Operational Update

RNS Number : 9845M

Saietta Group PLC

27 September 2021

 

Monday 27 September 2021

Saietta Group plc

("Saietta" or "the Company")

Operational Update

Saietta Group plc, the UK company that has developed the innovative, patent protected, AFT electric motor designed for high efficiency electric vehicle drivetrains, today announces its first Operational Update since its successful admission to trading on AIM in July 2021.

Saietta has developed its low cost, low maintenance and highly efficient AFT (axial flux electric motor technology) motor to democratise the transition to mass market electrification, making the EV revolution accessible to millions of people around the world and supporting high-growth economies to achieve their carbon reduction targets.

The global automotive manufacturing industry, which consisted of c. 74,000 enterprises and generated over $2 trillion of revenue in 2019, is experiencing substantial change as it transitions from internal combustion engines to electric motors. Further focus on the importance of robust and efficient drivetrains in the EV sector, from mopeds to HGVs, was evidenced in the recent acquisition of Oxford-based YASA Limited by Mercedes-Benz.

Commercial & Product update

Saietta has made considerable progress since the IPO in its core focus lightweight mobility market; commencing the planned expansion of its UK production and testing capabilities; and has opened-up access to a new market segment with significant potential.

As anticipated the financial resources secured through the IPO have enabled the Company to accelerate its interaction with a number of OEMs including the completion of a number of operating motorbike models retro-fitted with Saietta motors which are being shipped to India. Saietta remains dedicated to securing a number of long-term, high volume OEM relationships globally.

In line with its core focus on lightweight mobility, Saietta has been working with Electric Assisted Vehicles Ltd ("EAV") and has entered into an agreement to be the exclusive supplier of in-wheel traction motors to EAV's proposed Lightweight Inner-City Solution ("LINCS") vehicle. EAV has already commenced sales of its existing range of e-cargo bikes to a variety of customers including, but not limited to, DPD, Asda and Ocado as well as having sold a number to a major global automotive OEMs for evaluation, development and testing.  EAV is currently focusing on developing the complementary larger LINCS vehicle with Saietta. The LINCS is a modular lightweight skateboard-style platform intended to be an emissions free alternative to the traditional transit van in urban environments.  Additionally, the LINCS is designed as part of an integrated commercial transportation and delivery network to work with the existing e-cargo bike fleet which is currently being rolled out.  Saietta's management believe that EAV's current commercial traction and existing customer base means that EAV is well positioned to potentially develop into a significant modular vehicle systems supplier over time.  In the event that EAV's customers adopt the LINCS platform then Saietta will derive motor sales revenue from its exclusive supply contract, royalty income and conditional volume-based production scale up project fees, as well as certain other potential revenue streams. 

Saietta's marine division has achieved its target of commencing in-water testing of its first prototype e-outboard motors, in line with the ambitious schedule outlined at the time of the IPO. In addition, the Company has developed an inboard variant suitable for both retrofit and new build applications which has also successfully commenced testing. The Company aims to deliver these complete systems to end customers in 2022 in order to fulfil a pressing, regulatory-driven need for zero pollution marine propulsion in inland waterways. These products will be revealed at the Marine Equipment Trade Show in Amsterdam in November 2021.

As regards global licensing activity, Saietta is continuing discussions with a range of Chinese OEMs with regards to offering a China domestic regional licence for tender during 2021.  Due to an increasing number of potentially interested parties and the expanding IP and product portfolio, the Board believes it is in the Company's best interest to extend the current phase of counterparty evaluation before finalising the process. Additionally, the Company has continued to progress the definitive legal documentation for the establishment of a joint venture with Padmini VNA in order to address the lightweight mobility sector in the Indian market.

In response to significant industry interest, Saietta has commenced operations in the high-performance car market segment. The Company is developing a production ready 800V high performance motor with a target launch in the summer of 2022. This motor will be based on the Saietta AFT 190 topology (which is a derivative in the same vein as the AFT 110 and 140) and will aim to be broadly comparable in performance to YASA's P400 motor. This development effectively opens a completely new market segment for Saietta which was not envisaged at the time of the Company's IPO earlier this year.

R&D

Work has continued to enhance the Company's growing range of AFT motors, further refine the technology for mass production, expand the overall IP portfolio - in particular strengthening patent applications into Asian markets - and to on board additional key talent, including a newly recruited Head of Engineering joining the team in October.

Capital Expenditure Projects

Since admission to AIM the Company has placed key equipment orders and made progress with the commencement of the development of the initial phase of its motor durability test centre, under the direction of a Head of Testing who joined at the start of July.  The initial commercial revenues from testing activity have been secured in September 2021 using a third-party test centre until Saietta's bespoke expanded test centre is operational.

The Company has also initiated the development of both manufacturing equipment and streamlined processes that enable an automated scaling up of production volumes. In addition, a new Head of Production has been recruited and will join the team in November.  The Company aims to achieve its next phase of production scale up using its existing properties as well as using an additional available building at Heyford Park.

Saietta remains on track to ramp up its UK-based production capacity to its target of 100,000 units per annum by 2024 with approximately £2.0m of expenditure commitments having been placed and headcount increasing more than ninety per cent over the past 12 months.

Wicher (Vic) Kist, Chief Executive of Saietta, commented:

"The rapid progress since we revealed our range of AFT motors late last year has been maintained with commercial, product and R&D progress continuing on all fronts.  The high level of industry interest in our AFT technology since IPO has been remarkable, and we are therefore deliberately being cautious and targeted as we select our initial customers and partners.

The recent acquisition by Mercedes-Benz in this area shows how the automotive industry is increasingly focused on the development of robust, efficient and affordable EV drivetrains. This development also opens a new market segment for Saietta, for high performance cars, which was not envisaged at the time of our IPO.

The growing collaboration with EAV on the development of their LINCS platform will help showcase how effective Saietta in-wheel motors can be for lightweight commercial vehicles and we hope could become a significant revenue opportunity in its own right.

We have demonstrated that Saietta can reduce axial flux electric drivetrain cost without diminishing performance, which is essential if EVs are to become more accessible for mass market consumers across a wider range of vehicle platforms from lightweight to commercial."

-ENDS-

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

For any further enquiries, please contact:

Saietta Group Wicher (Vic) Kist, Chief Executive Steven Harrison, Finance Director	via FTI
Canaccord Genuity (Nomad and Broker) Henry Fitzgerald-O'Connor Patrick Dolaghan	0207 523 8000
FTI Consulting (Financial PR advisor) Ben Brewerton James Styles Dhruv Soni	Tel: [phone] [e-mail]

About Saietta:

Saietta is an AIM-quoted, UK electric drive company, that has developed the innovative, and patent protected, axial flux technology (AFT) motor, which can power a wide variety of electric vehicles, ranging from scooters, motorbikes, cars, marine engines, through to larger vehicles. Saietta's initial focus is to enable the mass market electrification of the high-volume motorbike and lightweight vehicle market across Asia. Saietta is democratising the EV revolution with motors capable of delivering high torque density at low voltage, whilst being low-cost, low-maintenance, and highly suitable for mass market production.

 

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