algoWatt

algoWatt, a GreenTech Company listed on the Euronext Milan market of Borsa Italiana, announce the postponement of the approval and publication date of the separated and the consolidated financial statements 2022, compared to what was communicated in the corporate event calendar released on January 10, 2023. In this regard, algoWatt’s Board of Directors has noted that:

• On December 13, 2022, as announced in a press release (available on the website algowatt.com / “Press Releases” section) regarding the implementation status of the Restructuring Plan and Financial Agreement pursuant to Article 67, paragraph 3, letter d) of the Italian L.F. (now Article 56 of the C.C.I.I.), algoWatt and its parent company Italeaf submitted a proposal for a “Stand Still” until June 30, 2023 to the signatories of the aforementioned plan;
• Following the above proposal, discussions with the counterparties of the Financial Agreement are currently underway to negotiate a modification of it, and therefore, it has become appropriate to postpone the approval of the 2022 budget plan, also to take into account the update of the Restructuring Plan.

UPDATE OF THE CORPORATE EVENTS CALENDAR

Taking into account the progress of the process described – of which the market will be regularly informed – and the relevance of the outcome of the negotiations aimed at achieving an update of the Plan, the Board of Directors deemed it appropriate to postpone any decision regarding the approval of the separate and the consolidated financial statements as of December 31, 2022, until June 30, 2023, in order to fully take into account the impacts arising from the definition of the updated financial agreement in the approval of such financial data. The precise date of the board meeting for the approval of the 2022 financial statements and for the convening of the Shareholders’ Meeting will be communicated to the market in a subsequent press release, in the manner established by the applicable regulations.

APPOINTMENT OF ADVISORS FOR UPDATING THE RESTRUCTURING PLAN AND FINANCIAL AGREEMENT

With regard to the process of updating the Restructuring Plan and the Financial Agreement, also in light of the regulatory changes introduced by the Italian Corporate Insolvency and Recovery Code and by Decree Law 13/2023, algoWatt has appointed R&S Advisory S.r.l., representend by dr Paolo Lisca, as financial advisor and the law firm Fallanca-Scicolone & Partners, represented by lawyer Marco Scicolone, for legal assistance in order to negotiate the aforementioned update of the Financial Agreement.

NEW STRATEGIC GUIDELINES

algoWatt also informs that the amendment to the Restructuring Plan envisages, inter alia, the launch of a new business plan, through the modification of the business model and a revision of the Company’s strategic and financial objectives. As part of this activity, the counterparties to the Financial Agreement had been notified of the intention to approve the strategic guidelines, relating to the industrial activities of the new Industrial Plan 2023-2025, by March 2023. In particular, the new strategic guidelines – drawn up with the consultancy of STAM Srl, a company specialising in high technology applied to energy, the environment, industry and automation – identify three high-level objectives, consistent with the Plan defined by algoWatt to emerge from the current state of financial tension, based on four drivers of industrial growth.

Three high-level objectives

1. Leadership in the twin transition market (digital solutions for sustainability)

The energy sector is responsible for about three quarters of today’s greenhouse gas emissions and is the key to averting the worst effects of climate change. The Twin Transition assets and competencies (software solutions and associated services) are part of the company’s history. The portfolio of algoWatt’s solutions and services is characterised by a focus on energy and elements related to its management. Among the fundamental assets functional to the “Twin Transition” objective is algoWatt’s European and regional R&D project portfolio, which is strongly aimed at enhancing and innovating technology on the core themes of the Twin Transition itself.

2. From provider to partner

Starting from the assumption that in today’s market, a service provider is now regarded as a commodity (with the high risk of turnover), the transformation into a technology partner becomes essential to affirm the role of a company that becomes an integral part of the customer’s business. The markets of digital solutions for energy, environment and plants represent a fundamental part of algoWatt’s history, which has a characterising know-how and can represent a great added value for prospects and customers. algoWatt can also count on the added value, skills and track record of TerniEnergia Progetti, an asset to be leveraged to present itself as a partner with experience in the sector and the ability to make a supply chain in an excellent market moment for the photovoltaic sector.

3. Growth in the Digital Circular Economy

Environmental sustainability, and in particular the circular economy, are at the centre of the main European and national strategic agendas (Green New Deal, Circular Economy Package, National Strategy for the Circular Economy, PNRR, co-funded research and innovation programmes, etc.) with the consequent mobilisation of significant public-private investments to boost this sector as it is considered key to: i) achieving the 2030 and 2050 decarbonisation targets; ii) decoupling production from raw material consumption; iii) activating new business models. To date, the main focus has been on the development and industrialisation of technologies and less on digitalisation aspects related to both logistics and process automation. This opens up space for market expansion and diversification within the ‘digital circular economy’.

Four strategic drivers

1. Achieving financial sustainability
   Resolution of the financial tension as the main driver, through a negotiated revision of the Recovery Plan and the related Financial Agreement.
2. EPC e O&M with TerniEnergia Progetti
   The operational re-launch of TerniEnergia Progetti will represent a key element of the strategy, allowing an increase in consolidated revenues and at the same time the possibility to achieve relevant stewardship and partnership agreements, functional to the change of the business model from provider to partner.
3. Research Development and Innovation
   algoWatt’s excellence in RD&I will be put at the service of the development of innovative solutions in the Twin Transition and Digital Circular Economy.
4. Portfolio rationalisation
   Greater focus on the Twin Transition and Digital Circular Economy, with the consequent exploitation of opportunities for divestment or disposal of software platforms and contracts not in scope, as well as M&A opportunities through the use of treasury shares, amounting to approximately 2.15% of the share capital, to integrate into the Group realities possessing competences and skills capable of strengthening algoWatt’s technological offering.

• Within the stewardship algoWatt will act as digital technology provider, Whitenergy as efficiency solutions provider and TerniEnergia Progetti as EPC and O&M supplier, also for utility scale projects

algoWatt, GreenTech Company listed on the Euronext Milan market of Borsa Italiana, its subsidiary TerniEnergia Progetti, system integrator and O& M provider in the renewable energy sector, and Whitenergy, Efficiency Solutions Provider, have today signed a strategic partnership, with a stewardship formula*, for the development and implementation of multiple projects in the renewable energy sector.M provider in the renewable energy sector, and Whitenergy, Efficiency Solutions Provider, have today signed a strategic partnership, with the formula of stewardship*, for the development and implementation of multiple projects in the field of energy production from renewable sources, towards industrial and agro-industrial customers, energy efficiency, also through the promotion of Energy Performance Contract offers, and projects of self-production, self-consumption and reduction of consumption, including the organisation of Renewable Energy Communities (CERs).

Gianluigi Mele, Founder and CEO of Whitenergy, pointed out that “the partnership represents a significant step towards creating a more sustainable and resilient future to support businesses aiming for energy and digital transition towards more sustainable forms of supply. We are convinced that, by working together with the algoWatt Group, we will be able to make available to a rapidly evolving market a wealth of know-how and experience represented by a range of innovative services, tailored to the customer’s technical needs”.

Stefano Neri, Chairman and CEO of algoWatt, emphasised that “the agreement allows us to combine the strong greentech and system integration skills in renewables of our group with the innovative approach of Whitenergy, which is a player strongly committed to reducing energy consumption and sustainability. Through the support of a company specialised in consulting and implementation of solutions for energy efficiency and transition, we will have the mutual opportunity to foster the adoption of technologies and processes that can provide industry and the agricultural sector with a concrete opportunity to achieve significant savings and increase environmental performance”.

The algoWatt group and the Whitenergy group, through services of a high industrial quality standard, aim to create new high-tech activities in the supply chain, integrating preliminary activities such as feasibility studies, energy diagnostics, consulting for obtaining incentives, economic-financial consulting and investment support, up to the introduction of solutions for self-consumption, even remotely, remote control and monitoring, the design, construction and commissioning of plants for the production of energy from renewable sources at the service of industrial and agro-industrial enterprises and energy efficiency, and advanced operation and maintenance, including the use of innovative and digital tools. 

*A particular partnership model that consists of working together with a common vision among the actors involved and to maintain this vision it is necessary to: (i) Involve partners from the early stages of the project; (ii) Ensure that partners are clear about the content, timing, strategy and overall design of the intervention; (iii) Consider (in the sense of assessing appropriateness and sustainability) partners’ views and input; (iv) Provide partners with the tools they need (training, information, contacts) and the information they feel they need; (v) Build trust.

• Wegreenit as General Contractor, algoWatt as digital technology provider and TerniEnergia Progetti as EPC and O&M supplier are involved in the agreement

algoWatt, GreenTech Company listed on the Euronext Milan market of Borsa Italiana, its subsidiary TerniEnergia Progetti, a system integrator and O& MM provider in the renewable energy sector, and Wegreenit, General Contractor in energy efficiency operations, active at 360° in the field of technical, commercial and financial services in the residential, industrial and hotel sectors, have signed a strategic partnership, with the stewardship* formula, for the valorisation of the resources and skills of each company in the Renewable Energy Community (REC) sector, through the development and achievement of a variety of projects.

The three-year stewardship, common goal is to assume national leadership in the implementation of shared plants for the production and self-consumption of energy from renewable sources, will see the companies committed as follows

• Wegreenit, which thanks to the agreement enriches its bouquet of skills and services with a new technological and innovative component, will operate as General Contractor, following – by way of example – the preliminary feasibility study and the economic and financial plan, the recruitment of participants and the signing of contracts with clients, the financial arrangement and the supervision of the various implementation phases;
• algoWatt will act in the role of digital technology provider, especially through the activities of its highly specialised technicians and the use of its proprietary ER-Libra CE suite (dedicated to CER management);
• TerniEnergia Progetti will operate as a sub-contractor, with its own know-how in the field of design and installation of renewable energy systems with related support solutions (storage, EV charge, digital technologies for plant management and CER administration, etc.).

Fabrizio Candoni, President and CEO of Wegreenit, emphasised the opportunity to quickly establish an innovative formula based on collaboration between different companies and consumer groups. “With this partnership we will offer large consumer units, companies and public administrations an integrated solution for energy communities. We will be the driver of innovative solutions that combine advanced digital technology with expertise in the design and installation of renewable energy systems, and experience in the technical, commercial and financial services required to realise sustainable and efficient energy systems“.

Stefano Neri, President and CEO of algoWatt, expressed his enthusiasm for this partnership, emphasising that “the alliance with Wegreenit represents a unique opportunity to expand our offer and to become together leading operators in the promising sector of Renewable Energy Communities. algoWatt and TerniEnergia Progetti will have in Wegreenit the ideal ally to develop a new business model able to maximise the opportunities offered by the sector’s regulations, ensuring environmental, social and economic benefits”.

RECs are becoming increasingly popular as a sustainable solution for the production and consumption of renewable energy. Energy communities are groups of consumers who work together to produce and consume clean energy, reducing their dependence on traditional energy sources and centralised electricity grids. A study by the Politecnico di Milano (Electricity Market Report) estimates that by 2025, there will be at least 40,000 RECs in Italy, involving around 1.2 million households, 200,000 offices and 10,000 SMEs.

Renewable Energy Communities are also attracting the attention of investors and financial institutions, who see in this sector a great opportunity to invest in sustainable solutions. Investors can support the growth of energy communities through long-term financing, thus creating a supportive ecosystem for the development of this new opportunity.

*A particular partnership model that consists of working together with a common vision among the actors involved and to maintain this vision it is necessary to: (i) Involve the partners early on in the project; (ii) Ensure that the partners are clear about the content, timing, strategy and overall design of the intervention; (iii) Consider (in the sense of assessing the appropriateness and sustainability) the partners’ views and input; (iv) Provide the partners with the tools they need (training, information, contacts) and the information they feel they need; (v) Build trust.

• The company was awarded a grant of Euro 150,000 under the Interconnect programme, with the ECSITE project
• It will be possible to enhance the degree of direct integration of the LIBRA CE proprietary platform with smart meters and appliances, minimising customisation costs of installations
• Increased know-how is also expected on energy efficiency, renewable energy community management, demand-response services and flexibility, P2P (peer-to-peer) / P2G (peer-to-grid) energy exchange

algoWatt S.p.A., a GreenTech Solutions Company listed on the Euronext Milan market of Borsa Italiana, announces that it has been awarded a Euro 150,000 grant for mentoring and support to the ECSITE – Energy Communities’ Semantic Interoperability Throughout Europe project (https://interconnectproject.eu/news/meet-interconnect-prototypes-open-call-winners/).

The aim of the ECSITE project is to make the LIBRA CE digital platform – algoWatt’s proprietary solution for the integrated management of Renewable Energy Communities and Self-Consumption Groups (https://algowatt.com/comunita-energetiche/) – compatible with the InterConnect project’s Interoperability Framework and, therefore, compliant with the Smart Applications REFerence ontology (SAREF), extending its applicability, interoperability and functional scalability.

algoWatt is among the 10 European SMEs selected for funding and a 9-month support programme, which will start in December 2022. The selection process involved the consideration of 66 applications from 20 EU and associated countries.

The outcome of the ECSITE project will consist of a semantically interoperable digital platform tailor-made for Energy Communities (RECs). An innovative aggregation tool for RECs members to whom essential services will be offered (monitoring of energy consumption and production at community level, calculation of shared energy). The focus on interoperability will enable LIBRA CE to interact with services, devices and digital platforms that already use the InterConnect and SAREF Interoperability Framework, enhancing the degree of direct integration with smart meters and appliances and minimising installation customisation and vendor lock-in costs.

It is also expected that the technical know-how gained in the ECSITE project will enable algoWatt to improve and develop in the short term some of the most relevant business models in the digital energy market today, including: energy efficiency; renewable energy community management; demand-response and flexibility services; P2P (peer-to-peer) / P2G (peer-to-grid) energy exchange.

The InterConnect project received funding from the European Union’s Horizon 2020 research and innovation programme under Grant Agreement No. 857237.

This press release is also available on the Company’s website www.algowatt.com and on the regulated information dissemination system 1INFO www.1info.it.

algoWatt (ALW), a GreenTech solutions company, designs, develops and integrates solutions for managing energy and natural resources in a sustainable and socially responsible manner. The company provides management and control systems that integrate devices, networks, software and services with a clear sectoral focus: digital energy and utilities, smart cities & enterprises and green mobility. algoWatt was born from the merger of TerniEnergia, a leading company in the renewable energy and environmental industry, and Softeco, an ICT solutions provider with over 40 years of experience for customers operating in the energy, industry and transport sectors. The company, with more than 200 employees in 7 locations in Italy and investments in research and innovation amounting to more than 12% of its turnover, operates with an efficient corporate organisation, focused on its reference markets: Green Energy Utility: renewable energies, digital energy, smart grids; Green Enterprise&City: IoT, data analysis, energy efficiency, building and process automation; Green Mobility: electric, sharing and on demand. Different markets, one focus: sustainability. algoWatt is listed on the Euronext Milan market of Borsa Italiana S.p.A..

• The company promotes general contractor activities and its own proprietary digital technologies, validated by RSE, for energy flow control

algoWatt S.p.A., a GreenTech Solutions Company listed on the Euronext Milan market of the Italian Stock Exchange, announces that it has signed a relevant framework agreement with a European multinational company, a leader in the strategic sectors of electrification, automation and digitalisation, for the provision of professional services for the design and development of software for remote control systems for electrical distribution.

This is a very qualifying field of activity with a high level of professionalism and expertise, which algoWatt has been carrying out for years in partnership with the aforementioned multinational company, which has stood for engineering excellence, innovation, quality, reliability and internationality for almost two centuries.

The framework agreement, which will run until July 2025, envisages the provision of professional and body services in the field of remote control systems for the electricity distribution network; the services provided may concern design and software development activities, professional consulting, and assistance and maintenance activities for the management of the hardware and software systems covered by the agreement.

This press release is also available on the Company’s website www.algowatt.com and on the regulated information dissemination system 1INFO www.1info.it.

algoWatt (ALW), a GreenTech solutions company, designs, develops and integrates solutions for managing energy and natural resources in a sustainable and socially responsible manner. The company provides management and control systems that integrate devices, networks, software and services with a clear sectoral focus: digital energy and utilities, smart cities & enterprises and green mobility. algoWatt was born from the merger of TerniEnergia, a leading company in the renewable energy and environmental industry, and Softeco, an ICT solutions provider with over 40 years of experience for customers operating in the energy, industry and transport sectors. The company, with more than 200 employees in 7 locations in Italy and investments in research and innovation amounting to more than 12% of its turnover, operates with an efficient corporate organisation, focused on its reference markets: Green Energy Utility: renewable energies, digital energy, smart grids; Green Enterprise&City: IoT, data analysis, energy efficiency, building and process automation; Green Mobility: electric, sharing and on demand. Different markets, one focus: sustainability. algoWatt is listed on the Euro next Milan market of Borsa Italiana S.p.A..

algoWatt S.p.A., GreenTech Solutions Company listed on the Euronext Milan market of Borsa Italiana, following the press release issued on June 23, 2022, announces that the Board of Directors of the company, during its last meeting, has taken note of the signing of the agreement for the lease, to the subsidiary TerniEnergia Progetti Srl, of the business unit related to the operation of ordinary and extraordinary maintenance of photovoltaic systems.

With the transaction, which envisages an annual consideration of Euro 440,000, 14 highly professionalised employees, the “TerniEnergia” brand licence – which will be used by the new company – the technical office, equipment and software relating to the activities carried out in the photovoltaic sector in Italy and abroad by the Group, as well as the O&M contracts relating to 67 photovoltaic plants for a total installed capacity of approximately 52 MWp aretransferred to the subsidiary.

Dr. Fabrizio Venturi (58) a manager with a consistent track record in the EPC and photovoltaic O&M sectors in Italy and abroad, has been appointed Sole Director of TerniEnergia Progetti Srl and returns to join the Group after his experience as Managing Director of the former TerniEnergia from 2007 to 2017. The company, which was established in 2018 for the enhancement of assets considered no longer strategic as part of algoWatt’s Recovery Plan, will be used by the Group as a General Contractor and as a functional vehicle for field and EPC activities, from the initial design, to the construction the management of bureaucratic procedures up to the testing and commissioning of the plants and maintenance, in the fields of renewable energy, energy efficiency, energy upgrading of buildings and industrial plants and smart and digital plant engineering for the monitoring and remote control of energy production, distribution and management plants.

Through TerniEnergia Progetti Srl, the algoWatt Group intends to promptly seize the opportunities offered by decarbonisation and energy transition, the new challenges posed by the reduction of energy dependence on foreign countries, the development of the prosumer (on-site consumption) market to reduce the cost of electricity supply and the potential growth of renewable energy communities and collective self-consumption, as well as the integration of renewable plants and digital technologies for energy efficiency, maximisation of power generation and reduction of consumption.

Today, the TerniEnergia Progetti website will be published online at the URL: www.ternienergia.com.

• algoWatt will receive a grant of approximately Euro 650,000 for industrial research and experimental development activities, for projects with a total value of approximately Euro 1 million
• From September 2022, algoWatt will participate as an affiliated entity in the focus areas “Technologies for the care and protection of the environment, towards zero emissions” and “Smart and sustainable ports”.
• The ecosystem, centred on robotics and artificial intelligence, comprises 33 projects with affiliated companies and is promoted by UniGe, IIT and CNR

algoWatt S.p.A., a GreenTech Solutions Company listed on the Euronext Milan market of the Italian Stock Exchange, is among the 22 affiliated companies participating in the national innovation ecosystem RAISE, selected by the Ministry of Education, University and Scientific Research within the PNRR, the National Recovery and Resilience Plan, for access to the negotiation and implementation phases of the proposed projects.

The company, starting in September 2022, will take part in industrial research and experimental development activities, relating to projects worth a total of about Euro 1 million, with the disbursement of non-repayable grants of around Euro 650,000. algoWatt will be involved in innovation projects relating to the areas of ‘Technologies for the care and protection of the environment, towards zero emissions’ and ‘Smart and sustainable ports’.

“This first opportunity to access PNRR funds represents an important chance for our company to increase the industrial spin-offs of applied research in the greentech sector” – said algoWatt Chairman and CEO Stefano Neri. “National and European policies outline a framework of opportunities in which our industrial plan fits perfectly. In the RAISE ecosystem, we will have the opportunity to work in the domains of robotics and artificial intelligence as enabling technologies for the development of high value-added applications, in key sectors such as environment, logistics, port, smart city and health”.

The RAISE ecosystem includes 33 projects with affiliated partners represented by small and medium-sized regional enterprises and sees the participation of UniGe, IIT and CNR as founders together with Regione Liguria, FILSE, Liguria Digitale, ANCI Liguria, CIMA Foundation and Job Centre. More than 50 % of the funds received will be dedicated to companies through calls or specific technology transfer projects for the realisation of the ecosystem.

The project, with a budget of Euro 120 million, to be allocated from the resources provided for the PNRR, aims to take a leading role in the specialisation area outlined (Robotics and AI) at national and international level through the skills already present and consolidated in Liguria.

• Revenues of Euro 9.3 million (Euro 9.8 million as at 30/06/2021; -5%)
• EBITDA of Euro 0.4 million (Euro 25 thousand as at 30/06/2021) with an EBITDA Margin of 4.5%
• EBIT of Euro -1.7 million (Euro -2.6 million as at 30/06/2021; +33.1%), Result before tax (EBT) of Euro -2 million (Euro -3.6 million as at 30/06/2021; +43.8%)
• Net profit of Euro -1.8 million (Euro -3.7 million as at 30/06/2021; +51.2)
• Net Financial Position of Euro 13.5 million (Euro 12.8 million as of 31/12/2021; +5,73%)
• Shareholders’ equity of Euro 10.5 million (Euro -12.1 million as at 31/12/2021; -13.4%)
• EBITDA higher than Plan forecasts expected for year-end*
• Updating the corporate events calendar

algoWatt S.p.A., GreenTech Solutions Company listed on the Italian Stock Exchange (MTA), announces that the Company’s Board of Directors, which met today, approved the Consolidated Financial Report as at 30 June 2022.

Chairman and CEO of algoWatt, Stefano Neri, said*:

“With the results of the first half of 2022, we close the implementation of the first phase of the Recovery Plan and the Financial Agreement and intend, as of now, to demonstrate the proactivity of the new governance in implementing the strategic review envisaged in the 2022-2024 Business Plan. We are confident that the second half of the year, in line with previous years, will lead to significant growth in business and results. In particular, also due to the estimates and forecasts that we can assume in the current economic situation, we believe that at the end of the financial year 2022 we will be able to exceed the EBITDA target that we have indicated in the Industrial Plan (approximately Euro 4.5 million). Finally, in order to increase the symmetry of information between the company and investors, transparency on the actions we are taking and, at the same time, improve the understanding of business decisions and their impact on performance, we have taken the decision to publish quarterly results, providing the market with a prompt information”.

Main economic and financial results

Revenues amounted to Euro 9.3 million (€9.8 million as at 30/06/20 21; -5%). It should be noted that the first part of the financial year was dedicated, following the new Recovery Plan and the Financial Agreement, to implementing the revision of the strategic approach, characterised by a simplification of the corporate structure, with the elimination of the three business units to increase efficiency and optimise costs. In particular, a strong organisational change was imparted, oriented towards customer proximity and support with new structures (software factory, centralised project management, solution delivery and improved business processes). Management expects a boost in business volume growth in the second half of the financial year, also based on the good trend in the acquisition of new orders.

EBITDA amounted to Euro 0.4 million, a considerable increase compared to the same period of the previous year (Euro 25 thousand as of 30/06/2021), with EBITDA Margin of 4.5% growing consistently. Adjusted EBITDA, gross of restructuring-related costs (amounting to €291 thousand) and other operating expenses and contingent liabilities (amounting to €406 thousand) came to about €1 million (€1 million at 30 June 2021). The adjusted EBITDA MARGIN amounted to about 11.2% (10.5% as at 30 June 2021).

The Net Operating Result (EBIT) was negative for Euro -1.7 million, an improvement of almost Euro 0.9 million compared to the corresponding figure of the previous year (Euro -2.6 million as of 30/06/2021; + 33.1%). The change is mainly attributable to the lower incidence of depreciation, amortisation and impairment losses.

Profit before tax (EBT) amounted to Euro -2 million (Euro -3.6 million as of 30 June 2021; an improvement of 43.8%), mainly due to lower financial expenses. Please note that the restructuring agreement with banks and bondholders provided for the accrual of interest on the financially manoeuvred debt only until 30 June 2021.

The Net Profit of Euro -1.8 million, compared to Euro -3.7 million as of 30/06/2021, improved significantly (51.2%) compared to the previous year, due to the effects described above.

The Net Financial Position amounted to Euro 13.5 million (Euro 12.8 million as of 31.12.2021; +5.73%), with debt divided into a short-term portion of Euro 1.3 million and a long-term portion of Euro 12.2 million.

Current debt as of 30 June 2022 mainly includes short-term credit lines used as advances on invoices. The non-current portion of indebtedness mainly includes the residual exposure to banks, due to the effects of the new financial agreement signed by the Company and its parent company Italeaf on 22 June 2021 and which became fully effective upon the fulfilment of all conditions precedent on 30 July 2021.

Shareholders’ Equity amounted to approximately Euro 10.5 million (Euro 12.1 million as at 31/12/2021; -13.4%). Shareholders’ Equity also takes into account treasury shares held in the portfolio, which amount to 1,012,998 (2.15% of the share capital).

Business outlook

The international scenario continues to be characterised by high uncertainty related to the conflict between Russia and Ukraine, strong inflationary pressures driven by energy prices and a change in the tone of monetary policy.

Growth prospects for the coming months appear to be negatively affected by the continuation of the inflationary phase, the deterioration of the trade balance and the fall in household confidence. However, business expectations still show moderate and widespread improvements.

The described geopolitical tensions, inflation, rising interest rates and the latest lockdowns imposed by the Chinese government due to the resurgence of Covid-19 contagions represent the main challenges to overall economic growth that are causing the world’s major Banks and Institutions to revise downward their growth estimates for the current year and adding to the overall environment of uncertainty and turbulence in the markets.

These circumstances and scenarios, open up new potential opportunities for companies like algoWatt that are fully inserted in the emerging Green Tech sector, linked to clean technology, i.e. products and/or services that improve operational performance while reducing costs, energy consumption, waste and negative environmental effects. Having already anticipated this scenario with the simplification of the organisational model – characterised by the identification of the reference markets Green Energy & Utility, Green Enterprise & City and Green Mobility -, algoWatt intends to pursue these strategic choices, fitting in with the growth strands identified by the European Green New Deal, the PNRR, the policies to stimulate digitalisation and those for combating climate change and decarbonising the economy.

The Group is working to implement the Restructuring Plan pursuant to Article 67, paragraph 3, letter d), L.F. and the related Financial Agreement, In particular, compliance with the covenants and targets has been included in the new 2022-2024 plan presented in recent months and represents in its strategic guidelines the company’s main area of commitment in the short and medium term and, in any case, within the horizon of the Plan itself.

As far as algoWatt is concerned, business related to software development and system integration will be consolidated and strengthened for leading customers in the respective sectors. It is precisely in this area that the Group intends to go along with the rapid and profound technological changes and a constant evolution of the composition of professionalism and skills to be combined in the realisation of services and solutions, with the need for continuous development and updating of new products and services, and timeliness in go-to-market.

Added to this is the planned re-launch of TerniEnergia Progetti Srl, which is to operate in the fields of renewable plant installation, energy efficiency, building renovation aimed at energy modernisation and redevelopment, and technological integration, responding to the growing demand for self-consumption, electrification of consumption, production of renewable energy, and reduction of energy dependence on foreign countries.

These prospects, together with the order backlog acquired as at 30 June 2022, as well as a further backlog being formalised, allow the directors to look optimistically at the continuation of the financial year and, more generally, at subsequent years, also with reference to compliance with the financial commitments imposed by the financial manoeuvre.

Finally, the Group will continue to explore the possibility of pursuing extraordinary operations aimed at sustaining continuity and growth.

ADDITIONAL INFORMATION REQUIRED BY CONSOB PURSUANT TO ARTICLE 114 OF LEGISLATIVE DECREE NO. 58/98 (TUF)

Any failure to comply with covenants, negative pledges and any other clause in the Group’s indebtedness involving limits on the use of financial resources, with an updated indication of the degree of compliance with these clauses

On 7 December 2021, following the closing for the sale of the shares representing the entire share capital of three agricultural companies, algoWatt announced that it had met the covenant related to the 2021 Financial Parameter, which envisaged the completion of divestments for a countervalue of at least Euro 9 million, as envisaged by the Financial Manoeuvre related to the Reorganisation Plan.

As far as the financial commitments (covenants) for the year ending 31 December 2022 are concerned, it should be noted that the parent company algoWatt is obliged to comply with a NFP/Ebitda ratio of no more than 4 (which, in subsequent years, will increase to 3) and that its parent company Italeaf is committed to repaying debts to banks for a minimum amount of Euro 6 million through the sale of industrial assets. For more details on the covenants, please refer to Paragraph 3.3.1 “Going Concern Assessments” of the Notes to the Financial Statements.

With regard to the covenant on algoWatt, based on the actual results as of 30 June 2022, the orders acquired and in progress as of the same date, the directors believe that compliance with the covenant is reasonably foreseeable.

The status of implementation of any industrial and financial plans of the AlgoWatt Group, highlighting any deviations of final figures from the planned ones

Reference should be made to the 2022-2024 business plan “Leading the clean energy transition”, which was released on 29 March 2022 by the company and simultaneously presented to the market, as well as to section 3.3.1. of the Explanatory Notes, in which updates on the implementation of the new Business Plan and the Financial Agreement are reported.

***

Filing documentation

We inform you that the Consolidated Financial Report as at 30 June 2022 of algoWatt, approved by the Board of Directors today, will be made available to the public, together with the auditors’ report, in the manner required by current regulations.

Updating the corporate events calendar

algoWatt S.p.A., in order to facilitate the activities of financial market operators, pursuant to Article 2.6.2 of the Borsa Italiana S.p.A. Regulations, announces the following update to the Corporate Events Calendar released on 3 February 2022:

10 November 2022 – Meeting of the Board of Directors to approve the Interim Management Report as at 30 September 2022.

Any changes to the above calendar, as well as information on meetings with financial analysts and institutional investors, will be promptly communicated.

The corporate events calendar is available to the public on the Company’s website www.algowatt.com, in the ‘Investor Relations/Financial Calendar’ section as well as at the authorised storage mechanism 1INFO, http://www.1info.it.

***

Pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, the Financial Reporting Officer, Mr. Filippo Calisti, declares that the accounting information contained in this press release corresponds to the documented results, books and accounting records.

Filing documentation

We inform you that the Consolidated Financial Report as at 30 June 2022 of algoWatt, approved by the Board of Directors today, will be made available to the public, together with the auditors’ report, in the manner required by current regulations.

*) This statement contains objectives and forecasts that reflect management’s current estimates of future events. Such forecasts include, but are not limited to, all information other than factual data, including, without limitation, information regarding operating results, strategy, plans, objectives and future developments in the markets in which the Group operates or intends to operate. The Group’s ability to achieve expected results and targets depends on external factors. Actual results may differ from those predicted or implied by the forecast data.

• The orders on behalf of IREN Smart Solutions, an Esco of the IREN Group, include the construction of turnkey plants, without the supply of panels for a total of 1.22 MWp and a fee of approximately Euro 520 thousand

algoWatt S.p.A., a GreenTech Solutions Company listed on the Euronext Milan market of the Italian Stock Exchange, as part of its activities in the Green Enterprise & City market, in which the company operates as a supplier of solutions for energy efficiency, self-consumption, system integration between plants and hardware components, and management software platforms, has been awarded a contract worth a total of approximately Euro 520,000 for the construction of three utility-scale photovoltaic plants with a total capacity of 1.22 MWp without the supply of panels. The client of the interventions is IREN Smart Solutions, a company of the Iren Group, which offers integrated solutions for energy efficiency aimed at condominiums, businesses, public administration, non-profit and welfare bodies, and is E.S.Co. certified according to UNI CEI 11352.

The plants will be installed in Lombardy, respectively in Salerano sul Lambro (LO), Pero and Lodi to cover production plants owned by the same end customer of IREN Smart Solutions. The order envisages the turnkey supply of photovoltaic modules for self-consumption on site, with a consequent reduction of energy withdrawal from the grid and reduction of the client’s energy dependence.

• Resignation for personal reasons of CEO Paolo Piccini
• Luca Maria Tonelli appointed Senior Technical Advisor reporting directly to the CEO

The Board of Directors of algoWatt S.p.A., GreenTech Solutions Company listed on the Euronext Milan market of Borsa Italiana, met today under the chairmanship of Stefano Neri and announced that Paolo Piccini has resigned, for personal reasons and with immediate effect, from the role of CEO and member of the BoD.

Commenting on Mr Piccini’s resignation, Chairman Stefano Neri said: “I would like to express our thanks to Paolo Piccini for his dedication in his role as CEO since 2021 and as an independent member of the BoD since 2018.

We wish Mr Piccini the best of professional success in the continuation of his career”.

The Board of Directors of algoWatt, taking note of this decision, resolved to entrust the Chairman, Stefano Neri, with the powers previously held by Eng. Piccini, appointing him as CEO. The new CEO will be assisted by Senior Technical Advisor Mr Luca Maria Tonelli, a long-standing expert in technological innovation and digital transformation, who will contribute to the further growth of the Company on the Italian and European markets, through the implementation of efficient processes and the search for development and exploitation opportunities in the areas of software development and application solutions for algoWatt’s target markets. Mr. Tonelli’s CV will be available on the algoWatt website in the Investor Relations / Corporate Documents section.   

The BoD of algoWatt also resolved to terminate the employment relationship with Mr. Idilio Ciuffarella, who will consequently no longer hold the position of General Manager and Manager with strategic responsibilities of algoWatt as of today. The Board of Directors also expressed its best wishes for his future professional commitments. 

This press release is also available on the Company’s website www.algowatt.com and on the regulated information dissemination system 1INFO www.1info.it.

algoWatt (ALW), a GreenTech solutions company, designs, develops and integrates solutions for managing energy and natural resources in a sustainable and socially responsible manner. The company provides management and control systems that integrate devices, networks, software and services with a clear sectoral focus: digital energy and utilities, smart cities & enterprises and green mobility. algoWatt was born from the merger of TerniEnergia, a leading company in the renewable energy and environmental industry, and Softeco, an ICT solutions provider with over 40 years of experience for customers operating in the energy, industry and transport sectors. The company, with more than 200 employees in 7 locations in Italy and investments in research and innovation amounting to more than 12% of its turnover, operates with an efficient corporate organisation, focused on its reference markets: Green Energy Utility: renewable energies, digital energy, smart grids; Green Enterprise&City: IoT, data analysis, energy efficiency, building and process automation; Green Mobility: electric, sharing and on demand. Different markets, one focus: sustainability. algoWatt is listed on the Euronext Milan market of Borsa Italiana S.p.A..