Alfen N : Halfjaarlijkse financiële verslaggeving

Unaudited Condensed Interim Consolidated Financial Statements for the six months ended 30 June 2023

Alfen N.V.

Amsterdam, the Netherlands

Report of the Management Board

Condensed Interim Consolidated Financial Statements for the six months ended 30 June 2023

Condensed Interim Consolidated Statement of Comprehensive Income Condensed Interim Consolidated Statement of Financial Position Condensed Interim Consolidated Statement of Changes in Equity Condensed Interim Consolidated Statement of Cash Flows

Notes to the Condensed Interim Consolidated Financial Statements

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• Alfen | Semi-annual Report 2023

• Alfen | Semi-annual Report 2023

Report of the Management Board

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This semi-annual report of Alfen N.V. (hereafter "Alfen" or "the Company") for the six months ended 30 June 2023 consists of the semi-annual report of the management board of the Company (the "Management Board"), including the responsibility statement by the Management Board, and the Condensed Interim Consolidated Financial Statements and the accompanying notes. All information included in this report is unaudited.

The Management Board hereby declares that to the best of its knowledge, the semi-annual report of the Management Board gives a fair review of the information required pursuant to section 5:25d sub 8-9 of the Dutch Financial Markets Supervision Act ("Wet op het financieel toezicht") and the Condensed Interim Consolidated Financial Statements as at and for the six months ended 30 June 2023, which have been prepared in accordance with IAS 34 - Interim Financial Reporting as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit of the Company and the undertakings included in the consolidation taken as a whole.

Alfen is listed on the Amsterdam Stock Exchange.

Financial performance

Revenue and other income (in EUR million)

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Revenue and other income increased by 9% to €223.9 million in the first half-year of 2023 from €205.5 million in the first half-year of 2022.

In the EV Charging Equipment business line, H1 2023 revenue was €79.6m compared with €125.0m in the first half of 2022. This is a decline of 36%, driven by lower volume as the market destocks excess inventories from 2022.

The European market for EV charge points has a long-term growth trend with a CAGR of 15-20% from 2022 to 2027 (source: Guidehouse & BNEF). This long-term growth trend is also reflected in the first half of 2023 with growing EV adoption in European markets: 45% more battery EVs were registered than in the same period last year (source: ACEA).

In the Smart Grid Solutions business line, H1 2023 revenue grew 20% to €85.5m compared with €71.1m in the first half of 2022. Grid operators continued to expand and reinforce the distribution grid to support the energy transition.

• Alfen | Semi-annual Report 2023

Alfen continued to benefit from these plans with existing framework agreements with grid operators. Both the grid operator and the private networks segments contributed to our revenue growth. Alfen continues to prepare for a step change in growth in coming years as the grid operators scale up in their investment plans.

In the Energy Storage Systems business line, H1 2023 revenue increased 526% to €58.8m compared with €9.4m in the first half of 2022. The momentum in the energy storage market is powerful, mostly driven by continuous renewables growth and the need to balance electricity demand and supply. This revenue increase was driven by both our stationary systems ("TheBattery Elements") and our mobile systems ("TheBattery Mobile"). The pipeline of qualified leads and order intake continues to develop in a healthy manner.

Adjusted EBITDA (in EUR million)

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EBITDA and net profit

Profitability in the first half-year of 2023 deteriorated compared to the first half-year of 2022, mainly driven by a revenue mix shift from EV charging equipment to Energy storage systems. Consequently, the consolidated gross margin decreased and the fixed cost base within our EV charging equipment business line deleveraged compared to the first half-year of 2022.

EBITDA decreased with 44% from €36.4 million in HY1 2022 to €20.4 million in HY1 2023.

EBITDA adjustments in the first half-year of 2023 amounted to €0.7 million (versus €0.9 million in the first half-year of 2022) and solely comprised of share-based payment expenses associated with the Long-Term Incentive Plans (see Note 7).

Adjusted EBITDA amounted to €21.1 million, a decrease of 43% versus €37.3 million in the first half-year of 2022.

Net profit in the first half-year of 2023 amounted to €9.4 million (versus €24.6 million in the first half-year of 2022). Adjusted for one-off costs and special items after tax, net profit amounted to €10.1 million (versus €25.3 million in the first half-year of 2022).

The following summary reconciles EBITDA and net profit with the adjusted EBITDA and adjusted net profit:

(in EUR '000)	30 June 2023	30 June 2022
(Unaudited)	(Unaudited)
EBITDA	20,382	36,416
Alfen's 85 Years Anniversary	-	453
Share-based payment expenses	700	432
Adjusted EBITDA	21,082	37,301
Net profit / (loss)	9,380	24,552
Aggregated one-off costs and special items after tax	700	768
Adjusted Net profit / (loss)	10,080	25,320

Finance income and costs increased from €0.5 million in the first half-year of 2022 to €1.1 million in the first half-year of 2023 as a result of intensified working capital financing.

• Alfen | Semi-annual Report 2023