REG - Pod Point Group Hdgs - Energy Flex Capital Market Event

Pod Point groupAnnouncement

10/07/2024 07:00

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RNS Number : 7638V  Pod Point Group Holdings PLC  10 July 2024

10 July 2024

 

 

Pod Point Group Holdings plc

(the "Company", the "Group" or "Pod Point")

 

 

Energy Flex Capital Market Event

Pod Point, a leading provider of electric vehicle charging solutions in the
UK, will host a capital markets event later today on its Energy Flex business.
A recording of the presentation will be available via the Company investor
website at https://investors.pod-point.com (https://investors.pod-point.com) .

Energy Flex: essential for the UK's journey to Net Zero

Energy generation in the UK is migrating to renewable energy, which is less
predictable than fossil fuels and nuclear.  At the same time, energy demands
are rapidly increasing with electrification of transport, heating, and the
journey to Net Zero. The combination of these trends makes it harder to
balance supply and demand for the grid.  Energy Flex, the moving of
short-term supply and demand, creates value in the UK's electricity supply in
three ways:  1) reducing the required level of infrastructure capex, 2)
arbitraging electricity pricing and 3) ensuring security of supply. This is
delivered by offering the capability to time-shift demand within managed
parameters.

Energy Flex: an established, large market, highly addressable for Pod Point

The Energy Flex market is estimated to be worth almost £2bn in 2024(1).  The
market is expected to grow by over 50% by 2028 to £3bn, driven by the energy
transition to Net Zero, with significant long-term growth expected beyond
then. Pod Point's existing network of nearly 250,000 connected chargepoints
represent flex capacity equivalent to a nuclear power station, which can be
monetised with minimal capex.

Within the total Energy Flex sector, there are six main markets of
opportunity: Distribution System Operator (DSO); Balancing Mechanism;
Frequency; Capacity Market; Wholesale trading; and Non-Energy Costs. Pod Point
is currently operating in the smallest of these markets, the DSO market, and
will be entering into other parts of the Energy Flex market.  The Group
delivered its maiden revenues from Energy Flex in Q4 2023 and is on track to
deliver its upgraded target of £300,000 revenues in 2024. Across these
markets, Pod Point research has established that there is potential Flex value
per household per annum of c.£250.

Pod Point: transitioning to a high margin recurring revenue model

A key pillar of the Powering Up strategy for Pod Point is driving customer
lifetime value through Energy Flex and recurring revenues.  The strategic
focus on Home and Workplace, where chargepoint dwell time is the longest, will
give Pod Point the maximum opportunity to continue developing high-margin
Energy Flex profit streams.

As previously disclosed, the Group believe each participating chargepoint will
be worth £40-50 per annum to Pod Point.  Average lifetime of the Pod Point
chargers is seven years.  Assuming customer acquisition costs of around
£100-125 and improving contribution margin from chargepoint sales, the
long-term value creation potential from achieving the Group's target of 1
million customers is significant.

Pod Point is well positioned to capture much of the value unlocked by Energy
Flex. In addition to its pivotal position as the chargepoint controller, the
Group's trusted brand, market-leading scale and data capabilities give it
unique competitive advantages in the new market.

Significant progress in the early phases of Energy Flex development

Pod Point has already proven the value potential of Flex, having signed
several Energy Flex contracts with multiple parties and having delivered
revenues ahead of expectations.  Pod Point has helped customers shift over
450MWh to date in the local DSO market, with over 100,000 flex events.  The
Group has rewarded customers for their participation in Energy Flex and will
launch its Home consumer app later this year. This consumer proposition will
drive loyalty, engagement and customer acquisition by sharing some of the
benefits of Flex value with the consumer.

Pod Point has two pilots under way, with Centrica and EDF.  The Centrica
pilot includes Pod Points entry into the Balancing Market. Over 3,000
customers are participating in these trials and receiving rewards that reduce
the cost of their electricity.

A clear roadmap for 2024 and 2025 in building full technical and commercial
potential

Pod Point will build on its successes to date with further advances in 2024
and in 2025.  The Group expects to sign contracts with the remaining UK DSOs
during 2024, establishing its leading position in the market. This will
support the launch of a full smart charging offer including a new Home app,
delivering one of the Group's nine operational KPIs for the year.  Pod Point
previously delivered its operational KPIs of entering a new Energy Flex market
and achieving £100,000 of revenue and is on track to deliver its upgraded
target of £300k revenues in 2024.

Pod Point plans to enter the Capacity Market, which is at least 3x bigger than
the DSO market, in 2025.  Finally, the Group expects to take advantage of the
regulatory tailwind from P415, which would allow it to access the wholesale
energy markets.

Pilgrim Beart, VP Energy Flex, said:

"Pod Point is playing a key role in solving the trilemma of affordable energy,
reliable supply and helping the environment.  We are a trusted brand for
consumers, have one of the largest EV charging networks in the UK, and have
fantastic data and experience to be a winner in the Energy Flex market."

Melanie Lane, Pod Point CEO, said:

"Pod Point has made great progress in commercialising Energy Flex, having
already delivered tangible financial results and partnered with key industry
players such as EDF, Centrica and UK Power Network.  As we set out in our
Powering Up strategy, Energy Flex is a key driver of our customer lifetime
value model and will create significant shareholder value over time.  We are
firmly on track to deliver our upgraded revenue target and to launch our
consumer Home app in 2024.  This represents a win-win-win, with consumers
getting cheaper and greener charging, grid partners reducing costs, and Pod
Point creating high value recurring revenues."

 

To join the webcast, please register at
https://bit.ly/PODP_Flex_Capital_Markets_Event
(https://bit.ly/PODP_Flex_Capital_Markets_Event)

 

Webinar ID: 865 8244 5758

(1 Source:) (Proprietary analysis, Elexon, National Grid ESO data portal,
UKPN)

 

Enquiries:

 

 Pod Point Plc                                                                                                                     phil.clark@pod-point.com

 Melanie Lane, Chief Executive Officer

 David Wolffe, Chief Financial Officer

 Phil Clark, Investor Relations

 Panmure Liberum (Joint Corporate Broker)                                                                                          +44 (0)20 3100 2000

 Edward Mansfield, Amrit Mahbubani

 Canaccord (Joint Corporate Broker)                                                                                                +44 (0)20 7523 8150

 Bobbie Hilliam, Harry Pardoe

 Media                                                                                                                             +44 (0)20 7353 4200 4200 PodPoint@teneo.com (mailto:PodPoint@teneo.com)

 Matt Low / Arthur Rogers
 (Teneo)

 

 

About Pod Point Group Holdings plc

Pod Point was founded in 2009. Driven by a belief that driving shouldn't cost
the earth, Pod Point is building the infrastructure needed to enable the mass
adoption of electric vehicles and to make living with an EV easy and
affordable for everyone. As at 30 June 2024 the company has shipped more than
230k chargepoints on its network in the UK and is an official chargepoint
supplier for major car brands.

Pod Point works with a broad range of organisations and customers to offer
home and commercial charging solutions.

Pod Point is admitted to trading on the London Stock Exchange under the ticker
symbol "PODP."

 

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