Welcome to the presentation of the Q4 for Saptek. My name is Anders Thymbo. I'm the CEO of Saptek.
My name is Kurt Aslam. I am the CFO in Sabtec.
The highlights for the Q4 is that we achieved positive working capital development with a strong balance in the cash by the end of the quarter, the turnover growth was 66% as we reported in early January. Even though we had a lower than expected gross margin due to higher than expected sales of low margin product, we achieved an EBITDA of SEK 11,100,000, which represent 14% of the revenues. The operating cost as a share of revenues has been reduced, then we see that the electrical vehicle markets in Europe was very strong in the Q4. About the technology development, we have been able to keep our plan to launch a new product and also done a lot of software and Service Development and Updates. We also listed the company in the 6th October with a successful share issue and a secondary sales of existing shares.
Now a summary of the key numbers.
Yes. The revenues in Q4 'twenty was NOK 79,000,000 compared to last year, it was SEK 46,300,000. This is a growth of 66%. For 2020, the revenue was DKK219,700,000 compared to DKK156,400,000 last year. This is a growth of 40%.
Our export share was 31.4% in Q4 against 8.9% last year. For the whole year, the export share was 26.2% against 9.3% last year. Gross margin was 36.4% in Q4, against 39% last year. And for 2020, the gross margin was 36 0.8% against 43% last year. The adjusted operating cost was NOK 21 NOK900,000 in Q4 against NOK30 1,000,000 in Q4 'nineteen.
For 2020, the operating cost was NOK 56,800,000 against NOK 43,800,000 last year. The adjusted EBITDA was SEK11,100,000 in Q4 against SEK5,100,000 in last year. For 2020, the adjusted EBITDA is NOK 29,800,000 in 2020 against NOK 23,400,000 last year. The EBITDA margin in percent is 14% in Q4 against 11% and 13.5% in 2020 against 15%. This is due to the lower gross margin last year.
Our available liquidity is NOK 273,200,000,000 in 2020 against 43,400,000 last year.
Going back to the electric vehicle markets, we saw a strong growth, 60% in Europe, in the EU countries, in our part of the world. All the main markets where we operate today has a significant growth. You see the light blue bar, which is Norway, a very strong quarter in Norway, but also Sweden and Denmark is really picking up the number of EVs sold as well as Switzerland. So those four countries are the biggest ones for Saptek as of today. The reason for this development is that we see a larger and a wider assortment of EVs in hitting the market.
So the car manufacturers are launching a lot of new models that fit the market better than the previous quarters. Also, we would like to comment on the supply of lithium ion battery packs is increasing, mainly in China. But also, we need to see new factories coming up to keep up with the demand of these battery packs. And that's also a lot of new factories being set up closer to the consumers in Europe with Renewable Energy as the energy source. Going back to the charging markets, Norway and the Pro system is our biggest revenue generator as of this quarter.
We've seen a significant increase in selling and the sales numbers for this product. So the multifamily homes and the professional buyers in Sweden, Switzerland and Denmark is really on a growth. So our strategy going forward is that we will establish subsidiaries in several countries by the end of this year, we have recruited company managers in U. K. And Germany, which are the 2 biggest EV markets in Europe, and we expect sales to start late 2021 in these markets.
Regarding the Pro product, a Pro installation is a large parking facility where we kind of equipped the parking facility with infrastructure for Saptek charging systems. So we managed to add 878 new Pro installations in the Q4. We have a total of 2,540 Pro Installation in all markets as of today. And just some numbers, we charge electric vehicles with 250,000 kilowatt hours every day as we speak. And the graphics you see on the bottom of this slide is the increase in the energy consumption going through our charging systems.
There are a big market and growth potentials within these Pro installations and we it's the pro charters that fit into this system. So there's a large revenue potential in the already kind of installations that we have today. We sell an automatic payment system for the energy that is it's used in the charging systems. We added 127 new contracts, and the total number of contracts is about 1,000 contracts today. So this is it's easy to pay for the energy that you use as a user of Saptek.
And it makes the whole system more attractive and easy to use. And this is also a service that will be International in the Q3 of this year. Regarding the production, we still produce everything at the West Control. They have decided to expand with 3,800 square meters of new production buildings And also more robotic equipment and recruitments is on its way. So by the end of this year, there will be a significantly higher production capacity as we also have launched a new product for the single family home market now just earlier this week.
About production capacity from 2022, we will we are working on increasing the capacity and it's very high on the agenda for the management of Saptek as we speak. The technology that of Sabtec as we speak. The Technology Development Department has increased in the number of full time employees in the whole of 2020, but also we will add more capacity and competence. Our main focus has been to swift onboarding of the new charger that is pictured on the right hand side of this slide, so that it's very scalable when we ramp up the sales and production in March. We have also been able to enter into an agreement with Basefarm.
We still use Microsoft Azure as the cloud solution, but we are now using the Baseform setup. So we are able now to put new containers of this cloud solution in different countries so that we can scale up going forward. So there is heavy traffic with 64,000,000 messages every day between all the charters and the cloud. So we need a scalable cloud solution going forward. Yes, of course, the development of the new charter has been a focus.
So we have been able to finalized everything with this charger and we have started selling now this week, but the production and the deliveries will take place from March. So there are a lot of software and service development going on to improve the user using processes and the use of processes of our charging system, both for the electricians, but also for the end users. And we have also started new hardware development for launch in 2022. Regarding the outlook, we see we've told the market that we aim to achieve 35% to 50% annual growth. What we see is that the growth in EV demand is so high and the speed of development in technology And the business models in the market is changing so fast so that we are not able to be precise going forward in forward looking statements.
So what we have decided is to give a quarterly update to the market and provide information so that you can understand the development and the growth in our company. That being said, we see that the growth perspectives is very good and that we are able to have a growth at least on the level as the market, which was like we told you earlier in Europe 60%. So we will release these growth and revenue numbers in by the end of each quarter going forward. So now we're going over to the Q and A sessions. So if you have any questions or comments, please provide them.
Yes, the question is, are these figures in line with the CEO communication from early January? So we like I said earlier, we guided on 35% to 50% growth on an annual basis. So the growth in 2020 on
the Q4 was 66%? Yes, and 40% for the whole year. And our guiding earlier was going up from 15% to 20%, and 25%, then 30% and the last 35% and the finally, it's got 40%. Yes. And going forward, we
you can change the question, yeah. We will achieve the 50% we said earlier. That's we are comfortable with achieving that number and even higher growth rates going forward. So the question is, what is the investment on your balance sheet?
This is R and D on our products. So that's the main thing in our balance. How much is the cost of share option for Q4 and for 2020, the cost for the share option is 7.2 million as a salary benefit due to the higher market share price from IPO and to the end of 2020. Why have you stopped reporting pro and home sales? It's I'm not sure what you mean by if you mean the guiding and the number of charters it's because the very strong growth in the market and the strong growth in the sales from Saptek have done its challenges to make the right guiding.
So therefore, we prefer to give you the numbers shortly after the quarter is finished.
We can take that as an input to provide numbers revenue numbers on each product. So that's a good input to us. So what market is next to target is a question. We get a lot of incoming calls from different parts of the world. So sometimes we can establish sales in the new country quite fast if we have a partner that is motivated and have the resources to succeed.
We are focusing now on UK and Germany. That's the kind of active job that we are have decided to be one of the major players in these two countries. So we've been able to recruit competent people. And the business plan is under development as we speak. So it's those two markets are the main focus.
But we've been achieved, like in Denmark, quite high growth in the 4th quarter. So it's a lot of incoming kind of questions and calls to also go into new markets. So can you say anything about the expected gross margin
on the new charger per unit? Yes, it will be a much stronger gross margin on new product, staying at home shelter. So we expect the gross margin to be up from 40%, and maybe it will be about 45% on our new charter.
Is your revenue higher than expected? Also, is earnings better than expected? I can say that the revenues for 2020 was altogether higher than expected. The earnings is like we expected. So we have a we had a tight cost control in 2020.
So it's the Q2 of 2020 was weak due to COVID-nineteen, but the markets recovered quite well in the Q3. And then in the Q4, it was a steep growth. So, yes, I would say that we perform better than expected in the total of 2020, at least when we look at the situation in the Q2. Ramel, do you have more? That's right.
Are you seeing any issues within the supply chain now or for 1st and second quarter that could affect SABTECH. What we can say is that the COVID-nineteen has kind of created a lot of issues in the component market. So we use a lot of source components for the production of our charters in the world market. So due to any some close downs of factories and also the higher demand in the 3rd Q4 for consumer goods and people at home shopping a lot of new stuff, not going to holidays. They're we're spending money on products.
And we see that there is a risk for not being able to kind of source enough components. So that's the main risk we see. We have not been kind of experienced this problem as a major problem for us. We've been able to deliver all the time, but we also recruited and increased the capacity on supply chain management with a new supply chain manager starting in the company in the Q2 of this year. So also how raw material could possible affect your gross margins?
I would say the pricing on the components is not an issue. We have a kind of a fixed agreement with the West Control regarding exchange rates. So the exchange rate can alter the gross margin a little bit. But I feel that we are quite secure on achieving a gross margin above 40% with the new product and the pro product as we phase out the existing SABTECH home. And to avoid this, we have already secured the production for the next 12 months.
Question. Has the sales momentum from the end of the Q4 continued into the New
Year. I can answer on that. You can answer is yes.
Very good answer. Kjot, yes, it's a strong market. Your exports have increased, but the countries you export to are still early in the EUV adoption. Do you see your sells as first movers or at least early movers in these markets. First of all, I would say for the Pro offering, we need to see a certain degree of EV adoption in a country or in a city to create a demand for the Pro system.
Because when you have 4% or 5% of people using a building or living in a building, there will be a pressure to establish charging systems for that parking facility. So you need to have sales for some months or maybe years to achieve that EV adoption. With a new charger, it's more like to single family home. So the decision process is quite easy. It's just the single family has bought an EV, okay, let's buy a charger.
It's a very non complex decision process. So, and then the market for single family home charging is more competitive and price competitive than the multifamily homes charging. So I would say we are competitive in both markets, But the single family home offering we have launched, this will probably be higher in volumes, quite fast compared to the Pro. So there are several competitors in each market. It's not that we are alone, but we have a brand, we have technology and we have the resources to become one of the dominant players in these markets.
Yeah, what plans does Sattvic have for the U. S. North American market? We need to certify the products we have for the U. S.
Market. One example is that they will have the core, the charging cable attached to the charger. So we have a plug in in both the car and the charger today in our offering. So we need to do some changes. And I would say that Germany and UK are high on the agenda for us.
U. S, especially California and the Bay Area, we've been there. We know this market is big. So I would say 2022 will be the right time to travel to the U. S.
And either we will establish a subsidiary or make an agreement with a partner. Is increase in capital for the company raised by selling additional shares of stock necessary to finance additional company growth? I would say that as of today, we generate cash when we grow organically. So to grow without acquiring companies, we will not need new capital. If we bought a company or several companies, we will probably issue stock in such a transaction or use cash, as of today, we have NOK 270,000,000 in our bank.
So depending on the opportunities in the M and A space, but we focus we analyze companies. We have discussions, but we are not kind of negotiating with any of these potential acquisitions as of today, we focus a lot on the investments in products and organization to grow organically in these countries we mentioned. In Denmark, you have partnered up with Spire. How do you support their growth in Denmark to become market leader? Well, we are able to deliver chargers and charging systems with very low delivery times, we provide training.
We are available for them to use the resources in Saptek to gain the growth in Denmark. Now we also have another product, Saptek Go that we launched to provide them with a new product and system for the multifamily homes sorry, the single family buildings. So regarding Denmark, we have a few agreements, but we will be able to also establish a subsidiary in Denmark when the timing is right for that. It's close to Norway and we see that the EV adoption is picking up. So today, we have Sperry, which is a very good partner, but they don't have any exclusivity.
It's more like a tight and close partner to Saptek, and we will also expand with more partners or subsidiaries in Denmark. What is your growth forecast in revenue for 2021? That going back to my earlier points regarding this question, we don't know it's so hard for us to say what the revenues will be. What I can say is that we will exceed 50% growth and it's just a matter of how much more than 50%. So we really look forward to a very exciting 2021 with the new product, with the new markets being on board.
How big effect has COVID-nineteen had on SABTECH? I would say that we had some temporary kind of layoffs in a few months. We kind of controlled the cost base of the company in the Q2 and then kind of reversed everything in the Q3 when we saw the markets picking up. So I think that we didn't lose any revenues. We saved some costs.
We were able to deliver all the time during the worst part of the COVID. But when we saw Norway closing down again in kind of the 1st or second week of January, we saw kind of a small dip downwards on the sales, but it's picking up again when people kind of get more insight into their own situation and also how everything is working out in the world regarding COVID. So it's an insecurity for the company, But I will say that we see high growth numbers, even though we have more types of viruses and all the kind of negative information regarding the COVID-nineteen situation. So, yeah. Yes, Swedish question.
Do you have any plans to deliver your chargers through the wholesalers? Or do you sell directly to the installers? The kind of positive thing about delivering directly to the installers it's the that we can keep a larger margin. And we have developed a charger that is packed with technology. And you just need the electricity out to the parking bay and then hook up the charger.
So you don't need a lot parts. We have done all the packaging of what you need and it's cloud connected. So we will fix the software if we need to do that or update the firmware. So that's the main reason. It's easy for the store just to get the charters from our producer.
So as long as the installers can be comfortable with this situation. We will keep it that way. And it's we are able to scale a lot of electricians and installers, and we have a robust IT ordering system and etcetera and a high stock of charters. So we will keep it this way. This is a way that we disrupt the value chain, and we feel that this has been an important choice.
So we will we keep an eye on everything that we have set up with our business, but we don't see any good reason to change this as we speak. Yes, the last question, I think, we could probably continue a lot more and please a follow-up with a contact directly to us. So we will try to answer if you have more. So one question. Good morning.
Is it possible to buy the Saptek wallboxes in Germany right now, we don't have any installers, electricians, as we speak, that we have an agreement with. So I would say no. We have 3 installations of the ProCharting system in Munich working. So we're testing. It works quite well.
It scales up. And so there are no there are it's only to establish the organization and the partnerships that we need. And we will do that the first half of this year And in the 3rd or Q4, you will be able to buy the Saptek wall boxes in Germany. So I think we should sum up, summarize and say thank you for joining and please get back to us with questions and wish you a very nice day. Thank you very much.
Thank you.