McPhy 2022 Annual Results Accelerated Investment and Solid Cash Position
07/03/2023 17:15
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Press release
* Annual revenue of €16.1 million, driven by strong growth of +37% in the
second half of the year
* Increase in the backlog(1) to €30.6 million, i.e. a growth of +51%
generated by strong firm order intake in 2022
* EBITDA of €(36.8) million within the expected range
* Net result of €(38.2) million, benefiting from a positive financial result
* Cash position of €135.5 million as of 31 December 2022 enabling growth
funding
Grenoble, March 7, 2023 - 5:45 pm CET - McPhy Energy, specialized in
low-carbon hydrogen production and distribution equipment (electrolyzers and
refueling stations), today announces its consolidated results for the
financial year 2022, ended December 31, approved today by the Company's Board
of Directors(2).
Simplified P&L(3)
(€ million) 2022 2021 Change
Revenue 16.1 13.1 +22%
Other operating income 1.9 1.5 +27%
Income from Operating Activities 17.9 14.6 +23%
Purchases consumed (15.9) (10.5) +51%
Personal costs (17.7) (11.6) +52%
External costs (21.1) (8.0) +169%
EBITDA (36.8) (15.5)
Depreciation, amortization and net provisions (1.6) (8.0) (81%)
Operating Income (EBIT) (38.4) (23.5)
Financial Result 0.4 (0.1) n.s.
Income Tax (0.1) (0.0) n.s.
Net Result (38.2) (23.6)
Jean-Baptiste Lucas, CEO of McPhy, states: "In 2022, McPhy has achieved
several key milestones towards its industrial scale-up in a market context
displaying the first signs of acceleration. Indeed, large-scale projects have
materialized and will certainly expand in the coming years to reach the carbon
neutrality objectives set by the French government and European institutions.
To meet this challenge, we have significantly increased the production
capacity of our two product lines. Small and medium-capacity electrolyzers on
the San Miniato site, which is now automated for mass production.
Large-capacity electrolyzers through the start of construction of our
Gigafactory in Belfort. As for the refueling stations, we are now located in
Grenoble in a new factory which will enable us to produce 150 hydrogen
distribution stations per year over time. This site brings together all our
teams and is now the company's headquarters. From a commercial perspective,
McPhy has recorded at the end of the year a first major contract in the
industry with one of the world's largest steel manufacturers. This project
confirms the tremendous potential of low-carbon hydrogen in manufacturing
applications. We now have two challenges to meet: accelerating our commercial
penetration and pursuing the industrialization of mass production of reliable
and competitive high-capacity equipment. To achieve such objectives, our
roadmap is based on two priorities: the continuation of our industrialization
phase and the development of our technological enhancements. In this respect,
we can count on accelerated market growth, a solid balance sheet and the
support of our partners. All these elements are assets to achieve McPhy's
ambition to play a leading role in the future of low-carbon hydrogen”.
Return to sustained sales growth in 2022 and strong order intake
Revenue for fiscal year 2022 increase by 22%, compare to 2021, to €16.1
million. Restated for the takeover of two old generation stations sold during
previous years (which amount deducted from the revenue of the first half of
the year), revenue would be €18.3 million compared to €13.1 million in
2021, i.e. a growth of +39%. This return to growth primarily results from the
execution of the first orders under the major contracts signed over the past
years. Sales are split between the supply of large capacity electrolyzers from
the McLyzer and Piel range (68%) and the supply of stations (32%).
In addition, McPhy recorded a strong growth of +53% in firm order intake to
€29.4 million, bringing the order backlog to €30.6 million as of December
31, 2022, up +51% compared to December 31, 2021.
As of 31 December 2022, McPhy had a portfolio of projects signed, commissioned
and/or under execution representing a cumulative 45 MW for the supply of
electrolyzers and 40 stations.
The Group has furthermore been identified as a preferred partner and/or
selected as a supplier for a total capacity of 148 MW and 56 stations,
bringing its portfolio of opportunities to 193 MW for the supply of
electrolyzers and 96 for the supply of stations.
Operating result reflecting growth investments
In fiscal year 2022, to support the expected growth in its business, the Group
has continued its development strategy. This has resulted in an increase in
current expenses linked to :
* the structuring of the teams and active recruitment plan;
* innovation and R&D expenditure related to the improvement of current
products and the development of its new ranges of electrolyzers and stations;
* the strengthening of its engineering resources for the executionof customer
projects.
In this context, personnel expenses increased by approximately €6 million in
2022, as a result of the recruitment of 85 new employees, and reached €17.7
million. Other external expenses amounted to €21.1 million, a significant
increase due to the Group's commitment to structuring and enhancing its
industrial, engineering and R&D activities (subcontracting services,
prospection costs, technical expertise).
EBITDA, which includes for an amount of €1.6 million the share of IPCEI
grant(4) applicable to the eligible expenses over the period, stands at
€(36.8) million and is within the range announced at the time of the annual
revenue publication.
The Operating result is €(38.4) million, with no significant difference to
EBITDA, unlike the previous year. This is explained by changes in provisions
related to the Energiedienst incident in 2021, including a reversal with
utilization of €2.6 million in 2022 (prior year accrual was €4.5 million):
restated for these items, net provisions are comparable year-on-year.
Taking into account a positive financial result, the Net Result standsat
€(38.2) million, compared to €(23.6) million in 2021.
Solid cash position as of December 31, 2022
Net cash consumption was €(41.7) million in fiscal year 2022, including:
* cash flow from operating activities of €(43.7) million (excluding the
IPCEI4 operating grant), due to the change in EBITDA and a €(7.8) million
change in working capital requirements;
* this net working capital requirement is explained by the sustained growth
and the increase in inventories, due to the anticipated procurement of some
critical components;
* the initial payment of the IPCEI4 public aid for an amount of €26.9
million, including the €1.6 million deduction for the share taken to the
profit and loss statement;
* the investments necessary for the Group’s scale-up amounting to €(13.1)
million, of which €(7.7) million dedicated to the Gigafactory;
* the financial investment of €(12.4) million in the Hype convertible bonds
subscribed as part of the strategic partnership concluded in December 2021.
As a result, McPhy holds a cash position of €135.5 million as of December
31, 2022 compared to €177.2 million as of December 31, 2021.
Acceleration of industrial scale-up with the launch of the Gigafactory project
In the framework of the eligibility of its electrolyzer Gigafactory project to
the European IPCEI4 scheme, the Company concluded a public aid agreement with
the French State through Bpifrance, for a maximum amount of €114 million.
Following the signature of this agreement, McPhy has made its final investment
decision and received a first payment of €28.5 million from Bpifrance in the
last quarter of 2022. Work has already started on the commissioning of the
future plant in Belfort, with a launch scheduled for the first half of 2024,
followed by a gradual ramp-up to reach an annual production capacity of 1 GW.
The amount of investments dedicated to the Gigafactory should be around €25
million for the year 2023.
Concurrently, McPhy has continued its efforts to scale up the electrolyzer
part of the business by increasing its production capacity to 300 MW at its
San Miniato site, in order to meet market demand while awaiting the
commissioning of the Gigafactory.
For the stations business, McPhy has finalized the regrouping of all the
activities of this business line on its new site in the heart of Grenoble in
an existing industrial building of more than 4,000 sqm. This new site will
have a production capacity of 150 stations per year.
Outlook
The level of its backlog and the continued ramp-up of the hydrogen market
allow McPhy to anticipate another year of sustained growth in 2023.
The annual financial report will be made available as part of its 2022
Universal Registration Document no later than April 30, 2023, on the Company's
Investor website, in the “Financial reports
(https://www.globenewswire.com/Tracker?data=Ul88ZBo2Dsnh8sQ682KCkheRJRefP5RX-9CvQkCMGrXQgLxx2rfghXLi6myVwZkv2jdxP8BR58tEEjHXopdJSiYBYNXqMT85KbfvmlIb437R5Eo6WdAhXtuq1PohzKwLTh6j6nII4QDPWFFIWx-wykpUmYASm80IG9csif1ldRU=)”
section (https://www.mcphy-finance.com).
Upcoming financial events :
* Annual General Meeting, on May 24, 2023
* 2023 First-Half Results, on July 27, 2023, after market close
ABOUT MCPHY
Specialized in hydrogen production and distribution equipment, McPhy is
contributing to the global deployment of low-carbon hydrogen as a solution for
energy transition. With its complete range of products dedicated to the
industrial, mobility and energy sectors, McPhy offers its customers turnkey
solutions adapted to their applications in industrial raw material supply,
recharging of fuel cell electric vehicles or storage and recovery of
electricity surplus based on renewable sources. As designer, manufacturer and
integrator of hydrogen equipment since 2008, McPhy has three development,
engineering and production centers in Europe (France, Italy, Germany). Its
international subsidiaries provide broad commercial coverage for its
innovative hydrogen solutions. McPhy is listed on Euronext Paris (compartment
B, ISIN code: FR0011742329, MCPHY).
CONTACTS
NewCap
Investor Relations Emmanuel Huynh T. +33 (0)1 44 71 94 99 mcphy@newcap.eu Press relations Nicolas Merigeau T. +33 (0)1 44 71 94 98 mcphy@newcap.eu
Follow us on
@McPhyEnergy
APPENDICES
Cash-flow Statement
(€ million)
2022 2021
Net result (38.2) (23.6)
Cash-flow from operations (35.9) (15.8)
Working capital requirement (7.8) 4.5
Operating subsidies received 26.9 -
Net cash flow from operating activities (16.9) (11.3)
Net cash flow from investing activities (23.0) (5.1)
Net cash flow from financing activities (1.6) (4.0)
Change in cash and cash equivalents (41.7) (20,5)
Closing cash position 135.5 177.2
The audit procedures have been carried out and the audit report on the
certification is being issued.
Balance Sheet Statement
Assets (€ million)
2022 2021
Goodwill 2.5 2.5
Intangible assets 7.6 3.7
Tangible assets 18.1 4.8
Other non-current assets 12.9 0.5
Non-current assets 41.1 11.5
Inventories 12.0 4.3
Trade and other receivables 19.1 11.1
Current tax assets 1.1 0.7
Cash and cash equivalents 135.5 177.2
Current assets 167.7 193.2
TOTAL ASSETS 208.8 204.8
Liabilities (€ million)
2022 2021
Share capital 3.4 3.4
Premium issued 191.6 201.9
Treasury shares (0.9) (1.2)
Retained earnings (59.2) (31.4)
Shareholders' Equity 134.9 172.6
Investment grants 2.5 -
Provision - over 1 year 2.5 2.2
Financial debt & borrowings - over 1 year 4.5 3.5
Deferred tax liabilities 0.7 0.6
Non-current liabilities 10.2 6.4
Provisions - under 1 year 5.7 6.5
Financial debt & borrowings - under 1 year 1.6 1.1
Trade and other payables 18.2 6.7
Other current liabilities 38.2 11.5
Current liabilities 63.7 25.8
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 208.8 204.8
The audit procedures have been carried out and the audit report on the
certification is being issued.
(1) Order intake not yet recorded as revenue
(2) The Group's statutory and consolidated financial statements will be
formally approved by the Board of Directors on April 6, 2023
(3) The audit work is in progress and the statutory auditors plan to issue
their reports after Board of Directors’ approval
(4) IPCEI ("Important Project of Common European Interest") is a funding
scheme that supports projects deemed essential for Europe's competitiveness,
allowing state members to fund initiatives beyond the limits usually set by
European regulations. A PIIEC or IPCEI Hydrogen was launched on 17 December
2020 and the Group's electrolyzer Gigafactory project validated by the
European Commission in July 2022.
Attachment
* 07.03.23.McPhy_PR 2022 Results
(https://ml-eu.globenewswire.com/Resource/Download/e04a0124-457d-4aba-8aac-ea6e89a09947)
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