Alfen N.V.

Investor Presentation • Oct 29, 2019

Alfen Capital Markets Day

London 29 October 2019

Disclaimer

This communication may include forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. These forwardlooking 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 N.V. (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'srevenue 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 year 2019 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 uncertainand 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.

Agenda

• 09:00 Registration and welcome
• 09:30 Group review
• Strategy recap
• YTD performance and outlook
• 10:30 Coffee break
• 11:00 Business line deep dives
• Smart grid solutions
• EV charging
• Energy storage
• 12:30 Wrap-up
• 12:45 Lunch

Today's presenters

Marco Roeleveld CEO

Jeroen van Rossen CFO

Richard Jongsma CCO

Agenda

• 09:00 Registration and welcome
• 09:30 Group review
• Strategy recap
• YTD performance and outlook
• 10:30 Coffee break
• 11:00 Business line deep dives
• Smart grid solutions
• EV charging
• Energy storage
• 12:30 Wrap-up

12:45 Lunch

Unique integrated business model…

In-house development of all products and systems with a strong innovation team

Open architecture: most suitable components for our products and systems

Technological capabilities to provide optimal solutions for our customers and adapt to rapidly changing markets

…supported by long-term growth trends

European wind and solar PV capacity as % of total generation capacity¹

Increase in renewables Decentralisation of energy Growth of electric vehicles

Market share of EVs in Europe Decentralisation ratio of electricity production ³ in Europe1,2

Our value proposition to the market

Strong technology & open architecture	• Alfen has the technological capabilities to provide optimal solutions for customers and adapt to market developments • Alfen selects the most suitable components for its products and systems
End-to-end solutions	• Seamless integration of products and systems in local customer situations • Proven concepts in each business line
Integrated offering	• Unique ability to provide integrated offering for projects across its three business lines • Strong cross-selling potential across business lines
Software capabilities	• Proprietary software solutions that facilitate customer or country specific configurations of standardised products and systems
Service orientation	• Continuous relationship which extends to servicing on installed base and understanding customers' needs for further solutions • Evidenced by high customer retention rates

Alfen has a unique position as the only independent player active in all three business lines

	Component suppliers	and competitors	Customers
Selected examples of suppliers, competitors and customers	• Alfen sources standardised components from multiplemanufacturers, selecting the most suitable components for its products and systems • Component suppliers are generally product focused rather than providing end-to-end solutions	• Alfen provides in-house developed and produced products and systems as well as integrated solutions, based on: − Standardised components − System design and integration − Software overlay • Alfen is the only player active in all three business lines, is independent from supplier base and has no disadvantages from sales channel conflicts with customers	• Catering 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

Growth strategy remains unchanged

Market growth	Benefitting from strong market growth trends and further grow market share
Internationalisation	Significant internationalisation opportunity, further strengthening position in existing countries and entering new countries
Service & maintenance	Expanding existing service offering and benefitting from increasing installed base
Cross-selling	Increasing cross-selling opportunities between Alfen's three business lines and offering of integrated solutions

Benefitting from fast growing market segments

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Expanding footprint

Alfen international revenues as % of total revenues

Focus on expanding recurring revenuesfrom service

Smart grid solutions

Service & maintenance

• Benefitting from increasing installed base of microgrid projects
• New service propositions for solar PV farms as well as for transformer substations connected to (fast) EV charging hubs

EV charging equipment

• Benefitting from increasing installed base of EV chargers
• International service partners to support customers in Belgium, Finland, France, Germany, Italy, Norway, Portugal, Spain, Sweden and UK

Energy storage systems

• Standardised service offering as part of new storage projects
• Remote service, control and performance monitoring through 'TheBattery Connect'

Increasingly benefitting from cross-sell – some examples

Smart grids EV charging Energy storage

Organisation well prepared to capture growth

HR

Simplified organisational structure FTEs per department

As per 30 September 2019

Several initiatives in place to support steep growth

Examples of programs facilitating steep growth path

Supplier diversification	Supplier improvements	Customer ordering	Service efficiency	Platform upgrades
• Adding additional suppliers for critical parts and components	• Intensified dialogue • Forecasting tools • Tracking and monitoring systems	• Integrated planning tools • Webshop ordering • Interfaces with clients' systems	• Reducing number of service tickets and handling time • Automating service response • Remote service	• Increasing processing capacity • Facilitating upgrades and adding flexibility
		Strong basis for growth

• Solid organization with extensive sales network
• State-of-the-art product portfolio with unique proposition in the market
• Strong basis of clients and partners facilitating further growth

We have a long history of working with a broad range of CSR themes …

… which we will align with the UN Sustainable Development Goals as per 2020

Alignment with UN Sustainable Development Goals (SDGs)

Four strategic objectives

Medium term IPO objectives maintained

Agenda

09:00 Registration and welcome

09:30 Group review

• Strategy recap
• YTD performance and outlook
• 10:30 Coffee break
• 11:00 Business line deep dives
• Smart grid solutions
• EV charging
• Energy storage
• 12:30 Wrap-up

12:45 Lunch

Presence at trade fairs in 2019

Alfen booth

Visibility on resellers' booths

Important wins in 2019

Selected to supply 54 substations for 110 MWp Vlagtwedde solar farm, which will be the largest in the Netherlands

Preferred supplier of secondary substations to 19 Swedish grid companies for 3 years, with 2 optional years

Framework agreement with JoJu Solar in the UK to supply smart chargers to its customers, particularly local authorities in the south of England

Framework agreement with Comfortcharge, group company of Deutsche Telekom

Smart grids EV charging Energy storage

Framework agreement for substations (via Alfen Elkamo) and storage systems. 1st order for 1MW storage system for back-up power and FCR in Finland

12 MW energy storage project connected to Vattenfall's wind- and solar PV project in Haringvliet, the Netherlands

Selected to realise microgrid for 35 MWp Zuyderzon solar park in Almere, the Netherlands

Selected to supply 1,000 chargers to public parking garages in Rotterdam

1 MW stationary energy storage solution providing grid balancing services for Finland's largest solar PV farm

Highlights of 2019

• Strong growth driven by continued grid investments, a strong market environment for projects in the solar PV sector and increasing revenues from service
• Further diversification of customer base
• Start-up of additional production line that enables higher outputs, more flexibility and increased efficiency

• Upgraded 'Alfen Connect' grid automation platform to improve adaptiveness and flexibility to changing market conditions as a result of the energy transition

• Strong growth driven by a growing market for EVs, increasing volumes under framework agreements that have been set-up over the past years, new client wins and further internationalisation

• Further strengthening of international sales force in Norway, Germany and the UK
• Start-up of additional production line that enables higher outputs, more flexibility and increased efficiency
• Various new product introductions (e.g. Eichrecht conformity) and innovations (e.g. active load balancing) preparing the company for further growth

Smart grids EV charging Energy storage

• Further broadening of client base (that includes Engie, Eneco, Fortum, Greenchoice) and repeat orders from e.g. Vattenfall and BMW
• Various product innovations, further positioning Alfen ahead of its competition, amongst which:
• ‒ Second generation mobile storage solution for festivals and events
• ‒ High density stationary storage, accommodating higher power and capacities in similar-sized containers
• Roll-out of support for new storage applications, further strengthening Alfen's position as one of the few players with experience across all major storage applications

2019 H1: well on-track

HY revenues and other income (€ million)

Adjusted EBITDA %

2019 Q3: profitable growth continues(1/2)

YTD revenues and other income

Comments on Q3 performance

• Q3 2019 revenues of €34.3m, a growth of 29% versus Q3 2018 (as compared to organic revenue growth in H1 2019 of 29%)
• Q3 2019 revenues in the Smart grids business line of €26.8m (20% y-oy growth) and in the EV charging business line of €6.6m (117% y-o-y growth). Both business lines benefitting from strong market growth and further strengthening of Alfen's position. Start-up of additional production lines enables higher outputs, more flexibility and increased efficiency
• Q3 2019 revenues in the Energy storage business line of €1.0m (-/-17% y-o-y growth). Energy storage is still behind 2018 (caused by challenging business cases across the nascent market resulting in delayed decision making at Alfen's clients), but gaining momentum and benefitting from recent orders from, amongst others, Vattenfall, Solarigo and Fortum (partly executed in 2020)

2019 Q3: profitable growth continues(2/2)

Adjusted EBITDA

Comments on Q3 performance

• Gross margin in Q3 2019 of 35.1% versus 30.8% in Q3 2018 (36.1% in H1 2019), a result of Alfen's strong market position, leverage from increased scale, a shift towards increasingly complex solutions and favourable product mix effects
• FTEs: 476 at 30 September 2019 versus 457 at 30 June 2019, 410 at 31 December 2018 and 381 at 30 September 2018

Adjusted EBITDA

• Adjusted EBITDA in Q3 of 9.4% of revenues (€3.2m), further up from 7.9% (€4.9m) in the first half-year of 2019. Like-for-like adjusted EBITDA¹ in Q3 of 8.0% of revenues (€2.8m), further up from 6.5% (€4.0m) in the first half-year of 2019

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Outlook

• For the full year of 2019, we reconfirm our revenue outlook of €135m to €145m
• For 2020 and beyond, we anticipate to further benefit from the long-term trends around the energy transition, as well as our strategy of internationalisation, cross-sell and expanding service

Agenda

09:00 Registration and welcome

09:30 Group review

• Strategy recap
• YTD performance and outlook

10:30 Coffee break

• 11:00 Business line deep dives
• Smart grid solutions
• EV charging
• Energy storage
• 12:30 Wrap-up

12:45 Lunch

Agenda

• 09:00 Registration and welcome
• 09:30 Group review
• Strategy recap
• YTD performance and outlook
• 10:30 Coffee break
• 11:00 Business line deep dives
• Smart grid solutions
• EV charging
• Energy storage
• 12:30 Wrap-up

12:45 Lunch

Smart grid solutions' key offering consists of substations and microgrid projects

Microgrids (projects)

Alfen Smart grid solutions revenues have increased with 18% per year between 2015 and 2018

Alfen Smart grid solutions revenues

Comments

• 70% market share in the Netherlands

• Strong positions in Belgium (since 2007) and Finland through the acquisition of Elkamo in 2018 (contribution of €8.4 million in H2 2018 and €8.9 million in H1 2019)
• New country entry in Sweden (in H1 2019)
• Following our customers base internationally (primarily related to solar PV and grid connections for EV charging hubs)

Benefitting from long-term growth drivers resulting from the energy transition

Grid debottlenecking

• Electrification of energy demand (including shift from natural gas to electricity for heating/cooking as announced by the Dutch government)
• Increased peak loads from EVs and renewables
• Changing load distribution and reversal of power flows
• In Finland and Sweden, growth is further driven by the transition from overhead power lines to underground cabling to improve grid reliability

Enabling renewables roll-out

• Large scale roll-out of solar PV and wind farms
• Renewable energy projects require grid connections and local microgrids

Increased grid intelligence

• Changing electricity generation and consumption patterns require increased intelligence on multiple parts of the grid through grid automation

Market growth rates in the range of 10-40% per year

Grid upgrade program Finland²

Dutch solar PV installed capacity³

Automated secondary substations in NL⁴

35

Client base of our Smart grid solutions business line is increasingly diversifying

Schematic revenue split Smart grid solutions

Comments

• 3 April 2018 'wet VET' was adopted by the Dutch government, opening up the market for grid connection services
• Subsequently, grid operators (partially) spun-off their infra leasing daughter companies
• These new spin-offs are also broadening their offering to e.g. EV charging and energy storage, providing further cross-sell opportunities for Alfen
• In addition, Alfen has recently started serving several new clients and expanded its market share with other clients
• Finally, Alfen's growing microgrid projects business (see next slide) and acquisition of Elkamo further diversified its revenue base

Projects: Our microgrid projects business is benefitting from the large-scale roll-out of solar PV

Schematic overview of Alfen's solar PV microgrid projects

	2015	2016	2017	2018	2019 YTD
# of projects	2	2	8	11	13
Maximum project size	6 MWp	6 MWp	3 MWp	45 MWp	110 MWp
Selected clients

• Larger projects
• Broadening (international) client base

^• More (repeat) projects

Case study: Solarcentury

38

Case study: Multi-utility energy company ECW

Case study: Multi-utility energy company ECW

Multiple large-scale greenhouses, which Alfen supported with microgridsin various expansion phases

Geothermal Solar PV Datacenters

Grid connections for one of Europe's largest geothermal projects, transporting heat from 2,500 meters underground to the Greenhouses greenhouses

Grid connection for a 2.6 MWp floating solar PV park for Better Energy Nederland and Entras

Service and maintenance for various installations in the ECW area

Overview facilities Smart grid solutions

Alfen facilities Almere, the Netherlands Smart grid solutions facilities

• Smart grid facilities with c. 3,000 m2 production area (and 1,300 m2 office area), including laboratories and testing facilities
• Offices fully upgraded in 2017. Additional warehousing, prototyping and pre-assembly facilities (800 m2) and parking space added in 2018/2019
• Since 2017: flow production system with two main production lines (one-shift basis)
• September 2019: gradual start-up of third production line to support a further scale-up, increase flexibility and drive further efficiencies
• Substation production volumes (excl. Alfen Elkamo):
• H1 2019: 980 (H1 2018: 700)
• Q3 2019: 639 (Q3 2018: 337)
• In addition, Alfen has Smart grid solutions offices in Belgium (c. 430 m2 office space) and Finland (c. 4,750 m2 production and office space)

Focus on continuous innovation to maintain market leadership position

• Dedicated 800 Volt substation to accommodate for newest solar PV applications
• Upgraded 'Alfen Connect' grid automation platform to improve adaptiveness and flexibility to changing market conditions
• Adjustments to substations to limit EMF (electromagnetic field) emissions and to further improve fire safety
• Upgraded web ordering tool for all major customers

Recent innovations Selected items on innovation roadmap

• Further standardisation based on modular building-blocks to accommodate for a growing and diversifying customer base
• Adjusted lay-out of substations to allow for easy integration of various smart energy devices in the future

Summary of strategic focus

Smart grid solutions

Maintain strong market positions in the Netherlands, Belgium and Finland

Further grow internationally in Sweden and selectively in other countries ('follow-our-customer' approach)

Capture increasing share of service revenues from growing installed base

Continue focus on innovation to maintain technology leadership position

Agenda

09:00 Registration and welcome

09:30 Group review

• Strategy recap
• YTD performance and outlook
• 10:30 Coffee break
• 11:00 Business line deep dives
• Smart grid solutions
• EV charging
• Energy storage
• 12:30 Wrap-up
• 12:45 Lunch

Alfen EV charging offers state-of-the-art chargers for the domestic, semi-public and public market

Eve Single S-line	Eve Single Pro-line	Eve Double Pro-line	Eve Double PG-line	Twin
3.7-7.4 kW 3.7-22 kW		3.7-22 kW	11-22 kW	11-22 kW
	Domestic market Semi-public market (offices, supermarkets, etc …)
			Public market

All products positioned at the technology forefront compared to competition

Alfen EV charging equipment revenues increased with 29% per year between 2015 and 2018 and are accelerating

Alfen EV charging equipment revenues

Comments

• Approx. 30% market share in the Netherlands
• Strong positions with own dedicated EV charging sales force in the Netherlands, Belgium, Germany, UK, France and Norway
• 2017 decline caused by a change in incentive schemes in the Netherlands that significantly reduced the number of EVs sold in 2017. Despite being affected, Alfen outperformed the market and increased its market share

Growth supported by fundamental drivers and supported by various government incentives

Increasing consumer pull

• Both by companies as well as individuals
• Driven by, amongst others:
• ‒ Environmental awareness
• ‒ Mitigate global warming

Increasing supply of EVs

• Increase of affordable EVs with a longer range
• All major OEMS have announced targets for EV roll-out and are expected to shift to electric in the future

Improved TCO

• Improving cost competitiveness as innovation and technologies mature
• OPEX electric vehicles lower than traditional cars, combined with lowering prices, will shift the balance of TCO towards EVs in the next decade

Governmental incentives

• Recent examples include:
• ‒ UK grant for EV charging equipment (OLEV) requiring all home chargers to use innovative 'smart' technology by July 2019, playing into Alfen's favour
• ‒ Dutch climate agreement report estimates 1.8m EV chargers by 2030, implying CAGR of approx. 25%

Market growth rates for EV charge points are around 23%, but varying substantially per country (up to 42%)

For the near future the domestic EV charging market is expected to remain dominant …

EV charge points by end-market

… though it is expected that public charging will constitute the largest market segment in 2030

Home-centered scenario European Union

Energy demand (% of kWh)

Public-centered scenario European Union

Energy demand (% of kWh)

Client base is growing steadily and increasingly diversifying

2015 2016 2017 2018 Top 3 clients 2019 September YTD Others Top 4-10 clients 100% # of clients¹ 39 48 60 75 96

Commercial strategy

• Supporting existing clients in scaling up, broadening their (residential/commercial) end-customer base and expanding internationally

• Continuously adding new clients with the potential to become leading players of the future

Revenue split EV charging equipment

Our geographical footprint covers all relevant markets – continuous evaluation for further expansion

Internationalisation strategy

• Originally set-up in the Netherlands, as the frontrunner in EVs
• Strategy of entering upcoming countries in an early stage (based on a continuous evaluation of countries' potential)
• ‒ Establish partnerships with key EV charging operators
• ‒ Set-up service network
• ‒ If necessary, adjust product portfolio to country-specific norms (e.g. Eichrecht)
• Subsequently, benefit from market growth through established relationships and further expand presence

Case study: Enexis

Case study: Enexis

2019: roll-out of 98 chargers in smart charging network at Enexis HQ parking garage

>20 years relationship for the delivery of secondary substations

2015: Pilot project for grid automation with c. 50 secondary substations

2007: Requested Alfen to develop one of the first EV charging points in Europe to research the potential impact of EVs on the distribution grid

2011: pilot energy storage in a 200 kW microgrid with grid connection

2013: Smart Grid in Balance: Joint pilot project with the objective to avoid grid upgrades as a result of the large-scale roll-out of EVs

Overview facilities EV charging equipment

Alfen facilities Almere, the Netherlands EV charging equipment facilities

• EV charging facilities with c. 1,000 m2 production area (and 900 m2 office area) acquired in 2016 with charge point assembly lines, warehousing and service and replacement components for EV charging equipment
• Since 2018: flow production system with two main production lines for the Eve Single and Eve Double products (one-shift basis) as well as a line for the Twin product line
• September 2019: start-up of additional production line to support a further scale-up, increase flexibility and drive further efficiencies
• Production volumes of EV charge points:
• H1 2019: ~9,600 (H1 2018: ~5,500)
• Q3 2019: ~6,900 (Q3 2018: ~3,000)

Focus on continuous innovation to maintain market leadership position

• Eichrecht compliant chargers for the German market and adjustments for compliance with the French market
• Enhanced active load balancing functionality which optimises the available grid capacity
• Connectivity with home management systems
• Completion of product rationalisation with the introduction of the Eve Single S-line for the domestic market

Recent innovations Selected items on innovation roadmap

• Release of newest communication protocol between charger and EV (Open Charge Point Protocol 2.0)
• Improved connectivity features to support appbased access and configuration
• Upgrade to facilitate direct payment functionality

Summary of strategic focus

EV charging equipment

Maintain and grow strong positions in home markets

Continue expanding internationally

Capture increasing share of service revenues from growing installed base

Continue focus on innovation to maintain technology leadership position

Agenda

09:00 Registration and welcome

09:30 Group review

• Strategy recap
• YTD performance and outlook
• 10:30 Coffee break
• 11:00 Business line deep dives
• Smart grid solutions
• EV charging
• Energy storage
• 12:30 Wrap-up

12:45 Lunch

Our energy storage system 'TheBattery' has two main product lines, supported by connectivity and service

Stationary storage systems Mobile storage systems

Alfen Connect (remote monitoring and control)

Service and maintenance

Focus is on systems ranging from 100 kW to 50 MW where Alfen has a strong competitive advantage

Range of storage applications

Bulk	Transmission system	Distribution system	Commercial / Industrial	Microgrid / Off grid	Community / EV charging hubs	Residential
>50 MW	2 – 50 MW	100 kW – 10 MW	100 kW – 10 MW	100 kW – 10 MW	100 kW – 500 kW	<50 kW

Competitive advantage Alfen

Established development team with extensive experience of inverters, batteries, management software and auxiliary grid solutions

Fully integrated end-to-end storage solution including project management, substations, grid connection, remote monitoring and on-site service

Modular plug & play building blocks, expandable over time to meet future demands and customisation

Independent selection of battery and component suppliers to ensure the optimal solution for each situation

Continuous insights and remote management (Alfen Connect) based on Alfen's extensive experience with EV charging communication

Alfen Energy storage systems revenues have increased rapidly between 2016 and 2018

Alfen Energy storage systems revenues

(€ million)

Comments

• Energy storage development started in 2011 First commercial projects in 2016
• Strong growth in following years, in which Alfen build up a strong reputation as one of the few European players with a proven working battery storage concept in all major storage applications and a supplier for leading European utility companies
• Decline in H1 2019 caused by challenging business cases across the nascent market resulting in delayed decision making at Alfen's clients

2019: three key themes for Alfen

Continuation of commercial successes

Further solidifying technology leadership position

Maintaining frontrunner position with unique experience across all storage applications

• Further broadening of client base (which includes Engie, Eneco, Fortum, Greenchoice) and repeat orders from e.g. Vattenfall, BMW and Greener
• Various product innovations, further positioning Alfen ahead of its competition, amongst which:
• ‒ Second generation mobile storage solution for festivals and events
• ‒ High density stationary storage, accommodating higher power and capacities in similar-sized containers
• Roll-out of support for new storage applications, further strengthening Alfen's position as one of the few players with experience across all major storage applications

Well positioned to benefit from growing market

1

2

3

Market growth is driven by the roll-out of renewables and EVs as well as a drive for a clean alternative for diesel

Increasing penetration of intermittent renewables

• Central (large wind and solar farms) and decentral (rooftop solar and local wind) renewable power generation requires generation smoothing and grid frequency regulation to offset unbalance between supply and demand

Increasing penetration of EVs

• The increasing amount of EVs leads to concentrated peak demand at e.g. central charging hubs, requiring load balancing and/or peak shaving

Clean alternative for off-grid diesel generators

• Clean and silent alternative for diesel at events or in-city construction sites
• Applications in the off-shore and maritime sectors, replacing the use of diesel
• Off-grid applications in rural areas or islands

Strong growth of energy storage capacity in Europe

Storage capacity excluding residential (MW) 866 2,794 1,504 2,479 214 1,280 1,442 712 34 2,920 Italy 148 Rest of Europe 3,478 Iberia 11,246 330 UK France Germany 2019 2022 +48% CAGR 2019-2022 60% 113% 114% 82% 18% 48%

Installed energy storage capacity

Net annual energy storage capacity additions

Storage capacity excluding residential (MW)

387 935 458 348 392 1,270 4 631 1,186 2019 0 160 93 2022 Iberia Italy France UK Germany 1,573 4,291 Rest of Europe +40% CAGR 2019-2022 23% 237% 1598% 62% -9% 34%

Alfen's rapidly expanding project references 0.8 MW

Selected examples

1.1 MW + 250 KW DC charger peakshaving

138 kWh integrated storage

200 kWh community battery

10MWh wind farm

Peakshaving and off-grid in Norway

output energy smoothing

12 MW FCR with hybrid solar/wind farm

2 MW PCR, Trading at Peleman Industries

BMW Korea 0.43 MW Peakshaving

Integrated EV charging hub

9 x 10FT systems for festivals and construction sites

solution EV charging test site

peakshaving and trading

Selfconsumption in Belgium

1 MW storage system in Finland

1.2 MW

2.5 MWh for self-consumption, loadbalancing and FCR

617 kWh first storage system for Dutch cooperative

Five key applications - many business cases are built on a combination of applications

Examples of key applications

Regulating supply and demand on a second-bysecond basis to keep the frequency of the power grid within the required tolerance bounds (as fluctuations in frequency are increasing with the roll-out of renewables)

Adding storage to increase selfconsumption of end-user solar PV, reduce reliance on the grid and optimising tariff structures for selling and buying energy

Facilitating peak demand from e.g. simultaneous high power EV charging, avoiding costs and leadtime for upgrading the power grid

Arbitraging between electricity prices at different times, which can often be combined with other applications by value stacking

Enabling power supply to remote areas (rural, island, etc.) or providing a clean and silent alternative for diesel generators at temporary locations (events, construction sites, etc.)

Alfen has unique experience across all major storage applications

Case study: Greenchoice

Case study: Greenchoice

Key features USPs Alfen

• Energy storage system of 10 MW (10 MWh) in 6 containerisedbattery energy storage units with preintegrated batteries, power conversion, acclimatisation, and a transformer compartment
• Connected to Greenchoice'sHartel windfarm in the harbor of Rotterdam, consisting of 8 wind turbines, delivering on average 68 GWh of energy

• Storage system deployed to smooth the fluctuating energy output of the wind farm and to ensure stability of the power grid as the amount of renewable energy further grows

• Plug & play solution based on pre-assembled building blocks that are fully produced and tested at Alfen's production facilities and minimise the time required onsite at the customer

• Modular concept that allows for future expansions, transportation of the system to another location or adaptions to new future business cases
• Software modules that seamlessly integrate with clients' systems
• Grid integration experience, enabling an end-to-end solution
• Preparedness for the future with scalable system set-up and sizable production facilities

Case study: Greener

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Case study: Greener

Addressing emerging market needs around clean mobile energy supply with new innovation in the market, combining various Alfen's expertises in a 10ft containerised mobile storage solution:

• Off-grid
• Peak-shaving
• BMW batteries (certified for transportation)

2017

Successful pilot providing clean energy to Awakenings Eastern Special festival in Amsterdam

Spring 2018

Development of second generation mobile storage solution (Mobile 2.0): new software platform enabling more processing capacity and flexibility for future developments

Fall 2018/ Spring 2019

Initial roll-out at various festivals

Summer 2018

Spring/ Summer 2019

Scale-up and broader roll-out:

• Many festivals
• Internationalisation (e.g. UK Silverstone)
• Pilots with utilities (incl.
• Greenchoice and Alpiq)
• Testing new applications (grid take-over, maritime sector, construction sites)

Overview facilities Energy storage systems

Alfen facilities Almere, the Netherlands Energy storage systems facilities

• Since July 2018, new leased premises (c. 2,350 m2 production area, c. 920 m2 office space and c. 11,000 m2 outside area) for the assembly of energy storage systems
• Inside facilities include:
• ‒ Production floor for the pre-assembly of Energy Storage Inverters and AC-cabinets
• ‒ Large hall (with 16 metric tons crane) for the final assembly of (small) storage systems
• Outside area for:
• ‒ Assembly of containerised storage systems
• ‒ Conditioned storage of batteries
• ‒ Full testing area including energy management and distribution system to test storage systems in various configurations before shipping to our clients

Focus on continuous innovation to maintain market leadership position

• Release of second generation mobile storage solution for festivals and events
• Release of high density stationary storage, accommodating higher power and capacities in similar-sized containers
• Energy management system enabling full integration with local assets (solar PV, factories, EV charging hubs)
• Introduced micro-processor control platform to enhance response times for the frequency regulation markets

Recent innovations Selected items on innovation roadmap

• Improved data monitoring and reporting functionalities
• Multi-container functionality allowing multiple mobile storage systems to operate jointly
• Further increase efficiency through 'hot standby' mode of selected building blocks (reducing self-consumption of energy)

Summary of strategic focus

Energy storage systems

Scaling-up with existing (international) clients and adding new clients across Europe (rest of world with a 'followour-customer' approach)

Continuous innovation to maintain technology leadership position

Capture increasing share of recurring revenues from service and further monetise TheBattery Connect functionalities

Agenda

• 09:00 Registration and welcome
• 09:30 Group review
• Strategy recap
• YTD performance and outlook
• 10:30 Coffee break
• 11:00 Business line deep dives
• Smart grid solutions
• EV charging
• Energy storage
• 12:30 Wrap-up

12:45 Lunch

Agenda

• 09:00 Registration and welcome
• 09:30 Group review
• Strategy recap
• YTD performance and outlook
• 10:30 Coffee break
• 11:00 Business line deep dives
• Smart grid solutions
• EV charging
• Energy storage
• 12:30 Wrap-up

12:45 Lunch

Appendix - Income statement

In € '000	H1 2019	H1 2018
Revenue and other income	61,571	41,019
Smart grids	47,162	29,768
EV charging	9,721	5,614
Energy storage	4,688	5,637
Gross margin	22,253	12,581
as % of revenues	36.1%	30.7%
Personnel cost	13,343	7,799
Other operating cost	4,380	3,592
Impairment loss1	53	38
EBITDA	4,477	1,152
as % of revenues	7.3%	2.8%
Adjusted EBITDA	4,850	1,713
as % of revenues	7.9%	4.2%
Adjusted EBITDA (excl. IFRS lease adjustments)	3,973	1,713
as % of revenues	6.5%	4.2%
Adjusted net profit	1,435	639

• Revenue growth driven by strong market growth, further bolstered by internationalisation, cross-selling and service
• Margin increase as a result of Alfen's strong market position, leverage from increased scale, a shift towards increasingly complex solutions and favourable product mix effects
• Increase in FTEs from 262 at 30 June 2018 (410 at 31 Dec 2018) to 457 at 30 June 2019, including 83 FTEs at Alfen Elkamo. Part of this FTE increase is explained by replacing external hires, that were attracted in H2 2018 to accommodate a step-up in the Smart grids industry supply chain and prepare for further growth
• H1 2019 operating cost excludes €0.9m as a result of changed lease accounting under IFRS
• Adjusted EBITDA (corrected for €0.9m effect of changed lease accounting under IFRS) up 132% versus H1 2018, driven by strong revenue growth and margin improvement

85

Appendix - Balance sheet

In € '000	30 June 2019	1 Jan 20191
Non-current assets	26,108	24,348
Current assets	47,301	38,846
Cash and cash equivalents	233	849
Total assets	73,642	64,043
Non-current liabilities	15,102	15,335
Current liabilities	38,483	33,849
Bank overdraft	11,774	7,924
Equity	8,283	6,935
Total equity and liabilities	73,642	64,043

• Capex amounted to €3.2m as compared to €2.1m in the same period of 2018. Capex in H1 2019 includes investments in expanding production and warehousing as well as €2.0m of capitalised development costs which demonstrates the company's continued efforts to invest in innovations for the future

• Working capital² increased to €8.8m (versus €5.0m at 1 January 2019¹ ) due to pre-deliveries in the supply chain to cover the summer period, seasonality and increased stock levels reflecting further growth of the business

• Unaudited, including IFRS16 adjustmentfor changed lease accounting (impact of €7.8m on total assets and liabilities)

86 2. Calculated as total current assets excluding cash and cash equivalents, minus total current liabilities excluding bank overdrafts