Core Points - Allego has launched the world's most secure Plug & Charge technology based on the OCPP 2.0.1 protocol, marking a significant advancement in electric vehicle charging solutions [1][5] - The new technology simplifies the charging process by allowing drivers to charge their vehicles without the need for apps, RFID cards, or manual interventions, enhancing user convenience [2][4] - Allego's network includes over 5,000 Fast and Ultra-fast charging points across Europe, supporting a seamless charging experience for all compatible electric vehicle models [2][7] Technology Overview - Plug & Charge utilizes ISO 15118-based authentication and payment methods, ensuring secure communication between the vehicle and charger [2][3] - The technology employs Mutual Transport Layer Security (TLS) and certificate-based authentication to protect against unauthorized access and billing errors [4][7] - OCPP 2.0.1 allows for future-proofing through remote firmware updates and secure certificate management, ensuring compatibility with new vehicle models and charging technologies [5] Company Positioning - Allego is positioned as a leader in the e-mobility industry, committed to accelerating the transition to electric mobility using 100% renewable energy [7][8] - The rollout of Plug & Charge technology is part of Allego's ongoing efforts to innovate and enhance the electric vehicle charging experience, collaborating with industry leaders such as Alpitronic, Hubject, and Ford [5][6]

Financial Performance - Allego reported a net loss of €110.3 million for the year ended December 31, 2023, and €44.6 million for 2024, with total negative equity of approximately €97.9 million as of December 31, 2024[49]. - Revenue increased from €145.5 million in 2023 to €190.1 million in 2024, indicating significant growth[50]. - The company anticipates continued operating losses in the near term, with profitability dependent on the adoption rate of electric vehicles in Europe[49]. - Allego has incurred significant net losses since inception and is expected to continue incurring losses in the foreseeable future[153]. - Allego's financial condition and results of operations are likely to fluctuate in future periods, which could cause results to fall below expectations[143]. - Allego's effective income tax rate could be adversely affected by changes in tax laws, valuation of deferred tax assets, and outcomes of tax audits[146]. - Allego's tax obligations may become more complex and subject to greater risk of examination as it expands operations into jurisdictions with less favorable tax laws[150]. Market and Growth Potential - Allego's future revenue growth will depend on increasing the number and size of its charging sites and traffic, as well as expanding its customer base[62]. - Allego's future growth is highly dependent on the rapid adoption of electric vehicles (EVs) by consumers, with the market for EVs characterized by rapidly changing technologies and competitive pricing[92]. - The European EV market benefits from government incentives such as rebates and tax credits, which significantly lower the effective price of EVs and charging stations[96]. - Allego's future growth relies on the successful rollout of public charging sites with ultra-fast charging capabilities, which is crucial for profitability[127]. - Allego's growth strategy includes expanding its public charging network and developing complementary services to increase traffic and secure long-term B2B relationships[228][231]. Operational Challenges - Allego faces risks related to the price of electricity, which could impact profitability and growth due to potential fluctuations and global increases in electricity prices[54]. - Allego's operational growth may strain employee retention and management, necessitating improvements in operational and financial controls[50]. - Allego's business is vulnerable to adverse macroeconomic conditions, which could negatively affect demand for its charging network and services[68]. - Allego's business is significantly impacted by macroeconomic conditions, including inflation and interest rate fluctuations, which could lead to reduced demand for EV infrastructure[69]. - Allego's operations are subject to risks associated with construction delays and cost overruns, which could impact revenue recognition and customer relationships[79]. - Allego's reliance on a limited number of suppliers for hardware and equipment increases risks related to supply chain disruptions and manufacturing issues[73]. - Increased demand for charging stations may not be met if Allego cannot find suitable suppliers or manufacturers, potentially hindering growth[74]. - Allego's operations depend on reliable telecom networks, and disruptions in these networks could lead to reduced demand for its charging stations and services[110]. Competition and Market Position - The EV charging market is competitive, with Allego facing challenges from various competitors, including utilities and automotive manufacturers[58]. - Allego's ability to raise additional funds may be limited due to its recent filing to terminate the registration of its shares under the Exchange Act, impacting future capital raising efforts[66]. - Allego's strategic partnerships may not materialize into long-term contracts, which could limit its ability to develop new arrangements with other partners[90]. - Allego competes with localized providers of EV charging station networks and aims to provide seamless end-to-end solutions[240][241]. Technology and Innovation - Allego's ability to develop new innovations in its software platform and keep up with hardware technologies is crucial for market adoption and financial results[97]. - Allego's proprietary software, Allamo, analyzes over 100 factors to forecast EV charging demand and optimize site selection for higher utilization rates[205]. - Allego's charging solutions are designed to be hardware agnostic, allowing flexibility in selecting optimal equipment and reducing procurement costs[213][234]. - Allego's software platform may contain defects or errors that could lead to inadequate performance and service disruptions, adversely affecting its business[118]. - Allego's technology may have undetected defects that could reduce market adoption and expose the company to product liability claims[116]. Regulatory and Compliance Risks - Allego faces risks related to compliance with privacy laws and regulations, which could limit service offerings and increase costs[162]. - The GDPR imposes penalties for non-compliance of up to €20 million or 4% of worldwide revenue, impacting Allego's business operations[164]. - Allego's reliance on third parties for compliance with environmental laws may expose the company to liabilities and increased costs[172]. - Increasing attention to ESG matters may adversely impact Allego's business and access to capital[175]. - Allego is currently assessing the impact of new ESG-related regulations, which may lead to increased compliance costs[176]. Internal Controls and Governance - Allego has identified material weaknesses in its internal control over financial reporting, which could result in material misstatements if not remediated[156]. - Allego made significant improvements in internal control over financial reporting, resolving certain previously reported Material Weaknesses[157]. - As of December 31, 2024, Allego identified one material weakness in its internal control over financial reporting, which could lead to material misstatements[158]. - Allego's management noted deficiencies in maintaining initiation controls and accuracy of reports used in the financial statement close process[159]. - The company plans to remediate the remaining material weakness throughout 2025, which may be time-consuming and resource-intensive[161]. - The company does not comply with all best practice provisions of the Dutch Corporate Governance Code, potentially affecting shareholder rights[177]. Employee and Organizational Structure - As of December 31, 2024, Allego had 292 employees, with 257 being regular full-time employees[243]. - Allego's research and development expenses were €5.3 million in 2024, €4.6 million in 2023, and €4.0 million in 2022, indicating a consistent investment in innovation[125]. - Allego's research and development team consisted of more than 8 full-time employees[236]. - The company plans to continue expanding its development team, which is essential for increasing revenue through new customer contracts[130]. Infrastructure and Operations - Allego operates more than 33,500 charging ports across over 13,600 locations in 16 countries, a decrease of more than 1,500 ports since December 31, 2023[202]. - The number of Allego's own charging ports increased from 25,600 to 26,780, reflecting a strategic shift towards prioritizing its own infrastructure[202]. - Allego's charging network includes fast, ultra-fast, and slow charging equipment, with energy sourced from renewable sources[204]. - Allego's facilities include rented locations in Belgium, Germany, Sweden, Austria, France, Denmark, and sales offices in England and Poland[242]. - The company designs the layout and specifications of its charging stations in-house, ensuring control over its product offerings[239].

Core Insights - Ascencio and Allego have formed a partnership to install 212 electric vehicle charging points across 45 sites in Belgium, enhancing Ascencio's ESG strategy and addressing local community needs [1][3] - The charging stations will feature super chargers with a power rating of up to 400 kW, allowing for quick charging in 15 to 30 minutes, thereby improving customer experience [2] - The partnership is cost-effective for Ascencio, requiring no investment from the company while adding value to its real estate portfolio [2] Company Strategies - Ascencio aims to achieve carbon neutrality in ground transportation through this partnership, making its commercial sites more attractive to customers and local residents [3] - Allego, as a leading charge point operator, has a significant presence in Belgium and Europe, leveraging partnerships with landowners like Ascencio to expand its charging network [4] Market Demand - The installation of charging points responds to the increasing demand for charging zones in strategic locations frequented by consumers, enhancing accessibility for both shoppers and passing motorists [2][4] - Retail locations on the outskirts of urban areas are identified as strategic for both drivers and retailers, facilitating increased foot traffic and shopping opportunities [4]

Core Viewpoint - Allego (NYSE: ALLG) is under investigation by Ademi LLP for potential legal violations related to its transaction with majority shareholder Meridiam, particularly concerning the tender offer and the board's conduct [1][2]. Group 1: Transaction Details - Allego shareholders will receive $1.70 in cash for each outstanding share of Allego common stock prior to the closing of the tender offer [2]. - Shareholders who do not tender their shares will remain investors in Allego after it is delisted, with Meridiam providing liquidity opportunities post-delisting [2]. - Meridiam has committed to organizing liquidity events for shareholders within 18 months after the delisting and again before December 31, 2027 [2]. Group 2: Board Conduct Investigation - The investigation focuses on whether Allego's board of directors is fulfilling their duties to all shareholders and conducting the tender offer appropriately [2]. - Allego insiders are expected to receive substantial benefits as part of the change of control arrangements [2].

Group 1 - Allego has confirmed a deal with Meridiam to acquire all outstanding shares of its stock for $1.70 each, representing a 131% premium over the previous closing price of 74 cents per share [1] - Following the tender offer, Allego will delist its shares from the New York Stock Exchange, and investors who do not tender their shares will remain investors in the delisted company [1] - Meridiam's director, Emmanuel Rotat, expressed confidence that operating as a private entity with Meridiam as the majority shareholder will position Allego for its next phase of growth [1] Group 2 - The tender offer from Meridiam is expected to close in the third quarter of the year, with no minimum shareholder or regulatory approval required [2] - As of Monday morning, ALLG stock has increased by 127.9%, with approximately 7.6 million shares traded, significantly higher than the daily average trading volume of about 447,000 shares [2]

Financial Reporting - Allego N.V. filed its report under Form 6-K for the month of May 2024[1] - The report includes a press release dated May 16, 2024, which may contain key financial data and performance metrics[2] Leadership - The report is signed by Mathieu Bonnet, Chief Executive Officer of Allego N.V.[4]

Charging Network and Market Growth - As of December 31, 2023, Allego operates over 35,000 charging ports across 16,402 locations, an increase of more than 2,000 ports since December 31, 2022[134]. - Allego's charging network includes 543 fast and 1,542 ultra-fast charging ports, with plans to accelerate growth in this segment[137]. - The European EV market is projected to require over $2.1 trillion in investment for commercial and public charging between 2023 and 2030, with an additional $9.9 billion from 2030 to 2040[134]. - Allego estimates that the European EV market will experience a 35% CAGR from 2023 to 2027, with the number of EVs expected to grow to nearly 22 million by 2026[168]. - The shift from traditional ICE vehicles to EVs in Europe is accelerating, driven by stringent regulations and urbanization, positioning Allego for significant growth[134]. Business Model and Revenue Streams - Allego's business model includes two segments: owned fast and ultra-fast public charging network and high value-add third-party services, focusing on long-term and recurring revenue[138]. - Allego's revenue streams include charging session sales and service contracts with B2B customers, contributing to its financial stability[139]. - The company targets commercial businesses and fleet operators, offering tailored charging solutions and services to meet their specific needs[146]. - Allego's EVCloud platform supports charging authorization, billing, and data analytics, enhancing operational efficiency and customer service[137]. Financial Performance - Allego's revenue for the year ended December 31, 2023, increased by €11.6 million, or 9%, to €145.5 million compared to €133.9 million in 2022[190]. - Charging sessions revenue rose by €38.0 million, or 58%, to €103.3 million in 2023, driven by a 33% increase in total energy sold from 155 GWh in 2022 to 206 GWh in 2023[194]. - The average charging price per kWh increased by 18% year-over-year, from €0.4 in 2022 to €0.5 in 2023[194]. - Allego's gross profit for 2023 was €36.2 million, a significant increase of €29.0 million, or 403%, compared to €7.2 million in 2022[190]. - Operating loss improved to €72.0 million in 2023 from €315.0 million in 2022, a reduction of €243.0 million, or 77%[190]. Cost Management and Expenditures - General and administrative expenses decreased by €224.4 million, or 69%, from €323.4 million in 2022 to €99.0 million in 2023[190]. - Allego entered into more power purchase agreements (PPAs) in 2023 to mitigate energy cost volatility, resulting in a 26% decrease in average energy cost per kWh compared to 2022[175]. - The cost of sales for the year ended December 31, 2023 decreased by €17.4 million, or 14%, to €109.3 million compared to €126.7 million for the year ended December 31, 2022[197]. Employee and Management Information - As of December 31, 2023, Allego employed 243 individuals, with 190 in full-time positions and 52 part-time[161]. - The Chief Financial Officer, Ton Louwers, will be leaving the company effective June 30, 2024[260]. - Allego's CEO, Mathieu Bonnet, received a total compensation of €4,355,000 for the fiscal year ended December 31, 2023, which includes €3,751,000 in share-based payments[265]. - The total compensation for all executive officers (excluding the CEO) amounted to €11,159,000, with €2,111,000 in base compensation and €9,012,000 in share-based compensation[269]. Governance and Corporate Structure - Allego operates as a foreign private issuer, exempt from certain provisions of the Exchange Act applicable to U.S. domestic public companies[273]. - The Audit Committee, Compensation Committee, Nominating and Corporate Governance Committee, and Strategy and Business Committee are established to oversee various aspects of governance[276]. - Allego's Board of Directors is classified into three classes, with terms expiring in 2024, 2025, and 2026, ensuring staggered elections[272]. - Allego has no current plans to pay cash dividends, and any future dividends will be at the discretion of the board of directors[303]. Risks and Future Outlook - The Group's strategy requires significant capital expenditures and investments, and it expects to continue incurring losses in the next twelve months[231]. - The Group's cash flows from operations and renewed credit facility are expected to be sufficient until December 31, 2025, despite anticipated net losses[236]. - The Group is exploring options to mitigate funding uncertainties, including obtaining additional external funding and delaying capital expenditures[236]. - Material weaknesses were identified in Allego's internal control over financial reporting, which could lead to material misstatements in consolidated financial statements if not remediated[256].

Industry Overview - The U.S. EV charging market is projected to grow nearly tenfold, from approximately 4 million charge points currently to 35 million by 2030, driven by the anticipated increase in electric vehicle (EV) adoption [1] - The number of EVs in the U.S. is expected to rise sharply to 27 million by 2030 and 92 million by 2040, compared to about 3 million in 2022 [1] - McKinsey estimates that the U.S. will require around 28 million charging ports by 2030, with private ports increasing from about 2.5 million to 27 million [1] Company Analysis EVgo (EVGO) - EVgo's stock price has fluctuated, recently pulling back to $2.16 after reaching around $3.37, showing potential for a bounce [3] - The company reported a wider loss of $0.12 per share in the recent quarter, compared to $0.06 year over year, but sales increased by 83.6% year over year to $50 million, exceeding expectations [3] - Analysts at RBC Capital upgraded EVgo to an outperform rating with a target price of $4, citing the company's favorable position in the electrification trend [3] Beam Global (BEEM) - Beam Global's stock is currently trading at $5.90, down from a peak of $8.50, and is considered a long-term buy [5] - The company is expanding in Europe and has received a U.S. patent for wireless EV charging technology, which is expected to enhance deployment efficiency [5] - Beam Global has secured contracts with federal clients, including the FDA and the Missile Defense Agency, indicating strong growth potential [5] Allego (ALLG) - Allego's stock has seen significant volatility, rising from about $0.06 to $2.11, and is currently trading at $1.13, suggesting long-term investment opportunities [6] - The company operates a network of approximately 35,000 charging stations across 16 countries and has partnered with Ford to enhance charging infrastructure in Europe [6] - Allego is also collaborating with Burger King France to install ultra-fast chargers at various locations over the next three years, further expanding its market presence [7]

Core Viewpoint - Allego N.V. has established a long-term partnership with Burger King France to expand electric vehicle (EV) charging infrastructure in France through the installation of ultra-fast chargers at various Burger King locations [1][2]. Group 1: Partnership Details - The partnership will enable the installation of ultra-fast charging stations at existing and future Burger King locations over the next three years, contingent on landowner agreements [2]. - The first charging sites are expected to be operational by Q3 2024, featuring both Allego and Burger King branding for easy recognition by drivers [2]. Group 2: Allego's Current Operations - Allego currently operates a network of 190 ultra-fast charging locations in France and is rolling out an additional 4,000 charging points across various locations, including Carrefour hypermarkets and Pathé cinemas [3]. - This expansion positions Allego as one of the largest destination charging providers in the French market [3]. Group 3: Strategic Importance - The CEO of Allego emphasized the necessity of rapidly deploying high-power chargers in convenient locations to meet the growing demand for EVs in Europe [4]. - The partnership aims to enhance accessibility and convenience for EV drivers, reinforcing Allego's position as a leading ultra-fast charging network in France [4]. Group 4: Company Overview - Allego is dedicated to accelerating the transition to electric mobility with a network of over 35,000 charging points across 16 countries, providing independent and reliable charging solutions [5]. - Founded in 2013 and publicly listed on the NYSE in 2022, Allego employs around 200 people focused on making charging accessible and sustainable [5].

Market Overview - The electric vehicle (EV) market is expected to face a downturn in 2024 due to elevated interest rates and cautious monetary policy from the Federal Reserve, despite better-than-expected economic performance and low consumer sentiment compared to pre-pandemic levels [1] - There are still compelling reasons to invest in reasonably valued EV stocks, as they are trading at attractive multiples while benefiting from ongoing secular trends pushing consumers towards electric vehicles [1] BYD (BYDDY) - BYD has emerged as the world's top EV maker in 2023, surpassing Tesla in electric vehicle sales, with 526,409 units sold in Q4 2023 compared to Tesla's 484,507 [2] - In January 2024, BYD sold 205,588 electric vehicles, marking a 33.1% year-over-year increase, although it experienced a monthly decline of over 34% [2] - The company is expanding its market presence through partnerships, including one with Qatar-based Mannai to introduce its vehicles and efforts to enhance brand awareness in Europe [2] ON Semiconductor (ON) - ON Semiconductor is a leading provider of semiconductor devices, focusing on power management and connectivity solutions, with a growing emphasis on EV-related products [4][5] - The company has faced sluggish revenue growth due to a pullback in consumer spending on electronics, but it anticipates a rebound in 2024 as demand for consumer electronics and IoT may recover [5] - ON shares are currently trading at 18.3 times forward earnings, which is below many semiconductor industry peers, presenting a potential investment opportunity [6] Allego N.V. (ALLG) - Allego is a Netherlands-based EV charging company that has established a network of over 34,000 charging points across Europe, focusing on infrastructure for electric cars and heavy-duty vehicles [7] - The company reported a 28.2% increase in revenue to €28.6 million ($30.2 million) in Q3, compared to €22.39 million ($21.8 million) year-over-year [7] - Allego's unique focus on building electric vehicle infrastructure in the EU positions it well for success as the region increasingly adopts new energy products [8]