EQS-News: Compleo Charging Solutions AG: Compleo unveils new strategy as part of quarterly results
EQS-News: Compleo Charging Solutions AG
/ Key word(s): 9 Month figures
Compleo Charging Solutions AG: Compleo unveils new strategy as part of quarterly results
16.11.2022 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
Compleo unveils new strategy as part of quarterly results
Newly formed Board sets course for more competitive Compleo 3.0 | Q3 results confirm revenue and profit outlook for 2022 | Further increased focus on costs and profitability
Dortmund, November 16, 2022 – Compleo Charging Solutions AG ("Compleo"), a leading European full-service provider for charging technologies, today reports on its business development in the first nine months of 2022. According to the report, Compleo was able to maintain the sales level from the previous quarter despite difficult economic conditions and achieved group sales of 80.3 million euros in the first nine months of the financial year. This corresponds to a significant growth of €42.7 million or 114% compared to the same period last year (9M 2022: €37.6 million). Compleo is thus on track to achieve its mid-September adjusted revenue guidance for the 2022 financial year of EUR 105 to 110 million. On a quarterly basis, Group revenue increased by 75% to EUR 28.4 million (Q3 2021: EUR 16.2 million). In the Charging Stations segment, revenue in Q3 2022 was slightly below the previous quarter's level at EUR 20.6 million. The Software segment continued the profitable growth of the previous quarters and generated quarterly revenue of EUR 5.8 million with a strong gross margin of 36.6%.
In addition, Compleo was able to further increase profitability compared to the previous year, despite continued challenging procurement markets. The gross margin increased by 2.6 percentage points to 17.5% (9M 2021: 14.9%). This is due to efficiency gains from the increased sales volume as well as the first positive results from the cost reduction programs initiated during the year. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation adjusted for one-off effects) continued to develop positively in the course of the current financial year. At -5.3 million euros, it is lower in the third quarter of 2022 than in the two previous quarters. After the first nine months, this value amounts to a cumulative -18.5 million euros, which means that Compleo is also on track here to achieve the annual target of an adj. EBITDA of -25 to -30 million euros.
The publication of the quarterly results is the occasion for the newly formed management board consisting of Jörg Lohr (CEO) and Peter Hamela (CFO) to present the strategic realignment of the Compleo Group. In the past months, an in-depth analysis of all products, services, processes and structures has been carried out, the results of which have been incorporated into the new Compleo 3.0 strategy. Essentially, the concept, whose clear focus is on profitability and customer focus, is based on four pillars:
In the future, the product portfolio in the Charging Stations segment, which has grown inorganically, will be significantly sharpened. From the current 15 product families with a total of over 500 product variants, five core products in the power range from 11 to 400 kW will cover around 80% of the usual applications. The focused product range will realise significant efficiency and cost advantages in all operational areas in the future.The customer will be even more at the centre of all business activities in the future. The entire internal value chain, starting with research and development, through production and sales, to after-sales service, will in future be consistently aligned with the specific customer requirements from the various target markets.
In this context, Compleo will in future focus more strongly on its existing core competencies. In the Charging Stations division, these include in particular the development and sale of innovative and holistic charging infrastructure solutions. The industrialised production of wallboxes is to be completely outsourced in the future. The Software segment was successfully carved out from the Group as a separate organisation as of 30 September 2022. The goal is to position this unit independently in the market and to create value for Compleo shareholders with the help of strategic partnerships. The Services segment will focus consistently on manufacturer services in the future. The software segment already has its own service structures. The sub-segment around planning and installation of charging infrastructure will be realigned and focused on managing the project business. The clear focus on the value-creating core activities is also accompanied by organisational streamlining: In addition to the centralisation of German production and administration already announced at the end of September, existing organisational structures will be further optimised and excess capacities reduced. The closure of the two locations in Paderborn and Schlangen at the turn of the year is a first step towards streamlining operational cost structures. In addition, the Executive Board has aligned the subsequent management level to only four Vice Presidents. Further initiatives - also to improve profitability and optimise working capital - are currently being planned.
In the future, Compleo plans to further expand its target markets in Europe. In addition, market entry in the High Power Charging (HPC) segment in North America, the world's largest market for public DC charging infrastructure, is targeted with the help of partners by mid-2024. Compleo is launching a new high-power charger next year, also designed for the profitable North American market. With Comfort Charge, a first customer order for the delivery of 38 HPC chargers was recently reported.
"The last weeks and months have been challenging for the entire organisation and especially for our shareholders," says Jörg Lohr, CEO of Compleo. "However, with our comprehensive Compleo 3.0 strategy, we are confident that we will position ourselves to be significantly more efficient, customer-centric and also competitive in the future. We will consistently look at liquidity, profitability and costs. This is essential for our future economic success. In addition to the large number of operational savings potentials that we have identified, additional external financing to support the operational business processes is also an option that we are taking a closer look at. Our fast-growing and highly profitable software segment can play a decisive role in this - along with other strategic options."
The full quarterly results are available on the company website https://ir.compleo-charging.com/en/ in the "Results" section.
Appendix:
Condensed income statement and statement of comprehensive income as of September 30, 2021 and September 30, 2022
in EURk 9M 2022 9M 2021 Revenues 80,300 37,603 Cost of sales -66,259 -31,989 Gross profit 14,041 5,614 Other income 2,570 359 Selling expense -12,997 -5,392 Research and development expense -19,016 -4,478 General and administrative expense -20,917 -8,520 Earnings before interest and tax (EBIT) -36,319 -12,417 Financial income 1,174 19 Financial expense -484 -201 Earnings before tax (EBT) -35,629 -12,599 Income tax 1,904 -4,773 Result of the period -33,725 -17,372 Items that will not be reclassified to profit or loss: Remeasurement of defined benefit obligations 15,238 Items that may be reclassified to profit or loss: Exchange differences on translation of foreignoperations 273 Other comprehensive income, net of tax 15,511 Total comprehensive income of the period -18,214 -17,372 Total net result of the period is attributable to Owners of Compleo Charging Solutions AG -33,691 -17,368 Non-controlling interest -34 -4 -33,725 -17,372 Total comprehensive income for the period is attributable to Owners of Compleo Charging Solutions AG -18,812 -17,368 Non-controlling interest -32 -4 -18,214 -17,372 Earnings (loss) per share (in EUR) Basic -6.65 -4.68 Diluted -6.65 -4.68
Calculation of adjusted EBITDA
In EURk 9M 2022 9M 2021 Earnings before interest and taxes (EBIT) -36,318 -12,416 Depreciation and amortization -9,947 -2,362 EBITDA -26,821 -10,054 EBITDA margin -33.4 % -26.7 % One-off effects -8,322 -2,340 Adjusted EBITDA -18,499 -7,713 Adjusted EBITDA margin -23.0 % -20.5 %
Consolidated statement of financial position as of September 30, 2022 and December 31, 2021
Assets in EURk September 30, 2022 December 31, 2021 Non-current assets Intangible assets 34,484 19,684 Goodwill 27,612 26,245 Property, plant and equipment 7,835 3,190 Right-of-use assets 4,036 2,863 Other non-current financial assets 24 24 Other non-current assets 218 238 Net defined benefit asset 6,060 - Deferred tax assets 2,682 18 Total non-current assets 82,951 49,262 Current assets Inventories 44,473 21,458 Trade accounts receivable 17,843 7,315 Contract assets 2,364 2,235 Other current financial assets 1,805 1,075 Other current assets 9,054 60,211 Income tax receivables 103 - Cash and cash equivalents 17,669 12,434 Total current assets 93,311 104,728 Total assets 176,262 153,990Equity and liabilities in EURk September 30, 2022 December 31, 2021 Equity Subscribed capital 5,070 5,070 Capital reserves 144,729 144,675 Accumulated other comprehensive income 15,504 -5 Retained earnings -61,665 -27,974 Non-controlling interest -55 -23 Total equity 103,583 121,743 Non-current liabilities Defined benefit obligations and other accrued employee benefits 943 - Other provisions 2,849 1,882 Financial liabilities - non-current 6,338 7,743 Lease liabilities - non-current 2,340 1,684 Other non-current financial liabilities 7,681 5 Deferred tax liabilities 1 2,050 Total non-current liabilities 20,152 13,364 Current liabilities Other provisions 19,905 1,288 Financial liabilities - current 1,828 1,060 Lease liabilities - current 1,828 1,325 Trade accounts payable 12,740 12,305 Contract liabilities 308 3 Other current financial liabilities 8,074 82 Other current liabilities 7,844 2,820 Total current liabilities 52,572 18,883 Total equity and liabilities 176,262 153,990
Consolidated statement of cash flows as of September 30, 2022 and September 30, 2021
In EURk 9M 2022 9M 2021 Result of the period -33,725 -17,372 Amortization of intangible assets 7,049 1,141 Depreciation of property, plant and equipment and right-of-use assets 2,448 1,219 Increase /(decrease) in other non-current provisions -1,742 -346 Increase /(decrease) in other current provisions -3,732 57 Expenses for share-based payments 54 30 Other non-cash expenses /(income) items -20 -726 (Increase) / decrease in inventories -20,075 -7,730 (Increase) / decrease in trade receivables 1,524 -4,421 (Increase) /decrease in other assets 50,855 514 Increase / (decrease) in trade payables -8,615 1,556 Increase /(decrease) in other liabilities 5,631 -1,051 Interest expenses /(income) -690 182 Increase /(decrease) in income tax payables and deferred tax liabilities -2,470 4,327 Income tax (paid) /received - - Net cash flows from operating activities -3,508 -22,620 (Purchase) of intangible assets -2,878 -2,243 (Purchase) of property, plant and equipment -2,581 -1,125 Payment / proceeds for acquisition of subsidiary, net of cash acquired 15,544 -22,814 Payments for acquisition of shareholder loans - - Interest received 1,043 19 Net cash flows used in investing activities 11,128 -26,163 Proceeds from issue of shares - 28,295 Transaction cost for the issue of shares - -911 Repayment of financial liabilities -637 -8,598 Repayment of lease liabilities -1,400 -728 Interest (paid) -348 -201 Net cash flows from financing activities -2,385 23,269 Net increase/decrease in cash and cash equivalents 5,235 -25,338 Cash and cash equivalents at the beginning of the period 12,434 35,736 Cash and cash equivalents at the end of the period 17,669 10,398
About Compleo:Compleo Charging Solutions AG is one of the leading full-service providers of charging technology in Europe. The company supports its business customers with its charging technologies as well as its charging stations, the software of the charging infrastructure. Compleo's offering includes both AC and DC charging stations. DC charging stations from Compleo are the first DC charging stations on the market that comply with calibration regulations. The company is headquartered in Dortmund, Germany. Its customers include Aldi, Allego, Clever, E.ON, EWE Go, Daimler, Siemens and more than 300 municipal utilities in Germany. More info at: www.compleo-charging.com/
Media contact Compleo
Ralf Maushake
Head of Communications & Public Affairs
E-Mail: r.maushake@compleo-cs.de
Telephone: +49 231 534 923 865
IR contact Compleo
Sebastian Grabert, CFA
VP Capital Markets & Corporate Finance
E-Mail: ir@compleo-cs.de
Telephone: +49 231 534 923 874
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1488671 16.11.2022 CET/CEST