Alfen Nv · EURONEXT:ALFEN
Alfen Nv — Q3 2024 Earnings Presentation
14 slides from Alfen Nv's earnings presentation, Nov 9, 2024
Slide 1: Alfen 2024 Q3 trading update
Alfen 2024 Q3 trading update Webcast 7 November 2024 1
Slide 2: Disclaimer
Disclaimer This communication may include forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms such as guidance, expect
Slide 3: Alfen's highlights of Q3 2024
Alfen’s highlights of Q3 2024 • Q3 2024 revenues of €106.2m, declined 22% versus Q3 2023 (€136.4m) mainly driven by lower Energy Storage Systems revenue, in line with updated guidance. • Gross margin at 32.7% compared with 29.4% in Q3 2023 driven by a positive one-off timing effect in margin recogni
Slide 4: Segmental review | Smart grid solutions
Segmental review | Smart grid solutions Revenues and other income • Q3 revenues were €50.3m (+1% from €49.9m in Q3 2023). In Q3, grid operators (€ million) expanded and reinforced the distribution grid further. +1% • Ramp-up of substation production in Q3 ran according to plan - from 32 substations
Slide 5: Smart Grid Solutions – Strong ramp-up in Q3 supports growth in grid operator segment
Smart Grid Solutions – Strong ramp-up in Q3 supports growth in grid operator segment, while private segment remains flattish Alfen’s ramp-up in substations is on track Annual substation investments Dutch DSOs continues to grow DSO 1 +21% DSO 2 # substations 4,119 Week 40: 3,555 DSO 3 81 2,819 Produc
Slide 6: Segmental review | EV charging equipment
Segmental review | EV charging equipment Revenues and other income • Q3 revenues were €32.9m (-6% from €34.9m in Q3 2023). This decline is due to ongoing (€ million) softness of EV sales and increased competition in the home segment. -6% • In Q3 2024, we continued to see a temporary slowdown to this
Slide 7: EV Charging - despite current market situation the long-term trend is inevitable
EV Charging - despite current market situation the long-term trend towards electric vehicles is inevitable Electric vehicle market is stagnating in first nine ..but the long-term trend is inevitable with months of 2024 (-3% y-o-y).. acceleration expected from 2025 onwards BEV registrations growth in
Slide 8: Segmental review | Energy storage systems
Segmental review | Energy storage systems Revenues and other income • Q3 revenues were €23.1m (-55% from €51.5m in Q3 2023) due to a backloaded 2023 in (€ million) terms of revenue and postponed deal closure in H1 2024 -55% • Alfen’s revenue outlook for 2024 is fully supported by backlog. 51.5 • Alf
Slide 9: Energy Storage Systems – sharp decline in battery system prices main driver for demand
Energy Storage Systems – sharp decline in battery system prices main driver for storage demand moving forward Energy storage backlog Market commentary in € Millions 84 Market dynamics leading to temporary over-supply in 2024 72 Manufacturers increased capacity faster than market grew Softer Electric
Slide 10: Group financials
Group financials Revenues Y-o-y revenue growth Q3 2024 revenues of €106.2m, declined 22% versus Q3 (€ million) (%) 2023 (€136.4m) mainly driven by lower Energy Storage 144,2 16% Systems revenue, in line with updated guidance. 136,4 128,9 11% 116,8 106,2 3% 3% Gross margin at 32.7% compared with 29.4
Slide 11: Alfen reached an agreement with the bank on a new financing arrangement
Alfen reached an agreement with the bank on a new financing arrangement Alfen reached an agreement with the bank on a new financing arrangement, continuing the current facility (revolving credit facility of €100m) with some adjustments in the calculation of the covenants. • The 2024 one-off items ha
Slide 12: Update on strategy validation and organizational right-sizing
Update on strategy validation and organizational right- sizing (see October 15 publication) 1 As communicated on October 15, we are in the final stages of our strategy validation and organizational right-sizing efforts. 2 To reduce overall costs, we have taken a diverse set of measures across all pa
Slide 13: Outlook for Q4 and 2025
Outlook for Q4 and 2025 • For 2024, Alfen projects 2024 full-year revenue to reach the low end of its updated outlook (€485-520m) driven by increased EV market softness. • Alfen reconfirms its adjusted EBITDA margin outlook (mid-single digit) and FCF outlook (negative FCF but improvement compared to
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