Investor Presentation • Apr 28, 2022
Investor Presentation
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Stefano Neri CHAIRMAN
Paolo Piccini CEO
Idilio Ciuffarella GENERAL MANAGER
Filippo Calisti CFO & IR
Virtual power plant market to be worth \$ 4.5 billion by 2024 Bis Research
Financial analysts predict that microgrids' share of the market will increase by 19% to 2024 (\$ 19 billion) Global Market Insights
Wholesale gas prices are around 400% higher than a year ago and wholesale electricity prices have followed the same pattern, increasing by 260%
«Gas and electricity prices will remain high and volatile until at least 2023»
Long term forecasts by European Commission's communication on energy prices
1,200 GW of additions seen by 2024 (60% new PV plants) S&P Global Commodities Insight
Market for Digitalization in Energy Sector to Grow to \$ 64 billion by 2025 «Italy is one of the global leaders in utility and small-scale PV, has almost 100% high speed network coverage, and supportive regulation for digital technologies» Bloomberg New Energy Finance
The integrated building management systems (IBMS) market is expected to grow by \$ 328.6 billion to 2029, CAGR of over 22,2%. Smart City Market to grow at a CAGR of 23% by 2024, with an incremental growth of \$ 2118.14 billion Fortune Business and Technavio Research
EV charging points in Europe is forecast to grow at a compound annual growth rate (CAGR) of 31.1%, to 5.2 billion in 2024. Berg Insight
Residential storage in Europe to grow 500% by 2024 (6.6 GW) Wood Mackenzie forecasts
PROPOSAL FOR NEW BIOENERGY PLANTS (12 GIGAWATTS) WITH ENERGY THUS PRODUCED AT A FIXED PRICE OF 65 EUROS PER MWH (COMPARED TO A PRICE THAT HAS NOW REACHED 280 EUROS) FOR 20 YEARS, WITHOUT INDEXATION Energia Futura
BIOMETHANE DERIVED FROM THE ORGANIC FRACTION OF MUNICIPAL WASTE (1.5 BILLION CUBIC METRES), TOTALLING 8 BILLION CUBIC METRES TO 2030 Consorzio Italiano Biogas
BIOMETHANE CAN COVER 10% OF CURRENT DEMAND, BUT WITH MEASURES TO REDUCE CONSUMPTION ITS CONTRIBUTION COULD RISE TO 15%, IN LINE WITH THE TARGET SET BY THE EU COMMISSION'S PLAN Consorzio Italiano Biogas
PLANT DEFICIT TO 2035 OF 3.2 MILLION TONNES FOR ORGANIC TREATMENT AND 2.7 MILLION TONNES FOR ENERGY RECOVERY Utilitalia
OPPORTUNITIES OF PARTNERSHIP BETWEEN DIGITAL, WASTE MANAGEMENT AND CLEANTECH COMPANIES AIMED AT THE ESTABLISHMENT, MANAGEMENT AND IMPLEMENTATION OF A COMMON PROJECT WITH THE STEWARDSHIP MODEL
WASTE TO ENERGY (WTE) MARKET SIZE TO REACH \$ 35.5 BILLION BY 2024, WITH A PROJECTED CAGR OF 6.5% Global Market insights
THE GLOBAL WASTE RECYCLING SERVICES MARKET IS VALUED AT 66.9 BILLION TO 2024, REGISTERING A CAGR OF 4.8 % Statista
DIGITAL TECHNOLOGIES WILL DELIVER MORE EFFICIENT WASTE MANAGEMENT IN EUROPE WITH AN EXPECTED GROW AT A CAGR OF 10.87% TO REACH NEARLY \$ 4.3 BILLION BY 2027 EMR Global smart waste management market
EMISSIONS REDUCTION STRATEGY TO 2050
SUPERBONUS 110% AND ECOBONUS
Single market, innovation and digital € 11.5 billion Natural resources and environment € 18.9 billion Horizon Europe € 95.5 billion
Digitalisation, innovation, competitiveness and culture € 40.32 billion Green revolution and ecological transition € 59.47 billion Infrastructure for sustainable mobility € 25.40 billion
Sets a target of a 30% share of renewable energy in final energy consumption by 2030, and 21.6% in transport, which is higher than the 14% set by the EU
The European Climate Law sets a legally binding target of net zero greenhouse gas emissions by 2050, taking into account an indicative greenhouse gas budget for 2030-2050 to be published by the Commission
Building a stronger economic base", starting with "Reducing strategic dependencies". The measures include circular economy and sustainable agriculture; renewable energy, hydrogen, grid and sustainable mobility; energy efficiency and building renovation
A 110% deduction of the expenses for interventions aimed at energy efficiency and static consolidation or reduction of seismic risk in buildings. Include the installation of PV plants and EV-charge. The Superbonus is available until 31 December 2025, in the following measures: 110% for expenses incurred until 31 December 2023; 70% in 2024; 65% in 2025
*BALANCE SHEET CLOSED AS AT 31/12/2021
algoWatt designs, develops and integrates solutions for the sustainability for the responsible social management of energy and natural resources, generating a competitive advantage
40+ YEARS IN THE DIGITAL MARKET
100+ CLIENTS LEADER IN THE ENERGY, UTILITY, MOBILITY, TECHNOLOGY, SOFTWARE
10%+
60+ MW OPERATION AND MAINTENANCE MANAGEMENT ON PV PLANTS
200+ EMPLOYEES
10 7 ITALIAN OFFICES 1 SOUTH AFRICAN OFFICE 1 GREEK OFFICE 1 POLAND OFFICE
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APRIL 28th 2022
CAPTION:
Source: Company information
1) The percentage relating to the Italeaf's voting rights at the shareholders' meeting is 58.38%
*Represents a simplified structure of the Group, with subsidiaries abroad, those operating in the core sectors and those holding assets that are being sold as part of the Recovery plan.
We want to foster the culture of energy, representing the Italian technological edge and anticipating the future sustainable solutions.
We enable digital transformation and the energy and ecological transition through smart technologies, empowering customers and consumers to use resources in a more sustainable way.
WITH OUR SOLUTIONS ECOSYSTEM AND OUR PARTNERSHIP FOCUS, WE ENSURE ALWAYS THE BROADEST WAY TO INNOVATION
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All rights reserved algoWatt S.p.A.
APRIL 28th 2022
| HITACHI | Posteitaliane | FREI | acea | K Terna | enel | SIEMENS | SE EDISON |
|---|---|---|---|---|---|---|---|
| $\overline{\ }$ amiu | SOCHGROSS | In the sum | 大学 Ū OSPEDALE SAN MARTINO |
ABB | TOSHIBA | $T = TIM$ | SORGENIA |
| "AMTGenova | autostrade per l'italia | Collain | ELEONARDO | ALPIQ | $\bullet\bullet\bullet\bullet$ Iren |
alperia | AU MAcquirente |
| Civil Aviation | IŒT ISTITUTE CLISICO |
Ayy life.augmented |
CESI | helios) | FFIC | Atos | |
| NCI GLOBAL |
ENAC | $rac{\Delta}{\Delta}$ | europ assistance |
RI NH | CARONTE & TOURIST 6 |
登 European Commission Joint Research Centre |
Duferco |
| ATM / AZIENDA TRASPORTI MILANESI S.p.A. |
ataf BUSITALIA |
SER DI MILANO | ATRENORD | $\times$ INSIS system engineering S.p.A. |
Liguria Digitale |
GRUPPO | U olivetti |
| Buzzi Unicem | SCOSIDG | Telenergy | SS ferrero | Wenav | AU III Acquirente |
Servizio Contractor Elettrico $\equiv$ Nazionale |
ALCHIMIA |
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APRIL 28th 2022
Simplification of the corporate structure by eliminating business units to increase efficiency and optimise costs
GROW
Review of strategic options to accelerate transformation and address structural issues
Managed change with strong leadership to be close to the customer with new structures (software factory, centralised project management, solution delivery) and improved business processes.
ENABLER
We want to combine our strong technological core with the recovery of system integration expertise and knowhow, to provide turnkey solutions to meet the demand for widespread digitalisation and new solutions for sustainable energy and resource management
All rights reserved algoWatt S.p.A.
VALUE ADDED RESELLING
Value Added Reselling (VAR) of key components of Photovoltaic (inverter and storage) enabled by the expertise, history and references of TerniEnergia
EV CHARGERS
Industrial support in the realisation of the complete system from high-tech battery charging modules to the entire product range (power conversion, microcontrollers, security, auxiliary power supply, operating service and communication solution).
EXPANSION OF VIRTUAL PRODUCT PORTFOLIO FOCUSED ON ENERGY INTENSIVE SECTOR
Energy saving of Datacenters with HW components such as UPS and Cooling Systems that, integrated with the Supervision and Monitoring System (BEMS, Building Energy Management System) allow to offer a package of energy efficiency solutions extended
APRIL 28th 2022
VPP is a cloud-based distributed power plant that aggregates the capacities of heterogeneous distributed energy resources (DER) for the purposes of enhancing power generation, as well as trading or selling power on the electricity market.
Enabling digital transformation and new energy and sustainable resources management paradigms
Introduction of digital technologies for the development and adoption of smart solutions for the environmental industry and the management of waste and marginal resources. New services: e.g. smart waste bins, robotics, apps, analytical tools and decision support software
Subscription of at least 3 Stewardships with companies in the sector for:
propose existing products for customisation;
development of new products and services with the costs covered by the partners on favourable terms;
We want to disclosure our environmental, social and governance criteria to be evaluated beyond the balance sheet by impact investors
UTILITY
EXPANSION OF THE PIPELINE DEDICATED TO ACTIVITIES RELATED TO THE BUILDING ENERGY EFFICIENCY WITH THE 110% SUPERBONUS AND FAST-TRACKING OF CONSTRUCTION SITES THANKS TO THE AGREEMENT WITH A COMMERCIAL/FINANCIAL PARTNER
INSTALLATION OF CRITICAL INFRASTRUCTURES WITH IMPLEMENTATION OF HW AND SW DEDICATED TO DIGITALISATION, BASED ON THE COMPANY'S TRACK RECORD (E.G. TICKETING TERMINAL FOR CARONTE & TOURIST)
CONSTRUCTION OF TURNKEY SYSTEMS FOR THE REDUCTION AND MANAGEMENT OF ENERGY CONSUMPTION OF ENERGY-INTENSIVE COMPANIES OR COMPLEX STRUCTURES WITH INNOVATIVE FORMULAS SUCH AS PPA (E.G. INDUSTRIAL SITES, BUILDINGS, PUBLIC ADMINISTRATION)
APRIL 28th 2022
Revamping and relaunch of the PV business counting on the solid national and international references of TerniEnergia (over 400MW installed since 2005) and on the value of the brand, through the subsidiary TerniEnergia Progetti, which will be put back on track.
Enhancement of the hi-tech O&M activities (including PAM/PV Inspector and Sundrone)
Managing co-development and EPC for plants <4MW with simplified authorisations and Agrivoltaic formula
All rights reserved algoWatt S.p.A.
AlgoWatt through its abroad subsidiaries using their commercial presence and high-level project capabilities as differentiation
MAIN TARGETS
(strong development process of renewable energy) 5542 licences are available for renewable energy projects involving all type of power generation and market value of 5 GW
(TerniEnergia's historic market) expected as electricity system reform 6 GW of new solar photovoltaic capacity and 14 GW of new wind power capacity
DIGITALISATION OF ENVIRONMENTAL SYSTEMS TARGET COMPANIES WITH STRONG GROWTH POTENTIAL ACTIVE IN THE DECARBONISATION, WASTE MANAGEMENT, RECOVERY AND RECYCLING, SUSTAINABLE RESOURCE MANAGEMENT SECTORS
BILLING RECOVERY OF THE HISTORIC ITALIAN LEADERSHIP OF EX-SOFTECO IN THIS SECTOR
The current evaluations are focused on different realities consistent with the Restructuring Plan by using the treasury shares available to the Company.
In the event that the assessments will be not successful, the merger transactions will be converted into Partnerships/Stewardship for the provision of services.
NFP REDUCTION
NET EQUITY vs NFP
This document, prepared by algoWatt S.p.A., is for information purposes only. This document contains forward-looking data, projections, targets, estimates and forecasts that reflect the Company's management's current estimates of future events. Such forecasts include, but are not limited to, all information other than factual information, including, without limitation, information regarding operating results, strategy, plans, objectives and future developments in the markets in which the Group operates or intends to operate. The Group, its advisers, representatives, directors, officers or employees shall not be liable (negligently or otherwise) for any loss arising from the use of or reliance on this document and its contents.
All forward-looking information contained herein has been prepared on the basis of certain assumptions which may prove to be incorrect and, accordingly, the results presented herein may vary. The Group's ability to achieve its intended results and objectives is dependent on external factors. Actual results may differ from those projected or implied in the forward-looking statements.
Subject to compliance with applicable laws, the Group does not undertake any obligation to publicly update and revise any forecasts and estimates, whether as a result of new information, future events or otherwise.
Neither this document nor its delivery to any recipient constitutes or is intended to constitute or contains or forms part of any offer or invitation to buy or sell any securities or related financial instruments. Any such offer or solicitation will be made by means of a prospectus.
INFO www.algowatt.com [email protected]
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