Specialist
Former Global Head at ABB Ltd
Agenda
- Top-line sales sustainability in 2021-2025, tendering process outline and growth outlook for AC chargers vs DC fast chargers
- ABB’s (VTX: ABBN) competitive positioning vs ChargePoint (NYSE: CHPT), the oil giants and OEMs (original equipment manufacturers)
- Growth in ABB’s software offering alongside its hardware business, assessing the revenue generation opportunity’s magnitude
- Unit economics – pricing trends and margin dynamics in AC vs DC chargers and hardware vs software
Questions
1.
What’s your outlook for EV [electric vehicle] penetration? How might that outlook differ in the key regions of Europe vs North America in five years? A lot of the market growth relies on an equally high EV penetration growth in these regions, and research providers and ABB are giving different estimates.
2.
Market estimates suggest that the EV penetration rate in 2025 could potentially rise to 22%, and reach 10% in both Europe and North America over the same period. How realistic do you think these estimates are, based on your growth outlook?
3.
What do you think will be the key trends in the EV charging sector over the next five years? You mentioned a 60% and more growth on a YoY [year-over-year] basis for the electric charging sector.
4.
What software developments do you think are key over the next five years?
5.
Could you outline the different emerging business models in the charging sector, given we’re seeing capital light vs capital intensive? You implied that ChargePoint and ABB have taken a service-centric and hardware focused approach.
6.
Could you explain ABB’s operating model and product portfolio within the e-mobility segment?
7.
What changes do you think are needed for ABB to pick up growth? Fleet seems to constantly come up as a key growth driver for the sector within 5-10 years, and you mentioned the product offering can be honed.
8.
What do you think ABB’s rough split might be between hardware, services and software in the top line?
9.
What is your outlook for ABB’s growth over the next five years based on its positioning? We observed 50% CAGR in 2016-2020.
10.
Who do you consider to be ABB’s biggest competitors in the sector?
11.
Which of China’s manufacturers pose the greatest concern?
12.
To what extent do you think hardware will be a winner-takes-all market? Will there be room for multiple players?
13.
Where are the manufacturing barriers to entry that could prevent a low-price tech coming to market? You mentioned second- and third-mover advantage, and a lower-cost Chinese manufacturer entering the market could be a threat.
14.
What is your outlook for gross margins and how would you break it down across residential vs fleet?
15.
What is the maximum gross margin if it increases by 1pp each year?
16.
What might be a potential break-even operating gross profit margin?
