Energy storage provider INTILION Aktiengesellschaft (“INTILION” or “Company”) is planning an initial public offering with admission of its shares to trading on the regulated market of the Frankfurt Stock Exchange (Prime Standard) in the third quarter of 2023, subject to the capital market environment. The initial public offering is expected to include a public offering in Germany (“IPO”) and private placements outside Germany of primarily new shares from a capital increase of the Company, as well as existing shares held by the Company’s sole shareholder HOPPECKE Rail Systems GmbH (a subsidiary of Accumulatorenwerke Hoppecke Carl Zoellner & Sohn GmbH).
The Company intends to use the net proceeds from the offering of the new shares to (i) provide financing for the Company’s working capital requirements to promote future growth, (ii) make investments in companies with the aim of accelerating the Company’s software knowledge, developing its virtual power plant business model to enable the bundling of storage capacities for energy trading purposes and expanding the Company’s research and development team, and (iii) fund the geographic expansion of its sales, engineering and fulfillment capabilities. HOPPECKE Rail Systems GmbH will continue to hold a majority interest in INTILION following the completion of the proposed IPO.
Dr André Haubrock, CEO of INTILION, says: “Efficient energy storage systems are elementary for a successful energy transition. We have extensive experience in stationary energy storage solutions and have already installed over 200 lithium-ion storage systems of various sizes for industrial customers and utilities. We offer our customers all three necessary solution components from a single source: firstly, the scalable hardware including additional peripherals such as converters, switchgear and transformers; secondly, the monitoring and application software to operate the storage system according to the customer’s wishes; and thirdly, the entire project management with installation and commissioning of the system and long-term service to guarantee availability and performance. We have thus established an excellent starting point and now want to open the next chapter in the company’s development and systematically continue on our growth path”.
Dirk Engel, CFO of INTILION, says: “As electrification progresses and the share of renewable energies increases at the same time, energy storage systems will play a crucial role in ensuring a stable power supply. The global market for energy storage is expected to grow by 37% per year until 2030. *2 With our good positioning, we want to achieve an attractive market share and thus create long-term added value for our shareholders. We are pursuing a clear growth strategy and have grown by an average of around 147% *1 in the past three financial years.”
Comprehensive energy storage solutions for commercial and industrial customers and grid applications
The installed storage capacities of INTILION’s energy storage solutions range from 70 kilowatt hours (“kWh”) to 100 megawatt hours (“MWh”) and are aimed in particular at commercial and industrial (“C&I”) end customers (up to 5 MWh) as well as small, medium and large grid applications (up to 100 MWh). INTILION thus addresses the “Front-of-the-Meter” (“FTM”) and “Behind-the-Meter” (“BTM”) market segments of the market for energy storage solutions. In the FTM market segment, electricity is generated by the generator, e.g. a power plant, a wind farm or a solar farm, and stored before being transmitted through the grid and passing through a meter (which measures electricity consumption) to the consumer. In this market segment, utilities use the energy storage systems as buffer storage systems that draw electricity from and release it back into the grid to maintain grid stability. In the BTM market segment, the energy storage system is positioned between the consumer and the meter, where it can be used to store electricity that the consumer draws from the grid or is generated by the consumer, e.g. by wind or solar energy. The energy storage systems help commercial and industrial end users to meet their energy needs flexibly and efficiently. For this purpose, the solutions of INTILION enable the storage of surplus energy generated from renewable energy sources. This can be used as a source of residual electricity when energy consumption is high and little electricity is generated from wind and solar power. This relieves the electricity grids and avoids costly peak loads (so-called peak shaving).
Flexible business model for intelligent energy storage solutions
With its flexible business model, INTILION offers innovative, modular and scalable energy storage solutions and associated services primarily for commercial and industrial applications and for use in the power grid. For all storage solutions, INTILION offers a full-service package that is open to all technologies. To this end, INTILION works closely with a broad network of partners. INTILION accompanies the customer from the initial consultation and planning of the individually optimal storage solution to the on-site installation and ongoing operation. INTILION integrates the battery storage systems into the customer’s overall system via the intelligent energy management system and monitors the functionality of each module throughout the entire operating phase.
The Company currently focuses on the German, Austrian and Swiss markets, with Germany as the most important geographic market based on revenues. In the future, the Company aims to expand into selected European countries, including the United Kingdom, Ireland, Italy, Spain and Portugal.
Established relationships with a strong client base
Customers include large utilities and distributors as well as engineering, procurement and construction (EPC) contractors and C&I end customers. INTILION thus benefits from a broad customer base from industry and utilities.
Global trends and regulatory requirements drive growth in the market for energy storage systems
INTILION believes it is well positioned to benefit from growth in the market for energy storage systems. The global market for energy storage systems is expected to grow by 37% annually to reach 231 gigawatt hours per year by 2030 *3. The market with storage systems from 70 kWh to 100 MWh, in which INTILION is active, is expected to account for around two-thirds of the storage capacities. *3 Global trends are leading to the increasing demand for energy storage solutions.
The integration of decentralised renewable energies into the power grid poses challenges for the supply of energy, as uneven power generation can lead to fluctuations in energy prices and grid utilisation, making decentralised solutions more important. At the EU level, the European Green Deal aims to achieve climate neutrality in Europe by 2050. In addition, the “Fit for 55” package shall reduce greenhouse gas emissions by 55% by 2030 compared to 1990. All initiatives require a significant expansion of renewable energies. In addition, the electrification of many sectors is advancing, which will increase the demand for electricity and energy storage. These effects cause increasing volatility on both the generation and the consumer side, which must be balanced out with appropriate storage systems in order to guarantee the energy supply in the long term.
Strong company growth planned
INTILION has achieved high growth rates in revenues in recent years. In the three financial years ended 31 March 2021, 2022 and 2023, revenues grew at a compound annual growth rate of around 147% *1, faster than the market for energy storage systems, which grew by an average of 98% in the same period. *2 For the current financial year ending 31 March 2024, INTILION is planning to more than double revenues to over EUR 70 million (2022/2023: EUR 29.9 million) based on the order backlog of EUR 63.2 million as of 31 March 2023 *3 and the expected business volume for the scalebloc, scalestac and scalecube product lines of INTILION. In the medium term, INTILION targets to grow revenues to approximately EUR 250 million with an adjusted EBIT margin *4 of between 8% and 10%.
B. Metzler seel. Sohn & Co. Aktiengesellschaft is acting as Sole Global Coordinator and, together with Stifel Europe Bank AG, as Joint Bookrunner for the IPO.
