Heramba Electric (PITEF) investor relations material

Executive summary

• Heramba Electric completed the acquisition of Kiepe Electric in February 2024 and went public on NASDAQ in July 2024, focusing on decarbonizing commercial and public transportation globally.

• Kiepe Electric, with over 100 years of history, specializes in electrification solutions for rail and road vehicles, including high-power charging and smart fleet management.

• The company operates globally, with strong bases in Europe and North America, and aims to expand further, especially in the U.S. market.

• Leveraging German engineering and technology, the company is positioned for further expansion.

Financial highlights

• 2023 revenues increased by 27.6% to €152.8 million, with Germany accounting for nearly 50% and the U.S. 12% of total revenue.

• North American revenue grew by 57.5%, while European revenue increased by 24.7% year-over-year.

• Net income was €407k in 2023, reversing a net loss of €21 million in 2022.

• Order backlog reached €621 million, extending to 2032, with 80% from system integrator business and 20% from maintenance.

• Ended 2023 with no debt and €32.5 million in cash equivalents.

Outlook and guidance

• 2024 faces revenue and profitability pressure due to project delays and supply chain instability in Europe, but North America remains a growth driver.

• Strategic focus on increasing higher-margin component, service, and modernization business to reduce risk and improve profitability.

• Targeting a reduction in system integrator business share to 50-60% of revenue.

• Cost reduction initiatives underway, including sourcing from low-cost countries and reducing administrative expenses.

• Management expects continued business growth driven by global decarbonization trends and aims for cash flow positivity.