Hello, everyone. And welcome to Wallbox's Fourth Quarter and Full Year 2023 Earnings Conference Call and Webcast. My name is Charlie, and I'll be the operator for today's call. At this time, all participants lines have been placed in listen only mode to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session [Operator Instructions]. I would now like to turn the call over to Matt Tractenberg, Wallbox's Vice President of Investor Relations to begin. Matt, please go ahead.

Thank you, Charlie. And good morning and good afternoon, to everyone listening in. Thank you for joining today's webcast to discuss Wallbox's fourth quarter and full year 2023 results. This event is being broadcast over the Web and can be accessed from the Investor Section of our website at investors.wallbox.com. I'm joined today by Enric Asuncion, Wallbox's CEO; and Jordi Lainz, our CFO. Earlier today, we issued our press release announcing results from the fourth quarter and year ended December 31, 2023, which can also be found on our Web site. Before we begin, I'd like to remind everyone that certain statements made on today's call are forward-looking that may be subject to risks and uncertainties relating to future events and/or the future financial performance of the company. Actual results could differ materially from those anticipated. The risk factors that may affect results are detailed in the company's most recent public filings with the SEC, including in the annual report on Form 20-F for the fiscal year ended December 31, 2022 filed on March 31, 2023. We will be presenting unaudited financial statements in IFRS format that reflect management's best assessment of actual results. Also, please note that we use certain non-IFRS financial measures on this call and reconciliations of these measures are included in the presentation posted on the Investors section of our Web site. Also, a copy of these prepared remarks can be obtained from the Investor Relations Web site under Quarterly Results section, so you can more easily follow along with us today. So with that out of the way, I'll turn it over to Enric.

Thank you, Matt, and thanks everyone for joining us today. In addition to reviewing highlights from the full year and fourth quarter 2023, we'll spend some time discussing the current EV market and our position in it. We will also dig into the Generac announcement from December and why we are so excited about joining forces. Jordi will review our cost reduction achievements. He will offer some additional color on our quarterly financial performance and share some thoughts on our balance sheet as we prepare for a new year. And finally, we'll return to discuss our view of the market and what we are focused on in 2024. We'll end by taking questions from our covering research analysts. So let's get started. 2023 was a bitter year for us with some challenges driving both reflection and action, as well as exciting milestones and celebration. Revenue for the full year totaled EUR143.8 million, essentially flat from the prior year. This was a result of a softer demand environment that many anticipated paired with corresponding inventory adjustments by our channel partners. While the EV adoption curve is in the process of crossing the chasm and moving from early adopters to mainstream. These items drove variability in our forecast and results. And although those disruptions make for a challenging year, we focus on executing our long term strategic plan and achieve several outstanding milestones. We delivered 166,000 AC units and more than 1,400 DC units during the year, a solid outcome. We launched exotic new products to streamline our cost base to accelerate our path to profitability and forge meaningful new partnerships with global brands, including Generac, Costco, Kia, and Free2Move. We acquired an industry leader in ABL, placing us at the forefront of the largest EV market in Europe. And we raised…

Thank you, Enric. Good morning and good afternoon, to everyone. Our fourth quarter results came in as anticipated, driven by strong DC sales, stability within Europe and AC demand and contribution from ABL. Margins were softer than expected but we have identified a remediation plan and intent to make improvement through the remainder of the year. Cost controls continue to yield solid results and additional opportunities may present themselves in 2024. I'll provide more detail on these results and share some thoughts on the upcoming year. For the fourth quarter 2023, revenue was EUR43.3 million, up 33% sequentially and up 34% year-over-year. On a year-over-year basis, total revenue increasing both DC fast charging and AC, the latter a result of the channel destocking discussed on previous calls. Consolidated gross margin for the quarter was 32.8% and were impacted by continued product mix shift and the timing of warranty and obsolescence charge. We were able to further reduce both employee related cash expenses and OpEx, which amounted to EUR28.4 million in the period, excluding ABL. I want to thank all Wallbox-ers for their dedication and commitment to this initiative. It's taken everyone together to reach this target and we appreciate what you've helped us achieve. Going forward, including ABL, we anticipate both employee benefit or payroll expenses and OpEx combined to be approximately EUR30 million per quarter. This when paired with the gross margin improvement plan we've implemented is expected to allow us to achieve positive adjusted EBITDA in the second quarter and full year 2024. We commit to shareholders to keep this initiative in focus as we reaccelerate growth. Consolidated adjusted EBITDA loss for the quarter, including ABL, was EUR14.7 million, representing a 54% improvement over the prior year quarter. On a standalone basis, excluding ABL, we were able to…

Thanks Jordi. I'm optimistic as we enter 2024. Wwe worked very hard to position ourselves well for that coming year. Our growth will be fueled by new products like Pulsar Pro, Pulsar Socket, Supernova 240 in Europe or 108 in the US, by Quasar 2 with Kia and Generac. ABL's strong offering and our ability to cross sell both their products to our customers and our products to theirs will contribute meaningfully. It will be fueled by Wallbox's products sold through Generac’s extensive distribution network, and it will be fueled by new partnerships with leading brands like Atlante, Free2move, Costco and Kia. Our gross margins will be improved through cost engineering of existing products by better leveraging areas and their capabilities, by continued vertical integration of key components and by more strategic sourcing and price negotiations. Our personnel and operating costs will continue to be optimized through disciplined controls and headcount management. As a result of this, 2024 will be a year in which Wallbox achieves profitability, an important milestone in our history. And while much of our investment in infrastructure is complete, reducing the need for additional CapEx we will explore opportunities to further realize our global footprint, leveraging efficiencies and cost benefits. We'll also continue to reduce inventories by utilizing common components across multiple platforms, strategic vendor management and leveraging growth. For the reasons, positive free cash flow is within reach, which will set us apart from competitors and highlight the resiliency of our business model. And we will allocate that capital to the higher return projects, including M&A, new product innovation and capturing market share. In summary, meaningful growing revenues through both organic and inorganic means, new products and big commercial partnerships while improving gross margins, all off a lower operating spends base while conserving cash will create significant value for shareholders this year. That's our plan and we are aggressively executing it to the shareholders, partners and employees who have trust us and believe in us. We thank you and we are grateful to have you with us. We'll work hard to ensure you are rewarded. With that, we are ready for the questions from our analysts.

Welcome back everyone. To our analysts we ask that you pose one question with a follow up if needed. Then reenter the queue if you have more questions. This will allow each of you to ask your questions upfront and we’ll to as many questions as time allows. Charlie, I think you have some instructions for our analysts.

[Operator Instructions] Our first question comes from George Gianarikas of Canaccord.

If you could just share please a little detail on the broad strokes of the Generac relationship? And I know you're still working on the commercial agreement. But whose product or whose name plate is going into different channels, what is the relationship going to be when there may be some channel conflict and [Technical Difficulty] retailers, any details that would be helpful?

So right now the main focus of the agreement is on the Level 2 chargers for North America. Obviously, this 8,700 installers, electricians that has access to will immediately allow an important growth of this channel. Next step at which we are working in parallel actually it's fast charging sales, Supernova sales, because this something they can sell in the US in their commercial industrial business, but also in Europe, they are very strong in the commercial industrial space. They are actually working on a product they already have that includes a generator plus storage, plus solar storage that can be paired with Supernovas. So we are working also together to make sure we integrate this product. So these are the two first things. The third thing is going to be Quasar, which as we commented in April, we are starting to deliver it with Kia, which we are very excited, Quasar to do start in the US delivering it. And to ensure we don't [Indiscernible] at the end both companies have the same goal. We have the goal to make both companies successful. We are making a product under their brand and with Wallbox branding, we are connecting with their software platform. Obviously, we provide our infrastructure and our software work, we make sure they take advantage of their ecosystem. So if you want the Wallbox ecosystem, you can buy Wallbox with the Wallbox app and all the things that has the Wallbox ecosystem. If you want the Generac ecosystem, you can do the same.

And maybe as a follow up, just to focus on ABL. Could you just kind of give us some comments on how that's going? And also the financial contribution for 2024, from a revenue perspective, you mentioned EUR7 million in Q4, I think you said one month. What broadly can we expect from a revenue perspective from ABL in 2024?

So basically, we announced that we will be between EUR60 million and EUR75 million of revenue, we are still in that range. When we look into the February numbers, it looks like the company is working towards that direction, and it's normal. The first quarter has been only one month of revenue. Even the fact that we had to integrate the systems, we moved from an old company to a new company. We had to move customers, we had to move different agreements and contacts with customers, so that took one month. And then we had Christmas, which was the last week of December, which in Germany, there's not really much sales activity. So when we look right now, things look like we'll be on that EUR60 million to EUR75 million. And the main focus now is making sure we make a successful cross selling. Our priority number one, apart from what we’ve done now, which is restart annual operations. The second thing is that we can take advantage of the eM4 four, which is ABLs product. So we are starting very soon to sell it to other markets where Wallbox has presence and ABL has not, because ABL is a mostly a [DACH] region company. And we’re also bringing a Wallbox Pulsar ABL version for the German market. So customers are very enthusiastic. They are looking for both products in both ends of the spectrum in home charging and commercial charging. And I think that it will provide an extra revenue that we have not accounted in our focus.

[Operator Instructions] Our next question comes from Ben Khalo of Baird.

Maybe just with the tough backdrop for some charging companies, can you just maybe update us on how you think the competitive market has changed and kind where you guys sit at it both in home charging and commercial charging?

So I think we have to differentiate AC charging Level 2 from DC fast charging. So in general, if you are a DC fast charging company today that has an acceptable gross margin like we, over 30% and very high up time, the market is a blue ocean. Basically, we've seen that we've grown 325% in a year and we continue expecting import and growth given the fact that we just recently launched our Supernova in the US and we're launching Supernova with higher power in Europe, Supernova 200 plus, 240 kilowatts. In terms of AC charging, I think it has been more challenging, 2023. The channel destocking has impacted most of the companies. And when we look our public peers in Europe, we've seen an average at 25% to 50% Level 2 drop in selling in sales. We've been hit less than others given our European presence and the presence in many, many, many markets. And if you look at the revenue improvement in Q4, we already can see that the channel inventory issue, it's easing, and we had EUR5 million of improvement coming from organic sales.

And the OEM partnership channel, just how much is that contributing and how much time you saw -- I saw the Lucid is going to start offering a Wallbox charger. I think, they announced that. And I'm just wondering if of your channels where you're seeing the most, I guess, take out of it or growth out of the different channels?

I think, the OEMs have tried many times to their own product. And at the end, it's very challenging to have compliance in all countries compliance with the installation. You have to do the actual installation. And to be competitive, you have to be able to claim different subsidies in different regions. You have to be able to connect with utilities. So there's companies that have longer term in the space like Nissan and we're working with them globally or Kia, one of the major players in the EV space, we are also working with them, or BYD it’s also -- we work with them in some markets. So it's very challenging to be a global EV charging player that can be competitive in every market. And that's what the focus of OEMs. We keep working with them. We collaborate with them. And an example of that is Free2move, for example, which is part of Stellantis [Indiscernible]. And what we are doing is making sure we provide the most competitive products for the different brands of the company. But we believe that that's the way forward given all the challenges that you need to be a competitor [Indiscernible].

Thanks Ben. Charlie, I think that that's all the questions that we have in our queue. So if that's the case, we're going to let everybody go. We hope that you found today's call a good use of your time. Please watch our Web site for details if you're interested in meeting with us, because we're going to be at multiple investor events in March. So let us know if we can help you in any way. Have a great day, everyone.

Ladies and gentlemen, this concludes today's call. Thank you for joining. You may now disconnect your lines.