maybe a little bit later in Germany since we prepare We have kind of a more in-depth preparing for sales in Germany, the requirements around products and being compliant with all the laws and regulations is a little bit more strict in Germany.
But for the next year, we expect quite high sales in Germany. On the right hand side, you can see the export sales as a percentage of the revenues has grown from 20% in the Q1 2020 to 41% in the Q2 this year. As we have mentioned, it's Switzerland and Sweden, Denmark and Iceland are the largest countries, in addition to Norway, of course. We are able to get into new markets with the PRO system quite fast, but it takes 6 to 9 months before we start until we see the revenues coming in. And we kind of go for the most interesting EV markets in Europe, not the smaller ones.
And it's the bigger countries now increasing the number of EVs in Europe. So Spain and Italy is lagging a little bit behind, but France, Germany and the U. K. Is really pushing forward with high numbers of electric vehicles. In the quarter, we installed over 1,000 Sabtec Pro Systems.
This is On the slide, you can see it's 190% growth from the Q2 last year, not the Q1 last year, where we had 4.93 installations. So a typical pro installation is, say, 5% to 10% of the parking base are equipped with a PRO charger and the rest is a future revenue potential for the company. This is also something that we see working at the moment. As we mentioned, we have an order backlog. So the delivery times is a little bit higher at the moment.
It's about 4 to 6 weeks now. For the Pro, Normally, it's 2 days. So we see the order intake is still increasing a lot. So the model really works. So it's not easy it's not possible to buy another Sabtec charger or another brand to put into a Sabtec Pro system.
So this is very important to understand that it's a professional system. It's large Complexes and buildings being equipped with Sabtec infrastructure, securing the revenues for the company going forward. We increased the number of contracts for the automatic payment. Charge 365 is the company that we own 100 percent that provides this service. Altogether, it's about 1,000 contracts, It's multifamily homes, office buildings, where all the users can automatically settle the bill in this system.
It's really a value adding service for large complexes to kind of settle the bill for all the different charging sessions in the building. So this is an automatic service. We have not Being very active in selling this service is more like incoming orders. And we need to kind of build the back and even better before we internationalize this service. And this is what we are doing at the moment.
So the number of active users is about 20,000. Yes.
Yes. During the Q2, we have our development focus has been on implementation and production ramp up of the Saptek Go. We have also in the quarter start production of the new version of Sabtec Pro and the Production of ramp up the new Pro version was slightly delayed mainly due to challenges in sourcing of components in the Q2. And we have a production stop for 3 weeks for Saptek Go. Saptek has solved this challenge by placing long term orders with our software and production started again late June and is now on track.
Software technology have continued development and implemented various software updates and improvements. The focus have been on the Sabtec portal or cloud solution and the back end system and the front end system as well as the customer facing apps. So as a summary, the production range is now more compatible. To handle the challenge in the components market, we have placed orders to secure a very Strong revenue growth in the 2022. We expect to build the stock in the Q4 and be back on the delivery times for just a few days.
During the first half of this year, we have increased the number of staff substantially. It's about 65 employees in the company by the end of the second quarter. About half of them is in The head office in Stavanger in Oslo. And the rest is in our subsidiaries in 6 different countries. So it's very important to kind of be able to recruit the top people, and we are able to do that.
The brand, the Sabtec brand attract the talents in the industry. And that's also something that we see when we have open positions and recruit people. So on the right hand side, you can see the EV sales for the different countries in Europe. Of course, Norway with 83% plug in or fully electric cars in the first half. So just a few percentages is left for Fossil fuel car sales.
In Iceland, it's about 55%, in Sweden, about 40%. And the rest of Europe, the Continental Europe and UK is about 20% and increasing. So we will see a significant number of cars that are electrified being sold in these larger countries. And that's the main task for Sabtec to gain a foothold and be there with the best people. And I think we are improving, and we have Very, very motivated and competent staff working for Sabtec in the countries where we are about to establish business.
As to support our staff, we have implemented the Bamboo HR system in the second quarter. This is kind of the best system for companies like Sabtec. And it's built to build a kind of a career for all these people is very, very high on the agenda for the management of Sabtec. Regarding the future, it's like we have told you in this presentation, it's strong growth in the markets where we operate. We expect the growth to continue due to the government push for lower emissions, the new electric car models and also falling battery pack prices.
Regarding the batteries, it's a need for more battery factories in Europe and those are being drawn or built at the moment. And that is a very important part of the EV industry to have enough efficient batteries. People would like to charge at home. So if they have a possibility to establish a charging point at home, they will do that. And in most countries, it varies.
But most people have access to a parking bay close to where they live. So that is if they have that, they will establish a charging point to charge most conveniently and also with the lowest electricity prices. So to sum up, We have a European strategy and we are about to implement this strategy. It means that we will grow, like we have said before, 70% plus in revenues annually for the next 3 years. And it's the main markets that we have discussed in this presentation is where we are going to collect our revenues.
So this is the final kind of slide that we put out. We would like to have Questions, if you have any? And we have some people helping us. So if you have any questions.
It just popped up and disappeared again.
Just ask them.
Just read them for us.
Okay. The question is, can you elaborate how you will solve the component shortage? Yes. First of all, the shortage that we experienced was just one component. It was a new component designed for the new Procharger.
So we have secured the components for large production going forward. So we don't see any large risk in this market at the moment. And it's a 1st come, 1st serve market. So the relations between or in the value chain is that if you have secured order for a long time, you will get the quantities before other players. So I think placing orders For the whole of 2022, which is a large revenue growth for Sabtec, what we have planned.
So we have placed these orders and our supplier have placed orders at the component suppliers. That's the best way we can fix it. And I think we will see a kind of shift by the end of the year because there are kind of a panic feeling in this market. So a lot of players, they are placing more or higher orders to try to get maybe half of the quantities. And when you have the supply coming back again, it will be a reduction in the procurement, in the volumes.
So it will be kind of more available components by the end of the year. But I have to say also that If you have a factory in Malaysia and you have to wash down all the equipment between each shift and all of the workers has to be 1 or 2 meters in distance, you can only produce kind of less volumes and the COVID-nineteen will influence the efficiency in the production of components, but we see the improvements kind of month by month. We don't have any problems with this at the moment. The gross margin in the second half, the question is about what we think about that.
That will increase, as we mentioned. We see an increase already and will continue to increase and may expect to reach our goals of 40% gross margin by the end of the year. So we are very optimistic about the development of the gross margin.
So the problems we had with the component like we discussed just a few minutes ago, it was because we have a new design on the pro charger, which make it more competitive. So the outcome is very positive when it comes to competitiveness on that charger. So We are sure that the we see that the gross margins is picking up and should be in the low 40s by the end of the year and next year should be around 40% as we see it. The question is how many new coworkers are you expecting to employ in order to keep up with growth? That's a very good question.
We believe like for instance, in Sweden, It's a company that really is about to be the market leader for multifamily home system, the larger charging systems. There are about 5 people now. I think they will grow to 7, 10 people in 12 months' time. But then the revenues will be almost on the level as Norway has been historically. So the scalability on the subsidiary level, the sales company level is substantial.
So we can collect a lot of revenues, sell a lot of chargers. Since the system is so stable, we can add on a lot of chargers without adding more staff. And the electricians, they are the kind of voice and the selling department of Sabtec in the market. So we train the electricians to be out there and build a business model of Sabtec in the whole country. That means it's the same model that we have done in Norway.
But we will add on some more management to be able to manage the whole company. We will also have some more support functions like, For instance, supply chain management will be more people. But we are also looking at systems all the time trying to scale everything we do. So if you look at competitors of this company, it's maybe 200 plus, 400 plus employees. What we are trying to do is to build scalability, have systems and always offer the best Careers for our people without being too conservative when it comes to growth.
But we see that growing more than, say, 100%, 150%. We have to add on kind of overhead and a number of staff that might be a little bit chaotic. So I think that going forward, maybe if you can have any guess on what number of employees in Tolman's time?
Yes. We will increase the employees about 50% the next 12 months and and most of them will come in the subsidiary outside Norway in the sales team.
Scalability is the keyword. Can we give up the revenue guidance for 2021? Seems that you will beat your 70% goal. That's a question and kind of a meaning. You want to take that one?
We will beat the 70% plus. That's our best guess today.
Yes, I think that we operate in high growth markets. And But it's very hard to say the exact guidance for you. But we will give a trading update each by the end of each quarter. So when the quarter is finalized, we will give you an update on the revenues. You know the level of the gross margin And then you can do the calculations yourself.
And then we have the quarterly result presentations. And if you have if we see a big differ from what we have said, like 70%, we will have to inform you and we will do that. So I think that 70% plus is the best guess at the moment. And we will do our best to kind of make it a plus plus Can you tell how much CapEx you are planning to spend over the next 3 years to make your growth targets? Will you need to raise equity during this period?
We don't need to raise equity to get the organic growth that we are planning for. So we are building cash when we are growing. So the organic growth, we don't need any more equity.
For this year, we expense all the costs that we have related to the growth in our subsidiaries. So the only thing we capitalize is the development projects, the technology projects. So we will be profitable even though we expense everything. So we have today a lot of for people in the payroll that is without creating revenues. So I think it's a solid model going forward.
We will raise equity if we need it for more acquisition purposes. We are looking at larger markets outside of Europe. And in relation to this, it might be so that we will grow with acquisitions. And that will be done preferably with equity. We are able also to use other resources of financial like loans, etcetera, and bonds.
But I think with the model we have now, it will be an organic Growth story without any dilution. And if we need more equity, it will be in relation to larger projects going into the U. S. Or acquire a large company. We have the funding for smaller acquisitions as we speak.
But the large ones have to be financed, of course, if we need more money to do that. So when will the sales in Germany start at this most important market? I would say the Q1 of next year. And we are developing and working on being compliant with the calibration laws in Germany. But of course, the market is there today for the single family home products.
So this decision process for buying a charter, if you live in a single family home, is very easy. You just buy it and install it. In a larger complex, you will have to go through a longer process and it has to be quite a lot of electric vehicles in the building before you can get the decision. And our experience is that 4%, 5% of all the cars in the parking area, if they are in need of charging, then this market for kind of system charging start. So I think that for the Pro, the big market in Germany has not started yet.
So we are not late in that respect. Regarding the single family home product, the Sabtec Go that we offer, we will start selling by the end of this year and increasing month by month in 2022. When we are in compliance with the Sabtec Pro, we will build the solid customer base a little bit more slowly, but also the pricing is higher the margin is higher in that market. And that is our home turf, to say it directly. So Yeah.
Yeah, Saptek's Strategy to grow abroad, I mean, we have covered that. It's established subsidiaries, our own employees, trained electricians, build the distribution channels, have containers for the portal, the cloud solution, so that it will be scalable technically with a lot of charges. So it's the same story as we've done in Norway. And the single family home market that we also talked about is somewhat different. So we have to have distribution channels to get the volumes that is in that market.
So it's only a fraction of the revenues for the Sabtec Go from electricians. So maybe 20%, 30%. And the rest is electricity companies and other retailers. So we are building distribution for both of these products abroad. Yes, the time is 9.
So I think we will have a few questions more. Then we finalize and you can follow-up directly with us on e mail or however you like. So one of the questions here now, what is the expected revenue from Norwalt in 2021. It will be about €10,000,000 The gross Revenues for Norwalt in this year. And it's 100% growth company with a very high profitability margin.
And it's the market leader for large charging systems in Switzerland. So it's a very, very bright future for that company. And we are going to Switzerland now in September to even kind of developed more kind of even higher sales strategies together with partners and together with this company. Yes, question here. What is the status of the large Sabtec GO agreement published late March.
Which partner is it? And when will it be published? We are this is an energy company. And we will go out in the market when this is when we are selling together with them. So it's kind of integrating our system, the API from our system into the service that this company is offering in the market.
So this is an online energy retailer that is expanding in Europe. So to make the launch successful, we would not like to just talk about names to make it a success for the company. So this will be released when we have integrated and everything is okay. So it will happen in the Q3. Yes.
So we can take maybe one last question before we Finalize, if there is any. What's the next country you will try to establish in? Yes. There are opportunities in Europe. So we have dealerships in the smaller countries in not where we see a great potential.
We have our own people, our own setup. When there is a kind of an early phase or a small country, we will use the dealership model. In Iceland, for instance, we have a very good dealer handling Sabtec in Iceland. Talking about a new big market with us, our own people, I think that we will do the research for the U. S.
Market and make a plan to go to the U. S. Since they really need our systems And they have quite high expectation when it comes to electric vehicles the next 10 years. And it's a large country. So I think that the U.
S. Market will be researched, and we will do some initial kind of actions to for the U. S. Market. The Chinese market is even bigger than the U.
S. When it comes to electric vehicles, but we will not go that direction after Europe. So and of course, it will be some European countries being researched and we will sell chargers in, I mean, Finland. We have a dealership and other countries in
Okay. It depends on the EV adoption in the different countries. So now we have established subsidiary in the big countries like France and Germany and U. K. And big countries like Italy and Spain is very early with the EV adoption.
So we will come back to that. Yes.
Okay. I think we should wrap up. Thank you for all for listening. And We will get back to you with information for an update by the end of the Q3. And Before this, if we have any stock announcements.
Thank you all for listening, being here. And please do not hesitate to contact us if you have further questions. Thank you all. Thank you.