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As I was beginning to prepare for the
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meeting. I was wondering how to present
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one year of work in about fifteen
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twenty minutes. I think we have tried
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to play some tricks with powerpoint to
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achieve that we will see how we go
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there most of you would remember at
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this time around this time last year we
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presented the picture to you off in all
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house I'm not going to do that anymore.
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This is the term encore the work is in
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progress in rebuilding your great
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company and I'm pleased to be part of
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the Germany then finished we think it
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is and of twenty seventeen to twenty
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eighteen B will have an efficient more
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than comfortable hole on and efficient
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profitable company that is this
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relation which is what keeps all of us
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here in the management team and the
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board working every day every single
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day every single out of the day if if I
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can say so last year I presented four
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pillars of our growth strategy you
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recall that I'm pleased to say that two
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of them are complete. We mentioned to
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you that we will expand the portfolio
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of ourselves silly you electro
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chemistry from only fall let him
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tightly dockside to also include high
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energy density cells. We successfully
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design launched and produce what type
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of cells L teal for all application.
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GNNC stands for graphite and then see
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for high energy density applications
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this is complete. So is the completion
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of our systems you remember the picture
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represent the last year do you it is
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electro chemistry sell it goes into a
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mechanical housing that goes with
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electronics and software under what is
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called Betty management system software
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your company thanks to you support it
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was not possible without investment we
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made to acquisitions last year thanks
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you support your company has the most
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complete battery based energy storage
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system in short BSS that is done then
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the continued hard work in making this
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company commercial for the sake of
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memory was so we need in twenty
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fourteen June when I joined the company
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we did not have a single commercial
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order we do not have a single
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commercial or the you know stationary
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and mobility business Z roll okay last
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year we delivered fight make a lot of
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us. And this year we are planning to
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deliver more than thirty make a lot of
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us. So the company has made a lot of
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progress in the commercialisation but I
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must say the a probably is what sixty
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percent of the way we are not perfect B
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and not yet fully commotion as our like
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it to be and a lot of work needs to be
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still done to stabilise the company
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from refunding perspective nothing is
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gonna happen without a stable funding.
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I'm the first one to say and recognise
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and thank all of you in the room from
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the small time very stable shareholders
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like so mister and once Monroe and all
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very see. K followed by Scott and
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Robert will also members of our board
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recharge followed by mister larvae here
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mister lobby from logic started like it
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and indeed most recently these and
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company represented by adam side here
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all of you have immensely contributed
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in making the company's table from what
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it was very difficult financial
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situation back in June twenty fourteen
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really have twenty fourteen on book on
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Bridget once just to piss elderly and
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hope one day will be better. I can't be
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more be so if you like frank about it.
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But if you move from that and compete
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generally twenty fifteen to twenty
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fourth may twenty sixteen your company
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has moved move forward very very
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significantly. I must say I still the
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need to have enough growth capital to
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me the potential of this being made the
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potential of our company in the market
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which is going very very fast. So a lot
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of hard work still to be done in
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funding but let's just talk about in
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pro probably in one slide what is the
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Germany we as a company your company
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went to last year. So in twenty
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fourteen or of the revenue was from
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traditional business with traditional
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does not mean that it is primary sell
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reselling our distribution business. E
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D.s building small customised special
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battery systems for a portable business
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or love the revenue except the client
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many was that business then good news
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bad news at that time that used to be
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good news we had the top class lithium
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tight knit oxide with more than on the
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pigeons. And a big factory in Germany
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sitting without orders okay that is how
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we started the journey of last eighteen
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months as already mentioned the added a
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second sell for high energy density
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application then we moved on to do
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different acquisition taking IP lights
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from eighty a stake in germany. And
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acquisition of the triangle on company
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in Belgium be completed overall for by
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having them ordeal the mechanical an
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electronics housing if you will and the
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software battery management system
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software that was between July and
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August twenty fifteen then we made a
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decision in the company with the
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support of the board that we able to
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raise or desperation we will not talk
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about just system we'll talk about
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solution. And to do solution delivery
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you need integration capability need
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engineering capability and the first
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one to say I I did last year almost
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forty people four zero. We started the
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year twenty fifteen I don't hundred and
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ten people we entered the other more
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than hundred fifty people in putting
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acquisition of trying to on I can also
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say twenty out of that forty people are
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ingenious okay it is an expense you
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supported and you are seeing the
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results of it you will see the results
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of that so made that what happens with
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the result okay with that we said okay
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we will go to the market that
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opportunities are we announced that
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each transport electrification of mass
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transportation system was the first
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major when we announced in April twenty
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fifteen. And how was that done we
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integrated all are battery management
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system software with electric die drive
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train all train from the other partner
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infill and call these it all this rain
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is world's largest electric very being
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built in Denmark in Europe that's the
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proof of the system integration
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capability we built in house then we
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moved on for the proof we say look at
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the big market is utilities and off
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great. So utility then I say utility it
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is electricity market from generation
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transmission distribution how do you
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put stories with that how do you build
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independent electricity network also
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call micro grades. And what did we do
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in this space this is what we did
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forced we want the project goes
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yourself in large part thanks to the
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financial support in the project from
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recharge. We want the project and I
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will be on the car I share this with
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the N generally I'll say it again. We
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only what the project battery school on
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time before December thirty first
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twenty fifty we produced finally make
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our towers in less than three months
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what use build that either okay so if
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somebody says can you use thirty
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megabyte that was absolutely absolutely
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be approved one in the last month of
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last year that we can reach that level.
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And equality ons what was that I was
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not trying to hide anything yeah
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"'cause" the proud moment okay for the
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proof off our integration capability
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all software capability. We won the
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largest energy storage project and
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always in the work okay in Ontario
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canada. And this time we integrated
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there'll a fade from this type of sell
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them ordeal back management systems of
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it and also all or conversion systems
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or conversion systems so that means
00:09:55
inverters and switch gears something
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which converts. DC current. DC output
00:10:01
of a battery into a C or what so
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complete integration being represented
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at this point now that sixty percent of
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the global project which is forty five
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million US dollars sixty percent using
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direct local is scope. And we are doing
00:10:20
this project as let me introduce the
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word EPC that stance is too small for
00:10:25
you to read that stands for engineering
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procurement and construction of the
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project engineering procurement and
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construction of the project. So we are
00:10:36
the global in charge company to
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complete the project up until it is
00:10:41
accepted by the user up until it is in
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full operation. So this is the company
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which started here okay and little bit
00:10:52
here move all the way up to this point
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in the space of fifteen to eighteen
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months tops that's the journey we have
00:11:01
B and we are not satisfied. We never
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will be if you're satisfied you become
00:11:07
complacent. We are all this aspirations
00:11:10
are bigger than this. So what do you
00:11:12
want to do next next what you want to
00:11:15
do is go back to what was called
00:11:17
traditional business find new
00:11:19
applications and there is plenty of
00:11:22
opportunity let me take a minute and
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speak about it. We will re name all
00:11:27
speciality battery business unit as
00:11:29
commercial and industrial battery
00:11:31
systems our number one objective in
00:11:34
this business is to replace legacy
00:11:38
batteries which are for industrial
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applications PL how many percentage of
00:11:43
the total install base will be still it
00:11:45
is it ninety five oh so the fact of the
00:11:59
matter is no much how how much people
00:12:01
talk about all other technology
00:12:03
including lithium batteries more than
00:12:05
ninety percent of installation of
00:12:06
batteries for industrial applications
00:12:09
is to legacy. That's a tremendous
00:12:11
opportunity. That's what you're going
00:12:13
after and we look for new applications
00:12:16
streetlight solar streetlight is not
00:12:18
new what is new ins with the project
00:12:22
element in saudi Arabia is this time it
00:12:24
as a let him tightly batteries inside
00:12:26
that is new you don't need to take the
00:12:30
ground and put the battery in the
00:12:32
ground and change every three months
00:12:33
six months you put this badly you want
00:12:35
for ten years past the difference
00:12:38
that's a break in technology. So that
00:12:40
is that is how we are focused on
00:12:43
different markets. I will captured
00:12:45
again the market in a second. But let
00:12:48
me speak about our inspirations
00:12:49
relatively next we don't want to stop
00:12:52
here we want to become the solution
00:12:55
provider for energy storage systems
00:12:58
worldwide our customer should get help
00:13:01
from others how do you plan an asset
00:13:05
how do you build a stories project. And
00:13:08
hopefully select look archie to build
00:13:11
the project may put it into operation
00:13:14
as an EPC contractor. And then help
00:13:18
also help to men is that project for
00:13:20
ten fifteen twenty twenty five years
00:13:23
okay that is what we want to achieve
00:13:27
the are this for here. And we will more
00:13:31
more into what is called acid planning
00:13:33
and management software that is the
00:13:36
full picture of that we want to be as a
00:13:39
solution providers we are more than
00:13:42
three quarters in the Germany from
00:13:44
completing the solutions. But I think
00:13:47
the next quarter will not be that
00:13:48
difficult and I would say it's easy
00:13:51
because the approval in with reference
00:13:53
project that we can do it. Let's switch
00:13:58
to this year that was twenty fifteen at
00:14:01
the end of my presentation you will
00:14:02
have an opportunity to ask questions to
00:14:04
offer me and my colleagues you have but
00:14:07
I know if you have questions please
00:14:09
just know on you know might not in a
00:14:10
piece of paper will handle that let's
00:14:13
move to the present and future the
00:14:15
present is we and also on twenty first
00:14:18
January this year that these are all
00:14:22
high objectives. And I must say be all
00:14:25
still on track to deliver that with all
00:14:28
the risk I'm going to speak about first
00:14:31
and foremost we said kind of the
00:14:33
command the backlog then you leave this
00:14:37
year twenty sixteen will be seventy
00:14:39
five meg hours okay we are confident
00:14:42
that that will be the case or more
00:14:44
doubling the revenue I could not say
00:14:48
what the double that any means because
00:14:50
the results were not announced in
00:14:51
generally know that these thirty five
00:14:53
thirty six million that's what doubling
00:14:56
that everything is one twenty fifty
00:14:58
twenty percent production cost
00:15:01
reduction as a shareholder how do you
00:15:04
measure that you will measure by seeing
00:15:06
and improve gross margin of the
00:15:08
company. And we will at aiming to
00:15:11
Delaware at least fifteen percent to
00:15:12
twenty percent gross margin in the
00:15:14
second half of this year reduce it bit
00:15:20
are lost by you for the fifty percent
00:15:22
which translates to the for the loss of
00:15:25
in the neighbourhood of thirteen to
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fifteen million because now you know
00:15:29
the twenty fifteen results and
00:15:31
continued to secure of growth fund.
00:15:35
This remains is still an area of work
00:15:38
all this is possible if I'm able to
00:15:40
secure the goat front I need on time
00:15:43
therefore I'm really looking forward to
00:15:45
to support from everybody in this room
00:15:47
and indeed people some of the shoulders
00:15:49
about this idea on the table there is a
00:15:53
risk in every business there's a disk
00:15:55
first and foremost we need to deliver
00:15:57
thirty meg letters or more this year
00:16:01
from five last year is not a given is
00:16:04
and large industrial undertaking to go
00:16:07
up to the scale we are we approve one
00:16:10
that in one quarter of the available to
00:16:12
do five makeover covers last year. So
00:16:15
if you straight line that's twenty
00:16:16
makeover covers what that's not you
00:16:18
know we have enough business to be on
00:16:21
had to be able to do more than doubled
00:16:23
that happening what we don't have to
00:16:26
things perfectly organised industrial
00:16:28
capacity still a disk on top of idea to
00:16:31
fight accident which I'll speak about
00:16:33
it. And indeed getting gaining capital
00:16:37
to be able to do that is still a disk
00:16:39
it's not impossible to me to get that
00:16:43
is but at this point it is it is and
00:16:45
how it is my duty to highlight that is
00:16:47
to you along side of the opportunities.
00:16:49
So find accident lotta people last the
00:16:54
question what happened first of all it
00:16:56
is an excellent second it is only in a
00:16:59
small portion of our factory but
00:17:01
important portion of factory what a
00:17:03
small portion of the factory tired the
00:17:06
most important nobody's are not a
00:17:10
single personal is are all the people
00:17:12
out anybody else from outside fort we
00:17:15
did not creating the environment hazard
00:17:18
the environment what is alert the
00:17:21
German authorities get been the fight
00:17:23
accident happened in the morning all
00:17:25
for the what is your pro seventh people
00:17:28
about seven was lifted within hours
00:17:30
within hours we had the environment
00:17:34
clearance okay so nobody's art no major
00:17:39
annoy environmental impact. And we have
00:17:42
a new industrial impact. So before I go
00:17:44
for that I would like to because peer
00:17:47
likely who also looks up to the
00:17:48
production in addition to technology
00:17:50
leading describe what happened. And
00:17:53
then I come back sorry thank you anyway
00:17:57
I might switch to french so that
00:17:59
everybody gets it. Well at least a
00:18:02
majority of people get it in the in
00:18:04
their original language Or or for the
00:18:07
computer. So that was an incident in
00:18:13
German factory on seventh of April this
00:18:17
was a file that took place on one of
00:18:19
the machines in the manufacturing
00:18:22
process so there are various the
00:18:23
manufacturing stage in the last stage
00:18:26
is way you put energy in the cell and
00:18:27
that is that in that machine oh that we
00:18:29
had a problem that there was a fire the
00:18:31
exact cause of the fire. And not and at
00:18:34
this stage of the machine manufacturers
00:18:37
investigating the issue in trying to
00:18:39
find out what the root causes of the
00:18:41
problem might be that this incident
00:18:45
unfortunately put a hole to to
00:18:47
manufacturing and we had to implement a
00:18:51
backup solutions internally and
00:18:53
externally and we foresee that over the
00:18:56
next a few days or weeks so that we
00:19:00
would be able to ramp up well
00:19:02
manufacturing again with the capacity
00:19:04
would be the same as before but it'll
00:19:06
be sufficient capacity to cover the the
00:19:10
mount for our products and in the
00:19:14
second phase so they would be restoring
00:19:19
of the original capacity that will be
00:19:21
done it'll take a little more time but
00:19:23
on the basis of the information that we
00:19:24
have as the validation people with we
00:19:27
we were we see that this is in mind or
00:19:31
interruption of production which is an
00:19:33
interruption unfortunately but very
00:19:35
likely will have a minimal impact only
00:19:38
are not a yeah the production capacity
00:19:41
it is an incident to but we have been
00:19:44
able to master agendas and user point
00:19:47
out a few moments together. This was
00:19:49
honest and actually related to a very
00:19:53
small surface area of the production
00:19:55
facilities and their long term impact
00:19:59
on a contest so on the far accident if
00:20:03
you have more questions we'll take what
00:20:05
I want to restate despite the fight
00:20:08
accident we are maintaining our
00:20:10
guidance all the all the hundred
00:20:14
percent perfect solution is not in
00:20:15
place insurance is going through the
00:20:17
root cause analysis we will need a few
00:20:20
more weeks to organise everything. But
00:20:23
based on the internal capacity in few
00:20:25
weeks PL just mention and be made by a
00:20:28
few cells from outside we will be able
00:20:30
to keep the clearly commitments very
00:20:39
quickly I have covered a lot of it but
00:20:41
still it's important to say which
00:20:43
Marcus we are focused why. So the
00:20:46
global energy storage market is very
00:20:48
big you read reports people say is
00:20:51
twenty eight billion forty billion you
00:20:53
different reports what is important is
00:20:56
which part of the market your company's
00:20:58
focused. Let's start with the negative
00:21:01
least if you will be a knock focused on
00:21:03
consumer market. So everything lithium
00:21:06
batteries going in smart phones in
00:21:08
laptop computers be entered in that
00:21:10
business. It is a very large market but
00:21:14
not going very fast if you look at the
00:21:16
recent results of apple. And you see
00:21:18
the units shipped by then I think the
00:21:21
market reaching some sort of flat on a
00:21:24
small crowd. So that's large but not
00:21:26
going market then you got auto body
00:21:29
market which is I think it is exciting
00:21:32
it is a definite change in the business
00:21:35
model but a lot of high be not in that
00:21:37
market we are in the markets for
00:21:41
utilities and micro grade we are in the
00:21:44
market of storage for complete
00:21:46
electricity application. But that you
00:21:49
put storage I told you put storage in
00:21:53
micro great you put storage of it went
00:21:56
solar part or all of the above all you
00:21:59
put storage for transmission
00:22:01
distribution we are a complete stories
00:22:03
provider for what is called a utility
00:22:06
scale generation and micro great that
00:22:10
market according to an and which is a
00:22:12
very respectful and a research
00:22:15
organisation is going forty eight
00:22:17
percent compound annual growth going
00:22:20
from about let's say one we go about
00:22:23
all those two four gig of our Powers in
00:22:25
forty it's time massive market I if I
00:22:32
can switch over to the next one the
00:22:34
commercial and industrial think of it
00:22:37
as replacement of legacy batteries in
00:22:40
industrial applications like you see
00:22:44
forklift trucks in the warehouse
00:22:47
material handling you also menu trucks
00:22:49
running there are more then I will say
00:22:53
they're slowly there are more than five
00:22:55
hundred and forklift trucks in
00:22:58
operation more than five hundred
00:23:01
thousand all of them are on legacy
00:23:03
batteries okay and for everyone
00:23:06
forklift truck in operation there is at
00:23:08
least one more which is charging. So if
00:23:12
a customer needs one forklift truck
00:23:14
they need to because lady C battery
00:23:16
takes time to charge Nasa tremendous
00:23:19
opportunity to place that by lithium
00:23:21
you don't need to charge for eight
00:23:23
dollars or sometimes for full day. So
00:23:26
great market very fragmented but a
00:23:29
large crowed fifty eight percent
00:23:32
compound annual growth rate going from
00:23:35
a already a big market say to you got
00:23:38
all those two eleven you got overtones
00:23:40
in how much time again in four years
00:23:45
time you're not talking from that in
00:23:47
future it's here and our current market
00:23:50
we've which we are very unique compared
00:23:53
to any of our competitors I think
00:23:55
Israel focus on electrification of mass
00:23:58
transportation system fleet of buses
00:24:02
ferries boards trams that is a very big
00:24:07
market and the other uniquely position
00:24:10
in this market compared to or some of
00:24:12
our competitors because your company
00:24:16
has two types of technology remember
00:24:18
power and energy. And this is more it
00:24:22
all or application that energy. So we
00:24:26
have any uniquely positioned and this
00:24:27
market is going by thirty eight percent
00:24:29
thirty seven percent CAG are going from
00:24:32
one point five gig over close to as
00:24:34
much as six four times in forty years.
00:24:38
So we are focused in large to market
00:24:44
this is the proof of the market we
00:24:47
picked up on the right markets we
00:24:49
didn't go off to consumer market we
00:24:51
didn't go off to automotive market we
00:24:53
went off to industrial solutions. And
00:24:55
that's the market for your company big
00:25:01
market. And the how are we doing that.
00:25:04
I will be saying they're slowly so that
00:25:08
all my shareholders have are already
00:25:10
directly from me and you have an
00:25:11
opportunity to question and challenge
00:25:13
that which is the following. I'm
00:25:15
following where the businesses I'm not
00:25:19
restricting the company to a country on
00:25:22
a group of countries. We can't just sit
00:25:24
down here with the all humility in our
00:25:27
headquarters in a nice environment in
00:25:28
Switzerland and hold the business will
00:25:30
come to us business is happening around
00:25:33
the world. And the other falling it
00:25:36
around the work as we speak at this
00:25:39
minute. We have more than forty project
00:25:42
in nineteen countries okay. So we are
00:25:45
following worldwide you can see in the
00:25:48
map will get active I'm not saying all
00:25:50
the projects you're going to end that
00:25:52
would be a stupid thing to make what
00:25:55
I'm saying is that we are putting in
00:25:57
more than forty project in nineteen
00:25:58
countries and and what I am saying.
00:26:03
We've all then more than hundred meg
00:26:05
like covers between the project you
00:26:08
have announced. And the project we will
00:26:10
announce within X twelve months okay
00:26:14
that I'm saying that spike claim hold
00:26:16
me to it okay but issues market it has
00:26:21
cost to address because we have to be
00:26:23
in literally really in the work we want
00:26:26
a project in yeah in in Canada soon to
00:26:28
be announcing united states in India
00:26:31
dealing china in Germany in UK for the
00:26:34
all of the into by the other projects
00:26:37
all over the place. It does cost money
00:26:40
from a go to market perspective. But it
00:26:42
also D disc think about it. We are not
00:26:46
dependent on one part of economy in the
00:26:48
work and I think economic cycles of
00:26:51
such when something goes up here's
00:26:53
something goes down but we are we have
00:26:55
got a good mitigation here from a
00:26:57
geographical diversification
00:26:59
perspective. So most important question
00:27:05
okay okay people are last move the
00:27:08
market is so big and you claim to be
00:27:10
doing alright or doing good the whole
00:27:14
big could you become I don't have a
00:27:17
crystal ball. So I'm going to use the
00:27:19
same market data which you have seen in
00:27:22
the previous slide say Marcus utilities
00:27:25
scale generation and micro great
00:27:27
commercial and industrial systems
00:27:29
electrification of mass transport
00:27:31
systems. This is the date are you saw
00:27:34
in the previous chart this is the
00:27:37
market size if your company if your
00:27:40
company look watch events only one
00:27:42
percent market share in twenty twenty
00:27:44
one percent. We should be ten times
00:27:47
bigger in revenue then be very twenty
00:27:50
fifteen hundred and eighty million if
00:27:53
even five percent will be more than
00:27:56
nine hundred million it is not going to
00:27:59
happen without hard work and capital
00:28:01
what it is within our reach. I'm not
00:28:04
talking about twenty five percent
00:28:05
market share twenty percent market
00:28:07
share I'm talking about one two five
00:28:10
percent market share and this is the
00:28:14
possibility for our company all time
00:28:21
can close oh no that was the all the
00:28:24
good stuff now what do any for you like
00:28:26
you are here because I'm gonna ask you
00:28:28
money. So the start asking oh okay
00:28:32
first and foremost we have to continue
00:28:34
to invest more in technology evaluation
00:28:37
as well as in commercial dalmatian. I
00:28:41
will be as precise as concrete as I can
00:28:43
be my commitment is that we will
00:28:49
continue RR and D programs via more
00:28:52
than fifteen R and D programs to reduce
00:28:55
the cost at least in line with the
00:28:58
market hopefully better than the market
00:29:00
double digit cost reduction every
00:29:03
single year from here to the twenty
00:29:06
twenty therefore improvement in margins
00:29:10
we will also in the late today we have
00:29:15
two types of system one for stationary
00:29:18
storage electricity market utility
00:29:21
market. And one for mobility system
00:29:24
bosses very except that I think that's
00:29:27
costly. We have a roadmap by twenty
00:29:29
seventeen we would have a universal
00:29:33
platform. So once story system building
00:29:35
block for all applications that should
00:29:39
improve the cost much and last not the
00:29:43
least okay we have to increase the
00:29:46
production capacity from wherever we
00:29:48
are we need to go two hundred fifty
00:29:51
megawatt hours in twenty seventy one
00:29:54
five zero how much we delegate in
00:29:56
twenty fifteen five how much feel
00:29:59
running to deliver this year thirty how
00:30:02
much we want to be ready to tell you an
00:30:04
XT at one fifty that's the kind of
00:30:08
scale up why need to do the the company
00:30:11
otherwise the missed opportunity. We
00:30:13
missed opportunity. And if it that
00:30:16
we'll be want to five percent
00:30:17
shareholder in the market market share
00:30:20
one to five percent that is not
00:30:22
ambitious enough but then you look from
00:30:24
the we are coming I think that's
00:30:26
tremendous what else people do want
00:30:30
technology front through the
00:30:33
acquisition of triangle learn last year
00:30:35
we are one of the few companies in the
00:30:36
word which has closer services
00:30:38
capability this is sexy email saying
00:30:41
you have got remote computer service
00:30:44
which is monitoring all our systems
00:30:46
installed worldwide. And providing
00:30:48
remote service okay that platform exist
00:30:52
in our company why is that important in
00:30:55
the project in Canada we are proposing
00:30:59
to sign a fifteen year service contract
00:31:02
one five if every project will have ten
00:31:05
to fifteen years so we seven you we
00:31:08
build okay pretty deep really decoding
00:31:10
service revenue which is usually a high
00:31:13
margin business. If that worked
00:31:15
properly and last not the least we will
00:31:19
continue on the path via started
00:31:21
because yourself followed by project in
00:31:23
audio. And few more to follow this year
00:31:26
we will and to become an EPC contractor
00:31:30
engineering procurement and
00:31:32
construction totally in charge of
00:31:34
building the project onto user accepts
00:31:37
that particular project okay more than
00:31:40
sixty percent off that he PC contract
00:31:43
will be locked watching that except
00:31:45
left. So then you can get EPC contract
00:31:48
you secure supply these are large
00:31:51
complex project we don't have
00:31:53
capability to do more than few okay we
00:31:57
simply don't even before the engineers
00:31:59
we have a for them five PH D.s and
00:32:02
whatever I can tell you the CV we can't
00:32:04
do more than three to five projects the
00:32:06
pretty full stop but that's good enough
00:32:09
to meet a business plan not exceed. So
00:32:13
that's one area of investment and then
00:32:16
very concretely we announced in our I
00:32:21
know hotels and in a letter to the
00:32:23
shoulder that we have launched a formal
00:32:27
large capital base process the
00:32:29
objective is to raise significant
00:32:32
amount of money in the range of fifty
00:32:35
to seventy million before I talk about
00:32:37
the money let's talk about what are we
00:32:39
going to use it for if we had the money
00:32:41
okay first is to improve our capability
00:32:47
to win the projects as EPC contract or
00:32:50
best engineers and that's people a lot
00:32:52
of people required to develop the
00:32:54
project. We need working capital for
00:32:57
such a production capacity. And
00:32:59
sometimes very selectively we may have
00:33:02
to put a small iniquity three five
00:33:04
percent of the project to give an
00:33:06
assurance to the customer that all the
00:33:08
skin is in the game the LCDS I'll be
00:33:12
absolutely clear let me repeat it is
00:33:14
not the business model of the company
00:33:16
to put it quickly if I have money I
00:33:18
want to build more systems more system.
00:33:20
But there are times the customers are
00:33:22
saying if you want such a big project
00:33:24
you also little companies somewhere far
00:33:26
off in Switzerland if you're sitting
00:33:28
another part of the word okay how do I
00:33:30
trust you'll be there almost sure that
00:33:32
you will know the project not another
00:33:35
put your skin in the game more than
00:33:36
being is supplied in those situations
00:33:39
selectively strategically we'll put
00:33:42
this small you could be then comes very
00:33:48
concretely the capacity system capacity
00:33:51
delivery needs to go from five to
00:33:53
thirty this year and thirty two hundred
00:33:55
fifty meg or tell us to leave the next
00:33:57
year if I don't bill hundred fifty meg
00:34:00
over dollars responsibly iconoclast
00:34:02
making to sign the contracts the lead
00:34:05
time between winning project and
00:34:07
delivering is at the minimum six months
00:34:10
more like six to twelve months. I have
00:34:12
to spend the money now at least six
00:34:14
months I had before we will be able to
00:34:16
tell that anything. That's the nature
00:34:18
of this business. There for the working
00:34:20
capital and therefore it as reflected
00:34:22
in a bit of loss. But it is just the
00:34:25
nature of the business we adding big
00:34:28
all we can always do a better job. And
00:34:30
be able to do a better job of trying to
00:34:33
make sure that the capital efficient if
00:34:36
we have one euro one frank one dollar
00:34:39
from you we should use that wisely
00:34:42
where possible use other means of
00:34:45
funding off balance sheet and things of
00:34:48
that nature so let me talk about that
00:34:50
off balance sheet example the annals
00:34:52
recently. That's we successfully secure
00:34:55
insurance from sister export credit
00:34:57
agencies so or as well from a a lot in
00:35:01
the room okay we secured that once that
00:35:04
active that is activated we get six
00:35:07
million of working capital have that is
00:35:10
that much less money use from that you
00:35:13
could be of the shareholders okay so
00:35:16
that is an example of how you could use
00:35:18
off balance sheet. But if we didn't
00:35:20
have the project you won't have access
00:35:22
to that facility in the first place. So
00:35:24
that is how it is so good. So we will
00:35:28
be capital efficient removed from
00:35:30
hundred ten people two hundred fifty
00:35:31
nine hundred fifty eight to the last
00:35:34
year. I'll be even not going the same
00:35:36
ratio of go talk to people what I will
00:35:38
add more people okay hold me
00:35:41
accountable for productivity per person
00:35:43
rather than saying how many people. I
00:35:46
think that is not the measure forty
00:35:48
integration business the measured is
00:35:50
what is the revenue on margin but
00:35:53
percent. We are directing people
00:35:56
turnover was ten million twenty four TV
00:35:58
eight hundred fifty people turnover was
00:36:00
eighteen million twenty fifty so the
00:36:02
productivity purpose and has indeed
00:36:04
going up. And will continue double. So
00:36:07
we will be more capital efficient and
00:36:09
the that is everyday work how can we
00:36:12
use every eurodollar frankly have more
00:36:16
wisely. But I will not be able to say
00:36:19
let's freeze the cost of the
00:36:20
organisation we will not be able to do
00:36:22
that and get delivered about that. So
00:36:26
that's really the reason for requesting
00:36:29
the big capital raised and you support
00:36:31
to provide the tools. And mechanisms
00:36:34
for that last us like the last but one
00:36:40
slide large market okay I'm sensitive
00:36:44
to everyday which I hear when I speak
00:36:47
the shareholders when you lose the
00:36:48
capital you are using you quickly. So
00:36:51
you're diluting on the first one to
00:36:53
weeks acknowledge except that yes there
00:36:56
is a dilation what are what I'd like to
00:36:59
some with very humbly to you from the
00:37:02
time I joined the company June twenty
00:37:03
fourteen every single raise be made
00:37:06
which was private placement okay
00:37:09
convertible loans has been I can
00:37:11
increase value okay before my coming
00:37:15
the money was raised at one fifty for
00:37:18
share I came in but one ninety four
00:37:21
recharge facility to twenty four
00:37:24
facility be then it convertible note in
00:37:28
December of this last year at two forty
00:37:31
one and then march of this year to
00:37:33
sixty eight for sure so two eighty six
00:37:41
and say two point eight six so that is
00:37:45
if I want to how may somebody my so we
00:37:47
have been responsible as your
00:37:49
investment actual progress in the
00:37:51
company who actually the valuation of
00:37:54
the company employee evaluation has to
00:37:56
increase. So therefore the money really
00:37:59
is has to be at a better evaluation
00:38:00
than the previous found. So for every
00:38:03
single time we have done it okay and my
00:38:07
commitment is that if you support as to
00:38:09
raise the large capital here. We will
00:38:12
absolutely we will absolutely it is
00:38:14
this a premium to two eighty six I
00:38:17
cannot tell you how much today. But it
00:38:20
has to be at the premium otherwise I am
00:38:22
personally not doing a good job that
00:38:25
will be what I can commit to you it
00:38:27
will be at a premium how much I cannot
00:38:29
see because they're in the process I
00:38:31
can early stage right now with that
00:38:35
I've come to the end of the
00:38:36
presentation to summarise. We as a
00:38:41
company your company is in a very large
00:38:44
market the market we are addressing not
00:38:47
the global energy storage system market
00:38:49
is big okay more than eighteen billion
00:38:53
what else thanks to your support the
00:38:59
the most vertically integrated company
00:39:02
in the word with humility and this is a
00:39:05
recording session. So my competitors we
00:39:08
so this messages for the competitors
00:39:10
common common challenge me on the claim
00:39:12
if you have more vertically integrated
00:39:14
model then lock washer in energy
00:39:16
storage system. That's an open
00:39:18
challenge will see if somebody will
00:39:20
step up to that what else we have done
00:39:23
we have a solid pipeline of projects.
00:39:27
And the projects we have one is not
00:39:29
justified by the L sitting today as
00:39:32
sixty megawatt hours often from project
00:39:35
six zero and I'm claiming we'll be more
00:39:40
than hundred makeover "'cause" within X
00:39:41
twelve months what else your company is
00:39:45
done I think I've already talked about
00:39:47
our integration capability not only
00:39:49
what be built by using your money. But
00:39:52
also then taking the responsibility
00:39:54
with my team and the people not in this
00:39:56
room to be able to tell about the
00:39:58
project is one thing to when the
00:39:59
project which is already difficult yeah
00:40:01
the thing to deliver and the initial
00:40:03
shown prove that we can deliver last
00:40:06
not the least be able to very strong
00:40:10
team some of the leaders are here. And
00:40:13
a lot more in that in the company had a
00:40:16
hundred fifty plus from company from
00:40:18
one to ten be used to be we are proud
00:40:20
of what we have built we also over that
00:40:23
there's a lot we need to improve I need
00:40:26
to things to do that. It is financial
00:40:29
capital it is to do the industrial
00:40:32
capability engineering capability. And
00:40:35
I need you good wishes with that thank

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Leclanché SA - 2016 AGM, Yverdon-les-Bains, Switzerland. CEO Presentation.
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4 May 2016 · 9:58 a.m.
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