Alfen N.V.: Alfen delivers record-quarter in revenues and improves EBITDA compared to Q2 2023

Highlights:

• Q3 2023 revenues amounted to €136.4m, a growth of 11% versus Q3 2022 (€123.2m).
• Gross margin at 29.4% compared with 34.8% in Q3 2022 and 28.8% in Q2 2023.
• Adjusted EBITDA of €17.3m (12.7% of revenues) compared with €24.5m in Q3 2022 (19.9% of revenues) and €8.4m in Q2 2023 (7.6% of revenues). Strong improvement relative to Q2 2023 reflects operational leverage in Smart Grid Solutions and Energy Storage Systems.
• Alfen reiterates its 2023 full-year revenue outlook of €490-520m.
• CFO Jeroen van Rossen has decided to step down after AGM 2024 in April after more than eight years at Alfen. His successor will be Boudewijn Tans.

ALMERE, THE NETHERLANDS - Alfen N.V. (AEX: ALFEN), specialist in energy solutions for the future, today publishes its trading update for the third quarter of 2023.

Marco Roeleveld, CEO of Alfen, said:

"The third quarter of 2023 has been a record revenue quarter for Alfen. This was driven by ongoing strong growth at Energy Storage Systems and Smart Grid Solutions. This has led to operational leverage advantages which positively impact our EBITDA in the quarter. As earlier announced, EV charging has seen a decline in revenue compared to the same period last year, due to the ongoing destocking. The revenues however were slightly higher than in Q2 of this year and our view on the market is that destocking is at its end. Almost all customers have moved through their inventory and we have seen new orders again from our customers.

The breakthrough year for Energy Storage Systems unfolds further. We triple our revenues in Q3 relative to the same period last year. We continue our trajectory to gain significant market share in Europe in 2023. For Q4, we expect a revenue level in line with Q3. The prospect for 2024 is also positive, as we steadily build lead pipeline & backlog for 2024 with new order wins. In 2024, we expect to grow this business line with at least 40% relative to 2023. Please do note that revenue for Energy Storage is highly susceptible to project execution and the timing of component allocation.

Smart Grid Solutions revenue accelerates to 41% increase in Q3 relative to the same period last year. Both the grid operator and the private networks segment grew fast, but private networks even doubled in revenue, after it was hampered by the supply chain constraints in 2022. We expect Q4 revenues to be in line with Q3 revenues for SGS. In 2024, we expect to grow this business line with approximately 20% relative to 2023. The construction of our new production & warehouse facility is on schedule for completion in Q1 2024.

In EV Charging, the destocking challenge continued in Q3 and revenues were in line with Q2 as we have communicated during our HY results in August. Almost all customers have moved through their inventory. Throughout Q3 we see customers that have started to order again, albeit at lower volume than in 2022 driven by market conditions. We continue to expect sequential increase in revenue for EV charging in the next quarter. For 2024, we expect to grow this business line with 15-20% relative to 2023.

At FY2023, we will provide a full statement of cashflows. As interim update, we would like to share that we generated a free cashflow of €17.3m in Q3 2023. Hence, cashflow is developing in a positive way relative to the end position of H1, as we also anticipated.

Lastly, in terms of our revenue guidance, we reiterate our full-year guidance of €490-520m for 2023."

Press release:
https://alfen.com/de/news/alfen-delivers-record-quarter-revenues-and-improves-ebitda-compared-q2-2023

About Alfen
Netherlands-based Alfen is operating internationally in the heart of the energy transition, as a specialist in energy solutions for the future. With 85+ years history, Alfen has a unique combination of activities. Alfen designs, develops and produces smart grids, energy storage systems, and electric vehicle charging equipment and combines these in integrated solutions to address the electricity challenges of its clients. Alfen has a market leading position in the Netherlands and experiences fast international growth benefitting from its first mover advantage. For further information see Alfen's website at: www.alfen.com.

For enquiries, please contact:

Investor relations:
Mr. Dico van Dissel, Director IR Alfen, phone [phone], email [e-mail].
Hefbrugweg 28
1332 AP Almere, The Netherlands
Phone: [phone]
[e-mail] / www.alfen.com

Notes to the press release
This is a public announcement by Alfen N.V. pursuant to section 17 of the European Market Abuse Regulation (596/2014). This public announcement does not constitute an offer, or any solicitation of any offer, to buy or subscribe for any securities in Alfen N.V. The reported data in this press release have not been audited.

Forward looking statements
This press release may include forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms such as guidance, expected, step up, announced, continued, incremental, on track, accelerating, ongoing, innovation, drives, growth, optimising, new, to develop, further, strengthening, implementing, well positioned, roll-out, expanding, improvements, promising, to offer, more, to be or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect Alfen's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Alfen's business, results of operations, financial position, liquidity, prospects, growth or strategies. Forward-looking statements reflect the current views of Alfen and assumptions based on information currently available to Alfen. Forward-looking statements speak only as of the date they are made, and Alfen does not assume any obligation to update such statements, except as required by law.

Alfen's revenue outlook estimates are management estimates resulting from Alfen's pursuit of its strategy. Alfen can provide no assurances that the estimated future revenue will be realised and the actual revenue for 2023 could differ materially. The expected revenue has also been determined based on assumptions and estimates that Alfen considered reasonable at the date these were made. These estimates and assumptions are inherently uncertain and reflect management's views which are also based on its historic success of being assigned projects, which may materially differ from the success rates for any future projects. These estimates and assumptions may change as a result of uncertainties related to the economic, financial or competitive environment and as a result of future business decisions of Alfen or its clients, such as cancellations or delays, as well as the occurrence of certain other events.