Allego(US:ALLG)2024-05-15 22:36Charging 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].