Coupling the Storage and eMobility
technology play with the ambition to own and operate the preferred
EV Fast Charging network of Stellantis
Regulatory News:
NHOA’s Chief Executive Officer, Carlalberto Guglielminotti,
presented to the Board of Directors the outcome of a comprehensive
strategic review of NHOA (Paris:NHOA), started by the management
after the signing of the agreement between the new majority
shareholder TCC (TWSE: 1101) and ENGIE, aimed at updating short and
long-term objectives and setting a layout to guide future growth
and development in the context of the new horizons ahead with
TCC.
NHOA’s chairman, Mr. Nelson Chang stated that “The recent
natural catastrophes of massive floods in Western Europe and
central China and the scorching wildfires in Northern America
clearly demonstrate that global warming is a real threat to
humanity’s survival. NHOA sees the urgency and will be fully
engaged in helping our world decarbonise to reduce such threat of
climate change.”
The outcome of such strategic review resulted in new short-term
targets and long-term outlook, namely “Masterplan10x” and
new strategic ambitions of NHOA (“Strategic Ambitions”)
prepared by the Executive Committee of NHOA and unanimously
approved by the Board of Directors.
In this context, NHOA has already presented in April 2021 the
new simplified operating model, structured around two Global
Business Lines (“GBL”):
- GBL Storage, led by Giuseppe Artizzu as General Manager,
operating across 3 geographies: Americas, EMEA and Asia-Pacific;
and
- GBL eMobility, represented Free2Move eSolutions, the joint
venture with Stellantis led by Roberto di Stefano as Chief
Executive Officer, operating by eMobility brands.
Mr. Guglielminotti presented the Masterplan 10x and the
Strategic Ambitions as a way to enhance the growth of the company
by 10x by 2025.
More specifically, the Masterplan 10x has the ambition to:
- set short-term targets for NHOA for 2021 and 2022, announcing
the revised guidance; and
- define NHOA’s long-term outlook for 2025 and 2030.
In addition, NHOA announces, following the signature of a
Memorandum of Understanding with Free2Move eSolutions and
Stellantis, the creation of a new Global Business Line named
“Atlante”. The Atlante Project is timely in the context of
the adoption by the European Commission, on July 14 2021, of the
Fit for 55 package whose aims are, among others, having 100%
zero-emission cars registered as of 2035 and installing charging
and fueling points at regular intervals on major highways: every 60
kilometres for electric charging and every 150 kilometres for
hydrogen refueling. Through the Atlante GBL, NHOA has the
Strategic Ambitions to own and operate a fastcharging
network for electric vehicles in Southern Europe, that, as
announced during the Stellantis EV Day 2021 on July 8, 2021, will
become the preferred fastcharging network of Stellantis and its
customers. Furthermore, in due course when the opportunity avails,
GBL Atlante plans to deploy its fastcharging network also in Taiwan
and other selected Asian countries, and along with GBL eMobility it
has the ambition, as announced during the Stellantis EV Day 2021 on
July 8, 2021, to mimic its business model in the North American
market.
NHOA’s management expects that the strengthening of the capital
structure of the company in the context of the Masterplan 10x and
the initial financing of the Strategic Ambitions will entail over
230 million euro of new financial resources.
As of today, thanks to the support TCC, NHOA has approved and
secured 50 million dollar credit lines and is further negotiating
with multiple financial institutions to secure up to additional 60
million euro facilities, totaling over 100 million euro new credit
lines (the “New Financing”).
In addition, c.130 million euro rights issue is expected be
launched after the completion of the simplified tender offer
expected to take place in September (the “Potential Capital
Increase”). TCC will, as majority shareholder and subject to
internal and regulatory approvals, subscribe for its proportion of
its entitlement and, if necessary, such amount to achieve a
successful Potential Capital Increase.
Masterplan10x Short-Term Financial
Targets and Long Term Outlook
REVENUES TARGET AND LONG-TERM
OUTLOOK
TARGET EBITDA MARGIN
2021
€26 to €40 million, depending
on
eMobility ramp-up and storage supply chain
delivery schedules
N.A.
2022
€100 (10x 2020 revenues)
to €150 million, depending on
eMobility ramp-up and storage projects execution schedule
EBITDA
Breakeven
2025
over €600 million,
representing 150% of the 2025 management
ambition announced in 2019
Low-double digit
(over 10%)
2030
over 15x NHOA’s 2022 revenues
Mid-double digit
(c.15%)
Strategic Ambitions: preliminary
assumptions and potential impact on Masterplan 10x
Preliminary
Assumptions
2021-2030
Additional capital expenditures
over the 2021-2030 period ranging between 100 and 140 thousands
euros per VGI fastcharger integrated with storage and solar
Assuming NHOA maintains control over
AtlanteCo and consolidates its financial statements on a line by
line (as defined below)
Installed Base Strategic
Ambitions
Masterplan 10x potential
impact
2022
c.100 fastchargers installed in 50
different locations, expected to be secured with the support of
Stellantis and its partners, plus 500+ fastcharging points at the
Mirafiori Plant Vehicle-to-Grid project
2025
c.5,000 fastchargers installed in
over 1,500 different locations, of which c.300 in
microgrid configuration (coupled with solar panels, storage
systems, and additional space for 10MW storage system)
- over €100m additional revenues potential
- mid-double digit EBITDA margin for NHOA
2030
Over 35,000 fastchargers installed
in c.9,000 locations, representing 15% market share in
Southern Europe
- 2x 2030 revenues targeted by the Masterplan 10x
- approx. 50% EBITDA margin for the Atlante GBL
Masterplan10x: multiplying by 10 key
performance indicators and industrial results
Masterplan10x is a plan that NHOA’s management has put together
with a view to enhance NHOA’s growth by 10 by 2025. To realize this
plan, there are key performance indicators and industrial results
NHOA will need to multiply by 10:
- Storage installed base: Following completion of the
Potential Capital Increase and thereby re-capitalizing NHOA, NHOA
will be in a position to tender for meaningful projects which NHOA
believes will help its target to install, in 2025 10 times the
whole energy storage installed base realized between 2015 and 2021,
i.e. over 170MW. This in turn means that, in 2025 NHOA is targeting
1.7GWh of new storage capacity additions, coming from projects that
would have to be secured by the end of 2023.
- Production Expansion: NHOA planning, through its GBL
eMobility, to expand its production by 10 and increasing its
production of 1,500 EV charging devices a week, to 15,000 by 2025.
This target can only be achieved through further enhancing our
relationship with our partners such as leveraging on the industrial
footprint of Stellantis and TCC’s access to a unique world-class
supply chain.
- Life-Time-Value of eMobility customers: NHOA is
planning, through its GBL eMobility, to multiply by 10 the
Life-Time-Value (LTV) of its eMobility customers. Indeed, when the
wallbox is bundled into a subscription including the energy to
charge the EV with a long-term contract, the value of the wallbox
is virtually multiplied by 10.
- Women Engineers: 29% of NHOA’s employees are women, NHOA
intends to shatter the glass ceiling and disrupt the structural
gender gap of female students in engineering (e.g. in Italy only
20% of engineering students are women), targeting by 2025 to
multiply by 10 the number of women engineers it employs.
- HSEQ: NHOA anticipates carrying out, by 2025, more than
10 times the investments in Health, Safety and Quality to support
the Masterplan10x while minimizing its execution risk.
- Pipeline: to facilitate a continuous growth through 2030
in line with the objectives of the Masterplan, NHOA also sets a
target in terms of pipeline of projects for 2025. NHOA has the
ambition to multiply by 10 the €1.0 billion pipeline achieved in
2020 to €10 billion in 2025, whereby a material contribution to
this pipeline is expected to be made by the GBL Atlante with the
rest from GBL eMobility and GBL Storage.
Strategic Ambitions: ATLANTE as
cornerstone
Atlante is at the center stage of NHOA’s Strategic Ambitions:
which represent the structural transformation of Engie EPS from a
pure technology player to NHOA, an infrastructure developer, owner
and operator that fully leverages on a complete product portfolio
and vertically integrated technology in both storage and
eMobility.
The Southern European public fastcharging market, namely Italy,
France, Spain and Portugal, is still nascent with rapid growth
expected towards 2030. Around 90% of 2030 Southern European
on-the-go fastcharging network is yet to be built and developed and
this constitutes a great potential business opportunity.
In particular, according to the analysis carried out by the GBL
eMobility with the support of McKinsey & Co: (i) the battery
electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV)
penetration in Southern Europe is expected to grow 26 times to 13
million BEVs by 2030, reaching 3 million by 2025, and (ii) the
on-the-go fast charging demand is expected to grow 46 times to 9
TWh by 2030, and up to 1.9 TWh by 2025. Charging System Operators
and Charging Point Operators will take center stage in this market,
and the role of owner and operator would represent the most
attractive long-term opportunity in public fast charging
market.
Given the potential size of this market, GBL Atlante has the
ambition of creating, over the next 10 years, one of the largest
Southern European vehicle-grid-integrated (“VGI”)
fastcharging network, to cater for the demands of the varied
customers of Stellantis (the “Atlante Network”), with the
ambition to develop, in line with what was announced by Stellantis
at the EV Day 2021 held on July 8, 2021:
- by 2025: charging stations in over 1,500 sites (of which 300 in
Microgrid Setup, as defined below), with c.5,000 VGI Fastchargers
integrated with storage and solar in Southern Europe (“Phase
1”); and
- by 2030: charging stations in c.9,000 sites, with over 35,000
VGI Fastchargers integrated with storage and solar in Southern
Europe (“Phase 2”).
All details about the Atlante Network perimeter and the
Strategic Ambitions developed with the support of McKinsey &
Co, are described in the dedicated Press Release issued on the date
hereof.
In addition, NHOA will leverage on the 1,500 sites to be
developed in Phase 1 to target, by 2025, 10 times the whole
microgrid installed-base commissioned between 2015 and 2021, i.e.
30 microgrids. Therefore, by 2025 approx. 300 microgrids,
representing 20% of the 1,500 locations in which fastchargers will
be installed, will be equipped with solar power and storage. This
technical configuration will constitute real microgrids delivering
not only Vehicle-to-Grid services, but also behind-the-meter and
business continuity services to Commercial & Industrial
customers. In addition, NHOA is planning to secure the installation
of up to 10MW of storage power for each of such microgrids,
embedding the 300 microgrids with the potential of up to 3GW of
storage services, that will constitute one of the largest
Virtual-Power Plant ever developed thanks to the NHOA innovative
PROPHET Energy Management System (“Microgrid Setup”).
Funding plan
The strengthening of the capital structure of NHOA in the
context of the Masterplan 10x and the initial financing of the
Strategic Ambitions will require approx. €130 million that are
expected to be funded with the Potential Capital Increase in
context of which TCC will, as majority shareholder and subject to
internal and regulatory approvals, subscribe for its proportion of
its entitlement and, if necessary, such amount to achieve a
successful Potential Capital Increase.
In this respect, following completion of the tender offer, NHOA
is planning to convene an Extraordinary General Meeting to
consider, resolve, and approve the Potential Capital Increase. NHOA
intends to appoint Société Générale to act as Sole Global
Coordinator for the Potential Capital Increase.
Use of proceeds of the Potential Capital Increase will serve (i)
the re-capitalization of NHOA, plus (ii) funding the first phase of
GBL Atlante’s capital expenditures and the related Strategic
Ambitions. The progress of the Strategic Ambitions will depend on
the successful execution of the Potential Capital Increase.
Indeed, the development of the Atlante Network would require
significant additional resources for NHOA, and the deployment of
material capital expenditures. In this respect, NHOA’s Board of
Directors requested the management to prepare a detailed business
and funding plan for GBL Atlante before the Potential Capital
Increase.
At this stage, current analysis and preliminary assumptions of
NHOA’s management are as follows:
- over the period capital expenditures ranging between 100 and
140 thousand euros per VGI Fastcharger integrated with storage and
solar;
- utilization rate of the Atlante Network between 4% in 2022 to
15% in 2030;
- in Phase 1, the development of the Atlante Network to be funded
by NHOA’s resources, including (i) the ones arising from the New
Financing and the Potential Capital Increase which per se will
cover AtlanteCo’s 2022-2024 cash needs; and (ii) additional
resources from other potential investors including, among others,
TCC’s as key founding investor in the Atlante Network, and other
forms of debt or equity financing to be structured in line with
NHOA’s planned EBITDA growth trajectory (from EBITDA breakeven in
2022 to up to low double-digit EBITDA margin in 2025);
- in Phase 2, funding plan for the development of the Atlante
Network to benefit from expected strong cashflow generation
allowing optimized debt to equity ratio capital structures with the
potential involvement of strategic partners with equity or
equity-like instruments.
Execution strictly monitored with
quarterly Trading and Operational Updates
The new strategy implies a high level of execution risk. For
this reason, NHOA is planning to release regularly a “Trading and
Operational Update” containing a series of performance indicators
that will transparently outline the level of execution of the
Masterplan10x and Strategic Ambitions.
The first Trading and Operational Update will be released before
the Potential Capital Increase, and then regularly on quarterly
basis.
Quarterly performance indicators (unaudited) will be set
for:
- NHOA, e.g. sales, backlog and order intake, all by Global
Business Lines
- GBL Storage, e.g. shortlisted projects in pipeline, MW online
and under development
- GBL eMobility, e.g. conversion rate of wallbox and
subscriptions over the quarterly Stellantis EVs sales, total
wallbox and subscriptions outside Stellantis and manufacturing
capacity update
- GBL Atlante, e.g. utilization rate of the Atlante network,
number of sites, fastchargers and microgrids online, site pipeline
update and conversion rate.
* * *
NHOA
NHOA develops technologies enabling the global transition
towards clean energy and sustainable mobility, shaping the future
of a next generation living in harmony with our planet.
Listed on Euronext Paris regulated market (NHOA:PA), NHOA forms
part of the CAC® Mid & Small and CAC® All-Tradable financial
indices. Its registered office is in Paris, with research,
development and production located in Italy.
For further information, go to www.nhoa.energy
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Communication: Cristina Cremonesi, +39 345 570 8686,
ir@nhoa.energy
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