Zeo Energy Corporation · NASDAQ:ZEO
Zeo Energy — ESGEN Acquisition — SPAC Merger (April 2023)
42 slides from Zeo Energy's SPAC merger presentation, Apr 20, 2023
Slide 1: Investor Presentation April 2023
Investor Presentation April 2023 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer This confidential presentation (this “Presentation”) is being delivered to you by ESGEN Acquisition Corp. (“SPAC” or “ESGEN”) in connection with its potential business combination (the “Transaction” or “Business Combination”) with Sunergy Renewables, LLC (“Sunergy” and the combined compan
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Industry, Market Data and Partnerships: In this Presentation, SPAC and Sunergy rely on and refer to certain information and statistics regarding the markets and industries in which Sunergy competes. Such information and statistics are based on management’s estimates and/or obtain
Slide 4: Disclaimer (cont'd): Non-GAAP Financial Measures
Disclaimer (cont’d) Non-GAAP Financial Measures: This Presentation includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”), including, but not limited to, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBIT
Slide 5: Sunergy Highlights and Summary of Proposed Transaction
` Current Employees ~500(1) 2022 Gross Revenue and EBITDA ~$123 million ~$11 million 2022 Installs ~2,300+ 2022 Annual Revenue Growth Rate ~120% kW Installed to Date ~70,000+(2) Profitable Integrated Residential Solar Platform Reflects 350 inside sales contractors Reflects management’s estimate base
Slide 6: ESGEN Acquisition Corp Overview
ESGEN Acquisition Corp Overview The ESGEN team consists of dedicated management with operational, transactional and investment expertise across the broad energy and infrastructure value chain aligned to be strong partners to create long-term shareholder value Successful IPO in a Challenging Environm
Slide 7: Experienced Investors and Board
Experienced Investors and Board As of December 31, 2022 These figures are cumulative with respect to Energy Spectrum Partners LP through ESP VIII, fully realized on a gross basis and do not represent the performance of any individual fund managed by Energy Spectrum For additional information, please
Slide 8: Transaction Overview
Transaction Overview Warrants and interest earned in the trust account are excluded. No cash and no debt on balance sheet prior to transaction. 49.5 pro forma shares outstanding at $10.00 per common share. Assumes $10M of the illustrative $29M cash in trust (~65% redemptions). All warrants have a st
Slide 9: Agenda
Agenda ESGEN Investment Thesis I. Sunergy Highlights II. Growth Summary III. Benchmarking & Valuation IV. Appendix V.
Slide 10: ESGEN Investment Thesis
ESGEN Investment Thesis
Slide 11: Market Trends Are Favorable To Sunergy
Market Trends Are Favorable To Sunergy Residential Solar Supports Growing Demand for Resilience Regulatory Environment is Favorable Utility Price Inflation is a Material Tailwind to Solar Adoption Inflation Reduction Act Provides Substantial Tailwinds Favorable Economics are Driving Accelerating PV
Slide 12: Favorable Economics are Driving Accelerating PV Solar Adoption
Favorable Economics are Driving Accelerating PV Solar Adoption Source: EIA Photovoltaic Module Shipments Report as of March 2023 Source: EIA Energy Outlook as of March 2023 U.S. Generation by Source(2) Average Cost of PV Modules(1) The EIA expects the pace of solar generation capacity additions to s
Slide 13: Utility Price Inflation is a Material Tailwind to Solar Adoption
Utility Price Inflation is a Material Tailwind to Solar Adoption Source: BloomberNEF as of March 24, 2023 Source: Total company functional spending of U.S. Investor-Owned Electric Companies. Edison Electric Institute Industry Outlook as of September 2022 Source: U.S. Energy Information Administratio
Slide 14: Residential Solar Supports Growing Demand for Resilience
Residential Solar Supports Growing Demand for Resilience Electricity disturbance is defined as an electrical incident or disturbance that is sufficiently large enough to cross Department of Energy reporting thresholds. Select example events include damage or destruction of a facility, operational fa
Slide 15: Regulatory Environment is Favorable
Regulatory Environment is Favorable Source: SunPower Investor Presentation as of March 2022 Source: National Renewable Energy Laboratory Solar Industry Update as of January 26, 2023 Source: OpenEI.org Rules Regulations Policies Program for the state of Colorado Source: DSIRE and NC Clean Energy Tech
Slide 16: Inflation Reduction Act Provides Substantial Tailwinds
Inflation Reduction Act Provides Substantial Tailwinds Low- to moderate-income households defined as those making less than 150% of their Area Median Income (AMI) Source: Solar.com Solar Learning Center Source: Evergreen Climate Innovations August 2022 Cleantech Roundup as of September 14, 2022 Tax
Slide 17: Consumer Focus on Energy Efficiency Continues to Increase
Consumer Focus on Energy Efficiency Continues to Increase Source: EnergySage, Regional ROIs on Attic Insulation as of March 2023 Selected Energy Efficiency Solutions Energy Efficiency Projects Support Strong ROI(1) Homeowner focus on residential energy efficiency and weatherization has accelerated a
Slide 18: SYAALT
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Slide 19: Sunergy is a Compelling Renewable Energy Platform
Sunergy is a Compelling Renewable Energy Platform Growing Provider of Residential Solar and Energy Efficiency Solutions Substantial and Growing Total Addressable Market Differentiated Sales Approach Unlocks Attractive Margins Vertically Integrated Offering Provides Competitive Strength Deep Relation
Slide 20: Sunergy Management Team
Sunergy Management Team Timothy Bridgewater CEO / CFO 30+ years of commercial and international finance experience B.S. in Finance from Brigham Young University Tony Hruby Chief Operating Officer Founded and managed multiple state-wide businesses President of Southern Crown Homes, a home building co
Slide 21: Sunergy Unlocks a Compelling Customer Value Proposition
Sunergy Unlocks a Compelling Customer Value Proposition Resilience to increasingly frequent blackouts and utility disruptions Ability to monetize excess power generation through NEM exports to grid Effective monthly payments that are typically lower than utility prices Seamless vertically integrated
Slide 22: Well-Positioned Residential Solar Provider in the Southern U.S.
Well-Positioned Residential Solar Provider in the Southern U.S. Strategic Geographical Presence Sunergy is a leading Florida-based provider of integrated rooftop photovoltaic (“PV”) solar, energy storage and energy efficiency solutions to residential customers Sunergy’s sales process drives high vol
Slide 23: Integrated Provider of Distributed Energy Efficiency Solutions
Integrated Provider of Distributed Energy Efficiency Solutions Product Offerings Include Solar Plus Complementary Add-On Offerings Carefully assembled product portfolio unlocks a range of benefits to homeowners, including cost savings, reliability and energy independence Majority of jobs feature one
Slide 24: Differentiated Sales Approach Unlocks Attractive Margins
Differentiated Sales Approach Unlocks Attractive Margins Sunergy’s Sales Process Drives Best-in-Class CAC Multi-tiered sales process maximizes lead generation and conversion efficiencies Senior sales resources focused on high-potential and developed leads to maximize conversion into installs Sales f
Slide 25: Training and Business Model Sets Sales Reps up for Success
Training and Business Model Sets Sales Reps up for Success Multi-tiered sales strategy minimizes CAC and maximizes rep effectiveness Managers leverage data and technology to maintain a hands-on training approach facilitating an effective training, development and career progression The Company conti
Slide 26: Vertically Integrated Offering Provides Competitive Strength
Vertically Integrated Offering Provides Competitive Strength Overview of Sunergy’s Installation Segment Integrated installation division unlocks significant operating advantages including increased speed of project completion and higher conversion ratio of sales to installs Certain tasks are execute
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Slide 28: Organic and Strategic Geographical Expansion Supports Potential Growth
Organic and Strategic Geographical Expansion Supports Potential Growth Source: SEIA / Wood Mackenzie U.S. Solar Market Insight 2022 Year in Review Source: NREL Average Daily Solar Irradiance. Data as of February 2018 South defined as Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina
Slide 29: Benchmarking & Valuation
Benchmarking & Valuation
Slide 30: Key Comparables in the Public Markets
Key Comparables in the Public Markets Source: Capital IQ and public filings as of April 13, 2023 Company reported adjusted EBITDA with additional adjustment to exclude management addback of stock based compensation expense and executive transition costs Sunnova debt pro forma for additional debt com
Slide 31: Sunergy is Attractively Positioned in the Market
Sunergy is Attractively Positioned in the Market 2022 Adjusted EBITDA $11 million nmf $75 million(1) $58 million(1) Adj. EBITDA Margin 13%(2) nmf 13% 3% Exposure to Attractive Regional Markets National National National Vertically Integrated Sales and Install Multiple Sales Partners Large Dealer Net
Slide 32: Residential Solar Valuation Benchmarking - 2022
Residential Solar Valuation Benchmarking - 2022 Source: Capital IQ and public filings as of April 13, 2023. Company reported adjusted EBITDA with additional adjustment to exclude management addback of stock based compensation expense and executive transition costs Sunnova debt pro forma for addition
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Slide 34: Summary Risk Factors
Summary Risk Factors All references to “we,” “us” and “our” and “Sunergy” refer to the business and operations of Sunergy prior to the consummation of the proposed Business Combination or to the business and operations of Newco following the Business Combination, as applicable. The risks listed belo
Slide 35: Summary Risk Factors (Cont'd)
Summary Risk Factors (Cont’d) Risks Related to Sunergy’s Operations We may be unable to sustain our level of profitability in the future. Our growth depends in part on the success of our relationships with third parties, including our equipment suppliers, contractors and dealers, including dealers w
Slide 36: Summary Risk Factors (Cont'd)
Summary Risk Factors (Cont’d) Risks Related to Sunergy’s Operations (Cont’d) Our business is concentrated in certain markets, putting us at risk of region-specific disruptions, including hurricanes or other extreme weather events. Expansion into new sales channels could be costly and time-consuming.
Slide 37: Summary Risk Factors (Cont'd)
Summary Risk Factors (Cont’d) Risks Related to Sunergy’s Operations (Cont’d) A failure to hire and retain a sufficient number of employees and service providers in key functions would constrain our growth and our ability to timely complete customers’ projects and successfully manage customer account
Slide 38: Summary Risk Factors (Cont'd)
Summary Risk Factors (Cont’d) Risks Related to Regulation and Policy Our business currently depends on the availability of utility rebates, tax credits and other benefits, tax exemptions and exclusions, and other financial incentives on the federal, state, and/or local levels. We may be adversely af
Slide 39: Summary Risk Factors (Cont'd)
Summary Risk Factors (Cont’d) Risks Related to ESGEN and the Business Combination An active trading market for the post-Business Combination Class A common stock, $0.0001 par value per share (the “Newco Common Stock”), may not be available on a consistent basis to provide stockholders with adequate
Slide 40: Summary Risk Factors (Cont'd)
Summary Risk Factors (Cont’d) Risk Relating to the Post-Business Combination Company and its Common Stock We will incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to ensure compliance with public company responsibiliti
Slide 41: Reconciliation of Non-GAAP Metrics
Reconciliation of Non-GAAP Metrics Company provided unaudited financials Reconciliation of Net Income to EBITDA and Adjusted EBITDA(1) ($ in millions)
Slide 42: For Investors: Gateway Group
For Investors: Cody Slach and Tom Colton Gateway Group sunergy@gatewayir.com