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.
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 20241. 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
Webinar ID: 865 8244 5758
1 Source:
Proprietary analysis, Elexon, National Grid
ESO data portal, UKPN
Enquiries:
Pod Point Plc
Melanie Lane, Chief Executive
Officer
David Wolffe, Chief Financial
Officer
Phil Clark, Investor
Relations
|
phil.clark@pod-point.com
|
Panmure
Liberum (Joint Corporate Broker)
Edward Mansfield, Amrit
Mahbubani
|
+44 (0)20 3100 2000
|
Canaccord (Joint Corporate
Broker)
Bobbie Hilliam, Harry
Pardoe
|
+44 (0)20 7523 8150
|
Media
Matt Low / Arthur Rogers
(Teneo)
|
+44 (0)20 7353 4200 4200
PodPoint@teneo.com
|
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."