WHAT IS AN EXPRESSION OF INTEREST?

An Expression of Interest campaign is a way of launching a project that allows the proponent (in this case, Volta Smart Energy) to gather information about the community's interest in the project by collecting expressions of interest from potential future investors.

Through this type of campaign, interested parties can indicate their personal data and the amount they are interested in investing.

After the end of the period during which the Expression of Interest campaign will be open, Volta may decide, based on the information provided by interested parties, whether to open a crowdfunding campaign on the platform and, if so, for what amount you want to open this crowdfunding campaign.

The expression of interest is, in any case, non-binding for both the investor and the proponent:

• The investor is under no obligation to invest the amount indicated in its expression of interest: in the case that the crowdfunding campaign is opened, it may choose the amount it wishes to invest.
  
• The proponent is under no obligation to open the crowdfunding campaign in any case, but may be more eager to open it if the investors show a strong interest in the project.

THE PROBLEM AND THE SOLUTION

The Problem

The photovoltaic self-consumption market in Spain began to develop in 2019 and 2020, experienced an explosion in 2021 and 2022, in 2023 and 2024 it has stabilized and reached a certain degree of maturity and for the next 4/5 years there are prospects that it will continue to grow strongly, opening up to new market niches and generating new business models.

The sector has polarized into two segments:

• At one end, towards the residential segment.
  
• At the other end, towards large C&I projects (i.e. for companies in the commercial and industrial sectors).
  

Currently, the C&I segment has the capacity to absorb approximately 20 GW of capacity in solar PV installations for self-consumption. By installation size, it is estimated that this potential is distributed as follows:

• Small installations (average 13 kW): 4.4 GW.
  
• Medium installations (average of 83 kW): 8.8 GW.
  
• Large installations (770 kW and above): 6.8 GW.
  

The segment of medium-sized installations for SMEs has been the forgotten segment.

The Solution

This segment of medium-sized projects (from 20 to 200 kWp) for SMEs has great potential, since there is still very little supply of solutions adapted to their needs.

The founders of Volta Smart Energy (VOLTA) have decided to value their extensive experience and deep knowledge of the sector (more information about the founders and management team can be found in the tab "The Proponent") by putting it at the service of the large network of small and medium enterprises that exist in Spain, offering financed solutions for solar photovoltaic self-consumption that until recently were only available to large companies.

VOLTA offers projects in which the client does not have to worry about anything, with sophisticated financing formulas such as Long Term Power Purchase Agreements (PPA) and Operating Lease (Renting).

In April 2023, the founders set out to establish Volta Smart Energy and, in June of the same year, began to create the necessary structure to promote, execute and finance this type of project and occupy a niche that is not very competitive, with many opportunities for development and great business potential.

BUSINESS MODEL

VOLTA's solution consists of offering a complete "turnkey" service by promoting, designing, projecting, structuring the financial and technical solution that best suits the needs of its clients and carrying out the installation, handling the processing of permits and legalization, and the commissioning, operation and maintenance of photovoltaic solar energy generation facilities for self-consumption, as well as energy storage and electric vehicle charging solutions.

In line with what was stated in the section "The Problem and the Solution", VOLTA focuses mainly on the segment of medium-sized installations in the C&I sector (mostly SMEs). This market segment has:

• less competition than the large projects segment.
  
• better prices and profitability than the large projects segment.
  
• larger than the other segments of the C&I sector.
  
• less supply of PPAs or other financed solutions than the large project segment.
  

VOLTA promotes these facilities with financing from third parties with which it establishes collaboration agreements (specialized investment funds, participative financing platforms and some of the few commercial financial entities that finance this type of projects with non-recourse financing of the "Project Finance" type), as well as with cash payment, when the clients prefer it.

In the event that the client wishes to finance the installation, the operation is structured as follows:

• VOLTA: carries out the commercial prospecting work and offers the technical and design solution that best suits the customer's needs and consumption profile. It then offers the project to the financiers whose products best suit the client's needs and preferences and risk profile.
  In turn, it is responsible for explaining the main features of the contracts to its customer and then, once the agreement is signed, it is responsible for obtaining the permits, selecting and procuring the equipment and materials budgeted for the project, carrying out the installation and legalizing the installation. Finally, it invoices all project costs to the financier, who becomes the owner of the facility.


• Financier: provides the capital necessary to carry out the installation and becomes the owner of the installation during the term of the contract, which is usually between 10 and 15 years. During that time, it bills and collects from the customer on a monthly basis the energy produced by the installation, the energy self-consumed by the customer or a fixed fee according to the terms of the signed contract.
  During the term of the contract, the financier, directly or through VOLTA or other service providers, monitors the operation of the installation and is responsible for maintaining the installation in optimal operating conditions, as well as contracting and maintaining the insurance of the installation.
  At the end of the contract period, the financier offers the customer the possibility of acquiring ownership of the installation in exchange for a residual value or renewing the contract for a period and conditions to be agreed at the time.


• Final client: without having to make any initial investment or take care of anything, he manages to reduce and stabilize his energy costs, consume renewable energy and become more efficient and independent of grid consumption, committing himself, for a period of time, to pay the financier the agreed price for the energy or the installments agreed in the terms of the contract on a monthly basis.

BUSINESS MODEL: ECONOMIC FLOWS

VOLTA promotes Individual Self-consumption (C&I) in turnkey modality with cash payment or financed through third party financing.

CUSTOMER VALUE PROPOSITION

VOLTA offers a set of services that allow the end customer to cover all their sustainable electric energy needs. In each of its services it offers the advantages, which are explained below:

Photovoltaic solar power generation facilities

The generation of energy allows Volta's customers:

• Consume clean energy generated in their own facilities.
  
• Obtain a customized offer, based on their real needs, and that allow them to maximize their power generation potential.
  
• Access a variety of financing options that are usually only available to larger companies.
  
• Obtain competitive prices thanks to the collaboration agreements that VOLTA has established with financiers.
  
• Benefit from an offer that encompasses all the services currently available in the field of electrical energy, concentrated in a single supplier.

Energy storage facilities

Storage with Batteries and Intelligent Energy Management Systems allows Volta's customers to:

• Maximize the value of the surplus generated by the PV installation, consuming it during hours when there is no generation and the price of energy is high.
  
• Reduce peak shaving, i.e., reduce surcharges for excess power (being able to reduce the contracted power), with the consequent reduction in the cost borne.
  
• Market price arbitrage, charging batteries when prices are low and consuming stored energy when prices are high.
  
• Having a backup power system for possible power outages.

Electric vehicle charging facilities

The installation of electric vehicle recharging points allows VOLTA's customers:

• Service the recharging needs of their electric vehicles or their workers.
  
• Offer an electric vehicle charging service to their customers, suppliers, visitors or passers-by.
  
• Install and provide these services without the need for an initial investment through VOLTA's financing formulas.
  
• Optimize the sizing and use of the associated self-consumption solar photovoltaic power generation and battery energy storage facilities.
  
• Pay the cost of the initial investment over the duration of the financing contract or establish a revenue sharing formula, in the event that customers commercially exploit the installations.
  

In addition, VOLTA offers speed and agility in its proposals, customized solutions and studies adapted to the needs of each client, as well as quick response and a close and personalized treatment, with the aim of providing maximum value to its customers.

BUSINESS PLAN

The following is a summary of Volta Smart Energy's economic projections for the 4 years following the capital increase:

According to the Business Plan prepared by the company, and in case of adopting a dividend distribution strategy, the investor could expect a return on investment according to the following parameters:

• Average profitability (next 4 years): 25.6%.
  
• Payback: 3.9 years.
  

In the event of adopting a strategy of generating value for investors at the end of the third or fourth year after the capital increase, the expected value of the current investment would be multiplied by 3.2 in the third year or by 4.0 in the fourth year.

INVESTMENT STRATEGY AND FUNDS NEEDED TO FULFILL THE BUSINESS PLAN

VOLTA is looking for investors who can provide the capital necessary for the development and growth of the company in exchange for a stake in the company's capital. This capital will be used to finance the company's working capital until it has the capacity to finance its own growth organically without the need for future rounds of financing, unless it later considers even more accelerated growth or developing other lines of business to meet future market needs.

The funds provided by the new investors will be used to:

• Hire and train the sales force necessary to generate the volume of business needed to meet the objectives of the Business Plan.
  
• Hire and train its own project management team, capable of managing a large volume of projects in an agile and efficient manner and be able to meet the objectives of the Business Plan.
  
• Execute the Marketing Plan defined in the Business Plan that supports the commercial structure and facilitates the achievement of the objectives.

LOCATION OF THE PROJECT

The project is being launched in Spain, where the service will initially be provided. It will cover 12 commercial areas, which include most of the national territory (all the Autonomous Communities except Galicia, Asturias, Cantabria, the Basque Country, the Balearic Islands, the Canary Islands, Ceuta and Melilla) and will subsequently be extended to the entire national territory and an international expansion plan will be drawn up for neighboring countries (Portugal, France, Italy and others yet to be defined).