Company: Compleo Charging Solutions
List: XETRA, Frankfurt
Market cap: €176 MEUR at time of publication
Share price: € 40,3 at time of publication
Industry: Electric charging solutions
Market size: $25 Billion USD
ESGFIRE comment: Today (25/3) we participated in the capital market day for Compleo charging solutions. The growth plan presented was very impressive. We see an upside potential on Compleo shares by 950 % until 2025 which we elaborate on below.
Goal of Compleo Charging Solutions for 2025
560 million EURO revenues
10-15 % EBITDA margins
The goal consists of 3 segments
Charging stations 400 million Euros
Software 140 million Euros
Services 20 million Euros
Since we took our position we’re currently up 25 % on our shares in Compleo Charging Solutions. The company is very conservatively valued compared to peers and we remain very bullish. Based on a 20 X EBITDA Multiple Compleo Charging Solutions could, according to our estimates, by 2025 have a potential upside of 950 %.This is based on 15 % EBITDA margin on revenues of 560 Million euros it would equal an EBITDA result of 84 million euros. The company is also well financed with , according to the company, 50 million euros in Cash balance.
Press release in full below:
Compleo lays cornerstone for European market leadership and leap in sales to more than half a billion euros in 2025
Sales increase by 73% compared to the previous year | Adjusted EBITDA at EUR -9.8 million | Successful further strategic development to become a full-range provider of charging technologies and strengthening of the software portfolio | Dynamic growth course expected to continue in 2022 | Sales of more than EUR 500 million with an adjusted EBITDA margin of between 10% and 15% forecast by 2025 | First virtual Capital Markets Day today
Dortmund, March 25, 2022 – Based on preliminary, unaudited figures, Compleo Charging Solutions AG (“Compleo”), a leading European full-service provider of charging technologies, achieved total sales of EUR 57.5 million at Group level (2020: EUR 33.1 million). Compleo thus met its most recent sales forecast and continued to record steady growth in the past fiscal year. Key strategic milestones were achieved with the acquisition of innogy eMobility Solutions (“ieMS”) and the consolidation and full integration of Compleo Connect (formerly “wallbe GmbH”). With the acquisitions, Compleo is entering the SaaS-based software business and expanding its product range to include transaction-based charging models, cloud-based services, and payment and billing tools. At the same time, Compleo continued to drive its current product portfolio as well as the expansion of its sales activities in the European region.
Organic growth strategy successfully implemented through regional expansion and further product development
In line with its organic growth strategy, Compleo expanded its current product range in 2021 by launching the Compleo SOLO wallbox in the third quarter. Even before the market launch of the series, the company managed to sign a major contract with a German energy supplier for the shipment of the Compleo SOLO in the mid to upper four-digit range. This was supplemented in November by the signing of a letter of intent to supply 25,000 wallboxes starting in the third quarter of 2022 for a period of three years. In addition, the further development of the DC 200 kW HPC charging station and a DC 400 kW HPC charging solution for ultra-fast charging on highways, at service stations or at supermarkets has been accelerated. In order to participate in the tender of the Federal Ministry of Transport and Digital Infrastructure for the so-called “Germany Network,” a market launch is planned in the fourth quarter of 2022. At the same time, sales activities were driven forward in Switzerland, Austria, the UK and Sweden. With the approval of charging stations compliant with calibration laws in Austria, Compleo also sent a significant signal for the emerging European e-mobility industry. In order to be able to meet the expected high demand for Compleo’s solutions in Germany and abroad, an additional 5,100 sqm of production and logistics space was leased in addition to the current location (2,600 sqm of production space) as of February 1, 2021. Further expansion of its production capacities was carried out in Hungary in February 2022. This will increase local capacity by around 55,000 additional eBox wallboxes from ieMS per year. As of now, these additional charging boxes for the European market are already running from a new production line at the partner Videoton. The rationale behind the expansion is the high demand for wallboxes in Europe. In particular, the eBoxes smart, professional and touch are manufactured here.
Entry into SaaS-based software business and transaction-based fee models completed
Compleo also consistently pursued its inorganic growth strategy last year. Compleo Connect was successfully integrated into the Compleo Group in the first half of 2021. Since then, Compleo Connect has been enriching the Compleo Group’s product portfolio with complementary AC charging solutions as well as the leading billing and management system for charging infrastructures (incl. intelligent ad-hoc payment and billing functions with debit as well as credit cards). In the second half of 2021, Compleo moved forward with the acquisition of ieMS to further strengthen its strategically important software services business through the deep expertise of more than 110 experts as well as its leading backend system, which already covers more than 37,000 charging points in Europe. The acquisition of ieMS was successfully closed on January 1, 2022. With Compleo Connect and ieMS, Compleo has tapped into the SaaS-based software business as well as transaction-based charging model. By providing powerful and connected software platforms and complementary services, the company acts as a pioneer in the dynamic market for charging technology and is already able to offer appropriate solutions for various market and customer segments.
Development of key financial figures in fiscal year 2021
In the past fiscal year, Compleo succeeded in increasing its sales revenues by 73.5% from EUR 33.1 million to EUR 57.5 million. Among other factors, the successful integration of Compleo Connect was a key driver of the positive sales development in 2021. Sales of AC charging stations increased significantly from EUR 10.7 million in the previous year to EUR 14.3 million in the reporting period. By contrast, sales of DC charging stations that comply with calibration regulations fell slightly to EUR 11.3 million (2020: EUR 14.8 million). The areas of project and installation, as well as service, maintenance and other accounted for 13.6% of sales or EUR 7.8 million (2020: EUR 4.2 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for non-recurring items amounted to EUR -9.8 million (2020: EUR -2.7 million).
“In the past fiscal year, we laid the foundation for a sustainable and positive growth course in the years ahead. The expansion of our expertise in the SaaS-based software business and our complementary organic growth strategy will enable us to significantly increase our market share in the future. Overall, we have created excellent conditions in recent years to achieve our goal of developing Compleo into the European market leader for charging solutions,” explains Georg Griesemann, Co-CEO of Compleo.
Positive outlook for 2022
With effect from January 1, 2022, Compleo has restructured the business areas as well as the reporting segments. As a result, the reporting of the Compleo Group now reflects the three segments Charging Stations, Software and Services.
Accordingly, the Management Board expects total sales at Group level in a corridor of between EUR 115 million and EUR 135 million in fiscal year 2022. Accordingly, the threshold of 100-million euros in sales is to be reached for the first time in the company’s history. Sales of between EUR 8 and EUR 10 million are anticipated for the newly established Software segment, while sales of between EUR 100 million and EUR 105 million are expected for the Charging Stations segment. Sales of between EUR 7 million and EUR 10 million are forecast for the Services segment.
Due to the acquisition of Compleo Connect and ieMS, an inorganic contribution to sales in the mid double-digit million euro range is expected. At the same time, organic growth in the clear double-digit percentage range is anticipated.
For the fully consolidated Compleo Group, adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) for fiscal year 2022 are anticipated to be between EUR -25 million and EUR -30 million. A key factor here is the expected negative contribution to earnings due to the first-time consolidation of ieMS in fiscal year 2022.
Medium-term forecast of Group sales in excess of half a billion euros
In the years ahead, Compleo is planning to continue its dynamic sales growth and significantly increase its profitability. By 2025, the Management Board expects sales in the Charging Stations segment to increase to around EUR 400 million. In the Software segment, sales of around 140 million euros are projected in the medium term. In the Services segment, the Management Board anticipates an increase in sales to around EUR 20 million by 2025. At the same time, the Management Board plans to increase the Group’s profitability to an adjusted EBITDA margin in a target corridor of between 10% and 15%.
Capital Markets Day
The first virtual Capital Markets Day will take place today from 10 a.m. (CET) until an estimated 2 p.m. (CET). Further information on the schedule and the opportunity to register can be found at https://ir.compleo-cs.com/ir-kontakt/finanzkalender/capital-markets-day.
The full report on fiscal year 2021 will be made available by Compleo on April 28, 2022, on the company’s website https://ir.compleo-cs.com/ in the “Publications” section.
Compleo Charging Solutions AG is one of the leading full-service providers of charging technology in Europe. The company supports its business customers with its charging technologies as well as its charging stations, the software of the charging infrastructure and, if required, also with planning, installation, maintenance and service. Compleo’s offering includes both AC and DC charging stations. DC charging stations from Compleo are the first DC charging stations on the market that comply with calibration regulations. The company is headquartered in Dortmund, Germany, with production facilities located in Paderborn, Germany, in addition to Dortmund. The manufacturer focuses on innovation, safety, consumer-friendliness and cost-effectiveness. Its customers include Aldi, Allego, Clever, E.ON, EWE Go, Daimler, Siemens and more than 300 municipal utilities in Germany. Compleo started production of its first charging stations in 2009. The fast-growing company currently employs more than 550 people. Compleo is listed in the Prime Standard segment of the Frankfurt Stock Exchange (ISIN: DE000A2QDNX9). In April 2021, Compleo acquired 100 percent of the shares in wallbe GmbH, now Compleo Connect GmbH, and in January 2022 Compleo acquired 100 percent of the shares in innogy eMobility Solutions GmbH. More info at: compleo-cs.com/
We plan to subscribe for shares of this company personally in the current private placement.
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