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good morning ladies and gentleman i welcome all of you who have travelled from different parts also to them and
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also people were come from far off they're getting an older functionary okay you will get introduced to her
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let's get started there's a lot to cover
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i want to take you through the last year and was six months even very very transparently
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honestly what has worked well what has not worked well and what you're doing what it
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it would be an honest dialogue as it has a thing for us to use and i
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presented to you and i'm sure you're not shy of asking questions you ask questions
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let's get started by talking about what have you cheat last year
00:00:49
with what i do that since there are fewer new shareholders and uh people from shadow particularly
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i want to also introduce into slaves what we do as a company it's a the cat
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i'm never tired of saying this because we're so proud of what we do okay
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we address three different markets which is becoming more and more to market
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from left to right for you this market is about electricity market
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electricity generation really it was meant solar electricity transmission and distribution
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so you put storage with generation of electricity
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particularly particularly renewable energy sometimes even guessed
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and you put storage for still blazing electricity when it is being transmitted and distribute it
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that's where most thought that our focus has been promised to you as intel stock commotion angle
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in between there's a lot off market if i can
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put it here so called commercial and industrial market
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this is the same still it's system scene technology but this time we
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don't put it in the l. p. c. d. s. l. network
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we put it behind the media on the premises off
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a commercial customer whatever hospital okay industrial customers
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okay so it is also call in the industry behind the need to what technology is
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the see someone will we think we will most these two with one big difference
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here on the utility market this is the project is it's it's
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one year to give lot six months to one year to implement a project
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maybe in capital requirement
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there is this one tends to be what our business you standardise the product ah and you put it
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on the premises off a commercial customer and industrial 'cause that's something that holds
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that's the difference technology is the same one of the major off and that's the end is very different
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so those are the two more 'cause there we have been mostly doing work box
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but late in twenty fourteen when i joined with the approval of the bowl
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i say that humility if i use the word i it would be good i was think statement
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i always believed that the biggest requirement when i do still it would be interested
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we have discussed this in last lead you the company was in
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such a difficult situation twenty fourteen and so small no references
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in good now when descending batteries five cops it nice big balance sheet
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so we said okay what could be doing jostle so we started to
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build internally the systems for battery packs for elective classes face
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forklift trucks
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those are the customers we started to build the system we made false investment in these twenty fifteen
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and you will see through the presentation today is significant result is visible in the segment so these are
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the three markets i should say to markets with different investment requirement and the product market transport
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the market we address
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and how do we address that market what we do as a company
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i say with humility because i have lost in the war and yourself give me three years
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i see that from the beginning you meet reuse plan i think the company
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to profitability i think we're on track within six months on that
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okay when i joined the company twenty fourteen we used to buy cells
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from far east korea japan china below that the back for
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coffee in c. f. l. s. t. v. tray copy machine we used to build batteries and we do what i'm also it's
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small small batteries systems what business small what good business that's holding it
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and we had spent into until twenty four been seven years seventy us
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in building lithium tight knit oxide ready especially high quality and so
00:05:12
low energy density what the law live good number of cycles awful so
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we had only build this as yet not sorta single commercials project
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one two june twenty forty friendly and two twenty fifteen not a single project
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so this this this was about ten billion per body business systems integration
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zero after seven years of investment zero but yes in the actual facts
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so look at it i said why haven't we sold most of the market was not requiring lithium
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tight knit at that time they require another type of so which is high energy density
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which means it's lower tax dollars euros per kilowatt
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hour that's all the interesting lodges was lower
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so we had a program i didn't start the program was already
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there the year long over and the organisation but never finished
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so they started their graphite and then see high energy density cell and the launch
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the graphite tendencies cell in q. one include twenty fifteen to the sense
00:06:23
so program was the focus about six months to get back to the factory start producing it
00:06:31
then how do you make money no matter what you do in building cells by the
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u. r. l. g. in korea sense in in korea or panasonic in japan
00:06:42
it is a little working business high volume low mileage as if you made fifteen percent gross margin you are in good business
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typically the models in between ten and fifteen percent depending on what
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there's no way in europe and in switzerland they did it they ship so it's a nice
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expenses okay you can have a ten percent goes like the business and be in business
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not possible so needed to do something different and the different was i recommended to the board caught the
00:07:12
what kind of funding from the shareholders the page or does the bill a complete energy storage system
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that means this value this sounds go into mechanical housing with control electronics gone what you and on
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top of the software but remote assistance all my adding water electronics you improve the marching
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okay that is the primary driver why we meant and it to a position to twenty fifteen
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we need to uh but the license for maybe a stack of my family's here probabilistic for stationary storage
00:07:47
we have acquired find out on the bill b. m. s. for transport business
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that wasn't twenty fifteen someone up and developing just what to use that
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then said okay now let's build a system integration expertise
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which the company had my buildings system far are mostly it's
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what was small one system now needed big software
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so build it in inside of notation well system integration and we tested that in the market
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the postal which i think we got it was not planned pasta which of the the what was the new tended european union
00:08:26
tended to bill world's largest electric very badly for larger selected for
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a wee bit farther business i and we want this
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all the batteries are being delivered this year this very will be an
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operation on solid all next year so three here start development
00:08:47
to get there we are fully certified we had worse specification
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for maybe an application like to elected mating application
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we need to do is lost solid investment and three years before we see that that's the nature of the business
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then we went on to say what else we can do it was
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for you have not seen expect significant announcements i will not be
00:09:14
able to disclose today that we have bought framework contract the light source
00:09:19
code i'll an with allows automotive integrated in india and a
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and the biggest letting you know it's the it's okay if i take very conservative view
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these framework contracts if they become a full control supply contract
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will the generally more than hundred and fifty megawatt hours all shipments every year
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at a conservative number that should translate to forty five million us dollars then everything the
00:09:48
but it has taken two years off your investment in patients who starts and visits
00:09:53
by the time you get those revenues will be three it's at least
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that's the nature of business you're in there and we said okay where else the procurement is happening possible long gestation
00:10:07
also the vacation the fire propagation certification because one year what effect if any one will be
00:10:14
that's that's the nature we cannot change it that's the low interest course it
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is important and it takes a long time to get this action
00:10:24
so there was a business happening in the utility market what we need
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to do in utility market you need to provide a global solution
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not just sell not just more due not just that the madness isn't
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software bought also integrate the battery power conversion equipment inward us
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okay and can work d. c. from battery to easy easy from
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the grade to d. c. that's our conversion system briefly speaking
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so we'll give law that expertise as it with the contractor and saw some very significant success may
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twenty fifteen we deliver the largest micro great in europe in as well as what you
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then
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what did we do we also spent too fast
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in second quarter or actually it's a guess second quarter of last year twenty sixty
00:11:21
we want the largest energy storage contract in the world in canada
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it has six different sides we're about to finish the pesticides
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then in third quarter last year last project twenty megawatt undercover cause in chicago in the us
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so we we don't want stated that all strategy works we just
00:11:45
did not spend your money okay we have brought real success
00:11:50
it is taking time to get the project finance implemented i accept that but these
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are real projects and when it gets worse that's competition you can think
00:12:02
in commercial in industrial business as i mentioned before it is important business so we took
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trying to see how do we create a standard product and be created a
00:12:13
that particular picture you see it full only product it has got
00:12:18
battery inward was ready to connect with agreed with energy madness isn't software
00:12:24
and the reason you want to projects in canada in this this this is standard forty foot container
00:12:31
could be twenty foot container and you can sometimes have inward as
00:12:35
outside if you knew what battery inside and very flexible
00:12:39
configuration is fully paradise and we'll be dealing fast all this
00:12:44
this year into those that's it this that early seventies
00:12:48
so we have a product now for commercial and industrial justice
00:12:53
that's what we do as a company we what we talk about the some
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good news some not so good news what happened last last meeting once
00:13:04
so so i think it would be sixteen what review chief specifically sixteen what we cheat is it fifty
00:13:11
six percent growth in revenues and if you recall we achieve sixty percent go to previous yeah
00:13:19
okay that is that is absolutely good news or twenty
00:13:24
fourteen that's more than two point five x. increase
00:13:29
so that's one great positive and the big news is
00:13:33
this one frankly that amount of ordering vaguely ha
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close to eighty five no actually it's ninety five as these the
00:13:42
backlight for like end of twenty sixty eighty five megawatt hours
00:13:47
so we not only one of the business deli worried but we also
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one more business to secure slightly seventeen eighteen and we got
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so already intake was very significant we started construction all three projects in us canada
00:14:01
to sex in canada and one us and one project i just started angel
00:14:07
so it has been a heavy lifting winning the business to leaving the business and
00:14:13
making sure that we find the capital the last one is the disappointment which i'll talk it's
00:14:20
a lot of people look at the headline number and i respect that you got already
00:14:23
does here okay if we don't use it figure people read it like this
00:14:27
but when you look at one if you take out one time investments
00:14:32
like for like all of losses are reduced by fifty percent or
00:14:37
in the trees but that's a figure you would really not be it'll balance sheet
00:14:42
okay but when you look to the details and see what was investment
00:14:46
and what was actually cashflow what's is that or no but you
00:14:51
see it with the person on the line improvement which is visible only
00:14:54
the analysis is not visible are really the financial state it's
00:14:59
okay during this period we spent last year less money to spend
00:15:03
looking cat acts as a less if you like uh
00:15:07
topics
00:15:09
and obviously share price somewhat improved but remains a sore point and
00:15:12
a disappointment for me as for the show prices that's right
00:15:17
during the same period thanks to their house and you will hear a lot about gold important is today well start now
00:15:23
yeah s. chan is a company whose you is in the room
00:15:27
or jack well okay well so it's clean electricity management group
00:15:32
did you get it correctly i used to call or something different okay they have been very
00:15:37
kind to invest in our projects it's a company controlled by the one by one partner
00:15:42
they provided twenty three million us dollars invested in our project eight
00:15:46
million in terms of equity in the project in the us
00:15:50
a hundred percent of the country and fifty million construction loan for
00:15:54
the canadian projects basing wanted to we talked about that
00:15:59
so that has been significant go if you like achievements off last year
00:16:06
real quickly good take you through the numbers because it is a requirement all the
00:16:10
number so seven months old nevertheless is important for you to reflect and see
00:16:14
the numbers and then i'll come back to you to take you through this of the presentation you there
00:16:22
uh_huh
00:16:28
so let's let's is thought to be a income statements uh as it used
00:16:32
to be with the fifty six distance from some of the twenty million
00:16:39
versus the uh the thousand fifty of uh
00:16:44
then you mentioned before to it that we have been able to uh to should uh in two thousand and sixteen
00:16:50
and we have to add to this list of projects um v.
00:16:54
so could like you see businesses look closely the portable business
00:16:58
storage business and the distribution business which can't roughly for
00:17:02
ten million in this twenty eight million number
00:17:06
yeah
00:17:08
in terms of personal costs so we do you don't showing substantially increasing person cause
00:17:13
that's the reasons for this the first one is uh as you remember
00:17:17
we made an acquisition in belgium in july two thousand and fifteen
00:17:21
so we have the full you impact of this position
00:17:25
we also decided to to incorporate new legal entity in the us uh
00:17:31
which is actually a as we speak still our largest markets
00:17:35
so we hired a non people uh in the us a highly talented people
00:17:40
no no that explains will so uh the difference uh in terms of person cost and we also
00:17:46
staffed at the end of two thousand and fifteen on the the
00:17:49
first part of two thousand sixteen uh our engineering department
00:17:54
to regain cope with the constant increasing number of
00:17:59
requests for quotes that we were receiving
00:18:01
and getting prepared for delivering the eighty five megawatt hours of project that and
00:18:06
you mentioned that we had in uh you know project might might
00:18:12
from any bigger perspective as in you mentioned uh everything being
00:18:16
you cool uh we managed to reduce the last one
00:18:19
fifty percent would be certainly not a satisfactory situation we mow please with the numbers that we showing to you
00:18:25
but be sure but uh we're working on and we have been working hard in first controlling our cost
00:18:31
the company has been very diligent in the weight was just manager would lose money
00:18:36
uh we have the united a certain number of
00:18:39
positions especially who puts a support functions position
00:18:44
in the latter part of two thousand and sixteen on the early part of two thousand and seventeen
00:18:49
um and and and and and that just a illustrates the fact uh as not being state yet but
00:18:55
this business ease ease uses the business you can now
00:18:59
be seen as a boutique business not the woods
00:19:03
additional business you know where you grew your expenses as rumour that unfortunately
00:19:08
you have to stall is uh the and stuff uh you teams
00:19:13
but before you could we start recognising that the which is what what we did
00:19:18
uh we'll mention later uh who projections that we've done in terms of profitability or showing that's
00:19:24
the company must be delivered between nineteen hundred million
00:19:27
of revenue to really become a profitable
00:19:31
what we can say use that we would be you position the little piece that wouldn't read when you
00:19:36
with a very minimal recruit increase of about person cost and
00:19:41
more in in in general about operating expenses and so we're currently staffed well equipped
00:19:47
to deliver the ninety two hundred million revenue that we're targeting to uh read become profitable
00:19:56
i'm a bit of i mean technically canteen comments to uh most of you will remember
00:20:03
that uh we started a fire apportion fire at the factory in germany last april
00:20:09
uh the equipment that was damaged by the final school formation power that's the last
00:20:15
step in the in the production line is the equipment would charge and discharge is the uh the
00:20:21
the the the the the sensed by this equipment had to to be a return off
00:20:29
in terms of uh financial cost uh it's it's it
00:20:33
two from spending that uh we've done in two thousand and sixteen the
00:20:36
first one is that we have been assisted by some financial institutions
00:20:41
uh in order for us to rise capsule uh which we managed to do last summer we should remember when
00:20:47
treason shakeup to what eleven million in august of two thousand and sixteen and and we also have the
00:20:54
the price the interest cost of the convertible loan uh that the company
00:20:59
uh huh as and the which me to to uh on the status of june of this year and
00:21:04
which and you will we mentioned a a more into the detail in uh in in this presentation
00:21:11
so that that that's what i can share with you from from the piano perspective uh but again
00:21:16
i mean nobody can be proud of those numbers but i want to show you that uh
00:21:21
first of all we have spent the money very i mean carefully and diligently
00:21:25
and we have built a structure that would allow us to deliver
00:21:30
the eighty two two hundred million revenue that uh we are targeting for two thousand and eight
00:21:39
from a banshee perspective uh the woods you on some of the lines uh uh the uh
00:21:45
the the the the the corresponding impact uh that just presented to you in the piano
00:21:51
so none current assets you you you can of course i mean read the be the right
00:21:55
of impact of this machinery uh in a in germany that we've not replaced yet
00:22:02
we're still planning to replace its uh as soon as the significance would uh comes
00:22:07
in and and you will operate on that later on in his presentation
00:22:12
on the current as it's on so you could see the immediate impact of the user
00:22:17
the revenue that we have built a in the fourth quarter of this year
00:22:21
so we had twenty one million of trade we see people balances
00:22:25
which were partially offset by advances receive from customers that are shown on the trident people
00:22:33
um in terms of convertible so that's the moon was mentioning uh uh your uh the ace
00:22:38
a slash usually that so cool to see notes that expired on thirtieth june this year
00:22:43
which of course was still outstanding you know balance sheets uh at the end of two thousand and sixteen
00:22:49
uh we have a still small outstanding loan with the u. b. s. uh
00:22:54
which is to to buy a cushion mobile more uh and then finally
00:22:59
uh we have a point uh its significance the people lawns
00:23:04
uh which is made of a moment to you uh
00:23:07
use uh plus more to instantly people to wanna
00:23:10
bunch and what was the idea stick close as i mentioned advances to customers and of course this
00:23:17
the size of the slide is is directly reflecting the lack of of from
00:23:23
that the company has been suffering now fall for the past six months
00:23:31
twenty i think that's that's what i can i can stay on a thank you on the phone it's just it's thank you
00:23:38
right
00:23:44
oh okay so no the time for talk about the lows oh okay
00:23:50
let me set the context for you
00:23:54
in twenty four fifteen then i first and present it to you we talked about or
00:23:59
grand house call it what shape which need a little bit of rebuilding and innovation
00:24:05
um and when i started the rebuilding innovation i thought it would
00:24:09
be that difficult frankly it has been very difficult okay
00:24:13
and the construction started in fifteen i went to sixteen and still going on
00:24:19
we had a little bit of it was the last few months because
00:24:22
all the delay in funding i'll take it all that much but
00:24:27
we are absolutely committed we have solid foundation to do this morning or which we need a crotch
00:24:34
we are i believe both three quarters of the way there if not more
00:24:42
where did we come from is not to blame the past but picture is worth a thousand words
00:24:50
or more look at this picture it's your company my journey very useful last what three years
00:24:58
okay it's your company
00:25:00
and it was a massive tasks to take a company of this
00:25:04
history and try to rebuild it's a new business or affect my vantage point is twenty fourteen
00:25:12
you can see what we did in fifteen and sixteen and i absolutely save
00:25:17
it full condition open for any verification but anybody initial in this room
00:25:23
that the had the business we have the business informing was there the u. w. or forty three on we'll see
00:25:30
okay at this point in time says the funding has been secured i will
00:25:34
take you through that only very recently as in few days back
00:25:38
okay i need a little bit of time to to evaluate going to end up in twenty seventy
00:25:44
i will not be able to leave tell you today the funding has arrived in
00:25:47
last three days i'll take it directly to but look at this picture and
00:25:54
then you look at this picture
00:25:57
the show performance over the same period more or less until about early part of the c. okay we have done
00:26:04
is so much in terms of taking the car back up and you see in the share price here
00:26:12
flat
00:26:13
okay there are many reasons why that okay that is if there is
00:26:17
one reason the infidels among other reasons it is one of the
00:26:21
isn't sure does not reflect the investments in the performance of the
00:26:25
company you sit down with institutional investors in london new york
00:26:30
the f. z. rick and tell them this the only looking at history then yes analysis
00:26:37
and the the look at the market cap which hasn't changed it has improved okay when i
00:26:42
joined it was eighty five million ninety million we have one twenty five million market cap
00:26:47
but we miss them so much of investment taken all the money particularly the lotion or doesn't differentially
00:26:53
okay so it does it reflect the share price it doesn't
00:26:57
okay and that has been a disappointment more concretely
00:27:02
what phil has not worked in late twenty sixteen and
00:27:06
only part of this here um i actually imagined
00:27:11
i was convinced that if i build the business the capital will fall
00:27:17
almost simultaneously i i'm the first one to admit i was wrong
00:27:21
i build the business faster than my lady pays the capital
00:27:25
we targeted raced about thirty million iniquity ended up with eleven million in early july last year
00:27:33
so yeah i don't want to going to the whole list of things but very happy to discuss with you
00:27:38
what are the major feedbacks we got from institutional investors yeah happy bearings came into
00:27:44
that's great news balances a lot respectable in situation you know what i tell in the u. k.
00:27:50
that said their investments i stick it has me that is small more like
00:27:53
a wedding there join the water to see how the portion performance
00:27:58
okay the feedback was about this long history of los you've just seen that curve
00:28:05
okay long history of last low market cap share performances not
00:28:10
reflecting on the work you have done in investments
00:28:14
okay lonely critically ill equipped stock is probably the correct way to do that
00:28:18
it is the strangest company i have ever where seventy some percent off the
00:28:23
company's held in these four names here okay they usually don't trade
00:28:29
small float you just need by future stitching the price anyway at any given time
00:28:36
just pull out five hundred transform yourself pocket and change the price that we like
00:28:42
okay the float is so small
00:28:44
okay and then you go to institutional investors they don't see that there's a white immature sure performances improve
00:28:51
last three years you spend fifty million okay and sure as a market cafes increased by twenty million thirty five
00:29:00
okay that's the challenge we face and one bit which management can do better is a lot of people
00:29:08
rightly so including the fair criticism from the national as we have supported
00:29:12
the company your business model is confused you do too many things
00:29:18
that's a fact that's a fact all i want to say is the dot offering excuse we had a choice
00:29:26
good icon in twenty fifty and get rid off all the
00:29:29
legacy business which represented eight million out of eighteen yet
00:29:35
great clothes that okay if i can be not meaning to go by history
00:29:39
is important sometimes to learn from history all mistakes and others mistakes okay
00:29:43
here is now somebody just decided brilliantly i'm going to get rid of all this business
00:29:49
which are still a good business these business that's still their legacy does still the largest badly in the word
00:29:55
okay but yeah this brilliant idea we get rid of holidays and we rebuild the new
00:30:00
business one two three four five six seven eight keep saying how many is interesting
00:30:06
but i could not possibly responsibly recommend to the board let me just get rid of the legacy business
00:30:13
which represented eight out of eighteen and ten out of twenty eight billion nasty soul you go to
00:30:20
the market and rightfully so people could benefit confused is and what what do you do exactly
00:30:25
you may batteries for coffee machine yes and you make the largest actually in the work yes how's that city
00:30:33
i think that's a fair criticism those appeared we could not do this
00:30:38
okay now we have reached a critical size to make decisions based businesses we key
00:30:43
which businesses be let go in another house very can prosper and i'll take it with that a restructuring lap
00:30:54
okay i think i don't what else could do this rather important so i if
00:30:58
i'm the first one to take the responsibility i fail to raise them capital
00:31:04
foreman situation invest just as it was envisaged in parallel in
00:31:08
anticipation of the iniquity we were negotiating a very large
00:31:14
financing facility mostly for projects out of seventy five million that facility about fifteen from
00:31:20
my memory was for the working capital restless for projects to accelerate the project
00:31:27
okay but you can even come this didn't happen yet successful uh due diligence
00:31:32
the technical the due diligence the commotion due diligence though financially
00:31:36
do digits was successful outcome was three things on
00:31:40
their diligence you don't have enough equally you we don't see we don't break even in twenty eighty
00:31:46
so when you know they could be your more advanced and a bit of break even come back to us
00:31:52
so that these two did not happen as a result
00:31:57
taking action military loss from the past years and not having the fresh a good
00:32:02
image of plan we released in may time frame to be absolutely legally correct
00:32:09
n. l. may i reported aboard through analysis done by peter to see
00:32:15
that the i mean uh some kind of what is called technical
00:32:17
insolvency it's that balance sheet based insolvency those of you are from
00:32:22
other regimes such as germany they're insolvency is tested on cash
00:32:27
ability to pay bills for next ninety days or something more or less in the us okay here and
00:32:32
i just was a little ages of allergy tests and we had negatively pretty compared to the debt
00:32:38
as a result of accumulated losses the convertible load all of the above okay so this technical
00:32:45
insolvency was released in me like end up there to be precise the started work language
00:32:51
so if you know what they're they're what's happening with the question why did the post one video this is easily possible age i can't be
00:32:58
more frank than this okay we need a time and a fixed it what we needed time to fix it before we call the major
00:33:07
so that's really what anton
00:33:10
in between taken alone every loan which is partially taken one being used to be paid
00:33:16
this rule of life i did take a loan from a up ace and jade okay
00:33:21
miss a lot lot me and adams company that was due on friday june
00:33:27
this yet so we needed to find a solution to either beep they all do
00:33:32
in in between i take very much mister lobby and adamant that she
00:33:37
do you agree with golden part that thank you very much it did your dad and the golden property
00:33:43
the echo solution has been reached we're golden park that has perches board fifty three person not alone
00:33:50
and the remaining has been agreed by the three parties h. g. h. one
00:33:54
about that and of course she to postpone it until summer next year
00:33:59
so we were able to resolve that so those are the two reasons we're working
00:34:05
in order to come back to you in age and then you have cleared
00:34:08
all short term problems which are technical but illegally got it
00:34:17
so obviously during this period when you're busy doing all of this okay the business has been more or
00:34:22
less frozen in the first half of frozen don't take it negatively frozen means we could not
00:34:28
no the business as fast as i could have we cannot deliver the project as fast as he could it doesn't mean you're dead
00:34:35
one from it i'll show you what all you which is just like this difficult last six months
00:34:42
with that
00:34:44
i claim that and i'll give you have written sotheby's
00:34:46
have a solid solid solid basis for the crowd
00:34:51
in the second half obviously a an indy into twenty eighteen and you want i'll take you through that as slowly as i can
00:34:59
so this technical insolvency goes by court obligation under stress last seal
00:35:03
it stands walk or of obligation okay those we scored
00:35:07
a number is this what we needed to treat that only widget read that is what he could eat about sheet
00:35:13
okay how do we achieve that i think we achieved not only to
00:35:16
create but also get fresh capital thanks to one by one
00:35:22
what about that and bruno and one and his team here
00:35:26
what about that as a significant significant investment in the company
00:35:32
previously and on top of it you can see the total investment by gordon part but as it stands today is
00:35:38
twenty seven point five million last two weeks okay we're now when it be maybe probably was a subscription
00:35:47
twelve million departure demanded a convertible nor the cash should be a dollar bank this friday or monday
00:35:53
so this is as late as as this and this investor for the tone million
00:35:59
two by about thirty three percent of the convertible from is jade group
00:36:06
that's it's very significant support may i take a moment to actually paying
00:36:10
gordon parker if i may please join me in thanking gordon part
00:36:20
equally we continue to be on the road for the support we have from
00:36:24
and one girl or well before the time anyway endpoint is responsible because
00:36:29
you could get it i don't want so this part effect okay at one
00:36:32
has been a supporter of the company since and one twenty twelve
00:36:37
can't can't remember okay we'll let's get that okay and finest complemented this offered
00:36:43
oh or adding additional fresh money as well
00:36:48
as converting their convertible knowledge to improve
00:36:51
the could be position so once again thank you very much at all
00:37:01
but that would that you're not at this time i'm determined this is
00:37:06
the law that we are going to or from the business that
00:37:09
so the next one double funding not finished sorry to say that i
00:37:13
will be requesting through the resolutions today additional sears from you
00:37:17
to conduct either that i tissue on it last private placement late
00:37:21
september early october in about two months time roughly speaking
00:37:26
okay that's that people need to raise that kind of money in order
00:37:30
to continue growing the business all due to the proper devoted
00:37:34
this is actually very said is not it would take business there is no choice of standstill
00:37:39
let's do this then we will do this then people do this no market is going like
00:37:43
this okay what is good like this either you cool with the market i'll get out
00:37:49
there's no in between choice let's do one thing at a time doesn't work in this business
00:37:54
so clearly we need the capital we need i need your support for that and uh people justify hopefully
00:38:01
with valid claims why that is that i investment is a good money for good cause not a
00:38:06
good many fall back was this is not twenty fourteen australia's before with all due respect
00:38:12
that you take the money and you have no business today but i'm talking about
00:38:15
taking your money to deliver business i hope that's that that's a big difference
00:38:20
so the first thing we will do is probably the projects which are ongoing
00:38:25
okay eighty in the us in canada in germany though big
00:38:30
projects which is typically what and few other contract
00:38:33
all together that's about thirty megawatt hours off construction and believe me we need to complete
00:38:39
we need to bill now battery packs for these large
00:38:43
transport contracts which are at this stage framework agreement
00:38:47
not to conform supply contract so that no misleading information given to what we have framework contract
00:38:54
should they become supply contract over the course of roughly six months we're talking about
00:38:59
i can lay it can only transformation of the company never to look back
00:39:05
even if it is the conservative hundred fifty megawatt hours forty or forty
00:39:09
five million dollar type of torn or what we've never look back
00:39:12
we need to be in the aisle three to five players in this industry on get out
00:39:18
there's no boutique okay and you absolutely committed to start working day and night now in the remaining five
00:39:25
months and the uh to catch up with what we could not too into false seven something
00:39:35
this is not me speaking this to respect those reporting falls magazine online version at least
00:39:42
okay you will see a statement by to at least in orange county
00:39:47
and i'll take you through that you please follow my as a few words here
00:39:52
this is the market has been around three hundred million for energy storage this is outside
00:39:56
of transport which is going to be more than ten times to four billion
00:40:01
all the slip enough ideas all this over a period of five years
00:40:07
okay if you get today's pray twenty sixty as a number four hundred million market
00:40:13
what is the total but we get twenty million what's our market share
00:40:19
the other company which is not all five percent market share in energy storage outside of transport
00:40:27
we had a company which is not all not all five percent market share or white
00:40:32
i think some clap would be nice i can i can i hold ah ha
00:40:42
i'd also like okay
00:40:44
alright i maybe it's difficult to believe because of all the problems we have been through but
00:40:48
that's a fact this i'm not i'm not speaking does not management doing some cell speech
00:40:53
these are facts we're operating in this market despite the difficulties are control for funding which
00:40:59
i'm sure really transparently video okay the fact is we continue to win business
00:41:05
we're we haven't order which we need to deliver this within this year with the dutch utility
00:41:11
building a hybrid story system with live you an hour batteries
00:41:16
will be beautiful solution should be in operation by for school the next day
00:41:22
flywheel and looking battery system
00:41:25
i'm not sure it's first in the word or not but it's ugly very
00:41:28
exciting one there are specific application where you can combine the two storage
00:41:32
technology so that's a good one we recently an onslaught when was that you
00:41:36
had last week last year where we have announced that we're building
00:41:41
electric because charges which battery storage in full public domain
00:41:46
people charge different brands of cars on the highway
00:41:51
between toronto and want to bore some place in in the middle of nowhere in canada okay but storage
00:41:58
the cost will get charged by the battery battery will trickle charge from the great
00:42:05
we are the storage provided in that situation is the false public infrastructure project in the word
00:42:11
in the lower this didn't happen yesterday you were part to use this to get very out today
00:42:18
and containing it even charges elected because charges this time if well actually
00:42:24
this insulation it'll be in heathrow airport or charging electric taxes
00:42:29
we'll provide around and your battery pack you know the full system provided like
00:42:33
the canadian project okay we're just providing our battery packs good enough
00:42:39
this is a huge market as elected because because obviously need charges
00:42:44
and charge just cannot always be just taking the power from the great and put in
00:42:47
the car more the casket charge more storage you need otherwise alter the great
00:42:55
well we haven't been in business
00:42:57
we haven't been in business in all markets in commercial and industrial
00:43:01
i mentioned very briefly we'll just take your word for
00:43:05
two orders one conform delivery of one megawatt hours and second will be probably use should be in q. one
00:43:11
of twenty eighteen this is a standard forty four to look what she can do everything in sight
00:43:17
battery word are ready to connect and this is what commercial cost was behind the beach
00:43:26
we continue to have trust of almost six which is an important
00:43:30
customer and build an important customer of look for sure
00:43:33
i mean to each of us were business already spoke about that i would
00:43:37
like to particularly emphasise the relationship you know was it scored electric
00:43:41
this is the joint development agreement which envisages douche deli
00:43:46
about five hundred electric buses what three years
00:43:50
okay in europe okay what's the beauty of this relationship scored electric is
00:43:55
you would order they look much in terms of heritage history
00:43:58
okay they build drive train our train for all kind
00:44:03
of elected buses trolleys trains costs what have you
00:44:07
all battery pack and be together create a global solution part electric vehicles
00:44:13
which could be sold independently by score though as a
00:44:17
package on independently by the crochet as a package
00:44:21
maybe sell be able to get right to it then they still they'll take or battery pack
00:44:27
both companies are independent and go to market in sales a side of it so we signed up for it
00:44:32
but is it pretty tested solution it's issue which software development to create a common software
00:44:39
for it to make it such very exciting partnership results will be tomorrow
00:44:44
but we're talking about score the electric car largest integrated video
00:44:49
it's not a small thing seventh largest in the world
00:44:53
that that is significant potential on this and no in fact to stefan looses leading that if
00:44:58
you have questions stuff and we'll be able to give you more details about that
00:45:03
we continue to win business just by the difficulty
00:45:08
in order to try to conclude this bit clarity so what have we learned
00:45:12
if you asked me the question which is a better what and what didn't up on the failure of raising part
00:45:18
okay from in situations and what i what to do about it that's what i watch it
00:45:26
first and foremost i play in last two years maybe that absolutely chance one second
00:45:32
it's no longer already several small battery packs in evil about
00:45:37
which is a big city in switzerland but a lot
00:45:40
of people don't know that it is okay i found there today to build projects all over the world
00:45:48
okay we have transformed the company twenty seventeen will be impacted but if you
00:45:53
can forty minute pocket decide okay what is it we're gonna do
00:45:58
one paid that confuse business model too many markets right i can't control history nobody can
00:46:05
not even jesus christ times times gone i can't change ten years of last making
00:46:11
okay but we can change the business model make it sharper okay and the plan is i'll take it to a little
00:46:17
bit more detail to create basically three divisions if you go
00:46:21
to commercial business units one focus on stationary storage
00:46:25
one focus on the chance for business and all the i. p. no hole what
00:46:30
you'll manufacturing will stay in the parent company all will buy the project say
00:46:35
make no mistake about it but more focus on different markets
00:46:41
okay as it is on top that we may have to let some businesses goal without having those discussions as we speak
00:46:49
what else you're doing we absolutely want to lower front up so fast roller for me
00:46:56
as you have seen thanks to whether parker and brought we got the fresh money
00:47:01
we have to do it right issue stroke allows private placement in october timeframe
00:47:07
and then as publicly announced i'm ready to share this would you be able to just do a second listing of the company
00:47:13
in north america the bias being canada final decision has not been made by the board devices
00:47:20
canada because we seem to be somewhat respectable nodding get a larger stationery stores project
00:47:27
probably charges infrastructure commercial industrial customer so we have a significant amount of
00:47:32
momentum custom until we get invited for almost every big beating
00:47:37
so it looks like we have the right moment on in that good aim
00:47:41
is to do the second listing white containing the listing here in switzerland
00:47:45
so have no where confusion about that that second listing we aim to generate significant amounts of capital target
00:47:52
being not less than seventy five us and then or for the company for years to come
00:47:59
this incremental funding on so typo just only shareholders i think i
00:48:03
have almost run all the goodwill from mister lobby adam
00:48:07
gordon parker everybody has invested a different stage in this company but the capitol media
00:48:12
such that it needs to we need to go too much deeper pockets
00:48:16
the without the shareholders company would be here but not to go where you want to be hundred million to to flip two
00:48:21
billion type of turnover company didn't please hearted but eighty two hundred billion is next to if you had to get
00:48:29
wanted to fifty by your twenty twenty uh twenty twenty one okay so having that
00:48:35
there's actually a goat will require capital we aim to raise not
00:48:39
less than seventy five million us otherwise or not that okay
00:48:44
and we need to build the business had justification to us that kind of capital lot of hard work is to be
00:48:49
done with of course are like six months we aim to do with this listing in q. two off twenty
00:48:57
s. things progress okay be these entities you see here
00:49:02
stationary storage business unit and each transfer business unit
00:49:06
nothing stops us to open the capital the other strategic shareholders
00:49:11
into that and for that have capital efficiency more capital needed for the business
00:49:17
we we continue to work in getting a structure partnership our project finance nonstationary storage
00:49:23
a lot of what has been done we should announce some success in
00:49:26
the coming months having significant markup project finance capital by the company
00:49:34
last not the least that business has to continuously improve it all aspects particularly margin and all efficient
00:49:41
you're using the capital i want to make two three things one at first and foremost
00:49:47
we have the support of politician or a good partner and the
00:49:50
board to make an acquisition in energy management system software
00:49:56
this will be made public today for the first time you said at the high level what we want
00:50:01
to do i'm i'm going to share this with you very publicly today that the aim to
00:50:06
acquire a company's asset to start a company via buying the software from this company in united states
00:50:13
it is in the space of energy magnet systems offer that completes all full vertical for
00:50:19
on the colour business plan that annotation billy add three and a half percent ross much
00:50:27
but project pa stationary business i'm not talking about the global or should i feared hapless in pa station it's
00:50:34
it's very very significant acquisition and uh we have the support was share more details we knew what
00:50:40
i'm ready to standing committee today subjected the funding coming will complete this transaction within this yeah
00:50:47
okay that's a significant part of it
00:50:50
and we do that we have a factory in germany more and more expect this from the factory
00:50:57
in germany we'll focus transform business what in house production ourselves in germany l. to you
00:51:04
pa stationary storage business more and more people buy from like so oh gee as opposed to building it
00:51:12
because the final the bill also for stationary that request to watch on capital expenses insult factory
00:51:19
this factor you had with all this blessing has been a gas
00:51:24
they use the word i'd use it it starts cash
00:51:27
and has mean about six to eight million for every one last or whatever since twenty twelve
00:51:33
okay i i don't want to put more complex in manufacturing of cells
00:51:39
we'll focus transport business an l. g. of production and additional batteries
00:51:44
the graph a stationary stories will buy from the market
00:51:47
i believe make significant sense to double the capacity in germany ought
00:51:52
to another man manufacturing in china india or someplace else
00:51:56
but these little replant to put more complex and double it without having since
00:52:02
so they'll be that capital efficiency and last at the least importantly
00:52:07
i'll start with myself this is written in court because i don't
00:52:11
want to ride everybody's salary or okay my senior management
00:52:15
starting with myself as agreed to not take oneness in cash convert
00:52:21
that into shares of the company on will be cheaper topic
00:52:27
we're not just talking powerpoint you're talking about was still commitment skin in the game and i'm happy just happy
00:52:35
i am pleased okay that i lead did like big cutting
00:52:39
fifty percent my composition converting dishes and deliver topic
00:52:45
so i i really would but was that commitment not asking others to do without being a nice
00:52:50
hopefully that will give you some assurance that this management is c. s. is not
00:52:54
about all point is about was that commitment in addition to the professional
00:53:02
with that i'm almost at the end of the presentation last to slice i will leave a lot of details of
00:53:08
restructuring but some details that important so that you don't read in the press you foresee it for me
00:53:14
we talked about three divisions out the company okay first and foremost in
00:53:19
so it's a led let crochet uh say the model company
00:53:22
will retain i. p. sellout indian production which is in germany attendees
00:53:28
in switzerland and germany production is in germany what your design
00:53:33
we are going to more due all modern manufacturing easing you've gotten all my jokes aside when you
00:53:39
come in few months time you'll see come late more you life actually working every day
00:53:45
okay that is stored here in evil avenue this for okay so that morgan many factual continue here
00:53:54
what we would do is actually we'll start of or something something
00:53:59
for the units which are commercial stationary business you need an transport
00:54:05
okay we'll take a long term supply contract on these units
00:54:11
and if you have capacity i don't rule out right people they contacted us to manufacture so it's hard
00:54:19
on what use water abort
00:54:22
okay so there would be an efficiency gained here and efficiency gain here
00:54:28
okay b. we'll bring that yeah that's energy madness at some software acquisition
00:54:33
in this business unit and make it more or less stand alone
00:54:37
in terms of ability to deliver projects mean and delivered project
00:54:43
similarly for transfer business we'll keep the systems integration the charts
00:54:48
for b. m. s. into this coming in it
00:54:51
so that there is real intellectual property knowledge engineering and work it as a
00:54:56
standalone organisation which sourcing the basic technology from the products of light division
00:55:06
that's the principle of this organisation and what's the purpose
00:55:12
of that first and foremost make it capital light
00:55:15
secondly you optimise the operating expenses tortillas allow the value
00:55:22
up these businesses without having a mixed right yeah
00:55:26
it's not going to be done in day one there are a lot of common things here okay but still of my question to you is why
00:55:33
four score the next year generally twenties eighteen this'll be operational also
00:55:40
okay that's what we want to do and then please take these the sensitivity we have
00:55:46
not decided what to do with the legacy business and talk about portable and distribution
00:55:51
do we keep it as almost length company within look or she being on the show
00:55:56
or does indeed do we sell it to a strategic uh on the less
00:56:00
most synergy with that business that is still being discussed by the board no final decision has been made
00:56:09
but that's broadly the plant what have a lower problem fail capital raised on the also what
00:56:17
we're lower is one thing we need to sharpen or message tell businesses european and also
00:56:23
not stopping the business we're not anymore right so sharper organisation more
00:56:29
capital efficient more or opaque slight if you like that word
00:56:35
that's pretty much what it is all like to conclude i'm
00:56:40
on two minutes later okay like to conclude the presentation
00:56:43
by giving you the best outlook i can give you today it is not a white any tough questions it is to tell you the truth
00:56:50
i cannot give you the precise numbers for twenty seventeen today as you know the funny i just arrived
00:56:57
i need to look at the funding go back to our suppliers and see what
00:57:01
we can do in the remaining five miles to give you from outlook
00:57:04
i will give a formal outlook getting into into those in what we love september tenth of september
00:57:11
so let me a little bit more time to do that but what i can already committed is the following
00:57:15
if the forming isn't place if the funding isn't ways we have a very robust order book
00:57:22
to deliver significant growth in twenty eighteen and be very very close to the debris
00:57:27
keep them to work and off twenty eighty two words and off twenty eighty
00:57:34
beagle daddy work the transfer contracts i've already mentioned to you i don't need to read all of it
00:57:39
you will hear what six months some significant contract going
00:57:43
from framework partnership to supply contract concrete supply contract
00:57:49
most of that impact would be from twenty nineteen so we're clear maybe q. for twenty eighty
00:57:56
but not only that but people conform to supply contracts
00:58:04
we and this age that we will absolutely continue all success lately
00:58:09
increasing project finance non recourse project finance i'm talking about all balance sheet
00:58:14
so that no need for comparing capital in like what should to be putting project it'll beep or directly in the project
00:58:21
we we absolutely certain that so that the announcement that happened shortly
00:58:27
including finally disclosing q. does mystery european utility because it's
00:58:32
a large utility they have a lot of process
00:58:35
what i expect almost anybody shortly it is a thirty three meg or call project in germany
00:58:40
the exclusivity agreement with them we have to meet one conditions president before it can
00:58:45
be made me okay well like the project is on very much on
00:58:51
last not the least i already mentioned the new organisation i talked
00:58:54
about will be operational and gently from january twenty eight that's
00:59:01
that's pretty much what i had to share with you i'm looking forward to your questions

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