Energy S.p.A. (ENY) Earnings Call Transcript & Summary

So good morning, everyone. Thank you for joining this conference call related to Energy Group financial results at 31st December 2024. Welcome to everybody. Today's speakers are Mr. Davide Tinazzi, Co-Founder and CEO of Energy Group; and Mr. Daniele Manfroi, CFO of Energy Group. Daniele, I leave the stage to you. This is obviously the agenda of the next slide. I think we can start with the financial results at 31st December 2024.

Thank you, Federico. Thank you, Mara. So thank you for -- good morning to everyone and thank you for joining today's call. It's clearly to start saying that the 2024 year was the most challenging and complex without any doubt of the early life, I would say, of Energy S.p.A. and the Energy Group, which was born last year, its foundation. And these results are reflecting actually what happened in the broad sector, in the industry, I would say, the renewable industry overall. So we can, of course, witness that we had a revenue of EUR 37.2 million, which accounts for 41% less than financial year 2023. And EBITDA, which I will explain later in detail of minus EUR 16 million, and an adjusted EBITDA of minus EUR 6 million comprised net of an inventory write-down of EUR 10 million. And the net financial debt stated into EUR 8.1 million finally. In this environment of very complex and strong headwinds, we had to make some necessary and tough decisions as management in order to reflect and react to this situation and take all the measures necessary to prepare the company for the future and to deal and cope with this situation. We, of course, witnessed a decline of lack of Italian fiscal incentives and regulatory uncertainty of the residential segment. Among all, we will see that the residential business is the one that suffered the most for a number of reasons, but especially we witnessed lack of investment capability by the final users, combined with a strong overcapacity and oversupply of the whole supply chain of the storage system. At the same time, we had some delay and wait-and-see effects that we have seen both in the residential, but also partially in the C&I market, the other segment covering industrial applications, so a larger scale application, which we cut off from 50 kilowatt up in the storage system. So at the end of the day, we had to face decreased volume and a strong significant, I would say, reduction in selling prices, while actually we have been working as many of our peers with still quite a valuable and important inventory that we actually have decreased significantly also during the year, but of course, compressing our margins. And let's look then -- we will look deeper at some dynamics into the figures that impacted our financials. But I want to say that in this whole environment here, at the 18th of March 2024, we recorded a backlog which is higher than the last 12 months that we have recorded so far of EUR 33.8 million. And we have also -- thanks to the group itself creation, but not only even in the single company, we also have an increase -- a slight increase of the employees, which we will explain. It's actually the preparation of what will happen in the future for the company. Let's have a look now at the EBITDA dynamics or movement itself. Can you go to the next slide, please? So the revenue increased EUR 38.9 million, including increasing fixed asset and in-house work and other revenues was, of course, balanced mostly by the cost of materials for EUR 34.2 million, which suffers from the high cost of inventories. Of course, the inventories was built up mainly in 2022 and 2023 year. Of course, we almost used this inventory, the most in 2024 by having a very small slide of inventory increase, especially due to refilling of some parts and preparing the ground for construction and building up of C&I larger scale application of storage systems. And then as we -- I have said before, we decided finally to apply a very strong write-down on inventories in order to balance the value of this inventory, of the stock, to the real market value that we now consider to be stable in the future with few -- very few chances of increase again. So the curve of decrease has been gone through all the 2024, and we now witness that we will work in the next future with more or less the same prices. And then the cost of service for EUR 5.3 million is quite similar to the past years. And the personnel cost, of course, this reflects the group itself. So we are accounting now for 3 companies here, but for one -- only just one company and EUR 1.5 million of other costs different from the previous ones, which finally brings down an EBITDA of minus EUR 16 million. The adjusted EBITDA of minus EUR 6 million actually is the result of the second half of 2024 that in business terms, in normal business terms was very much like the first half of 2024. So there is on that side, actually no quite difference between the 2 semesters of the year. Can you go to the next slide, please? But then when we look more deeply into segmentation of revenues, then we find some very interesting insights. For instance, in the left graph on the top left, we can see the geographic distribution of revenues where the export value changes quite much in one year, going from 23% to 37%. That is thanks to our diversification in regional customers. So we have much more served the Northern European countries like Sweden, Austria and Germany on top and acquiring new customers and developing these new customers abroad. That was part of our strategy since, I would say, 2022 and 2023 that we worked on. And so that this diversification helped us to reduce the country risk where we were very focused in Italy up to 2022. This pattern goes, like this increase of exports since, in fact, 2023. And at the same time, we also expanded our revenues by product category. So you can see the difference between the 2 pie charts that we moved from 7% the gray -- sorry, the dark green slice of extra large. It means serving the industrial customer with namely from 100 to 2 megawatt hours and over, BESS storage systems that went from 7% to 19% total -- 14% sorry, plus 5% is another type of services and additional product that we have encountered -- that we have embedded thanks to the group foundation. But this doubling of the relative part of the extra large systems is also actually absolute terms that we moved from 4 million to 5 million. So we increased by 1 million absolute terms this category, which is reflecting and it's giving the results of all the efforts and all the focus that the company and the group now has been placing on this segment, which is much important for our diversification and also for our future projections. In terms of channels, this reflects by increasing the gray area of the 2 pie charts where we see that we moved from 10% to the EPC and installers, typical targeted customers of the extra large systems from 10% to 21% and where the reduction is more or less distributed in the other 3 channels, historical, the specialist distributor, the VAR and the generalist distribution. Of course, I want to remind again that the extra large system, the storage industrial application behind the meter are not only for the way that we have our concept that we work both on very customized projects, but at the same time, we have an industrial concept of the product. So we can also sell industrial application for the smallest one through the channels of distribution. And this gives us much more power in terms of product distribution and for each channel. I think this is enough for this slide, so we can move on the other slide. Thank you. So what we have seen in this slide, the latest one, which, in fact, gives the ground for the next future development of the company is actually the result of some strategic initiatives that we have really started more than 1 year ago, and we can summarize into 4 points. The first is vertical integration. So we have established ourselves as an integrated BESS manufacturer that means increasing our own internal added value that we can provide to the customer, serving multiple markets and offering a wider range on product and services and increasing our diversification compared to the company which will be focused only on residential market like we have been for many years at the beginning of the company, the foundation. And then the international expansion, especially in DACH and Dutch countries that we have pursued in the last 2 years. And the third point is the segment diversification. So we focus on C&I application by leveraging the first-mover advantage. When we started in 2021 and also in 2022, we continued by offering the product in the C&I application, we were pioneering. And today, we can say that these pioneering activities that we have started in times where apparently they were not so important by looking at the overall figures of the business. Now actually, they appear to be really strategic for the time being and for the future. And the acquisition of EnergyOnSite and the foundation actually of the group is key and crucial to allow more vertically integrated solutions and added engineering services, installation services and other key competitive advantages. And then finally, the Energy Group creation is strategically evolving for the leading the energy transition by having EnergyinCloud with its proprietary EMS, the cloud, the IoT, and the artificial intelligence applied into our product and software logic that enable the intelligent and remote management of energy systems which is the choice that we have done times ago in order to scale very quickly into the C&I application without being locked into the single -- each single system to be controlled one by one and like other kind of peers or other applications that we have seen outside tend to use when tackling -- when looking at the large application. So we can generate more added value through the optimization of the flow and integration with the electricity grid. But I would like to leave now the floor to Davide Tinazzi to go over with more insights about these competitive advantages.

Thank you, Daniele. Thank you, everybody, for being here. Good morning, everybody. Let's start with some key facts in 2025. In this month, we had the inauguration ceremony of the first production line of cobalt-free LFP lithium batteries at our site in Padua. It is an initiative born from the joint venture between Pylontech and Energy, which name is Pylon LiFeEU. And this initiative aims to encourage the production of components in the European territory to be in line with the European industrial sovereignty strategies and with the Net Zero Industry Act opportunities. The line is equipped with robots and smart devices to assist human staff as well as data management systems to ensure efficiency and traceability. From a manufacturing point of view, this line is quite advanced comparing with the cutting-edge technologies that nowadays are available in China. It's multi-potential line so that it has been designed to be highly flexible, capable to produce different battery models and the maximum expected production capacity is around 400 megawatt hour per year. This line is meant to satisfy energy needs of local manufacturer battery to be able to manufacture energy storage systems made in Europe and also is meant to satisfy local-made requirements from other Pylontech customers all over Europe. Please let's go to the next slide. Let's go through some key facts of last year 2024, which have an impact on this year performances. At the beginning of last year, we started with the testing phase of the line that we have just inaugurated. So it has been a 1-year process because we as I said, it is a multi-potential manufacturing line. So we had to test multiple models, multiple technology of batteries ranging from residential to C&I to grid scale applications. And we had to set processes and checking points in order to have certifications of the batteries manufactured there. In May, we won an order from ASFINAG EUR 26 million and that was the first step for our penetration in the DACH, Germany, Switzerland, and Austria. In the same month, we had the acquisition of the company named Enermore S.r.l., now named EnergyOnSite is based in Südtirol and is focused on our targeted countries, DACH markets, and it has been operating in BESS installation for more than 10 years. So it was strategic for us to merge with them to tackle those markets. Another step, significant step was done in September. We had the starting up of our network of authorized technical assistance centers in order to being able to provide advanced services training and qualified by Energy for assistance that's specifically required for C&I application and grid-scale applications. Then in October, we had a supply -- significant supply of device storage systems, 980-kilowatt hour, installed at BMW dealership in Belgium. It was the fifth unit of a group that has been then connected in a virtual power plant controlled by our cloud. And this group, this cluster of 5 BESS is providing remunerated services to the grid. Currently, Belgium is the most advanced country in Europe for these kind of services. So for us, it's a perfect playground where to learn, how to develop these kind of services. And we mentioned here this BMW installation because it's a particular one because in addition to do these kind of services, this device has also the function to be booster for the fast charge EV chargers at BMW site. It's not mentioned here, but during the summer, we had a long, long session of testing -- type testing of our systems performed at our place at customer's place for ASFINAG. Specifically, ASFINAG involved the Austrian Institute of Technology, and we passed all the tests that were defined by Austrian Institute of Technology. From 2024 is a must to any player that wants to install large-scale energy storage systems in Austria has to go through all those testing and Energy had been the first player being able to go through that. And thanks to this kind of green card for the Austrian market, we have been able then to get into other projects like the one that is mentioned here, in November, we got a first LOI with Austrian utility. And this LOI this year became an order, and we are right now manufacturing some large-scale energy storage systems for this utility in Austria, thanks to the activity that we ran last summer. So now we can bid for Austrian utilities, Austrian entities like also the railways entity like ÖBB and others because we have this green card from the Austrian Institute of Technology. Okay. Let's go. So Energy Group as today, it has been conformed as a group in June 2024, as we said, and Energy Group is an Italian leader in the stationary battery energy storage system sector which is positioned as an integrated manufacturer, which means that we manufacture from -- starting from the cells to the battery to the energy storage system itself and then developing the software, the cloud-based applications and also provide all about services around the design and the in-site installation of large-scale energy storage systems. Still, we operate in the residential market, which, as we saw in 2024 has become very competitive with low margins, but still we are there with our channels there because those channels, as Daniele said before, are the channels that we are exploiting now also for some C&I applications. Commercial and industrial sector is the sector where we are pushing, as I just said, through the distribution channels, but also through direct contact with EPCs for larger projects and also through tendering. There is a growing attention to agrivoltaic and utility-scale areas as well. So since foundation in 2013, Energy has sold 70,000 energy storage systems, mainly in residential applications but now also C&I and grid-scale applications are improving. And all those applications over the years gave us the confidence that we targeted the proper technology because those systems are there, properly maintained, properly run and sometimes some customers are getting back asking to modify hardware software system in order to take advantage of new opportunities in the market. So we are a historical player and a leader player in the technology side. So here, a picture that represents the 3 companies belonging to the group. And I go to read in the bottom left, EnergyinCloud, so for IoT software for the EMS and remote control of energy systems as a cluster, as I said before, like in the Belgium market. Whereas EnergyOnSite completes the services that we can provide because it's our interface in terms of engineering with the customers, with EPCs or with authorities because EnergyOnSite is specialized in consulting, design, installation and maintenance of large-scale energy storage systems. Please let's go to the next slide. So here, the competitive landscape. As you said, residential segment is in a saturation phase, not only in Italy but I would say EMEA as well due to many Chinese players that are aggressively jumping on the market. The pricing -- sorry, it is a segment where we want to maintain our position. That's why we have also the inventory write-down. We want to maintain our position because of some reasons, one of which I already mentioned because the same channel for residential application now is becoming the channel for C&I. And let's go to the right for the commercial & industrial application. In Italy, right now, the incentive called transizione cinque punto zero, Transition 5.0, is starting finally despite delays in the implementing phases. And also in EMEA, there is a general development trend supported by community energy policies. So commercial and industrial is the new segment where Energy can have an edge here. The other segment, grid scale is promising in expansion in the Southern Italy -- South of Europe, sorry. In the North of Europe, it is already reality. In some countries, it is also a little bit suffering like in U.K. because of some mechanisms. So investors from U.K. now are moving in Southern Europe, especially in Italy because of Terna program. Right now in Italy, there are the conditions for having a significant markets, both regulated market or nonregulated market. So it's an opportunity for us where we can -- which we can enter, thanks to our new manufacturing capacity, thanks for the investments that we need in the past 1.5 years for manufacturing of equipments and also for the new area, which is the gigafactory. The goals defined by the community policies require achievement of important targets by 2030, namely capacity market or MACSE in Italy. Grid operators as Terna are defining rules and planning significant investments to integrate energy storage into the electricity grid. Okay. Let's move on. So looking forward, in terms of growth and development, we expect the revenue increase driven by the ASFINAG contract, which is now taking place. We delivered one system by 2024, and we are manufacturing next month several other systems. There has been a delay from ASFINAG side, mainly due to the permitting phase but now all the permission for the different sites are arriving altogether. So now there will be finally the manufacturing phase and the installation phase of the project. There will be expansion into the DACH and Dutch markets where we already placed some significant products. The gigafactory project, which is meant for Made in EU production and XL products will help with this growth and development. And we expect increasing sales from data technology services and support network. Strategies and investments, the supply chain optimization and production internalization, as I said, starting from lithium cells to manufacture the whole system at our place. Then advanced cybersecurity compliance with some ISO and NIS2 requirements, technological development and integrated solution with renewable energy. Outlook and conclusions. We expect profitability improvement and financial consolidation. We focus on innovation, sustainability and leadership in the BESS sector. Okay. Now I leave the floor to you for some Q&A, please.

Thank you, Davide. Thank you, Daniele. Now we can open the Q&A session [Operator Instructions] I see Niccolò Storer and Stefano Corneliani. Please Niccolò.

I have a few. The first one if you can elaborate a little bit more on pricing and volume evolution in 2024. So understanding how much of the decline was due to lower pricing, how much from lower volumes which should be the phasing entering in 2025? The second question, you commented on residential about the fact that the market is now in a saturation phase. So from now on, which is the gross margin we should expect from this kind of applications. Clearly, we will probably not be back to previous year's levels. Where should we land here? Third question is about the expected evolution of your service cost and personnel which in 2024 have grown notwithstanding the drop in revenues. And the last one is about the gigafactory, which is at the moment the output and which is the expected additional CapEx you are planning for 2025 to boost -- potentially boost production here?

Shall I take, Davide, the question?

Yes, please go ahead.

Then you can take, and Of course, adjust and integrate. But thank you, Nicolas. And I have to say very interesting, but very also deeper questions. So in terms of pricing and volume, basically, when we speak about volume, of course, we can consider a kind of measuring, let's say, of the volume using the megawatt hour as a total, let's say, indicator of the volume delivered in 2024 compared to 2023. And the decline of volume and pricing were combined. So it's very hard to say exactly or I mean, to give exact figures about this decline. But basically, we had a combination of both things because the effect of overcapacity on the industry and on the segment and on all the companies was combining both the reduction of investments by the final users, so the demand reduction with the actual presence in all the supply chain inventories of the abundance of product, as Davide explained before, thanks to many different competitors and products that tend to appear to be similar. But actually, of course, we know that at the end of the day, they are not exactly similar. To give you an idea, we calculated in 2023, something like 170 megawatts hour total volume as an indicator. While more or less, we have estimated that of this 170 megawatt hours, reductions of more or less 50 megawatt hours. So that means one-third in reduction of volumes -- of volume total. While in terms of the price effect, more or less, if we take an average of all the, let's say -- between all the different product categories, we have a reduction which is quite similar in terms of price. So basically -- of course then the distribution and the data vary a lot from different customers to different segments. But for sure, all this reduction in prices is especially concentrated in the residential segment. And the EUR 5 million that we have delivered in the C&I segment were much less affected by the price reduction. So they still are counting on positive and margins -- positive and consistent margins compared to the residential segment. And in this, I think maybe I hope I have answered to your first question. I will go through all of them then Davide can add details or amend, and then maybe we can have a recap if we have been fulfilling all your questions. For the same thing, the outlook for 2025, we still basically think that the situation will be more or less stable. It means that we will actually as a company, we will be able to increase our volumes in terms of megawatt hours. But at the same time, we foresee that the residential segment industry itself overall will suffer. So we actually to keep and maintain our position, okay, we will need to do a good job as we have done already by activating 100, more or less 100 assisted and authorized technical centers all over Italy and also expanding our distribution contracts and, let's say, agreements with our residential customers all over Italy. While actually, we will increase our stake into the C&I segment where still we see the possibility, concrete and real possibility to keep higher margins compared to the residential segment where -- in the residential segment, price will more or less stay the same or maybe decrease a little bit depending on some variables and some drivers that we will witness in the future. And then moving to the third question of the personnel cost. For this year, we think the structure of the group and the fixed structure of the group itself should be more or less stay the same, I mean, not increase too much apart from one possibility that is following the demand, we may be needing to add or increase the production personnel cost. This will depend on the demand that we will be hitting us in the next months. But we still, in general terms, think that the capacity, the capability that we have built up so far should be enough to fulfill most of our obligations of this year. I recall you that we have this line, production battery line, but the future production battery lines, which will be hosted by the new building, the new facility that we are building are deemed to be built up in the future and on in this year, so in the next years. And then the gigafactory itself. So while the first step, step 1 of the gigafactory was referring to the line that we have launched and opened and now perfectly working. Of course, this line of 400-megawatt hours capacity is not today working at full capacity because this ramp-up will be done during this year, and it will follow the real market and the real needs. But we already know that we will have the need for doing this production, especially in the summertime already. But the next step 2 is regarding the big, new Gigafactory we are building aside -- well, actually, this project is continuing, and we need this new Gigafactory. We need these new spaces for fulfilling our obligation this year, both in terms, of course, of the strategic funding that we have received and we have been awarded for the construction of this gigafactory, but also because the demand that we are receiving, the orders that we are receiving on large-scale application need more space. And we will start exploiting and using the floor, the shop floor of this gigafactory already this year while we can remodel, we can go on with the construction of the other parts and the equipment of the other parts in the later stage and maybe through 2026 and 2027 and 2028 according to -- following the market demand. And this also resulting to be also for our company sustainable in terms of effort and investment efforts. I'm done. So I don't know if Davide want to add some details or change something, but I hope I've done the most of the answers.

Let's take other questions.

Stefano Corneliani.

A couple of ones. The first one is about the future potential opportunity related to the Project MACSE from Terna and transizione cinque punto zero. About those items, when do you think this will become a real market opportunities due to bureaucracy or authorization and so forth? And the second one is a more general question, given the hit prices have taken within the battery market, what current prices, market prices, what kind of normalized contribution margin would you expect from both segments because I suppose there's a heterogeneousness between residential and C&I and bigger BESS.

Transizione cinque punto zero, Transition 5.0, is okay now. Everything is available in terms of regulations and this has just started the application phase. So it looks like to be a rush because all the new installation supported by this scheme has to be deployed by April next year. So it's a 1-year rush and there are already projects that are at the ordering phase. So we are in our production phase of the first orders that have this kind of support. So the implementation phase has already started. Because of the complexity of the scheme and the short reaction time that is linked to the deadline, there is some cautiousness there. Some entrepreneurs are deciding if investing or not, so taking this opportunity or not, but some has already started and we are seeing a result on that and not only us. Of course, also the rest of the suppliers that are involved like efficiency materials, efficiency equipment suppliers and PV manufacturers. MACSE has been released by Terna, the date of the first auction, which is going to be September 20. And now there is some interaction. Energy is also in ANIE Rinnovabili which is the association of confindustria of the manufacturers of the renewable sectors. I'm involved as member of the Board of ANIE Rinnovabili in this kind of interaction with Terna to clarify some points of the process. But I expect that by a couple of months, everything is going to be clear and then bidders have a couple of months to prepare their offer. As Energy, we are involved in some of those tenders in terms of supplier or at least we are involved currently in terms of issuing some offers for that. So hopefully, also this first auction, which is involving a capacity between 10 and 13-gigawatt hour, between 10 and 13 gigawatt hour will give room for opportunities to Energy. Those volumes are going to be deployed in 2.5 years. This is for the first question. For the contribution margin, Daniele, you can help me here. Contribution margin for resi won't be the same as previous years, it will be much diminished. The reason why we write down the value of our inventory is because we needed to align the part of the inventory that is involved in residential market to the current cost of materials. Of course, we are going to also buy some materials which we don't have in inventory, and those will have fresh costs. And in order to have profit with the current level of pricing, but the contribution margin won't be the one that we experienced in the past. While for the other segment, for C&I, particularly, there is a better situation. But if we remember some years ago, we said that we planned our investments in order to be here one day. Of course, nobody expected quick, like in 2024, everything happened so suddenly. But we are able to react now because we expected something happening in that way. So we are prepared to be ready right now. The contribution margin for C&I is going to be similar to the residential market some years ago. While for grid scale market is a market where we are entering. And of course, the competition there is all Chinese. And at the beginning, we expect at least for Italian market to have not that competition at the beginning, but next year there will be competition there. But of course, the reason for investing in the Gigafactory is to manufacture in a very industrialized way, say, we target to the cost efficiency of that. Of course, no need to say that we also expect that the Net Zero Industry Act is really taking place, which means that when there will be public funding for some grid-scale BESS applications, there will be part of the tenders with not only price criteria in order to be awarded as it is meant the Net Zero Industry Act to be. So we expect also to have room in the grid scale sector for some tenders, I would say, reserved to the European players. Daniele, if you want to add something there, please?

Not so much actually. Maybe that we are -- yes, in our speech and also in our questions, of course, there is a focus in understanding on incentive schemes. But what we have witnessed in the latest months of the year where we have consistent order intake, mainly the incentives are not a key driver at the moment for industries or large applications behind the meter, of course. There is also a driver more consistent regarding uncertainties in supplies, uncertainties in energy prices that I think is still giving or marking the way also for decision makers that want to invest in BESS now today even without having specific or very -- having the backup of incentives. So I think this part also needs to be considered as a driver for the demand.

Yes, Daniele, this is a good point. We could add some color there because from the end of the year to November -- through March 18 as we published in the press release, we increased our backlog of EUR 5 million, those EUR 5 million are not related to any specific incentive as you said. So it means that there are also other drivers like, for instance, the cost of electricity increase, which are pushing the market, especially the C&I market.

I don't know if there are any other questions.

No, I don't see anyone. Yes, Valeria.

It's Valeria from ARCA here. I just have a couple of questions. The first one is regarding the Gigafactory. If you could please remind us what have been the investments for its construction and also how much additional CapEx are planned? And the second one is related to the backlog. How much of it is related to the ASFINAG contract? And what does the remaining part consist of?

Can I take, Davide, the first?

Yes, please.

So the CapEx expenditure so far into the gigafactory since the beginning in 2022, where we first acquired the land, the land near to our current office. And then I again want to remind that the gigafactory project comprises both the new building, which is we are building aside of our factory and also inside our current factory, the section dedicated to the battery manufacturing, and also the rent-to-buy, considering also the rent-to-buy option. So the fact that we have at the beginning of 2024 effectively both the current building where we are sitting -- where I'm sitting today and where the manufacturing line exists. So up to now, the investment has been of almost EUR 18 million for the overall staff. So the current existing, the line that we have opened a month ago and also the in-building in work construction of the new building. Then we are almost now approaching -- we are almost approaching the half of this investment. That means that more or less other EUR 14 million are expected until 2028. And that -- and this configuration is a configuration of investment that embraces the equipment -- equipping the new building with all, of course, the offices and all the shop floors and the necessary lines to build batteries, to manufacture batteries but also to manufacture the extra large systems because, of course, when you think about a 20-feet container of a BESS that requires a lot of space. So we dedicate -- we will dedicate, we will reserve quite significant or a portion, let's say, of the space there to manufacture large-scale application. And the building is perfect, suitable to do this kind of production. Okay. And regarding the backlog -- you can take it, please.

Yes. Yes. ASFINAG project is a EUR 25 million project, EUR 22 million of BESS and EUR 3 million of engineering services. During the 2024, we developed just roughly EUR 1 million revenues from that project, EUR 0.6 million in goods for delivery of BESS, and the rest in services for type testing, which was ran over the summer as I described before. We expected much more. ASFINAG itself expected much more, but there was -- those delays in the permitting phase because ASFINAG itself had to ask for permitting for connection systems. So basing on the timing of which permits and the location of permits are arriving along the highway grid. Now the EUR 24 million left in the backlog is expected to be partially deployed this year. We expect something around 1/3 to be this year, at least with the visibility that ASFINAG has today on the permitting phase. This means that we already have received the call-off for manufacturing the energy source systems, several shelters or containers-like systems that we are starting manufacturing from spring, so in next months. And that is, how to say, partially fulfilling our manufacturing capacity for large-scale systems. So what Daniele said that the gigafactory building is almost ready will relieve us from the burden of room in our manufacturing. So this is to say that the investment that we have been done are properly placed and are properly adjusted in their pace in order to fit the production requirements that we have.

I don't see any additional questions. If -- okay, Stefano, you have an additional one.

Just a follow-up question on the gigafactory. Have you already received the first tranches of Invitalia financing? Or in case of negative answer, if you could elaborate on the kind of phasing of this financing you will receive?

Daniele?

I take that. No, it's not received yet. It's planned to receive the first -- this kind of funding goes according to, I don't know how to say [Foreign Language] in English, okay? But as we said, we plan to basically ask for first [Foreign Language] this year to recover or to partially recover part of all the investment done so far. And then there will be, more or less, there will be other tranches, I would say, each year from -- so in 2026, in 2027 and then we'll follow more or less the rest of the investment.

Daniele, [Foreign Language] is work in progress or work in...

I would say milestone. Effectively, we reached the milestones in terms of what we did, but we realized we need to now interact with in Invitalia for the accounting phase of that.

Any additional questions? No, we don't see any additional questions.

Okay. I think we can end here. Thank you very much to everyone. Thank you, Davide. Thank you, Daniele for your availability. And obviously, you can find this presentation on the Energy website. So have a nice day to everyone.

Thank you.

Thank you for participating. Bye.

Bye-bye.