ALOKW Groupe Okwind SA

•  1st half 2023: strong improvement in the Company's profitability with EBITDA at €4.7 million (vs. -€0.1 million in H1 2022)
  • EBITDA rate of 12.5% in H1 2023, a level already exceeding the annual target
  • Positive contribution from all business lines
• 3rd quarter 2023: another quarter of hypergrowth and business outlook confirmed
  • Revenue of Q3 2023 of €17.7 million, up by +93% vs. Q3 2022
  • Increase in backlog1 to €45.9 million at September 30, 2023, vs. €30.6 million at September 30, 2022
  • Groupe OKwind is perfectly positioned to capture growth in new promising markets: water and sanitation, agrisolar, industrial sites, local authorities
• 2023 and 2026 financial targets confirmed
  • 2023: revenue of at least €85 million and consolidated EBITDA rate above 12%
  • 2026: revenue of €175 million and consolidated EBITDA rate of around 20%

Regulatory News:

Groupe OKwind (FR0013439627 - ALOKW) (Paris:ALOKW), which is specialized in the design, manufacture and sale of smart energy generation and management systems dedicated to self-consumption, today announces its results for the first half of 2023, ended June 30, 2023, approved by the Board of Directors on October 16, 2023, and its revenue for the 3rd quarter of 2023.

Louis MAURICE, Founder and Chairman of Groupe OKwind, says: "Groupe OKwind once again delivered a solid performance with another quarter of strong growth and a sharp improvement in the Company's profitability. The hypergrowth phase we have been experiencing for several quarters has been coupled with rigorous cost management, enabling us to outperform our annual profitability target right from the first half. The first half of the year was also marked by the strengthening of our position in new growth markets, water and sanitation and agrisolar, where Groupe OKwind is clearly identified as a must-have partner. We have many projects currently under study, which are real growth drivers for 2024 and beyond. On the basis of these achievements, we confirm all our short- and medium-term financial targets".

Simplified income statement as of June 30, 2023

In €k

30/06/2023

30/06/2022

Change in €k

Revenue

37,536

13,500

24,036

of which BtoB

33,528

11,561

21,967

of which BtoC

4,008

1,939

2,069

Other operating income

987

1,186

(199)

Purchases consumed

(19,634)

(6,675)

(12,959)

Personnel costs

(6,841)

(4,202)

(2,639)

Other operating expenses

(7,169)

(3,783)

(3,386)

Taxes

(184)

(129)

(55)

EBITDA

4,696

(102)

4,798

Net changes in depreciation and amortization

(871)

(626)

(245)

Operating profit

3,824

(729)

4,553

Financial expenses and incomes

(157)

(285)

128

Non-recurring expenses and incomes

(96)

(7)

(89)

Income tax

(739)

167

(906)

Net income (group share)

2,832

(854)

3,686

In the first half of 2023, Groupe OKwind experienced a period of strong activity.

Half-year revenue thus reached €37.5 million, up +178% compared with June 30, 2022, and breaks down as follows:

- 89% of revenue from the BtoB segment: €33.5 million, up +190%, - 11% of revenue from the BtoC segment: €4.0 million, up +107%.

Over the course of the first half of 2023, the Group control its costs in a context of inflation and hypergrowth. Staff costs have risen, following the structuring of teams to support the Company's hypergrowth momentum. Groupe OKwind now has 200 employees, compared with 139 a year earlier.

Other operating expenses amounted to €7.2 million, vs. €3.8 million in H1 2022, as a result of the sharp increase in Groupe OKwind's activity and is mainly related to subcontracting, equipment rental as well as transport costs.

After taking these items into account, EBITDA2 at June 30, 2023, improved significantly to €4.7 million. The EBITDA rate for the first half of 2023 has reached 12.5%, exceeding the 2023 objective set over 12%.

Cash position as of June 30, 2023

At June 30, 2023, the Group's cash position stood at €9.3 million, compared with €13.9 million at December 31, 2022. This change can be best explained by:

- the strengthening of working capital requirement while the Company is experiencing a phase of hypergrowth; - continued investment in R&D to enhance technology leadership; - investment in Osmosun through Convertible Bonds for €0.75 million.

Commercial activity for the 3rd quarter of 2023

Firm orders booked since January 1st of the current fiscal year, consolidated at the end of September 2023, are up sharply to €60.3 million, compared with €47.3 million in September 2022 (+27.5%). As a result, the backlog at September 30, 2023, stood at €45.9 million, compared with €30.6 million at September 30, 2022.

At September 30, 2023, revenue increased by +145% to €55.3 million, compared with €22.5 million a year earlier.

2023 first half and post-closing highlights

• Strengthening of the partnership with Purecontrol

The aim is to accelerate the deployment of Groupe OKwind's self-consumption solutions in the water and sanitation market, both in France and Europe;

• Signing of a strategic collaboration agreement with OSMOSUN® and subscription to the company's capital on the occasion of its IPO

Development of technological and commercial synergies with the aim of positioning itself in the water treatment and brackish water desalination markets;

Development strategy and outlook

Groupe OKwind has maintained a solid sales momentum, demonstrating its ability to cope with this phase of hypergrowth while improving its bottom-line profitability.

The Company has thus accelerated its development across all its business lines and laid the foundations for future growth by diversifying its offering into new growth markets such as agrisolar as well as water and sanitation.

Backed by a robust business model and a rapidly expanding backlog, Groupe OKwind confirms all its financial objectives for 2023 and 2026.

Availability of the 2023 half-year financial report

The half-year financial statements were approved by the Board of Directors and reviewed on October 16, 2023. The 2023 half-year financial report will be available by October 31, 2023, on the Investor Relations website (www.okwind-finance.com), in the Documentation section.

About Groupe OKwind

Founded in 2009 by Louis Maurice, Chairman and CEO, Groupe OKwind develops solutions for the production and consumption of green energy in short supply chains. Our comprehensive approach, combining energy generation and management, aims to strengthen energy autonomy and thus accelerate the ecological transition. Thanks to its unique technological ecosystem, Groupe OKwind enables self-consumption to assert itself as a new avenue for energy. A solution that can be quickly deployed, managed in real time and at a competitive price, without subsidies. Every day, we work to deploy local, low-carbon, fixed-cost energy for professionals and individuals. In 2022, Groupe OKwind generated consolidated revenues of €41.8 million and today has 200 employees, with more than 3,500 installations throughout France.

For more information: www.okwind.fr

APPENDICES

Consolidated income statement by nature

In €k

06/2023

06/2022

Change. in %

Revenue

37,536

13,500

+178%

Other operating income

987

1,186

-17%

Purchase and consumables used

(19,634)

(6,675)

+194%

Personnel costs

(6,841)

(4,202)

+63%

Other operating expenses

(7,169)

(3,783)

+90%

Taxes

(184)

(129)

+43%

EBITDA

4,696

(102)

n.a

Net changes in depreciation and amortization

(871)

(626)

+39%

Operating profit

3,824

(729)

n.a

Financial income and expenses

(157)

(285)

-45%

Non-recurring incomes and expenses

(96)

(7)

n.a

Income tax

(739)

167

n.a

Net income (group share)

2,832

(854)

n.a

Earnings per share (in €)

0.34

(0.13)

- n.a

Cash-flow statement

In €k

06/2023

12/2022

06/2022

Net income of the consolidated group

2,832

2,199

(854)

Total cash-flow

3,687

3,156

(349)

Change in inventories related to operations

(2,517)

(3,548)

(1,550)

Change in receivables related to operations

(10,581)

(8,729)

(368)

Change in operating liabilities

5,166

8,484

2,584

Net cash flow from operating activities

(4,245)

(636)

317

Acquisition of fixed assets

(2,502)

(3,188)

(1,728)

Disposal of fixed assets

42

45

12

Net cash flow from investing activities

(2,460)

(3,143)

(1,716)

Capital increase (reduction)

-

17,339

-

Bond issuance

426

6,882

5,341

Loan repayments

(1,121)

(3,165)

(2,104)

Net change in medium-term investments

(1,000)

(8,000)

-

Net change in bank overdrafts

3,840

1,850

1,850

Net cash flow from financing activities

2,145

14,906

5,088

Change in cash and cash equivalents

(4,599)

11,127

3,689

Closing cash position3

9,294

13,853

6,415

Consolidated balance sheet

Assets (in €k)

06/2023

12/2022

Intangible assets

10,407

9,715

Property, plant and equipment

1,864

1,680

Financial assets

2,509

1,724

Investments in associates

213

213

Total fixed assets

14,994

13,333

Inventory and work in progress

7,840

5,323

Trade receivables and related accounts

30,224

19,949

Other receivables and accruals

2,740

2,372

Marketable securities

9,000

8,000

Cash and cash equivalents

9,643

13,853

Total Assets

74,441

62,830

Liabilities (in €k)

06/2023

12/2022

Equity

8,261

8,232

Premiums related to capital

15,582

15,582

Retained earnings and consolidated net income

7,783

5,276

Total shareholders’ equity

31,626

29,090

Provisions

386

249

Borrowings and financial liabilities

21,936

18,164

Accounts payable and related accounts

10,052

6,212

Other liabilities and accruals

10,441

9,115

Total Liabilities

74,441

62,830

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1 The backlog corresponds to orders for which a purchase order has been signed, some of which are invoiced on delivery and the remainder on commissioning of the trackers. 2 Using the subtractive method, EBITDA is obtained by adding depreciation and provisions, net of write-backs, to operating income. 3 Cash and cash equivalents 9643 k€ and bank overdrafts -349 k€ (within Borrowings).

View source version on businesswire.com: https://www.businesswire.com/news/home/20231016018810/en/

Groupe OKwind Investor Relations investors@okwind.fr

NewCap Mathilde Bohin / Thomas Grojean Investor Relations okwind@newcap.eu T.: +33 (0)1 44 71 94 94

NewCap Nicolas Merigeau Media Relations okwind@newcap.eu T.: +33 (0)1 44 71 94 98