Capital Markets Day Alfen N.V.

London | May 10, 2023

Disclaimer

This presentation is for information purposes only and does not purport to contain all information that may be required to evaluate Alfen N.V. (Alfen) or its financial position. It is not a recommendation to engage in investment activities and is provided "as is", without representation or warranty of any kind. While all reasonable care has been taken to ensure the accuracy of the content, Alfen does not guarantee its accuracy or completeness and will not be held liable for any loss or damages of any nature ensuing from using, trusting or acting on information provided. No information set out or referred to in this publication may be regarded as creating any right or obligation and Alfen expressly disclaims liability for any errors or omissions.

This presentation contains materials produced by third parties and this content has been created solely by such third parties with no input from Alfen. It is not intended to be, and shall not constitute in any way a binding or legal agreement, or impose any legal obligation on Alfen. All proprietary rights and interest in or connected with this presentation shall vest in Alfen. No part of it may be redistributed or reproduced without the prior written permission of Alfen. This presentation speaks only as of this date.

This presentation does not constitute an offer made to any person in any jurisdiction. This presentation may not be used for, or in connection with, and does not constitute, or form part of, an offer by, or invitation by or on behalf of Alfen or any representative of Alfen to purchase any securities or an offer to sell or issue, or the solicitation to buy securities by any person in any jurisdiction. No action has been or will be taken in any jurisdiction by Alfen that would permit an offering of shares or rights or possession or distribution of a prospectus in any jurisdiction, except to the extent explicitly disclosed by Alfen.

This presentation includes forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the control of Alfen and all of which are based on Alfen's current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as "aim", "annualised", "anticipate", "assume", "believe", "continue", "could", "estimate", "expect", "goal", "hope", "intend", "may", "objective", "plan", "position", "potential", "predict", "project", "risk", "seek", "should", "target", "will" or "would" or the highlights or the negatives thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this publication and include statements that reflect Alfen's intentions, beliefs or current expectations and projections about its future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, targets, strategies and opportunities and the markets in which it operates.

These forward-looking statements and other statements contained in this presentation regarding matters that are not historical facts involve predictions. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing Alfen. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forwardlooking statements. Forward-looking statements in this presentation speak only as of the date of this presentation. Except as required by applicable laws and regulations, Alfen expressly disclaims any obligation or undertaking to update or revise the forward-looking statements contained in this presentation to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based. Financial objectives are internal objectives of Alfen to measure its operational performance and should not be read as indicating that Alfen is targeting such metrics for any particular financial year. The ability of Alfen to achieve these financial objectives is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Alfen and upon assumptions with respect to future business decisions that are subject to change. As a result, the actual results of Alfen may vary from these financial objectives, and those variations may be material.

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 revenues will be realised and the actual revenue for the financial years referred to in this presentation could differ materially. The expected revenues have 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.

Today's speakers

Corporate film - Alfen

1	Group strategy	09:00 – 09:45
2	Q&A	09:45 – 10:15
3	Coffee break	10:15 – 10:30
4	Business line deep-dives + Q&A	10:30 – 12:25
5	Closing remarks	12:25 – 12:30
6	Informal lunch

Alfen at a glance

Alfen is at the heart of the energy transition…

Our vision

to build a connected, smart & sustainable energy system for future generations

Our mission

to boost the energy transition by developing, producing, integrating and connecting highquality energy solutions. Our solutions are innovative, reliable, secure and smart

… with a unique business model of 3 business lines that build on 85+ years of electricity grid expertise

EV charging equipment | Since 2008

In-house developed and produced smart chargers and maintenance offering
Used at destinations at home, business (a.o. retail & workplaces) and public locations
Alfen is a pure B2B player

Smart grid solutions | Since 1937

In-house developed and produced range of substations for grid operators
Microgrids (incl substations) to grid connect private grids for instance at PV farms, EV fast-charging stations, horticulture and industrial companies
Provide service & maintenance on installed substations for private entities

Energy storage systems | Since 2011

In-house developed and produced battery energy storage solutions
Stationary and mobile batteries with integration layer of control software
Provide long-term service & maintenance on installed systems
Applicable for all battery use cases including energy trading, capacity markets, grid frequency control and peak shaving

Business lines have additional upside in integrated solutions

Our integrated solutions are a unique edge, where we combine technical capabilities from multiple business lines

EPV windmill park

Energy storage system
Smart grid solution
Innovative black-start functionality

Shell fast-charging with storage Alfen's new production facility

Peak shaving with energy storage
Grid stability with energy storage
Smart grid solution

Grid connection & power distribution
200+ charge points incl fast-charging
Peak shaving with energy storage

Our value proposition | We bring high-quality and comprehensive grid solutions

We bring 85 years of grid perspective

We solve our customers' toughest problems by helping to set the right technical requirements
We guide strategic dialogue with our customers to advise on the energy transition

We customise our solutions ("Power to Adapt")

We offer a comprehensive solution portfolio
We leverage our unique ability to provide integrated solutions
We use modular building blocks to offer solutions in varying sizes

	------
લીએ D

We develop reliable & innovative solutions

We leverage our technical capabilities to integrate suitable components into reliable solutions
We pursue innovation relentlessly to serve our customers with the forefront of technology

We build long-term customer partnerships

We respect our customers' business model and avoid channel conflicts
We operate EBITDA positive, offering our customers security about our long-term business continuity

Why we are here today

In 2022, we achieved 3 out of 4 IPO objectives

We have proven we can deliver profitable growth.

Alfen set 4 financial objectives at the time of the IPO (2018) to achieve in the mid-term

It's time for new objectives

Today Alfen presents its new medium-term financial objectives to achieve between 2025-2027

Qualitative objectives to achieve/maintain

I Outperform the market in each of our business lines

Adopt SBTi-approved CO² targets

Maintain asset light business model

Remain at technology forefront through innovation

Grow and educate our people

The energy transition is accelerating

Trends | The energy transition is a multi-decade, global trend with 3 fundamental opportunities

Regulation | The energy transition is a priority for the EU, reflected in stimulative policy towards 2030

EU regulatory packages bring clarity to markets on long-term trajectory towards 2030

Fit for 55	Reduce net GHG by 2030 and achieve climate neutrality by 2050
REPowerEU	Achieve 42.5% renewable energy share by 2030
1 EU law	(ICE) car ban in Europe by 2035 (with exception for e-fuels)
AFIR2	Grow EV chargers at the same pace as EVs. Per BEV in a Member State, 1.3 kW power output must be provided by publicly accessible chargers by 2030
EU's Sustainable and Smart Mobility Strategy	Achieve 30M electric passenger cars and vans by 2030 (implies 27% CAGR)
Energy Performance of Buildings Directive	Minimum number of charge points set by national legislation for non-residential buildings with >20 parking spaces
Green Deal Industrial Plan	Four pillars: 1) Predictable and simplified regulatory environment 2) Speed up access to finance 3) Enhance skills 4) Trade and resilient supply chains

Alfen's position in the energy transition

Alfen is perfectly positioned to support these 3 opportunities in the energy transition

Our innovative energy solutions

Business model | We are the only independent player active in all three business lines

Select examples of our suppliers,	Strategic suppliers & partners	Competitors Customers
competitors and customers	• Alfen sources standardised components from multiple manufacturers, selecting the most suitable components • Component suppliers are generally product-focused rather than end-to-end solutions	• Alfen is the only player active in all three business lines • Alfen is independent from supplier base • Alfen has no sales channel conflicts with customers	• Alfen caters to a mix of B2B and B2B2C clients • Customers include utilities, grid operators, resellers, traders, renewables EPC contractors and industrial clients
Smart grids
Energy storage
EV charging
19

We leverage many group synergies from our business lines

	Smart grids	EV charging	Energy storage
Commercial synergies
Strong individual business lines that build technical trust for cross-selling & integrated solutions
Leveraged support functions
Support functions are centralised. Synergies include expertise concentration and cost savings
Deeper R&D expertise
R&D organized by expertise (mechanical/software/civil engineering & power electronics)
Production flexibility
Opportunity to rotate production personnel when required by market circumstances
Combined purchasing power
Higher purchasing power possible due to category management across business lines

Commercial synergy | Our segments buy from multiple business lines

Our solutions come together in integrated solutions, as the energy transition unfolds due to grid constraints

Examples of integrated solutions

1. Charging plaza (EV charging with energy storage on site) 1
1. Microgrid at business location with energy storage on site, transformer substation and grid connection 2
1. Co-location of renewable generation with large scale energy storage 3

Customers appreciate our grid expertise, technical capabilities and flexibility

'Alfen has sound knowledge and is an electrical technical partner.' Specialist in electrical total solutions

'Quality, development and support are good. Alfen knows the Dutch market and it is the best choice in the Netherlands.' German supplier of PV equipment

'There is a great deal of knowledge within the company, so an appropriate technical solution can always be provided.' Developer and EPC of solar PV projects

Smart grid solutions EV charging equipment Energy storage systems

'70 percent of the customers who call in reference to the budget model charger end up leaving with the Alfen solution purely because of the technical capabilities of the product.'

Customer testimonials

Contract manager, large international utility

'It is easy to build a charger that can only communicate with your own platform, that is what many EV chargers do. This keeps the clients tied to that platform. Alfen manufactures charging infrastructure as a service and therefore design and develops its chargers to be able to communicate with any platform that follows the standards. COO, Full&fast

'The on-site service that Alfen offers was a big benefit for us. The wider services around the charger will keep the costs down and lower the total costs of ownership.' Product owner, Nordic EV CPO

'In the Dutch and Belgian markets, Alfen is an established name. We can see that customers find it a stable solution. The quality and reliability of the products that Alfen can provide is very important to us.' Vendor manager, other large international utility

'When we started our company, we did market research and came to the conclusion that Alfen was the most reliable party for us because it could scale with our ambitions. Alfen distinguishes itself by providing high quality products and high production numbers in their manufacturing process that is top of the market.' CEO, Greener

'We work with Alfen because they have a lot of expertise. The know well how to deal with network companies and the requirements of the network operators.'

CEO, SemperPower

'We negotiated with a few manufacturers, but we chose Alfen because of its customisation and flexibility. Alfen offers a good range of products and services. We needed a product for many use cases and Alfen was ready for it.' Development manager, EPV

Alfen has a loyal customer base that has diversified since our IPO in 2018

No customer accounted for more than 10% of revenue in 2022, making Alfen's business model more robust

Setting the stage for future growth

Alfen is exposed to a variety of growing markets across Europe and internationalises at high pace

Alfen has local sales presence in 13 European countries with its solutions installed in 30+ European countries

Heatmap legend

Core market: EVC & ESS & SGS Core market: EVC & ESS Core market: EVC EVC installed base EVC & ESS installed base

Local Alfen employees

Focus remains on Europe, but new country monitoring in place to selectively pursue entry in the medium term

03 Product-market fit

Our go-to-market strategy is scalable, product/market focused, and tuned to the complexity of the solution

Our strong track record of attracting and retaining talent sets us up for continued growth

New production facility – operational in Q1 2024 – sets the next stage for our growth story

Increasing production capacity in Almere (NL) with purchase of additional facility per June 1, 2023

Existing industrial building at Damsluisweg 70, Almere (on same industrial premise as other Alfen buildings)

Significant floor space:

2350 m² production
13000 m² warehouse
1600 m² offices

Lowers warehousing costs at other locations

Environmental permits in place for expanding the production of mobile Energy Storage Systems

Our production facilities, centrally located in Almere (NL), provide ample capacity for further growth

20,000 m² production hall + 4200 m² offices
Expected delivery early 2024

EV Charging | Hefbrugweg 85

5300 m² production hall + 1500 m² offices
~15 flow production lines
Some lines are semi-automated

HQ & Smart grids| Hefbrugweg 28+ Vlotbrugweg 24

3900 m² production hall + 2400 m² offices
Flow production system with 3 lines
SGS facilities in Belgium (~430 m² office space) and Finland (~4750 m² production and office space)

= 100 meters

• 3000 m2 office space (Mac3Park) for several Sales & Marketing functions among others

Energy Storage | Hefbrugweg 6

2350 m² production hall + 1000 m² offices
11000 m² outside area to assemble energy storage systems

Production capacity can breathe with demand through:

Add flexible labour
Additional production lines
More automation
Operational excellence
Additional/second shift

Walk the talk | Sustainability at the core of our business and delivering results

Our solutions have a positive sustainable impact on society

Our vision

a "sustainable energy system"

of revenue aligned 99% with EU Taxonomy

Our mission

"to boost the energy transition"

ESG examples below: more in Annual Report 2022

We run our business with ESG at the forefront

	Decreased CO2 emissions by 28%
	(2019-2022) in scope 1 & 2 despite
E	tripling revenues in this time period

Alfen Academy educates new technical personnel (~60 students enrolled, awarded 150 diplomas since start)

Expanded Supervisory Board with 4th member and will formalise an audit and remuneration/ nomination committee in 2023 G

rating with Sustainalytics (top 12% in Electrical 20.3 Equipment industry globally)

Strategic program in place to implement Corporate Sustainability Reporting Directive (CSRD)

24 material ESG topics determined for Alfen based on double materiality assessment (initial assessment) implement CSRD

E1-1 | Transition plan for climate change mitigation
E1-2 | Policies related to climate change mitigation and adaptation
E1-3 | Actions and resources in relation to climate change policies
E1-4 | Targets related to climate change mitigation and adaptation
E1-5 | Energy consumption and mix
E1-6 | Gross Scopes 1, 2, 3 and Total GHG emissions
E1-7 | GHG removals and GHG mitigation projects financed through carbon credits
E1-8 | Internal carbon pricing
E1-9 | Potential financial effects from physical and transition risks and potential climate-related opportunities

Process pending to set SBTi-approved targets

S1-1 | Policies related to own workforce
S1-2 | Processes for engaging with own workers and workers' representatives about impacts
S1-3 | Processes to remediate negative impacts and channels for own workers to raise concerns
S1-4 | Taking action on impacts on own workforce, and approaches to mitigating risks and pursuing opportunities related to own workforce, and effectiveness of those
S1-5 | Targets related to managing negative impacts, advancing positive impacts, and managing risks and opportunities
S1-6 | Characteristics of the undertaking's employees
S1-7 | Characteristics of non-employee workers in own workforce
S1-8 | Collective bargaining coverage and social dialogue
S1-9 | Diversity indicators
S1-10 | Adequate wages
S1-11 | Social protection
S1-14 | Health and safety indicators
S1-17 | Incidents, complaints, human rights and incidents

Environmental Social Governance

G1-3 | Prevention and detection of corruption or bribery
G1-4 | Confirmed incidents of corruption or bribery

Our next steps to

1. Setting clear sustainability goals and targets 1
1. Developing a plan of action 2
1. Communicating and reporting on sustainability efforts

Applicable as from financial year 2024

Note: Initial assessment is based on current EU Directive – to be implemented in national legislation.

Profitable growth

Market and solution expansion drives our topline growth

Benefit from strong market growth trends for smart grids, charge points and energy storage
Aim to grow market share across geographies
Internationalise across Europe by expanding our local sales presence
Two drivers: establish new B2B partnerships across Europe and grow internationally with existing B2B partners

Market growth Internationalisation Integrated solutions

Leverage our unique position of having 3 energy transition-oriented business lines
As the energy transition progresses, grid congestion increases the need for integrated solutions

Solution portfolio additions

• Expand our portfolio by selectively adding new solutions (e.g. walk-in substation)

Several programs in place to propel steep revenue growth and improve efficiency

Develop category strategies further
Improve integral supplier capacity alignment to secure future supplies
Drive competitive component pricing further
Develop customer-facing IT tools further (portals, applications, etc)
Improve the customer journey
Make service easier and faster through process automation and strategic cooperation with service partners

Supplier Management Customer Experience Operational Excellence IT infrastructure &

Smart Grid Solutions: optimised lay-out of new production facility
EV charging: implementation of manufacturing execution systems (MES)
Focus on master data management

Examples of programs

applications

Build a secured (by design) & scalable IT infrastructure
Build a digital platform for secured, scalable, rapid development and deployment of digital solutions
Further automate business process steps, building interfaces with partners/customers
Fortify information (cyber) security across Alfen's digital ecosystem

Mid-term financial objectives take into account varying growth rates and gross margins per business line

Market volume CAGR for 2022 – 2027 continue to be double digit for our markets¹

Gross margins vary by business line

It's time for new objectives

Today Alfen presents its new medium-term financial objectives to achieve between 2025-2027

Qualitative objectives to achieve/maintain

I Outperform the market in each of our business lines

Adopt SBTi-approved CO² targets

Maintain asset light business model

Remain at technology forefront through innovation

Grow and educate our people

Our objectives are full of ambition given the broader market context

Market context for our revenue objective

In mid-term, our objective is to grow revenues to at least 1 billion EUR by 2025-2027, which is lower than the previous revenue objective of >40% CAGR because:

(1) Market for EV charging is maturing, hence growth rates of >100% are no longer realistic. This is a normal phenomenon in the adoption of new technologies (scurve)
(2) To combine growth with profitability, we shift from market expansion in EV charging throughout Europe towards increasing market shares within existing markets. That is beneficial for profitability, but lowers the revenue growth rate.

Market context for our adjusted EBITDA margin objective

In mid-term, our objective is to maintain our profitability in the range of 15-20%, while:

(1) The business with the lowest gross margin (energy storage systems) is expected to grow the fastest (implying continued operational leverage throughout Alfen)
(2) Listed peers in both EV charging and Energy Storage are performing in the range -/- 60% to +6% EBITDA margin in 2022. Most peers are EBITDA negative

We continue to see leverage in coming years as a trend, but deleverage can also occur in certain quarters

OPEX to revenues (%) shows downward trend from 2019 until 2022, but also quarters with deleverage

Leverage areas and potential for further operational leverage Drivers in coming years (= opportunities for leverage)

Indirect labour costs
E.g. support function personnel

Other OPEX

E.g. marketing spend, IT spend, building costs

Direct labour costs

E.g. production & warehousing personnel

+ + +

Grow volume, especially in EV charging and Energy Storage
Improve productivity, e.g. automation and maturing business processes

Organize for synergies, e.g. central support functions

Capital allocation strategy | FCF to be primarily spent on growing the business further

Free cash flow (FCF): Alfen continues its financial strategy of profitable growth in combination with an asset light business model. We balance growth with generating FCF. When supply chain pressures ease, our business model should result in FCF.

Capital allocation: Alfen will use FCF for growth; no dividend payout expected in the medium-term.

Working capital: At 31 December 2022, working capital amounted to €87.6m (versus €23.8m at 31 December 2021), mainly related to Alfen's successful measures to mitigate supply chain pressures with higher inventory levels. Working capital also increased due to strategic down payments for batteries, inverters, containers and electrical components. Working capital has not increased due to trade receivables & payables.

EV charging: when supply chain normalizes, lower inventory levels expected
Smart Grids Solution: at a representative level
Energy Storage Solutions requires more working capital structurally, but 2022 step-up was relatively large. Going forward, more continuous flow in projects for TheBattery Elements expected.

M&A: Alfen continues its focus on organic growth, given the opportunities in our markets. Alfen does not exclude M&A when synergetic targets are identified, but will not actively pursue a buy-and-build strategy.

1	Group strategy	09:00 – 09:45
2	Q&A	09:45 – 10:15
3	Coffee break	10:15 – 10:30
4	Business line deep-dives + Q&A	10:30 – 12:25
5	Closing remarks	12:25 – 12:30
6	Informal lunch

1	Group strategy	09:00 – 09:45
2	Q&A	09:45 – 10:15
3	Coffee break	10:15 – 10:30
4	Business line deep-dives + Q&A	10:30 – 12:25
5	Closing remarks	12:25 – 12:30
6	Informal lunch

1	Group strategy	09:00 – 09:45
2	Q&A 09:45 –
3	Coffee break 10:15 – 10:30
4	Business line deep-dives + Q&A 10:30 – 12:25
	4.1 EV Charging Equipment + Q&A	10:30 – 11:10
	Smart Grid Solutions + Q&A 4.2	11:10 – 11:40
	4.3 Energy Storage Systems + Q&A	11:40 – 12:10
	Integrated Solutions + Q&A 4.4	12:10 – 12:25
5	Closing remarks	12:25 – 12:30
6	Informal lunch

Key areas of focus in this EV charging section

Independent market research expects strong double digit growth for charge points in Europe until end of this decade

EV charge points added per year to base in Europe in millions¹ Market growth drivers

Decarbonization Goal for individuals and businesses

Approaching cost parity with ICE EV less costly already in several use cases

Increased variety of EVs

Car OEMs set higher ambitions and bring more affordable models to the market

Alfen focuses on destination charging; historically AC destination and per 2023 H2 also DC

49 Source: European EV Charging Infrastructure Masterplan (2022) by McKinsey and ACEA.

Based on known charging behavior for gasoline fueling, destination charging is expected to dominate vs fast charging

Gasoline customers	Share of market	Customer behavior	Analogy for EV charging customers	Implication
Convenience	55%	Turn in to next station when fuel light comes on	Charge car when it is parked at destination (no time wasted) and at next fast-charging station on long-distance trips	Predominantly destination charging
Price	25%	Seek out lowest price station	Search for lowest price per kWh destination charging, as price is substantially higher at fast charger	Favours destination charging
Loyalty program	10%	Focus on earning and redeeming points on fuel	Focus on earning and redeeming points on a charge with partner installers	Can be destination or fast charging
Quality	10%	Seek high quality fuel/additives with strong preference for specific brands	Pay extra/sacrifice time for green electricity	Can be destination or fast charging

Conclusion: Gasoline customer behavior fits best with destination charging. Market outlook: ~98% of chargers will be destination chargers

Home segment is expected to remain dominant, but business and public will likely grow in relative size

Distribution of charge points by location segment in Europe Actual & outlook

Insights

Home segment declines in relative share. Decreasing share of new EV buyers have access to home charging. More EV drivers will live in shared multi-dwelling buildings (>50% of Europe's population currently live in multi-dwelling buildings).
Consequently, business and public segment will grow in relative share. Business will grow in particular, as cars are parked at businesses during the daytime when solar power installations generate most electricity.

Case in point: France has regulation per July 2023 that parking lots with >80 spaces must have >50% of its lots covered in solar canopies by 2028. This incentivises increased adoption of EV charge points to leverage produced electricity.

Source: Promotion of e-mobility through buildings policy – European Commission (2022); BloombergNEF (2022)

Our offering | Alfen EV charging offers state-of-the-art chargers for the home, business and public segment

Important innovation coming soon

DC destination charger with strong commercial & technical fit with existing portfolio

Rationale for solution extension with the destination DC charger

✓ Alfen is a one-stop shop for its B2B partners in destination charging
✓ At locations where EV drivers reside for 0.5 2 hours, a higher power rating than AC provides value to end users and our B2B partners. Examples: supermarkets & shopping malls & visitor parking at offices
✓ DC is an important technology in longer term for vehicle to home/building/grid applications

Current status

✓ Installed chargers with selected customers for technical validation phase before broader market introduction
✓ Available to the market in H2 2023

Developed a 30 kW DC solution that fits well within our portfolio

Smart charging Plug & Charge

Compact housing

Interoperability Easy to install

Reliability

Innovation philosophy | Smart charging is necessary to limit the grid investments needed for EV adoption

Recent innovations

Implemented the ISO 15118 standard end-to-end
Eichrecht-compliant charger
Integration of OCCP 2.0.1
Matured our platform for future feature development
Internationalised Dynamic Load Balancing functionality, e.g. direct communication with smart meter in France
Solar charging

Alfen software | Ensure an interoperable system that is equipped with the latest standards

Hardware Among others a modem, display, printed circuit board

assembly, etc.

Software to make the devices and applications work, e.g.

Our USPs on software

Leading in standard implementation: help shape new standards for smart charging and/or implement fast, e.g. OCPP & ISO15118

Interoperable systems: ensure that our charger can be connected to the broadest variety of external systems in this

Software

EV charging

system

55 1. Country-specific communication protocol. 2. Electric Vehicle. 3. Near Field Communication 4. Energy Management System to monitor, control and optimize electricity consumption. 5. Company-specific with many different back-office management systems available in the market.

Our USPs | Alfen distinguishes itself in the EV charging market with its solution offering and commercial offering

SOLUTION APPROACH

Solutions for full breadth of destination charging
Smart charging: charger as a platform
Reliable: proven track-record since 2008
Innovative: front-runner in new technology
Scalable ecosystem (backward feature compatibility)

COMMERCIAL OFFERING

More than EV charging: the grid perspective
Pan-European presence
Independent player (no channel conflict)
Agility: quickly scaling with market
Business continuity & long-term view

As a pure systems specialist, Alfen has a neutral position in the value chain and can partner with a wide range of players

Electricity generation, storing, managing
Electricity retailing

Energy supply Equipment supply

Develop hardware
Develop software
Production
Sell AC and DC chargers

Distribution

• Sell a broad range of products to a reseller (not the end customer)

Installation &

Preparation of sites
Installation
Service once in operation

Alfen: Remote service & maintenance in-house and on-site through field service partner network

Ownership & operations

Invest in sites
Invest in assets
Source electricity from utilities
Sell to end users at a markup
Monitor charger status
Coordinate maintenance

field services E-mobility services

Charging & other mobility services to end users (app or charge-card bases)
Software back-end (back-office management)

We have 3 distinct chains in our go-to-market approach

municipality.

partner, e.g. installer or

homeowner.

Alfen has a B2B model, but we account for the distinctive customer journey of each of these 3 chains as a

system integrator.

Smart charging has barriers to entry that make rapid price declines unlikely

Three main factors keep the market away from commoditisation in coming years

Fragmented market with country-specific solution requirements

Rapid innovation for smart chargers on multiple fronts in connected ecosystem

3

Dynamic regulatory environment with evolving standards & policies towards smart charging

Europe's regulatory framework points towards smart charging¹

European Union

Alternative Fuels Infrastructure Regulation (AFIR) proposal: new publicly-accessible charging stations need to be digitally connected and capable of smart charging
Renewable Energy Directive III: all private charging infrastructure needs to support smart charging

United Kingdom

• Smart Charge Points Regulations (per 30 June 2022): all EV chargers for home or business must support smart functionality, e.g. connectivity, off-peak charging and phased charging times

Case study | DATS 24 and Alfen work together to elevate the Belgian EV charging infrastructure

Quick intro

Customer	Colruyt Group via
	subsidiary DATS 24
Year	2022
Country	Belgium

Challenge

DATS 24 needs a partner for rolling out its EV charging operations to provide infrastructure across Colruyt Group supermarkets, homes of EV driving staff and office locations
By 2021, DATS 24 had already installed 330 Alfen charge points (type Eve Double Pro-line) at supermarkets across the country, and they tripled this capacity in 2022

Solution

For its supermarkets, DATS 24 chose the Eve Double Pro-line
DATS 24 uses Alfen's advanced and in-house developed Smart Charging Network for charging plazas. Customers can connect up to 100 charge points in a smart and flexible way (easy expansion of plaza possible over time)
Alfen's Smart Charging Network operates as a 'social' charging network, without any hierarchy with so called 'controllers' and 'workers'. This means all charging stations align their charging speed among each other to maximally leverage grid capacity without blackouts
The charging stations remain individually approachable and controllable. This way the customer remains in control over the network

Building on 15 years of innovation in EV charging and strong growth in recent years, substantial market share realised

started in EV charging

500,000+

charge points shipped until 2022

12-14%

Market share in Europe in 2022¹

Key takeaways on EV Charging

1	Group strategy	09:00 – 09:45
2	Q&A	09:45 – 10:15
3	Coffee break	10:15 – 10:30
4	Business line deep-dives + Q&A	10:30 – 12:25
	4.1 EV Charging Equipment + Q&A	10:30 – 11:10
	4.2 Smart Grid Solutions + Q&A	11:10 – 11:40
	4.3 Energy Storage Systems + Q&A	11:40 – 12:10
	4.4 Integrated Solutions + Q&A	12:10 – 12:25
5	Closing remarks	12:25 – 12:30
6	Informal lunch

Key areas of focus in this Smart Grids Solution section

Market outlook & growth drivers Alfen's comprehensive solution portfolio Alfen's strong position in the market 1 2 3

Substation market is a long-term growth market with an expected volume growth of 10-15%

Outlook for installed substations per year Market growth drivers

From 2022 to 2030, we need to add 20,000+ substations to the base (~1000 substations added in 2022)

6000 additional substations needed

25%¹

From 2021 to 2024, we will grow from ~550 to ~600 substations added to the base

In 2022, we installed 8% of the

before 2030

Added fast charging stations in Europe to grow from ~32k in 2022 to ~64k in 2027

Rising electricity demand

Strengthen distribution grid to cope with higher peak loads

Replacement cycle

Need to replace or refurbish aging asset base of substations

Roll-out of wind and solar capacity Renewables need to be grid connected

Capacity constrained grid

Microgrids and grid intelligence needed to cope with local electricity production and bi-directional flows

Dutch government opens route to fund grid operators if needed

In November 2022, the Dutch government shared a framework agreement with the parliament, in which the Dutch state can inject capital into grid operators and become a shareholder
The agreement is under approval with Supervisory Boards, Workers' Councils and the shareholders of the grid operators (provinces and municipalities)
The first application will take place at Stedin. The Dutch government reserved funds for a capital injection of 500M euro into Stedin last September

Dutch grid operator market is concentrated; Alfen has significant share in framework agreements

Grid operator market is concentrated

Distribution System Operators (DSO) are publicly owned by municipalities and provinces.

Alfen has framework agreements with each large grid operator

Core operators: Three DSOs represent 95% of market	Awarded	Duration Initial period + option for extension	Alfen share
1 Liander 2 Enexis	2022	4 years + 4 x 1 year	60%
3 Stedin 4 Rendo 5 Coteq 6 Westland Infra	2020	4 years + 2 x 2 years	100%
	Award pending	4 years + 2 x 2 years	50%

Electrification is driving growth in all market segments

Grid operators

Continue to strengthen and renew the distribution grid to manage increased load from more EVs, heat pumps and electric production in businesses
Roll-out increases gradually: paced by transmission grid upgrades, funding, supply chain and technical personnel availability

Renewables

Solar project developers have significant rollout pipeline in coming years
Trend: Grid congestion leads to SGS+ESS integrated solutions opportunities

Fast charging operators

• Strong growth: first rest areas at highway; now also DIY stores and supermarkets

Industry & installers

Customer demand is growing, driven by solar panel installations, charging plaza introductions and changes to all-electric energy systems
Trend: integrated projects with energy balancing and neutral behind the meter

Horticulture / greenhouses

Dutch government aims to accelerate sustainable horticulture
Sustainability through heat pumps, geothermal heat and floating solar on water basins

Private networks

Electrification is driving growth in the need for substations

Drivers of electrification

1. Electrification of transport, e.g. EVs 1
1. Electrification of heating, e.g. heatpumps 2
1. Electrification of industrial processes 3
1. Decentralised renewables 4
1. Technological advancement, e.g. data centers and servers 5
1. Population growth, e.g. new houses 6
1. Economic growth, e.g. new factories 7

Alfen has a comprehensive solution portfolio

for the smart grids

market

Substations

that can be tailored towards customer requirements. Product lines: Compact (Diabolo, Pacto, Peperbus), Walk-in (Altro series) and In-building (Entrado) secondary transformer substation.

Microgrid projects

solutions for medium and high voltage grids in the private domain, including engineering and installation services for sub-stations, grid connections and infield cabling.

Switchgear

solutions for LV and MV, e.g. Sicuro generators switches and connection boxes.

Grid automation

Alfen Connect is a device that allows remote monitoring and control of substations. It provides real-time management functionality such as data visualisation, alarms and fire detection.

Service & maintenance

pro-active and reactive, for substations. Partly done remotely when Alfen Connect is installed. Multiple year contracts with yearly check-up and on-call service included.

Our wide variety of substations and special products & services enables serving specific customer needs

Special Products and Services

We perform all activities in the value chain, except operating the substation

Engineer

• Engineer standardised & customised stations and microgrid solutions

Manufacture & assemble Commission Operate Service

Source components such as transformers and MV switchgear, and manufacture LV switchgear inhouse
Source prefabricated concrete housing, made according to Alfen design
Assemble components in substations

Install

Build in-field concrete foundation and subsequently install substation
Connect in-field cables to the station
Possibly install inter-station cable infrastructure and establish grid connection

• Commission and start-up substation or entire microgrid

• Operate the assets (out of scope)

• Perform recurring visual inspections and potentially execute maintenance scope

Alfen's core markets are the Netherlands, Belgium, Finland and Sweden

Core markets

Served from production facility in the Netherlands

Served from production facility in Finland (Alfen Elkamo)

Further internationalisation opportunity in smart grids is limited

Differences country by country in the grid code and therefore in substation requirements
High transport costs for shipment from production facility in the Netherlands or Finland due to weight and sizing of substation. Therefore, difficult to compete with local manufacturers
Our internationalisation strategy for smart grid solutions: selectively follow customer to other markets in Private Networks segment