Allego Reports Solid First-Half 2023 Results

• First half 2023 revenue increased 34.6% to €68.2 million, compared to €50.7 million in the prior year period.
• First half 2023 charging revenue was up by €27.1 million, or 113.1%, to €51.1 million compared to €24.0 million for the six months ended June 30, 2022.
• First half 2023 net loss was €(38.9) million, compared to €(247.1) million in the prior-year period.
• Operational EBITDA was €11.7 million increasing steadily compared to the prior-year period loss of €(1.5) million.
• Allego entered into a long-term agreement with Esso Deutschland through 2028 to sell compliance credits for a potential total value of up to €185 million.
• In a first-of-its-kind collaboration, Allego is partnering with gas station brand OIL! Tank & Go in Denmark to equip its 80 stations of which 14 charging sites are expected to be fully operational and added to the Company’s network in the first quarter of 2024.

ARNHEM, Netherlands–(BUSINESS WIRE)–Allego N.V. (“Allego” or the “Company”) (NYSE: ALLG), a leading pan-European public electric vehicle fast and ultra-fast charging network, today announced its results and key performance metrics for the first half of 2023.

First Half 2023 Ended June 30, 2023

• Revenue climbed 34.6% to €68.2 million from €50.7 million in the same period of 2022.
  • Charging revenue was up by €27.1 million, or 113.1%, to €51.1 million compared to €24.0 million for the six months ended June 30, 2022. The improvement was driven by a mix of increased utilization rates, premium pricing on ultra-fast and fast chargers, and an increase of 37.9% in energy sold compared with the previous period.
  • Services revenue decreased to €17.1 million compared to €26.7 million, completely driven by the expected phasing out of the Carrefour project compared to the first half of 2022 and before the start-up of new projects in H2 2023.
• Gross profit grew to €20.5 million, compared to €2.3 million in the prior-year period. This increase of €18.2 million was primarily driven by an expansion in gross profit on charging revenue of €21.7 million, partly offset by a decrease of €3.5 million in services revenue gross margin. This shift towards charging revenue from service revenue is in line with Allego’s business strategy.
• First half 2023 net loss was €(38.9) million compared to the prior-year period of €(247.1) million; Operational EBITDA was €11.7 million, compared to the prior-year period of €(1.5) million. The strong improvement in the first half 2023 net results was primarily driven by a substantial decrease in non-cash one-time items related to the New York Stock Exchange listing and an improved operational performance on the charging revenue.
• As of June 30, 2023, the Company’s network of ultra-fast charging points rose by 107% compared to the same period in the previous year, demonstrating Allego’s focus on its ultra-fast charging network.

1. As of June 30, 2023, and June 30, 2022, respectively
2. Total # sessions include owned and third party

2023 Outlook

Full-Year Guidance Range:

• Energy Sold: 215 GWh – 225 GWh
• Total Revenues: €180 – €200 million
• Operational EBITDA: €30 – €40 million

CEO and CFO Comments and Outlook

Allego’s Chief Executive Officer, Mathieu Bonnet, commented, “I am pleased with our performance through the first half of 2023. We have focused on the expansion of our ultrafast charging network while increasing our charging revenue. We have significantly improved our operational EBITDA performance by growing our margins through our execution of power purchase agreements (PPAs), the management of our energy costs globally and the efficiency of our operations. Our consolidated utilization rate climbed from the prior year, indicating the growing market for EVs as well as the quality of our premium locations. The average utilization rate, adjusted for chargers installed during 2023, was 13.4%, demonstrating that the more mature chargers are continuing to develop well.”

Mr. Bonnet continued, “We continue to execute our business strategy through agreements such as the one with Esso in Germany whereby we generate revenue from selling our compliance credits from the renewable energy that is consumed through our charging network, further improving our unit economics in Germany. As communicated before, the majority of our network’s renewable energy will be sourced through the PPA’s completing what we believe to be is a virtuous and beneficial circle for all our stakeholders. As we look ahead to the second half of the year, we anticipate robust utilization rates and charging revenue growth as we expand our operational footprint.”

Allego’s Chief Financial Officer, Ton Louwers, said “I am very pleased with our financial performance for the first six months of 2023. In line with our strategy, we see a strong growth in our charging revenue on the back of the build out of the ultra-fast charging network. As a result, our gross profit increased substantially to €20.5 million, compared to €2.3 million in the prior-year period. Combined with a stable development of our SG&A (adjusted for one-offs) we saw our Operational EBITDA grow by €13.2 million to €11.7 million, compared to a loss of €(1.5) million in the prior-year period.”

Mr. Louwers added, “The optimization in our working capital management has illustrated our progress to a more steady and stable operational state. We expect to see a further increase in our inventory, anticipating a further ramp-up of our ultra-fast charging network.

We anticipate a sustained growth trajectory for the full year. We have narrowed our guidance revenue range to between €180 million and €200 million, while maintaining our Operational EBITDA expectations to be between €30 million and €40 million. We anticipate the energy sold for the year to be between 215 GWh and 225 GWh.”

Conference Call Information

Allego will hold a conference call for investors at 8:30 AM Eastern Time today, Tuesday, August 15, 2023, to discuss its results for the second quarter of 2023.

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 August 29, 2023. Participants may access the replay 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 13739126. 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 is a leading provider of electric vehicle charging solutions, dedicated to accelerating the transition to electric mobility with 100% renewable energy. Allego has developed a comprehensive portfolio of innovative charging infrastructure and proprietary software, including its Allamo and EV Cloud software platforms. With a network of almost 35,000 charging points (and counting) spanning 16 countries, Allego delivers independent, reliable, and safe charging solutions, agnostic of vehicle model or network affiliation. Founded in 2013 and publicly listed on the NYSE in 2022, Allego now employs a team of 220 people striving every day to make charging accessible, sustainable, and enjoyable for all.

For more information, please visit www.allego.eu.

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 and other energy sources, (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) data security breaches or other network outage, (xiv) Allego’s ability to obtain additional capital on commercially reasonable terms, (xv) Allego’s ability to remediate its material weaknesses in internal control over financial reporting, (xvi) the impact of COVID-19, including COVID-19 related supply chain disruptions and expense increases, (xvii) general economic or political conditions, including the Russia/Ukraine conflict or increased trade restrictions between the United States, Russia, China and other countries, and (xviii) 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.

Interim condensed consolidated statement of profit or loss for the six months ended June 30, 2023 and 2022 (unaudited)
(in €‘000)		2023			2022
					(restated)(1)
Revenue from contracts with customers
Charging sessions		51,139			23,994
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