Soltech has an offensive growth strategy with acquisitions in the solar, roof, facade and electrical engineering industries. The acquired companies will together create synergies and build a strong group with cross-border expertise. Two of the Soltech Group's companies will now jointly help Castellum with additional sustainable solar energy and roofing solutions. One of several projects that proves the acquisition strategy to be successful.

Soltech Energy Solutions will build solar energy solutions on eight of the property company's properties. Prior to the solar energy installations, two of the properties will also have their roofs restored by Takorama.

– We already have a good cooperation with Castellum and it feels great that we have started the solar energy year 2022 together. Soltech has the ambition to be a community builder that drives a sustainable society transformation, and it is therefore a joy to cooperate with a real estate company that invests heavily to be a world leader in that area, says Markus Duseus, Regional Manager at Soltech Energy Solutions.

More than halfway to reach the goal
Since 2020, Castellum has had a goal of building 100 large photovoltaic plants within five years. Already in the autumn of 2021, the company was halfway and facility number 50 became the solar cell facility at City Gross' grocery store in Jönköping, which was also built by Soltech. Now the real estate company keep moving forward with more solar power in sight.

– Large-scale solar energy solutions are the future. It therefore feels very good that we have agreed with Soltech on the new solar energy solutions on our properties in several cities. We see this as one of many important steps to continue to be a real estate company that really makes a difference and takes responsibility in the most important issue of our time, says Max Börling, project manager for Castellum's solar cell investment.

The solar energy company Soltech Energy Solutions helps large landowners, property owners, logistics and transport companies with large-scale solar energy as well as charging and storage solutions. The company is now part in the project to be Sweden's largest charge and battery park for charging heavy vehicles with green power.

The charging station and battery park in Malmö will be built for Falkenklev Logistik, together with Scania and Kempower. The project will be the largest of its kind when it is completed later this year and is one of several stages in Falkenklev's sustainability initiative. An investment that also includes a 1.5-hectare solar park that Soltech will build in Perstorp (Skåne) during 2022, as well as five newly purchased electric trucks from Scania.

– Falkenklev is now completing one more step in their sustainability investment. The sun rays first create green electricity in their new solar park, which is transferred into the local electricity grid and their new electric trucks will then be charged in the new combined fast-charge station and battery park. Falkenklev is really in the driver's seat when it comes to sustainable transports, says Rickard Lantz, Business Development Manager, Soltech Energy Solutions.

The charging station is also available to the public
The park will be able to charge 22 vehicles at the same time but has the potential to handle another 18 charging vehicles in the future. The charging station and battery park will also be open to the public for charging electric cars during the day.

– If we are going to do this, we are going to do it properly. With this solution our new electric trucks will be able to be charged during the night in the new park, that will also be available for public charging during the day. Being able to both contribute to the area's general charging infrastructure and secure the future of our own operations at the same time feels very good, says Victor Falkenklev, CEO of Falkenklev Logistics.

– Scania's electrified trucks contribute to a sustainable transport system, and it is therefore gratifying that we get to contribute with our solutions to a company who thinks sustainability all the way. From renewable self-produced solar energy to its own charging infrastructure. This is a great way to create sustainable transports, says Håkan Roupé, Sales Manager, trucks at Scania.

From the sun's rays to electricity – that's how it works

1. The solar park creates over one million kilowatt hours
The solar electricity that the solar park in Perstorp, Skåne, produces is sold and fed to the local electricity grid. The solar park will be approximately 15,000 sqm in size. With the electricity generated by the solar park, an electric car could drive about 400 000 km.

2.The charging station strengthens the electricity grid and ensures safe charging
The new battery park will be equipped with 2 MW batteries to ensure the capacity of the chargers. With this, the 22 charging stations will be both safe and secure. The park's chargers will also be available to the public during the day, something that contributes to the automotive industry's green transition in southern Sweden.

3.Transports run on future-proof solar
Falkenklev's transports will then be able to carry out their deliveries on green electricity. The logistics and transport company will also be independent of rampant electricity and fuel prices as they will supply over one million kilowatt hours to the local electricity grid as a result of their new solar park.

This project is part-financed by the Swedish Environmental Protection Agency within the initiative Klimatklivet. Here you can read about Klimatklivet: https://www.naturvardsverket.se/bidrag/klimatklivet/

The Soltech Group's latest acquisition in the façade industry, ESSA Glas & Aluminium, will now assist Region Stockholm's real estate company Locum with a façade solution. The project means that a new building of approximately 34,000 sqm will have glass facades installed by ESSA.

– We are both proud and very happy to be trusted with this project from Locum and Region Stockholm. This assignment is a feather in the cap for us and great for the whole company. We are more than ready to roll up our sleeves and get started, says Ola Karlsson, CEO of ESSA Glas & Aluminium.

About Locum AB
Locum manages, builds, and develops two million square meters of care properties for its owner, Region Stockholm. Through commitment, innovation, and collaboration, they offer healthcare and residents in Stockholm County attractive and sustainable care environments.

Illustration: Carlstedt arkitekter/CF Møller

Soltech Energy Solutions is a nationwide solar energy company that, together with other community builders, helps property owners, industries, and landowners with large-scale solar energy solutions.

The company also helps the transport sector to prepare for the rapid electrification the industry is undergoing. Soltech Energy Solutions will now build a solar park for the logistics and transport company Falkenklev Logistik in Skåne. The solar park will cover an area of one and a half hectares.

– The transport sector aims to reduce its emissions by 70 percent by 2030. To reach this goal more companies need to do as Falkenklev Logistik and invest in their own renewable solar power for their vehicle fleet. It feels great to be able to contribute to the industry's transformation and we are convinced that the transports of tomorrow will be powered by self-produced solar energy, says Rickard Lantz, Business Development Manager at Soltech Energy Solutions.

Solar energy makes the business future-proof
Falkenklev Logistik was founded in 1957 and distributes goods via DHL's terminals in Malmö and Helsingborg throughout Skåne. The company has high environmental goals for its transports and for the business. The CEO of the company, Victor Falkenklev, talks more about how the upcoming solar park in Perstorp will contribute to the company.

– We want to do everything we can to contribute to a sustainable transport industry, which our own solar park will be a clear proof of. The solar park also helps us make our operations future proof, to be able to meet both increased electrification and ensure green electricity for our transports. The fact that we in the near future will make deliveries throughout Skåne with the help of solar energy feels fantastic, says Victor Falkenklev, CEO of Falkenkev Logistik.

Soltech Energy Solutions is a nationwide solar energy company that, together with other community builders, helps property owners, industries, and landowners with large-scale solar energy solutions. The company and the construction group Skanska will now build four new solar energy facilities on Skanska's properties, starting in 2022.

– It feels great to collaborate with Skanska once again, who is in the forefront regarding sustainability work. Together, we will develop and support a society where large-scale solar energy solutions give more and more properties the right tools to produce their own energy. Something that both reduces the load on the overall electricity grid and creates climate-smart businesses and we look forward to completing these solar energy projects together, says André Nylén, Key Account Manager at Soltech Energy Solutions.

Aims for climate neutrality by 2045
The roof-mounted solar energy facilities will be installed on the roofs of both logistics and industrial properties as well as a residential building. In total, the four solar cell installations will cover an area of approximately 6,000 square meters and is one of many steps towards Skanska's goal of becoming completely climate neutral by 2045.

– We clearly see that solar energy and energy efficiency are two important components in our journey towards achieving climate neutrality. For us to succeed with our high goals, it is necessary that we collaborate with partners who also put sustainability first. Therefore, we look forward to continuing developing climate-smart properties that are powered by solar energy together with Soltech in 2022, says Henrik Ahnström, Director of Product, Process & Innovation at Skanska Commercial Development Nordic.

Soltech acquired 60 percent of Measol on August 27, 2020 and is now acquiring the remaining 40 percent. An agreement was signed on December 22, and this means that Soltech is increasing its investment in solar energy installations. The company will to an even greater extent become the Soltech Group's installation company but will still offer installation services around solar energy and charging solutions to its customers.

– Measol creates great value in the Group. Installation expertise today is more in demand than ever, and it therefore feels strategically right that we develop Soltech's own installation company further. This creates even better conditions for the Group and all customers, and I am pleased that we are taking this step forward with Marcus Nylund and his skilled team, says Stefan Ölander, CEO of Soltech Energy.

The installation operations in Soltech Sales & Support joins Measol
In addition to the fact that Measol is owned to 100 percent by Soltech, the installation operation in the former subsidiary Soltech Sales & Support * will during the winter of 2022 become part of Measol. The company will be based in both Stockholm and Halmstad, as well as opening an office in Skåne during the coming year.

– This is a very positive milestone in our history. We will have even better opportunities to develop our high-quality installation business to meet the increased demand for installation services. We look forward to a 2022 where we will be an even stronger player in solar energy and charging installations on the growing market and we take our business to the next level, says Marcus Nylund, CEO of Measol.

Soltech has an offensive growth strategy with acquisitions in the solar, roof, facade and electrical engineering industries. Together, these companies will create synergy effects and build a strong hub with cross-border expertise that can offer complete solutions. The solar energy group is now acquiring two reputable companies in Falun, which strengthens Soltech's presence in Mellansverige and not least in Dalarna.

– It feels great that Soltech is now also to be found in the heart of Dalarna. Takab and Falu Plåtslageri are well-run companies with a good reputation and their will to integrate solar energy in their solutions inspires. I would like to warmly welcome Jon Onsbacke and all employees to the Group, says Stefan Ölander, CEO of Soltech Energy.

Two companies with a solid history
Takab was founded in 2004 and has since had a successful journey. In 2017, Takab's owner acquired Falu Plåtslageri, a classic sheet metal manufacturer, founded as early as 1952. Since then, the companies have been run by the same owner, Jon Onsbacke. Both companies have great ambitions to add solar energy to their offerings as they now become part of Soltech.

– This is a fantastic day for both Takab and Falu Plåtslageri. We are highly motivated to become part of the Soltech Group and to be able to continue to offer high-quality roofing, adding on solar energy solutions in the future. This will strengthen us, create new opportunities and we are looking forward to getting to know our new sister companies, says Jon Onsbacke, CEO of Falu Plåtslageri and Takab.

Soltech has an offensive growth strategy with acquisitions in the solar, roof, facade and electrical engineering industries. Together, these companies will create synergy effects and build a strong group with cross-border expertise that can offer complete solutions. The acquisition of ESSA will be Soltech's second acquisition in the facade industry and establishes the solar energy group in the Örebro region.

– This acquisition strengthens our position in the facade industry, which is becoming an increasingly important segment in solar energy. We are also strengthening our presence in the strategically important Örebro region. ESSA Glas & Aluminum is run by skilled entrepreneurs with deep technical and industry expertise, and I would like to warmly welcome Ola, Örjan and their entire team to Soltech, says Stefan Ölander, CEO of Soltech Energy.

Investing in solar cell facades
ESSA was founded in 2012 and has since had a successful journey and is at the forefront of its industry. The business is run from the production facility outside Örebro and the company performs all types of exterior and interior glass solutions, with an emphasis on facade construction of commercial properties. When ESSA now becomes part of Soltech, it is a stated ambition to grow within ​​solar cell facades.

– It is a great pleasure to now be a part of the Soltech Group, something that brings great opportunities for us as a company. Both in terms of new business opportunities but also in important knowledge exchange and collaboration opportunities with our new sister companies. Becoming part of a large solar energy group will help ESSA to the next level where solar energy solutions will become a great competitive advantage for us, says Ola Karlsson, CEO of ESSA Glass & Aluminum.

The Soltech Group's latest acquisition, the electrical engineering company Neabgruppen, based in southern Sweden, Stockholm and Norrköping, has been chosen to install a full-scale electrical installation as well as a solar energy solution and has signed an agreement with the well-known construction company, ED Bygg i Sverige AB. The assignment applies to electrical installations in apartments and a green energy solution, a roof-mounted solar energy solution. The project is being developed for the real estate company AB Stångastaden.

The construction start for the electrical installations and solar energy solution is at the end of 2021 and the project is expected to be completed in 2023. Pelle Norberg, CEO of Neabgruppen, comments on the news of the collaboration with ED Bygg i Sverige AB.

– It is very gratifying that we are now strengthening our collaboration with ED Bygg further. It is a construction company that prioritizes sustainable solutions and innovation, something that is totally in line with our own ambitions. I would like to congratulate the entire Neabgruppen Region Mitt with Thomas Tyrestedt at the helm, and we are all looking forward to this project, says Pelle Norberg, CEO of Neabgruppen.

Soltech continues to deliver triple-digit growth with an increase of as much as 110% at Group level and 162% for the Swedish operations.

CEO comment:
– Rapid growth is our focus and here we really deliver again. Having 162% growth, of which 39% organic, is a sign of strength. We are in a strong position for 2022, which I am really looking forward to.

THIRD QUARTER IN BRIEF
▪ The Group's revenues in the quarter amounted to SEK 267.2 (127.2) million. An increase of 110%. The Group's organic growth amounted to 39%.
▪ Revenues in the Swedish operations increased to SEK 220.1 (84) million, an increase of 162%.
▪ Revenues in the Chinese operations amounted to SEK 47.1 (43.2) million, an increase of 9%.
▪ The Group's profit before depreciation (EBITDA) amounted to SEK 29.3 (38.9) million. The decrease was driven by continued investment in existing operations and is also
linked to component shortages and increased prices of goods.
▪ The Group's operating profit (EBIT) amounted to SEK 4.6 (23.1) million. The decrease in operating profit is due to increased amortization of goodwill, as a direct result of completed company acquisitions, as well as investments in solar energy facilities and investments in existing operations.
▪ Profit for the period after tax amounted to SEK -10.6 (-18.1) million. The result was affected by unrealized exchange rate differences in the Chinese operations by SEK 22.1 (1.3) million.
▪ Cash flow for the period from operating activities amounted to -116.9 (11.4) MSEK and has been affected by investments in existing operations and increased inventory levels to secure deliveries to existing projects.
▪ Cash flow for the Group for the period amounted to SEK 399.6 (85.5) million. As in the previous year, cash flow has been affected by the completed new share issue.
▪ Earnings per share amounted to -0.19 (-0.31).

THE FIRST NINE MONTHS IN BRIEF
▪ The Group's revenues amounted to SEK 674 M (336.1). An increase of 101%. The Group's organic growth amounted to 42%.
▪ Revenues in the Swedish operations increased to SEK 554.3 (231) million, an increase of 140%.
▪ Revenues in the Chinese operations increased to SEK 119.7 (105.1) million, an increase of 14%.
▪ The Group's profit before depreciation (EBITDA) amounted to SEK 50.3 (87.3) million. The decrease was driven by continued investment in existing operations and is linked to component shortages and increased prices of goods. EBITDA was also negatively affected by non-recurring effects of SEK 11.7 million regarding redemption of minority interests and revaluation of additional purchase prices.
▪ The Group's operating profit (EBIT) amounted to SEK -15.6 (43.9) million. The decrease in operating profit is due, in addition to what is stated in the previous point, to increased
amortization of goodwill, as a direct result of completed company acquisitions, as well as investments in solar energy facilities and investments in existing operations.
▪ Profit for the period after tax amounted to SEK -60.6 (-60.6) million. The result was affected by unrealized exchange rate differences in the Chinese operations by 58.7 (-4.8) MSEK.
▪ The Corona pandemic has affected the Swedish operations mainly in the form of increased transport costs and price increases for, among other things, solar panels. The order entry is still good in the quarter.
▪ The Chinese operations were affected to a lesser extent by the Corona pandemic and, according to the company's estimate, an impact of SEK -1.4 (-2.0) million as a result of the general price reduction on electricity remaining.

SIGNIFICANT EVENTS DURING THE THIRD QUARTER
Sweden
▪ The Board of Directors of Soltech Energy Sweden AB decided on 13 August 2021 to carry out a new share issue of approximately SEK 247 million with preferential rights to existing
shareholders and a possible over-allotment of approximately SEK 150 million. The rights issue was oversubscribed by 166% and the company was thus provided with SEK 397 million before issue costs.
▪ On 22 September, the Board of Directors of Soltech Energy Sweden AB decided to list the ordinary shares in the subsidiary Advanced Soltech Sweden AB on Nasdaq First North Growth Market.
▪ As of August 30, Soltech Energy has acquired 90.1% of the shares in Wettergrens Tak & Plåtslageri AB (Wettergrens) with access on September 2, 2021.
▪ Soltech Energy has decided to merge the operations of the three wholly owned subsidiaries MeraSol AB, Swede Energy Power Solutions AB, and most of the operations in Soltech Sales & Support AB. The new company is called Soltech Energy Solutions 1988 AB.
▪ Soltech Energy's subsidiary, Swede Energy, has entered into an agreement for what will be the Nordic region's largest roof-placed solar cell plant, both in terms of area and power. The area is 65,000 m2.

China
▪ During the quarter, ASAB's subsidiary in China, ASRE, signed new orders amounting to a total installed capacity of 13.6 MW.
▪ At the end of the period, the company had 51 (55) MW in signed orders, as well as projects under processing of 125 (134) MW.
▪ During the period, SEK 71 million was added before issue costs in new issues of preference shares.
▪ The Chinese operations are granted unsecured local bank loans of CNY 40 million (approximately SEK 54 million) at an interest rate of approximately 4.6%.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
▪ As of October 1, Soltech Energy has acquired 100% of the shares in the electrical engineering company NEAB Gruppen AB.
▪ Soltech Energy participates in the world exhibition Expo 2020 in Dubai Oct 2021 – March 2022, where Soltech installed a 500 m2 sunroof and 500 m2 sun facade on the Swedish pavilion.
▪ Nomination Committee prior to the Annual General Meeting on 12 May 2022 in Soltech Energy Sweden AB (publ) has been appointed.
▪ On 28 October, the Government decided on an amendment to the ordinance that will be introduced on 1 January 2022, which allows transfer of energy between several units without the requirement for a network concession. It can be expected to improve opportunities and reduce the cost of solar investment in larger properties
▪ On October 29, 2021, Soltech Energy Sweden AB's subsidiary Advanced Soltech Sweden AB (ASAB) was listed on the Nasdaq First North Growth Market. This meant that Soltech Energy AB's ownership interest in the company after IPO and conversion of preference shares decreased from 50.73% to 29.35%. Furthermore, this meant that Soltech Energy Sweden AB no longer has the controlling influence over ASAB and that as of October 29, 2021, ASAB is no longer reported as a subsidiary in the parent company and the group. As of October 30, 2021, ASAB will be reported in the consolidated financial statements as an associated company according to the equity method.

In connection with the special listing, a revaluation result arises in the Group. Preliminarily, the revaluation result amounts to approximately SEK 287 million based on preliminary consolidated values ​​as of the divestment date for ASAB. The revaluation result does not affect cash flow and will be reported in the fourth quarter of 2021.

Following the listing, Soltech Energy Sweden AB owns 11,373,941 number of shares in ASAB with a book value of SEK 27 per share, corresponding to the value per share on the day of the listing. Following the listing, Soltech Energy Sweden AB in the Group reports SEK 307 million in participations in associated companies. Other significant effects on the balance sheet for the Soltech Group are that fixed assets decrease by approximately SEK 1.3 billion, of which solar energy facilities amount to approximately SEK 1.2 billion and that long-term liabilities decrease by approximately SEK 1 billion, of which bond loans amount to approximately SEK 0.9 billion.

Soltech's holdings in ASAB continue to be reported quarterly in operating profit and consist of Soltech Energy Sweden AB's share of profit in ASAB, amortization of surplus values ​​in solar energy plants, deferred tax and currency translation of surplus values.

The share price of ASAB has developed positively since the IPO on October 29, with a closing price on November 29 of SEK 59.6 / share, which corresponds to a value of approximately SEK 640 million for Soltech's shares.