Welcome to the Gogoro Inc. 2024 Fourth Quarter and Full Year Earnings Call. This conference call is now being recorded and broadcasted live over the Internet. Webcast replay will be available within an hour after the conference is finished. I'd like to turn the call over to the Gogoro team.

Welcome to Gogoro's 2024 Q4 and Full Year Earnings Conference Call, hosted by our Interim CEO, Henry Chiang, and CFO, Bruce Aitken. Hopefully, by now, you've seen our earnings release. If you haven't, it is available on the Investor Relations tab of our website, investor.gogoro.com. We are hosting our earnings conference call via live webcast through Gogoro's website, where you can also download all of the earnings release materials. We will also be displaying the materials on the webcast screen as we go. [Operator Instructions] Henry will provide a business update and outline our plans and vision for the future. Bruce will then go into the Q4 and full-year financial results in more detail. And then we will open the line for Q&A and answer as many questions as time allows. As usual, we would like to remind everyone that today's discussions may contain forward-looking statements that are subject to risk and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the forward-looking statements that appear in our press release and investor presentation provided today. Now I would like to turn the call over to Henry.

Thank you. Success is forged in challenges. Gogoro is embracing our challenges. The strongest companies don't just endure, they adapt, refocus, and transform. At its core, Gogoro is an energy company. We were founded to rethink urban energy and inspire the world to move more sustainably. Over the last 3 years, we have improved and extend our customer experience on the Gogoro network by investing nearly $100 million annually in infrastructure. Today, we operate the world's largest infrastructure of its kind and serve nearly 640,000 monthly subscribers. Our goal is clear: to achieve profitability and continued growth. In Q4, we took decisive actions to accelerate profitability, sharpening focus, realigning resources, streamlining operations, and reducing costs. These efforts are showing early signs of success. Our energy business is on track to break even by 2026 and generate free cash flow in 2027. Additionally, we expect that our vehicle business will break even by 2028. We have 3 main business priorities: our energy business, our vehicle business, including partner OEMs, and international expansion. First, we are focusing on our energy business. We ended the fourth quarter with nearly 640,000 accumulated subscribers, up from 587,000 subscriber at the end of the same quarter last year. In Q4 2024, for the first time, revenue from the Gogoro battery swapping business surpassed revenue from vehicle sales. This marks a fundamental milestone for the business, one we expect to continue. Our batteries are built for longevity and second-life applications. First-generation battery in service for 10 years still operate in a good state of health as anticipated and are now being repurposed for second-life opportunities. The demand for both customer-facing and behind-the-meter energy solutions is growing fast in Taiwan and globally. We see a rapidly evolving business with significant potential. And we are expanding our investments to…

Thank you, Henry. I'm pleased to have this opportunity to provide a summary of our fourth quarter and full year 2024 results. Our full year revenue for 2024 was $310.5 million within the previously provided range of $305 million to $315 million. In the fourth quarter, we took accounting charges of over $38 million to simplify and strengthen our business. These impairment and exit costs materially impacted our fourth quarter and full year net loss results on an IFRS basis. However, we managed to deliver adjusted EBITDA of $46.5 million, representing a slight increase from 2023 full year adjusted EBITDA. These proactive steps allowed us to optimize our cost structure and set us up well for the future as a leaner and more efficient organization focused on delivering a clear path to profitability. Our energy business continues to grow, reinforcing the strength of our battery swapping and smart energy solutions. Gogoro empowered by Gogoro Network Partner brands, maintained its market leadership with a 72% market share of electric scooters, even as the overall 2-wheel market contracted slightly. As we closed out 2024, we leveraged this transition period to refine our strategy, sharpen our focus on energy services and ecosystem enablement and continue our international focus. We continue to accumulate new subscribers on our Gogoro network, and that business continues to grow in line with expectations as we accumulate subscribers. We ended the year with nearly 640,000 subscribers, up from 587,000 subscribers at the end of 2023 and had $137.9 million in battery swapping service revenue for the full year 2024, representing an increase of 4.6% over 2023. As we anticipated, the overall market for 2-wheelers in Taiwan in 2024 declined substantially, dropping 13.6% from 871,000 to 753,000 units. Electric 2-wheeler sales remained at 10.5% penetration and Gogoro Smartscooters slightly increased…

Thank you, Henry and Bruce, for the updates. As attendees are formulating their questions, I will ask 2 questions that we have collected. Question number one, can you provide additional color on your expectation of energy business to breakeven in 2026?

Gogoro has always viewed ourselves as an energy company, and we are now even more focused on this part of the business. We have accumulated approximately 640,000 subscribers, have very predictable ARPU and have extremely high retention rate of our subscribers. Based on this information, we can predict with relative accuracy our future battery swapping revenue and provided we control costs in line with our planned budget expenditures. We'll break even on a non-IFRS basis in 2026. We are confident of that outcome.

Thank you, Henry. So question number two, what action plans can you implement to raise your stock price back above $1, so you don't get delisted? And when does the 180-day grace period end?

Thanks, [ Annie ]. Stock price is really a reflection of the market's perspective on our future strategy, our earning potential, our product road map and a number of other factors. So we hope that through this discussion we've had today, we've shed some light on our future plans and primarily to shed some light on our anticipation of accelerating our path to profitability and tightening our cost structure through a number of different actions. So, with that, we trust that the market will have more confidence in our ability to deliver future business results. Our plan is to remain listed on the NASDAQ. The deadline is April 28 to regain compliance, and we're exploring a number of different alternative courses of action to ensure that we do regain compliance. Thank you, Bruce. Operator, please open the line for Q&A session.

Thank you. [Operator Instructions] We will now take our first question from the line of Fawne Jiang from Benchmark Company. Please ask your question, Fawne.

Thank you. Hi, Henry. Hi, Bruce. Thanks for taking my questions. A couple on my side. First, it's very encouraging to hear your game plans in terms of the path to possibilities ahead. I think Henry actually shed a bit more light earlier, but I just want to go a bit deeper with assumption to break even in 2026 on the net income and the free cash flow in 2027 for energy and also on the vehicle side to break even on 2028. What's your, like, growth assumption -- underlying growth assumption to achieve this, I think, in profitability target?

Thanks, Fawne. I'll take a first crack at that. So, we've really shifted our focus in terms of how we think about profitability. We need to take an affordability approach to this. So, we are actually using very conservative growth assumptions with regards to, for example, vehicle sales quantities in Taiwan. For this year, as you can tell from our revenue guidance, with some growth in the energy business, there is limited growth forecasted from a vehicle standpoint. Last year, we sold a little bit under 50,000 units, and this year, our targets are roughly in line with that if you just do the ASP backwards math from our revenue forecast. So, we're confident that we will hit that 2026 energy break even, the 2027 cash flow, and then 2028, the vehicle business should be able to break even as well.

Understood. Just a quick follow-up on that. I understand you guys focused on the cost optimization. It seems like you have very effective plan -- game plan in place. Do you expect -- like, what factors, what kind of need to happen for you to potentially return to growth? Or is that focused for the company down the road?

So, I think there's two side of it. The first side of it is our energy business that provide us constant growth in revenue and also EBITDA. So, you can see we have a very good 2026 in energy business, and also we are looking forward to the free cash flow in 2027. And for vehicle, I think we are now officially into the second cycle of Gogoro product road map. For the first cycle of product road map, we are required to build a vehicle from, like, the very top-tier to the entry level tier because we are fundamentally, Gogoro network is a infrastructure project. But based on the infrastructure, you are required to have more subscribers. And given that our subscriber is at a breakeven point, it provides us another opportunity to revisit our product road map on the vehicle side. So, we have a very well-considered product road map for the next 10 years from now. So, we believe that product road map will help us to achieve the growth while helping us to achieve the breakeven of the vehicle business.

I think the thing I'll add too, Fawne, is, there's two sides of it, right? One is revenue growth and the other is cost control. And obviously, cost control is not our fundamental objective. It's an outcome of focusing on streamlining the business. As you saw, we've taken a number of accounting charges. We're consolidating space. We're writing down some inventory if we don't believe there's future sales opportunities. We're looking at some streamlining of resources within the company. We're looking at streamlining of CapEx within the company. And so, all of these things contribute to setting us up to a cost structure where this year, for example, our fixed cost will be reduced from $120 million last year to $88 million this year. And then across the board, as we mentioned, we expect about $25 million in savings. Whether it's marketing, whether it's facility space, whether it's rental of offices, whether it's our retail channel, we're looking at every single opportunity to get more efficient. And the net results of that is a more optimized cost structure, which leads to an improved and faster path to profitability as well.

Understood, that's very helpful. Just a quick follow-up on the growth side. I think Henry mentioned, you guys see the energy storage as a new source of revenue for you down the road. I just wonder how should we size the market potential and your value proposition there? And on top, of course, you did mention an international expansion is still part of your long-term growth plan. I just wonder how should we think about the revenue potential, growth potential from that part of your business down the road?

Yeah, I think the energy storage is definitely something really big in Taiwan. And we are expected to -- it will be very big in Southeast Asia, especially that the renewable energy is kicking in. And you can see from the policy side of it in Taiwan that we already seen a lots of policies coming out. And our government is pushing hard on the renewable energy. And to adopt that renewable energy trend, there's a huge opportunity for us to provide energy storage service to the SMB, like a factory and household. As a matter of fact, we already have a pilot -- some of the pilot with, like, for example, I mean Taipei and more than 346 intersections has the battery inside of it. So, when the power is breaking…

When there's a brownout.

Yeah, brownout. Our battery really helped -- been very helpful. So we have seen that is something we want to build our second revenue growth on that. The other side of it is people have been talking about like the second life battery usage. And it's really hard for a traditional vehicle maker even with -- when they manufacture the EV, they don't have the data of the battery. They don't know how it was used and how it was being monitored. So I think since Gogoro owns all the assets and we have the technology, we have a very good AI algorithm to monitor the battery and also every single cell in the battery pack. We will definitely capitalize it in our future revenue growth. So we have a strong belief in that. And so as I said in the call, we already finished the hardware validation with Taipower, which is a state-owned electricity company in Taiwan. We already finished the hardware validation last November, and we are now in the sandbox with them. We hopefully -- we will finalize it in next 6 months. And once we have it, we have a certain -- we definitely will have a solid progress on our business planning. For -- since we already have 1.4 million battery pack in the network, and we are expecting to retire some of it from the Gen 1 battery. Gen 1 battery is actually, we already deployed in the -- in our network since 2015. So we can see that is still stay in a very good healthy status, and we want to make the Gen 1 battery to retire and repurpose that in our ESS. And for next coming few years, we will have more batteries to retire, and we are seeing these changes, the needs of ESS is trending upwards. So we definitely will show more revenue progress on that part. For me, I think ESS in 2025 is a kickoff. We have finished our first product life cycle of our vehicle business, and we see we already contain a great progress as an infrastructure company. So the second part of the growth, we definitely will depend on the progress of our ESS business, and we would love to share with you, Fawne and rest of the investor more in the next few earnings calls. So Bruce, do you want to top up?

Yes. So I'll take the second part of the question Fawne about international expansion. There's 3 things we believe are required for success in the international markets. We require policy, we require partners, and we require patience. And so policies are being aligned at different speeds in different markets. Partnerships are being aligned at different speeds in different markets. And then obviously, we have to be patient, and we have to wait for the right time, wait for the right partners, wait for the right policy before we'll be successful. We have been targeting Southeast Asian markets, as you know, for some time. We'll continue to do that. But we are still forecasting that for this year, the bulk of our revenue, 95-plus percent of our revenue will be from the Taiwan market. As soon as there are better updates that we can provide, and we hope that we'll have some of those updates soon, we'll provide them to you directly.

Yes. We are looking forward a good update in the next few weeks. So we'll love to share that more in the next couple of weeks.

Thank you for your questions, Fawne. Now I'll hand back to Annie to check for any questions online.

At this time, I will take a question from online. This is the question. Home energy storage has gotten very popular in recent years. Does Gogoro plan on releasing battery packs to consumers that can buy?

Yes, we have seen a strong growth momentum in Taiwan as well. I think American has more and more home use of that, but I think Taiwan is growing. From our perspective, as an energy company, we have already -- we have been positioned ourselves as a service company. So no matter the first life cycle usage of battery, we are providing as a subscription model. Not sure if we will consider to do like a sell-out type of business model. But definitely, we will provide a service based on that, but we will consider to do a sellout. But we prefer to do -- but our thesis is to remain providing the services.

I have another question online. Are there any plans to license your technology patents to diversify your revenue?

We have PBGN.

There's 2 ways that we make revenue from licensing. One is we sell kits and parts to -- powered by the Gogoro network partners, as Henry just mentioned, the PBGN partners. And so that's effectively a licensing revenue business. We also already have licensing businesses with our software programs in the international markets, where for all batteries swapped, there's a small licensing fee paid back to Gogoro. We would be open to broader licensing programs in foreign countries with people who want to run full enclosed and closed-loop battery swapping networks with people who are interested in taking the battery pack design and deploying it locally in country. We're open to lots of different models. We're open to lots of different partnerships and would encourage anyone who's interested in working with us just to reach out directly and see how we can help. Our fundamental objective is to make urban mobility cleaner, greener and more sustainable. And so if we can help people in a variety of countries achieve that objective and collectively make the world a cleaner, greener place, then we'll be happy to do that.

So at this time, there are no further questions. I'll turn the call over to Henry for some few closing remarks.

If you take one thing from today's call, please know that despite our recent challenges, Gogoro is laser-focused and completely committed to our customer experience and the goal of profitability. So thank you for your support of Gogoro, and thanks for calling into today's call.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.