Augwind Energy Tech Storage Ltd

Regulatory Filings • Jan 4, 2021

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Immediate report 4 January 2021

Symbol: AUGN

Sector: Technology

Sub-sector: Cleantech

Stock Price Target: NIS 121.3

Closing Price: 100.5 NIS Market Cap: 2.0 B NIS # of Shares: M 19.5 Average Daily Trading Volume (3M): 5,337 3M Return: 4%

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Stock Exchange: TASE Summary and conclusions

Augwind announced recently on the following:

• 1) 29 December 2020 agreement with Solegreen on a minimum capacity of 120MWHr project (Air-Battery) that won the Electricity Authority's tender. Tariff for winners is 0.1745NIS per kWh that as part of Competitive Procedure No. 2 for the construction of facilities using photovoltaic technology combined with storage capacity to be connected to the distribution network. Annual revenues are estimated to be NIS 70M. This agreement represents an additional capacity of 20MWHr on a separate project.
  • 2) 22 December 2020 agreement with EDF renewable energy on a 20 MWHr project (Air-Battery).

We view these agreements as part of Augwind progress and increase our confidence in the company's business potential.

According to a customer survey conducted by Frost & Sullivan, 48% of residential solar PV system owners said they were likely or extremely likely to install a storage system by 2025.

Frost & Sullivan prepared a research where it estimates potential scenarios for storage energy growth. In a conservative scenario, recovery is much more protracted: it takes until 2022 for the market to exceed the installations made in 2019, and it is only by 2025 that it return to the pre-COVID-19 forecast level. A total of 63.1 GW would be installed between 2020 and 2025, compared with a forecast of 79.3 GW if the COVID-19 outbreak had not occurred. CAGRs are 32.8%.

From a technology perspective, Air-Battery (compressed air storage) is a mature high impact technology in a commercial installation phase as can be view below:

Dr. Tiran Rothman – Lead Analyst

Equity.Research@frost.com Tel.: +972-9-9502888

We maintain our valuation of Augwind at a value of NIS 2.3 billion; we estimate Augwind's price target to be at the range of NIS 104.3 to 144.1 NIS with a mean of NIS 121.3. We will update Augwind value based on its on-going progress.

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We attached to our publication the full report on the Global Energy Storage Industry, 2020

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