Energy Spa · MIL:ENY
Energy Spa — FY2022 Earnings Presentation
33 slides from Energy Spa's earnings presentation, Mar 29, 2023
Slide 1: 2022 Full-Year Results
A leading Italian Energy S.p.A. energy storage advanced 2022 Full-Year Results 29th March 2023 system integrator
Slide 2: Agenda
AGE N DA 1. Company Overview 2. FY 2022 Financial Highlights 3. Strategic achievements and objectives 4. Q&A 5. Annex 2
Slide 3: Agenda
AGE N DA 1. Company Overview 2. FY 2022 Financial Highlights 3. Strategic achievements and objectives 4. Q&A 5. Annex 3
Slide 4: Today's Speakers
TO DA Y’S SP E A KE R S Davide Tinazzi Daniele Manfroi Co-Founder and CEO CFO § PhD in Engineering, Master in Project and § MBA, Degree in Business Management, Innovation Management post-graduate Master § Former Project Manager in Environmental Management in the field of nanotechnology § Former Audi
Slide 5: Energy Mission
E N E R GY MI SSI O N We give every individual, family or business, the tangible opportunity to mitigate climate change and actively contribute to the green energy transition. Everyone can reduce the emissions of CO2 by maximizing the self production of electricity, also contributing to the grid sta
Slide 6: History of Success and Growth
HI STO R Y O F SUC C E SS A N D GR O WTH Established in 2013, Energy S.p.A. («Energy») is an advanced system integrator of Energy Storage Systems (ESS). In ten years since inception, Energy has grown under the leadership of Mr. Tinazzi to become the reference player in the Italian market for ESS sol
Slide 7: Energy: A Compelling Equity Story
E N E R GY: A C O MPE LLI N G E QUI TY STO R Y UNIQUE PRODUCT OFFERING STRATEGIC MARKET POSITIONING SOLID AND COMMITTED SUPPLIERS’ RELATIONSHIP ATTRACTIVE STRATEGY STRONG FINANCIAL AND GROWTH PERFORMANCE BEATING MARKET RATES 7
Slide 8: Product Offering
PR O DUC T O F F E R I N G In The company sources components from leading international suppliers, combining them with proprietary software and its products, sold under the company’s brand Energy’s product range includes a range of inverters, developed, and produced according client’s specifics and
Slide 9: Global ESS Market
GLO B AL E SS MAR KE T Energy storage system market is growing at unprecedented pace and could fundamentally change electricity market dynamics. The United States and China are the two largest markets but also EMEA region plays a key role in this scenario of growth. 357.8 Energy Storage Power 301.1
Slide 10: Positioning
PO SI TI O N I N G Energy has started the process of in-sourcing some strategic production activities of its components, in order to become a full system integrator, controlling a significant part of energy storage systems value chain, by insourcing the manufacturing of ESS’ hardware and software an
Slide 11: Agenda
AGE N DA 1. Company Overview 2. FY 2022 Financial Highlights 3. Strategic achievements and objectives 4. Q&A 5. Annex 11
Slide 12: FY 2022 Highlights
F Y 20 22 HI GHLI GHTS In 2022 Energy recorded a robust acceleration of revenues (+145%) combine with a strong increase in profitability (+208%) with higher-than- expected margins. Revenues Ebitda Net Income 126.5 M 32.2 M 22.6 M +145% vs 51.5 M +208 % vs 10.4 M +207 % vs 7.4 M FY 2021 FY 2021 FY 20
Slide 13: Strong Top Line Growth and Development
STRONG TOP LINE GROWTH AND DEVELOPMENT Energy has shown an impressive historical growth since its inception in terms of revenues. Revenue Guidance 2022 has been fully achieved registering a YoY growth of +145%. Guidance 145% 126.5 M 2023E-2024E REVENUES Guidance 120M-140M 126.5 CAGR 30% 154% 51.5 62
Slide 14: Strong Acceleration of Revenues
STR O N G A C C E LLE R A TI O N O F 2 0 2 2 R E V E N UE S Italy is confirmed to be the primary market covering 84.9% of revenues in 2022. Foreign sales grew substantially in the second half of 2022 as a results of the company’s international expansion strategy. Sales of Small & Large ESS confirmed
Slide 15: Outstanding Increase in Profitability
O UTSTA N DI N G I N C R E A SE I N P R O F I TA B I LI TY EBITDA margin high-performance reflects the different price increases transfer on sales not totally balanced by increase of raw materials cost. The company successfully achieved the EBITDA targets indicated in 2022 guidance (which reported a
Slide 16: Net Financial Position
N ET F IN AN C IAL P O SITIO N Financial debt refers totally to bank debt for 18.6€m (short term) and medium-long-term debt for 5.6€m. The increased borrowing was mainly used to finance working capital. Cash available accounted for 16.0€m. The company partially used the IPO proceeds for finance grow
Slide 17: Cash Bridge Analysis
C ASH B R I DGE AN ALYSI S The cash and cash equivalents available at the end of 2022 accounted for 16.0€mln, including part of IPO proceeds which will be used to continue pursuing the strategic development objectives. 27.4* Values in €M 16.2 16.0 2.0 Operating Cash 3.1 Flow Capex Other Cash IPO End
Slide 18: Cash Flow Bridge
C ASH F LO W B R I DGE Values in €M EBIT 31.6 Taxes -8.4 4.2 D&A 0.6 27.4 ΔTrade NWC -54.1 Δ in others 4.2 -8.4 Operating cash flow -26.1 Capex -6.0 Cash available for debt service -32.2 Δ in debt 19.3 19.3 Financial income/(expenses) -0.6 Δ in Equity 27.4 Net Cash Flow 14.0 31.6 0.6 -54.1 14.0 -6.0
Slide 19: Agenda
AGE N DA 1. Company Overview 2. FY 2022 Financial Highlights 3. Strategic achievements and objectives 4. Q&A 5. Annex 19
Slide 20: Strategy and Objectives
STR A TE G Y A N D O B J E C TI V E S Energy’s strategic objective to become a full system integrator will continue to focus on three elements: Supply/Manufacturing § Insourcing and industrialise production phases to increase added value and consolidate know-how and innovation; § Pursue strategic M&
Slide 21: Strengthening the Supply Chain
STR E N G HTE N I N G THE SUP P LY C HA I N In 2022 the Company further increased the production capacity by the extension of the facilities in a new building, while continuing its investments in human resources. In terms of M&A strategy at the beginning of 2023, Energy signed a joint venture with P
Slide 22: Continuing Pursuing Go-To-Market
C O N TI N UI N G PUR SUI N G GO -TO -MA R KE T Energy is consolidating its position in the Italian market with commercial expansion particularly strong in the residential market segment. The company is also shifting toward larger clients in order to become the first mover in the XL systems segment
Slide 23: Increasing zeroCO2 Brand Visibility
I N C R E ASI N G ZE R O C O 2 B R AN D V I SI B I LI TY Energy is pushing the brand awareness developing a range of inverters, produced according to its specifications by its suppliers, and marketed under its newly established “zeroCO2” brand, § Small& Large; Stackable systems: product ready, comme
Slide 24: Agenda
AGE N DA 1. Company Overview 2. FY 2022 Financial Highlights 3. Strategic achievements 4. Q&A 5. Annex 24
Slide 25: Q&A
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Slide 26: Agenda
AGE N DA 1. Company Overview 2. FY 2022 Financial Highlights 3. Strategic achievements 4. Q&A 5. Annex 26
Slide 27: Shareholding and Governance
SHA R E HO LDI N G A N D G O V E R N A N C E Energy was founded in 2013 by Davide Tinazzi and Andrea Taffurelli, with the financial support of the Ghirlanda family (through their company Euroguarco) and Mrs. Hongwu Sun. % on share Shareholding N. Shares N. PAS Tot. Shares § Board of Directors capita
Slide 28: Production Facilities
PR OD UC TI ON FAC I L I TI ES Energy’s new production and office facilities located near Padua (c. 9,000 sqm) allow to achieve the full-scale production of Extra Large ESS. In H2 2022, Energy acquired an additional production area of 11,000 m sqm close to the existing plant for a total of c. 20,000
Slide 29: P&L Statement
P&L STATE ME N T P&L (EUR M)* 2019A % 2020A % 2021A % 2022A % REVENUES 12.5 100,0% 20.3 100.0% 51.5 100.0% 126.5 100.0% CAPITALIZED EXPENSES 0.3 2.2% 0.4 1.9% 0.0 0.1% 0.4 0.3% OTHER REVENUES AND INCOME 0.3 1.2% 0.2 0.9% 0.2 0.4% 0.4 0.3% RAW MATERIALS (9.9) (79.3%) (16.2) (79.7%) (38.2) (74.2%) (87
Slide 30: Balance Sheet Statement
B ALAN C E SHE E T STATE ME N T Balance sheet (EUR M)* 2019A 2020A 2021A 2022A Intangible fixed asset 0.5 0.7 0.5 4.3 Tangible fixed asset 0.0 0.0 0.0 1.6 Financial asset 0.0 0.0 0.1 0.2 Net Fixed asset 0.5 0.7 0.6 6.1 Inventory 1.8 4.8 6.7 61.3 Trade receivables 0.7 2.8 9.7 23.1 Trade payables (0.5
Slide 31: Cash Flow
C ASH F LO W Cash flow (EUR m)* 2019A 2020A 2021A 2022A EBIT 1.1 1.8 10.1 31.6 Income taxes (0.2) (0.4) (2.6) (8.4) Depreciation and amortization 0.2 0.3 0.3 0.6 Change in trade NWC (0.2) (4.1) (7.1) (54.1) Change in other assets (liabilities). 0.1 0.7 0.3 4.2 Severance indemnity funds and others Op
Slide 32: Disclaimer
DI SC LA I ME R “This presentation and the information contained herein (unless otherwise indicated), are provided by Energy S.p.A. (“Energy”) solely for informational purposes. By attending this presentation or otherwise viewing this presentation, or having access to the corresponding information,
Slide 33: Thanks
THANKS Strictly confidential