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}

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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."