Exhibit 99.1

 

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Allego Reports Third Quarter 2022 Results Demonstrating Strong Execution and Development Activities

 

   

Third quarter 2022 revenues increased 105.0% over the prior year period to €22.3 million, largely driven by a doubling of charging and services revenues.

 

   

Total energy sold was 37.0 gigawatt hour (GWh), an increase of 81.0% over the prior-year period.

 

   

Total number of charging sessions were 2.2 million, 36.6% higher compared to 1.6 million in the prior-year period.

 

   

Third quarter 2022 average utilization rate1 increased to 11.5% from 6.6%.

 

   

Signed 10-year power purchase agreement (PPA), which is expected to begin January 1, 2023, with a major European independent renewable power producer in Germany for 25 gigawatt hours (GWh), to drastically lower and stabilize the impact of commodity price volatility.

 

   

Implemented substantial price increases to minimize margin impact; price hikes in January, September and October of this year.

 

   

Strong commercial activities with multiple contracts and locations signed. Backlog of ultra-fast charging ports increased by 24% in the quarter to approximately 8,400 charging ports on 1,270 sites, compared to the prior-year period.

ARNHEM, Netherlands – November 14, 2022 – Allego N.V. (“Allego” or the “Company”) (NYSE: ALLG), a leading pan-European public electric vehicle fast and ultrafast charging network, today announced its results for the third quarter of 2022.

Total revenues increased 105.0% to €22.3 million for the three months ended September 30, 2022, compared to €10.9 million in the prior-year period. Charging revenues grew 107.7% to €14.4 million. The improvement was driven by an increase in charging sessions of 2.2 million, as well as price increases to offset input costs.

Services revenue increased 102.6% to €7.9 million, compared to €3.9 million for the three months ended September 30, 2021. Services revenue was driven by the Carrefour project, which as expected, was second half of 2022 weighted and is expected to accelerate during the fourth quarter of 2022. Allego increased substantially its backlog of signed contracts ready to be rolled out with a backlog of sites reaching 1,270 premium sites representing around 8,400 ultrafast charging ports that will serve its customers.

Allego’s total energy sold in the third quarter was 37.0 GWh, which marked an increase of 81.0% over the same period in 2021. The energy sold was 100% green energy. During the third quarter, utilization rate increased by 74.5% to reach 11.5%.

Net loss for the three months ended September 30, 2022 was € (18.7) million, which was largely a reflection of the volatility in the energy markets. Net loss for the three months ended September 30, 2021 was € (80.5) million, largely driven by non-recurring, non-cash share based payments.

 

1 

Utilization rate, a key performance measure, is defined as the number of charging sessions per charge point per day divided by a maximum number of charging sessions per charger per day of 50 (for the ultra-fast charging pole).


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Operational EBITDA was € (4.2) million compared to € (1.8) million for the three months ended September 30, 2021. Operational EBITDA was adversely affected by €6.7 million of higher energy costs, partly offset by the benefits from an increase of €1.9 million from charging prices and higher income of €2.4 million from the sale of carbon credit certificates. The price increase of around 15% on average, effective October 7, 2022, and the first power purchase agreements (“PPA”) starting January 1, 2023, are expected to moderate the impact of higher energy input costs going forward.

CEO and CFO Comments and Outlook

Allego’s Chief Executive Officer, Mathieu Bonnet, stated “I am pleased with the progress we continue to make as we near the end of our first fiscal year as a public company. The Carrefour project remains on track and has entered the second phase of the development process, as we are currently installing more than 310 new ultrafast charging ports. We have signed new important contracts all around Europe representing more than 1,800 ultrafast charging ports to be installed. As we expand and develop more sites across more jurisdictions, we believe we are very well positioned to maintain and advance our pivotal role in Europe’s EV charging infrastructure that is accelerating.”

Bonnet continued, “I am pleased to report that we have signed our first 10-year PPA with a European independent renewable power producer in Germany for 25 GWh. Sourced through a solar farm, the electricity provides our customers with 100% green energy, effective January 1, 2023. PPAs will enable us to lock in very attractive, long-term energy prices, meaningfully reducing our exposure to increases in commodity prices. As previously announced, our goal is to hedge approximately 80% of our energy input costs by 2023 by executing long-term, low-cost power contracts based on renewable power assets. The agreement represents a first step in that strategy that we are aiming to accelerate over the next months.”

Allego’s Chief Financial Officer, Ton Louwers, commented, “Our multi-pronged approach of signing PPAs, price increases, minimizing supply chain disruptions by proactively managing our European supplier partnerships, and the natural hedge that we have from income from the sale of certificates (or carbon credits) generated from the sale of green energy, has significantly reduced the risk of margin contraction to earnings. We expect to benefit from all the steps we have taken thus far and believe we are on track to achieve our long-term revenue and growth targets.”

Financial Summary:

The summary financial highlights for the three months ended September 30, 2022 are provided below:

 

   

Total revenues: €22.3 million

 

   

Gross Profit: €1.8 million

 

   

Net Loss: €(18.7) million

 

   

Operational EBITDA: €(4.2)million

 

   

Cash Flow from Operations: €(112.3) million


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Key Metrics

 

     Three Months Ended
September
 30,
       

Metrics(1)

   2022     2021     % Change  

Average Utilization Rate

     11.5     6.6     74.5

Public Charging Ports(2)

     27,248       26,837       1.5

# Fast & Ultra-Fast charging sites(2)

     940       755       24.5

# Fast & Ultra-Fast charging ports(2)

     1,357       1,057       28.4

Owned Public Charging Ports(2)

     23,579       21,743       8.4

Third-Party Public Charging Ports(2)

     3,669       5,094       -28.0

Total # sessions (‘000)

     2,170       1,589       36.5

Total Energy sold (GWh)

     37.0       20.5       80.6

Secured Backlog (sites) (2)

     1,270       500       154.0

 

(1)

Includes Mega-E for all periods.

(2)

As of September 30, 2022 and September 30, 2021, respectively.

Guidance:

2022 Full Year Guidance Range:

 

   

Total Revenues: €135.0 million - €155.0 million

 

   

Energy Sold: 150 GWh – 160 GWh

 

   

Operational EBITDA: Positive

Conference Call Information

Allego will hold a conference call for investors at 8:30 AM Eastern Time today, Monday, November 14, 2022, to discuss its results for the quarter ended September 30, 2022. Participants may access the call at 1-877-407-9716, international callers may use 1-201-493-6779 and request to join the Allego earnings call. A live webcast will also be available at https://ir.allego.eu/events-publications.

A telephonic replay of the call will be available shortly after the conclusion of the call and until Monday November 28, 2022. Participants may access the replay 1-844-512-2921, international callers may use 1-412-317-6671and enter access code 13733903. An archived replay of the call will also be available on the investor portion of the Allego website at https://ir.allego.eu/.

About Allego

Allego delivers charging solutions for electric cars, motors, buses, and trucks, for consumers, businesses, and cities. Allego’s end-to-end charging solutions make it easier for businesses and cities to deliver the infrastructure drivers need, while the scalability of our solutions makes us the partner of the future. Founded in 2013, Allego is a leader in charging solutions, with an international charging network comprising approximately 34,000 public and private charging ports operational throughout the pan-European market – and proliferating. Our charging solutions are connected to our proprietary platform, EV-Cloud, which gives our customers and us a full portfolio of features and services to meet and exceed market demands. We are committed to providing independent, reliable, and safe charging solutions, agnostic of vehicle model or network affiliation. At Allego, we strive every day to make EV charging easier, more convenient, and more enjoyable for all.


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Forward-Looking Statements

All statements other than statements of historical facts contained in this press release are forward-looking statements. 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 Securities Litigation Reform Act of 1995. Forward looking statements may generally be identified by the use of words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,”, “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “target” or other similar expressions (or the negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, without limitation, Allego’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. Most of these factors are outside Allego’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) changes adversely affecting Allego’s business, (ii) the price and availability of electricity, (iii) the risks associated with vulnerability to industry downturns and regional or national downturns, (iv) fluctuations in Allego’s revenue and operating results, (v) unfavorable conditions or further disruptions in the capital and credit markets, (vi) Allego’s ability to generate cash, service indebtedness and incur additional indebtedness, (vii) competition from existing and new competitors, (viii) the growth of the electric vehicle market, (ix) Allego’s ability to integrate any businesses it may acquire, (x) Allego’s ability to recruit and retain experienced personnel, (xi) risks related to legal proceedings or claims, including liability claims, (xii) Allego’s dependence on third-party contractors to provide various services, (xiii) Allego’s ability to obtain additional capital on commercially reasonable terms, (xiv) the impact of COVID-19, including COVID-19 related supply chain disruptions and expense increases, (xv) general economic or political conditions, including the armed conflict in Ukraine and (xvi) other factors detailed under the section entitled “Risk Factors” in Allego’s filings with the Securities and Exchange Commission. The foregoing list of factors is not exclusive. If any of these risks materialize or Allego’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Allego presently does not know or that Allego currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Allego’s expectations, plans or forecasts of future events and views as of the date of this press release. Allego anticipates that subsequent events and developments will cause Allego’s assessments to change. However, while Allego may elect to update these forward-looking statements at some point in the future, Allego specifically disclaims any obligation to do so, unless required by applicable law. These forward-looking statements should not be relied upon as representing Allego’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.


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FINANCIAL INFORMATION; NON-IFRS FINANCIAL MEASURES

Some of the financial information and data contained in this press release, such as EBITDA and Operational EBITDA, have not been prepared in accordance with Dutch generally accepted accounting principles, United States generally accepted accounting principles or the International Financial Reporting Standards (“IFRS”). We define (i) EBITDA as earnings before interest expense, taxes, depreciation and amortization and (ii) Operational EBITDA as EBITDA further adjusted for reorganization costs, certain business optimization costs, lease buyouts, and transaction costs. Allego believes that the use of these non-IFRS measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Allego’s financial condition and results of operations. Allego’s management uses these non-IFRS measures for trend analyses, for purposes of determining management incentive compensation and for budgeting and planning purposes. Allego believes that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing Allego’s financial measures with other similar companies, many of which present similar non-IFRS financial measures to investors. Management does not consider these non-IFRS measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-IFRS financial measures is that they exclude significant expenses and income that are required by IFRS to be recorded in Allego’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-IFRS financial measures. In order to compensate for these limitations, management presents non-IFRS financial measures in connection with IFRS results, and reconciliations to the most directly comparable IFRS measure are provided in this press release.

Interim condensed consolidated statement of profit or loss for the nine months ended September 30, 2022 and 2021 (unaudited)

 

(in €‘000)

   2022     2021  

Revenue from contracts with customers

    

Charging sessions

     38,398       17,940  

Service revenue from the sale of charging equipment

     19,331       6,577  

Service revenue from installation services

     11,145       4,683  

Service revenue from operation and maintenance of charging equipment

     2,378       2,105  

Service revenue from consulting services

     1,759       —    

Total revenue from contracts with customers

     73,011       31,305  

Cost of sales (excluding depreciation and amortization expenses)

     (61,758     (21,458

Gross profit

     11,253       9,847  

Other income

     13,155       12,402  

Selling and distribution expenses

     (2,369     (1,893

General and administrative expenses

     (300,381     (232,833

Operating loss

     (278,342     (212,477

Finance costs

     12,767       (11,144

Loss before income tax

     (265,575     (223,621

Income tax

     (216     (597

Loss for the period

     (265,791     (224,218

Attributable to:

    

Equity holders of the Company

     (265,588     (224,218

Non-controlling interests

     (203     —    


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Interim condensed consolidated statement of profit or loss for the three months ended September 30, 2022 and 2021 (unaudited)

 

(in €‘000)

   2022     2021  

Revenue from contracts with customers

    

Revenue from charging sessions

     14,404       6,934  

Service revenue from the realization of charging equipment

     889       2,251  

Service revenue from installation services

     5,181       990  

Service revenue from operation and maintenance of charging equipment

     556       712  

Service revenue from consulting services

     1,289       —    

Total revenue from contracts with customers

     22,319       10,887  

Cost of sales (excluding depreciation and amortization expenses)

     (20,548     (7,753

Gross profit

     1,771       3,134  

Other Income

     4,168       9,850  

Selling and distribution

     (672     (751

General and administrative

     (21,522     (88,812

Operating loss

     (16,255     (76,579

Finance costs

     (2,406     (3,883

Loss before income tax

     (18,661     (80,462

Income taxes

     (54     —    

Loss for the period

     (18,716     (80,462

Attributable to:

     —      

Ordinary equity holders of the Company

     (18,674     (80,462

Non-controlling interests P&L

     (41     —    

Basic and diluted earnings per ordinary share (in €‘000)

     1       —    

Loss for the period

     (18,716     (80,462

Exchange differences on translation of foreign operations

     (3     22  

Income tax related to these items

     —         —    

Other comprehensive loss that may be reclassified to profit or loss, net of tax

     (3     22  

Other comprehensive loss for the year, net of tax

     (3     22  

Total comprehensive loss for the year

     (18,718     (80,440

Attributable to:

     —      

Ordinary equity holders of the Company - Other comprehensive income

     (18,677     (80,440

Non-controlling interests - Other comprehensive income

     (40     —    


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Interim condensed consolidated statement of financial position as at September 30, 2022 (unaudited) and December 31, 2021

 

(in €‘000)

   September 30, 2022     December 31, 20212  

Assets

    

Non-current assets

    

Property, plant and equipment

     147,343       41,544  

Intangible assets

     21,796       8,333  

Right-of-use assets

     43,886       30,353  

Deferred tax assets

     571       570  

Other financial assets

     54,215       19,582  

Total non-current assets

     267,811       100,382  

Current assets

    

Inventories

     29,134       9,231  

Prepayments and other assets

     26,089       11,432  

Trade and other receivables

     40,102       42,077  

Contract assets

     9       1,226  

Other financial assets

     —         30,400  

Cash and cash equivalents

     16,306       24,652  

Total current assets

     111,640       119,018  

Total assets

     379,451       219,400  

Equity

    

Share capital

     32,062       1  

Share premium

     369,851       61,888  

Reserves

     3,663       4,195  

Retained earnings

     (326,644     (142,736

Equity attributable to equity holders of the Company

     78,932       (76,652

Non-controlling interests

     1,139       —    

Total equity

     80,071       (76,652

Non-current liabilities

    

Provisions and other liabilities

     1,094       133  

Borrowings

     166,448       213,129  

Lease liabilities

     41,209       26,096  

Deferred tax liabilities

     1,272       —    

Total non-current liabilities

     210,023       239,358  

Current liabilities

    

Trade and other payables

     46,704       29,333  

Contract liabilities

     11,061       21,192  

Current tax liabilities

     295       401  

Lease liabilities

     6,834       5,520  

Provisions and other liabilities

     1,004       248  

Borrowings

     11,521       —    

Warrant liabilities

     6,087       —    

Other financial liabilities

     5,851       —    

Total current liabilities

     89,357       56,694  

Total liabilities

     299,380       296,052  

Total equity and liabilities

     379,451       219,400  

 

 

2 

Consolidated statement of financial position as at December 31, 2021 audited.


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Interim condensed consolidated statement of cash flows for the nine months ended September 30, 2022 and 2021 (unaudited)

 

(in €‘000)

   2022     2021  

Cash flows from operating activities

    

Loss before income tax

     (265,575     (223,621

Adjustments to reconcile loss before income tax to net cash flows:

    

Finance costs

     8,657       11,110  

Fair value (gains)/losses on derivatives (purchase options)

     (3,856     (8,110

Fair value (gains)/losses on Public and Private warrant liabilities

     (22,312     —    

Share-based payment expenses

     242,090       200,025  

Depreciation, impairments and reversal of impairments of property, plant and equipment

     9,902       5,388  

Depreciation and impairments of right-of-use of assets

     4,827       1,957  

Amortization and impairments of intangible assets

     3,221       1,998  

Net (gain)/loss on disposal of property, plant and equipment

     (1     (87

Movements in working capital:

    

Decrease/(increase) in inventories

     (19,902     (4,731

Decrease/(increase) in other financial assets

     12,257       (2,563

Decrease/(increase) in trade and other receivables, contract assets and prepayments and other assets

     (28,253     (12,096

Increase/(decrease) in trade and other payables and contract liabilities

     (33,828     30,889  

Increase/(decrease) in provisions and other liabilities

     (108     (325

Cash generated from/(used in) operations

     (92,881     (166

Interest paid

     (5,522     (2,934

Income taxes paid

     (343     (237

Net cash flows from/(used in) operating activities

     (98,746     (3,337

Cash flows from investing activities

    

Acquisition of Mega-E, net of cash acquired

     (15,884     —    

Acquisition of MOMA, net of cash acquired

     (58,733     —    

Purchase of property, plant and equipment

     (24,972     (9,649

Proceeds from sale of property, plant and equipment

     196       412  

Purchase of intangible assets

     (1,241     (2,062

Proceeds from investment grants

     371       1,708  

Payment of purchase options derivative premiums

     —         (1,500

Net cash flows from/(used in) investment activities

     (100,263     (11,091

Cash flows from financing activities

    

Proceeds from borrowings

     50,000       29,863  

Payment of principal portion of lease liabilities

     (4,544     (1,877

Payment of transaction costs

     (925     (45

Proceeds from issuing equity instruments (Spartan shareholders)

     10,079       —    

Proceeds from issuing equity instruments (PIPE financing)

     136,048       —    

Net cash flows from/(used in) financing activities

     190,658       27,941  

Net increase/(decrease) in cash and cash equivalents

     (8,351     13,513  

Cash and cash equivalents at the beginning of the period

     24,652       8,274  

Effect of exchange rate changes on cash and cash equivalents

     5       (5

Cash and cash equivalents at the end of the period

     16,306       21,782  


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Reconciliation of Loss for EBITDA and Operational EBITDA for the three months ended September 30, 2022 and 2021 (unaudited)

 

(in €‘000)

   2022      2021  

Loss for the period

     -18,716        -80,462  

Income tax

     54        —    

Finance costs

     2,406        3,882  

Amortization and impairments of intangible assets

     765        692  

Depreciation and impairments of right-of-use assets

     1,875        997  

Depreciation, impairments and reversal of impairments of property, plant and equipment

     3,756        1,928  

EBITDA

     -9,860        -72,963  

Fair value (gains)/losses on derivatives (purchase options)

     —          -7,880  

Share-based payment expenses (share-based payment arrangements)

     779        78,093  

Share-based payment expenses (related to the Transaction)

     —          —    

Transaction costs

     898        918  

Business optimization costs

     3,261        —    

Reorganization

     699        48  

Operational EBITDA

     -4,223        -1,784  

Historical Key Metrics

 

Metrics(1)

   2020     1Q21     2Q21     3Q21     4Q21     2021     1Q22     2Q22     3Q22  

Average Utilization Rate

     3.5     4.5     5.0     6.6     7.4     5.9     7.7     9.2     11.5

Public Charging Ports(2)

     21,922       23,384       25,767       26,837       27,982       27,982       28,838       29,698       27,248  

# Fast & Ultra-Fast Charging Sites(2)

     710       731       748       755       831       831       872       903       940  

# Fast & Ultra-Fast Charging Ports(2)

     943       967       1018       1057       1215       1215       1225       1293       1357  

Recurring Users %

     82     82     81     78     78     80     80     80     77

Owned Public Charging Ports(2)

     18,006       18,945       20,868       21,743       22,716       22,716       23,469       24,255       23,579  

Third-Party Public Charging Ports(2)

     3,916       4,439       4,899       5,094       5,266       5,266       5,369       5,443       3,669  

Total # Sessions (in, 000)

     3,701       1,162       1,389       1,589       1,980       6,120       2,139       2,305       2,170  

Total Energy Sold (GWh)

     48.0       15.9       17.7       20.5       28.6       82.7       32.1       37.8       37.0  

Secured Backlog (sites)(2)

     NA       NA       500       500       800       800       800       1,100       1,270  

 

(1)

Includes Mega-E for all periods.

(2)

As of the end of the period presented.

Contact:

Investors

investors@allego.eu

Media

allegoPR@icrinc.com