Allego Reports Third Quarter 2022 Results Demonstrating Strong Execution and Development Activities

• Third quarter 2022 revenues increased 105.0% over the prior year period to €22.3 million, largely driven by a doubling of charging and services revenues.
• Total energy sold was 37.0 gigawatt hour (GWh), an increase of 81.0% over the prior-year period.
• Total number of charging sessions were 2.2 million, 36.6% higher compared to 1.6 million in the prior-year period.
• Third quarter 2022 average utilization rate1 increased to 11.5% from 6.6%.
• Signed 10-year power purchase agreement (PPA), which is expected to begin January 1, 2023, with a major European independent renewable power producer in Germany for 25 gigawatt hours (GWh), to drastically lower and stabilize the impact of commodity price volatility.
• Implemented substantial price increases to minimize margin impact; price hikes in January, September and October of this year.
• Strong commercial activities with multiple contracts and locations signed. Backlog of ultra-fast charging ports increased by 24% in the quarter to approximately 8,400 charging ports on 1,270 sites, compared to the prior-year period.

Allego N.V. (“Allego” or the “Company”) (NYSE: ALLG), a leading pan-European public electric vehicle fast and ultrafast charging network, today announced its results for the third quarter of 2022.

Total revenues increased 105.0% to €22.3 million for the three months ended September 30, 2022, compared to €10.9 million in the prior-year period. Charging revenues grew 107.7% to €14.4 million. The improvement was driven by an increase in charging sessions of 2.2 million, as well as price increases to offset input costs.

Services revenue increased 102.6% to €7.9 million, compared to €3.9 million for the three months ended September 30, 2021. Services revenue was driven by the Carrefour project, which as expected, was second half of 2022 weighted and is expected to accelerate during the fourth quarter of 2022. Allego increased substantially its backlog of signed contracts ready to be rolled out with a backlog of sites reaching 1,270 premium sites representing around 8,400 ultrafast charging ports that will serve its customers.

Allego’s total energy sold in the third quarter was 37.0 GWh, which marked an increase of 81.0% over the same period in 2021. The energy sold was 100% green energy. During the third quarter, utilization rate increased by 74.5% to reach 11.5%.

Net loss for the three months ended September 30, 2022 was €(18.7) million, which was largely a reflection of the volatility in the energy markets. Net loss for the three months ended September 30, 2021 was €(80.5) million, largely driven by non-recurring, non-cash share based payments.

Operational EBITDA was €(4.2) million compared to €(1.8) million for the three months ended September 30, 2021. Operational EBITDA was adversely affected by €6.7 million of higher energy costs, partly offset by the benefits from an increase of €1.9 million from charging prices and higher income of €2.4 million from the sale of carbon credit certificates. The price increase of around 15% on average, effective October 7, 2022, and the first power purchase agreements (“PPA”) starting January 1, 2023, are expected to moderate the impact of higher energy input costs going forward.

1 Utilization rate, a key performance measure, is defined as the number of charging sessions per charge point per day divided by a maximum number of charging sessions per charger per day of 50 (for the ultra-fast charging pole).

CEO and CFO Comments and Outlook

Allego’s Chief Executive Officer, Mathieu Bonnet, stated “I am pleased with the progress we continue to make as we near the end of our first fiscal year as a public company. The Carrefour project remains on track and has entered the second phase of the development process, as we are currently installing more than 310 new ultrafast charging ports. We have signed new important contracts all around Europe representing more than 1,800 ultrafast charging ports to be installed. As we expand and develop more sites across more jurisdictions, we believe we are very well positioned to maintain and advance our pivotal role in Europe’s EV charging infrastructure that is accelerating.”

Bonnet continued, “I am pleased to report that we have signed our first 10-year PPA with a European independent renewable power producer in Germany for 25 GWh. Sourced through a solar farm, the electricity provides our customers with 100% green energy, effective January 1, 2023. PPAs will enable us to lock in very attractive, long-term energy prices, meaningfully reducing our exposure to increases in commodity prices. As previously announced, our goal is to hedge approximately 80% of our energy input costs by 2023 by executing long-term, low-cost power contracts based on renewable power assets. The agreement represents a first step in that strategy that we are aiming to accelerate over the next months.”

Allego’s Chief Financial Officer, Ton Louwers, commented, “Our multi-pronged approach of signing PPAs, price increases, minimizing supply chain disruptions by proactively managing our European supplier partnerships, and the natural hedge that we have from income from the sale of certificates (or carbon credits) generated from the sale of green energy, has significantly reduced the risk of margin contraction to earnings. We expect to benefit from all the steps we have taken thus far and believe we are on track to achieve our long-term revenue and growth targets.”

Financial Summary:

The summary financial highlights for the three months ended September 30, 2022 are provided below:

• Total revenues: €22.3 million
• Gross Profit: €1.8 million
• Net Loss: €(18.7) million
• Operational EBITDA: €(4.2)million
• Cash Flow from Operations: €(112.3) million

Key Metrics

Guidance:

2022 Full Year Guidance Range:

• Total Revenues: €135.0 million - €155.0 million
• Energy Sold: 150 GWh – 160 GWh
• Operational EBITDA: Positive

Conference Call Information

Allego will hold a conference call for investors at 8:30 AM Eastern Time today, Monday, November 14, 2022, to discuss its results for the quarter ended September 30, 2022. Participants may access the call at 1-877-407-9716, international callers may use 1-201-493-6779 and request to join the Allego earnings call. A live webcast will also be available at https://ir.allego.eu/events-publications.

A telephonic replay of the call will be available shortly after the conclusion of the call and until Monday November 28, 2022. Participants may access the replay 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 13733903. An archived replay of the call will also be available on the investor portion of the Allego website at https://ir.allego.eu/.

About Allego

Allego delivers charging solutions for electric cars, motors, buses, and trucks, for consumers, businesses, and cities. Allego’s end-to-end charging solutions make it easier for businesses and cities to deliver the infrastructure drivers need, while the scalability of our solutions makes us the partner of the future. Founded in 2013, Allego is a leader in charging solutions, with an international charging network comprising approximately 34,000 public and private charging ports operational throughout the pan-European market – and proliferating. Our charging solutions are connected to our proprietary platform, EV-Cloud, which gives our customers and us a full portfolio of features and services to meet and exceed market demands. We are committed to providing independent, reliable, and safe charging solutions, agnostic of vehicle model or network affiliation. At Allego, we strive every day to make EV charging easier, more convenient, and more enjoyable for all.

Forward-Looking Statements

All statements other than statements of historical facts contained in this press release are forward-looking statements. Allego intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward looking statements may generally be identified by the use of words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,”, “project,” “forecast,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” “target” or other similar expressions (or the negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, without limitation, Allego’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially, and potentially adversely, from those expressed or implied in the forward-looking statements. Most of these factors are outside Allego’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) changes adversely affecting Allego’s business, (ii) the price and availability of electricity, (iii) the risks associated with vulnerability to industry downturns and regional or national downturns, (iv) fluctuations in Allego’s revenue and operating results, (v) unfavorable conditions or further disruptions in the capital and credit markets, (vi) Allego’s ability to generate cash, service indebtedness and incur additional indebtedness, (vii) competition from existing and new competitors, (viii) the growth of the electric vehicle market, (ix) Allego’s ability to integrate any businesses it may acquire, (x) Allego’s ability to recruit and retain experienced personnel, (xi) risks related to legal proceedings or claims, including liability claims, (xii) Allego’s dependence on third-party contractors to provide various services, (xiii) Allego’s ability to obtain additional capital on commercially reasonable terms, (xiv) the impact of COVID-19, including COVID-19 related supply chain disruptions and expense increases, (xv) general economic or political conditions, including the armed conflict in Ukraine and (xvi) other factors detailed under the section entitled “Risk Factors” in Allego’s filings with the Securities and Exchange Commission. The foregoing list of factors is not exclusive. If any of these risks materialize or Allego’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Allego presently does not know or that Allego currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Allego’s expectations, plans or forecasts of future events and views as of the date of this press release. Allego anticipates that subsequent events and developments will cause Allego’s assessments to change. However, while Allego may elect to update these forward-looking statements at some point in the future, Allego specifically disclaims any obligation to do so, unless required by applicable law. These forward-looking statements should not be relied upon as representing Allego’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

FINANCIAL INFORMATION; NON-IFRS FINANCIAL MEASURES

Some of the financial information and data contained in this press release, such as EBITDA and Operational EBITDA, have not been prepared in accordance with Dutch generally accepted accounting principles, United States generally accepted accounting principles or the International Financial Reporting Standards (“IFRS”). We define (i) EBITDA as earnings before interest expense, taxes, depreciation and amortization and (ii) Operational EBITDA as EBITDA further adjusted for reorganization costs, certain business optimization costs, lease buyouts, and transaction costs. Allego believes that the use of these non-IFRS measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Allego’s financial condition and results of operations. Allego’s management uses these non-IFRS measures for trend analyses, for purposes of determining management incentive compensation and for budgeting and planning purposes. Allego believes that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing Allego’s financial measures with other similar companies, many of which present similar non-IFRS financial measures to investors. Management does not consider these non-IFRS measures in isolation or as an alternative to financial measures determined in accordance with IFRS. The principal limitation of these non-IFRS financial measures is that they exclude significant expenses and income that are required by IFRS to be recorded in Allego’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-IFRS financial measures. In order to compensate for these limitations, management presents non-IFRS financial measures in connection with IFRS results, and reconciliations to the most directly comparable IFRS measure are provided in this press release.

Historical Key Metrics

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