H1 2021 Preliminary Results

15 September 2021

NHOA FIRST HALF 2021 PRELIMINARY RESULTS1

• In H1 2021 NHOA confirmed its growth trend in terms of revenues, backlog and pipeline despite global restrictions for Covid-19 and related delays in project development and execution. However, the world has been affected dramatically by the ongoing supply chain disruption, with no exception for NHOA. As of today, NHOA is confirming the clear trajectory towards the achievement of the 2021 and 2022 revenues guidance.

• Revenues and Other Income increased by 44% with respect to H1 2020, including non-recurring income related to the Vehicle-to-Grid project with Stellantis.

• Backlog2 increased by 88% compared to September 2020, and together with the Contracts Secured3 amount to €149 million.

• During H1 2021 NHOA has devoted significant costs and time to the incorporation of the Joint Venture with Stellantis, and the acquisition related to the major shareholder change, which are one-time and non recurring events.

Revenues and Other Income amount to €7.2 million, including €1 million of non-recurring income related to the Vehicle-to-Grid project with Stellantis, as of 30 June 2021, up 44% compared to First Half 2020. The increase in Revenues and Other Income is mainly driven by the €4.9 million revenues realized by the eMobility Global Business Line (“GBL”) which became fully operational in May after the completion of the Joint Venture (“JV”) between NHOA and Stellantis dedicated to eMobility activities: Free2Move eSolutions. The Energy Storage GBL €2.3 million Revenues and Other Income, were partially affected by Covid-19 related logistic restrictions that challenged construction schedules. Nonetheless, NHOA has been able to realize the Factory Acceptance Test for a 10 MWh system in Massachusetts, and complete the test run of the Sol De Insurgentes solar-plus-storage project in Mexico. Other Income is mainly driven by the recognition of the non-recurring €1 million contribution related to the development of the Vehicle-to-Grid project with Stellantis. The 26% Gross margin including such non-recurring item is mainly driven by revenues mix, and is partially affected by set up cost of the eMobility GBL. The gross margin excluding this non-recurring income amounts to €0.9 million, i.e. 14%.

Backlog and Contracts Secured totalize €149 million, represented by 700 MWh in U.S.A., Europe and Africa. Backlog amounts to €45 million, up by 88% compared to the Backlog communicated on 24 September 2020, with over 90 MWh between California, Massachusetts, Vermont and Italy. Contracts Secured amount to €104 million, thanks to more than 600 MWh of projects secured in Guam and Hawaii with ENGIE.

Pipeline4 in the Energy Storage GBL5 increases by 6% over the same period, reaching €835 million, thanks to the rapid market acceleration we experienced across all key geographies particularly in North America, Europe and Asia Pacific.

Personnel costs increased by 55% reaching €5.7 million compared to €3.7 million in First Half 2020, in line with the increase in headcount, increased by 63% over the period. As of 30 June 2021, NHOA has 179 employees, from 19 nationalities. The strengthening of the workforce is in line with NHOA’s roadmap following the Masterplan 10x and mainly devoted to the execution of the projects in USA, APAC and the ramp-up of the eMobility GBL.

R&D investments amount to €1.6 million and represent 27% of the consolidated Revenues, confirming the strong commitment towards R&D and innovation, which is progressively addressed also towards the eMobility GBL.

Other Operating Expenses increased by 17% amounting to €1.6 million, compared to €1.4 million in the first semester 2020 expressing a physiological growth in this specific moment of the company.

EBITDA including non recurring income represents a €5.5 million loss in the first semester 2021 compared to a €4.4 million loss in the first semester 2020, due to the increase in operating expenses and in personnel costs, which more than offset the increase in revenues. This is a natural effect of the investments that NHOA made in terms of people and industrial footprint (just partially offset by low revenues/gross margin generated as of H1 2021) in order to carry forward the industrial base needed to execute the €149 million Backlog and Contracts Secured.

Non recurring expenses and Incentive Plan account for €2.6 million and €4.8 million respectively, both items being affected by the extraordinary transactions performed during the period: such as the closing of the JV with Stellantis and post-closing relevant events, essentially the closing between ENGIE and TCC, implying an acceleration on SARs plan.

EBIT and Net Result as of 30 June 2021 stand, respectively, at €-15.8 million and €-15.9 million compared to €-6.5 million and €-6.5 for the previous year.

Net Financial Position at the end of the first semester 2021 stands at €-24.7 million compared to €-21.3 million on 31 December 2020.

* * *

**

1.1 Consolidated Income Statement

CONSOLIDATED INCOME STATEMENT
(amounts in Euro)
30/06/2021 31/12/2020 30/06/2020
Revenues 6.052.300 10.798.205 4.914.240
Other Income including non-recurring 1.145.868 253.596 111.887
TOTAL REVENUES AND OTHER INCOME (including non-recurring income) 7.198.168 11.051.801 5.026.127
Cost of goods sold (5.337.029) (7.221.152) (3.690.491)
GROSS MARGIN FROM SALES (including non-recurring income) 1.861.139 3.830.649 1.335.636
% on Revenues and other income 25,9% 34,7% 26,6%
Personnel costs (5.735.830) (7.774.565) (3.703.950)
Other operating expenses (1.645.346) (2.937.171) (1.406.757)
Other costs for R&D and industrial operations (1) 0 (1.543.425) (610.141)
EBITDA excluding Stock Option and Incentive Plans expenses, including non -recurring income (2) (5.520.036) (8.424.511) (4.385.212)
Amortization and depreciation (2.815.237) (3.325.887) (1.291.930)
Impairment and write down (56.348) (1.509.491) (196.061)
Non-recurring income and expenses and Integration costs (2.642.690) (569.535) (142.226)
Stock options and Incentive plans (4.771.255) (824.790) (513.025)
EBIT (15.805.568) (14.654.215) (6.528.455)
Net financial income and expenses (54.459) (90.791) 39.481
Income Taxes (15.776) (69.540) (31.291)
NET INCOME (LOSS) (15.875.803) (14.814.545) (6.520.264)
Attributable to:
Equity holders of the parent company (15.463.596) (14.814.545) (6.520.264)
Non-controlling interests (412.206) 0 0
Basic earnings per share (1,21) (1,16) (0,51)
Weighted average number of ordinary shares outstanding 12.766.860 12.766.860 12.766.860
Diluted earnings per share (1,21) (1,16) (0,51)
(1) Other costs for R&D and industrial operations have been reclassified to cost of goods sold in 2021. It is defined in notes 4.5 of Consolidated Financial Statement.
(2) EBITDA excluding Stock Option and Incentive Plans expenses is not defined by IFRS. It is defined in notes 3.8 and 4.6 of Consolidated Financial Statement.

1.2 Consolidated Statement of Other Comprehensive Income

OTHER COMPREHENSIVE INCOME
(amounts in Euro)
** 30/06/2021 31/12/2020 30/06/2020
NET INCOME (LOSS) (15.463.596) (14.814.545) (6.520.264)
Exchange differences on translation of foreign operations and other differences 0 0 (2.739)
Other comprehensive income not to be reclassified to profit or loss in subsequent periods (net of tax) 0 (1.323) 7.714
Actuarial gain and (losses) on employee benefits 218.120 (193.087) (64.945)
Other comprehensive income (loss) for the year, net of tax 218.120 (194.410) (59.970)
Total comprehensive income for the year, net of tax (15.245.477) (15.008.955) (6.580.235)
Attributable to Equity holders of the parent company ** (15.245.477) (15.008.955) (6.580.235)

**

1.3 Consolidated Balance Sheet

ASSETS
(amounts in Euro)
30/06/2021 31/12/2020 30/06/2020
Property, plant and equipment 3.744.415 2.521.277 2.860.550
Intangible assets 8.750.510 9.272.391 8.120.705
Investments in entities accounted using the equity method 9.445 9.445 996
Other non-current financial assets 4.890.346 190.346 168.346
TOTAL NON CURRENT ASSETS 17.394.716 11.993.458 11.150.597
Trade and other receivables 9.950.093 11.639.388 4.068.586
Contract assets 344.311 1.068.083 7.226.231
Inventories 2.803.845 1.988.444 3.218.163
Other current assets 3.609.388 2.502.356 3.266.872
Current financial assets 8.174.213 467.500 459.219
Cash and cash equivalent 9.082.310 3.930.868 3.773.701
TOTAL CURRENT ASSETS 33.964.160 21.596.638 22.012.772
TOTAL ASSETS 51.358.876 33.590.096 33.163.369
EQUITY AND LIABILITIES
(amounts in Euro)
30/06/2021 31/12/2020 30/06/2020
Issued capital 2.553.372 2.553.372 2.553.372
Share premium 48.147.696 48.147.696 48.147.696
Other Reserves 4.623.788 4.399.167 4.529.648
Retained Earnings (66.947.590) (52.139.663) (52.953.882)
Profit (Loss) for the period before Revaluation of European Investment Bank warrants liabilities (IFRS 2) (15.463.596) (14.814.546) (6.520.264)
TOTAL GROUP EQUITY (27.086.331) (11.853.975) (4.243.431)
Minorities interest 20.187.793 0 0
TOTAL EQUITY (6.898.538) (11.853.975) (4.243.431)
Severance indemnity reserve and Employees’ benefits 1.441.327 4.925.948 4.819.075
Non current financial liabilities 32.780.509 24.237.071 20.254.905
Other non current liabilities 2.857.771 1.903.628 1.998.478
Non-current deferred tax liabilities 16.494 16.494 16.494
TOTAL NON CURRENT LIABILITIES 37.096.101 31.083.141 27.088.952
Trade payables 7.635.292 6.887.267 5.370.248
Other current liabilities 12.522.524 6.505.062 3.664.869
Current financial liabilities 1.003.498 968.600 1.271.175
Income tax payable 0 0 11.556
TOTAL CURRENT LIABILITIES 21.161.313 14.360.929 10.317.848
TOTAL EQUITY AND LIABILITIES ** 51.358.876 33.590.095 33.163.369

PAGE 1

1.4 Consolidated Statement of Changes in Equity

CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
(amounts in Euro)
Share Capital Premium Reserve Stock Option and Warrants plan reserve Minority interests Other Reserves Retained Earnings
(Losses)
Profit (Loss) for
the period
Total Equity before European Investment Bank variation (IFRS 2) TOTAL EQUITY
Net Equity as of 31 December 2019 2.553.372 48.147.696 4.969.291 (382.504) (38.306.765) (14.644.285) 2.336.804 2.336.804
Previous year result allocation (14.644.285) 14.644.285
Opening reclassification 01/01/2020
Other movements
Loss for the period * * * * * * (6.520.264) (6.520.264) (6.520.264)
Total comprehensive income (57.231) (2.739) (59.970) (59.970)
Net Equity as of 30 June 2020 2.553.372 48.147.696 4.969.291 (439.735) (52.953.789) (6.520.264) (4.243.431) (4.243.431)
Previous year result allocation 6.520.264 6.520.264 6.520.264
Opening reclassification 01/01/2020 6.790 (6.790)
Other movements 818.178 818.178 818.178
Loss for the period (14.814.545) (14.814.545) (14.814.545)
Total comprehensive income (137.179) 2.739 (134.440) (134.440)
Net Equity as of 31 December 2020 2.553.372 48.147.696 4.969.291 (570.125) (52.139.663) (14.814.546) (11.853.975) (11.853.975)
Previous year result allocation (14.814.546) 14.814.546
Opening reclassification 01/01/2021
Other movements 6.502 6.618 13.120 13.120
Non controlling interests 20.187.793 20.187.793 20.187.793
Loss for the period (15.463.596) (15.463.596) (15.463.596)
Total comprehensive income 218.120 218.120 218.120
Net Equity as of 30 June 2021 2.553.372 48.147.696 4.969.291 20.187.793 (345.503) (66.947.590) (15.463.596) (6.898.538) (6.898.538)

1.5 Consolidated Statement of Cash Flows

CASH FLOW STATEMENT
(montants en Euro)
30/06/2021 31/12/2020 30/06/2020
Net Income or Loss (15.875.802) (14.814.545) (6.520.264)
Amortisation and depreciation 2.815.237 3.325.887 1.291.930
Impairment and write down 56.348 1.509.491 196.061
Stock option and incentive plans impact 4.771.255 824.790 513.025
Defined Benefit Plan (3.484.621) 100.328 (6.544)
Working capital adjustments
Decrease (increase) in tax assets (296.234) (296.234) (790.475)
Decrease (increase) in trade and other receivables and prepayments 1.199.318 8.461.612 9.140.030
Decrease (increase) in inventories (815.401) 997.504 (232.215)
Increase (decrease) in trade and other payables 6.709.138 (8.598.884) (11.631.110)
Increase (decrease) in non current assets and liabilities (3.289.635) (459.378) 584.369
Net cash flows from operating activities (8.210.397) (8.949.428) (7.455.193)
** ** ** **
Investments ** ** **
Net Decrease (Increase) in intangible assets (3.372.219) (4.528.996) (1.995.160)
Net Decrease (Increase) in tangible assets (144.276) (208.837) (53.117)
Net Decrease (Increase) due to IFRS 16 FTA (1.254.962) (53.207) 0
Reversal of IFRS 15 FTA 0 818.178 0
Net cash flows from investments activities (4.771.457) (3.972.862) (2.048.277)
**
Financing
Increase (decrease) in bank debts 8.578.334 10.673.494 6.993.903
Minorities cash injection 8.300.000
IFRS 16 Impact 1.254.962 (251.711) (148.104)
Net cash flows from financing activities 18.133.296 10.421.783 6.845.799
Net cash and cash equivalent at the beginning of the period 3.930.868 6.431.375 6.431.375
NET CASH FLOW FOR THE PERIOD 5.151.442 (2.500.507) (2.657.670)
NET CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 9.082.310 3.930.868 3.773.704

  1. These preliminary results are unaudited. Completion of the standard audit procedures and release of audit report with publication of the H1 2021 Financial Statements is expected on September 30, 2021.
  2. As per the Universal Registration Document 2020, Backlog or Project Backlog means, as of a given date, the estimated revenues and other income attributable to (i) purchase orders received, contracts signed and projects awarded as of the date hereof, and (ii) Project Development contracts associated with a Power Purchase Agreement, where the agreed value is a price per kWh of electricity and an amount of MW to be installed.
  3. According to the Universal Registration Document 2020, Contracts Secured means projects awarded, for which the signature of the full sets of the agreements has not been yet completed. Typically, when NHOA is awarded with a tender, typically being project financing, there are several steps to be completed (i.e. the EPC Agreement, the Notice to Proceed, permission to be signed). Once terms of documentation and planning permissions are defined, Contracts Secured becomes Backlog.
  4. As defined in the Universal Registration Document 2020, Pipeline means the estimate, to date, of the amount of potential projects, tenders and requests for proposal for which the NHOA Group has decided to participate or respond.
  5. As per the Press Release dated 23 July 2021 and consistently with the trading and operational update to be released on a quarterly basis, Pipeline will be an indicator exclusively referring to the Energy Storage Global Business Line (and Atlante GBL, starting from Q3 2021).

Download

H1 2021 Preliminary Results
Share this article:

You might also like