GreenMobility A/S ($GREENM)

Today's presentation may we have the pleasure to present the -- the presentation will, of course, around your Q1 2026 training update you released yesterday. So it will not be an in-depth into the balance and everything. It's primarily the operational metrics you released yesterday. As always, we are joined by CEO, Kasper Gjedsted, to take us through the presentation and answer questions in the end. As already there's a box down below, have some creation has come in. Do feel free to put in more questions, do feel free to do it in Danish. I will try and translate to the best of my ability. But I think for now, I will leave the presentation to you, Kasper.

Okay. Thanks a lot, Michael. So after this disclaimer, just a quick intro to any new viewers in this presentation. GreenMobility is a car sharing company. It works very simple with an app. You just download the app on your phone, then you swipe on your app, when you're next to the car and the car opens and you drive to your destination, and you swipe on the app again, leave the car, of course, swipe on the app again, and then, we're going to charge your credit card for the rent of time. Our customers can rent the vehicles here between 5 minutes and up to 30 days. This year, we are going to have around a total of 1,600 vehicles. All of them are electric. We have the core backbone of the fleet is the Renzo. It's small compact size city car with a relatively big battery for its size. And we also have some what we call premium cars with bigger batteries, more space to them. We have the posters at the moment. And then, we also have some mini buses, and we also have vans, which are also a very popular category for us. So before I dive into Q1, I just want to give you a recap on the 2025 performance. I mean, it has become a quite popular product or services, car sharing in Copenhagen and in where we were presented today. So more than 135,000 trips are being taken on a monthly basis. We have had in '25, 1,400 units in the fleet. We're going to add around 185, I'll come back to that -- 185 more vehicles to the fleet. Our market cap as of yesterday was around DKK 450 million. And then, we made 4 adjustments to our guidance, positive adjustments to our guidance last year. The latest that we communicated was a 17% to 19% growth in the revenue and 47% to 52% growth in EBITDA versus the year before. And we actually surpassed that, we had a 20% growth on the top line, and we had a 57% growth on the EBITDA. And our growth continues into Q1, where we see an 8% increase in revenue. The 8% increase in revenue is very important to say that is in the lowest of our quarters in Q1. In January, February, people don't have -- well, they don't have as much money as they do in other months because they spend it all in Christmas -- in the Christmas month. So that's one thing. The second thing is that the underlying demand is just not so big. There are not so many people going to summer houses or to visit whatever places in Denmark. So there's not such a big demand as in other quarters. And then, we had a very rough winter if some of the Danes looking -- excuse me, watching this. You remember, there's a lot of snow in quite a considerable amount of time in Denmark this year this winter. That also halted our operations, I would say, in some of the worst days. So in spite of that, we actually have an increase with an 8% in revenue. Also, I also want to say that this was with the existing fleet. So for the quarter, we didn't add any vehicles yet. And then, we saw a 60% increase in EBITDA, which is quite a substantial increase in EBITDA. And that also comes from the continuation of our operations excellence program. Our razor sharp focus on our cost and a continuation of the lowering of the cost of acquisition of the customers. And as a consequence, we also see that the EBITDA margin increased from 21% in Q1 25% to 31% in this quarter. And then, on other news for the quarter was that we launched our new app. It has a lot of benefits, not just for the customers, but also on the back end for us. But the customer has a much better customer experience prior to the old app. For us, it opens up more opportunities in terms of yield management. We can start to work with that. The old app didn't permit for that. We also had some back-end efficiencies like that's a part of our excellence plan that we can operational excellence plan that we can now start activities on that, which are app-related. So a lot of good things are coming from that. And I think there was a very good migration that we did to the new app. And we have also continued the digitalization of the whole fleet with the rollout of damage sensors, cameras, AI-enabled cameras. We have some smoke and vaping detectors across the fleet. That was also continued in Q1, and we also saw results of that. And also, that has also been a factor in increasing our EBITDA. I've talked about this before. There is some revenue in that, in particular, on the damage, also of the cameras, the AI-enabled cameras, smoking vaping, also revenue. What we really want to do is to -- I mean, it's fine with the revenue, I call it toxic revenue. We'll take it because it's there. Obviously, we're going to pick it up. But all of the things that we're doing is actually to make a better customer experience. That's the target. That's the end goal. We think that's much more profitable in the long run to have an even better customer experience than just charging people for smoking. We want to prevent that instead, right? And then, the very first of the 185 additional vehicles were inflated, but it was at the very end of the quarter. So it didn't have any effect, I would say. And the full in fleet of all 185 cars and vans are expected to be finalized in Q2, in line with the seasonal demand, which is picking up now. So that's about that. And speaking about the new vehicles, they're all financed. We don't even have a down payment. And we can do that now because of the 2025 report and the results from 2025 was in such a good shape that we can actually get credit lines now. So we secured a DKK 30 million lease facility for new vehicles, no problems whatsoever. And there was 0 down payment as I mentioned. And this is the first step on supporting the growth over the next 3-year strategy period here. It's also our modernization. It's the first step in modernizing our fleet, which gives a better customer experience. We also can use -- can get more customers because of the new cars and what we see here is a small car. We also have some vans coming in or the means are actually in fleet now. This is a bigger class car compared to the Zoes, compared to the micras here. It just gives them more use cases because they have more space and more range and a better comfort. So more people can actually see themselves into that. And then, of course, also a very important, what we see is that we are getting a lower TCO, total cost of operation in these cars. The cars are cheaper, they're much cheaper today than they were when the ZOEs were acquired. They have a full warranty over the lifetime. They have 5 to 7 years of warranty, all of these cars. That means that we are looking into substantially lower operational cost on them. They have a slightly better consumption per mile. So we talk about petrol cars in the old days, not many years ago, where they had -- we talked a lot about consumption. But actually, EVs also have a consumption element, which is super relevant to us because all of our prices are including electricity rate. And then they have a lot of new safety equipment that the Zoes don't have, safety features, safety assistance. And all of these safety assistance will also lead to fewer damages going forward on these cars compared to the current fleet that we have. So all in all, I'm super glad that we -- the company is now in a state where we can say that we can go out and finance also the growth going forward over the next 3 years by leasing facilities. And recapping here, we are keeping our guidance. It's still 8% to 12% versus 2025 on the revenue side, and it's still 12% to 16% on the EBITDA side. And then just to wrap up this short presentation on the Q1. I just want to reiterate that in 2025, I think it was the fall, we communicated our financial targets towards 2028. And we have basically 4 strategic priorities -- 4 strategic pillars that we are building this strategy on. The first pillar is that Denmark is kind of remain the core market for the foreseeable future. We have a lot of untapped -- well, first and foremost, this company has already tried its luck on an international growth strategy. They didn't go well. Now, we're focusing on Denmark. We have changed the whole organization. We have changed the whole company. Basically, it goes very well. So don't change a winning horse is sort of what we are doing right now. But we also have a lot of untapped revenue growth. We have identified a lot of revenue pockets for the Danish market. So it makes a lot of sense to go here and utilize all the untapped potential that we have here. We believe that car sharing is still in its early adoption phase. And that's why we are confident in the guidance on the 8% to 12% annual growth on the top, and we also can see some levers on the EBITDA growth and the continuation on making the whole operational side of the company even more efficient in the years going forward. And then, as you could see from our annual report '25, our balance sheet has strongly improved. That means that we will also consider options for capital allocation, and that includes share buybacks. And our aim is actually to be able to redistribute cash when the solidity is above 20%. And if you looked at our annual report, the solidity is actually above 20%. So that is not up to me, it's up to the court to decide what's -- what will happen there. And just if there are any questions around the 20%, I can say why is it the 20% solidity there, that we have as a rule of thumb. And that is actually because that's what the finance companies are telling us that the solidity has to be around that number in order for us to have new cars financed. So everything is actually -- it fits, right? And then, the last of the pillars is that we won -- we have communicated that we want to bring autonomous driving to Denmark. And I can see that as a couple of questions around autonomous driving. So maybe I should just -- I don't know, Michael, maybe it's the time -- it's the last slide here, so maybe I could just communicate -- excuse me, I can just comment on that right away. So why is GreenMobility, all of a sudden, talking about autonomous driving. We have a very good company now. We have a profitable company with a good growth, some tremendous efficiency gains, and we have communicated going forward that, that will continue.

Yes. Actually, there are some more specific ones. -- the perspectives of the South autonomous driving, self-driving cars. I know you hate to work robotaxis you're not a taxi company, but and also out in the outer areas of Denmark. You talked a lot about -- you had a lot of discussion with impacts in Denmark also for the outer regions, not only in the bigger cities. So any comments on the perspectives of the soft diving cars? How much have we moved since we last spoke with you? And and maybe also the perspectives outside the bigger cities technology.

Sure, I can comment on that. Just for any new viewers, very shortly. Why are we doing this? We have a very good company now in the existing business that we're doing. There are 2 main reasons. First one, we don't want to have a knocky moment right, where we don't develop alongside the technology. Second thing, which is the most important is that our current fleet, they run up to 6 trips per day. Self-driving cars, we know that from other countries. They are driving between 22 and 26 trips per day. At the same time, these self-driving cars are making 90% fewer damages than cars driven by humans. They're simply much better driving cars than we are. That means for a company like us, we're looking into a substantially higher revenue per unit per asset and a substantially lower operational cost in terms of damages and in terms of insurance costs, for example, which is also a very high cost on our expenditures. So that is the primary reason. And the technology is -- it's right now, it's -- we are actually seeing that the technology is working. We see that in the U.S., we see it in China and the Middle East, and the cars are also coming to Europe now. They're driving in London now since 2nd of January. 3 operators driving with self-driving cars. They are probably going to drive without drivers over this summer, our safety drivers. So we have millions of people on a weekly basis already that are being transported in self-driving cars with no chauffeurs at all. We -- in November last year, we did an introduction in front of the Danish Parliament where we had our self-driving car exhibited. We have the Minister of Transport there. We had the mayor of Copenhagen, who was there attending it and giving some speeches and saying, this is what they want. And what happened after that, event was actually -- I was contacted by several municipalities around the country here, who said, "Can you help us bringing autonomous vehicles to our municipalities?" The thing about Denmark is that the municipalities have a very high cost for mobility in their areas. There's a very high cost associated with running buses and trains and what have you in those small municipalities around. So they said, could we set up some projects around helping us doing that. So we are actually looking into various projects with all sorts of big and small municipalities around Denmark now. So let's see what comes out of that. I think it's super interesting. And it was not an angle to this whole autonomous driving that I had foreseen that demand from small municipalities would be so big. But it's a really problem that I think GreenMobility can help them with.

And if you should be a little bit more specific, how is the regulatory? I guess, you sell, but you have an employee who is pointing into that regulatory environment and then Mark trying to make this happen. How are those talks going or if I should I don't know whether you want to give us the details to that on some kind of a feeling on how is that site going in those discussions with the authorities?

Without being too detailed with the risk of putting it to sleep, I would say that we are taking on different levels. So you have the EU level where we had talks and trying to push the agenda on the EU level because -- but that's a very slow-moving machine, as you know. And then we have the national level. And when I speak to the Minister of Transport, he's very, very clear that this is something he wants to do. And the Danish government has actually set up, and the Danish Parliament has set up some rules and legislation that actually allows us to drive with self-driving technology around Denmark already now. Through yes, a special tool that they have from a lawmaking perspective. So we can actually go and start our operation now. Now the big challenge in this game is to get the cars right. The self-driving cars are an extremely scarce resource because the bigger countries have all of a sudden woken up and say, "Hey, we want to have that". It gives us tremendous opportunities to bring much more mobility at a lower cost. And it gives us an opportunity to increase road safety tremendously. So we are in at a fight now, I would say, or a race, not a fight, but a race, but all the big countries we also won that. And I think we have a very, very, very big advantage seen from a green mobility perspective because we have already at a very early age -- excuse me, at a very early stage in securing this supply chain. We did NOI with Tensor in the U.S. on 2,000 vehicles. We're also speaking to other manufacturers at a very early stage. Last year, we started that, and we are very far ahead with that. And we also have an advantage from an operational point of view because we are already in a very, very -- from an operational point of view, a very complicated operation, I would say, because handling 135,000, 150,000 trips a month is quite substantial, and that's actually what you need to be successful in this game. And then the third thing that I want to say from the perspective of premobility is that we also have a lot of data. We sort of own a very large chunk of the population in Copenhagen and in almost the 2 biggest cities of Denmark and that we can utilize because we already know where they're driving from and to. We know their patents. We know how much they're willing to pay. We know them by name and we can communicate to them and so on and so forth. So we're sitting on a pile of goal from a data perspective that really can come in to work now with the autonomous vehicles.

And of course, there was a lot of news flow when you presented this Tensa car and minipig calling, as those talks continued? Are you now present the cases on savings and they are giving you the idea on how expensive it is for them to run a bus with 2 passengers in? Was it -- you say you won talks, but have they continued, if you understand what I mean? It besides the news flow.

Yes.

I know you can't mention any specific, but it seems.

No, no. No, they are. And I actually have a meeting with a municipality today later today, which is a continued talk with them. We are trying to set up projects, try to scoping projects with them. Let's see where that ends, but we are trying to do that together with them. There is a tremendous demand for this among the health is in Denmark because of the huge cost they have for subsidization of hugely loss-making bus routes. I talked to our municipality the other day. They said they were paying -- this was the worst example. They were paying -- actually paying DKK 3,000 per passenger, right? It's just an absurd amount of money that they're paying to uphold mobility in very sparsely populated areas of Denmark.

And there's a question here, will you also be able to call a self-driving app in the rural areas? Maybe it's a little bit premature to be specific. I have asked you now, but I guess maybe a little bit premature to be that specific.

It's 1 of the things that we are going to -- that we talk to municipalities about is that the use cases for this. And maybe we're going to set up the projects so that we can also test out a scenario like this described by this viewer. So I think it's -- let's see where we're getting with them. I mean, we are a little faster than they are. There's no -- that's how it is, right? Municipalities are not that fast, but we'll see where we're at.

And then there's a congrats to the good results, also giving you more money to invest. So there's a little bit of a question here. Will that actually mean that you will also put out more zones? You are zone driving where you can drive into zones and so on. So there's a question here, whether you will actually expand those zones, whether that's -- now, we have maybe more capacity to invest in that on the good results, but does it make sense for you to expand into more zones?

Yes. So we were actually very successful on expanding our zones into the very northern part of Copenhagen and also when leaving Copenhagen into an area called. What I want to say about it is that we might expand our zones. It's definitely on the table, but we're going to do it in a very controlled manner. So whatever we are doing is from a conservative standpoint. We're going to do it gradually and not just open up the entire map. That's super important for me to say that everything is done in a controlled, data-driven manner in our company. But it's definitely on the table. Of course, it is.

And then, the question here about the effect of new cars in the quarter, the new fleet. I guess, I think you already answered that very much.

Yes, it's hardly anything you could say you can see. So the effect will actually of the new cars, we will see for the remaining quarters.

And then with the strong start to the year, earnings wise, on the EBITDA, what is keeping you from upgrading your guidance?

Well, it's -- I would say it's way too early. We have -- we wake up every day, and you don't know if there's a new war going on or another conflict or whatever is going on in the White House that can have a spillover effect even on a small company like ours in Denmark. So we think there's a lot of uncertainty in the world going on at the moment, 1, 2, it's just 1 quarter that we have to base this on. We are looking into our much higher season from a demand perspective. We want to have some more data before we communicate whatever we want to communicate on that matter.

Then there's on the earnings growth, it's so much higher than the revenue growth, anything unusual in this quarter or is keeping your cost base flat and then the extra revenue is actually almost traveling all the way down to the bottom? And so anything extraordinary? Or is it you keeping the bottom line flat? Is it something else describing this much higher growth?

No. I think it's a continuation of the good work that we did in 2025. Also, where we did a lot of initiatives where we are sort of reaping the fruits of that now. That didn't stop with the 31st of December, right? So all the initiatives that we have done in connection with this very big turnaround of the company, as you know was heavily loss making just a few years ago. That's what we are seeing the benefits of now. So it's a spillover effect. It's just 2025 results that are continuing into 2026 here. So no major onetimers on that one.

Yes. Yes, then there's -- there's -- whether you could show the percentage of the cars, which -- how many zoes and so on, I don't -- on a later presentation, but maybe you can give us -- I'm just going to the cars here, a kind of a rough percentage of your fleet on how it is.

A good idea. I mean what we are having -- what we are going to see is that we're going to have before this always was almost -- they were almost 100% of the fleet, I would say, 95% of the fleet. And what we are going to do and the fleet strategy going forward is that we're going to have a more diversified fleet. The reason is that we have different customer segments with different needs. So that's 1 reason. The second reason is the residual values. These cars have a certain lifetime, and after that, they have to be sold again. And it is, from an average point of view, you're just getting better residual values if you have a diversification of the fleet. So that's why we don't see going forward that we will have all of the cars from 1 manufacturer or even in the same white color as you have been used to. You will also see different colors of the cars because on average, you will also get a better residual values, if not all of your cars when they're being sold, have the same color.

Perfect. Then you've launched a new app. When can you expect to launch a flexible or search pricing, maybe a better work for that? I know it's 1 of your growth levers you want to pull when the new app is coming. So there's a question here. When will that be possible for you?

Yes. So I've been saying for quite some time that I haven't been satisfied with the old app and the lack of abilities for running professional revenue management, as you call it, or yield management. Yield management is something when you introduce it, and it's fully introduced. It gives you around 5% to 15% of revenue increase on that one actually. That's what the model say anyway. And we have started the first steps toward that -- towards that. I mean, the new app was introduced, what was it, 2 weeks ago, something like that. And we have started the first steps in that. If you look at the app today and the cars you will see a substantial bigger amount of cars that have been discounted, for example, in particular, in the areas outside of the central zone. We're doing that to get people who might have thought, "Oh, should I take my bike or should I take the car"? We want them to take the curve, of course, or just giving them a much better price point to grow demand. So we are actually using it already now, and it's automatic. It's automated. It's based on -- a lot of it is based on AI that is actually telling us where the demand is, and it's forecasting demand based on a lot of more factors than we can do and based on a lot of more data that we could comprehend as a person, and then, we have a robot to do it for us. So it works like a term in the first phase, and we're going to gradually build out the sophistication around that yield management.

Perfect. Then there's a question about loyalty programs. Actually, are you using that enough. There's a question here. Wouldn't there be a lot of, yes, keeping the customers, caring them in your cars, using your cars by trying to expand the loyalty programs. I don't know whether the new app will do that or is the back end or whatever, but there's a question here about, are you using the loyalty programs enough? Could you maybe get more out of your business by giving loyal customers and the customers who use it, actually lower prices when they have used it more than others?

Well, we actually have a program called Green Saver, which is a subscription program where if you subscribe you are eligible for lower prices. Loyalty programs, as the traditional way of having loyalty programs, that's a very big discussion. If you ask the most successful airline in Europe, if the loyalty program is a good idea, that is right now, they would say definitely no. It just removes the transparency from the ability to communicate the loyalty prices because you are sort of giving a hidden discount to you through your loyalty program. But if you ask some of the loss-making companies in the airline business, there, I'd say, definitely, yes, we know it from SIS and Lufthansa and all of the rest. It can be an asset. It's definitely something we discussed, but it's not something that we have right now. And let's see, maybe in the future.

And then there's a comment to us, it is great. We know we have a live audience that we did -- the comments that I heard you not lighting the robot taxi actually anything. But I are not growing into being that type of company when they're self-driving, and we should not joke about it, and we should not put it away, then that maybe is what part of your company will be in the future. So a little bit thoughts about that maybe we're a little bit harsh saying, we like phrasing autonomous driving vehicles and not robot taxis. So there is someone commenting whether we are missing how the world will move. Any thoughts about the customer.

No, I think it's a very good and relevant comment, actually. I've coined -- because I want to keep it in our universe. So I call it the autonomous car sharing cars, rig, autonomous car sharing cars. Others call them robotaxis, others call them EVs, autonomous vehicles. The kid can have many names. The fact of the matter is that it changes -- it can change -- our company can change the taxi industry, it can change the bus industry, train industry tremendously. And we're not that far away now with the occurrence of AI and the much bigger calculation power that the new chips from, for example, NVIDIA has. So no matter what you call it, it's definitely something that we are moving into. I don't think all of the pieces of the puzzle have been gathering it. I think it's a matter of where we are going to find our places in this. We don't have a particular need to be the very first. We have a -- I think we have a particular need -- not a need, but 1 to be among the first operators because we have so many good prerequisites for doing this. As I mentioned before, we have the operational prerequisites and we have the operational knowledge, and we have the data, and we already have secured the supply chain on it. So we have a lot of advantages as a company going into this space. It's not going to be easy. We don't put up like someone else in the industry. But we definitely have a good chance, and that's why we're also going to -- we're going to go for it.

And now you will remove my possibility from waving in when I use your cars. But I in also missed that I can put a bike on it. Let's add -- so there's a little bit of consumer tips. Why can't you put a bike on it, a bike ride you can with the taxis, that is thought after here. Is that too impossible? You don't have what you call it a hook on the end. Would it be not wise for you to do that revenue-wise because it would take up all the cost time? Just to end with a little consumer question here about why can't we take bikes with us?

Yes. Well, Michael, you're still welcome to baby in our cars, which just had to...

[indiscernible].

And no, I come from the current industry. I've been CEO of revs in Denmark and Sweden and for Sixth. It's just a hassle. I mean, we are running a very big factory here, 100 -- millions of trips every year. And if you want to have individual needs for very small consumer segments, which this is, it's just not working from an operational and cost perspective, and that's the way it is. We -- you have to take what's on the shelves, and otherwise, you will have to find someone else because it doesn't make sense from an operational and cost perspective, unfortunately.

Perfect. Let's end with that. Thank you, Kasper, for taking us through your results. And I think we got a lot of questions getting us around in the case, especially on the self-driving car. So thank you to everybody listening in. Everybody, have a nice weekend.

Thank you.