ENTECH: a year combining strong business growth and investment in people

PRESS RELEASE

ENTECH: a year combining st rong business grow t h

and invest ment in people

• St rong business grow t h: revenues up +65%

•	Slight loss in net income due t o major invest ment s in people t o support grow t h
•	Improved prof it abilit y in t he 2nd half , w it h H2 EBITDA at breakeven

• Signif icant backlog1
• St rong revenue moment um backs medium- t erm t arget s

Quimper, J une 27, 2023 Entech (FR0014 004 362 - ALESE), the technology company specialized in smart renewable energy storage and management, announces annual results as at 31March 2023 in line with the strong growth recorded over the year and the structuring of its teams to aim for larger projects.

	(in			03/ 31/ 23			03/ 31/ 22		Change
			(12 months)			(12 months)
	Revenues		34 ,327		20,812		+65%
									+56%
	Operat ing revenues		35,569		22,833
	Gross margin				6,090		+54 %
		9,360
	In % of revenues				29.3%
		27.3%
					n.a.
	EBITDA		- 397		57
	In % of revenues			0.3%
		- 1.2%
	Operating income			- 4 81		+68%
		- 1,202
	In % of revenues			- 2.3%
		- 3.5%
	Net income		- 278		+4 4 %
		- 74 1
	In % of revenues			- 1.3%
		- 2.2%

The audit ed financial stat ement s were approved by t he Board of Direct ors on 27 J une 2023.

The Stat ut ory Audit ors' report is current ly being issued.

"Over t he past f inancial year, Ent ech has heavily invest ed in order t o maint ain a st rong growt h and give it self t he means t o win and t hen deliver project s of a much great er size t han t hose carried out t o dat e. These invest ment s have already begun t o bear f ruit , wit h, f or example, last May's win of t he GEG t ender f or a pot ent ial 50 MWh, and a signif icant increase in t he average size of incoming project s. Demand f or new energies remains st rong and our past successes give us access t o ever larger cont ract s. Our ambit ion is t o seize t hose opport unit ies and benef it f rom t he associat ed economies of scale" says Christ opher

Franquet , Chairman and CEO of Ent ech.

St rong grow t h in all business segment s

Ent ech recorded revenues growt h of +65% over t he past f inancial year, wit h a sust ained moment um in all business segment s. The St orage and Hydrogen business grew by +79%, account ing f or 52% of revenues in t he last f inancial year. The Product ion business (design and inst allat ion of phot ovolt aic power plant s) grew by +52%, account ing f or 48% of revenues.

• Backlog: revenues still to be recognized on orders signed at 31 March 2023.

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PRESS RELEASE

The size of project s ent rust ed t o Ent ech kept growing, wit h an average order size (f inancial year ending 31 March 2023), compared t o

compared t o

Result s: invest ing in grow t h

Gross margin rose by +54%, but was down 2 point s on t he previous year, due t o cont inuous pressure

on supplies and some change in t he project port f olio.
Against a backdrop of st rong growt h, profit able at project level, EBITDA	-
0.4m, was impact ed by invest ment s in growt h and in part icular by t he rise in t ot al payroll

72 t o 112, part icularly in management st af f , some of whom are dedicat ed t o preparing and execut ing new project s (f or which sales will be recorded in t he next f inancial year).

It is wort h not ing t hat t he second half of t he year, wit h 6 mont hs of revenues on a par wit h t he 12 mont hs of t he previous year, result ed in an EBITDA breakeven, demonst rat ing Ent ech's abilit y t o bear t he cost s of growt h.

Af t er a slight increase in depreciat ion, amort izat ion compared wit h zero a year earlier), operating income was

- 1.2m compared t o - 0.5m a year earlier.

- 0.4m, net income

- 0.7m.

Sound f inancial posit ion and improved w orking capit al

As at 31 March 2023, Ent ech was in a robust f inancial posit ion, enabling t he company t o cont inue it s st rong growt h:

	t o	a year earlier) while f inancial
debt was at	t o

Against a backdrop of st rong growt h, Ent ech's operat ing working capit al requirement improved signif icant ly, down f rom 180 t o 152 days of revenues. The t eams were able t o achieve t his improvement as t hey obt ained bet t er payment t erms f rom bot h cust omers and suppliers t hanks t o t he increased conf idence and visibilit y of t he Ent ech brand int ernat ionally.

Out look: sust ained grow t h

As a result of t he projects successf ully complet ed, Ent ech's t eams are increasingly in demand and are being called upon t o t ake on ever- larger project s f or bot h exist ing and new cust omers. Over t he past f inancial year (ending 31 March 2023), t he Company worked on 25% more project s, wit h t he average

project size up +57%. As at 31 March 2023, t he order backlog1	which is t he amount of
revenues already secured.

This sust ained growt h moment um is cont inuing, wit h, f or example, t he t ender won by Ent ech f or a 50 MWh st orage pot ent ial wit h t he local dist ribut ion company GEG last mont h.

Ent ech t hus conf irms it s medium- t erm 2025 t arget s (f or t he year ending 31March 2026) of revenues of

Next date: Annual general meet ing, 6 Sept ember 2023

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About Ent ech

Faced wit h t he t echnological challenges posed by t he st rong growt h of new energies wit hin t he energy mix, Ent ech enables t he massive int egrat ion of renewable energies and access t o energy t hanks t o st orage and elect rical conversion solut ions cont rolled by int elligent sof t ware syst ems.

Builder of t he new energies, Ent ech develops, builds and operat es product ion plant s and st orage syst ems - bat t eries or hydrogen on- grid or of f - grid. Founded in Quimper in 2016, Ent ech has already complet ed more t han 250 project s worldwide and t oday employs 140 people.

capacit y t o innovat e in support ing t he energy t ransit ion, Ent ech is commit t ed t o act ing on a daily basis as a responsible company, not only f rom an environment al point of view but also f rom a social and societ al one.

For more inf ormat ion:ht t ps:/ / ent ech- se.com/andLinkedIn

Contact: Calyptus

Mat hieu Calleux

ent ech@calypt us.net

[phone]

Appendix: simplif ied balance sheet

	Balance sheet (			03/ 2023			03/ 2022			03/ 2021			Change
									23/ 22
	Fixed assets	4 ,754		4 ,04 2		2,505		17.6%
	Current assets	4 2,821	4 1,4 36		14 ,819		3.3%
	Of which cash and equivalent	11,152		17,939	1,781	- 37.8%
	TOTAL ASSETS			4 7,576			4 5,4 78			17,324			4 .6%
			29,109		26,839		2,706		8.5%
	Other equit y	4 09		4 84		54 8		- 15.5%
	Provisions	103		0		115
	Financial debt	6,4 31	10,4 60		10,115		- 38.5%
	Trade payables	11,524		7,695		3,839		4 9.8%
	TOTAL LIABILITIES			4 7,576			4 5,4 78			17,324			4 .6%

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