GreenMobility A/S (GREENM) July 2026 Capital Markets Day Transcript

Welcome to today's presentation where we have the pleasure to present Green Mobility. The occasion for today's events is, of course, your H1 26 results. You were also out warning a little bit on the top line of guidance, but kept your earnings guidance early in the week, and Thursday we had the results. So that will be the topic for today. So it was through today's presentation and answer questions in the end. We are joined by CEO Casper Giestel.

As always, there's a box down below, ask questions, do it during the event, after the event. do it in danish or in english i will try and translate to the best of my ability if in danish but i think that was that for me uh i will leave the stage to you casper thank you very much michael so for the ones who don't know green mobility we are a car sharing car rental company and we have around 1500 vehicles in our fleet we are in aarhus and copenhagen The way our product works is that you download our app, then you use the app, you swipe it when you're next to a car and the car opens, unlocks. Then you go to wherever your destination is within our operating zone. Then after you are done driving, you just get out of the car and swipe again, and then the car locks and we send you an invoice. It's as simple as that. and we have that for more than 135 000 trips a month now so a lot of people have found out how easy it is to use our services here a fleet is an all ev fleet we have our premium cars which are the Polestar we have some Renault Megans and we have just very recently added also some IKEA Neros on that which with a very long range so they also work as you know ordinary cars if you have a need to go to Jutland or Sweden up on home as many of our customers have then we have our core fleet which consists of primarily Renault Zoe's that's the workhorse in our fleet a very good small sized car group beep car with a relatively long range for a car of that size we've just added and sent micros to that one too that's the car of the year 2026 in denmark then we have a fleet of cargo vans both smaller and bigger vans all evs as well and then we have also minibuses with space for seven people in them so how did the first half of 2026 go uh in the first half of 2026 we saw a four percent increase in our revenue and that was disappointing uh if you look at it from a guidance perspective um the first half didn't live up to our expectations and the reasons for that i will talk more elaborate elaborately about that but we have seen a couple of temporary headwinds on that so that was on the negative side on the positive side we have seen a 19 increase in EBITDA we are still increasing our margins due to this lean operations our operational excellence program is still running we still They'll find costs that we can cut down on and lower our cost of acquisition in marketing and so on and so forth. If you look at our depreciations, those are flat due to the unchanged fleet size versus the first half of 2025. Our financial expenses are down. They're driven by a lower debt. I also talk more about that. and then we see our ability to make money uh to make profit is has has doubled uh versus the same half uh 2026 and i think this is speaks in volumes in terms of how efficient we are and and in spite of not reaching our guidance target i think it's it's very good that we are in a position where we are just being better and better at earning money so 112 increase in profit for the period um and the cash flow from the operations is the same as for the first half of 2025. let's continue on the balance and cash flow here i think what is very important for me to stress here is that the free cash flow excluding our loan repayments and the share buyback that we have also initiated improved to seven million up from four and a half million in first half of 2025 so in spite of these loan repayments in spite of the share buyback our free cash flow has actually improved quite heavily versus first half of 2025 our cash position decreases by 2.8 million to 13.7 million this is mainly due to the share buyback program that we initiated a little early on where we have spent three and a half million on that and then we can see that our lease liabilities have a have a slight increase but this is due to the fleet additions i'm going to talk more about the fleet additions later on our loan decreases due to the loan repayments we are paying off quite a big of a big chunks of the loans that we have we have some high interest loans from ifo nefco that was made before my time here and i want to stress in connection with loans that we have absolutely no operational debt so it's only loans that are connecting to cars and these loans will by the way be out of the way in 2027 and if we look at our the netbook value of the cars those are flat we have added more cars and especially at the towards the end of the half year and the old cars are depreciated according to the plan so i'm also super happy that our equity ratio is now up it's 27 up from 22 and that gives us a lot of comfort within our target zone here which is 20 for those of you who have seen me on these calls earlier we have talked about a target zone of 20 percent for us to be able to buy back shares for example that's also for our ability to get financing to our cars and at good rates that's also a very important factor in that so equity ratio up from 22 to 27 and let me take you back to where we started on the revenue growth which has been disappointed so there are i would say two main factors for that the first factor is a very heavy factor and that is because we have seen some delays in our fleet inflating of cars we were supposed to have our cars inflated at a much earlier stage that was what we planned for but we also saw some disruptions in the global supply chains from in particular the homeless And I've got to be very honest with you, it wasn't a part of our risk assessment plans when we ordered these cars, a lot of them come from South Korea, those are Kia's, that they would be so heavily delayed as we saw here. So that is a major contributor to this guidance adjustments. then i've also written down the platform migration so from a technical point of view the platform migration has has gone very well um you know when you do a platform migration to a completely new platform um there's a lot of risk associated with that i think that was mitigated very well we didn't see any downtime we saw that all of our customers were migrated and so on and so forth but so from a technical point of view that has that has gone well the new platform is also a prerequisite the foundation for new features that i've also talked about earlier and those new features they have i was hoping for a big bang where all of the new features could be from the get-go of the migration but unfortunately they have been postponed as well and i think we have very good communication with with the developers delivering these tours but unfortunately they haven't been able to to deliver in time so we will see these features come second half of the year where we can get the full effects from from some of these features another but less significant annoying thing which has also impacted our revenue has been this local road closures some of you who are familiar with copenhagen probably know that ama has been sort of closed off for public road driving and unfortunately ama is our biggest revenue driver in terms of areas of copenhagen and therefore it has had a negative impact and then for if we look at the rest of the year we also seeing a little change or some change in the competitive landscape here that will be a new taxi operator coming in we've seen that before when bold entered when uber entered the copenhagen market we saw that they were running very aggressive pricing campaigns the new competitor here will probably do that too it just adds and i mean we survived that before right um fundamentally we have um from a cost perspective the fundamentals are just on our side because obviously when you have a tax you have to pay a driver and if you have a cost every month of uh 20 000 25 000 dkk on on that and our drivers are essentially paying to drive our cars then you just have a fundamental different business model so we we will always be able to compete with them but it could create some disturbances in the second half year there's no changes to our financial targets that we have also communicated before the financial targets towards 2028 we're still focusing on denmark we still expect an average revenue growth of 8 to 12 percent per year towards 2028 and we are also expecting a 12 to 16 percent growth in the EBITDA towards 2028. We are strengthening the balance sheet I think the first half is showing that very well with an ambition to redistribute excessive cash and we also lived up to that we are in the midst of a of a share buyback program it's continuing here um so i'm very happy that that we initiated that in the first half and then we're still razor sharp uh focus on uh bringing autonomous driving to denmark we will be among the first one with autonomous full autonomous driving to denmark and i'm not talking about the tesla kind of autonomous driving i'm talking about the full autonomous driving without chauffeurs good and then i also have talked about our revenue pockets and some of them some of you might have seen them before i'm super happy that i'm able today to tell you that we're getting very close to opening up for the 17 year olds to be able to drive our cars so this summer 17-year-olds will be able to drive the the cars with green mobility i think it's a very interesting growth potential that lies in them just a year ago the the law on 17-year-olds were changed so they're now allowed to drive cars between five in the morning and eight in the evening and obviously we should let them do that not in our premium cars though only in our reno so is and so i'm well i'm looking forward to welcome this customer group as well

and i think that was it for the half year presentation perfect let's let's jump into the questions and as a guy living on ama i i sometimes you know when i hear CEOs i can't really relate to it but i can tell you that driving out from my runway i have been in the lines ever since. It is crazy. First time I really could relate not to the hummus, not to everything, but Ama that I could relate to. Perfect. Let's jump into the questions. Actually, the first one is, is there any plans of launching a new design interface in your app? There's a little bit of questions and the new features are delayed. Which features can we expect? A little bit about what do we have now? Is there a new layout planned and what features are we missing and what features do you hope to bring into this in the second half of the year?

That's a really good question and super relevant because our layout or the user interface is actually outdated. That's also why I'm super happy that we are expecting a new UI interface which is much more modern. One, two, it gives us a lot of much better opportunities for upselling. It just gives a better, more updated experience for the customers. We're expecting that in the second half here, probably in Q3. Famous last words, but I think it's going to be Q3 that we're going to see that.

Then we will have a new user interface. Some of the features, I guess there's also some backend you might be missing. Maybe not what we are seeing to be able to target your customers and dynamic pricing and so on. Is that also still missing?

So from the backend side, that's what you don't see as a customer. But that's actually where we've seen the biggest gains so far. That is the controlling of the fleet from our staff on the ground in the street. They have a much, much faster user interface. we have a better overview of the fleet and so on. So I would say the biggest developments that we have seen is actually what you can see, but that is the backend, the service app, our service center app and so on, which are not visible to the customers yet.

But you will really soon, sooner or a little later, I would say, you'll be able to see a major upgrade to a much more modern look, feel, and opportunities for us as a company to upsell at a much higher rate than we've been able to before okay then there's a questions how many of the 185 new cars the big plans you did are on the streets today and meaning how many of you implemented of these new cars i don't know whether you want to put a number on that and and where the cars are now did i understand you correctly they are in denmark it's consumer needs to execute it's no longer the supply chains that is a risk no so uh i'm happy

to say that all cars are now uh having number plates on running in the green mobility fleet uh as of i mean the status of today is that all are in of course it takes a little longer now the the reason why we've also adjusted the guidance one of the major reasons of this is that we're missing out on the revenue that we should have had when we were expecting the cars they're coming in now and they're coming in as you know the tail of cars as we say so they will obviously have a lower revenue per car for the first months that they're in the fleet it's always like that it takes a little bit of time to uptake these cars revenue wise so there will be a delay

that has an effect for the for the whole year but the good thing is that it is they're all in the fleet now perfect then there's a question your trade receivers are up from 12.1 million to 15 million has there been more damages to the car which i guess is something you could have outstanding and has provision have had to have you had to make any meaningful and provisions on the depth debtors meaning I think I I've heard you before say you really don't have a lot of losses on your debtors because you collect that on credit card so it uh the the adapters are up or your receivables is it more damaging some car or do you have a seeing more uh meaningful losses on your adapters no so I don't think we have more online we don't see any more damages in our cars or on a general level um we have a high focus on our working capital and we're continuously monitoring uh this development and i think that's as much i can say on it on that topic then there's a question about uh it was nice to see a lot of green mobility cars in roskilde to the festival i i needed one in copenhagen so i was not so glad about it but the city was really uh okay then there's a question here i hope that when you pass it will give you some far uh fixed uh places so you can kind of do the mess up in roscoe i think it's more common but you're looking at the roskilde are trying to get the same deal as you have in copenhagen with some fix to to kind of make this as a maybe more and just a hop but a little bit but permanent now you have the oskiller festival i know that's a special but i'm looking at oskiller and i'm trying to get uh maybe more more support from the capacity to you know your fixed license or your parking places only for you and so on so a very specific question for us yeah i mean i'm always glad to hear when you can't get a car michael because that that means there's money in bank for us right and then the cars out driving making revenue um i think uh what i want to say

on the on the municipalities is that for copenhagen municipality we have an excellent cooperation with them they're very very into car sharing thor it is one of the great solutions to the big problems that the big cities have and copenhagen municipality has they're very mature in terms of understanding how we can help the city with the congestion and pollution and so that not everybody goes out and buy a car and so um we have a very good relation with them a few of the few of the parking lots are going to be you know we have we were given a thousand parking lots some of them will be rolled back or they will actually not be rolled back they will

be paused as they say um around one third of them which is okay and we have a very good cooperation with the municipality on pointing towards which makes sense and which doesn't make sense and then we can um take that back those parking lots should the demand uh be as expected and do we have any plans about near municipalities also to do something similar i know the question as far as skill but maybe you have these city hubs i guess where you are also trying to create something i i working with the municipalities there or is it not necessary is that really primarily necessary in copenhagen to make a a business case for for having these hops where

you can drive to yeah so we are working with uh all of the municipalities within our zone and i think they are having a very proactive and very positive tone towards us um you know i think it was last year we introduced a northern zone called which was also in cooperation with the municipality out there they were very very happy that we came and tried to help them with the congestion some of the congestion problems that they also have there and increasing the mobility for their constituents so that went very well we kept it after a test period and it's still good stone for us and we're working essentially very positively proactively with all the

municipalities that we're operating in yeah and and i the next question was actually on that uh i think so so uh you answered that that that is at least on your current coffee side the question might also be because you're also talking to many pasties on on the autonomous uh is that also progressing you know you changing out the 10 000 danish kroner bus tickets per trip with autonomous have you seen any movement in those negotiations or is it still too early and we don't have the legislative still here yes we do see movements on that I think we are in very positive talks

with some of the major operators from around the world we still have a we still have a vision of becoming uh among the first uh full self-driving uh companies uh in denmark and when i say full self-driving it's not to be uh confused with uh what tesla is saying they're doing in denmark where you have to have a chauffeur so full self-driving is where you don't have to have a chauffeur we're working towards that solution speaking about that the public transport system is using more than a billion crowns more than billion dollar I think it is actually on

subsidization of taxes and flex buses and so on a lot of them have reached out to us and ask when we can start you know working together with them so I think there's a huge huge potential in this as well and i don't think that has been factored into the price of our shares perfect and there's about your uh this uh this freemium system where you move the cars around by your customers getting money on top and getting a free ride especially i guess from the airport because a lot of them are driving there not so many are leaving in my at some point in time maybe you can match it but it's a very cheap way of you to move cars around to to higher revenue areas but i think the question here is can it be too much how do you measure it uh you've seen a lot of examples on on on you giving good offers for people to drive around free and topping off to move the cars how sure you are are you at this is a good concept and not some money you deliver to to to someone so this concept is called free mobility i think it's a really good question though but this is called free mobility it's a contract that we introduced last year i believe and the point is that we want the customers to help us balance the fleet

to move the cars towards areas where they there is more demands than the coronaries that they're standing in three years ago when i stepped into the company we spent a lot of money on the payroll to have the balance excuse me to have the feed rebalanced by the use of our own employees total waste of time when we can lay waste of time and money when we can let the customers do that for us so we are offering in there in the app free mobility cars that are being moved by customers to areas where we know and we know this based on thousands and thousands of data points these cars are not utilized they're underutilized in areas where they're underutilized we also know that if we're moving them to area b we know that they can make much more revenue within the next 24 hours instead of making them stand there so it is a really good business for us now that we have free mobility to let the customers and it's a special segment of customers who want to spend their time on it give them a reward we are adding you know minutes to their accounts as a thank you and then they can have the the car for an hour but all indications say that doing so balancing the fleet is much much more efficient to let the customers do that um so i think i mean it's it's a it's a really good idea we're getting a lot out of it we have a small portion of our customers who are doing it for us and that just gives a much better um utilization of the fleet check so so it's data driven uh if it wouldn't make sense you would not move the cars around you might say no and i think it's also important to notice or to mention that it's ai driven so we have a lot we have so many we have millions of data points in this in this company ai is really really good at connecting the dots from a data point perspective so based on a lot of factors it is able to make a forecast for the particular areas of copenhagen on where these cars should be distributed to and from so it's really good we don't have a we don't spend a lot of organizing

from time on it and then about the energy prices they have been swinging up a little bit down now a little bit up again how has they affected your quarter and how will they affect you going forward but if they stay a little bit elevated?

We don't see any major effects on that. The vast majority of our energy prices have been hedged. So unless they are really taking a very, very big turn up, we are not gonna see a major impact on our profitability based on that. I'm gonna speak to some of the big energy companies and their forecasters.

They don't see the average energy prices going up uh substantially this year perfect and then a little bit about the competition you talked about the taxi uh players as as your competitive model uh might win over in the long run so it's it's in the where in the periods where they are giving large uh large discounts that that you get affected by but there's also a question here i've seen a new car insurance company coming in higher uh and others uh trending the growths or is it the taxi you are seeing right now and and and you don't know the the amount of it but what about your direct competitors are seeing anything from

from that side uh moving into copenhagen we don't see any new ones coming in but obviously we have uh higher and we have which is norwegian owned backed by a very very big company up in norway um we see some others that are also foreign owned um you know um i know they're looking here hi guys and they're looking at this presentation as well but um you know they're giving away their cars for free uh to attract new customers so i know that not all of their cars are out running uh for sure and it's a little bit annoying but you know that's something that we can mitigate i think

that was the last question i think i will uh i will uh say wish everybody a nice weekend and you too casper and thank you for taking us through your results and answering questions may everybody have a nice