Alfen Nv

Hello and welcome to the Elfin Half Year 2021 results call. My name is Rosie and I'll be your coordinator for today's event. Please note this call is being recorded and for the duration your lines will be on listen only. However, you will have the opportunity to ask questions at the end. This can be done by pressing star 1 on your telephone keypad to register your question at any time. If you require assistance, please press star zero and you'll be connected to an operator. I will now hand you over to Jeroen van Russen, CFO, to begin today's conference. Thank you.

Thank you, Rosie. Good morning to you all and welcome to this webcast regarding the first half year 2021 results of Alphen. We are pleased that Michelle Lesch, our new CCO who started as per the 1st of July, is joining us in this webcast. Michelle has a long history in working for GE, and she is an experienced global commercial leader with breadth and expertise regarding the markets in which we operate. Unfortunately, Marco Rudeveld, our CEO, got ill, so he cannot join today. So this webcast and the questions that may come forward are handled by Michelle Lesch, CCO, and myself, Jeroen Verrossen, CFO. It is with pride that we look back on the results in the first half year of 2021. we see again a revenue growth in combination with a strong increase of our profitability. And in the long term, we continue to see positive market developments for all of our business lines. With respect to COVID, we continue to be vigilant about new variants that may arise, and therefore we continue to enforce strict safety measures. Furthermore, COVID has an impact on the worldwide supply chain, which we will address later on in this presentation. We will skip the disclaimer, and continue with slide number three with the key highlights of the first half year of 2021. And let me start with the revenue. The revenues in the first half year of 2021 was 115.3 million euros, which is a growth of 28% compared to the same period last year. This growth is predominantly driven by strong growth of EV charging and energy storage. We also see a strong increase in profitability. Our adjusted EBITDA increased 69% to 16.9 million euros, being 14.7% of revenues, compared with 10 million being 11.1% of revenues in the first half year of 2020. Our adjusted net profit was 9.3 million euros, 77% compared to the same period last year. And as we grow our business, we are also able to further diversify our client base. due to new important projects and client wins. Finally, we reconfirm our 2021 full-year revenue outlook in the range of 225 to 250 million. On the next slide, we will give you some more detail on the revenue developments per business line. If we look at the graphs on the left-hand side of the slide, you can see that there is growth in all of our business lines. But let me start with our smart bridge business line. We are pleased that after a relatively flat growth of this business line in the first quarter of the year, the revenues in the second quarter increased with 15% compared to the same period last year. We see a continuation of expansion and reinforcement of the grid for the energy transition by the grid operators. And additionally, the momentum in the microgrids business has further recovered. We benefited through our existing framework agreements, as well as through new and repeat clients. If we look at EV charging, we see a growth driven by increasing volumes under our existing framework agreements, but also by new client wins and further internationalization. The market continued to grow favorably on the back of the strongly growing EV adoption predominantly in the Western European countries. To enable this growth, we further strengthened our organization, our marketing efforts, and we also added various new EV charging solutions to our broad international portfolio and will keep on doing so. As we are pursuing our internationalization strategy, as a result, we see that more than 60% of our revenues in the first half year of 2021 was generated outside of the Netherlands. Then we go to energy storage, where we see that the momentum continued to develop favorably, which is mostly driven by the growth of renewables and the need to balance the offset between the energy demand and the supply. We benefited from earlier secured contracts and framework agreements, and under these framework agreements, we will be delivering our first two energy storage systems later in this year. With our deep expertise and proven track record, we are well positioned to further benefit from this growing momentum. The revenue growth is also accompanied by an increase in profitability, as we can see on the next slide. The adjusted EBITDA increased from 10 million, being 11.1% in the first half year of 2020, to 16.9 million, being 14.7% in the first half year of 2021. This increase in the adjusted EBITDA is a combination of strong revenue growth, higher growth margins, and the operational average strategy. Going forward, we will continue to pursue our strategy of profitable growth. On the next slide, slide six, you can see that we continue to drive our internationalization strategy. Our international revenue increased from 26.3 million in the first half year of 2020 to 43.3 million in the first half year of 2021, a CAGR of 65% and thus a faster growth than our overall top-line growth. Percentage-wise, as percentage of group revenues, the international revenues increased from 29% in the first half year of 2020 to 38% in the first half year of 2021. And I will now hand over to Michelle to continue with our commercial successes.

Thanks, Arun. I'd like to discuss some of the commercial success we've seen. In the first half of 2021, we saw continued execution of our strategy across all segments, supporting our install-based customers, as well as acquiring new customers across all segments. I'd like to talk through some of the highlights of how each segment is enabling the energy transition. For smart grids, we continue to support renewable growth with our smart grid solutions for solar and wind projects. Specifically, the Amkraft and Power Forza switching stations to support onshore wind projects in Sweden. In EV charging, we formed new relationships with international distributors and businesses, supporting growth across Europe and enabling our internationalization as discussed in a prior slide. First, we have a three-year framework agreement with Mitsui, which further supports our growth in Ireland, and our relationship with ESTG further expands our reach in Europe. In energy storage, we started to see our first projects released from previously signed framework agreements with ENBW and Semper Power. In addition, we were able to secure a contract to supply three energy storage systems to Vital Energy which will be deployed at three different hospital locations in the UK. If we move to the next slide, in addition to the projects previously mentioned, we also wanted to highlight an integrated customer story where we were able to bring our solutions together to support multiple facets of a project. These projects span two of our business units, Smart Grid Solutions and Battery Storage. In this example, we have developed and supplied an energy storage plaza where up to 22 mobile energy systems from Greener can be connected to provide grid stability services. In addition, these mobile stations are integrated with a solar PV park where they can be charged using renewable energy. Allison also provided the microgrid and grid connection for this site. In addition, these are the same mobile storage systems that our customer Greener deploys to their customers. As we move to the next slide, I'd like to talk about some of the continued product development we are pursuing. In smart grids, we have supported our customers in the development of a new and innovative substation that meets the latest standards and requirements in a smaller footprint and also meets sustainability criteria such as recyclability. In EV charging, we added to our solutions for our international portfolio. reinforcing our domestic offering with higher charging speeds and functionality, as well as supporting the latest OCCP and ENCS grid security standards. And in energy storage, we have engineered a new scalable storage solution that allows Alphen to deliver projects for utility scale applications. Across the portfolio, we continue to invest for growth and position ourselves to support our markets and customers. And now I'll hand it back.