The preliminary result of the offering indicates that a total of 3,577,718 shares in Advanced Soltech were acquired through exercise of purchase rights, corresponding to approximately 49 per cent of the Offering. Applications to acquire a total of 902,405 Advanced Soltech shares without exercise of purchase rights, corresponding to approximately 12 per cent of the Offering, were received. Approximately 62 per cent of the Offering was thus subscribed for during the application period, which means 100 per cent of the external guarantee commitments will be utilised, corresponding to approximately 25 per cent of the Offering, and that approximately 17 per cent of the guarantee commitments from the existing principal owners Soltech Energy and Advanced Solar Power Hangzhou Inc. (“ASP”) will be utilised, corresponding to approximately 13 per cent of the Offering. Following the utilisation of guarantee commitments, the proceeds to Advanced Soltech from the Offering will in aggregate amount to approximately SEK 196 million, before deduction of expenses related to the Offering.

As communicated on 28 September 2021, Nasdaq Stockholm AB has approved Advanced Soltech’s listing application for Nasdaq First North Growth Market, subject to customary conditions. These conditions have now been fulfilled. Trading in the Advanced Soltech share on Nasdaq First North Premier are expected to commence on October 29, 2021.

Max Metelius, CEO, comments:

“As CEO of Advanced Soltech, I am proud and happy about the great interest shown for the Company during the listing process, which will be a great asset for our future growth journey. Advanced Soltech has a well-developed competency and is today an established player in the world's largest solar energy market, which together with our listing creates a solid platform for continued growth. It is with great pleasure that I welcome the new shareholders on our continued journey.”

Stefan Ölander, CEO of Soltech Energy, comments:

“I am happy and proud that Advanced Soltech now stands on their own feet after the introduction. Both companies will now have the best opportunities to focus and build value on their respective market.”

About Advanced Soltech

Advanced Soltech is a power producer of renewable electricity that finances, owns and operates rooftop-mounted solar PV installations in China. The Company enters into 20-year contracts with the owners of large properties, which undertake to purchase the produced electricity over the duration of the contract. The electricity purchased from Advanced Soltech is priced at a discount of approximately 10–15 per cent compared to the price that the customer would pay for electricity from the grid.

Advanced Soltech is headquartered in Stockholm, Sweden and the wholly-owned local operating subsidiary Advanced Soltech Renewable Energy Hangzhou Co. Ltd. (“ASRE”) is headquartered in Hangzhou, China.

ASRE was founded in 2015 as a joint venture between the Swedish solar energy company Soltech Energy and the Chinese solar panel producer ASP with the vision of accelerating the migration to renewable energy through a solar as a service offering, where the electricity produced by the solar PV installations is sold to the customers instead of the solar PV installation itself.

With its solar as a service offering, Advanced Soltech is able to create interest from previously untapped customer segments within the rapidly growing renewable energy market in China as the Company's solution offers an easy and attractive alternative to traditional solar power solutions where the property owners themselves would have to install and maintain their own solar PV panel installations.

Advanced Soltech has, as of 30 June 2021, a portfolio of 134 electricity-generating solar PV panel installations with a combined capacity of 192.5 MW and has reached a stage in its development where the business model has become commercially viable. In addition to the operating solar PV panel installations there is a pipeline of projects with a combined capacity of 123 MW. In addition, there are signed contracts corresponding to 37 MW.

Advisors

Carnegie Investment Bank AB (publ) (“Carnegie”) and DNB Markets, a part of DNB Bank ASA, Sweden branch (“DNB”) act as Joint Global Coordinators in connection with the Offering. Advokatfirma DLA Piper Sweden KB is the legal advisor to the Company and Gernandt & Danielsson Advokatbyrå KB is the legal advisor to the Joint Global Coordinators.

For further information please contact:

Frederic Telander, Working Chairman of the Board
Frederic.telander@advancedsoltech.com, +46 (0) 70 525 16 03

Max Metelius, CEO
max.metelius@advancedsoltech.com, +46 (0) 72 316 04 44

Lars Höst, CFO
lars.host@advancedsoltech.com, +46 (0) 72 229 00 36

The information in this press release has been made public through the agency of the responsible person set out above for publication on October 28, 2021 [•] CEST.

Important information

This announcement does not constitute an offer of securities in Advanced Soltech Sweden AB (publ) (the "Company") in any jurisdiction.

This announcement does not constitute a prospectus in any jurisdiction, including for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (together with any related implementing and delegated regulations, the “Prospectus Regulation”), and has not been approved by any regulatory authority in any jurisdiction. A prospectus in connection with the Offering will be prepared and published by the Company on the Company website. Investors should not invest in any securities referred to in this announcement except on the basis of information contained in the aforementioned prospectus.

In any EEA Member State other than Sweden, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation, i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State.

The contents of this announcement have been prepared by and is the sole responsibility of the Company. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed by any person for any purpose on the information contained in this announcement or its accuracy, fairness or completeness.

This announcement and the information contained herein is not for publication, distribution or release, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America or any other jurisdiction where the publication, distribution or release would be unlawful. This announcement is not an offer to sell or a solicitation of any offer to buy any securities issued by the Company in any jurisdiction where such offer or sale would be unlawful.

This announcement does not constitute, or form part of, an offer to sell, or a solicitation of an offer to purchase, the shares and/or any other securities in the Company referred to in this announcement in the United States including its territories and possessions and any state of the United States. The shares and/or any other securities referred to in this announcement have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The offer and sale of the securities referred to herein has not been and will not be registered under the applicable securities laws of Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America. There has been no and will be no public offer of securities in the Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America.

In the United Kingdom this announcement is being distributed only to, and directed exclusively at, qualified investors (i) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) who fall within Article 49(2)(A) to (D) of the Order; and (iii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as “Relevant Persons”). This announcement and any investment or investment activity to which it relates will only be engaged in within the United Kingdom, by persons who are Relevant Persons. This announcement should not be acted on or relied on by anyone other than Relevant Persons in the United Kingdom.

Forward-looking statements

Statements included in this announcement that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are, or may be deemed to be, “forward-looking statements”. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “aims”, “targets”, “may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements reflect the Company’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company’s business, results of operations, financial position, liquidity, prospects, growth or strategies. Forward-looking statements speak only as of the date they are made and are subject to change without notice and do not purport to contain all information that may be required to evaluate the Company. The information included in this announcement may be subject to updating, revision and amendment and such information may change materially. No person is under any obligation to update or keep the current information contained in this announcement and any opinions expressed relating thereto are subject to change without notice.

Information to distributors

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "MiFID II Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares in the Company have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "EU Target Market Assessment"). Solely for the purposes of each manufacturer's product approval process in the United Kingdom, the target market assessment in respect of the shares in the Company has led to the conclusion that: (i) the target market for such shares is only eligible counterparties, as defined in the FCA Handbook Conduct of Business Sourcebook, and professional clients, as defined in Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MiFIR"); and (ii) all channels for distribution of such shares to eligible counterparties and professional clients are appropriate (the "UK Target Market Assessment" and, together with the EU Target Market Assessment, the "Target Market Assessment"). Notwithstanding the Target Market Assessment, Distributors should note that: the price of the shares in the Company may decline and investors could lose all or part of their investment; the shares in the Company offer no guaranteed income and no capital protection; and an investment in the shares in the Company is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Offering.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II or UK MiFIR; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in the Company.

Each distributor is responsible for undertaking its own target market assessment in respect of the shares in the Company and determining appropriate distribution channels.

The Offering in brief

• Nasdaq Stockholm AB has, subject to customary conditions, made the assessment that Advanced Soltech meets the applicable listing requirements on Nasdaq First North Growth Market.
• Shareholders in Soltech Energy will be allotted one (1) purchase right (Sw. inköpsrätt) for each share held in Soltech Energy on the record date, 11 October 2021. Thirteen (13) purchase rights grant the right to acquire one (1) Advanced Soltech share for SEK 27.
• In aggregate, 7,272,043 ordinary shares in Advanced Soltech, corresponding to 23.2 percent of the outstanding ordinary shares in Advanced Soltech (votes as well as capital), will be offered for sale.
• Soltech Energy will use the proceeds to subscribe for the corresponding number of new ordinary shares in Advanced Soltech at the same price, so that the proceeds for ordinary shares sold in the Offering will be allocated to Advanced Soltech and Soltech Energy's number of shares in Advanced Soltech will not decrease as a result of the Offering.
• Isac Brandberg AB and Stiftelsen The World We Want have made guarantee commitments totalling approximately SEK 50 million, corresponding to approximately 25 percent of the Offering, for a guarantee fee of 6 percent. If there are additional amounts that are not subscribed after these guarantees, the existing principal owners Soltech Energy and Advanced Solar Power Hangzhou Inc. have undertaken to subscribe for shares in the Company corresponding to the remaining part of a maximum of approximately SEK 146 million, corresponding to approximately 75 percent of the Offering, without the right to compensation. The Offering is thus fully guaranteed.
• The sale of the Advanced Soltech ordinary shares included in the Offering will bring in SEK 196 million to the Company before deduction of expenses related to the Offering.
• The Company reserves the right to issue additional ordinary shares to qualified investors at a subscription price corresponding to the price in the Offering for the purpose of raising additional capital if the demand exists among such investors.
• In connection with the Listing, all preference shares in the Company will be converted into 9,810,221 ordinary shares with a total value of approximately SEK 265 million, corresponding to 116.25 percent of the amount paid for the preference shares issued in September 2020 and 115 percent of the amount paid for the remaining outstanding preference shares.
• The price in the Offering corresponds to a pre-money market capitalisation of Advanced Soltech’s ordinary shares of approximately SEK 845 million.
• The first day of trading in the Company’s ordinary shares on Nasdaq First North Growth Market is expected to 29 October 2021, and the share will be traded under the ticker symbol “ASAB”. The expected settlement date is 2 November 2021.

Stefan Ölander, CEO Soltech Energy, comments

• We are now proud to be able to publish the special listing of Advanced Soltech. Our shareholders receive an attractive offer to expand their investment in the world's largest solar energy market by using the purchase rights granted to all Soltech Energy's shareholders. The purchase rights give the right to acquire shares in Advanced Soltech. If a shareholder chooses not to exercise his purchase rights, they can be sold and he still has at least part of his investment in the solar energy market in China, as Soltech Energy will continue to be a major owner in Advanced Soltech. All newly issued shares from Soltech's recently completed rights issue and over-allotment issue will be allotted purchase rights.

Max Metelius, CEO Advanced Soltech, comments:

• Since the start, Advanced Soltech has financed, installed, owned and operated rooftop-mounted solar PV installations in China and today has a portfolio of 134 electricity-generating solar PV panel installations with a combined capacity of 192.5 MW. The Company has reached a stage in its development where the business model has become commercially viable, and we intend to increase the capacity rapidly and strive to achieve a total capacity of 1,000 MW as early as 2024. Over the past year, we have been working towards an IPO and feel well prepared for this next step in our journey.”

Frederic Telander, Working Chairman of the Board Advanced Soltech, comments:

• We are very proud of Advanced Soltech’s history of high quality and strong growth in a value-driven organisation. The Company is today an established player within solar energy in China and has a proven business model. We see great growth and development opportunities and with the Listing we hope to welcome more shareholders to join our continued journey in the fast-growing market for green energy in China.

Background and reasons for the Offering

The forthcoming Offering together with the Listing of the Company’s ordinary shares on Nasdaq First North Growth Market enables Advanced Soltech to take advantage of the growth opportunities that exist in the Chinese market for solar power, make visible the values that exist in the Company and create a stable, long-term basis for the Company’s continued development.

Terms and conditions for the Offering

Shareholders in Soltech Energy on the record date, 11 October 2021, will be allotted one (1) purchase right for each share in Soltech Energy. Thirteen (13) purchase rights grant the right to acquire one (1) Advanced Soltech share from Soltech Energy. SEK 27 should be paid in cash for each acquired Advanced Soltech share.

In the event not all ordinary shares in the Offering are acquired by exercise of purchase rights (primary purchase rights) Soltech Energy’s Board of Directors will, within the framework of the Offering, resolve on the allocation of Advanced Soltech ordinary shares without support from purchase rights.

Isac Brandberg AB and Stiftelsen The World We Want have made guarantee commitments totalling approximately SEK 50 million, corresponding to approximately 25 percent of the Offering. If there are additional amounts that are not subscribed after these guarantees, the existing principal owners Soltech Energy and Advanced Solar Power Hangzhou Inc. have undertaken to subscribe for ordinary shares in the Company for the remaining part of a maximum of approximately SEK 146 million, corresponding to approximately 75 percent of the Offering, without the right to compensation. The Offering is thus fully guaranteed and Advanced Soltech will through the issue of 7,272,043 ordinary shares bring in SEK 196 million to the Company before deduction of expenses related to the Offering.

The sale of the Advanced Soltech ordinary shares included in the Offering will bring in SEK 196 million to the Company before deduction of expenses related to the Offering. In order to ensure that Soltech Energy owns the same number of ordinary shares in Advanced Soltech after the Offering as before the Offering and that the proceeds for ordinary shares sold in the Offering will be allocated to Advanced Soltech, Advanced Soltech will carry out a directed issue at the same price as in the Offering, of the same number of ordinary shares sold in the Offering to Soltech Energy

The record date in Soltech Energy for obtaining purchase rights is 11 October 2021. Last day of trading in the Soltech Energy share including rights to allotment of purchase rights in the Offering is 7 October 2021. First day of trading in the Soltech Energy share excluding rights to allotment of purchase rights is 8 October 2021. Application to acquire Advanced Soltech ordinary shares shall be made between 13 October 2021 – 27 October 2021. Trading with purchase rights occurs between 13 October 2021 – 25 October 2021 and is arranged on the OTC list through beQuoted (BQ Broker).

For purchase rights that are not exercised, no financial compensation will be paid. Shareholders who receive purchase rights should take into account that taxation takes place in different ways depending on whether the purchase rights are exercised, sold or expire unused.

In connection with the Listing, 99,050 preference shares of series A and 14,750 preference shares of Series B, a total of 113,800 preference shares, will be converted into 9,810,221 ordinary shares and new Articles of Association will be adopted, meaning that the Company will only have one class of shares. The preference shareholders shall receive ordinary shares with a value of approximately SEK 265 million, corresponding to 116.25 percent of the amount paid for the preference shares issued in September 2020 and 115 percent of the amount paid for the remaining outstanding preference shares.

Prospectus

For further information on, including, complete terms and instructions for the Offering, please refer to the prospectus that has been prepared in connection with the Offering and as of today 28 September 2021 has been approved by the SFSA. The prospectus is available on Advanced Soltech's website (www.advancedsoltech.se) and Soltech Energy's website (www.soltechenergy.com). During the application period, the prospectus will also be available on Carnegie's website (www.carnegie.se) and on DNB's website for ongoing issues (www.dnb.se/emission). The prospectus will, within a few days, be available on the SFSA’s prospectus register (www.fi.se/sv/vara-register/prospektregistret).

Listing on Nasdaq First North Growth Market

The Board of Directors of Advanced Soltech has applied for, and received, approval from Nasdaq Stockholm AB regarding the listing of the Company’s ordinary shares on Nasdaq First North Growth Market, provided that customary conditions are fulfilled, including that the distribution requirements in respect of the Company’s ordinary shares is fulfilled no later than on the first day of trading and that the Company submits an application for the Company’s ordinary shares to be admitted for trading on Nasdaq First North Growth Market. The first day of trading in the Advanced Soltech share on Nasdaq First North Growth Market is expected to 29 October 2021, and the share will be traded under the ticker symbol “ASAB”.

Preliminary timetable

Last day of trading in the Soltech Energy share including rights to allotment of purchase rights in the Offering	7 October 2021
First day of trading in the Soltech Energy share excluding rights to allotment of purchase rights in the Offering	8 October 2021
Record date in Soltech Energy, shareholders registered in the shareholder register on this day will receive purchase rights that give the right to participate in the Offering	11 October 2021
Trading in purchase rights through BQ Broker	13 October 2021– 25 October 2021
Application period – application to acquire Advanced Soltech ordinary shares	13 October 2021– 27 October 2021
Estimated announcement of the outcome of the Offering	29 October 2021
First day of trading in Advanced Soltech on Nasdaq First North Growth Market	29 October 2021
Settlement date	2 November 2021

About Advanced Soltech

Advanced Soltech is a power producer of renewable electricity that finances, owns and operates rooftop-mounted solar PV installations in China. The Company enters into 20-year contracts with the owners of large properties, which undertake to purchase the produced electricity over the duration of the contract. The electricity purchased from Advanced Soltech is priced at a discount of approximately 10–15 percent compared to the price that the customer would pay for electricity from the grid.

Advanced Soltech is headquartered in Stockholm, Sweden and the wholly-owned local operating subsidiary Advanced Soltech Renewable Energy Hangzhou Co. Ltd. (“ASRE”) is headquartered in Hangzhou, China.

ASRE was founded in 2015 as a joint venture between the Swedish solar energy company SolTech Energy Sweden AB (publ) and the Chinese solar panel producer Advanced Solar Power Hangzhou Inc. with the vision of accelerating the migration to renewable energy through a solar as a service offering, where the electricity produced by the solar PV installations is sold to the customers instead of the solar PV installation itself.

With its solar as a service offering, Advanced Soltech is able to create interest from previously untapped customer segments within the rapidly growing renewable energy market in China as the Company's solution offers an easy and attractive alternative to traditional solar power solutions where the property owners themselves would have to install and maintain their own solar PV panel installations.

Advanced Soltech has, as of 30 June 2021, a portfolio of 134 electricity-generating solar PV panel installations with a combined capacity of 192.5 MW and has reached a stage in its development where the business model has become commercially viable. In addition to the operating solar PV panel installations there is a pipeline of projects with a combined capacity of 123 MW. In addition, there are signed contracts corresponding to 37 MW.

Advisors

Carnegie Investment Bank AB (publ) (“Carnegie”) and DNB Markets, a part of DNB Bank ASA, Sweden branch (“DNB”) act as Joint Global Coordinators. Advokatfirma DLA Piper Sweden KB is the legal advisor to the Company and Gernandt & Danielsson Advokatbyrå KB is the legal advisor to the Joint Global Coordinators.

Important information

This announcement does not constitute an offer of securities in Advanced SolTech Sweden AB (publ) (the "Company") in any jurisdiction.

This announcement does not constitute a prospectus in any jurisdiction, including for the purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (together with any related implementing and delegated regulations, the “Prospectus Regulation”), and has not been approved by any regulatory authority in any jurisdiction. A prospectus in connection with the Offering will be prepared and published by the Company on the Company website. Investors should not invest in any securities referred to in this announcement except on the basis of information contained in the aforementioned prospectus.

In any EEA Member State other than Sweden, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation, i.e., only to investors who can receive the offer without an approved prospectus in such EEA Member State.

The contents of this announcement have been prepared by and is the sole responsibility of the Company. The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed by any person for any purpose on the information contained in this announcement or its accuracy, fairness or completeness.

This announcement and the information contained herein is not for publication, distribution or release, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America or any other jurisdiction where the publication, distribution or release would be unlawful. This announcement is not an offer to sell or a solicitation of any offer to buy any securities issued by the Company in any jurisdiction where such offer or sale would be unlawful.

This announcement does not constitute, or form part of, an offer to sell, or a solicitation of an offer to purchase, the shares and/or any other securities in the Company referred to in this announcement in the United States including its territories and possessions and any state of the United States. The shares and/or any other securities referred to in this announcement have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold within the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The offer and sale of the securities referred to herein has not been and will not be registered under the applicable securities laws of Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America. There has been no and will be no public offer of securities in the Australia, Canada, Hong Kong, Japan, New Zeeland, Singapore, United Kingdom, South Africa, Switzerland, South Korea and the United States of America.

In the United Kingdom this announcement is being distributed only to, and directed exclusively at, qualified investors (i) who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) or (ii) who fall within Article 49(2)(A) to (D) of the Order; and (iii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as “Relevant Persons”). This announcement and any investment or investment activity to which it relates will only be engaged in within the United Kingdom, by persons who are Relevant Persons. This announcement should not be acted on or relied on by anyone other than Relevant Persons in the United Kingdom.

Forward-looking statements

Statements included in this announcement that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are, or may be deemed to be, “forward-looking statements”. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “aims”, “targets”, “may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements reflect the Company’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company’s business, results of operations, financial position, liquidity, prospects, growth or strategies. Forward-looking statements speak only as of the date they are made and are subject to change without notice and do not purport to contain all information that may be required to evaluate the Company. The information included in this announcement may be subject to updating, revision and amendment and such information may change materially. No person is under any obligation to update or keep the current information contained in this announcement and any opinions expressed relating thereto are subject to change without notice.

Information to distributors

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "MiFID II Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the shares in the Company have been subject to a product approval process, which has determined that such shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "EU Target Market Assessment"). Solely for the purposes of each manufacturer's product approval process in the United Kingdom, the target market assessment in respect of the shares in the Company has led to the conclusion that: (i) the target market for such shares is only eligible counterparties, as defined in the FCA Handbook Conduct of Business Sourcebook, and professional clients, as defined in Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MiFIR"); and (ii) all channels for distribution of such shares to eligible counterparties and professional clients are appropriate (the "UK Target Market Assessment" and, together with the EU Target Market Assessment, the "Target Market Assessment"). Notwithstanding the Target Market Assessment, Distributors should note that: the price of the shares in the Company may decline and investors could lose all or part of their investment; the shares in the Company offer no guaranteed income and no capital protection; and an investment in the shares in the Company is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Offering.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II or UK MiFIR; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the shares in the Company.

Each distributor is responsible for undertaking its own target market assessment in respect of the shares in the Company and determining appropriate distribution channels.

CEO Stefan Ölander in a comment:
– We are humbly grateful for the great trust existing shareholders have shown us in this new share issue as they have subscribed for well over SEK 400 million. The Board has decided that our existing shareholders will receive 100 percent of the allotment in the issues. We will now continue our successful acquisition strategy, invest in existing subsidiaries and contribute to a green energy transition.

Number of shares and Over-allotment
A total of 11,471,235 shares were subscribed for with the support of subscription rights, corresponding to approximately 93 percent of the Rights Issue, and 21,389,118 shares without the support of subscription rights, corresponding to approximately 173 percent of the Rights Issue.

To enable an even greater investment in acquisitions and existing subsidiaries, the Board has decided to issue an additional 7,500,000 shares in an Over-allotment Issue. This is done at a subscription price of SEK 20 per share, which gives SEK 150 million, and on the terms stated in the prospectus regarding the Rights Issue, which gives approximately SEK 247 million.

Through the Rights Issue and the Over-allotment Issue, a total of 19,861,207 shares will be issued and the Company will thus receive approximately SEK 397 million before issue costs of approximately SEK 3.5 million.

Allocation in the Rights Issue
The persons who have subscribed for shares on the basis of subscription rights have been allotted BTA in connection with simultaneous payment. Notice of allotment to the persons who have subscribed for shares without the support of subscription rights is expected to be distributed on 9 September 2021 by sending a settlement note. Allocation to the persons who have subscribed for shares via a nominee is expected to be visible in the account around 9 September 2021. Nominee-registered shareholders will be notified of the allotment in accordance with the respective nominee’s routines. Subscribed and allotted shares must be paid in cash no later than the settlement date, 14 September 2021, in accordance with the instructions on the settlement note. Only those who receive shares will be notified.

Allocation in the Over-Allocation Issue
Notice of allotment to the persons who have subscribed for shares without the support of subscription rights is expected to be distributed on 9 September 2021 by sending a settlement note.

The Board of Directors has decided to grant the right to allotment to existing shareholders who have also subscribed for shares without preference in the Over-allotment Issue. This is done pro rata in relation to the number of shares subscribed with preference. The decision means that existing shareholders will be allotted 100 percent of the Rights Issue and the Over-allotment Issue.

Share capital and number of shares
After registration of the Rights Issue and the Over-allotment Issue with the Swedish Companies Registration Office, the Company’s share capital will increase by SEK 993,060.35 to a total of SEK 4,707,464.25. The number of shares in the Company will thereafter increase by an additional 19,861,207 shares to a total of 94,149,285 shares.

Paid subscribed shares, BTA
Subscription of shares with and without preferential rights took place during the period 24/8 – 7/9 2021. As soon as the share capital increase has been registered with the Swedish Companies Registration Office, paid subscribed shares (BTA) in the rights issue will be converted into new shares. Until then, trading with BTA on the Nasdaq First North Growth Market will go on. Trading in new shares is expected to begin on Nasdaq First North Growth Market around week 41 2021. The persons allotted shares in the directed Over-allotment Issue will not receive BTA but will instead be allotted shares after the share capital increase has been registered with the Swedish Companies Registration Office. This is expected to take place around week 41 2021.

According to a press release on 13 August 2021, Soltech Energy Sweden AB (publ) will carry out a rights issue with a subscription period 24/8 – 7/9.

Trading in subscription rights was planned to take place between 24/8 – 2/9, but due to technical problems with a supplier, trading will not start until 25/8 – 2/9.

The Board of Directors of Soltech Energy Sweden AB (“Soltech” or “the Company”) has prepared a supplementary prospectus (the “Supplementary Prospectus”) to the EU Growth Prospectus that was approved and registered by Finansinspektionen and published on 13 August 2021 (the “Prospectus”).

The supplementary prospectus has been prepared due to Soltech's publication of the Company's financial report for the second quarter of 2021. On August 20, 2021, the report is available on the Company's website, www.soltechenergy.com

The Supplementary Prospectus has been prepared in accordance with Article 23 of Regulation (EU) 2017/1129 of the European Parliament and of the Council (the “Prospectus Regulation”) and has today, 20 August 2021, been approved and registered by the Swedish Financial Supervisory Authority. The supplementary prospectus must be read together with the Prospectus in all respects. The Prospectus and the Supplementary Prospectus are available on Soltech's website, www.soltechenergy.com and on Aktieinvest FK's website, www.aktieinvest.se and will also be available on Finansinspektionen's website, www.fi.se.

For complete terms and other information about the Rights Issue, please refer to the Prospectus and the Supplementary Prospectus.

The financial year 2021 continues completely according to plan with strong growth during the second quarter. The Group's revenues increase by 71% to SEK 266.2 million and the Swedish operations increase by as much as 102% to SEK 220.7 million.

CEO comment:
• I am proud to lead a group that is growing so fast and that contributes to a green energy transition. The future looks very bright.

SECOND QUARTER IN BRIEF

▪ The Group's revenues in the quarter amounted to SEK 266.2 (156.1) million. An increase of 71%.

▪ Revenues in the Swedish operations grew to SEK 220.7 (109.1) million, an increase of 102%.

▪ Revenues in the Chinese operations amounted to SEK 45.5 (47) million, a decrease of 3%.

▪ The Group's profit before depreciation (EBITDA) amounted to SEK 29.3 (49.7) million. The decrease is mainly driven by increased personnel costs and investments that are associated with the strong expansion and the work of further developing the Group. EBITDA is also negatively affected by increased transport costs and price increases of e.g. a. solar panels as a result of the Corona pandemic.

▪ The Group's operating profit (EBIT) amounted to SEK 8.3 (35.6) million. The decrease in operating profit is, in addition to what is stated above, also due to increased amortization of goodwill and solar energy facilities as a direct result of completed investments.

▪ Profit for the period after tax amounted to SEK -31.8 million (-37). The result was affected by unrealized exchange rate differences in the Chinese operations by SEK 3.5 (-38.5) million.

▪ Cash flow for the period from operating activities amounted to 48.9 (-13.3).

▪ The period's cash flow for the Group amounted to SEK -25.5 (69.4) million.

▪ Earnings per share amounted to -0.33 (-0.65).

▪ Covid-19 affected the Swedish operations in the second quarter in the form of postponed projects, increased transport costs and price increases for, among other things, solar panels. However, order intake remains good.

▪ The Chinese operations were affected to a lesser extent by the Corona pandemic as economic activity is high, but the Chinese price reduction of about five percent on electricity still remains.

THE FIRST HALF OF THE SHORT

▪ The Group's revenues amounted to SEK 411.4 (208.9) million. An increase of 97%.

▪ Revenues in the Swedish operations grew to SEK 338.8 (146.9) million, an increase of 131%.

▪ Revenues in the Chinese operations grew to SEK 72.6 (61.9) million, an increase of 17%.

▪ The Group's profit before depreciation (EBITDA) amounted to SEK 21 (48.4) million. EBITDA was negatively affected by non-cash non-cash effects of SEK -11.7 million as a result of increased objectives and forecasts in acquired subsidiaries, which led to an increase in provisions for additional purchase consideration.

▪ The Group's operating profit (EBIT) amounted to SEK -20.1 (20.7) million. EBIT was negatively affected by non-cash non-cash effects of SEK -11.7 million in accordance with the above.

▪ Profit for the period after tax amounted to SEK -50 (-42.5) million. The result was affected by unrealized exchange rate differences in the Chinese operations of SEK 40.1 (-5.3) million and by non-cash effects affecting cash flow of SEK -11.7 million in accordance with the above.

SIGNIFICANT EVENTS DURING THE SECOND QUARTER

Sweden
▪ Soltech Energy Sweden AB (publ) acquired 100% of the shares in Rams El AB with access on May 3, 2021.

▪ Soltech Energy Sweden AB (publ) acquired 100% of the shares in Takbyrån i Alingsås AB (Takbyrån) with access on 1 June 2021.

▪ Soltech and Skanska Kommersiell Utveckling Norden have entered into a declaration of collaboration on innovations for building-integrated solar energy solutions.

China

▪ During the quarter, Soltech's subsidiary in China, ASRE, signed eight contracts amounting to a total installed capacity of 11 MW and is expected to generate annual revenues of SEK 7.9 million, or approximately SEK 158 million during the agreements' 20-year maturities.

▪ During the quarter, Soltech's subsidiaries in China connected a total of 10 (1) MW of roof-based solar energy plants and had 192 (140) MW of installed and revenue-generating capacity at the end of the period.

▪ At the end of the period, the company had 37 (46) MW in subscribed orders, as well as projects under processing of 123 (123) MW.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

▪ The Board of Directors of Soltech Energy AB (publ) has, with the support of the authorization of the Annual General Meeting, decided to carry out a new share issue of approximately SEK 247 million with preferential rights for existing shareholders (the “Rights Issue”) and an Over-allotment issue of approximately SEK 150 million before deduction of issue costs.

▪ Soltech's subsidiary Advanced Soltech Sweden AB raises SEK 46.6 million before issue costs in new issues of preference shares.

▪ Soltech's subsidiary in China, ASRE, has signed four contracts amounting to a total installed capacity of 6.7 MW and is expected to generate annual revenues of SEK 5.2 million or approximately SEK 104.6 million during the agreements' 20-year maturities.

▪ On 9 August 2021, the UN Climate Panel IPCC published its climate report, which clearly demonstrates the importance of taking the green transition seriously.

Read the report on Soltechs site: https://soltechenergy.com/en/investors/financial-reports-calendar/

The terms of the Rights Issue mean that six (6) existing shares give the right to subscribe for one (1) new share at a subscription price of SEK 20 per share, which corresponds to a discount of approximately 26.7% percent compared with the volume-weighted average price during the 20 trading days between 14/7 and 10/8 2021. The number of shares issued at full subscription is 12,361,207.

In the event of great interest in the Rights Issue, the Board has a mandate to decide on another new issue (“Over-allotment issue) of a maximum of 7,500,000 shares with deviation from the shareholders’ preferential rights. The price for acquiring shares in the Over-allotment Issue is SEK 20 per share and the gross proceeds from this are estimated at full subscription to amount to approximately SEK 150 million before deductions for issue costs.

The over-allotment issue enables allotment to those stakeholders who may not receive an allotment in the Rights Issue and at the same time enables an increase in the Company’s shareholder base through allotment to new stakeholders. However, the Board’s intention is to allocate both issues to existing shareholders if there is great interest.

The Board’s decision on the Rights Issue and, where applicable, the Over – allotment Issue is made with the support of the issue authorization submitted at the Annual General Meeting on May 26, 2021.

Background and motifs

The motive for the rights issue is to create additional financial conditions for implementing the Board’s expansion plans and to be able to make further company acquisitions and investments in existing operations. The Company’s strategy includes, if necessary, providing the acquired companies with working capital to enable the companies to grow organically successfully and by supporting the organization and the subsidiaries with key initiatives such as marketing, technical development, financing, special initiatives and to enable increased customer and inventory financing.

The motives are in line with the Board’s goal that Soltech will become a leading player in Swedish and European solar energy and the obvious choice for private, commercial and public customers in the choice of solar energy supplier.

The solar energy market in Sweden and in other countries is in a strong development phase. The effects of the pandemic, the climate policy strategy Green New Deal (E.U European Green Deal) and not least the IPCC’s climate report will lead to increased interest and investment in green technology. Many companies have been formed to take part in the growing market and the board of Soltech has made the assessment that this opens up for a consolidation of the market where a player with the right strategy and sufficient financial resources has the opportunity to become a market leader through acquisitions of smaller units and thus create a larger and more profitable group. This is the basis for the strategy that the Company has applied since 2019.

The strategy has meant a strong expansion for the business. Total revenues during 2020 amounted to SEK 500 million, compared with SEK 303 million in 2019 and SEK 53 million in 2018. In the financial year 2021, the company aims to reach SEK 1,000 million. In 2021, another five companies were acquired, of which two companies in electricity, Provektor Sverige AB and Rams El AB. The purpose of acquiring electrical engineering companies is to strengthen the competence and secure the deliveries of electrical installations, which is often a central but cramped sector when installing solar cells. The acquisitions also strengthen the customer base as the companies have had established customer contacts for a long time that demand solar energy.

Of the issue proceeds, which at full subscription will amount to approximately SEK 247 million, before issue costs, are reserved in order of priority:

• 65% Company acquisitions
• 25% Investments in subsidiaries
• 10% Investments in the parent company’s operating activities

Upon full subscription also of the Over-allotment Issue, the opportunities for new company acquisitions will be increased, as the Company will receive an additional SEK 150 million before issue costs, which are estimated to amount to approximately SEK 4 million.

The rights issue in summary

The right to subscribe for new shares shall accrue to the Company’s shareholders with preferential rights. Each share held as of the record date on August 20 gives one (1) subscription right (TR). It takes six (6) TRs to subscribe for one (1) new share at a subscription price of SEK 20. Subscription of shares takes place during the period 24/8 – 7/9 2021. Upon full subscription of the Rights Issue, the Company will receive approximately SEK 247 million before issue costs, which are estimated to amount to approximately SEK 4 million.

The last day for trading in the Company’s shares, including the right to receive subscription rights in the Rights Issue, is August 18, 2021. Subscription of shares with the support of subscription rights shall take place through cash payment during the period 24/8 – 7/9 2021.

Subscription of shares without subscription rights shall be made on a special subscription list
during the period 24/8 – 7/9 2021. Payment for shares subscribed for without the support of subscription rights shall be made no later than three banking days after the issuance of the settlement note showing the allotment. The Board has the right to extend the subscription period and the last day for payment.

In the event of a major interest in the Rights Issue, the Board has a mandate to decide on an additional new issue (“Over-allotment Issue”) of a maximum of 7,500,000 shares with deviation from the shareholders’ preferential rights. The price for acquiring shares in
The over-allotment issue is SEK 20 per share and the gross payment from this is estimated at full subscription to amount to approximately SEK 150 million before deductions for
issue costs. The purpose of the Over-allotment Issue is to create the conditions for an even faster expansion through further acquisitions. The over-allotment issue is conditional on the Rights Issue being oversubscribed.

The rights issue amounts to a maximum of 12,361,207 shares. This means that the share capital increases by a maximum of SEK 618,060.35 to a maximum of SEK 4,326,42.50. The shares issued in connection with the Offer correspond to approximately 14% percent of the share capital in the Company after the completion of the new share issue (provided that the subscription is fully subscribed). Shareholders who choose not to participate in the Rights Issue will, when fully subscribed, be diluted by approximately 14 percent. Upon full utilization of the Over-allotment Issue, the share capital will increase by a maximum of SEK 375,000 to a maximum of SEK 4,701,42.50.

The over-allotment issue corresponds to a maximum of approximately 8 percent of the Company’s total share capital. In the event that both the Rights Issue and the Over-allotment Issue are utilized, the share capital will increase by SEK 993,060.35 to a maximum of SEK 4,701,422.50. The dilution will amount to a maximum of approximately 21 percent calculated as the number of new shares after the new share issue divided by the total number of shares after the new share issue.

The rights issue and the Over-allotment issue are not secured by issue guarantees or subscription commitments.

Shareholders who choose not to participate in the Rights Issue have the opportunity to compensate for the financial dilution effect by selling their subscription rights. Trading in subscription rights takes place during the period 24 August to 2 September 2021.

Prospectus

The complete terms and conditions for the Rights Issue, as well as information about the Company in a prospectus approved by The Swedish Financial Advisory Authority, will be published on the Company’s website on 13 August 2021.

Schedule for Rights Issue and possible Over-allotment Issue

Last day for trading incl. right to participate 18/8 2021
Record date 20/8 2021
Subscription period 24/8 – 7/9 2021
Trading in subscription rights 24/8 – 2/9 2021
Board decision on allocation and possible Over-allotment Issue 9/9 2021
Press release on issue outcome 9/9 2021
Notice of allocation and dispatch of settlement notes 10/9 2021
Settlement date for settlement notes 15/9 2021

Issuing institute

For further questions regarding subscription, contact your personal bank adviser, your nominee or Soltech’s issuing institution Aktieinvest FK AB on 08 506 517 95 or emittentservice@aktieinvest.se

NOT FOR PUBLICATION, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES, AUSTRALIA, JAPAN OR CANADA OR IN ANY OTHER JURISDICTION THAT DISTRIBUTES DISTRIBUTION.

Despite the Corona pandemic affecting society to a greater extent in the first quarter of this year compared with 2020, Soltech succeeds in delivering very strong growth. The Group’s revenues increase by as much as 175% to SEK 145.2 million and the Swedish operations increase by as much as 212% to SEK 118.1 million.

CEO comment:
– Our focus is growth and I am very pleased with our performance during the first quarter, which in terms of revenue is the toughest quarter of the year in our industries.

First quarter in brief
• The Group’s revenues in the quarter amounted to SEK 145.2 (52.8) million. An increase of 175%
• Revenues in the Swedish operations grew to SEK 118.1 (37.8) million, an increase of 212%
• Revenues in the Chinese operations grew to SEK 27.11 (15) million, an increase of 81%

• The Group’s profit before depreciation (EBITDA) amounted to SEK -8.3 (-1.3) million. EBITDA was negatively affected by non-cash affecting effects of SEK -11.7 million as a result of increased targets and forecasts, which led to an increase in provisions for additional earn out costs

• The Group’s operating profit (EBIT) amounted to SEK -28.4 (-14.7) million. EBIT has been negatively affected by non-cash affecting effects of SEK -11.7 million as above

• Profit after tax for the period amounted to SEK -18.2, (-5.5) million. The result was affected by unrealized exchange rate differences in the Chinese operations by SEK 40.1 (34.8) million and by non-cash affecting effects of SEK -11.7 million as above

• Cash flow for the period from operating activities amounted to -4.7 (-17.3)
• The period’s cash flow for the Group amounted to SEK -101.7 (-61.4) million
• Earnings per share amounted to -0.33 (-0.05)
• Covid-19 affected the Swedish operations in the first quarter, mainly in the form of postponed projects. However, order intake remains good

Significant events during the first quarter

Sweden
• Soltech acquired 76% of the shares in Annelunds Tak AB and 52% of the shares in Ljungs Sedum Entreprenad AB
• Soltech acquired the remaining 40% of the shares in the subsidiaries Swede Energy and Merasol to create the best conditions to become an even larger player in the solar energy market. Soltech now owns 100% of both companies, which strengthens the offer in the corporate and real estate market in solar energy
• Soltech acquired 100% of the electrical engineering company Provektor Sweden and its subsidiaries
• Six of Soltech's subsidiaries have together received the order to build the Nordic region's largest solar façade project with an order value of SEK 12 million
• New solar collaboration has begun between Soltech's subsidiaries Soldags and LRF, which will make it easier for more farmers to become micro-producers of solar energy.
• Soltech's Chairman of the Board Anna Kinberg Batra was elected new Chairman of the Board of Swedish Solar Energy
• Soltech sponsors the Architecture Gala

China
• Soltech's subsidiary in China, ASRE, signed seven orders during the quarter, which in total are expected to generate annual revenues of SEK 11.1 million, or approximately SEK 221.6 million during the agreements' 20-year maturities
• The Soltech Group is awarded a prize in China as “The most influential solar investment company 2020”
• During the quarter, Soltech's subsidiaries in China connected a total of 5.8 MW of roof-based solar power plants and had a total of 182.4 MW in producing plants at the end of the quarter.

Significant events after the reporting period
• Soltech acquired 100% of the shares in Rams El.
• Soltech's subsidiaries Swede Energy and Castellum win the Solar Energy Award 2021 in the category “Plant of the Year”. The winning facility is Hisingen Logistics Park with a roof-mounted solar cell facility of 30,000 m2
• Soltech's subsidiary Swede Energy is building a 3,000 m2 solar cell plant at the e-retailer Matsmart's central warehouse in Örebro
• Soltech's subsidiary in China, ASRE, has signed three orders that are estimated to generate annual revenues of SEK 1.2 million, or approximately SEK 31.4 million during the agreements' 20-year maturities

Provektor is Soltech's first acquisition in the electrical engineering industry and the company will have a central role in Soltech's offensive growth strategy with acquisitions in the solar, roofing, facade and electrical engineering industries. These various companies' cutting-edge expertise and given role in solar energy build a strong group for the benefit of customers and shareholders.

The acquisition of Provektor in financial terms:
• The acquisition payment for 100% of the shares amounts to SEK 53 million
• The acquisition is paid for with an initial cash portion of SEK 20 million and with newly issued Soltech shares to a value of SEK 25 million
• After 12, 24 and 36 months, a total of approximately SEK 6.7 million / year can be paid out in a variable additional purchase consideration if the set sales and profitability targets are achieved. Which would give a total acquisition payment of SEK 65.1 million
• The acquisition of Provektor is financed entirely from its own cash and with newly issued Soltech shares
• The acquisition also includes the wholly owned company Afsens Fastighetsbolag AB, which includes three properties. Provector's operations in Skara, Lidköping and Töreboda are conducted in these properties. The book residual value amounts to SEK 22.2 million and the properties are mortgaged to SEK 14.4 million
• Soltech and Provektor's assessment is that the acquisition will contribute approximately SEK 133 million in sales during the financial year 2021 (ten months) and with a positive operating profit of approximately 6% of sales. During the years 21-22-23, Provektor is estimated to contribute with more than SEK 500 million in sales and with an operating profit of 7-8%
• Provektor will add solar energy to its product range and be a competence partner in electricity, charging and storage for its sister companies
• Synergy effects in purchasing, marketing, HR, finance and administration will have a positive effect on sales and earnings throughout the Group through this acquisition

Soltech's CEO Stefan Ölander comments:
– Provektor adds expertise and business opportunities to Soltech that we have to some extent lacked. I see this acquisition as a milestone and am happy and proud that Provektor's owners chose to sell to us. Their corporate culture is characterized by competence and entrepreneurship, which is a perfect match with Soltech.

Provector's CEO Kenneth Johansson comments:
– Soltech feels like a perfect owner because most customers nowadays demand solar energy. In order for Provektor to continue to be the leading player in our region, we must add solar energy to our offering and now it will be much easier as we are part of Soltech.

Continued strong growth in 2020

Fourth quarter in brief
• The Group's revenues in the quarter amounted to SEK 159.3 (67.5) million. An increase of 136%
• Revenues in the Swedish operations grew to SEK 118.1 (56.4) million, an increase of 110%
• The Group's profit before depreciation (EBITDA) amounted to SEK 14.5 (-3.2) million.
• The Group's operating profit (EBIT) amounted to SEK -1.3 (-13.4) million. An improvement of 90%
• Profit for the period after tax amounted to SEK -80.6 (-39.6) million. The result was affected by unrealized exchange rate differences in the Chinese operations by SEK -29.2 (-8.2) million. This does not affect cash flow
• Cash flow for the period from operating activities amounted to -30.6 (67.9)
• The period's cash flow for the Group amounted to SEK 27.2 (-1.7) million. The cash flow for the period was, among other things, positively affected by the completed new share issue
• Earnings per share amounted to SEK -0.67 (-0.71)
• No dividend is proposed
• Covid-19 had a major impact on the Swedish operations in the fourth quarter, mainly in the form of postponed projects. However, order intake remains good
• Revenues from operations in China were negatively affected in the quarter by approximately SEK 1 million as a result of the temporary price reduction for electricity introduced by the state NDRC in order to stimulate the Chinese economy after the pandemic
• During the quarter, 33.3 MW was connected and a total of 176.6 (139) MW of installed capacity (solar power plants) at the end of 2020

January – December in summary
• Total operating income amounted to SEK 500 M (303.6). An increase of 65%
• The Group's operating profit before depreciation (EBITDA) amounted to SEK 101.8 (65.4) million. An increase of 56%
• The Group's operating profit (EBIT) amounted to SEK 42.7 (24.8) million. An increase of 72%
• Profit for the year after financial items, currency effects and tax amounted to SEK -141.2 (-45.8) million. Currency effects of unrealized exchange rate differences in the Chinese operations have affected earnings by SEK -42.8 (1.8) million
• Covid-19 affected the Swedish operations during the year and mainly in the form of deferred projects driven by deferred customer meetings, orders and the fact that it took longer for customers to be able to make decisions with an estimated negative effect of approximately 15% on sales
• Covid-19 is estimated to have had a negative impact on revenues in the Chinese operations of approximately SEK 13.5 million. This is partly due to a general price reduction and that approximately 30 MW were shut down during the first and second quarters and that lower activity among customers resulted in lower electricity consumption, which led to a larger share of electricity being sold to the grid where ASAB is paid less. Furthermore, covid-19 has led to poorer conditions in the capital markets, which through poorer borrowing conditions caused higher costs than planned

Significant events during the fourth quarter
Sweden

• Soltech’s subsidiary Soltech Sales & Support AB has received an order to deliver semi-transparent solar cells in four different colors to the parking garage “Mölnlycke fabriker” with end customer Wallenstam. Order value approximately SEK 7 million
• Soltech’s subsidiary Fasadsystem will contribute to the construction of a new Biltema facility in Partille, as well as the expansion of Mio furniture department store in Frölunda with a total order value of SEK 7.5 million.
• Soltech’s subsidiary NP Gruppen delivered a new waterproofing roof including solar energy and charging posts. The project is carried out together with the sister company Measol. The order value was approximately SEK 4.5 million.
• Soltech’s subsidiary Merasol begins energy conversion projects together with Nexion Enertech for HSB and BRF Solängen in Alingsås. Merasol will deliver a solar system and roof with a total order value of approximately SEK 4 million.
• Soltech’s subsidiary Swede Energy received approximately SEK 10 million of solar energy deal from MatHem / Logistic Contractor with construction starting in 2021
• Soltech’s subsidiary Takorama has signed an agreement with Tuve Bygg AB regarding the rebuilding of the roof of the operating room at Norra Älvsborgs Sjukhus (NÄL) in Trollhättan. The order value is approximately SEK 11.8 million with project start in 2021
• Investment by the Swedish state in renewable energy, which includes tax reductions for the installation of solar cells and storage for private individuals as well as an increased power limit for energy tax to 500 kW for self-used electricity

China
• During the quarter, Soltech’s subsidiary in China, ASRE, signed nine orders that are expected to generate a total annual revenue of SEK 13.3 million, or approximately SEK 265.5 million during the agreements’ 20-year maturities
• ASRE awarded prize in China as “Top 10 Industrial and Commercial Distributed Solar Power Station Builders in 2020”
• Soltech’s subsidiary ASAB issued additional preference shares corresponding to SEK 26.1 million during the quarter
Significant events after the reporting period
• Soltech acquired 76% of the shares in Annelunds Tak AB and 52% of the shares in Ljungs Sedum Entreprenad AB. The companies have a total of 18 employees and are expected to contribute SEK 60 million in sales and SEK 6 million in operating profit in the coming years.
• Soltech acquired the remaining 40% of the shares in the subsidiaries Swede Energy and MeraSol to create the best conditions to become an even larger player in the solar energy market. Soltech now owns 100% of both companies, which strengthens the offer in the corporate and real estate market in solar energy.
• Soltech’s subsidiary in China, ASRE, has signed orders that are estimated to generate annual revenues of just over SEK 10.2 million, or approximately SEK 203 million during the agreements’ 20-year maturities
• The effects of Covid-19 are difficult to assess and we are following developments closely

The CEO has the floor

Continued strong growth in a growing market
We are proud of our strong growth despite the difficult conditions caused by the Corona pandemic in 2020. We deliver 65 percent growth at Group level and 74 percent growth in the Swedish operations. Thus, we continue our journey towards 4.7 billion in turnover in 2024, which was communicated in November 2019.
Unfortunately, the Group's earnings on the bottom line for 2020 are strongly affected by, above all, unrealized currency losses and high interest costs in our Chinese operations. The management of Advanced Soltech is working hard to reduce these effects in the future and the project to list the company separately continues together with Carnegie and DnB. It is worth pointing out that we see good opportunities for continued strong growth in the Chinese operations, even after the completion of the special listing.

Continued strong interest from the market
We are very proud of the great interest we encounter from the stock market. We now have about 60,000 owners, which is more than most companies on the stock exchange's A-list. I would like to take this opportunity to once again thank all the shareholders who in the autumn participated in our successful rights issue when we raised SEK 144 million. At that time we were about 30,000 owners, so now we have been joined by as many more.

Growth continues in an expansive phase
The solar energy market with everything around in the form of storage, charging and control is growing explosively in Sweden and throughout the world. Today, about 1% of Swedish electricity comes from solar energy, which means that Sweden is far behind other comparable countries. But more and more private and commercial property owners are realizing that solar energy benefits both the climate and the economy, as evidenced by demand.

With a new green deduction for private individuals and an increase in the power limit for large roof installations, both of which will be introduced in 2021, the opportunities for continued Swedish market growth are very good. There, Soltech is well equipped to be one of the strongest players for both large property owners and the private homeowner.
Our organic growth in our subsidiaries will be good and if we add the business opportunities our acquisition strategy provides, the billion SEK barrier should be within reach. We are a growth company with ambitious goals. In 2018, we had sales of approximately SEK 50 million, two years later we have increased tenfold to approximately SEK 500 million and in November 2019 we communicated a goal to turn over SEK 4.7 billion in 2024, this goal remains.

Corona pandemic's impact on Soltech
The corona pandemic has affected the whole world, including Soltech. During the fourth quarter, we experienced greater problems with the Corona pandemic than during the first nine months. It is mainly in sales where both the opportunity to conduct physical meetings and travel is limited even more. We also experience longer decision-making processes with customers. In total, within the entire Group, we estimate that the Corona pandemic affected sales negatively by approximately 15 percent. Despite this, we reach our goal of approximately SEK 500 million in sales.

The acquisition strategy resulted in eight new subsidiaries
In just two years, Soltech has become an efficient acquisition company at the same time as dynamic development takes place in the existing companies. During the latter part of 2020 and the beginning of 2021, we see a clearly increasing trend in terms of incoming inquiries if we are interested in acquiring companies. We have succeeded in establishing ourselves as a serious, entrepreneur-friendly and decision-making buyer and this attracts direct contacts with companies, but many company brokers also come to us with their assignments. We meet companies every week and constantly have a number of negotiations underway. We look forward to more companies in the Soltech family.

Advanced Sotech, our business in China
We are proud that under very difficult conditions we managed to increase our installed base from 139 megawatts to 176.6 megawatts during the past year. Demand for our offer is high and confidence in the future is strong. However, the result on the last line is strongly affected by, above all, unrealized currency losses, high interest costs and depreciation in our Chinese operations. The management of Advanced Soltech is working hard to reduce these effects in the future and the project to list the company separately continues together with Carnegie and DnB. All shareholders will receive information about the special listing by letter when the schedule is ready.

The green recovery
The corona pandemic has fundamentally changed the world. The years 2020 and 2021 will go down in history as very difficult years, both in terms of human and financial suffering. But it also forces politicians to make strong decisions about how to stimulate the economy. For all companies in solar energy and cleantech, these are positive times when these stimuli give us great opportunities to increase our business. Now the world has a chance to invest in long-term sustainable climate-smart alternatives and we are ready to take our responsibility by growing strongly. The better it goes for Soltech, the more benefit we make in the green transition.

Our journey has just begun
We are now primarily investing in developing our thirteen subsidiaries and getting the greatest possible synergy effects. We are already seeing positive signals, not least in purchasing, sales and recruitment. Our second focus is to continuously acquire more companies in the solar energy, roofing, facade and electricity industries. After two years and thirteen acquisitions, we have created a good process and we see great opportunities in the market that we will take advantage of.

I look forward to an exciting 2021 and to leading the company into the future with the board and our competent employees. You are warmly welcome to continue with us on the journey.

Sincerely,
Stefan Ölander, CEO