Italeaf

News from Italeaf

03Aug 2022
  • 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.

25Jul 2022

The Board of directors of Italeaf, a holding company active in the cleantech and smart innovation sectors, met today under the chairmanship of Fabrizio Venturi, and took note of the resignation from the role of CEO and member of the board of directors. with immediate effect, submitted by Monica Federici.

Commenting on Dr. Federici’s resignation, Chairman Venturi, on behalf of the Board of Directors and shareholders, said: “I would like to express our sincerest thanks to Monica for her unconditional dedication in her role as our CEO and as a member of the Board of Directors since the company’s establishment. Her passion for the growth and development projects of Italeaf has been particularly significant and, under her leadership, the company has pursued and achieved challenging goals, such as the listing and regeneration of the Nera Montoro industrial site, which today represents a unicum of integration of multiple productive plants, all operating in the cleantech and circular economy sectors. We wish you and your family a future full of satisfaction’.

Subsequently, the Board of Directors proceeded to co-opt Manlio Neri as a new member of the administrative body, also appointing him as the new Chief Executive Officer (CEO). The co-optation of the new member of the administrative body, Manlio Neri – who will remain in office until the next Shareholders’ Meeting of the Company – took place upon the proposal of President Venturi on behalf of the reference shareholder Skill & Trust Srl and with a resolution approved by the Board of Statutory Auditors, in compliance with the provisions of the law and the Articles of Association.

Manlio Neri was born in Spoleto (PG) in 1993 and lives in Milan. He is Sole Director of Sundrone Srl, a subsidiary of algoWatt, a company specialising in aerial surveys using drones. He is Head of Business Intelligence at algoWatt S.p.A., a company listed on the Euronext Milan Market of the Italian Stock Exchange. He was Chief Executive Officer of Italeaf HK Limited (Hong Kong), a subsidiary of Italeaf S.p.A.. He was also Managing Director of two industrial companies in South Africa of the TerniEnergia Group. He has lived in London and Hong Kong and holds master’s degrees in business administration, leadership and communication from LUISS Business School in Rome, Università Cattolica in Milan, Il Sole 24 Ore Business School and SDA Bocconi in Milan.

The curriculum vitae of the newly appointed Director is available to the public on the Company’s website at www.italeaf.com (Section Corporate Governance/Documents).

20Jul 2022
  • 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.

15Jul 2022
  • 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..

30Jun 2022

The Shareholders’ Meeting of Italeaf, an investment holding company active in the cleantech and smart innovation sectors, met today under the chairmanship of Fabrizio Venturi, and unanimously examined and approved the financial statements of Italeaf S.p.A. and took note of the presentation of the consolidated financial statements as at 31 December 2021.

The Shareholders’ Meeting also unanimously approved the proposal to adjust the directors’ remuneration.

23Jun 2022
  • Through the subsidiary’s activities, the Group intends to seize opportunities related to the reduction of foreign energy dependence, decarbonisation and energy transition, growth in self-consumption and the Energy Communities business
  • Marco Boero appointed Chief Innovation Data Officer

The Board of Directors of algoWatt S.p.A., a GreenTech Solutions Company listed on the Euronext Milan market of Borsa Italiana, met today under the chairmanship of Stefano Neri and resolved to re-launch the activity of the newco TerniEnergia Progetti Srl, into which the assets of the former TerniEnergia were merged, represented by highly skilled employees, intellectual property and certifications, technical office, equipment and software related to the activities carried out in the photovoltaic sector in Italy and abroad.

The company (set up in 2018 for the enhancement of activities considered no longer strategic under the TerniEnergia Relaunch Plan, prior to the merger by incorporation with Softeco Sismat and the change of company name to algoWatt and the current Recovery Plan and Financial Agreement) will be used by the Group as a General Contractor and as a functional vehicle for field and EPC activities, from initial design to the construction, to the management of bureaucratic procedures up to the testing and commissioning of plants and maintenance, in the fields of renewable energy, energy efficiency, energy upgrading of buildings (Superbonus and Ecobonus) and industrial plants and smart and digital plant engineering for the monitoring and remote control of energy production, distribution and plants management.

Through the strategic objective of re-launching its subsidiary TerniEnergia Progetti Srl, the algoWatt Group intends to promptly seize the opportunities offered by decarbonisation and the energy transition, the new challenges posed by the reduction of energy dependence on foreign countries, the development of the prosumer market (on-site consumption) 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.

The Board of Directors also appointed Mr. Marco Boero, algoWatt’s current senior advisor for the Green Mobility sector, as the new Chief Innovation Data Officer.

07Jun 2022
  • Revenues amounted to Euro 1.46 million (Euro 24.2 million in the consolidated financial statements)
  • EBITDA of Euro -0.5 million (Euro 2.7 million in the consolidated financial statements)
  • EBIT amounted to Euro -1.5 million (Euro -6.7 million in the consolidated financial statements)
  • Net profit of Euro 2.7 million (Euro 16.8 million in the consolidated financial statements)
  • Shareholders’ equity of Euro 6.4 million (Euro 0.8 million in the consolidated financial statements)
  • NFP of Euro 18.5 million (Euro 31.4 million in the consolidated financial statements)

 

The board of directors of Italeaf, a holding company active in the cleantech and smart innovation sectors, today approved the consolidated financial report as at 31 December 2021 and the financial statements for the year 2021.

The main economic and financial results of the Group and of the company Italeaf S.p.A. are reported below:

 

Economic and Financial Highlights Separate Financial Statements 2021

 

2021

2020

Variation

 

Economic Data

 

 

 

Net revenues from sales and services

1.451.501

1.938.235

(486.734)

EBITDA

(582.845)

105.879

(688.724)

EBIT

(1.489.806)

(307.045)

(1.182.761)

Net Result

2.696.423

(278.982)

2.975.405

Financial Data

 

 

 

NFP

18.522.693

18.804.258

(281.565)

Shareholders’ Equity

6.386.413

3.689.991

2.696.422

*According to ITALIAN GAAP accounting principles

 

Economic and Financial Highlights of the Consolidated Annual Financial Report 2021

 

2021

2020

Variation

 

Economic Data

 

 

 

Net revenues from sales and services

24.161.570

19.925.524

4.236.046

EBITDA

2.738.158

(1.727.028)

4.465.186

EBIT

(6.698.257)

(4.398.752)

(2.299.505)

Net Result

16.842.912

(6.923.273)

23.766.185

Financial Data

 

 

 

NFP

31.409.431

84.257.745

(52.848.314)

Shareholders’ Equity

776.883

(33.296.824)

34.073.707

*Annual financial report prepared in accordance with IFRS-EU accounting standards

10May 2022

Growing EBITDA and return to profit: success of the recovery plan and financial manoeuvre, strengthening of governance and new organisational structure

  • Approval of the First Section of the Remuneration Report required by art. 123-ter of italian TUF
  • Remuneration and incentive policies approved
  • Appointed the Board of Directors of algoWatt S.p.A., which will remain in office for the financial years 2022, 2023 and 2024. Stefano Neri confirmed as Chairman
  • Appointed the Board of Statutory Auditors of algoWatt S.p.A., which will remain in office for the financial years 2022, 2023 and 2024
  • Authorised the use of treasury shares for extraordinary transactions aimed at competitive positioning and strengthening of the company

 

The Ordinary Shareholders’ Meeting of algoWatt S.p.A., a GreenTech Solutions Company listed on the Euronext Milan market of Borsa Italiana, met today under the chairmanship of Stefano Neri. The Shareholders’ Meeting examined and approved, by unanimous resolution, the draft financial statements and acknowledged the presentation of the consolidated financial statements as at 31 December 2021.

 

ALGOWATT’S RESULTS AS AT 31 DECEMBER 2021

Revenues amounted to €22 million (€19.4 million at 31/12/20 20; +13%). The year 2021 was characterised by the completion of the drafting, approval and entry into force of the Reorganisation Plan and the related Financial Agreement with the creditors. It should be noted that, with the strengthening of governance and the revision of the strategic approach, a simplification of the corporate structure was launched in the last part of the financial year, eliminating the three business units to increase efficiency and optimise costs, with new business segments (software factory, centralised project management, solution delivery and improved processes).

EBITDA amounted to Euro 3.2 million, an increase of approximately 75% compared to the previous year (Euro 1.8 million at 31/12/2020), with an EBITDA margin of 14.68%.

The Net Operating Result (EBIT) was negative at -€3.4 million, a decrease of €3.7 million compared to the corresponding figure for the previous year (€0.3 million at 31/12/2020).

Profit before tax (EBT) amounted to EUR 9.4 million (EUR -2.3 million at 31/12/2020.

The Net result of €8.5 million, compared to -€3.5 million at 31/12/2020, a significant improvement on the previous year due to the effects described above, also includes the loss of €0.7 million from assets held for sale or disposal.

The Net Financial Position amounted to Euro 14.2 million (Euro 66.9 million at 31/12/2020), with debt divided into short-term portion of Euro 2 million and long-term portion of Euro 12.2 million.

Shareholders’ Equity amounts to approximately 12 million Euro (-28.5 million Euro as at 31/12/2020), with an increase compared to the previous year of 40,589 thousand Euro mainly due to the effects of the restructuring agreement. Shareholders’ Equity also takes into account treasury shares held in portfolio, which amount to 1,012,998 (2.15% of the share capital).

 

ALGOWATT GROUP’S CONSOLIDATED RESULTS AT 31 DECEMBER 2021

Net revenue amounted to €23 million (€19.2 million as at 31 December 2020). EBITDA amounted to €3.3 million (€0.8 million as at 31 December 2020). Net profit amounted to €6.6 million (€6 million as at 31 December 2020).

 

The Manager responsible for preparing the company’s financial reports, Mr Filippo Calisti, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

 

REPORT ON REMUNERATION PURSUANT TO ART. 123-TER D. LGS. 58/98

The Shareholders’ Meeting examined the Report on remuneration policy and compensation paid (the “Remuneration Report”) prepared by the Company’s Board of Directors pursuant to Article 125-ter of Legislative Decree no. 58 of 24 February 1998 and Articles 72 and 84-ter of Consob Regulation no. 11971 of 14 May 1999, as amended.

The Shareholders’ Meeting unanimously voted in favour of the first section of the Remuneration Report and approved the remuneration policy for the members of the Company’s governing bodies, the General Manager and key management personnel.

The Shareholders’ Meeting also unanimously voted in favour of the second section of the Remuneration Report.

With reference to the termination of the office of Chief Executive Officer of Laura Bizzarri due to expiry of the terms, it should be noted that no agreements have been entered into between the Company and the executive directors that provide for compensation in the event of termination of the relationship. The Board has also evaluated the advisability of not adopting succession plans for executive directors, as reported in the specific paragraph of the Report on Corporate Governance and Ownership Structure for the year 2021.

 

RENEWAL OF CORPORATE BODIES

The Shareholders’ Meeting unanimously appointed the members of the Board of Directors, which will remain in office for the financial years 2022, 2023 and 2024, until the date of the Shareholders’ Meeting called to approve the financial statements as at 31 December 2024, and confirmed the number of members at 5. The directors, proposed in the list submitted by the majority shareholder Italeaf S.p.A., and voted by the Shareholders’ Meeting are: Stefano Neri, who assumed the position of Chairman; Paolo Piccini; Michele Costabile; Stefania Bertolini; Laura Neri. Stefania Bertolini and Michele Costabile declared that they meet the requirements of independence set forth in current legislation, including the Consolidated Finance Act, and in the Corporate Governance Code.

The Shareholders’ Meeting also resolved to set the total annual taxable emolument of the Board of Directors at a maximum of EUR 290,000 in addition to the charges and contributions provided for by law, including those in favour of directors holding special offices and members of the board committees.

Also appointed were the three members of the Board of Statutory Auditors and two alternate auditors indicated from list no. 1, who will remain in office for the 2022, 2023 and 2024 financial years: Andrea Bellucci, who took on the role of Chairman of the Board of Statutory Auditors; Simonetta Magni; Marco Chieruzzi. Caterina Brescia and Massimo Pannacci were elected alternate auditors.

The Shareholders’ Meeting unanimously resolved in favour of the members of the Board of Statutory Auditors, for the entire duration of their office, a total annual gross emolument of Euro 70 thousand in addition to the reimbursement of expenses incurred in connection with the appointment.

The curricula vitae of the members of the Board of Directors and the Board of Statutory Auditors are available on the Company’s website at www.algowatt.com (Corporate Governance/Corporate Documents section).

 

AUTHORISATION TO USE TREASURY SHARES

Lastly, the Shareholders’ Meeting resolved by majority vote to authorise the Board of Directors, pursuant to Article 2357-ter of the Italian Civil Code, to use treasury shares for extraordinary transactions, including for the purpose of improving the Company’s operations and competitive positioning, in the event that investment opportunities arise, including through exchange, swap, contribution, sale or other act of disposal of treasury shares for the acquisition of equity investments or share packages.

 

The summary voting report and the minutes of the Shareholders’ Meeting will be made available to the public, within the time limits and in the manner required by law, at the Company’s registered office and on the Company’s website at www.algowatt.com (Investor Relations and Corporate Governance/Assembly sections, as well as on the authorised storage mechanism 1Info (www.1info.it).

 

13Apr 2022
  • A 5G-GNSS hybrid positioning engine will be developed for mission-critical applications such as autonomous guidance of drones, cars, robots in complex urban environments
  • The two-year project will be coordinated by GReD and will also involve the Politecnico di Milano and Vodafone.

 

algoWatt, a GreenTech Company listed on the Euronext Milan market of the Italian Stock Exchange, is a subcontractor in the HYPER-5G project “Hybrid positioning engine running on 5G and GNSS”, financed with a grant of approximately Euro 400 thousand by the European Space Agency – ESA within the ESA NAVISP Element 2 programme.

The project aims to create a solution that enables the convergence of localisation systems based on the integration of the global satellite navigation system with the 5G network. Precise positioning will, in fact, undergo exponential growth with the advent of autonomous driving of cars, drones, robots and the technological development of smart devices. The continuous outdoor-to-indoor transition and vice versa, as well as the growing need for precise and reliable positioning in densely populated and built-up urban environments, must be based on 5G-GNSS hybrid positioning technologies. In this sense, the HYPER-5G project aims to study, design and develop the necessary algorithms and software to implement a precise positioning engine to jointly use GNSS and 5G multi-constellation observations, also exploiting GNSS PPP-RTK techniques.   

5G signals can be used to derive an accurate location for receiving devices. While most users today rely on GNSS positioning, the hybridisation of 5G and GNSS can provide several advantages in terms of availability, accuracy in urban environments and seamless outdoor-indoor positioning.

AlgoWatt’s participation in the project will enable the company to further develop its technical expertise on 5G and GNSS and to refine the technologies already available in its solution portfolio for: geodetic and environmental precision monitoring of critical infrastructures and natural hazards (GeoGuard suite); Intelligent Transportation Systems (ITS) applications for sustainable mobility (MyMaaS suite); advanced drone-based services (e.g. Operation & Maintenance of renewable energy plants, ER-PAM suite).

The two-year project is coordinated by GReD (Geomatics Research & Development), and will also involve the Politecnico di Milano and Vodafone.

29Mar 2022
  • A renewed strategic vision in the light of the signing of the Recovery Plan and the Financial Agreement, the recovery of financial solidity and the enhancement of contextual factors, which place algoWatt in an attractive business
  • In the plan: strengthening of governance and optimisation of the corporate and commercial structure towards the achievement of targets
  • Defined 6 strategic levers to accelerate revenue and EBITDA generation resulting in reduced risk, integration of activities to complete the digital energy and cleantech value chain
  • Scouting for M&A transactions in compliance with the Recovery Plan and the Financial Agreement and using the treasury shares portfolio
  • Revenues over the three-year period: approximately Euro 92 million (CAGR 2022-24 +5.34%); increase in margins and profitability; progressive reduction in NFP and simultaneous growth in shareholders’ equity with improvement in all ratios

 

The Board of Directors of algoWatt, a GreenTech Company listed on the Euronext Milan market of Borsa Italiana, met today under the chairmanship of Stefano Neri and approved the 2022-2024 business plan “Leading the clean energy transition”.

The plan will be illustrated to the financial community today in a webcast on the company’s website www.algowatt.com and on Specialist Integrae SIM’s website www.integrae.it at 15.30 CET by the Chairman of algoWatt Stefano Neri, CEO Paolo Piccini, General Manager Idilio Ciuffarella and CFO Filippo Calisti.

 

“LEADING THE CLEAN ENERGY TRANSITION: MAIN ASSUMPTIONS

algoWatt aims to establish itself as the cutting edge of the Italian GreenTech industry with a mission to “enable digital transformation and the energy and ecological transition through smart technologies, enabling customers and consumers to use resources in a more sustainable way”.

The new corporate configuration and positioning in the market for digital integration of products and/or services that improve operational performance while reducing costs, energy consumption, waste and negative effects on the environment result from the operational and industrial turnaround following the signing of the Recovery Plan and Financial Agreement in June 2021.

Thanks to this agreement, which saw Bondholders and Banks express confidence in the resilience of the Company, algoWatt reduced its financial debt (almost constant since 2018) from 66.9 million euros in 2020 to 14.1 million euros at the end of the year to 31 December 2021. In addition to this energetic debt reduction manoeuvre, there was also the deconsolidation of debt linked to industrial plants, functional to the old business model and destined for sale, for a total of more than €12 million.

Thanks to the Restructuring Plan, the Financial Agreement and the merger between TerniEnergia and Softeco, is thus delivered to the capital market a new player that leaves the Utility sector and enters the Digital one, with the identity of GreenTech company. A new identity in line with the most attractive megatrends, which concern the pervasive digitalization of all industrial sectors and the ecological and energy transition.

algoWatt’s industrial objectives also appear to be fully consistent with the objectives of decarbonising the economy and consumption, in line with the targets set by the European Union as part of the Green Deal and by the national government with the National Recovery and Resilience Plan. These instruments are accompanied by a unique and highly favourable regulatory framework for digital innovation, which has become the strategic axis of all modernisation and growth recovery programmes.

The execution of the Plan, the approach to new reference markets and the change in the business model were also accelerated through a renewal and strengthening of governance. The Chief Executive Officer, Paolo Piccini, who has been entrusted with the challenge of growth in line with the objectives of the Plan, has been joined by the new General Manager, Idilio Ciuffarella, who brings to the company management consolidated skills and a solid professional track record in the technology and innovation sectors.

Lastly, a renewal and strengthening of the company organisation was launched, with the elimination of the three Business Units in favour of a leaner and more efficient structure, based on divisions that respond to customer needs, such as a unified software factory, a centralised project management and solution delivery system, and a strengthened commercial structure.

 

“LEADING THE CLEAN ENERGY TRANSITION: MAIN STRATEGIC OBJECTIVES

The Plan bases its growth prospects on the integration of business-as-usual activities and six new levers for accelerating turnover development, increasing order intake and increasing turnover:

Partnership with top technology providers

  • Value-added reselling (VAR) of key photovoltaic components (inverters and storage), through the expertise, track record and references of the former TerniEnergia;
  • Expansion of the “Virtual Product Portfolio”, with a focus on the Energy Intensive and Datacentre Sectors, with the implementation of HW components (UPS and Cooling Systems) which, integrated with the proprietary Supervision and Monitoring System (ER-BEMS, Building Energy Management System), make it possible to offer a bouquet of extended energy efficiency solutions;
  • EV Chargers: Industrial support in the development of a complete system of charging stations from high-tech battery charging modules.

Partnership with Player/Utility in the Energy and Environment domain

  • Turnkey solutions for Energy Communities (ERCs) with the following activities: Technical/financial/legal consultancy; Business model promotion; SW platform; Micro grid supply in place;
  • Solutions for Virtual Power Plant (VPP) and energy resource aggregators to improve energy production, grid flexibility and to exchange or sell energy on the electricity market;
  • Cleantech industry digitisation services for the ecological transition, such as – for example – software, platforms and solutions for advanced collection and management services, smart bins, robotics, apps, analytical tools and decision support software;
  • Partnerships with the “stewardship” model with companies in the environmental sector with the aim of proposing products to be customised, developing new products and services with costs covered by the partners at advantageous conditions, monitoring opportunities for potential extraordinary operations.

General Contracting

  • Expansion of the pipeline dedicated to activities related to the energy efficiency of buildings with the 110% Superbonus and acceleration of construction sites through an agreement with a commercial/financial partner;
  • System Integration for critical infrastructures with implementation of HW and SW dedicated to the digitalisation of services, based on the company’s track record (e.g. Caronte & Tourist ticketing terminal)
  • Turnkey installation for the reduction and management of energy consumption of energy-hungry companies or complex structures with innovative formulas such as PPAs and CERs (e.g. industrial sites, buildings, public administration).

Revitalisation/Revitalisation of PV business

  • Valuing the solid references (over 400 MW installed) national and international and the value of the brand of the former TerniEnergia, it will be possible to use the subsidiary TerniEnergia Progetti for O&M activities (including PAM/PV Inspector and Sundrone) and for the management of co-development and EPC activities for utility scale plants below 4MW, with facilitated permits and Agrivoltaic.

Internationalisation

  • Process of international expansion of markets through subsidiaries in Greece (strong development and market value of about 5 GW/year) and South Africa (historic market of TerniEnergia with 6 GW/year of new photovoltaic installations), using the commercial presence and high-level project capabilities as business differentiation.

M&A potential

Acquisition assessments on 3 sectors (alternatively):

  • Smart Building/Smart City (System Integration for the Efficiency of Buildings of Highly Energy Intensive Customers)
  • Digitisation of Environmental Systems
  • Billing (recovery of former Softeco’s historic Italian leadership in this sector)

The ongoing evaluations are focused on different realities, in line with the Restructuring Plan and foreseeing the use of the portfolio of treasury shares available to the Company. If the evaluations are not successful, the M&A transactions will be converted into Partnership/Stewardship for the provision of services.

 

“LEADING THE CLEAN ENERGY TRANSITION: THE PLAN IN FIGURES

algoWatt expects a significant increase in revenue and profitability by 2024 and, at the same time, a further reduction in NFP.

The Plan estimates a growth in value of production (CAGR 2022-2024) of 5.34%, for approximately €92 million over the three-year period, with intermediate targets of approximately €28 million in 2022, €31 million in 2023, €38 million in 2024, with an increase in revenues deriving from the six new business development levers supporting strategic growth.

Ebitda over the plan period is expected to grow by 9.4%, estimated at approximately Euro 4.5 million in 2022 (Ebitda Margin 16.8%), Euro 5.5 million in 2023 (Ebitda Margin 18.5%) and Euro 6 million (Ebitda Margin 8.8%) in 2024. Ebit will grow at a CAGR of 4.8%, with intermediate targets of approximately €1 million in 2022, €2 million in 2023 and €2.5 million in 2024.

Thanks to the new financial structure, the Net Financial Position will decrease over the period of the Plan with targets of approximately € 12 million in 2022, € 10 million in 2023 and € 7 million in 2024. Shareholders’ equity will grow, reaching approximately €12 million in 2022, €13 million in 2023 and €15 million in 2024. The ratios improve significantly: in particular, the NFP/EBITDA ratio will decrease from 1x in 2022, to 0.8x in 2023 and 0.5x in 2024. The NFP/EBITDA ratio will virtuously decrease from 2.7x in 2022, to 1.8x in 2023 to 1.2x in 2024.