Einride AB (ENRD) March 19, 2026 Capital Markets Day Transcript

I have got, other than the disclaimer, I have also got myself, Ruz Bechali, CEO of Enright. I also have Henrik Green, who's our CTO joining me, and Anubav, our CFO, who will all be presenting to you today as well. So, and what we plan to answer over the next sort of 25, 30 minutes that we'll spend here before we go into Q&A, is a little bit about what is it that we actually do, how does it work, how do we bring it all together, And then, of course, how do we capture value on the marketplace? So starting at the sort of the first questions, what is it that we actually do? What is Enright? At the core, we're a platform technology company helping our customers, who are some of the world's largest shippers, transition their logistics from where they are today, diesel and manual-based platforms, into electric and autonomous. And we'll talk more about why we're doing that and how we're doing that, of course. And at the highest level, the way we do that is through the deployment of our Saga AI platform that sits in the middle and orchestrates the entire ecosystem and the deployment of electric and autonomous assets in that platform. So we were founded back in 2016. We went live with our first customer in 2020. We now have live operations spanning across seven countries with 30 different customers from Dubai, Europe, and the U.S. We've accumulated about $92 million of ARR in our signed contracts, of which about $40-$50 million is deployed and hitting our books today. And perhaps even more important, and we'll talk more about this throughout the presentation, is the $800 million plus of potential ARR that we have in our joint business plans. These are scaling plans that we've set together with our customers, outlining how we're going to continue scaling our business together with them. Throughout this journey, we've also been very fortunate to be backed by some of the world's best investors. You see some of the examples here with EQT and Capital Group, for example, being our two largest shareholders. So taking a step back and looking at the market that we're addressing, what are the issues on the market? First of all, we're addressing the transport service market. It's about a $4 trillion market per year with three key sort of problems that we're trying to solve for the industry. One is the inefficient use of assets. So asset utilization across the industry, across the world, is low. U.S., for example, the asset utilization sits around 11% across the fleet. So that is one of the key issues that we have. The other part that's a big issue for the industry is, of course, the driver shortages and the inflationary cost that that leads to. And, of course, then the fuel costs that comprise a big portion of the total cost within the industry. So how do we solve that? We solve that through our AI-optimized planning platform that sits in the middle and orchestrates the entire ecosystem and the deployment of electric and autonomous capacity into that market, addressing all of these key sort of aspects of an issues on the market if we drill in a little bit on that point because I think it's an important point to make it and you look at what is what is the costs for within the industry the three biggest cost buckets within the within the industry and within transportation right you've got the asset cost you got labor costs and you have energy costs and through our platform we're addressing all of these three as opposed to only focusing on one we're addressing all of these three because ultimately this is about creating a superior cost structure for the deployment of capacity in the market. And we're also addressing them in each stage of maturity of our technology and our business. So starting with asset costs, which is ultimately the use of the assets, right? And by using our platform and the AI optimization that we have on the platform, we're able to increase the asset utilization. And already today, we have an asset utilization across the fleet that is significantly higher than the industry average. And we've been able to achieve that through our planning on the platform. The second piece is the labor cost. And, of course, the big shift in this is going to come through the deployment of more and more autonomous technology. That is the big step change when it comes to the labor cost component. But already looking at the manually driven electric business, by separating within our platform and within our model, of separating out the asset and the driver and looking at two different uptimes that you want to optimize the cost, we're already now able to achieve better labor cost components per driven kilometer and have that as a part of driving margins and driving a more optimized transportation network. And then finally, you have the energy costs. And so through the optimization that happens on the platform and the models that we have in the platform, combined with our business model which we'll talk more about but where we have long-term contracts with our customers so over the next five years we have a good perspective for a specific customer what is the energy use for that for that specific operation gives us good visibility on our energy needs which we can use in order to optimize for a long-term lower energy cost across our across our fleet and that's an important factor it also allows us to think about as we've done with some of our charging sites battery energy storage solutions how do you use that how do you plan out the energy need in order to optimize for what the actual energy costs are and and so taking that cost perspective which is ultimately what we're helping our customers to do how are we translating that into reality with our with our customer throughout the customer journey so the customer journey always starts with us ingesting the transportation data onto our platform analyzing that using our models and setting that joint sort of transformation program this is how we're going to transition your fleet into electric and autonomous. That is also what's captured in the joint business plans that I mentioned earlier. And then we start deploying our technology and deploying the capacity versus that in accordance with those plans. And by doing that, we're sort of going from theory showing this is how it's going to work, this is all the savings, showing that to the customer and leading us to be able to continue expanding with that customer by showing that, you know, proving out what we're actually saying to the customers. And it goes around in this continuous circle of of continued expansion with customers and we see this across our customer base That that it basically every single customer we have once that we start deploying capacity with them We continue to scale and scale and scale together with them So, you know to summarize a little bit in terms of what what does all this mean in terms of how we differ and how our approach Differs in in the marketplace first of all we've taken a very shipper-centric approach, right, with the end-to-end platform addressing all three cost buckets as when it comes to the deployment of this transition within the logistic networks and coupling that with long-term contracts to lock in that value over time. That also means that you have a unique data position, right? You're running operations for a large set of customers, gathering a lot of data by positioning yourself between the customer and the data sources in the transport service market. So that sort of data nexus gives us both a lot of data to hone in on models, both on the autonomous side and on the optimization side. And ultimately what that leads into, you have a platform that you aggregate a lot of transport demand onto with a deep understanding of the operations and a deep understanding and access to the data, which gives you a large benefit when it comes to understanding where do we deploy autonomous at which point in time what are the learnings what's the development cycle to do that using the actual data from those from those operations and you know ultimately the proof is sort of in the pudding if you will and and to sort of you know we came in to 2026 with a strong 2025 behind us we've seen that momentum continuing and and you know just showing a few numbers here in terms of what has happened in the business over the past six or so months. We've increased our AR in contracts by more than 50%. We've added four additional autonomous customers. We've almost doubled our driverless hours. We continue to expand our fleet and see great momentum in the business. And we'll have more and more announcements on that as we go along over the next few months here as well. So with that, I want to reintroduce you, if you will, to Henrik, our CTO, to tell you a little bit more, okay, how this is all great, how are you actually making this work?

Thank you, Rosberg. Thank you. So on the picture here, we see our live operations currently in, actually this is winter time, and it tells you how winter is in Sweden. It's dark almost throughout the day, where we're running live with an autonomous truck with our customer, Apothea, north of Stockholm. But we are also running daily operations in several locations here in the U.S., and we will get back to that later today, and we will see some of them on the screens here. But as Rosper said, we are a technology platform company, so let's take a look at that technology platform and what parts and pieces that builds that together that ultimately feeds our ecosystem with value for our customers. So we've laid this out in, if you will, a front end, at the top line here, where all the technologies that mainly comes from our in-house IP, the things that we develop ourselves. And in the bottom layer, the back end, if you like, is also the key necessary technology assets that we get from our deep partners and the best-of-breed suppliers in each technology segment that we utilize. But let me talk about them one by one and how they fit together. So on the left side here, we are looking at the autonomous drive stack. Now important with the autonomous drive stack is a It operates on public road. B. It is vessel agnostic. That means that of course, yes, it powers our bespoke Cabless autonomous trucks, but it also is enabling other vehicles that are from other customers To drive autonomously and I'll get back to the in a bit It's the safety case, which is the key to acquire or achieve the public road permit and prove to the authorities that we are safe to drive on public road. And then, of course, it is the autonomous trucks themselves. And you see what you see here and what is live in operation today is our Generation 2. That has been live since 2023, and we are soon to look at Generation 3 that will come to market early next year. With our Generation 3, we use a contract manufacturing partner in the Netherlands who builds the chassis, and we're looking for final assembly opportunities, both in Sweden and actually here locally in Austin, Texas. The next part here to the right side, it's the Saga AI platform that Rosper talks about. That is how we gather all the data. That's data from the autonomous system, and it's also data from shippers, etc. We'll go more into that at a future slide, but then it provides to ourselves and our customer the user interface Which you can also see later on the screens here that optimizes our fleet operation Both as a transport planner and as a charging planner and what we call the control tower Where we oversee the fleet of logistics both human driven trucks and and then fully autonomous trucks Now, behind that front end, we have the back-end layer of technologies, which consists of sensors that we get from, as I said, the best-of-breed partners out there in autonomous sensors, compute platform. It's also the infrastructure around data collection. It's the high-performance compute clusters that we use for training the deep learning models. It's the electric, human-driven electric trucks that we get from the leading truck OEMs of the world. both equipped with sensors live in freight operations for collecting data at the same time as it earns revenue providing transport for our customers. And then, of course, a lot of them purely to deliver that transport and data to us. We have the charging infrastructure, and last but not least also the connectivity infrastructure in this platform. So taking one deeper look at the software stack itself, as I said, we are a company built on the foundation of safety. Safety is also key for acquiring the public road permit. That leads us to the conclusion that we need all three modalities to build our perception stack, which most of our peers in the autonomous industry likewise think. We use radar, camera and lidar, each with its own strengths and its own weakness, but together forming the most safe platform for perception of an autonomous system. We also use vehicle motion sensors and we use GNSS which is satellite tracking of the vehicle. That means that we have two parallel systems in the vehicle which defines the localization and the navigation of the vehicle. One based on satellite data which we can run completely without any HD maps on board the vehicle and we're using HD maps which we compare to our sensor input to localize, which means that we have two ways of localizing each and every time and would satellite, for example, a connection be lost, we can localize with our LiDAR system compared to HD maps or vice versa. These sensors feeds into two parallel paths of actuation or execution of the drive, if you will. Mainly the end-to-end machine learning stack, which provides the most human-like driving behavior and which we would like to see driving most of the time. It provides the best comfort, if you will, for the drive and traffic around us. But inevitably, to prove ourselves deterministically safe, we have a secondary rule-based path that gives the guardrails or the boundary in which we allow the machine learning stack to actuate. That is to prove to ourselves that we're safe enough, but it's also imperative acquiring that public road permit without the safety driver, where most of the authorities today in a highly diverse regulatory landscape demand that we can prove this deterministically, which yet can only be done with classical deterministic algorithms. Finally, I have a page here to describe the bits and pieces of the Saga AI platform. As I said already, the key to the Saga platform is the data we can acquire. And the interesting part here, building up that ecosystem, is that we have vehicle data from the OEMs vehicles that's of course the OEM does that as well. We have transport data for the shipments and the drivers which of course other transport companies also do. We have charging data both from the batteries in the vehicles but also from the charging network and we have sensor data from the autonomous stack on the vehicles which we have equipped for data collection. That means that we sit on data that normally neither of the OEMs, the AD companies or the transport companies do, we have all of them together. And that's the key that builds and feeds the AI system inside the SAGA AI platform, which then yields to us and to our customers the electric vehicle route planner, the energy consumption, battery state of health, shipment selection, energy supply, driver performance, emission cost and pricing. Now this platform, together with the vehicle agnostic autonomous drive platform, we can also go to market and scale as a technology license, not only feeding our own vehicles providing freight capacity but feeding other vehicles in a dual use, which means both civilian and defense applications on-road and off-road. And in these cases we also have contracts won already but Anu will tell you in a bit how we scale the business both with freight capacity and going with technology license to the market. So let's welcome you Anubav on stage and give the power over to you. Thank you. Thank you Hendrik.

So I guess you saw the capabilities of the SAGA platform. Now what this slide talks about is how does that translate into the dollar value of the joint business plans that we have developed after ingesting all this data and coming up with detailed electrification programs and the transport routes that we will be implementing for our customers. That translates into an $800 million number that is waiting to be converted into the ARR of 92 million. So if I could draw apples to apples comparison, the 92 million number that you saw a couple of slides before has the path or roadmap to get to 800 million number. Now, keep in mind, this doesn't include the additional customers that are already in pipeline, where we haven't had all the data ingested from our customers yet. So as that happens, this number will continue to grow. Now, this is how it all comes together from our top line. The left side of this slide talks about freight capacity as a service, where we are actually implementing or deploying our trucks, both electric and autonomous, to deliver these cost advantages to our customers. The second half of the slide, or the right half of the slide, talks about the technology licensing, where we would be licensing both the Saga platform, as well as an Enride ADS platform to any vehicle that can be connected to it. So if you can think about the revenue trajectory or growth engines, it's going to be driven by two things. It's going to be the scaling of the freight capacity as a service where the revenue and the contribution margin will scale with the number of trucks on the road, on the ground, delivering our value to the customers every day. And as that keeps moving forward, this number will grow and drop to the bottom line, which I'm going to talk about in a bit. The second growth engine is the software, the technology licensing platform, where each of these licenses will be deployed at customer settings in their vehicles, both chassis agnostic, and as we scale, they will drop to the bottom line with a higher contribution margin because these are pure tech play. Now, the biggest thing here that I want to talk about is the contract duration. I think it's incredible that a company which is so young has been able to have contract durations worth five years, which adds predictability to the revenue, which is what gives us more confidence in our ability to execute the business plans as well as the confidence in the markets as to what the revenue trajectory of this company will look like in the next few years. The revenue model is take or pay with additional capacity utilization, and the pricing is based on per shift per unit that is delivered to our customer on an end-to-end basis. As we described, it all starts with taking the data, planning it, orchestrating the energy routes and charging, and then ultimately delivering the shipment, which adds value and gives the cost back to the customer. Now, this is the evolution of the revenue per truck or the unit economics each truck in an FCAS setting. So what you see here is today we are right now at about 200 trucks on the street, on the road, at our customer sites where we are generating about $300,000 per truck on an annual basis, is translating into a 20% to 25% cost before the asset cost. What does that mean? The 80% cost that are included for delivering the service, that includes the driver cost, which remains the biggest element, as well as maintenance, insurance, et cetera, which adds up to this. The way we see this evolving is going to be an asset utilization play. As we get more and more trucks on the ground, The second, the medium term in which we expect to cash flow break even, we expect to have about 1,500 trucks on the fleet where we get to that number in the next 18 to 24 months. And as the number of truck grows, the contribution margin creeps up. The long-term revenue trajectory would be, as you can imagine, more trucks, more customers, this number is going to keep growing and will stabilize at about $400,000 per truck, translating into a contribution margin of 30% to 35%. This is the second setting where we are deploying the autonomous trucks. There is no driver in this. So obviously the cost of this is a bit lower than what you saw on the previous slide. Here the contribution margin is about 20%, 25%. We have about 20 trucks that will be deployed in the next six months or so, where we are in the short term, where we expect to cash flow break even, this number per truck will creep up to $180,000 per truck on an annual basis, and the contribution margin will scale up, again, driven by utilization, as well as lowering of fleet monitoring costs per truck. And in the long term, we expect this number to grow, and obviously the contribution margin of this will be much higher as we achieve both scale as well as higher efficiency in fleet monitoring. Now, this part is where we are talking about our software or a technology model where we are licensing the Saga platform to our customers where our customers, which are making about $400,000 per truck in their setting, we expect to pass on a benefit in their margin profile by using our AI orchestration software. In this example, we expect them to perhaps have a creep in their profits by 10% to 15%. We expect to take a slice of that, which will translate into $10,000 to $15,000 per license, per vehicle that is using this. Right now, we have a customer already in motion with this, and we expect this revenue and the number of customers to start growing in the next 12 to 18 months. The second part is the autonomous driver stack, where the biggest cost today is the driver cost, which is $40 to $50 an hour. By using our software, we expect to achieve these savings and pass on these savings to the customers. And that's what's going to translate about $80,000 per customer, per year, per unit that is out on the road. With that, again, very thankful that you guys are here with us for our Capital Markets Day. and I would like to have Rosbah for the next steps for Enright.

Perfect, thank you very much and to sort of finish off before we head into starting with actually speaking to one of our customers who will be joining us here online but also sort of Q&A and opening up for Q&A from the forum, I wanted to sort of just say what's the summary or what's next for us as Enright over the next few months here and sort of bonding that into three key One is, of course, continuing our expansion into what we call high demand segments, and both Anu and Hendrik have mentioned, you know, the sort of dual use applications, taking our technology and applying it into different sets of vehicles. You're going to see more announcements coming around that and a lot of focus from us on that segment. Secondly is, of course, continuing the acceleration of commercial momentum, right? If you remember in my initial section where we talked about what has happened with our ARR, for example, over the past few months, we expect to continue the living versus both in terms of going with our existing customer base, but of course also continuing to add additional customers to that portfolio. And secondly, or thirdly, sorry, is of course as you know, we announced our merger together with Legato Merger Corp going public through a SPAC. We expect that transaction to close in H1 and we did an announcement also a few weeks ago in relation to raising a pipe capital to support that so of course a lot of focus on getting that done and we expect that to happen during during H1 as well. So with that I'll welcome Henrik back on stage and we're going to start the Q&A with actually having one of our customers join us and give his perspectives on on this so I'll leave it over to you Henrik to introduce and welcome our customer.

Thank you Rosberg and And yes, as I mentioned, we have live operations here in the U.S., and actually this is our first and flagship customer for Autonomous Drive, and you can all… Hi Harry, good to see you. Good afternoon. Good afternoon. I'm not sure you can see me, but I can see you, and it's great to be back in the U.S.

Good, yeah, I haven't seen you for a few months since we were in Sommer launching the second truck.

That's right. That was really great news. And also, I know you would have loved to be here in person, and that was actually your plan. I don't know, can you mention something to why you're not here, actually, physically?

Yeah, I'm actually in our largest warehouse, inbound warehouse, in the U.S., where we run some in-ride trucks. We actually run 10 of them here. But we had some transition problems. We just went to a new 3PL a couple of weeks ago, and we've had different system issues. So I'm here trying to get them straightened out so they don't impact our factories.

Yeah, great to hear. And I definitely understand that you had to prioritize that. But we're very happy to have you here on Lync. Do you mind? I mean, we have an overview. I'm not sure you see that, but we have an overview of our operation. If you see that, is there something you want to highlight for our listeners here and viewers? What's really going on in our operations together?

Yeah, sure. Sure. So we really, it's been a great partnership. We started out in 2001 just kind of playing around with autonomous truck at Appliance Park. Appliance Park is a very large facility. It has five manufacturing plants. We just actually announced one was being used as a warehouse. We announced last year that we're converting that to another laundry facility for reshoring. We also have a 2.4 million square foot facility doing outbound shipment. So when we started looking at the future for GE appliances, we were really seeking out that partnership that somebody could bring in knowledge for us. We think that with this investment in the U.S., we also have to invest in technology of providing parts. So how do we build up that entire supply chain autonomously? And Enride was really the perfect partner for us there. We don't have the knowledge base to go out and develop our own truck or even really to decide what to buy. But it's been interesting to learn about how to do electrification, driving those, you know, ecosystems that we've been looking to partner with companies for. And so it's been really interesting as we've grown together over the last five years for us to really learn a lot about how we can deploy. And from those learnings, we actually take a lot of that and apply it internally to our factories also. We think that by learning how autonomous systems work, we can start deploying autonomous robots inside our factory. And we do. We've invested over and about to invest over $3 billion in the U.S. A lot of that is automation. And so it makes a real win-win situation for us. I think for, again, when we started looking at it, you know, we don't know how to size chargers for electric trucks. We didn't know, you know, how to set up charging infrastructure, you know, what the cost was. And really, with Saga, it helps us come and kind of tie that all together. There's really no other partner out there that we've found anyway that can kind of drive autonomy and electric trucks to kind of keep us ahead of that. You know, we really like to be leading edge here. Some companies are fast followers. We're really pushing how do we take the lead into the different things building on kind of that over 100 year history with Thomas Edison as our founder.

Yeah, great sharing that with us, Harry. And if you would take on the future glasses and look forward into the next coming, let's say, five years, is there anything you would like to share with us how you could see us prospering together going forward?

Yeah, so after the pilot for autonomous trucks, we went into a pilot in Selmer where we ran over the road, the first electric vehicle running over the road, especially in Tennessee where nobody else had really attempted it. There, we moved product from one of our two manufacturing facilities in that city up to a warehouse. So we're moving finished good product. And I think earlier in some of the slides, they showed our air conditioner product being loaded onto the truck. We went live in 2023, so we've been operational for over two and a half years. We just did add a second autonomous truck last year to help out with volume. We had started out with one product at this one facility. We build hotel air conditioners. We also build the high-end refrigerators. And so therefore, we're moving both products in the autonomous truck right now. I think the other exciting things is that we, I don't know if it's a little bit disappointing, but we're the largest electric fleet in Kentucky for Class A trucks that we run out of a couple of our warehouses there and also pick up from our suppliers to feed into Appliance Park. That's only 10 trucks. I think there's only 17 trucks in Kentucky. We also run another nine trucks here in Crandall, and we're about to expand that with two more trucks and then here in the near future, and then we're going to actually add a little bit longer distance trucks. We're looking at going to Tesla trucks to get us that greater range that we can run actually from one of our inbound warehouses, 240 miles in one direction to a finished goods warehouse. So we're really looking at building out those networks. On the electric side, what really gets me excited, I think, is that next year we'll start piloting and operating from the warehouse here in Crandall, georgia and we're approximately two miles from the port of savannah regional port so it's an inland port where we bring 98 of our containers in and so we're really excited that in rides are going to be partnering with us to look at how do we deliver drive on the road down to pick up sea containers and deliver those back to the um warehouse here where we unload and we'll do a return trip back to that inland port. I think what we found is when we started using the electric trucks here and the first actually operations we did with the CET truck was that we ran dray operations down to the inland port. It's been a really big win. The drivers love them. They don't smell like diesel at the end of the day. Ergonomically, it's not better. They're not loud and and really kind of bouncy around and so we're we're really happy with those operations and again really excited about expanding that over the next few years.

Great so super thanks to you Harry for joining us here and sharing this story with us and And it's been a pleasure. I myself have been with the story for three years now. But as you said, together as two companies, and you've been there all along, of course, is our relationship dates back five years now. And thanks again for joining us. And I hand over back to Rosper to manage the rest of the Q&A. Thank you, Harry.

You're welcome. Thank you very much, Henrik, and thanks to Harry. so yeah so opening up for for questions if there are any any questions that you have happy to happy to answer we got Ed there with the mic please I think introduce yourselves with name and I'm speaking to the mic with the questions thank you so much hi Suji de Silva Roth Capital thanks to the Einride team for very informative presentations maybe can you give us a framework how to think about the TAM because I read somewhere in the in the materials there are some companies that trucks haven't even become digital yet let alone, you know, EV and autonomous.

And so what framework should we think about in terms of SAM or TAM? Obviously, we're early in penetration, but that would be a helpful conversation.

Absolutely. That's an excellent question. So the way we think about it is, you know, you start off with the transport service market, that four sort of trillion dollar number, and then break it down into the different markets. That's the sort of gross market, right? That's the current transport service market. And then we focus in on a number of sort of specific industrial verticals, you know, with early adoption with FMCG, food retail, for example, industrials when it comes to the autonomous deployments. And then sort of looking at those industries and then looking at, you know, when we look at our, the customer data of, you know, having the gross customer data and then taking that down into what do we see is electrifiable and then over time, automatable. It will, of course, differ a bit from, you know, over time, right, in terms of where you're on time. But we generally see that about 30% to 40% of our customer flows are electrifiable already today, and that increases to, you know, 60% to 70% over the next few years. So we see that a large proportion of that market is addressable with electric and with autonomous, with the business case as we see it, right, so with the cost benefit. And then, you know, that will continue expanding as the technology develops, hardware prices comes down, autonomous capabilities increase as well.

One of the quick questions on the chart where you show the per truck revenue increasing short-term medium. Can you explain why that goes up? Because I would think you'd want to pass cost savings to customers. You need to talk about that, but you're able to drive more revenue per truck over time. I'd love to know the drivers for that.

So that's basically a utilization play. So the more customers we have in that particular route, we are able to put more packages on that same truck. So that's why, because remember, the pricing model is per unit. So that's why if you have two customers or three customers in that same vehicle on that same lane, you are able to drive a bigger top line.

Thank you. George Jinarikas from Canaccord Genova. Hey, how are you? Good, how are you? So maybe first, if you could discuss the decision broadly to go with electric trucks as opposed to other modes? And then second, if the technology transfer is applicable to non-electric trucks over time. Thank you.

Absolutely. And so I think ultimately what we're trying to achieve for our customers is, you know, a sort of a decrease in cost over time for by applying new technology to take down the total transportation cost. And we see that the combination of electric and autonomous over time will be the cheapest way of running a transportation network. So that is the underlying reason for why we focused in on electric. Having said that, if you look at the autonomous technology and as Henrik alluded to earlier as well, that is not sort of propulsion driven by only electric, for example. So the autonomous technology translates into other propulsion methods and they ultimately come down to what is the best solution for the customer. And some of the things we're doing on, you know, in dual-use case projects, for example, where we're taking our autonomous technology and deploying it into other sets of vehicles, those are, for example, not necessarily always electric as propulsion.

And if I can add just to that point, because this directly impacts our bottom line. Why? Because as the price of electric trucks come down over time, we are able to get more e-brain, because what we talked about was contribution margin, but if you start including the asset price in that in terms of depreciation, the more profits the company will start to generate as the cost curve of the electric comes down over time.

I'm sorry, there you go.

Yeah, Mike Latimore, Northland Capital Markets. Good to meet you. In terms of that 800 million ARR number you have, is there a way to describe what percent of that relates to autonomous vehicles or AV technology? And then also, when you talk about selling your, licensing your virtual driver, is the target market the OEMs or something broader than that?

Excellent question. So starting with the first one, the joint business plan are basically an electrification and automation plan, and the percentages will differ depending on how quickly we sort of scale into that. It's more achieving a certain cost. So it's difficult to break it down specifically into those two buckets, but it's a continuum depending on at which point in time you're basically deploying that capacity. Sorry, the second question was in relation to...

In terms of licensing your virtual driver, is it OEM target or is it broader than that?

So we targeted a few different approaches there. We started doing that within sort of dual use or defense type of applications, looking at a completely different set of vehicles, so not necessarily heavy-duty trucks. And in that focusing, both are fleet owners within that segment, and also what we call specialized civilian applications, hence the dual-use type of application. Over time, that will grow into targeting the OEMs already at the production of those types of vehicles, but currently the focus is on sort of the fleet owners of those types of specialized sort of civilian applications, defense applications.

Just one technology question.

You have really good proprietary data, obviously. how how much do you leverage foundation model generative AI to create synthetic data and leverage that for for further development I think that's an excellent question for you really yeah I mean both are now the mic is on thank you so both the saga AI platform and the end-to-end machine learning stack in in the in the Android virtual driver is built on foundation and model so so yes short Great, thank you.

Itai McKellie from TD Cowan. Thanks again for hosting this really great event. Great to see that the customer growth, I think, for both total and autonomous. I'm curious whether those incremental four were also all adopted autonomous. And maybe to extend that, as we think about just what's happening with AI and reduced costs, I think you're on Gen 2 now. When does Gen 3 come out?

How do you see the progression of that penetration driving more demand for autonomous yeah so yeah yeah i mean the gen 3 is fully under development now we are running tests and and we have prototypes at at our development facility in sweden we we aim to have it production ready by the end of the year and start rolling it out with customers by the beginning of next year and and in in you could say the key highlights of the generation is that it it opens up for container transport you heard us talk about that previously here but some some of verticals is beneficial to be able to transport containers that's possible with that form factor so that's one of the key enablers we're also of course then coming with with a new modernized sensor stack with longer range sensor set and a much bigger compute platform that would that would allow us to to expand our capabilities from an AD perspective.

To answer the first easy question if those four customers were AD customers that were added in that I talked to in it yes great and then just as a follow-up so it sounds like you also have one customer with a licensing deal I'm curious in the next three four years do you have any internal targets of the mix of licensing deals and as a saga platform continues to improve with AI does that sort of a trigger more demand for these licensing deals yeah so I think so we the the the the customer that has the first customer which we call the sort of licensing only customer.

It's actually licensed only for that species. So it started as an FCAS customer, we're continuing the FCAS, and then for other parts of their fleet, we're deploying the software world, which is also a good sort of explanation to the synergies between, you know, starting off with showing the customer, this is how this actually works. These are the results of that, and then transitioning them into the more sort of technology licensing part. So it's an area we will focus a lot on, and you'll see the sort of growth both in terms of number customers a number of deployed vehicles on the platform you know over over the longer term that will be the majority of the sort of deployed vehicles will be in that in that model you'll see that you know the FCAS model will sort of be the dominant one over the next couple of years but you see that technology licensing part of the saga platform increasing over the next few years as well and we also have contracts one in an early stage on on the licensing of the Android driver platform for dual use applications hi Chris McNally Evercore Just a quick review maybe on the AV timeline for Henrik and Roosbay.

When should we sort of expect full driver out and are there KPIs or milestones that we can kind of track along the way?

Yes, I mean, our cabless tracks are driver out as we speak. So we see an organic growth in terms of the distances and the speeds and the use cases where we operate. So from that perspective, we are already driver out. And the key enabler for that is the extensive safety case that we build together with the stack so we can prove that it's safe and acquire a public road permit for it, which we now have acquired in Sweden, Norway, Belgium, and also in the U.S. So from that perspective, you could say that we are driver out already now, but we're also organically growing that in more and more use cases. hence the platform that provides that customer base and for for transportation that we can grow within and not sure that answered exactly no it's great maybe you could just expand on what are those ODD expansions that will be over the next year is it is it weather types is it just areas that are unmapped you know customer customer because it's a yes good question and of course we could become very technical on that but but to give you a few highlights so the complexity of the case and the number of vulnerable road users is one of the key aspects so we like to operate in more industrial areas hence going out for the for the industrial customers which is where you could have a production facility and a few blocks away or a few miles away you have a warehouse and and you have a shuttle between them that's a typical use case for for us today and then we expand that with longer distances and higher speed and then of course over time more and more complex environment mainly in terms of vulnerable road users.

Sorry we just needed for that yeah I think you're one of the only if not the only autonomous driving company that has a cabless product out there.

The regulatory environment right now is quite favorable for autonomous driving but is there a difference in how the regulators perceive a vehicle in which a driver cannot get in and manually take over versus one where it has just the capability yeah i mean there is there is a quite diverse regulatory landscape out there i mean we're we're looking for and and waiting for if you will anticipating a federal uh regulation here in u.s that that enables a similarity or if not an identical situation across the entire continent of u.s but but likewise in Europe from an EU perspective it will be very beneficial for us to have a federal EU regulation so from that perspective it's scattered country by country but then of course as as we move forward and and other players in the industry move forward and we have contacts with the regulators and we work with them and they listen quite frankly quite a lot on on how we reason around safety and and how we prove ourselves to be safe we also see similarities so it's not that it's completely different questions or completely different proofs that are needed but it's nuances of each other and and then of course you still have countries in Europe and and states here in US where we are not allowed yet to operate with fully with driver out and when you think about your AR or pipeline has your customer specified where they want to use your proprietary like that

thing or just a regular truck fitted with your technology? And do the unit economics change depending on what they choose?

So the perspective with the customers is looking at the different points in time based on our autonomous capabilities and the cost structure. Where does it make sense to deploy autonomous today? Where would it make sense next year, right? And depending on that development. I think from a customer's perspective, They're really focused on the cost of the service, the quality and reliability of it and sort of, you know, getting their things in the order and the time that there's. So they're not necessarily that much focused on if it's autonomous or electric or any other technology. They're more focused on the end result that it brings. And we then determine based on where we are in our capabilities, unit economics, et cetera, you know, what is the best way of running this right now. So, if you take GE and Harry that was here as an example, when we started off that, we looked at their transportation data, we saw that, you know, they have a bunch of transportation going in and outbound from their industrial area, and they have shuttle foals going in So, we said, initially, let's start with the electric trucks in and outbound sort of use cases, but in this industrial setting, it doesn't actually make sense with the generation two and the capabilities to deploy autonomous. And that's the sort of iteration we go through with the customers. So their perspective is more, you know, what's the sort of, where do I get the highest quality and best cost of the service?

Got it. Maybe a follow-up to that. I know this question is a bit like asking you, like, which is your favorite sense? Do you like your eyesight or your hearing? But when you think of your secret sauce from a technology perspective, right, where do you guys add the most value, on the autonomous side or on the EV side? And exactly the point you just made, when a customer comes to you, does it feel like they like your EV solution better than your autonomous solution or both? How do you sell that?

So I think when it comes to the secret sauce or, if you will, of the technology, it goes back to the discussion that I talked about earlier, right, in terms of addressing the different cost buckets at all times with the technology. So there are these three big cost buckets that ultimately will determine the TCO of delivering that transportation for the customer. And our ability to address those at all times, depending on the maturity of the technology, I think that is one of the key aspects, which means that both the autonomous technology is important for one of the buckets. The Saga platform is important for all three of the buckets, and it allows us to, you know, to sort of over time optimize across all of those areas. So I would say the combination of the sort of different technology areas bringing it together is what makes us, you know, unique to a large extent. And I think on the customer question, so the customers do, you know, it's a combination of wanting to electrify their transportation because of the cost savings that we can bring to them, but also positioning them to adopt Autonomous as quickly as possible where it sort of makes sense based on the capabilities and where we are in sort of there and the use cases that we're doing. So I would say Autonomous plays an important role in that sort of relationship with the customers and it's about setting that sort of stepwise plan together with them.

Hey, Chris Pierce from Needham. Thanks again for having us here. I just, building on those last questions about the truck that we're seeing on the screen there, how should we think about, I mean, is there almost an OEM third-party model here? Because I feel like you've got maybe the most technologically advanced, lowest cost, autonomous truck out there. So does that fit into the third party where someone's not just taking the data, they're actually buying the truck from you? Or am I kind of spinning things that aren't really in the business plan right now?

No. Well, so I think, you know, we see it a little bit as, you know, we've built the autonomous drive stack that can operate either into our vehicle platform or into other vehicle platforms. And we started the other vehicle platform, if you will, or vehicle agnostic, as we call it, more into other types of vehicles and specialized sort of settings. That's going to grow, you know, it's going to be a business of its own and expand into sort of heavy-duty freight as well. and then you have the the the vehicle platform that we developed you know that you see in the pictures right with with no cab etc and and to us that is the you know that's the way the truck will need to look over time because that's the cost optimal sort of hardware platforms set up if you want to once again be as as cost sort of optimized as possible so I think you're gonna see both side of those of that business going and then it's of course about how How do you, you know, which path do you take to expand the production and manufacturing of those vehicle platforms? We have now focused on a contract manufacturing partnership, which has the ability to scale to thousands of vehicles on that set if we want. But of course, over time, we'll also look into how do we, once again, you know, get the cheapest possible sort of vehicle platform to deploy with customers.

Okay. And then just competitively, I guess there's logistics companies that help people with utilization and route planning. And then if a customer wants to pursue electrification, that's their OEM relationship. And if a customer wants to pursue autonomous, that's, again, their OEM relationship. Is there someone that you guys are sort of taking share from, or is this a whole new platform type company that doesn't exist in the industry right now?

So I would say our approach is unique in the sense that we look at all of the platform approach of sort of positioning ourselves between the so that our customers are the shipper customers they normally don't own a truck they don't have it drivers right they go to the transport service market and acquire that transportation and we're sort of coming in as the platform telling them we're gonna handle this for you we then have partners on the back end to deliver versus that but but essentially we sort of take over the responsibility and help them to take down their their transportation costs and then we have partnerships with OEMs, with carrier partners, and others as service providers to deliver versus that. But we become the interface, if you will, versus the shipping customers.

Okay. Thank you.

Hi. Thank you. Winnie Don from Deutsche Bank. Just curious, in the next maybe 12 to 18 months, can you talk about how you guys are planning to deploy your capital? And then the second question is on the EV side how you're managing infrastructure and charging for your customers right now. Thank you.

Absolutely. Smartly is the first one. So we're going to deploy our categories right now. But it's going to be focused on two key buckets, right? We have acquired this sort of $800 million plus of potential AR in our contract. We started the growth journey with these 30 customers. So a lot of focus is going to be on continued deployment and continued expansion with those customers so growth investments into into our commercial operations and secondly it's going to be about development on the autonomous are taking that next step and delivering versus the roadmaps on our on the autonomous that expanding the ODD capabilities hardware platforms etc etc and and sorry the second question was charging infrastructure yeah so Charlie we so we have a few different ways in which we The ultimate goal for us when it comes to charging infrastructure is providing the most efficient energy cost in our customer operations, right? And we go about that in a few different ways. We have one setup where we build our own charging infrastructure and charging sites together with infrastructure investors, which means that we look at our data across our customer base. We analyze them. We say, based on this, we're going to have this type of utilization for a charging site at this location. We then partner with infrastructure investors that do the capex. They build the site together, but they finance the site, and we operate that site and sell that capacity on to our customers. We similarly do behind-the-fence installations at the customer site or loading and offloading, essentially. And then we have third-party networks, so third parties that have already built existing charging infrastructure where we partner with and get access to their infrastructure. So, and the choice of that all comes down to, you know, data, cost, understanding, what's optimal at this point in time. So, we sort of use these three main ways of going about it. Great. Any other questions? Thank you so much, everyone. Oh, sorry. Did you have a question? Great. Thank you so much. So, we will, and thank you guys that have joined, that have joined online. we will end the webcast here and thank you so much for for taking the time to both be here physically or listening to us to us online and and we will continue in here and I say thanks so much to the guys joining us online