Redelfi Board of Directors has approved half-yearly Financial Report as of June 30,2024

REDELFI BOARD OF DIRECTORS HAS APPROVED HALF-YEARLY FINANCIAL REPORT AS OF JUNE 30, 2024

PRODUCTION VALUES ARE IN DOUBLE DIGIT GROWTH AND EQUAL TO 10.4 MILLION EURO, WITH AN EBITDA MARGIN OF OVER 55%. THE FIRST SUSTAINABILITY REPORT HAS BEEN PUBLISHED AND THE DEVELOPMENT OF PIPELINE PROJECTS IN THE USA AND ITALY CONTINUES.

Consolidated interim results as of June 30, 2024:

Production Value equal to 10.4 million euro, up 148% compared to 4.2 million euro as of June 30, 2023.
EBITDA equal to 5.7 million euro, up 220% compared to 1.8 million euro as of June 30, 2023.
EBIT equal to 5.5 million euro, up 249% compared to 1.6 million euro as of June 30, 2023.
Net result equal to 3.5 million euro, up 162% compared to 1.4 million euro as of June 30, 2023.
Net Financial Position equal to 8.6 million euro compared to 4.8 million euro as of December 31, 2023

Milan, 23 September 2024

The Redelfi S.p.A. Board of Directors (“Redelfi” or the “Company”), a company at the head of its namesake industrial group with operational headquarters in Genoa – committed to the development of innovative and sustainable infrastructures to promote the energy transition, and listed on the Euronext Growth Milan segment of the Borsa Italiana, announces that it has approved the consolidated Half-Yearly Financial Report as of 30 June 2024 and its first Sustainability Report relating to the 2022 and 2023 financial years.

Davide Sommariva, Chairman of the Board of Directors of Redelfi S.p.A. commented: “The results recorded in these first six months of 2024 exceed the estimates published in the 2023-2026 Industrial Plan. Achieving an EBITDA margin of 55% represents an important corporate objective and confirms our growth recorded in this period, thanks to strategic management and targeted investments. This allows us not only to be in line with the Industrial Plan presented to the market last December, but also to continue with determination towards our business, sustainability and innovation objectives. In particular, the publication of our first Sustainability Report, together with the strengthening of initiatives to support the community, concretely demonstrates our growing commitment in the ESG
field, which we will continue to dedicate ever greater attention to.”

CONSOLIDATED ECONOMIC AND FINANCIAL RESULTS AS OF JUNE 30, 2024

The consolidated financial statements were prepared on the basis of the Company’s financial statements closed as of December 31, 2023, as well as of the companies included in the Group’s consolidation area, such as: Enginius S.r.l, RH Hydro S.r.l., Benvenuto S.r.l., Green Earth S.A., Jarions S.r.l., Adest S.r.l., CerLab S.r.l. and Dreaming Lab S.a.g.l., RCF Storage S.r.l., Redelfi Usa Corp., Bestorage S.r.l., Bright Storage S.p.A. (hereinafter “Bright Storage”), Gpa Solution S.r.l., Rec Storage S.r.l., Renueva S.p.A.

The Production Value is equal to 10.4 million euro, significantly up compared to 4.2 million euro achieved in the first half of 2023. In particular, Production Value is made up of Sales Revenues of 10.2 million euro, of which 7.7 million euro relating to the item ‘Changes in work in progress’ on order. This result is attributable for 9.1 million euro to the Green B.U. (compared to 3 million euro as of 30 June 2023), with a significant increase both in absolute and relative terms, confirming its centrality within the Redelfi Group strategy. Furthermore, this value is in line with the annual figures of the 2023-2026 Industrial Plan – see press release from 11 December 2023 – (hereinafter “2023-2026 Updated Plan”), which foresees a Production Value as of 31 December 2024 between Euro 18.0 and 18.4 million.

The EBITDA is equal to 5.7 million euro with an EBITDA Margin of 55.06%, up from 1.8 million euro and an EBITDA Margin of 42.59% as of 30 June 2023. This figure is positive when compared with the EBITDA value of the 2023-2026 Updated Plan, which foresees an EBITDA as of 31 December 2024 between 6.4 and 6.8 million euro, in particular thanks to the growth and profitability generated by the Green B.U. This increase is mainly attributable to the strengthening of Redelfi’s position in the Italian BESS market.

The EBIT is equal to 5.5 million euro, up 249% compared to 1.6 million euro in the same period of the previous year, with an EBIT Margin above 52%.

The Net Result is equal to 3.5 million euro, an increase of 1.5 million euro compared to June 30, 2023.

The Net Financial Position is equal to 8.6 million euro, an increase compared to 4.8 million euro as of December 31, 2023. This increase of approximately 4 million euro is mainly attributable to a loan with Anthilia funds and to investments in the BESS development pipelines in Italy and the USA. This value is, however, positive in comparison to the figure of the 2023-2026 Updated Plan, which foresees a value of the Net Financial Position as of December 31, 2024 between Euro 13.4 and 13.9 million.

In light of the above, the Board of Directors at Redelfi believes that the guidance of the 2023-2026 Updated Plan, approved on December 11, is still consistent with the business development forecasts for the next three years, also considering that the production of revenues in the development work is not linear in itself. Any acceleration in the coming months will be subject to various variables, some of which are external to the Company’s activity, including the timing of the public administration and the technical tables of the network operator.

SIGNIFICANT EVENTS FROM IN THE FIRST HALF OF 2024

On February 12, 2024, Redelfi and Flash S.p.A. (WRM Group) launched a joint venture through the nominal value sale of a 49% stake in the share capital of the newly established Bright Storage company. Following the sale, Bright Storage has a share capital held 51% by Redelfi and the remaining 49% by Flash. The objective of the joint venture is to develop a pipeline of stand-alone Battery Energy Storage System projects (“BESS Projects”) in Italy over a five-year period, for a total capacity of 2.8 GW.

On April 16, 2024, Redelfi signed a financing agreement for a total of 15 million euro through the Anthilia Must, Anthilia BIT III and Anthilia BIT IV Co-Investment Fund funds, delivered for 9 million as of June 30, aimed at the implementation of BESS in Italy, and in particular for the development of Bright Storage’s BESS pipeline.

On April 22, 2024, Redelfi USA Corp., 100% controlled by Redelfi, signed operating agreements with Elio Energy Group LLC for the development of an additional 2.4 GW of BESS projects in the United States. The new pipeline will be developed by the newly US-registered company Redelio Renewables LLC, in which Redelfi Corp. and Elio Group LLC each hold 50% of the shares.

On May 21, 2024, Bright Storage expanded its development target of BESS projects up to a power of 3.3 GW.

SIGNIFICANT EVENTS SUBSEQUENT TO JUNE 30, 2024

On July 11, 2024, Redelfi announced the approval of the investment budget for Redelio Renewables LLC of approximately USD 20 million, aimed at developing the BESS project pipeline, as well as the acquisition of the first 5 projects from BESS Power Corporation, in which it holds a 50% stake.

On July 17, 2024, the Company announced that in the period between July 3, 2024 and July 17, 2024 (the “Second Operating Period” of the Redelfi 2022-2025 warrants), 1,221,864 Warrants were exercised and, consequently, they were subscribed, at a price of 1.513 per share, in the ratio of 1 Conversion Share for every 2 Warrants held, n. 610,932 newly issued Redelfi shares, without nominal value, with regular enjoyment and the same characteristics as the Redelfi Ordinary Shares already in circulation. Therefore, 1,496,136 Warrants are in circulation.

On August 20, 2024, Redelfi announced the entry of Eng. Elisabetta Migone onto the Board of Directors of the subsidiary Enginius S.r.l. as Chief Executive Officer, in order to further structure the company and prepare it for a new phase of growth. Eng. Migone, as an Independent Director of Redelfi and no longer meeting the independence requirements pursuant to Art. 148 paragraph 3 of the TUF, will resign at the end of September.

On September 2, 2024, Redelfi announced the entry of Eng. Sabina Pinto as General Manager of the Group with the aim of optimizing the internal structure and specifically accelerating the development of the Green B.U. to achieve its targets set by the Group.

MANAGEMENT OUTLOOK

The Group continues its consolidation of the Green B.U., both in the US market and in the national market, in the implementation of the Updated 2023-2026 Plan – ref. cs of 11 December 2023 -. With regard to development in the national market, and in particular of the Bright pipeline, equal to 3.3 GW, the Group has begun presenting projects to the Ministry of the Environment and Energy Security with the expectation of obtaining the first authorization measures in 2026, while on American territory the development of the Redelio pipeline is proceeding (with a target of 2.4 GW) which foresees investments of a total of 20 million dollars, of which over 2 million dollars have already been made. At present, in addition to the two pipelines already mentioned, the Redelfi pipeline on national territory, equal to approximately 1 GW, and the BESS Power pipeline on American territory, equal to 1.4 GW, are also under development.

In the second half of 2024, the Group will also focus on finding a partner on both an industrial/commercial and financial level to support the growth and spin-off of the subsidiary Enginius or its product Jarions.

TREASURY SHARES

The Company currently holds 169,500 treasury shares accounting for 341,495 euro, in execution of the related authorization of the Ordinary Shareholders’ Meeting of December 23, 2022. Compared to the figure on December 31, 2023, equal to n. 247,500, the number of treasury shares has undergone a reduction of n. 78,000, sold as part of a stock option plan – ref. cs June 21, 2023.
The Company, therefore, pursuant to art. 26 of the Euronext Growth Milan Issuers’ Regulation, communicates that, from the latest results in its possession, the share capital is composed as follows:

SUSTAINABILITY REPORT 2022-2023

In parallel with the 2024 Half-Yearly Financial Report, the first Sustainability Report for the Years 2022-2023 was approved, which represents a consolidation in terms of transparency and responsibility for the Company towards the environment, the community and its stakeholders. The document outlines the activities already undertaken in favor of sustainability and the ESG (Environmental, Social and Governance) objectives of the 2030 Agenda and the short and long-term strategies that the Company has decided to pursue, in line with the central themes already inherent
in the core business.

The 2022-2023 Sustainability Report highlights the concrete results obtained by the Redelfi Group in terms of reducing environmental impact, adopting responsible business practices and supporting projects aimed at promoting social inclusion and the well-being of communities.

The 2022-2023 Sustainability Report will be made available to the public on the website www.redelfi.com, on the ESG web page.

Redelfi’s current ESG initiatives

The Group has been actively promoting and increasing its support for ESG initiatives, maintaining collaborations with Universities and supporting events and demonstrations aimed at raising public awareness to social and environmental issues, supporting young people and sports, and supporting art and culture in the area.

Redelfi provided support to the “Riviera International Film Festival” again in the 2024 edition, a film festival held in Sestri Levante, entirely dedicated to directors under 35 whose films focus on issues of social and environmental responsibility. Furthermore, the Company has consolidated its collaboration with the University of Genoa, which will allow it to provide support, knowledge and new employment opportunities to students, and its collaboration with the Municipality of Genoa, also supporting the winter and spring edition of Rolli Days, an event that involves the most important noble palaces in Genoa. The activity was carried out to provide a concrete contribution to the project of the redevelopment and revamping of the historic center of Genoa.

Redelfi also participated in the charity event “Stelle nello Sport”, donating a sum to the Fondazione Gigi Ghirotti Genova, which is involved in palliative care and home care with health, psychological and social services for patients and their families, in close collaboration with the Ligurian and National Healthcare Services.

Furthermore, the Company demonstrated its commitment to promoting gender equality in the context of encouraging equal opportunities in the world of sport, supporting the women’s football Playoff and Coppa Italia matches of the 2023/2024 season, in order to support young athletes who aspire to excel in the world of football and contribute to the growth in the women’s division of this sport at all levels.

In the sports field, in order to support and enhance talent in lesser-known sports, Enginius S.r.l. and Redelfi supported the “Snow Volleyball Festival”, which saw the participation of professional athletes in the European finals and amateurs in an open tournament.

DOCUMENTATION

The Half-Yearly Report as of June 30, 2024 will be made available to the public in accordance to the terms and methods set out in the Euronext Growth Milan Issuers Regulation, on the website www.redelfi.com, Investor Relations > Financial Statements and Reports section, as well as on the website www.borsaitaliana.it, Shares > Documents section.

This press release is available on the website www.redelfi.com, section Investor Relations > Press Releases and on www.1info.it.

***

Redelfi is the parent company of a Group active in the energy transition sector, adopting a highly innovative approach to the definition of products, services and processes paying special attention to compliance with ESG principles in corporate management. In the 2023 financial year, the Group achieved a Production Value of 11 million euro and a Net Result of 3 million euro. The Net Financial Position is cash negative for Euro 4.8 million and the Net Equity is equal to Euro 25 million.