Energy Spa · MIL:ENY

Energy Spa — Milano Autumn Investor Conference 2023

39 slides from Energy Spa's conference presentation, Sep 14, 2023

  1. Slide 1: Energy S.p.A.

    Energy S.p.A. September 14th, 2023

  2. Slide 2: Disclaimer

    Disclaimer “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, you a

  3. Slide 3: Today's Speaker

    Today’s Speaker Davide Tinazzi Founder & CEO • PhD in Engineering, Master in Project and Innovation Management • Former Project Manager in the field of nanotechnology • Served as COO in former Mitsubishi Electric Klimat Transportation Systems Energy S.p.A. || ENY 3

  4. Slide 4: Agenda

    Agenda 1. Energy at a glance 2. Financial Highlights 3. Strategic achievements and objectives 4. Q&A ANNEX Energy S.p.A. || ENY 4

  5. Slide 5: 1. Energy at a glance

    1. Energy at a glance

  6. Slide 6: A leading Italian energy storage advanced system integrator

    A leading Italian energy storage advanced system integrator Energy S.p.A. || ENY 6

  7. Slide 7: Our Mission

    Our Mission “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 stability”.

  8. Slide 8: 10 years of growth and success

    10 years of growth and success 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 solutions, in

  9. Slide 9: A compelling Equity Story

    Unique product offering Strategic market positioning Solid and committed suppliers’ relationship Attractive strategy A compelling Equity Story Outstanding financial results Energy S.p.A. || ENY 9

  10. Slide 10: Product offering

    Product offering SMALL&LARGE 1. ESS zeroCO2 SMALL zeroCO2 LARGE zeroCO2 SUN CHARGER 2. 10 Energy sources components from leading international suppliers, combining them with proprietary software and its products, sold under EXTRA LARGE ESS the company’s brand “zeroCO2” zeroCO2 EXTRA LARGE *ESS: Ener

  11. Slide 11: Strategic positioning

    Strategic positioning 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

  12. Slide 12: Value Chain

    Value Chain Engineering & Sales, Marketing Procurement R&D Manufacturing & After Sales Energy’s key role for suppliers: ▪ Energy’s R&D department ▪ Since 2020, Energy developed ▪ Sale to Distributors (generalist & ▪ The ability to integrate oversees the integration its own proprietary inverter, spec

  13. Slide 13: Global ESS Market

    Global ESS Market 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 Capac

  14. Slide 14: 2. Financial Highlights

    2. Financial Highlights

  15. Slide 15: H1 2023 Preliminary Results

    H1 2023 Preliminary Results Initial turnover slow-down is recovering and EBITDA margin is confirmed at 20% margin. Medium term results previews and growth targets included in the strategic plan announced at IPO are confirmed. Recent markets dynamics: ▪ Residential segment suffered a slow down due to

  16. Slide 16: FY 2022 Highlights

    Revenues EBITDA 126.5 M 32.2 M +145% vs 51.5 M +208 % vs 10.4 M FY 2022 FY 2021 FY 2021 Highlights Net Income 22.6 M In 2022 Energy recorded a +207 % vs 7.4 M robust acceleration of FY 2021 revenues (+145%) combine with a strong increase in profitability (+208%) with Backlog higher-than-expected Net

  17. Slide 17: Revenues growth YoY

    Revenues growth YoY Energy has shown an impressive historical growth since its inception in terms of revenues. Revenue Guidance 2022 (120M-140M) has been fully achieved registering a YoY growth of +145%. 145% REVENUES GROWTH 126.5 2019-2022 154% 51.5 62% 54% 20.3 12.5 Energy revenues are expected to

  18. Slide 18: Strong acceleration of revenues

    Strong acceleration of revenues 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 to represent the majority o

  19. Slide 19: Outstanding increase in profitability

    Outstanding increase in profitability Since 2021 the marginality has improved as the Company started to sell its own brand (zeroCO2) products from the end of 2020. The 2022 EBITDA margin’s high-performance reflects the different price increases transfer on sales not totally balanced by increase of r

  20. Slide 20: Net financial position

    Net financial position 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 growth oppor

  21. Slide 21: Cash Bridge Analysis

    Cash Bridge Analysis 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. 27.3* Values in €M 16.2 16.0 2.0 Operating 3.1 Cash Flow Capex Other Cash Δ Short-term

  22. Slide 22: Cash Flow Bridge

    Cash Flow Bridge Values in €M EBIT 31.6 Taxes -8.4 D&A 0.6 4.2 ΔTrade NWC -54.1 27.4 Δ in others 4.2 Operating cash flow -26.1 -8.4 Capex -6.0 Cash available for debt service -32.2 Δ in debt 19.3 Financial income/(expenses) -0.6 19.3 Δ in Equity 27.4 Net Cash Flow 14.0 31.6 0.6 -54.1 14.0 -6.0 -0.6

  23. Slide 23: 3. Strategic achievements and objectives

    3. Strategic achievements and objectives

  24. Slide 24: Strategies and objectives

    Supply & Manufacturing Go –to-market zero C02 brand Strategies and objectives Energy S.p.A. || ENY 24

  25. Slide 25: Supply & Manufacturing

    Supply & Manufacturing Insourcing and industrialise production phases and pursue strategic M&A Transfer in the new Small&Large ESS plant ▪ Pilot Plant Shell for batteries assembly from cells completed (to 9.000 sqm produce 600-800 batteries/day – up to 4 MWh) New space acquisition +11.000 sqm capaci

  26. Slide 26: JV for ESS batteries production

    JV for ESS batteries production Energy has established a joint venture with Pylon Technologies Europe Holding B.V.* to strengthen joint business in the European area through a newly established company “Pylon LiFeEU”, jointly held by both companies, which will produce and sell lithium batteries in E

  27. Slide 27: Strategic acquisition for new opportunities

    Strategic acquisition for new opportunities In July 2023, through the newly established innovative start-up EnergyInCloud S.r.l., Energy completed the acquisition of Cloud Computing S.r.l.’s line of business, a company headquartered in Trento, engaged since 2016 in the development of software with I

  28. Slide 28: Go–to-market

    Go–to-market Further expansion of the distribution model to larger clients and internationalisation. Small&Large ESS ▪ Retain the Italian market share while expanding export Consolidation of sales relationships Italian Market Extra Large ESS Extension of the XL ▪ Burning Man in Nevada (US) – Sept 20

  29. Slide 29: zero CO2 brand

    zero CO2 brand Increasing brand visibility ▪ Small& Large; Stackable systems: product ready, commercial activity Pushing the brand started Rackable batteries 5KWh , suncharger zeroCO2 for electrical vehicles (mono and three- awareness phases) ▪ ZeroCo2 XL ESS: start of series production in the new p

  30. Slide 30: energysynt.com

    fenergysynt.com

  31. Slide 31: ANNEX

    ANNEX

  32. Slide 32: Product offering detailed

    Product offering detailed Energy sources components from leading international suppliers, combining them with proprietary software and its products, sold under the company’s brand “zeroCO2”. SMALL&LARGE ESS EXTRA LARGE ESS zeroCO2 SMALL zeroCO2 LARGE zeroCO2 SUN CHARGER zeroCO2 EXTRA LARGE ▪ Hybrid

  33. Slide 33: Go-to-market

    Go-to-market Energy’s sales network consists of both electrical goods distributors and photovoltaic specialists. Energy also works with large European EPCs. The proximity of Energy's logistics to the headquarters of the main distributors has led the company to have solid partnerships with major mark

  34. Slide 34: Production facilities

    Production facilities 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 sqm Neig

  35. Slide 35: Shareholding and governance

    Shareholding and governance 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 capital A. Granuzzo: Ch

  36. Slide 36: P&L Statement

    P&L Statement 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%) (87.1)

  37. Slide 37: Balance Sheet

    Balance Sheet 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) (1.4) (1.7) (15.

  38. Slide 38: Cash Flow

    Cash Flow 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 Opera

  39. Slide 39: THANK YOU!

    THANK YOU! Energy S.p.A. investor@energysynt.com +39 049 2701296 Energy S.p.A. || ENY 39

Energy — Milano Autumn Investor Conference 2023 on 6ix