- Revenue growth of +53% to €111 million and improvement of the adjusted EBITDA margin1 2022 to (13) % of revenue
- Liquidity position of €41 million at the end of December 20222
- Short and mid-term financial targets
- 2023: Revenues above €160 million and significant improvement in adjusted EBITDA
- 2024: Revenues of over €235 million and break-even point
- 2028: Revenues of over €850 million and an adjusted EBITDA margin of 15%
Paris, April 5, 2023 – 5:45 p.m. CEST – Forsee Power (FR0014005SB3 – FORSE – the “Company”), an expert in smart battery systems for sustainable electromobility, today announced its 2022 financial results, as approved by the Board of Directors on April 5, 2023.
Christophe Gurtner, Founder & CEO of Forsee Power states: “Thanks to its unique positioning in the electromobility market, a sector with accelerated growth outlook, Forsee Power is showing a marked improvement in its commercial and financial performance. During 2022, the Company recorded strong sales growth (+53%) and its profitability metrics improved significantly compared to the previous year. With a backlog of 2023 confirmed orders that is already well above 2022 sales, and the multiplication of partnerships with leading players, Forsee Power is facing strong demand from the transportation industry, which is enthusiastic about its smart battery systems. The Company intends to continue deploying its operational plan, which is reflected in the ambitious short and mid-term financial targets that demonstrate our confidence in the coming years”.
Key performance metrics
The Group no longer monitors EBITDA as a performance metric and considers Adjusted EBITDA, a non-GAAP measure, as a performance indicator.
Adjusted EBITDA corresponds to operating income before amortization and impairment of intangible assets, amortization of rights of use on property, plant and equipment, depreciation and amortization of property, plant and equipment and net impairment of assets. It is also restated for share-based compensation expenses. The Group considers that these expenses do not reflect its current operating performance, in particular for equity-settled compensation plans, as they do not have a direct impact on cash.
The reconciliation of this aggregate with the IFRS accounts is presented in the table below:
|In €m – IFRS standards||2022||2021|
|Underlying operating income||(30,1)||(26,0)|
|Amortization and impairment of intangible assets||(4,3)||(2,3)|
|Amortization of rights of use on property, plant and equipment||(1,3)||(1,1)|
|Amortization and impairment of property, plant and equipment||(3,5)||(1,3)|
|Net impairment losses||(3,6)||(0,2)|
|Share-based compensation expenses||(3,4)||(5,6)|
|Employer’s contribution to share-based compensation||(0,1)||(1,1)|
Key figures from the consolidated financial statements
|In €m – IFRS standards||2022||2021||Var (%)|
|Adjusted EBITDA margin||(13)%||(20)%||+7pts|
|Consolidated net income||(32,6)||(38,1)||15%|
The audit procedures on the consolidated financial statements have been performed and the certification report will be issued after finalization of the verification of the management report and the due diligence relating to the electronic ESEF format of the 2022 accounts.
|In €m – IFRS standards||2022||2021|
Annual results 2022
In 2022, Forsee Power achieved revenues of €111.0 million, up +53%, and outperformed its initial target of €100 million4.
The heavy vehicle segment grew by 74% in 2022. As anticipated, its share of the Company’s business continues to grow and now represents 79% of 2022 revenues, compared with 70% in 2021.
The light vehicle segment grew by +6% over the same period and represents 21% of the Company’s sales, compared with 30% in 2021. Forsee Power’s key accounts have focused on developing new generations of products for mass production starting in 2023. The Company thus benefits from a favorable outlook for the current year in the light vehicle segment.
The Group’s adjusted EBITDA margin improved significantly by 7 points compared to FY 2021, to
-13% (compared to -20% the previous year). This improvement is mainly due to:
- growth in volumes sold ;
- improving industrial productivity;
- contained operating
Operating profit will be €30.1 million in 2022, up 10 points to -27%, due to the increase in depreciation and amortization to €12.7 million (compared with €4.8 million in 2021), partially offset by the decrease in the IFRS 2 charge of €2.1 million.
The financial result for the year improved thanks to the positive impact of the decrease in the cost of financial debt and amounted to -1.7 M€ compared to -11.2 M€ in 2021.
Overall, net income has improved by 15% to -€32.6 million in 2022 from -€38.1 million in 2021.
Consolidated cash flow of the Group
|Cash flow from operating activities||(24,5)||(18,3)||-6,2|
|Cash flow from investing activities||(9,1)||(10,2)||+1,1|
|Cash flow from financing activities||(6,0)||87,9||-93,9|
|Change in cash and cash equivalents (excluding the impact of exchange rates)||(39,6)||59,4||-99,0|
A solid financial structure
The Group has continued to optimize its WCR (Working Capital Requirement), which will represent 26% of revenues in 2022, compared with 31% in 2021.
In addition, Forsee Power has continued its efforts to optimize investments, with capital expenditure (excluding the impact of IFRS 16) in fiscal year 2022 amounting to €9.1 million, or 8% of revenues; a lower level of expenditure than in 2021 (14% of revenues).
In total, cash available at December 31, 2022 amounted to €31.0 million, compared with €70.7 million at the end of December 2021, to which should be added a €10.0 million undrawn line of credit with the European Investment Bank, for a total of €41.0 million in available cash.
The negative cash flow position from financing activities is mainly due to the payment of IPO-related expenses (-€1.2 million) and repayments of bank loans and right-of-use liabilities (-€4.2 million).
Gross financial debt was €60.2 million at December 31, 2022, compared with €53.7 million at December 31, 2021.
At December 31, 2022, the Company had shareholders’ equity of €39.6 million.
In order to support its long-term growth strategy and increase its financial flexibility, the Company is considering several financing options, including debt and/or equity.
Strategy and outlook: strong commercial momentum in 2023 and medium-term visibility thanks to an order book of around 1.4 billion euros5 by 2028, enabling the company to set ambitious new financial targets
In 2023, Forsee Power intends to maintain a sustained growth rate with the development of numerous projects on all continents. To achieve this, the Company will be able to rely on a backlog of firm orders for 2023 6 that is already well above the 2022 sales figure of €154 million.
In the heavy vehicle segment, the Company will capitalize on its strengthened position in the bus market, with more than 1,000 buses to be equipped during the year, and the completion of numerous projects in the off-highway, rail and truck markets.
In the light vehicle segment, the Company anticipates significant growth in revenues thanks to the ramp-up of major contracts, particularly internationally.
To support its future growth, the Group plans to launch new generations of products in 2023.
Thus, in 2023, Forsee Power is targeting revenues of over €160 million and a significant improvement in adjusted EBITDA.
In the long-term, Forsee Power has an order backlog of approximately 1.4 billion by 2028, coupled with an ambitious operational plan based on (i) the deployment of its gigafactory in the United States with a production capacity of 3 GWh by 2028 (ii) the continued internationalization of its customer portfolio (Japan and Australia) and its expansion in high value-added segments (bus, rail, off-highway and light vehicles); and (iii) the continuation of its R&D work in order to broaden its product and service offering.
Forsee Power believes that the combination of these factors will enable it to achieve revenues above €235 million in 2024, and a break-even adjusted EBITDA rate.
By 2028, Forsee Power estimates that it will be able to achieve revenues of over €850 million and an adjusted EBITDA margin of 15%.
Since its IPO, the Group has also decided to limit its medium-term objectives7 to sales and adjusted EBITDA, and thus to no longer communicate EBITDA, working capital requirements, capital expenditure and the weight of the Light Vehicles and Industrial Tech (LeV & Ind Tech) and Heavy Vehicles (HeV) business segments, which are no longer considered to be in line with its strategic orientations and ambitions.