Energy Spa · MIL:ENY
Energy Spa — H1 2023 Earnings Presentation
38 slides from Energy Spa's earnings presentation, Sep 27, 2023
Slide 1: Energy S.p.A. 2023 Half-Year Results
Energy S.p.A. 2023 Half-Year Results September 27th, 2023
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
Slide 3: Today's Speakers
Today’s Speakers Davide Tinazzi Daniele Manfroi Founder & CEO CFO • PhD in Engineering, Master in Project • MBA, Degree in Business and Innovation Management Management, post-graduate Master in Environmental Management • Former Project Manager in the field of nanotechnology • Former Auditor in Quali
Slide 4: Agenda
Agenda 1. Energy at a glance 2. H1 2023 Financial Highlights 3. Strategic achievements and objectives 4. Q&A ANNEX Energy S.p.A. || ENY 4
Slide 5: 1. Energy at a glance
=e www .energysynt.com
Slide 6: A leading Italian energy storage advanced system integrator
A leading Italian energy storage advanced system integrator Energy S.p.A. || ENY 6
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, contributing to the grid stability”. Energ
Slide 8: 10 years of growth and success
10 years of growth and success Established in 2013, Energy is an advanced system integrator of Energy Storage Systems (ESS). Since inception, Energy has grown under the leadership of Mr. Tinazzi to become the reference player in the Italian market for ESS solutions, in partnership with primary globa
Slide 9: A compelling Equity Story
Attractive business based on global megatrend Strategic market positioning Outstanding flexibility in executing and adapting strategic priorities Unique product offering A compelling Solid and committed suppliers’ Equity Story relationship Indisputable management Energy S.p.A. || ENY track record
Slide 10: 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
Slide 11: Outstanding flexibility in executing and adapting strategic priorities
Outstanding flexibility in executing and adapting strategic priorities Energy is vigorously pursuing its development strategy in the energy storage systems market and is ready to swiftly seize opportunities from the recovery of demand in the residential sector's and to promptly meet the product dema
Slide 12: Product offering
Product offering SMALL&LARGE 1. ESS zeroCO2 SMALL zeroCO2 LARGE zeroCO2 SUN CHARGER 2. 12 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
Slide 13: 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
Slide 14: 2. H1 2023 Financial Highlights
2. H1 2023 Financial Highlights
Slide 15: H1 2023 Highlights
Revenues EBITDA 8.5 M 39.3 M -42% vs 14.8 M -26% vs 53.3 M H1 2022 H1 2023 H1 2022 21,8% margin Highlights The external context had a significant impact on the results, in particular the Net Income 5.5 M top-line due to the sudden Net Financial Position 4.6 M -49% vs 10.7 M and unexpected stop to NF
Slide 16: Revenues
Revenues The H1 2023 represented a period of slowdown for the company, compared to the trend that has characterized the last years. The external context impacted the top-line results due to the sudden and unexpected stop to tax credit transfer mechanism imposed by the Italian Government in February.
Slide 17: Revenues breakdown
Revenues breakdown During H1 2023, the company intensified its commercial initiatives on the international markets. The commercial expansion of the Extra Large product continued significantly, confirming its ever-increasing importance in the sales mix. The relative weight of VARs increased to 36%; E
Slide 18: Profitability
Profitability Despite the drop in sales, EBITDA margin is in line with expectations. The EBITDA margin stands at 21.8% as a result of: cost advantage derived from purchases made early (as early as 2022), an ability to maintain a sufficiently light structure and on average stable pricing policy. The
Slide 19: Net Financial Position
Net Financial Position The increased debt was necessary in particular to finance working capital and partly for investments in tangible assets. x Net Debt / EBITDA 1.0x 1.7x 0.3x 0.3x 8.2 4.6 5.5 8.6 4.6 M 18.6 2.9 13.7 Medium-long term Debt 1.2 3.5 Short- term debt Cash and Cash Equivalents NFP H1
Slide 20: Cash Flow Bridge
Cash Flow Bridge The company financed working capital and investments both with operating cash flows generated by management and using bank debt. 0.5 8.0 0.4 -1.8 0.0 -2.0 -1.0 -1.9 1.7 -0.5 EBIT D&A Δ in Δ in Δ in Taxes Δ in Capex Financial Net Cash Flow Debt Equity Others Trade NWC income/(expense
Slide 21: Cash Bridge Analysis
Cash Bridge Analysis Values in €M Energy S.p.A. || ENY 21
Slide 22: 3. Strategic achievements and objectives
3. Strategic achievements and objectives
Slide 23: Strategies and objectives
Supply & Manufacturing Go –to-market zero C02 brand Strategies and objectives Energy S.p.A. || ENY 23
Slide 24: 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
Slide 25: 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
Slide 26: 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
Slide 27: 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
Slide 28: 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
Slide 29: ee www.energysynt.com,
ee www.energysynt.com,
Slide 30: ANNEX
ANNEX
Slide 31: 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
Slide 32: 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
Slide 33: 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
Slide 34: 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
Slide 35: P&L Statement
P&L Statement P&L (EUR M)* 1st H 2023A % 1st H 2022A % Δ% YoY 2022A % REVENUES 39.3 100.0% 53.3 100.0% -26.3% 126.5 100.0% CAPITALIZED EXPENSES 0.5 1.1% - 0.0% - 0.4 0.3% OTHER REVENUES AND INCOME 0.4 1.0% 0.1 0.3% n.m. 0.4 0.3% RAW MATERIALS (27.0) -68.8% (36.1) -67.7% -25.1% (87.1) (68.9%) SERVICE
Slide 36: Balance Sheet
Balance Sheet Balance sheet (EUR M)* 1st H 2023A 2022A Δ% Intangible fixed asset 4.3 4.3 -1.4% Tangible fixed asset 2.9 1.6 82.5% Financial asset 0.2 0.2 44.2% Net Fixed asset 7.4 6.1 22.0% Inventory 78.8 61.3 28.5% Trade receivables 10.4 23.1 -54.8% Trade payables (19.5) (15.6) 24.8% Trade NWC 69.7
Slide 37: Cash Flow
Cash Flow Cash flow (EUR M)* 1st H 2023A 2022A Δ% EBIT 8.0 31.6 -74.6% Income taxes (2.0) (8.4) -76.2% Depreciation and amortization 0.5 0.6 -9.3% Change in trade NWC (1.0) (54.1) n.m. Change in other assets (liabilities). Severance indemnity funds and others 0.4 4.2 -90.6% Operating cash flow 6.0 (
Slide 38: THANK YOU!
THANK YOU! Energy S.p.A. investor@energysynt.com +39 049 2701296 Energy S.p.A. || ENY 38