Groupe Airwell (ALAIR) Investor Presentation summary

Strategic positioning and vision

• Aims to be a leading reference in energy efficiency, transitioning from equipment supplier to creator of integrated climate and thermal solutions for residential and commercial markets.

• Focuses on innovative, connected, and eco-friendly solutions, including premium heat pumps and smart home offerings.

• Emphasizes a service-oriented approach, integrating financing, installation, and maintenance for end customers.

• Leverages strong regulatory tailwinds and growing demand for comprehensive energy efficiency solutions in France and internationally.

• Pursues a clear value chain ascent, with investments in R&D and digitalization.

Financial performance and structure

• Revenue for H1 2024 reached €25.7M, with a gross margin increase of 7.3 points, reflecting a favorable product and geographic mix.

• EBITDA margin improved to 6.2%, but net result turned negative at -€0.8M due to higher marketing and commercial costs and a less favorable market.

• Net debt stood at €5.0M as of June 2024, with €2.2M in available cash and a €5M bond issued in January 2023.

• Working capital requirements increased due to higher inventories, especially for air/water heat pumps, and seasonal effects.

• Cash flow from operations was negative, mainly due to inventory build-up, but capital structure remains controlled.

Market context and operational highlights

• Operates in over 80 countries with 111 employees and more than 200 commercial partners.

• 81% of sales are residential, 19% tertiary; export represents 47% of Q3 2024 revenue.

• French heat pump market declined sharply (-46%), impacting sales, but recovery seen in overseas territories (DOM TOM) in Q3 2024.

• Direct distribution in Guadeloupe and Guyana contributed significantly to Q3 performance.

• Growth in tertiary sector driven by large hotel residence projects in Africa.