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]

Financial Performance - Total revenue from contracts with customers for Q3 2023 was €28.607 million, a 28.4% increase from €22.320 million in Q3 2022[3] - Gross profit for Q3 2023 was €5.403 million, compared to a gross loss of €4.566 million in Q3 2022[3] - Operating loss for the nine months ended September 30, 2023, was €57.015 million, significantly improved from €278.345 million in the same period of 2022[3] - Loss for the period for Q3 2023 was €43.118 million, compared to €21.498 million in Q3 2022, indicating a 100.5% increase in losses year-over-year[6] - Total comprehensive loss for Q3 2023 was €38.483 million, compared to €24.326 million in Q3 2022[6] - For the nine months ended September 30, 2023, the company reported a loss of €81,829,000, compared to a loss of €268,269,000 for the same period in 2022, indicating a significant reduction in losses[12] - Total comprehensive loss for the nine months ended September 30, 2023, was €83,611,000, compared to €271,130,000 for the same period in 2022, reflecting improved financial performance[12] Assets and Liabilities - Total assets as of September 30, 2023, were €440.369 million, slightly up from €437.659 million as of December 31, 2022[8] - Non-current liabilities increased to €376.045 million as of September 30, 2023, from €318.223 million at the end of 2022[8] - Cash and cash equivalents decreased to €28.829 million from €83.022 million since the end of 2022[8] - Equity attributable to equity holders of the Company was negative €49.336 million as of September 30, 2023, down from positive €27.013 million at the end of 2022[8] - As of September 30, 2023, total equity was reported at €(48,826,000), a decrease from €70,430,000 as of September 30, 2022, reflecting ongoing financial challenges[12] - The Group's total available credit facility was increased to €400,000 thousand, with €77,390 thousand remaining undrawn as of September 30, 2023[29] - The Group's borrowings increased to €312,160 thousand as of September 30, 2023, compared to €269,033 thousand at December 31, 2022[26] Cash Flow and Investments - Cash generated from operations for the nine months ended September 30, 2023, was a negative €32,914,000, an improvement from a negative €89,640,000 in 2022[14] - The company incurred net cash flows used in investing activities of €45,739,000 for the nine months ended September 30, 2023, compared to €88,421,000 in 2022, indicating reduced investment outflows[14] - Investments in property, plant, and equipment amounted to €43,070 thousand for the nine months ended September 30, 2023, down from €116,590 thousand in the same period of 2022, reflecting a decrease of approximately 63%[80] - The carrying amount of property, plant, and equipment increased to €157,509 thousand as of September 30, 2023, compared to €134,718 thousand at December 31, 2022, marking an increase of about 17%[79] Share-Based Payments - The company reported share-based payment expenses of €81,184,000 for the nine months ended September 30, 2022, which is a significant cost impacting overall financial results[12] - The total fair value of the share-based payment arrangement as of September 30, 2023 is estimated at €49,958 thousand, an increase from the grant date value of €32,250 thousand[50] - Share-based payment expenses for the three months ended September 30, 2023 amounted to €15,028 thousand, compared to a gain of €421 thousand for the same period in 2022[52] - The Group recognized total share-based payment expenses of €21,551 thousand for the nine months ended September 30, 2023, significantly up from €2,187 thousand in the same period of 2022[52] Financing and Capital Structure - The company has relied heavily on funding from bank financing and equity issuance to support its growth strategy, including a €400 million facility agreement to enhance financial stability[25] - The Group recorded an impairment loss of €321 thousand for the nine months ended September 30, 2023, down from €678 thousand in the same period of 2022, indicating a reduction of about 53%[82] - The issued share capital increased to €32,142 thousand as of September 30, 2023, from €32,061 thousand at December 31, 2022, reflecting a growth of approximately 0.25%[84] Future Outlook and Strategy - The company expects to continue incurring losses in the next twelve months, typical for the industry as it expands its EV charging network[25] - The Group's liquidity forecasts indicate sufficient cash flow to fund expected outflows for the next 12 months, despite the need for additional financing for long-term growth[30] - The Group's liquidity management policy includes maintaining sufficient cash and committed credit facilities, with undrawn borrowing facilities of €77,390 thousand as of September 30, 2023[134] Risk Management - The Group's management oversees financial risk management, supported by the Finance department, with no significant changes compared to the previous period[122] - The Group's exposure to equity securities price risk is mitigated by monitoring quarterly valuation updates and forecasts of future cash flows[129] Warrants and Share Exchange - As of September 30, 2023, the Group had 13,799,948 public warrants outstanding, with no private placement warrants[143] - On October 3, 2023, the Group completed an exchange offer, issuing 2,996,918 ordinary shares for 13,029,838 public warrants tendered[143] - The remaining 770,110 public warrants were exchanged for 159,712 ordinary shares, effective October 18, 2023[143]

Financial Data and Key Metrics Changes - In Q3 2023, total revenue increased by 28.2% to EUR28.6 million, compared to EUR22.3 million in Q3 2022, driven by strong charging revenue growth [8][18] - For the nine months ended September 30, 2023, revenue was EUR96.8 million, a 33% increase over the prior-year period of EUR73 million [8] - Charging revenue increased by 53% to EUR22 million during the quarter, compared to EUR14.4 million in the same period in 2022 [8][18] - Operational EBITDA improved to EUR2.6 million for Q3 2023, compared to a loss of EUR3.1 million in the prior year period [20] Business Line Data and Key Metrics Changes - Revenue from sales and services for Q3 2023 was EUR6.6 million, down from EUR7.9 million in the prior period, primarily due to lower Carrefour project work [11][19] - Total energy sold for the nine months of 2023 was over 144.2 gigawatt hours, with Q3 alone accounting for 47.8 gigawatt hours, compared to 37 gigawatt hours in the prior year [11] Market Data and Key Metrics Changes - The global number of charging stations increased by 21% to 2.6 million from 2.2 million in the prior year period [8] - The European market has over 18% fully battery electric vehicle penetration in Q3 2023, with the EV fleet expected to expand from 6.5 million to 12.6 million by 2025 [17] Company Strategy and Development Direction - The company is shifting its focus from sales and service revenue to charging revenue, which is reflected in the strong growth of charging revenue [8] - The company signed two new 10-year power purchase agreements to secure a steady supply of 100 gigawatt hours of energy annually, supporting its commitment to sustainable mobility [12][13] - A strategic partnership with Go'on was established to enhance electric charging services accessibility in Denmark [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the revised guidance for 2023, expecting annual revenue between EUR180 million and EUR185 million and operational EBITDA between EUR30 million and EUR35 million [15][23] - The company anticipates continued strong demand for charging services due to the growing EV market and robust utilization rates [15][17] Other Important Information - The company reported a net loss of EUR43.1 million for Q3 2023, compared to a net loss of EUR22.1 million in the same period of 2022, primarily due to increased finance costs and non-cash SG&A expenses [21] - Cash and cash equivalents totaled EUR28.8 million as of September 30, 2023, down from EUR83 million a year earlier, mainly due to capital expenditures [22] Q&A Session Summary Question: Discussion on Q4 expectations and service revenue - Management indicated that Q4 is expected to see a significant increase in service revenue due to ongoing large projects, including Carrefour in Germany, with recognition occurring in this quarter [28] Question: Clarification on full-year guidance adjustments - The guidance was adjusted to the lower end due to delays in the Carrefour project and late grid connections affecting charger installations [29] Question: Inquiry about price increases and market share - Management confirmed that price increases implemented in 2022 were effective in H1 2023, but a 15% price decrease was initiated in H2 to enhance market share and utilization [31]

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Allego N.V. (NYSE:ALLG) Q2 2023 Earnings Conference Call August 15, 2023 8:30 AM ET Company Participants Rachel Richardson – Director-Investor Relations and Corporate Communications Mathieu Bonnet – Chief Executive Officer Ton Louwers – Chief Financial Officer Conference Call Participants Matt Summerville – D.A. Davidson Gabe Daoud – TD Cowen Operator Greetings. Welcome to Allego First Half 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follo ...

Allego, a leading European public EV fast-charging network Advancing green electrification First Half 2023 Earnings Presentation Disclaimer Forward Looking Statements All statements other than statements of historical facts contained in this presentation are forward-looking statements. Allego N.V. (“Allego”) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securit ...