Slide 1: Alfen FY2024 trading update & strategy update Webcast
Alfen FY2024 trading update & strategy update Webcast 13th of February 2025 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: Agenda
1 2024 highlights 2 2024 business line view 3 2024 financials 4 Strategy update, 2025 outlook & medium-term ambition 3
Slide 4: Alfen's highlights of FY2024
Alfen’s highlights of FY2024 Revenue at lower end of updated guidance as anticipated in Q3 and adjusted EBITDA in line with updated revenue guidance. Revenue amounted to €487.6m in 2024, a 3.3% decline compared to 2023. Adjusted EBITDA margin in 2024 was 5.8% compared to 11.3% in 2023. Results impac
Slide 5: Sustainability Statement according to CSRD mandate
Sustainability | Alfen published its new Sustainability Statement according to CSRD mandate with many new disclosures Highlights 15 material topics identified and reported on E1 Climate change 99.5% 1. GHG emissions 2. Energy mix and consumption of 2024 revenue aligned with EU Taxonomy. S1 Own worke
Slide 6: 2024 business line view
1 2024 highlights 2 2024 business line view 3 2024 financials 4 Strategy update, 2025 outlook & medium-term ambition 6
Slide 7: Segmental view: Smart Grid Solutions
Segmental view | Smart Grid Solutions revenue grew +11.8%, in line with updated revenue guidance of +10% Revenues and other income In € million • Revenue for Smart Grid Solutions (SGS) grew by 11.8% to €210.6m compared to 2023 • Grid operator segment contributed 66% to revenue, 34% came from the pri
Slide 8: Segmental view: EV Charging
Segmental view | EV Charging showed flat revenues (+0.1%) this year, above adjusted guidance of -5% revenue Revenues and other income In € millions +0.1% 153.1 153.3 • Revenue for EV Charging was €153.3m in 2024, a 0.1% growth compared with €153.1 million in 2023 • Alfen produced approximately 146,9
Slide 9: Segmental view: EV charging market position vs peers
Segmental view | Alfen kept stable revenue, market share remained similar in a difficult year across the board for EV charging Revenue movement of EV Charging listed peers in Europe Alfen’s position in the market In € millions 80 • Alfen remains leading among listed peers 70 • When comparing our cha
Slide 10: Segmental view: Energy Storage Systems
Segmental view | Energy Storage Systems showed 24% revenue decline, close to 20% guided revenue decline Revenues and other income In € millions -24.1% 163.0 • Revenue for Energy Storage Systems in 2024 was €123.7m, a 24.1% decline compared with €163.0m in 2023 123.7 • Adjusted gross margin for Energ
Slide 11: Energy storage backlog
Segmental view | Alfen sees growing backlog (in revenue) over past 3 quarters, while battery price decline limits revenue growth Energy storage backlog as of 31 December 2024 Remarks In € millions 100 13.5 I Deals closed in H1 2025, can still contribute to 2025 revenue 84 72 II Pipeline foresees dea
Slide 12: 2024 financials
1 2024 highlights 2 2024 business line view 3 2024 financials 4 Strategy update, 2025 outlook & medium-term ambition 12
Slide 13: Income statement FY2024
Income statement FY2024: €2.9m adjusted net profit after significant one-off adjustments In € ‘000 2024 2023 • Revenue in 2024 amounted to €487.6m, at lower end of our updated revenue guidance of €485-520m. Compared to 2023, revenue in 2024 was 3.3% lower Revenue and other income 487,643 504,477 Sma
Slide 14: Balance sheet impacted by new headquarters and production facilities
Move to new headquarters and new SGS production facilities materially impacted balance sheet • Non-current assets increased by €29.8m due to commissioning of our new facilities and an impairment on capitalized R&D in response to our strategic In € ‘000 31 Dec 31 Dec 2024 2023 focus Non-current asset
Slide 15: Reduced net working capital driven by inventories
We reduced net working capital, primarily driven by movements in inventories Working In € million 31/12/2024 31/12/2023 Capital • Working capital declined from €134.6m in 2023 to €92.0m at the end of Movements 2024 Inventories 101.5 150.8 -49.3 • Reduction primarily driven by inventory management: A
Slide 16: H2 2024 cost saving program reducing costs by €13.1m
We have successfully executed our H2 2024 cost saving program, reducing operational and labour costs by €13.1m Gross impact of H2 2024 cost savings program In € millions Personnel expenses - adjusted External direct labour Other OpEx - adjusted • Expected net impact of savings program is €13.1m, imp
Slide 17: Strategy update, 2025 outlook & medium-term ambition
1 2024 highlights 2 2024 business line view 3 2024 financials 4 Strategy update, 2025 outlook & medium-term ambition 17
Slide 18: 2024 Recap: strategy review and organisational right-sizing
2024 Recap | Alfen conducted a strategy review and organisational right- sizing in direct response to changing market conditions in H1 2024 2024 H1 | Changing market circumstances 2024 Q3 | Strategy review 2024 Q4 | Org right-sizing • Rapidly decreasing battery prices made ESS • Reassessed core comp
Slide 19: Executive summary of our strategic update
Executive summary of our strategic update today Context | Alfen plays a pivotal role in a high growth energy transition •1a Alfen has a unique business model based on 3 business lines: Smart Grid Solutions, EV Charging and Energy Storage Systems. Its competitive advantage is offering convenient E2E
Slide 20: Context: energy transition solution provider with synergetic legs
1a Context | Alfen is set up as an energy transition solution provider, with synergetic legs in smart grids, EV charging and energy storage Our vision: build a connected, smart & sustainable energy system for future generations Our mission: boost the energy transition by developing, producing, integ
Slide 21: Context: synergies as only independent player in SGS, EVC & ESS
1b Context | Alfen benefits from financial, commercial and operational synergies as only independent player active in SGS, EVC & ESS Diverse business portfolio reinforces each other Additional commercial and operational synergies Smart Grid Solutions: Fundament and source of grid expertise Grid expe
Slide 22: Context to market expectations
1c Our expectations deviate from publicly available market data We base our diverging view on: Context to • Strategic conversations with customers market • Order intake run rates expectations • Historic changes in expected growth rates of publicly available market data We can readily scale if market
Slide 23: Context SGS: grid operators volume growth
1c Context SGS | Alfen to profit from volume growth of grid operators, but is cautious due to execution constraints and grid congestion in private domain Planned annual substation additions Alfen commentary Market trends by Dutch DSOs Rising electricity demand DSO 1 DSO 2 DSO 3 Alfen expects ~8% ann
Slide 24: Context EVC: mid- to long-term market growth
1c Context EVC | Alfen expects to profit from mid- to long-term market growth while being less optimistic in the short-term Annual installed charging points in Europe Market trends In # million Rest of Europe +15% EV-market dynamics Alfen focus (NL, BE, DE, FR) Disparity between maturing and growing
Slide 25: Context EVC: cautious for 2025 after EV sales stagnated
1c Context EVC | Alfen remains cautious for 2025 after EV sales stagnated in ‘24 but optimistic on mid- to long-term growth rates BEV registrations growth over 2024 show large differences Alfen cautious with short-term EV growth figures for 2025 In [%] y-o-y compared 2023 Bloomberg forecast ~30% gro
Slide 26: Context ESS: double digit volume growth
1c Context ESS | Alfen remains cautious based on current market dynamics, but still foresees double digit volume growth Annually installed BESS in Europe1 Market trends In GWh +28% 51.8 Decarbonisation targets and policy 43.2 CO2 reduction targets and policy (e.g., capacity +61% 32.1 markets) drive
Slide 27: Context ESS: energy storage system price declines expected to slow
1c Context ESS | Energy storage systems price declines expected to slowdown after experiencing a sharp decline of ~40% during 2024 Historical development of average global energy storage Market commentary system prices • Market researchers do not expect same downward pressure on energy storage syste
Slide 28: Case for change: a more focused strategy
2 Case for change | We believe a more focused strategy allows us to excel on our core strengths, while simultaneously reducing internal complexity MARKET DYNAMICS NEED FOR FOCUS ON CORE STRENGTHS Attractive market growth across business lines Leveraging Alfen's core strengths • Each business line sh
Slide 29: Strategy of focus within each business line
3a Strategy of focus | Alfen will focus within each business line on the market segments aligned with its competitive advantage Smart Grid Solutions | Since 1937 Smart Grid • Design and development of E2E Smart Grid Solutions for the public and private domain Solutions • In-house developed and produ
Slide 30: SGS: Smart Grid Solution portfolio and customer centricity
3a SGS | Alfen's comprehensive Smart Grid Solution portfolio and customer centricity enable serving specific customer needs Alfen's product offering VALUE PROPOSITION Special products Other products and Walk-in stations Non-walk-in stations and services services Proven track record of in-house exper
Slide 31: EVC: chargers for Home, Business and Public segments
3a EVC | Alfen EV Charging provides state-of-the-art chargers for the Home, Business and Public segments Alfen's product offering VALUE PROPOSITION Home segment Business Businesssegment segment Public segment Independent provider of high- quality, reliable, interoperable EV chargers with best-in-cla
Slide 32: ESS: E2E turnkey solutions with performance guarantees
3a ESS | Alfen offers E2E turnkey solutions configured to customer needs with strong performance guarantees Alfen's product offering VALUE PROPOSITION Advisory Elements Connect Availability of latest technologies with modular design and high density • Designing project solutions • Modular design for
Slide 33: Organisational change: future-proof organisation
3b Organisational change | We have made our organisation future-proof to grow profitability in coming years Lever Description Examples • Stop/reduce activities that are not in line with • Stop DC charging segments Doing strategic priorities A • Adjust staff functions to align with reductions Less •
Slide 34: Financial outlook 2025 and medium-term ambition 2026 & 2027
4 Financial outlook 2025 Medium-term ambition 2026 & 2027 With the revised Revenue at €445-505m 5-10% revenue growth y-o-y strategy, we update our Y-o-y improvement in adjusted High single digit adjusted EBITDA ambition for margin EBITDA margin towards low double digits 2025, 2026 and 2027 CAPEX of
Slide 35: More detail: 2025 outlook by business line
4a More detail | 2025 outlook for revenue and adjusted EBITDA broken down by business line Revenue at €445-505m (2024: 488m) High single digit adjusted EBITDA margin (2024: 5.8%) Smart Grid Solutions 5-10% + Higher production efficiency (limited impact of moisture issue) • Growth in grid operator se
Slide 36: More detail: 2026 & 2027 ambition key assumptions
4b More detail | 2026 & 2027 ambition are based on key assumptions on market developments Core assumptions for 5-10% revenue growth y-o-y Core assumptions for y-o-y improvement towards low Note: numbers indicate point estimate, but in reality more uncertainty double digit adjusted EBITDA margin Reve
Slide 37: Phases of growth
5 Phases of growth | Q1 2025 is centred on activating Alfen’s strategy around its core competencies for focused profitable growth from Q2 2025 onwards 2027+ 3 Q2 2025 - 2026 2 Q1 2025 Profitable market expansion 1 • Continue to invest in sustaining Focused profitable growth • Focus on selective, pro
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