Dear , 

YASA is a manufacturer of highly differentiated electrical axial flux motors, generators and controllers. The company's patented technologies allow YASA to manufacture a range of standard electric motors and generators with superior performance characteristics. Notably, the motors are smaller and lighter, are easier to manufacture and produce exceptionally high power and torque. YASA’s standard products are typically integrated into customers’ products for low volume applications whilst the company also carries out bespoke design and development work for OEM customers with high volume applications where the volumes can justify the cost of customisation.
YASA currently produces off-the-shelf electric engine products, which are designed for use in various industries. The benefit that they bring is producing very high power and torque densities (10kW/kg and 40Nm/kg respectively) from engines which are light and thin (as little as 55mm axial length). This reduces the size and weight of the powertrain, allowing design flexibility, enhancing fuel economy and reducing the cost of manufacture, all critical characteristics for OEMs and Tier 1 suppliers.

YASA recently invested in the design and manufacture of controller units for its motors. They are optimising the controller unit, targeting a reduction in size and weight of 50% compared to competitor controllers, to maximise the performance of the motor and to retain more of the value chain associated with the motor.

The Market

The existing market for electric motors and generators is substantial – industry consultant forecasts suggest a global market for electric motors of over $100bn today - and there is the potential for it to grow as it shifts to high efficiency products and as hybrid and electric products replace, or augment, fossil fuel powered products.

There is a drive to introduce electric and hybrid power systems in many areas to reduce reliance on fossil fuels, reduce associated pollution and to take advantage of lower operating costs.

The focus on applications in the automotive sector gives it exposure to the largest electric motor sub-market, with a value estimated at $20bn in 2020. There are sizeable opportunities in other land vehicles, in marine markets and in power generation as well in which it is active, with a further $30bn market size.

It is currently working with a select group of companies across a range of potential applications and in various geographies. Many of these are technology leaders in their fields and have positively evaluated YASA’s technology against competitive offerings.

Management

Dr Chris Harris, CEO, has 25 years of experience building and leading high tech companies around the world. He was CEO at Light Blue Optics, a University of Cambridge spin-out, before joining YASA in 2011. Chris has a PhD from Imperial College and a degree in Physics from the University of Oxford.

Peter Ward, Chairman, has a long and distinguished career in the in the international motor industry. He has held senior positions at Vickers plc including COO of the Group and CEO and Chairman of Rolls-Royce and Bentley Motor Cars.

Arthur Connelly, NED, is Director of Operational Systems at Rolls Royce Plc, and former roles included CEO of GKN Driveline Driveshafts.

Stephen Parker, NED, is Chair of the Board of Governors at Coventry University, a NED of the Transport Research Foundation and a senior adviser to FEV Consulting, a leader in Powertrain technology, vehicle technology and advanced propulsion systems with 2600 professional staff and technology centers in Germany, USA, China and India

Dr Tim Woolmer, CTO & Founder, developed the unique YASA motor topology as part of his DPhil at the University of Oxford and is responsible for technical development.

Ajay Lukha, Chief Commercial Officer, has held several executive and consultant roles at early/mid-stage tech companies as well as senior roles at Intel and Kingston Technology. He has a degree in chemical engineering.

Andy Court, Chief Operating Officer, has amassed broad experience in the development and production engineering of electric motors for mass manufacture, spanning roles at Bosch and TRW’s automotive division.

The Investment Case

We continue to be impressed by the commercial and technological progress the company is making. The company’s technology has been heavily tested and appraised by technology leaders in the field and, we believe, stacks up strongly against peer products. As such it has a high chance of achieving commercial success in a market where technical transformation should drive significant growth.  

Evidence grows of a quickening pace of electric car adoption. Tesla’s first mass-market Model 3 car started production in July and this was quickly followed by Volvo’s announcement that the Swedish carmaker, owned by China’s Geely, will cease manufacturing combustion engine-only vehicles altogether by 2019. Thenceforth, every Volvo model will be powered solely by batteries or by a battery/petrol hybrid. These developments are indicative of the technological direction of travel.  We believe YASA is very well placed to exploit the growing commercial opportunities this trend will generate.

This financial promotion is issued by Parkwalk Advisors Limited (Parkwalk), which is authorised and regulated by the Financial Conduct Authority. Investments referred to in this newsletter are not suitable for all investors.  Interested parties are strongly recommended to seek specialist financial and tax advice before investing in any product.  Capital is at risk and investors may not get back the full amount invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change. Past performance is not a reliable indicator of future results, and the value of investments may go down as well as up. Projections and forecasts are also not a reliable indicator of future performance. Investments in small and unquoted companies carry a higher risk than many other forms of investment. Any investment in a Parkwalk product must only be made on the basis of the terms of the full Information Memorandum. Parkwalk is not able to provide advice as to the suitability of investing in any product.