Smart charging solutions aim to optimize electric vehicle charging through controlled, bidirectional, and vehicle-to-grid integration. As smart charging adoption increases, annual revenue potential in Europe could reach £4.3 billion by 2030. Business models are maturing from cost savings to new revenue streams like flexibility trading. Investment is accelerating, with deal count and average size up in 2022, as strategic and institutional investors pursue opportunities in the growing market.
Value Proposition canvas- Customer needs and pains
MOVING TOWARDS MASS-SCALE SMART CHARGING SOLUTIONS
1. MOVING TOWARDS MASS-SCALE SMART
CHARGING SOLUTIONS
Dominique Houde
June 27, 2022
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2. Disclaimer
The material in this Presentation (“Deck”) is based upon information that we consider to be reliable, but IMPROVED Corporate Finance UK Ltd. and its associated Laven Advisors LLP and US broker-dealer
Tangent Capital Partners, LLC, through whom interests in the Company may be offered – collectively, (“ImprovedCF”) does not warrant its completeness, accuracy or adequacy and it should not be relied
upon as such. Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice and neither the Company nor ImprovedCF has any
obligation to update the included material in the event of any change. The Company is not responsible for any error or omissions or for results obtained from the use of this information.
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4. 30+ landmark transactions in the Mobility domain
professionals, 20 focussed on e-Mobility
10+ Senior Advisor team of ex-board member and c-level
operating expertise
+10,000 Corporate/investor relationships across the globe
at decision-making level
MOBILITY
INDUSTRY
EXPERTS
Premier corporate finance boutique in Technology,
Energy and Mobility (“TEM”)
Team of 20 specialist dealmakers and sector experts
Presence in 8 cities from APAC to the US with offices in
Amsterdam and London
Over 100 transactions with mid-market TEM focus,
90% of the transactions were cross-border
Over EUR 3.5bn in transaction volume completed
LEADING GLOBAL
CORPORATE
FINANCE FIRM
IMPROVED CORPORATE FINANCE - INTRODUCTION
4
Dominique Houde
Partner
+44 7387 5560 92
houde@improvedcf.com
Daniel Lyons
Managing Director
+44 7803 2998 52
lyons@improvedcf.com
Team members present at EV
Charging Infrastructure
5. TRACK RECORD & EXPERTISE
WE HAVE BEEN IN E-MOBILITY AND EV CHARGING DEAL-MAKING SINCE THE START,
SPANNING KEY GEOGRAPHIES AND BUSINESS MODELS
5
6. Company Country Sector Exit
Spain E-Mobility
IPO via SPAC, EUR 1.27bn
valuation
Netherlands E-Mobility
Acquired by ChargePoint, EUR
75mn
Germany E-Mobility
Acquired by Shell, undisclosed
amount
Denmark Hydrogen IPO raising EUR 148mn
France Energy Storage
IPO raising EUR 100mn
with valuation of
EUR 385.8mn
Finland Advanced Materials
IPO raising EUR 115mn
with approx. EUR 390mn
market cap
France Hydrogen
IPO raising EUR 84.6mn
with approx. EUR 384mn market
cap
TRACK RECORD & EXPERTISE
RECORD YEAR IN CLEANTECH AND E-MOBILITY INFRASTRUCTURE DEALMAKING IN 2021
Source: 1) inspiratia | dataLive, 2) Cleantech Group 6
0
5
10
15
20
25
Deal
Count
DC
Advisory
Macquarie
Capital
IMPROVED
Corporate
Finance
EY KPMG Deloitte Goldman
Sachs
ACS
Barclays PwC
EUR 1.7bn+
in E-Mobility Infrastructure
transaction volume
10
Landmark transactions in
e-Mobility Infrastructure
90%
Cross-border
Cleantech for Europe – Annual Briefing
Top Cleantech Exits in Europe in 2021
inspiratia Global Infrastructure League Tables
Top 10 financial advisors by deal count, Q1 – Q4 2021
Top 3 Cleantech Exits 2021 were managed by IMPROVED
8. SMART CHARGING RESEARCH
SMART CHARING WHITE PAPER CO-AUTHORED WITH THE P3 GROUP (Q1, 2022)
8
Limited analysis and overview has been put together to
analyse and demystify the smart charging sector and its
economic potential.
Hence, IMPROVED and P3 decided to publish a dedicated
white paper, covering;
• Various Business Models
- Complexity
- Interactivity with energy systems
• Economic Potential
• Timing of commercial mass-deployment
RESEARCH RATIONALE
Smart Charging represents a significant pool of value in additional annual revenue of GBP 4.3bn in Europe by 2030
9. DEFINITION OF SMART CHARGING
WHAT IS SMART CHARGING? BUSINESS MODELS AND TIMING
Optimisation of unidirectional
charging sessions via smart control
of energy flow and distribution
amongst charging stations,
allowing to optimise pricing
Ability of EVs to feed energy back
to other consumers behind the
meter to optimize consumption
and act as local storage
Interaction of EVs, either uni- or
bidirectionally with the energy
grid for stabilization or
optimization of grid
COMMERCIAL MASS DEPLOYMENT
COMPLEXITY
&
SMART
CONNECTIVITY
CONTROLLED
CHARGING
BIDIRECTIONAL
CHARGING
(behind the meter)
VEHICLE-GRID-
INTEGRATION
(in front of the meter)
Energy flow
(bidirectional)
Electric
Vehicle
(EV)
AC/DC
Charging
System
House Grid
Energy flow
(unidirectional)
Electric
Vehicle (EV)
AC/DC
Charging
System
Grid
2018
2022/23
Energy flow
(bidirectional)
Electric
Vehicle (EV)
AC/DC
Charging
System
Grid
2025+
9
10. BUSINESS MODELS & POTENTIAL
BUSINESS MODELS SHOW CLEAR DYNAMICS FROM FOCUS ON COST-SAVING AND –
OPTIMISATION TO TAP INTO NEW REVENUE POOLS
10
CONTROLLED
CHARGING
BIDIRECTIONAL
CHARGING
(behind the meter)
VEHICLE-GRID-
INTEGRATION
(in front of the meter)
BUSINESS
MODELS
52 – 80 GBP/EV/a
EXEMPLARY
REVENUE
POTENTIAL
70 – 85 GBP/EV/a
4,300 GBP one-time costs
+ 35 – 45 GBP /EV/a
~85 – 105 GBP/EV/a
+ 215 / 345 GBP/CP/a from trading
Technology provision
(software or smart hardware to
control loads locally)
FOCUS
COST SAVING & EFFICIENCY
NEW REVENUE POOLS
Technology provision
(mainly software and bi-directional
hardware as major driver with initial
rollout)
Technology Provision
(mostly software and energy
management systems)
Flexibility trading
(bundling of EV battery capacities
to trade to the market)
4,300 GBP one-time costs
+ 35 – 45 GBP /EV/a
~85 – 105 GBP/EV/a
+ 215 / 345 GBP/CP/a from trading
Source: P3 Business Models (2021)
*GBP/Euro exchange rate as per 22/06/22 was applied
11. MARKET VOLUME
SMART CHARGING IS PROVIDING ADDITIONAL ANNUAL REVENUE POTENTIAL OF UP TO
4.3 BN GBP BY 2030 IN EU MARKET
Source: P3 Market Model (2021)
*GBP/Euro exchange rate as per 22/06/22 was applied
11
28%
2030
2021
46%
26%
2025
23%
46%
31%
Vehicle-Grid-Integration
Bidirectional Charging
Controlled Charging
Overview of Annual Revenue Potential from Smart Charging in Europe (in GBP)
• Bottom-up market model takes into account
potential use cases in private environments
(residential + corporate) and specific take-
rates per use case
• Revenue sums up potential from bi-directional
HW sales, service fees for technology provision
and customers’ willingness to pay for cost-
saving potential
• Additional revenues from trading of flexibility
on the energy market (e.g., via FCR of Arbitrage)
included in VGI bucket
49%
35%
16%
Hardware-related
Trading
Software-related
25
785
4,300
SCOPE OF REVENUE POTENTIAL
12. 330
1.454
-
200
400
600
800
1.000
1.200
1.400
1.600
2021 H1 2022 H1
M&A Private Placements Debt IPO SPAC Total
26
48
0
10
20
30
40
50
60
2021 H1 2022 H1
M&A Private Placements Debt IPO SPAC
CAPITAL FORMATION TRENDS IN SMART CHARGING : CAPITAL RAISE & M&A, DEBT AND PUBLIC LISTING
2021 H1 VS. 2022 H1 INVESTMENT ACTIVITY IN SMART CHARGING: STRONG GROWTH
REFLECTING FUTURE VALUE POTENTIAL
12
Far steeper growth rate of than the E-mobility
market of (about 40% CAGR) per year
Number of transactions globally per deal type (in #s)
Total transaction value globally per deal type (in GPB m’s)
Accelerating investment activity as of H1 2021
due to rapidly increasing global EV adoption and
government stimulus
Investors aim to capture future potential and secure
market share, due to increasing value-added smart
charging services and products
Source: IMPROVED Intelligence (June 2022)
*GBP/Euro exchange rate as per 22/06/22 was applied
13. 3%
60%
14%
23%
54%
27%
6%
12%
Strategics Institutional Investors Growth Funds Others
CAPITAL FORMATION TRENDS IN SMART CHARGING : CAPITAL RAISE & M&A, DEBT AND PUBLIC LISTING
THE MATURING MARKET PRESENTS SIGNIFICANT LONG-TERM INVESTMENT OPPORTUNITIES
13
CONCLUSION 1:
The investor universe is diversifying and maturing rapidly (from
VC and Strategics to Institutional capital inflow)
CONCLUSION 2:
Investments in Europe are balancing
vs. the US
CONCLUSION 3:
Fast increasing ticket size reflects
concentration and market growth
2020 2022 YTD
Total transaction value per type of investor globally (in % as of total) Total transaction value per region (in GBP mn’s) Average transaction size M&A, PP & SPACs
(in GBP mn’s)
Driven by the urging need for reliable smart charging solutions at mass scale, improving unit economics and commercial
feasibility of smart charging present significant long-term investment opportunities!
17
10
44
78
11
62
-
10
20
30
40
50
60
70
80
90
M&A Private Placements SPAC
2021 H1 2022 H1
423
2.185
1.502
-
500
1.000
1.500
2.000
2.500
2020 2021 2022 YTD
APAC EU US Total
2021
32%
49%
18%
1%
364m 1.879m 1.292m
14. CONTACT
Dominique Houde
Partner
+44 7 3875 560 92
houde@improvedcf.com
Daniel Lyons
Managing Director
+44 7803 2998 52
lyons@improvedcf.com
For expert insights in the EV charging market & investment landscape,
or for support with on a fundraise or M&A transaction,
reach out to our specialist team!