Good morning, everyone, and welcome to Kempower's Q2 2026 results presentation. My name is Calle Loikkanen.

I'm Director of Investor Relations, and it is my pleasure to introduce today's speakers: CEO Bhasker Kaushal and CFO Jukka Kainulainen. The gentlemen will walk us through the highlights and results of the quarter and the first half of the year, and after the presentation, we will, as always, end with a Q&A session.

Without any further ado, let's begin. Let me hand over to Bhasker.

Bhasker, please, the floor is yours.

Thank you, Calle, and good morning, everyone, and thank you for taking the time to be with us today. Starting with the key messages for the second quarter, we delivered double-digit revenue growth, our gross margins improved sequentially, and we entered the third quarter with 18% higher backlog.

Revenue was up 10% in Q2 and up 28% for the first half of the year. Now, where's this growth coming from?

North America, up 54% in the quarter and more than doubled for the first half. Aftermarket, up 35% in Q2 and up 40% in the first half.

Next, gross margins, and this is one that I'm most pleased with. We came in at 47.2%, up almost 2 percentage points sequentially versus the first quarter.

That's a strong signal that our product cost reduction program is working, it's ramping up and delivering results. We've achieved around 4 million euros of savings in the first half, which is helping us absorb and offset real price pressure.

On profitability, we've improved 40% in the first half year on year. Operative EBIT went from minus 9 million euros in the first half last year to minus 5.4 million this year.

Now we're closing the gap to break even while continuing to grow our top line. Further, we've launched a fixed cost calibration program to calibrate our cost base to the market conditions and to the new strategic priorities that we announced in May.

Now I'll talk a little bit more about this program later today. Lastly, the order backlog is 138 million euros, up 18% versus the same time last year.

That's a solid platform going into the coming quarters. We have refined the top end of our revenue growth guidance.

Now it is 10% to 25%, and the EBIT improvement guidance is unchanged. Now, let's look at the financial highlights next.

Let me walk through the four buckets very quickly. First, order intake: 69.8 million, which is down 6% year on year in Q2.

Now that's partly because of timing, a couple of large deals that have shifted out, and some of it is softness on the CPO side. We still have strong momentum in adding new customers.

14 new customers acquired in the quarter. A bit of an order timing story here in the quarter, but for the first half of the year, order intake is still up 4%.

Second, revenues: 68.6 million, up 10%. Our growth was broad-based: strong momentum in APAC, in North America, and aftermarket up 35%.

Third, profitability: operative EBIT was minus 1.9 million, essentially flat versus last year. Overall, when you look at what we're doing, we've grew the top line 28% through the first half.

We've absorbed real price pressure, and we've held profitability steady in the second quarter while our cost programs are ramping up underneath. That drives an upward trajectory from here.

Finally, cash flow: operating cash flow was minus 11.7 million, and working capital was temporarily higher this quarter, mostly due to higher receivables tied to some longer payment terms that we have from some bigger strategic partners. Now it's great that we're driving strong growth with these strategic partners, but in the quarter, this shift in mix drove temporarily higher receivables.

Overall, cash management is a key focus area for us, and we expect cash flow to improve in the coming quarters. Overall, our liquidity remains solid at 102 million.

Next, let's look at the market context, as that also explains our guidance move. Let me talk a little bit about the leading indicators and the lagging indicator.

The main leading indicator for our demand is battery electric vehicle registrations and sales. For passenger cars, the underlying BEV growth is diverging by region: Europe up 27% in the quarter and for the first half.

That's quite strong fundamental growth in the electric vehicles. North America is going the other way; it's down 24% in the first half.

On commercial vehicles, e-truck and e-bus registrations, the data comes with a one-quarter lag, but that grew 37% in the first quarter of the year. That means that the heavy-duty market also continues to show quite strong growth.

Then the lagging indicator, which is the public DC fast charging new installs. Now this was down 14% in the quarter overall: North America up, but Europe down 19% in Q2.

What's happening in Europe? There's some market consolidation taking place in the CPO segment.

We've seen a slew of announcements here in the last quarter, plus the operators are focused a bit more on utilization and profitability in this moment versus accelerating their network expansion. If you step back, it's a very healthy growth signal on electric vehicle growth, which is the key leading indicator that drives the charging infrastructure market.

That network capacity gets built, driven based on the strong growth in the number of electric vehicles on the road. In the near term, we're seeing some quarter-to-quarter fluctuation in terms of the new installs.

It's really a question of timing, and there's some lag between when we see registration growth in EVs to the charger installations. That's why we refined the top end of our revenue guidance based on what we're seeing in the market and how we are responding to that.

One, our diversification into Europe outside the Nordics has been strong, and our aftermarket growth partly offset that. Importantly, the cost programs that I will talk about mean that we are holding our EBIT improvement guidance regardless.

Next, let me talk about our performance in Europe. In Europe, we're continuing to execute on our strategy.

We've talked about we want to grow across continental Europe, and we did a solid job in this quarter. Europe outside Nordics, order intake up 16% and revenues up 9%.

We have strong wins in France and Germany. We've added 12 new customers in the quarter.

The Nordics came down, but the context is important here. The Nordics were 32% of revenue this quarter, down from what was 40% a year ago.

The rest of Europe is growing into a much bigger share for us. A couple of customer highlights that I really want to call out: we signed a global framework agreement with APM Terminals to supply charging infrastructure for port terminals, one of the largest port operators in the world.

That's heavy-duty charging. That's global.

That's exactly where we want to be, and we're very excited about this partnership. Next, also the first Lidl in Finland with Kempower charging.

It's retail destination charging with a premier retailer, and it's a segment that we are quite bullish about, and we have some real runway for growth, and this win gives us some wind in our sails. Next, let's look at North America.

We've talked about North America as one of our growth engines, and we can see it in our revenue numbers. Revenue was up 54% from 7.7 to 11.8 million.

Strong growth across both public charging and fleet. Now, order intake was down 37% in the quarter.

It's timing, pure and simple, demand shifting between quarters, not demand loss. We've added two new customers.

Our pipeline is healthy, and we remain optimistic. The proof of that is the wins that we're seeing the North America team put up.

A couple of examples: Blink Charging expanding 14 sites across the U.S. East Coast through the course of 2026, and EV Realty's truck charging hub in California, one that I visited, 74 KemPower satellites and two Mega satellites.

The second one tells you where the puck is going. Heavy-duty truck charging at scale in North America, and that's the segment that's our strong suite, and that we are very excited about.

Next, a quick one on how we're doing on our strategic priorities that we talked about at our Capital Markets Day in Oslo in May. Five priorities, and we've made real progress on all.

First, winning with customers: 14 new customers added, APM Terminals global framework signed, an extended partnership with Circle K across Europe. We're really grateful for the trust these blue-chip customers are placing in us.

Second, technology leadership: we had two launches in the quarter: Mega Satellite Flex, which is our first dispenser that charges with CCS and MCS, and I'll spend a minute on that next. ChargEye: we launched an analytics dashboard that helps the operators run their networks more optimally.

That directly serves the focus on utilization that I just talked about that CPOs have. Third, lifecycle solutions: this is aftermarket for us.

Service levels are up. We've got 35 percent growth in aftermarket in the quarter, 40 percent up for the first half.

These are higher margin, higher recurring revenues, stickier revenues. We talked about that, and we're very excited to see this growth come through.

Fourth, operational excellence: our cost program is on track, around 4 million achieved through the first half of the year, and I'll talk a little bit more about that in a minute. Underneath it all, it's the foundation of building and continue to build a winning culture and a team.

We've strengthened the leadership team with the hiring of a CIO and a CTO to continue to help scale the organization, and our KemPower 2.0 strategy that we shared in May, it's being rolled out actively across the company. One minute on the Mega Satellite Flex product, because this is a really exciting one.

In very simple terms, this product can charge either high-power CCS, up to 560 kilowatts, or megawatt charging, up to 1.2 megawatts. The beauty is it's one asset, it's one product that addresses both standards for our customers.

It works with both new and existing distributed systems, and it's on sale now. Why this matters for our customers?

Because you look at fleet operators and charge point operators, they're looking at a mixed future, which is CCS today and MCS coming for heavy trucks in the future. This product lets them serve both from a single asset.

It's a simpler transition for them. It drives higher uptime.

It lowers the total cost of ownership for our customers. For us, it continues to expand our reach into the truck and heavy-duty charging without building a completely separate product line.

That's the beauty of our modular platform. Very excited about that product rolling out.

Now, next, I do want to pivot and talk a little bit about our cost architecture. We have two programs running.

The first one that we've talked about, it focuses on the cost of the products that we build. The second one that I'll talk about today, it's what it costs to run the company, and we're addressing both cost structures.

First, the product cost reduction. Our target that we shared is 10 million-plus euros for 2026, and we've banked already around 4 million year to date, and the program's still ramping up.

We're on track to hit or beat this target. How?

It's coming from procurement, where we have new RFQ rounds to get lower prices on things like PCBAs. This, by the way, is despite increase in the cost of some raw materials.

Then we're driving subcontractor consolidation in our production environments, where our R&D teams are constantly redesigning parts that, by the way, help cost, but also help our greenhouse emissions, a lower footprint on that as well. Now, the results of these actions and savings, they're already becoming visible in our financials.

You can see that in our gross margins: gross margins up from 45.3 percent in Q1 to 47.2 percent in Q2. We expect more of this impact to come through in the second half of the year.

Now, second to the right, this is the new program. It's fixed cost streamlining, and we're launching this program to align our overhead cost base with what we see as the current market conditions and also our new priorities that we announced.

We're targeting more than 5 million euros in fixed cost savings. Savings begin towards the end of 2026 and they really ramp up through the first half of 2027.

At the bottom of this, this is about creating a leaner, more agile organization: lean processes, tighter operating model, better spend management to drive all of this. Look together, these two programs are why the EBITDA improvement path for us is unchanged, even as we trim the top end of our revenue guidance.

With that, I'll hand it over to Jukka to take you through the financials in a bit more detail. Jukka?

Thank you, Bhasker. Let's move on to quarterly financials.

Overall, I would say we had quite a mixed performance when looking at quarter two overall, of course some negative areas of development, but some positive highlights as well, like always. Starting from order intake, like Bhasker commented, it was down by 6 percent, not due to demand, but due to timing of orders.

When looking overall in H1, orders grew by 4 percent year on year. When looking revenue, we continued growing revenue, 10 percent in quarter two, 28 percent when looking at H1.

Strong results when looking at revenue progress overall. Also one highlight regarding the revenue was our aftermarket growth: 35 percent growth when looking at quarter two overall.

Positive highlight also our sequential improvement in gross profit margin: we are now more than 47, 47.2 percent. We were able to improve thanks to unit cost reduction program.

Then when looking at the operative EBIT, it was around flat when looking at quarter two, but we were improving it significantly year on year from negative 9 million last year to negative 5.4 million in quarter two 2026. Overall, like I mentioned, a little bit mixed results, but positive highlights, continued revenue growth, improved margins, and overall in profitability-wise, even though we are not there where we want to be, we are in the improving trend, which is important as well.

Then let's move to orders. Orders for the quarter two was soft, down 6 percent.

Of course our order generation overall is a little bit volatile. It's up to customer decision making, and it's good to remember that we were actually able to grow our orders six quarters in a row before this quarter.

Timing of orders, especially in North America, resulted in decline in orders of 6 percent for the quarter. Overall H1, like you see, we are up in order intake by 4% overall.

Highlight of the regions was Europe outside Nordics, especially big EV countries, Germany and France, where we were able to grow the orders during the quarter. Really important one is also order backlog, really strong order backlog: 138 million euros, 18% up year on year, which is really positive when looking at our revenue development for H2 2026 overall.

Then moving to revenue, a little bit repeating, but 10% growth in quarter two, 28% growth in H1. Really strong result in that sense.

All the other regions grew their revenue, except the Nordics, what we have been expecting and planning a whole year. Strongest growth, North America, more than 50% growth in revenue, APAC, Middle East, Africa doubling the revenue as well during the quarter two.

Then highlighting again our recurring revenue, revenue from services, growing 35% in quarter two, 40% in H1, and we have already 6% of our revenue base as recurring when looking quarter two numbers. Then moving to the profitability, it was good change in our gross margin trend.

We were able to now sequentially improve our gross margin, it's up from 45.3 in quarter one to 47.2 in quarter two, thanks to our successful execution of unit cost savings program, which generated around 4 million savings in our unit cost in H1. Of course, we are still down year on year, but this is when looking the progress ongoing forward and our trends overall in the margin, really positive result.

Operative EBIT flat year on year, but this 3.6 million improvement year on year when looking H1 operative EBIT is a good development as well, even though we are not yet there in the profitability, of course, where we want to be. The direction is good, and that also matters.

Then let's look the cash flow and liquidity. Operating cash flow, negative by 12 million euros for the quarter, and main driver for that was increased net working capital.

In the increased net working capital, our accounts receivable increased. What was the reason for that?

Share of our sales in the strategic partners have increased, and that customer group was driving up our accounts receivables and causing the temporary negative operating cash flow for the company. This is something we also address a lot, and we expect the net working capital to come down significantly when looking quarter three and quarter four.

Overall, our liquidity remains strong, 102 million euros, and we actually just renewed one of our RCF, 40 million euros for next four years. Then at the end, I would ask Bhasker to join here.

Thank you, Jukka. Perhaps just a quick summary of Q2.

We've specified our outlook for 2026. We now expect 10 to 25% growth over the course of the year versus the previous range of 10 to 30%.

This is on a 2025 base of 251 million, and we've lowered only the top end because of the slightly slower market development that I talked about in the CPO customers that we see in the near term. That market softened on what was the more ambitious end of the range.

Our activity with fleet customers has remained very strong. Our longstanding CPO customers, we see them gradually increasing their level of investment.

That gives us confidence for the back half. The outlook for operative EBIT is unchanged.

In 2025, it was minus 12.4 million. We still expect to deliver a significant improvement versus last year.

We're committed to the profitability improvement trajectory, and as I stated earlier, the cost programs that we've launched, we'll actively be ramping those up. That supports that.

To summarize the quarter, three things to take away. First, we're continuing to grow and our growth is broadening.

Revenue up 10% in the quarter, up 28% in the first half, North America up 54%, APAC and EMEA up 166%, and 138 million backlog going into the third quarter. Second, we're executing the strategy well.

14 new customers acquired, Mega Satellite Flex launched, aftermarket up 35%, the product cost programs delivering as planned. All of these are good proof points of the strong progress that we're making as a company.

Third, our margin and cost architecture is improving. Gross margin up sequentially two percentage points, and the fixed cost program launched to build a leaner, more agile company and business.

Broadening growth, strong strategic progress and an improving cost base. That summarizes our quarter.

With that, let us open it up for questions. I'll invite Calle and Jukka to join me on the stage.

Thank you.

Thank you, Bhasker, and thank you, Jukka, as well for the presentation. Now let's continue with Q&A.

We will first take the questions from the conference call line and then move on to questions through the webcast. If you have any questions on the webcast, please do type in them already now.

Now let me hand over to the operator for the instructions. Operator, please go ahead.

Hello Bhasker and Jukka, and thanks for the presentation. You mentioned some shift in expected deal closings in second quarter, and you also mentioned that increased EV adoption is growing the market going forward.

Should we expect the demand to revive in the second half, or should we expect this kind of new reality where CPO customers are more profitability-oriented and cautious?

Thank you, Pauli. Great question and welcome back from your time off.

Good to see, good to hear from you. I'd say, look, fundamentally, the strong electric vehicle growth that we see, it's great.

That's the fundamental driver for our business. Europe up 27%, North America is going the other direction.

We know the reasons that we've talked about with the policy. Europe, one in five vehicles that are being sold today is an electric vehicle in Europe, right?

That's a very positive sign. I think that gives us confidence.

Now we've seen, on the consolidation front, by the way, I see some industry consolidation as healthy. The industry needs very profitable and healthy players to grow in the market.

I think in the near term, we may see some volatility here. We've seen that already here in the last quarter.

The fundamental underlying drivers point to a growth trajectory. We need to get through kind of the near-term volatility.

We expect a continued growth trend, notwithstanding some near-term volatility. We've seen this market be volatile quarter to quarter, but also bounce back really strong.

That's what we're hoping happens here. The timing, obviously, varies a little bit.

There's a bit of a lag between the electric vehicle growth and the charging installs.

Thank you. Then you mentioned in the CMD that you are developing a new satellite.

Do you think that will the new satellite have a negative impact on orders before the rollout, if the customers are waiting for the new product? Do you expect any of that?

Look, that's a great question, and we are targeting to launch that towards the end of the year, and we're very excited about it. Our customers are very excited about it.

Depending the timing, I think we'll see how the order book plays out on that. I'll tell you, there's a lot of excitement about the product from our customers.

Again, without getting caught up in the quarter-to-quarter, that's something that can really help us gain further share in the CPO segment, in the retail segment, with some of the things that YC had talked about in the CMD. A lot of the features, functionality, performance, cost of how we built that product is very much targeted towards addressing the needs of our customers around user experience and total cost of ownership.

We're very excited about the product. Now, I think, yes, to your question on order book, we expect the order book to grow as a result of that, pending the timing of the exact release.

All right. Then a technical question regarding your gross cost savings.

Is this 4 million euro run rate figure in the end of June, or is it so that you already got that fully reflected in your P&L, that 4 million euros?

Yeah.

Yeah. It's already in our H1 numbers, and that's visible in the gross margin percent, what we reported out in our financials.

All right. Thank you very much.

That was all from me.

Thank you, Pauli.

Hello, this is Nikko Ruokangas from SEB. Thank you for the presentation.

I have three questions, and I'd like to go one by one, starting with orders in North America, which declined clearly from the level where you have shown in the last four quarters. You highlighted there were some order delays, but without these delays, would the orders in North America have grown?

If we think about kind of the underlying level of demand you are experiencing in North America, are we currently closer to the 10 million euros quarterly level or closer to 20 million euros, if you think about your market position there?

Yeah. Thank you, Nikko.

Good question. Look, in North America, you look at the numbers.

In quarter revenues, we grew 54% for the first half of the year. We're up.

We've more than doubled the revenues in North America. The trajectory is upwards now.

Addressing kind of the order intake point, absolutely. That's the indicator for future growth.

Yes, the sales cycle has elongated. Now, having said that, what we are pursuing, our team, Monil and the team there, Monil talked about in the Capital Markets Day, we're getting to substantially larger sites, larger deals, which also funding tied to those deals needs to be secured by our customers.

It becomes a slightly longer elongated sales cycle. The pipeline is very healthy, and we haven't had any losses, more just demand shift.

We remain very bullish about our North America growth prospects, notwithstanding the market. We still have ample runway for share gain and share growth.

And

I continue with this number question. Yes, actually it would have grown the orders without this timing topic in North America.

All right. Thank you.

Then on the CPO topic you already discussed a bit about. How big share are currently CPOs of your sales, and in which geographical areas have you seen this kind of slower development?

Yeah. Of course, depends on the year and on the quarter, but it has been between 20 to 30% of our sales when looking at the history.

We had this slowness in the CPO segment both in North America and Europe. Both key regions were impacted.

Just building on that, our sales to end CPO customers is higher because we also sell through partners, and those partners may be selling to smaller CPOs. Our end customer, that may be actually a bit higher than what Jukka just stated.

Yeah.

Makes sense. Thank you.

Then last one, a bit more technical on order book. How big share of the current order book are you expecting to deliver after 2026?

Go ahead.

Yeah. More than two-thirds of that is for 2026.

All right. Thank you.

That's all from me.

Thank you, Nikko.

Hi. It's Patrick Campbell from Nordea.

Just a couple of questions. First related to the customers and CPOs specifically.

It seems that you've been granting a bit longer payment terms for some customers, which I assume include CPOs as well. Does this mean that the financing conditions among CPOs is deteriorating?

I can take it. In some extent, CPOs impacting there as well, but it's mainly the strategic partners and partner sales, which is impacting on our accounts receivables and longer payment terms.

Relatively less the CPO segment. It's more the partners.

So

if I may follow up, who are these strategic partners then? What kind of customers are we talking about here?

Yeah. So

we have quite a lot partner sales in both key regions, Europe and North America as well. They are the partners where we do cooperation.

Of course, they take care of installation quite often to our clients, and then we, of course, sell our hardware to them. There's quite plenty of those.

It's quite a sizeable amount of our sales. We are talking about more than half of our sales coming through the partners altogether.

All right, clear. Thank you very much.

Then just a second question, perhaps a more generic question. Are you seeing competition intensifying, and how has the pricing environment developed maybe compared to last year?

How much is pricing down? Yeah,

perhaps I can take it. Hi, Patrick.

Look, competition is intense. That's the bottom line in this market, right?

It's not an easy market from that standpoint. It is quite intense.

You could say mid to high single-digit pricing pressure is normal in this market. Volume growth helps us offset that.

Our productivity programs that we're driving helps us offset, more than offset that. I'd say that's kind of the level that we see on the pricing pressure.

Perhaps to your previous question on the terms, look, just building on what Jukka said, there's quarter-to-quarter mix shift between the mix of our customers. In this quarter, just the mix of strategic partner sales was just significantly higher than what we've seen, which temporarily affected our payment terms.

Again, it's good news that, hey look, with some of the largest partners, we're really growing at a very strong level, but temporarily it affected that.

All right, perfect. Thank you very much.

Thanks, Patrick.

Yes, good morning everyone. Two questions for me.

The first one is regarding CPO market consolidation. What could be the impact for KemPower over the next quarters?

The second question is related to the charging point installations. How do you explain this decline over Q2 and what are your views for Q3 and Q4?

Thank you.

Hi, Paul. On your first one, look, the CPO consolidation, some of this is in the rearview mirror already.

It is a bit of noise. The signal is that, look, there's still strong growth.

With stronger CPO players in the market, we already see the stronger players amongst our mix as well. They're actually increasing their investment level.

The ones that are even the consolidators, the ones that are acquiring to get to the higher quality assets, they're, in many cases, replacing some of the equipment so that the assets that they're acquiring, they're replacing the chargers. That also helps.

It's hard to kind of pinpoint how every month quarterly development works, but we're already seeing signs that this is actually, in some cases, favorable with stronger players increasing their levels of investment. We'll keep a close eye, and that's a watch item for us in the next couple of quarters.

I would add also about our customers, CPO customers, some of them have done the acquisition, and we know that some of them are planning the acquisition. That is, of course, positive for KemPower's future business.

Those very customers, we see very strong growth actually in the quarter. Paul, I missed your second question, if you could repeat it, please?

Yes. How do you explain the decline in charging point installations over Q2 and what are your views for Q3 and Q4?

That's a little bit of a crystal ball question, but I think partly explained by what we've talked about, the two factors, the consolidation and a bit of the focus on the utilization and profitability. Again, I think that's some fluctuation from quarter to quarter.

The clear trend that we see is stronger players investing in infrastructure development, driven fundamentally by the growth in electric vehicles. That is the most important indicator, which is up 27%, as I mentioned, one out of five vehicles in Europe, more than one out of five vehicles in Europe is an electric vehicle, which is a very strong trend.

Comes on the back of 2025, where we saw 30% growth in new vehicle sales. That trend is continuing, and I think that's the key indicator that we need to look for for the growth of the infrastructure as well.

And

also clarifying, North America installations actually grew 11% during the quarter two.

So,

Europe were down, but North America was up.

Thank you very much. It was very clear.

Thank you, Paul.

All right, thank you, operator. We have actually a bunch of questions coming through the webcast.

Most of them have already been answered, but there's a few ones, a few additional ones. If we start with the orders, which were delayed, how confident are you that you are able to get the orders which faced delays in Q2?

Look, our teams are working day and night to be able to convert those, but what's most important is doing right for the customer, matching their timing, matching their funding, and we work very, very closely with our customers and our partners. We expect a number of those deals that have already been closed here in the first couple of weeks, and we expect that to continue through Q3 and beyond.

Perfect. Then a question on the loan covenant, maybe Jukka to you then.

You now fell into net debt for the first time since the IPO. Can you please inform us what loan covenants you have?

It's a great question. We have gearing as our covenant in all the RCFs, basically.

That's an answer.

And

there's quite a lot room to play in that gearing level where we can be. That's the answer on the question.

Yeah. All right.

Thank you. Then about the market shares, should we interpret 10% sales growth versus the public DC fast charging installations being down 14% as a sign of market share gains in your view?

Has this been a constant recurring theme?

Yeah. It's a great question, something that we look at very closely.

You could obviously make the interpretation that, look, when the market's at 10 and we are at 28% through the first half of the year, that's what we look at as a clear sign of us gaining share. We also know there's volatility.

I would say yes. That's an indicator that we look at very closely as a measure of our success.

There's, accounting for all factors amongst volume growth, price, as well as the mix between different segments. Probably the most closest indicator of share gain, yes.

All right, thank you. Then finally regarding the gross margin, gross margin improved from Q1.

What should we expect for the coming quarters?

Look, our cost programs, I talked about the product cost reduction program. They're still ramping up.

That 4 million that's been banked, the curve when you look at what it costs for us and how much is our cost target to take out, we're only halfway through that. That program only ramps up.

Yes, we expect more. We expect higher gross margins, but we also play that against continued revenue expansion and above-market revenue growth.

As we think about gain, that price becomes a factor. There are certain deals, especially in certain regions that we're looking to grow and get a foothold.

The entry point on those may be slightly diluted margin. We constantly play with the effect, but our goal is over a period of time to be able to expand, defend and expand our gross margins.

Very good. Thank you.

That was all the questions that we had for today. Thank you, of course, for the active participation and thank you for the answers.

Now before we close the line, we want to end with a customer video. This time the video is about the Malaga bus depot in Western Australia.

It's playing a key role in moving public transport towards zero emissions by installing one of Australia's largest electric bus charging systems. With that, have a good rest of the day, enjoy the video, and see you next time.

Most of the bus fleet in Western Australia operates out of large-format bus depots like this. On the journey to conversion of the bus fleet from diesel to electric, it's absolutely key that we convert these depots to support that electric operation.

G'day, I'm Patrick Winter. I am the Public Transport Authority of Western Australia's principal project manager for the depot infrastructure conversion projects.

These projects align with the PTA's broader sustainability goals by essentially aligning the organisation with the Government of Western Australia's climate policy, the Sectoral Emissions Reduction Strategy, and also the Government's standing commitment to replace the entire diesel bus fleet with electric buses. These projects represent the start of total conversion away from a diesel and gas-powered bus fleet towards an electric-powered bus fleet.

The Malaga project is one of important significance to Kempower. It's a chance for us to bring our scalable and modular technology from Finland to Australia and demonstrate how it enables the electrification of bus depots in a very simplistic, modular and scalable manner.

We are looking at how and what requirements the end user and the operators have, and we work in a collaborative manner to make sure at the end of the day, the public who access these transport services with zero-emission buses do get what they require. We are a sales and service partner for Kempower for Australia, New Zealand and the United Kingdom.

We specialise in ensuring that large projects such as bus depots are executed well by making sure that they understand the product. We work with the customer, we work with the installing party, the EPC, to ensure that everything's optimised right through for the installation, through to the maintenance and SLA process.

The Perth Transport Authority really sort of have a grand plan for how they're trying to electrify. No buses from now on are going to be electric, they need to be rolling through their different available sites, looking at the various types of approach to site, what's easy to do, what's not, where the different routes are.

Again, we've got 100-plus buses in this one depot that are now working with a local installationer manufacturer to ensure that we have a seamless transaction all the way through to full electrification. What makes the Malaga depot unique is that it was an existing bus depot that we had to electrify.

We had to work with the existing operators to mitigate any disruption to their existing operations, and it's a great example of how we can electrify an existing depot. Kempower's charging solution was perfect for Malaga because of the layout of the depot.

It's a brownfield, which means that there's limited room between the buses, which means the very skinny satellite system worked nicely without too much displacement of the vehicle. The power module, the distributed power system that Kempower offers, was just ideal, and this is why the customer has chosen this product because of everything that it offers.

Since commissioning, the system has performed really well. We're seeing constant charging of the buses.

The load management system is stable and working really well. The feedback from the depot operators and the drivers has been really positive with the electric buses, and they have visibility across the whole site to manage their charging, and most importantly, the buses are going out with the right state of charge to complete their daily routes.

Operators are getting a real chance to see how simplistic the depot layout is and how our charging infrastructure is very user-friendly in terms of for the drivers to use, and that overall it's a site that offers very high reliability and high uptime. My advice entering into this space, it's complex, clearly.

You need a good partner. You need expert on your side.

You need somebody that understands the electrical installation component, the regulations, the quality process, the charger and how it integrates, how it pulls through to load management, how it pulls through to software for management, running the day-to-day operation. It's a complex beast.

You need a partner on your side as early as you can to make sure that you're covering the risk and not finding out the hard way. The advice I'd give anybody starting a fleet electrification journey is to plan early.

Understand the totality of your operation, right from your regular everyday services all the way to your special event and unplanned rail replacement services, and understand how all of those tie together with the depot infrastructure to actually give you an operational outcome. You need to understand how your fleet operates.

That's things like dwell time, your routes, what state of charge, number of kilometers your buses do. Once we have that information, we can provide some modeling.

That modeling will make sure that we select the correct hardware and the correct solution for your depot. Most importantly, you need to engage with your utility early on, because if large capacity upgrades are required, they're going to take a long time.

Western Australia is a very good reference point in terms of how these projects must be delivered. Engineering design, the value add and the project management.

I strongly believe we have the right amount of partners who have understood what are the requirements ultimately of the end client and taken that as the forefront in every decision-making point. I think that's one of the key lessons everyone in the industry can learn.