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Lhyfe Earnings Release 2024
1482_iss_2024-09-24_29f30186-16dc-4e95-803d-d3326956d17f.pdf
Earnings Release
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H1 2024 Results
Revenues x4, continued industrial and commercial ramp-up
- · Revenue reached €1.7m in H1 2024, x4 compared with H1 2023
- · Consolidation of portfolio of clients and higher visibility on revenues, with several offtake contracts signed in France and Germany, including the recent signing of a 5-year offtake contract with Europe's leading network of service stations H2 Mobility
- · Bouin site running now at full capacity with 100% success rate in deliveries
- · Sites scale-up steadly ongoing, with the achievement of significant milestones, including the award of a grant of up to €149m from the French government for the 100 MW Green Horizon project near Le Havre in France
- · Increased level of secured grants at c.€243m, x3 compared with H1 2023, to support the development and construction of the projects pipeline
- · Solid cash position with €93m available as of June 2024
Matthieu Guesné, Founder and Chairman-CEO of Lhyfe:
"Our performance in the first half of the year is a testament to the efficiency of our team, as we navigate a rapidly evolving industry. With revenues increasing fourfold, we are proving that our strategy not only benefits the environment but also drive growth. Our client portfolio is building up with the signing of several key new contracts; We thus reinforce our role as a pioneer in the sector. As we head into the second half, we will continue to innovate, and we are focused on scaling up and on transforming industries worldwide."
Nantes (France) - 24 September 2024 - 7:00 am - At its meeting held on 23 September 2024, the Board of Directors of Lhyfe (Euronext Paris - FROC14009YQ1 - LHYFE), one of the world's pioneers in the production of green and renewable hydrogen to decarbonise industry and mobility, approved its consolidated financial statements for H1 2024 (from 1 January 2024 to 30 June 2024). These financial statements were the subject of a limited review by the Statutory Auditors. The half-year financial report to end-June 2024 is available on Lhyfe's website, in the Investors section.
Revenue in H1 2024: x4 compared to H1 2023
In H1 2024 Lhyfe has continued its sales consolidation, having more than quadrupled its revenue to €1.7m, compared with €0.4m in H1 2023.
This performance reflects the ramp-up of the Bouin production unit and the expansion of the portfolio of customers, following the signing of new green hydrogen sales contracts, both in France and Germany. As a reminder, Lhyfe began recently to build up its German portfolio with the first customers delivered in Germany in H2 2023.
Since the start of 2024, the Group has made 290 deliveries to clients located mainly in France and in Germany, with a 100% delivery rate.
To meet the growing customer demand in the region, the increase in production capacity at the Bouin site is planned and will be implemented in the coming months in accordance with the site's production schedule. The current installed production capacity of 1MW will be increased to 2.5 MW (i.e. a maximum of 1 ton of green hydrogen per day). Concurrently, the on-site storage authorization has been increased from 1 ton to 5 tons.
A growing portfolio of customers building up visibility on sales
New customers were signed over the period and add visibility to Lhyfe's sales volume.
They include notably in France transport specialist such as Hyliko, the Karp Kneit road projects group, Géométhane and a taxi company.
In Germany, the customer portfolio also expanded with, among others, new client Leipziger Stadtwerke group and, more recently, with the signing during the summer 2024 of a 5-year offtake agreement with H2 Mobility Deutschland, Europe's largest operator of public hydrogen stations, to provide more than 240 tons of green hydrogen on average per year [1,200 tons over the period]. This is the first long-term offtake agreement signed by Lhyfe in Germany for bulk green hydrogen. This contract follows on from the longterm contract recently signed by Lhyfe with HYmpulsion in the second half of 2023 to supply 7 of its service stations in France.
Several other long-term contracts were signed since the beginning of the year, strengthening our unique customer reach, including a 3-year offtake contract with a refuelling station operator in France for more than 45 tons of green hydrogen per year as well as a 3-year offtake contract signed in August 2024 with a large energy player in Germany for more than 40 tons of green hydrogen per year on average. All these contracts will contribute to the commercial ramp-up of our existing and coming sites in France and in Germany.
Update on existing sites
France: Lhyfe Occitanie (Bessières) and Lhyfe Bretagne (Buléon)
The Buleon and Bessières sites, each with an electrolysis capacity of 5 MW - seven times greater than the historic Bouin site - have now been installed. These two new sites in Brittany and Occitanie represent the two largest bulk green and renewable hydrogen production sites in France. The two production units have adopted a new 'containerized' format, which has the dual advantage of reducing the footprint of the sites and making them more scalable to support the development of uses in the regions.
The first deliveries to customers will take place by the end of the year.
Buléon site, Morbihan, France
Germany: Tübingen
Lhyfe has built and will operate a green hydrogen onsite production plant for Deutsche Bahn in Tübingen, Germany. It is the first site installed and operated by Lhyfe in Germany. The electrolysis plant in the innovation hub of DB Energie, a Deutsche Bahn subsidiary, has an annual production capacity of up to 30 tons [representing an installed electrolysis capacity of 1 MW), with energy supplied from Deutsche Bahn's green electricity portfolio. At the Tübingen innovation hub, DB Energie is indeed testing new technologies for sustainable rail energy supply, including in the *H2goesRail" project. Using the green hydrogen produced, a climate-neutral hydrogen train will be put into operation this year on a test route in Baden-Württemberg, between Tübingen, Horb and Pforzheim.
Tübingen site, Bade-Wurtemberg, Germany
Progress of sites in Construction stage
France: Croixrault and Le Cheylas bulk sites
In Croixrault, in the Hauts-de-France region, Lhyfe launched civil works in the first half of 2024 after obtaining all the permits and authorisations needed to launch construction of a production unit designed to produce up to 2 tons of green hydrogen per day (representing an installed electrolysis capacity of 5 MW), and after taking FID. The production unit, located on the Mine d'Or industrial park alongside the A29 motorway, is intended to supply local uses in mobility and industry.
In Le Cheylas, between Grenoble and Chambéry, Lhyfe has taken FID for a green hydrogen production plant and civil works have just started in the second half of 2024. From 2025, and for a period of 10 years, Lhyfe will supply anchor client HYmpulsion with up to 1.6 ton of green hydrogen per day to meet the needs of 7 hydrogen stations in the Alps. Lhyfe will also supply regional manufacturers looking to replace grey hydrogen or natural gas by green hydrogen. To meet the growing customer demand in the region, the initial production capacity of 2 tons of green hydrogen per day has been increased to 4 tons
(representing an installed electrolysis capacity of 10 MW). For this project Lhyfe received a grant of €5.5m in the first half of 2024.
Le Cheylas site, Isère, France
Germany: construction ongoing at the Schwäbisch Gmünd bulk site
In Schwäbisch Gmünd, construction of the production site (up to 4 tons of green hydrogen per day, representing an installed electrolysis capacity of 10 MW) continued in the first half of the equipment has been delivered and installed on site. Electrical and piping installation is in progress.
Schwäbisch Gmünd site, Bade-Wurtemberg, Germany
A solid financing position
At end of June 2024, the Group benefitted from a solid cash position with €93m of cash and cash equivalents, compared with €114m at end of December 2023.
In the 1st half of 2024, Lhyfe continued to increase the amount of secured grants' intended to finance mainly production sites under construction or in development, as part of competitive national and European calls for projects. As of 30 June 2024, secured grants totaled €243m, increasing three-fold the amount of H1 2023.
1 Including signed grants and grants currently under contractualization process
This amount includes notably the three following subsidies, obtained or confirmed during the first half of 2024:
- a €5.5m grant from the Auvergne Rhône-Alpes Region for the construction of a production unit at Le Cheylas in France
- a subsidy of c.€11m obtained in June 2024 from Klimatklivet, an investment programme supported by the Swedish Environmental Protection Agency, to build a local renewable hydrogen production system in Trelleborg, the southernmost city in Sweden, that will be able to produce up to 4 tons of green hydrogen per day (based on a 10 MW installed electrolysis capacity)
- a subsidy up to €149m, confirmed by the French government during the first half of 2024, for the Green Horizon project which provides for the construction of a green hydrogen production plant with an installed electrolysis capacity of 100 MW near Le Havre.
Projects pipeline at the end of H1 2024: 9.5 GW of installed electrolysis capacity
At the end of H1 2024, Lhyfe's pipeline represented a total installed electrolysis capacity of 9.5GW (versus 9.9 GW in December 2023). Supported since 2022 by the RepowerEU European energy independence plan, this portfolio of projects is dynamically managed by Lhyfe's teams, who work to transform and mature each project.
Within this portfolio, projects at an advanced stage of development® represented a total installed generation capacity of 598 MW as at 30 June 2024 [vs. 559 MW at end of Dec. 2023].
As of 30 June 2024, the allocation of Lhyfe's project pipeline between the different project stages was as follows:
| June 2024 | End 2023 | |
|---|---|---|
| Units in Operation4 | 12 MW | 6 MW |
| Projects at Construction4 stage | 43 MW | 39 MW |
| Projects at Awarded4 stage | 10 MW | 25 MW |
| Projects at Tender Ready4 stage | 545 MW | 495 MW |
| Projects at an advanced stage of development® | 598 MW | 559 MW |
| Projects at Advanced Development4 stage | 4.4 GW | 5.0 GW |
| Projects at Early Stage4 | 4.5 GW | 4.3 GW |
| Total projects pipeline | 9.5 GW | 9.9 GW |
During the f* half of 2024, Lhyfe's teams have continued to work on the development of bulk, on-site and backbone sites projects, with significant milestones achieved during the period for several of them .
- On bulk projects:
- Launch of a first project in the UK in Wallsend with plans for 20 MW green hydrogen plant capable of producing up to 8 tons of green hydrogen per day
- o Awarding of a c.€11m subsidy for a 10 MW plant in Trelleborg, in the south of Sweden, which will be able to produce up to 4 tons of green hydrogen per day
- On onsite projects:
- Obtention of a grant of up to €149m from the French government for the Green Horizon project which provides for the construction of a 100 MW green hydrogen production plant near Le Havre in Normandy, close to the Yara plant, whose decarbonisation roadmap includes the use of green hydrogen
- Conclusion of a memorandum of understanding with Swiss Steel Group subsidiary Ugitech
² The pipeline does not include offshore projects
³ Projects in Tender Ready, Awarded, and Constructions of these stages are detailed in Section 1.8.1 of the Universal Registration Document approved by the AMF on 25 April 2024 and available on Lhyfe's website
4 The definitions of these stages are detailed in Section 1.8.1 of the Universal Registration Document approved by the AMF on 25 April 2024 and available on Lhyfe's website
് More details on each of the announced projects are available on https://www.lhyfe.com/investors/financial-press-releases/
aiming at creating a green hydrogen production unit at Ugitech's Ugine site in Savoie, France, with a capacity up to 12 tons per day (30 MW of electrolysis capacity)
Post closing of 30 June 2024, two other onsite projects achieved key milestones:
- Exclusive partnership signed with Elyse Energy, a pioneer in the production of low-carbon molecules, in order to develop the production of e-methanol from green hydrogen that would be produced by Lhyfe in a production unit (up to 85 tons per day) to be built at the heart of the Loire Estuary's industrial and logistics port ecosystem, as part of a call for proposal launched by Nantes Saint-Nazaire Port and won by Lhyfe
- Signing of a partnership with OX2, one of Europe's largest onshore wind developers, and Velarion, to create a hydrogen-based industrial cluster in Ange, Sweden, including a c.300 MW plant capable of producing up to 100 tons of green hydrogen per day to be notably used by Velarion's carbonneutral fertilizer plant within this industrial cluster.
2024 half-year results
First-half income statement
| In M€ - IFRS | 30/06/2024 | 30/06/2023 |
|---|---|---|
| (6 months) | (6 months) | |
| Revenue | 1.7 | 0.4 |
| Adjusted EBITDA® | (13.1) | (14.3) |
| Current operating result | (13.0) | (16.2) |
| Operating result | (13.3) | (16.2) |
| Financial result | 0.7 | 0.6 |
| Consolidated net result | (14.0) | (15.9) |
H1 revenues increased 4-fold at €1.7m versus €0.4m in H1 2023 and were mainly related to the supply and delivery of green hydrogen produced at the Bouin site. This significant increase in revenues is the result of the expansion of the Group's customer portfolio over the last twelve months both in France and in Germany.
Adjusted EBITDA was €(13.1)m in H1 2024, an improvement compared with €(14.3)m a year earlier, mainly reflecting an additional margin from increased activity as well as efficient costs management.
- " +€1.1m additional gross margin versus H1 2023, reflecting growth in revenue;
- External expenses were almost stable at €(5,9)m, as higher transport and maintenance costs in line with higher activity - were offset by a more limited use of external service providers;
- Limited increase in personnel expenses €0.2m, or +2%, once restated for share-based payments. As of 30 June 2024, headcount was 200, compared with 192 at 30 June 2023, as the Group is structuring an optimized organization. For 2024 headcount is expected to stabilize near current level, with additions to reflect mainly operation and maintenance at new sites following installation and commercial start-ups.
Group's current operating loss amounted to €(13.0)m, compared with €(16.2)m as of 30 June 2023, reflecting (i) the improvement in EBITDA, (ii) a €1.9m non-cash gain related to a share-based compensation plan, while in the first half of 2023, a related €1.0m expense was accounted, partially offset by (iii) higher depreciation charges.
Financial result was almost stable at €0.7m, reflecting both higher financing costs related to the syndicated green loan and to the refinancing of hydrogen transport assets, and additional income from
® Adjusted EBTDA: consolidated current operating result before anortisation and provisions, before charges linked to equity-based compensation and before fair value adjustment on derivative financial adjustments
short term investments.
As a result, net loss for the period was £(14.0)m, an improvement from €(15.9)m in H1 2023.
Consolidated balance sheet
Cash consumption over the period for €21.4m, broken down as follows:
- · Net cash flow from operating activities for the period amounted to €(14.4)m versus £(11.4)m YoY, notably as the improved EBITDA was offset by a negative change in the working capital requirement, being a negative change of €2.9m in H1 2024 compared with a positive €2.1m change in H1 2023;
- . Net cash flow from investing activities amounted to £(16.8)m versus €(7.8)m YoY, related mainly to equipment purchases as well as development and engineering costs for production sites;
- · Net cash flow from financing activities amounted to €9.8m versus €2.5m YoY, reflecting mainly the refinancing of a large part of its hydrogen transport assets for €7.3m, additional financing of €3m as part of the syndicated green loan closed end of 2023 and received grants.
As of 30 June 2024, Lhyfe's consolidated shareholders' equity was €86.5m. The company's available cash amounted to €92.8m while net cash' stood at €27.8m, reflecting the debt increase over the period. As a reminder, most of the debt has a long maturity of more than five years. This strong cash position gives the company good visibility to continue deploying its strategy, increasing its production capacity and developing its projects pipeline of projects.
Guidance confirmed
The Group pursues its strategy and confirms its objectives:
- · for fiscal year 2024, to quadruple its revenue compared with the fiscal year 2023, with a revenue target of c.€5m. The Company also estimates that at this date, the Group will have a total installed capacity of around 20 MW;
- · for fiscal year 2026, Group adjusted EBITDA margin® of around 10% on consolidated revenue of around €100m;
- · By 2030, to have a total installed capacity of 3 GW of assets under management® and a Group adjusted EBITDA margin in excess of 30%. As an indication, at this date, the net share of assets held by Lhyfe® should be around 20%.
Financial calendar
| Date | Release |
|---|---|
| 27 March 2025 (before Euronext Paris market opens) | FY 2024 results (audited) |
| 23 May 2025 | General Meeting |
7 Net cash = cash and cash equivalents – current and non-current financial debts (including IFRS 16 lease debt)
® *Group adjusted EBITDA margin" is defined in the Glossary at the 2024 Half-Year Financial Report
9 "Assets under management" is defined in the Glossary at the 2024 Half-Year Financial Report 10 *Net share of assets held by Lhyfe" is defined in the Glossary at the 2024 Half-Year Financial Report
About Lhyfe
Lhyfe is a European group devoted to energy transition, and a producer and supplier of green and renewable hydrogen. Its production sites and portfolio of provide access to green and renewable hydrogen in industrial quantities, and enable the creation of a virtuous energy model capable of decarbonising entire sectors of industry and transport.
In 2021, Lhyfe inaugurated the first industrial-scale green hydrogen production plant in the world to be interconnected with a wind farm. In 2022, it inaugurated the first offshore green hydrogen production platform in the world.
In 2023, it inaugurated two new sites, and currently has several sites under construction or expansion across Europe. Lhyfe is represented in 12 European countries and had 200 staff at the end of June 2024. The company is listed on the Euronext market in Paris (ISIN: FR0014009YQ1 - LHYFE). More information on Lhyfe.com
Contacts
Investor relations LHYFE Yoann Nguyen [email protected]
Financial press relations ACTUS Manon Clairet 01 53 67 36 73 [email protected]
Business press relations
Nouvelles Graines Clémence Rebours 06 60 57 76 43 [email protected]
Appendix - Consolidated income statement
| In thousands of Euros | 30/06/2024 | 30/06/2023 |
|---|---|---|
| Revenue | 1,672 | 387 |
| Income from ordinary operations | 1,672 | 387 |
| Purchases consumed | (233) | (60) |
| External expenses | (5,949) | (5,839) |
| Personnel expenses | (7,409) | (10,095) |
| Taxes, duties and similar payments | (153) | (77) |
| Other current operating income and expenses | 666 | 367 |
| Depreciation and amortisation of fixed assets | (1,578) | (888) |
| Provisions for liabilities and charges | (31) | (38) |
| Current operating result | (13,015) | (16,243) |
| Other non-current operating income and expenses | (246) | 1 |
| Non-current operating result | (246) | 1 |
| Operating result | (13,261) | (16,242) |
| Cost of financial debt | (858) | (162) |
| Other financial revenue and expenses | 1,618 | 802 |
| Financial result | 660 | 640 |
| Income before tax | (12,601) | (15,601) |
| Income taxes | ||
| Share of income of companies accounted for under the equity method |
(1,385) | (344) |
| Consolidated net result | (13,986) | (15,945) |
| Minority interests | (16) | (53) |
| Net result (Group share) | (13,970) | (15,892) |
| Earnings per share (in Euros) | (0.29) | (0.33) |
Appendix – Consolidated statement of financial position
| ASSETS In thousands of Euros |
30/06/2024 | 31/12/2023 |
|---|---|---|
| Intangible assets | 14,540 | 11,004 |
| Property, plant and equipment | 62,559 | 50,306 |
| Right-of-use assets | 15,980 | 7,761 |
| Investments in companies accounted for under equity | ||
| method | 978 | 2,387 |
| Non-current derivative financial instruments | 17 | |
| Other non-current assets | 2,641 | 3,249 |
| Deferred tax assets | ||
| Non-current assets | 96,715 | 74,707 |
| Inventory | 205 | 176 |
| Trade receivables | 827 | 604 |
| Current derivative financial instruments | 1.080 | |
| Other current assets | 13,292 | 10,743 |
| Cash and cash equivalents | 92,811 | 114,252 |
| Current assets | 108,215 | 125,775 |
| Assets | 204,930 | 200,482 |
| LIABILITIES | ||
| In thousands of Euros | 30/06/2024 | 31/12/2023 |
| Share capital | 479 | 479 |
| Premiums | 163,839 | 163,824 |
| Reserves | (63,805) | (28,328) |
| Net result | (13,970) | (33,488) |
| Equity - Group share | 86,543 | 102,487 |
| Minority interests | (85) | (69) |
| Equity | 86,458 | 102,418 |
| Non-current provisions | 3.198 | 3.167 |
| Non-current borrowings and financial liabilities | 34,482 | 49,314 |
| Non-current derivative financial instruments | 428 | |
| Deferred tax liabilities | ||
| Other non-current liabilities | 16,166 | 16,273 |
| Non-current liabilities | 54,274 | 68,754 |
| Current provisions | 44 | ਪ੍ਰ |
| Current borrowings and financial liabilities | 30,550 | 4,353 |
| Current derivative financial instruments | 861 | |
| Trade payables | 18,973 | 15,225 |
| Other current liabilities | 13,769 | 9,688 |
| Current liabilities | 64,197 | 29,310 |
| Liabilities and equity | 204,930 | 200,482 |
10
Appendix - Cash flow statement
| In thousands of Euros | 30/06/2024 (6 months) |
30/06/2023 (6 months) |
|---|---|---|
| Consolidated net result | (13,986) | (15,945) |
| Share of income of companies accounted for under the equity method Adjustments for: |
1,385 | 344 |
| Depreciation, amortisation and provisions | 2,245 | 926 |
| Net financial result | 825 | 118 |
| Expenses calculated related to share-based payments | (1,866) | 1,0005 |
| Change in fair value of financial instruments | 325 | પરિ |
| Other non-cash effects | (391) | (1) |
| Income taxes paid | ||
| Net working capital : | ||
| Change in inventory | (29) | (20) |
| Change in trade receivables | (223) | (44) |
| Change in current non-trade receivables | (1,126) | (2,719) |
| Change in trade payables | (2,009) | 2,317 |
| Change in other current liabilities | 478 | 2,555 |
| Net cash flows from operating activities | (14,372) | (11,421) |
| Purchases of intangible fixed assets | (4,529) | (2,947) |
| Purchases of property, plant and equipment | (12,281) | (2,365) |
| Disposals of property, plant and equipment | ||
| Increase/decrease in financial assets | (રેકો) | (378) |
| Interest received | ||
| Impact of changes in scope of consolidation | (2,150) | |
| Net cash flows from investment activities | (16,849) | (7,839) |
| Share capital increases, net of expenses | 15 | 3 |
| Issue of new loans, net of expenses | 10,249 | |
| Repayable advances received | 49 | |
| Subsidies received | 2,240 | 3,791 |
| Loan and current account repayments | (330) | (144) |
| Repayment of lease liabilities | (803) | (311) |
| Sales / (Purchases) of treasury shares | (102) | (50) |
| Interests paid | (1,490) | (836) |
| Net change in bank loans | ||
| Net cash flows from financing activities | 9,779 | 2,502 |
| Impact of changes in foreign exchange rates | 1 | (6) |
| Net change in cash and cash equivalents | (21,441) | (16,764) |
| Cash and cash equivalents at beginning of period | 114,252 | 144,492 |
| Cash and cash equivalents at end of period | 92,811 | 127,728 |