Allego Reports Third Quarter 2023 Results; Steady Growth in Line With Projections for Year

• Third quarter 2023 revenue increased 28.2% to €28.6 million, compared to €22.3 million in the prior year period.
• Third quarter 2023 charging revenue increased 53.0% to €22.0 million, compared to €14.4 million for the three months ended September 30, 2022.
• Gross profit increased to €5.4 million compared to €(4.6) million in the prior-year-period; gross margin during the quarter was 18.9%.
• Third quarter 2023 net loss was €(43.1) million, compared to €(22.1) million in the prior-year period; Operational EBITDA was €2.6 million reflecting higher charging revenue and improved charging gross margin compared to the prior-year period loss of €(3.1) million.
• Allego recently signed two power purchase agreements (PPAs) totaling 100 gigawatt hours (GWh) of energy per year with Energy Solutions Group, the largest independent green energy producer in the Benelux region, with renewable energy sourced from a solar park that is expected to be operational in January 2024, and a wind farm that is expected to be completed in January 2025.
• In October, Allego recorded over 1 million sessions per month across its network.

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 third quarter of 2023.

Third quarter 2023 Ended September 30, 2023 Highlights

• Revenue climbed 28.2% to €28.6 million from €22.3 million in the same period of 2022.
  • Charging revenue increased 53% to €22.0 million compared to €14.4 million for the three months ended September 30, 2022. The improvement was driven by increased utilization rates, premium pricing on ultra-fast and fast chargers, and an increase of 29.2% in energy sold compared with the previous period.
  • Services revenue decreased to €6.6 million compared to €7.9 million, as the Carrefour project transitions into the operating phase.
• Gross profit grew to €5.4 million, compared to €(4.6) million in the prior-year period. This increase of €10.0 million was largely due to the growth in charging revenue and the improved margin in charging revenue. Improvements in charging revenue are the direct result of the lower energy costs through Allego’s distinctive sourcing arrangements.
• Third quarter 2023 net loss was €(43.1) million compared to the prior-year period of €(22.1) million mainly driven by non-recurring non-cash items.
• Operational EBITDA was €2.6 million, compared to the prior-year period of €(3.1) million due to higher revenue, the improved margin in charging revenue, and controlled operational SG&A.
• Allego has partnered with Go’on Gruppen, one of Denmark’s largest fueling companies, to install 168 ultra-fast charging ports, with exclusive access to all 185 of Go’on’s existing stations.
• As of September 30, 2023, the Company’s network of ultra-fast charging points rose by 103.4% compared to the same period in the previous year, demonstrating Allego’s focus on its ultra-fast charging network.
• In October 2023, Allego completed the exchange and redemption of all outstanding warrants, thereby streamlining the Company’s capital structure.

				Three Months Ended September 30						- A message from our partner -
Metrics						2023	2022	% Change
Average Utilization Rate						12.8%	11.5%	11.3%
Average Utilization Rate: Mature (installed before Jan 1, 2023)						15%	–	–
Average Utilization Rate: New (installed after Jan 1, 2023)						10.2%	–	–
Total Public Charging Ports(1)						29,710	27,248	9.0%
Recurring Users %						77%	77%	0.0%
Owned Public Charging Ports(1)						25,129	23,579	6.6%
# Owned Fast & Ultra-Fast Charging Ports(1)						1,795	1,357	32.3%
Third-Party Public Charging Ports(1)						4,581	3,669	24.9%
Total # Sessions (‘000)(2)						2,626	2,170	21.0%
Total Energy Sold (GWh)						47.8	37.0	29.2%
Secured Backlog (sites)(1)						1,571	1,270	23.7%

(1)	As of September 30, 2023, and September 30, 2022, respectively
(2)	Total # sessions include owned and third party

2023 Outlook

Revised Full-Year Guidance Range:

• Energy Sold: 215 GWh – 220 GWh
• Total Revenues: €180 – €185 million
• Operational EBITDA: €30 – €35 million

CEO and CFO Comments and Outlook

Allego’s Chief Executive Officer, Mathieu Bonnet, commented, “We continue to operate in-line with our growth plans for 2023 as we saw charging revenue increase in the quarter, which, helped drive positive operational EBITDA for the fourth consecutive quarter as expected. We observed robust demand for our charging network, highlighted by an 11.3% increase in average utilization rates. More importantly, mature chargers show steady utilization during the quarter of 15%, a 24% increase compared to prior period, which indicates the reliability of our network and the loyalty of Allego customers. We believe the additional power purchase agreements we signed will help mitigate input cost volatility and enable stronger, more defensible margins on a go-forward basis. In the near-term, we are laser focused on growing our base of installed chargers and positioning the business on high and improved gross margin.”

Mr. Bonnet continued, “From a commercial standpoint, we announced a new partnership with Go’on, one of Denmark’s largest fueling companies, where we have exclusivity on 185 locations throughout the country, and are expecting to deploy fast and ultra-fast charging ports across over 60 locations between now and fourth quarter 2024. We also saw growth in our markets in the UK, Spain, France, and Germany. For the latter, we were one of several recipients of a tender, as part of the Deutschlandnetz initiative, to commission 48 new ultra-fast charging locations in North Rhine-Westphalia. Overall, I am again very pleased with our progress in the quarter as we continue to see strong demand for our charging network as EV penetration continues to increase steadily in Europe.”

Allego’s Chief Financial Officer, Ton Louwers, said, “I am pleased with our continued charging revenue growth as the deployment of our network is supported by strong utilization rates. Our proprietary Allamo tool enables us to review and find the highest ROI sites and is a key differentiator for Allego in our ability to expand our network and profitably. During the quarter, as expected, we saw lower services revenue as the Carrefour project transitions into the operating phase.

Mr. Louwers added, “Looking to the fourth quarter, we expect charging revenue to further increase as the build out of the network continues and we see utilization rates improving further. Services revenue is expected to substantially increase driven by the scheduled start of new projects. We therefore have confidence in our operational EBITDA guide as €30-€35 million.”

Key Financials

(in €‘mm)			Three Months Ended Sept 30
			2023	2022	% Change
Charging Revenue			22.0	14.4	53%
Services Revenue			6.6	7.9	-16.5%
Total Revenue			28.6	22.3	28.2%
Net Loss			-43.1	-22.1
Operational EBITDA			2.6	(3.1)

Conference Call Information

Allego will hold a conference call for investors at 8:00 AM Eastern Time today, Tuesday, November 14, 2023, to discuss its results for the third quarter of 2023.

Participants may access the call at 1-844-826-3033, international callers may use 1-412-317-5185 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 November 28, 2023. Participants may access the replay 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 10184216. 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 30,000 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 200 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