Redelfi's Board of Directors approves results as of 31 December 2023: strong growth in all key indicators

Read the press release in PDF format here (in Italian)

REDELFI BOARD OF DIRECTORS APPROVES RESULTS AS OF 31 DECEMBER 2023: STRONG GROWTH IN ALL MAJOR INDICATORS

–Production Value at EUR 11 million, up 142% from EUR 4.5 million as of Dec. 31, 2022 and higher than the guidance of the 2023-2026 Business Plan
– EBITDA at EUR 5.1 million up 200% from EUR 1.7 million as of Dec. 31, 2022, with EBITDA margin at 46.3 % (37.3 % in 2022)
– EBIT of EUR 4.6 million, up 301% from EUR 1.1 million as of Dec. 31, 2022
– Net income at EUR 3.0 million, up significantly from EUR 0.3 million as of 31.12.2022
– Net financial position of EUR 4.8 million, up from EUR 0.6 million as of 31.13.2022 but lower than the guidance in the 2023-2026 Business Plan
– BESS development activities in Italy and the U.S. and the implementation of the Business Plan continue

Milan, March 25, 2024
Redelfi S.p.A. (“Redelfi” or the “Company”), the parent company of the industrial group of the same name with operational headquarters in Genoa – engaged in the development of innovative and sustainable infrastructures to promote the energy transition, and listed on the Euronext Growth Milan segment of the Italian Stock Exchange – approved the consolidated financial statements and the financial draft statements for the year as of 31 December 2023 to be submitted to the Shareholders’ Meeting called for on April 24, 2024. Davide Sommariva, Chairman of the Board of Directors of Redelfi S.p.A. commented, “We are very pleased with the presented results and our growth in this past year, which exceeded the estimates published in December 2023. These numbers demonstrate not only the Group’s strong motivation to achieve the goals set in the 2023-2026 Business Plan, but also our strong ambition to consolidate Redelfi’s position as a primary player in the international stand-alone Battery Energy Storage System market, making our Green Business Unit increasingly central.”

Consolidated financial results as of December 31, 2023
The consolidated financial statements were prepared on the basis of the Company’s financial statements for the year ending December 31, 2023 as well as companies within the Group’s scope of consolidation, such as: Enginius S.r.l., RH Hydro S.r.l., Benvenuto S.r.l., Green Earth SA, 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 Corp., Bestorage S.r.l., Bright Storage S.r.l., Gpa solution S.r.l., Rec Storage S.r.l. Production Value amounted to EUR 11 million, up sharply (+142%) from EUR 4.5 million as of December 31, 2022. This value is also higher in comparison with the figure in the 2023-2026 Business Plan – see press release from Dec. 11, 2023 – (hereinafter referred to as “2023-2026 Updated Plan”), which projected a Production Value as of December 31, 2023 between EUR 10.3 million and EUR 10.5 million. In terms of business units, the significant increase in the Green BU is noted, with revenues rising from EUR 2.0 million as of Dec. 31, 2022 to EUR 8.5 million as of Dec. 31, 2023, and the increase in the MarTech BU with revenue which increased from EUR 1.7 million as of 12.312022 to EUR 2.2 million as of 12.31.2023. Other income amounted to EUR 0.2 million as of 12.31.2023. Consolidated Production Value includes a value of EUR 7.3 million relating to the item Change in contract work in progress, mainly referring to Green BU and attributable to activities related to the agreement signed with a British fund for the sale of 930 MW of BESS facilities. Revenues from sales and services, within the statutory financial statements, amounted to EUR 2.9 million are mainly attributable to the consulting activities provided by the Martech BU’s subsidiaries.

EBITDA (Gross Operating Margin) is EUR 5.1 million, up +200% from EUR 1.7 million at the close of the previous fiscal year, with an EBITDA Margin of 46.3% (37.3% as of 12.31.2022), higher than the figure in the 2023-2026 Updated Plan, particularly due to the performance of the Green BU, with higher profitability, which projected an EBITDA value as of December 31, 2023 to be between EUR 4.7 million and EUR 4.9 million.
In light of the above, Redelfi’s Board of Directors considers the guidance in the Updated Plan 2023-2026, approved on Dec. 11, still consistent with business development forecasts over the next three years and therefore did not anticipate further updates of the same, which are thus confirmed.

EBIT was EUR 4.6 million, up 301% from the previous year (EUR 1.1 million) with Ebit margin of 41.9% (25.2% as of 12.31.2022).

Net income amounted to EUR 3.0 million (including EUR 2.2 million attributable to the Group) after taxes amounting to approximately EUR 1.3 million, with significant growth compared to the net income of EUR 0.3 million as of 31.12.2022.

Net Financial Position stood at EUR 4.8 million, up from EUR 0.6 million as of 31.12.2022 as a result of the bond loan underwritten by Anthilia on April 14, 2023 and the investments made during the year. However, this value appears to be improving in comparison with the
figure from the 2023-2026 Updated Plan, which projected a Net Financial Position value as of 31 December 2023 between EUR 5.6 million and EUR 5.8 million.

Economic and financial results of Redelfi S.p.A. as of December 31, 2023
Production Value, amounting to EUR 4.1 million (EUR 2.8 million as of 12.31.2022)
EBITDA amounted to EUR 1.2 million (EUR 1.6 million as of 12.31.2022)
Net income is EUR 0.6 million (EUR 0.5 million as of 12.31.2022)
Net Financial Position is EUR 4.3 million (22 thousand cash positive as of 12.31.2022)
Proposed allocation of profit for the year of Redelfi S.p.A.
The Board of Directors resolved to propose to the Shareholders’ Meeting to allocate the year’s profit, amounting to EUR 568,335, legal reserve EUR 28,417 euros to retained earnings EUR 539,918.

Significant events that occurred during the year

The main events are summarized below:
– On January 11, 2023, BESS Power Corporation (“BESS Power”), a 65% subsidiary of RAL Green Energy Corp. – a company equally owned by Redelfi and Altea Green Power S.p.A. -, finalized the purchase of a stand-alone Battery Energy Storage System (“BESS”) project through the acquisition of 100% of the share capital of the relevant special purpose vehicle, under American law, Lund Storage Center 1 LLC (hereinafter referred to as “Lund Storage” or “Lund Storage Project”). BESS Power purchased the Lund Storage Project from the U.S.-based developer Aelius Solar Corp. at the price of USD 500,000, plus an earn out of USD 20,000/MW authorized, which will be paid upon the sale of the same project to third-party investors. The Lund Storage Project, under more advanced development, goes to augment BESS Power’s current pipeline, which includes an additional 200 MW in the preliminary development stage. Under this contract, BESS Power will hold preliminary projects for about 600 MW out of a total planned pipeline of 1.4 GW.

– On April 5, 2023, Redelfi sold, through its Swiss-registered subsidiary Green Earth S.A., a 49.37% stake in Piano Green S.r.l. to Santagata 1907 S.p.A., former founder of the itself, thus allocating all resources to the Green Business Unit, i.e. for the development of BESS and the establishment of Renewable Energy Communities.

– On April 14, 2023, Redelfi signed a loan agreement for EUR 5 million with Anthilia Capital Partners for the development of the Green Business Unit.

– On June 27, 2023, the process of studying the connection of the Lund Storage Project began, under Bess Power, called the Full Interconnection Study, with the collaboration of the operator of independent Texas system ERCOT (Electric Reliability Council of Texas Inc.) and the operator of American public service LCRA (Lower Colorado River Authority). Lund Storage has obtained the confirmation of the maximum capacity of 407.55 MW, thus being one of the largest BESS projects currently under development on Texas soil. The network operator thus confirmed the validity of BESS Power’s first pipeline project.

– On July 6, 2023, the subsidiary CerLab Srl signed a framework agreement with the company under Swiss law Raviero S.A. The agreement is for the purchase of projects provided with every permit required for the construction and operation of photovoltaic systems on the flat roofs of residential and industrial buildings, to be used to serve Renewable Energy Communities in the Italian territory. The target set is about 60 MW of projects, to be built and put into provision to Energy Communities.

– On July 17, 2023, the first exercise period of the “2022 – 2025 Redelfi Warrants” closed with the exercise of no. 42,000 Warrants and the subsequent underwritting, at a price of EUR 1.375 per share, in the ratio of no.1 (one) Conversion Share for every no. 2 (two) Warrants held, of no. 21.000 newly issued Redelfi shares with a total value of EUR 28,875.00. As of the current date no. 2,718,000 Warrants are in circulation.

– On August 21, 2023, BESS Power signed a financing agreement with Leyline Renewable Capital L.L.C. for the amount of up to EUR 15 million, to be allocated to to the implementation of the BESS stand-alone pipeline in the U.S.

– On October 4, 2023, Redelfi signed a term sheet with Flash S.r.l. (“Flash”), part of the WRM Group, concerning the establishment of a joint venture for the joint development of stand-alone BESS projects in Italy with a target of 2.8 GW over a five-year period and on October 31, Bright Storage S.p.A. (“Bright Storage”) was established at implementation of the term sheet.

– On October 30, 2023, Redelfi announced the acquisition of 100% of the company GPA Solution S.r.l. by the Italian-registered company TZU S.r.l. with the ultimate goal of implementing the development activity of stand-alone BESS in Italy, to ensure the achievement of the ambitious planned development target from the agreement concluded with the WRM Group, mentioned in the previous point.

– On December 11, 2023, the update of the 2023-2026 Business Plan was presented.
Significant events after the end of the fiscal year

On February 12, 2024, the joint venture with Flash, part of the WRM Group, was launched, through the completion of the sale at nominal value of a 49% equity interest of the company Bright Storage and the signing of the relevant shareholders’ agreements. Following the divestment, Bright Storage is currently 51% owned by Redelfi and the remaining 49% by Flash. As part of the closing, the Development Service Agreement was also signed between Redelfi and Bright Storage – see press release dated Oct. 4, 2023 -, under which Redelfi will provide its technical expertise to the partnerships. The goal of the joint venture is to develop a pipeline of stand-alone BESS projects in Italy over five years, with a total minimum capacity of 2.8 GW. Such an agreement allows the Group to obtain constant and incremental revenue during the development phase that will ensure that the related costs are covered.

Foreseeable development of management
The Group’s activities for 2024 will continue with the expansion of the Green Business Unit through BESS projects, both in the United States and Italy, in implementation of the 2023-2026 Business Plan (cf. release press on December 11, 2023 and presentation available at www.redelfi.com Investor relations section> Presentations, which specifically provides:

– The achievement of BESS Power’s target of 2.4 GW;
– The increase of Redelfi’s presence in the US market by an additional 2 GW;
– The completion of Italy’s first pipeline with a total capacity of about 1 GW;
– The development of the second Italian pipeline with total capacity of 2.8 GW.

As a result, the Redelfi Group is making an increasing commitment focused on its Green Business Unit, consistent with the Group’s own historical roots and current results, which report an imbalance of revenue and marginality toward the same business unit. Definition of quantitative and qualitative significance criteria of relationships potentially relevant to the purposes of assessing independence under Art. 6- bis of the Euronext Growth Milan’s Issuers’ Regulations.

In order to comply with the recent changes to the Euronext Growth Milan’s Issuer’s Regulations (“EGM Issuers’ Regulations”) set forth in the Borsa Italiana S.p.A. notice no. 43747 from November 17, 2023, which entered into force on December 4, 2023 with particular reference to the provisions contained in Art. 6-bis, related to the appointment of the independent director, given the elimination of the burden placed on the
to Euronext Growth Advisor of assessment of the independence requirements of candidates for the office of independent director of all companies already admitted to the EGM market, the Board of Administration has, among other things, noted the need to repeal the “Procedure for Submitting to Euronext Growth Advisor the independent director’s assessment” previously adopted by the Company. Therefore, in compliance with the provisions of Article 6-bis of the EGM Issuers’ Regulations, now in effect, aligned with the regulations currently in place for companies listed on the regulated market, remains on Redelfi’s Board of Directors to assess whether the requirements of independence after appointment and once a year thereafter, based on information provided by the person concerned or at the disposal of the Company itself. To this end, the Board of Directors approved as of today’s date the quantitative and qualitative criteria to be taken into account in order to carry out this annual assessment (the “Policy”), which will be valid until the expiration of the current term, and verified the existence of these criteria in the current Independent Director of Redelfi.

The Policy is available on the Company’s website at www.redelfi.com under the Investor Relations Section >Corporate documents.

Calling of Ordinary Meeting and Documentation
The Board of Directors resolved to convene the Ordinary General Meeting of Shareholders on the 24th April 2024, in a single convocation, at the places and in the manner to be announced in the relevant notice of convocation, which will be published within the time limits prescribed by the applicable rules and regulations. Documents related to the items on the agenda will be made available to the public at the headquarters company and on the website www.redelfi.com (Investor Relations section > Shareholders’ Meeting), as well as on the website
internet www.borsaitaliana.it (Actions section > Documents) within the time limits prescribed by current regulations.

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

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Redelfi is the parent company of the Redelfi Group active in the digital and green transition by taking a highly innovative approach to defining products, services and processes with a strong focus on adherence to ESG principles in business management. Following the 2023 half-year financial report, the Group achieved a Production Value of EUR 4.2 million and Net Income of EUR1.4 million. The Net Financial Position amounted to EUR 3 million and the Shareholders’ Equity amounted to EUR 11 million.

Redelfi’s Board of Directors approves results as of 31 December 2023: strong growth in all key indicators

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