Fourth quarter in brief
▪ The Group's revenues in the fourth quarter amounted to SEK 565.8 (163.3) million. An increase of 247%. Of the revenues, SEK 288 million is dependent on the special listing of Advanced Soltech Sweden AB (“ASAB”) as a revaluation result. This did not affect the cash flow. Excluding this effect, total revenue from operations amounted to 277.8.
▪ Revenues in the Swedish operations increased to MSEK 266.6 (56.4), an increase of 373%.
▪ Revenues in the Chinese operations amounted to MSEK 11.2. The operations of Advanced Soltech Sweden AB (“ASAB”) are only consolidated until October 29, 2021, for the remainder of the quarter ASAB is reported according to the equity method. The result for the period October 30 – December 31 amounted to MSEK 1.8 and is reported under the heading, profit from participations in associated companies.
▪ The Group's profit before depreciation (EBITDA) amounted to MSEK 267.3 (14.6). The increase was a result of the special listing of ASAB.
▪ The Group's operating profit (EBIT) developed positively to MSEK 166.3 (-1.2). EBIT has been affected by the special listing of Advanced Soltech, where a non-cash flow-affecting revaluation result of MSEK 288 arose. EBIT is also affected by increased amortization and write-downs of goodwill as a direct result of completed acquisitions and completed restructuring and revaluations of goodwill.
▪ Profit for the period after tax amounted to MSEK 138.2 (-80.4). The result in the fourth quarter was negatively affected by unrealized, non-cash flow-affecting exchange rate differences in the Chinese operations by MSEK -7.7 (-29.2).
▪ Cash flow for the period from operating activities amounted to -31 (-30.5).
▪ The period's cash flow for the Group amounted to MSEK -157.2 (27.2). The cash flow for the period was affected by, among other things, acquisitions of subsidiaries, investments in fixed assets and the special listing of Advanced Soltech.
▪ Earnings per share amounted to SEK 1.55 (-0.71).
▪ No dividend is proposed.
January – December in brief
▪ The Group's revenues for the year amounted to MSEK 1,239.8 (499.4). An increase of 148%. Of the revenues, SEK 288 million is due to the special listing of Advanced Soltech Sweden AB (“ASAB”) as a revaluation result that did not affect cash flow arose on the sale. Excluding this effect, total revenue from operations amounted to 951.8. The Group's organic growth amounted to 29%.
▪ Revenues in the Swedish operations increased to SEK 820.9 (353) million, an increase of 133% compared with the previous year.
▪ Revenues from Advanced Soltech Sweden AB (“ASAB”) amounted to MSEK 130.9 (146.1) and have been consolidated up to and including the special listing on October 29, 2021. After the special listing, for the period October 30 – December 31, ASAB is reported according to the equity method.
▪ The Group's profit before depreciation (EBITDA) amounted to MSEK 317.6 (101.9). An increase of 212%. The increase was a result of the special listing of ASAB.
▪ The Group's operating profit (EBIT) amounted to MSEK 150.7 (42.8). An increase of 252%. EBIT has been affected by the special listing of Advanced Soltech, where a non-cash flow-affecting revaluation result of MSEK 288 has arisen. EBIT is also affected by increased amortization and write-downs of goodwill as a direct result of completed acquisitions and through restructuring and revaluations of goodwill.
▪ Profit for the year after financial posts, currency effects and tax amounted to MSEK 77.6 (-141) . Currency effects of unrealized exchange rate differences in the Chinese operations have affected earnings by MSEK 51 (-42.8).
▪ The year's cash flow from operating activities amounted to -103.7 (-8.7).
▪ The year's cash flow for the Group amounted to MSEK 115.2 (120.6). This year's cash flow has been affected by new issues, acquisitions of subsidiaries, investments in fixed assets and the special listing of Advanced Soltech.
▪ During the year, Covid-19 has affected the Swedish operations through increased transport costs and price increases for, among other things, solar panels. Increased sick leave has led to some delays in the completion of projects.
Significant events during the fourth quarter
▪ Soltech Energy Sweden AB's subsidiary Advanced Soltech Sweden AB (ASAB) was listed on the Nasdaq First North Growth Market on 29 October. In connection with the special listing, a revaluation result arose in the Group. The revaluation result amounted to MSEK 288 based on consolidated values at the time of divestment of the shares in ASAB.
The revaluation result does not affect cash flow and is reported under other income and is specified in Note 1. After the special listing, Soltech's holding amounts to 29.35%, which means that Soltech Energy Sweden AB (publ) no longer has the controlling influence. ASAB is therefore not reported as a subsidiary but as an associated company according to the equity method.
▪ Soltech Energy Sweden AB's subsidiaries Swede Energy and Merasol were merged during the fourth quarter and Soltech Sales & Support was partially integrated, the new company is called Soltech Energy Solutions 1988 AB.
▪ Soltech Energy Sweden AB (publ) acquired 100 percent of the shares in the Neabgruppen with access on October 1, 2021.
▪ Soltech Energy Sweden AB (publ) acquired 100 percent of the shares in ESSA Glas & Aluminium AB (ESSA) with access on December 30, 2021.
▪ Soltech Energy Sweden AB (publ) acquired 70 percent of the shares in Falu Plåtslageri AB (Falu Plåtslageri) and Tak & Bygg in Falun AB (Takab) with access on January 5, 2022.
▪ Soltech Energy Sweden AB (publ) acquired the remaining 40 percent of the shares in the subsidiary Miljö & Energi Ansvar Sverige AB (Measol) with access on December 31, 2021.
▪ The Nomination Committee prior to the Annual General Meeting on 12 May 2022 in Soltech Energy Sweden AB (publ) has been appointed.
Significant events after the reporting period
▪ Soltech's subsidiary ESSA Glas & Aluminium AB has won a tender for the execution of a façade contract with construction starting in the summer of 2022. The assignment is performed for the Stockholm Region, through Locum AB, and has an order value of MSEK 92.
▪ Soltech Energy's subsidiary Soltech Energy Solutions and Falkenklev Logistik are deepening their collaboration. In addition to the 1.5-hectare solar park Soltech will build, both companies, together with Scania, will also build Sweden's largest charging and battery park for trucks. The project is part-financed by the Swedish Environmental Protection Agency. Soltech's order value for the battery park amounts to MSEK 20.
▪ Soltech Energy's subsidiary, Soltech Energy Solutions, will build Sweden's largest solar park connected to only one industry for Åbro Bryggeri in Vimmerby. The solar park will cover an area of 10 hectares and will contribute to Åbro Bryggeri becoming completely self-sufficient in solar. The park is planned to be commissioned during the latter part of 2022.
CEO letter
Another year of strong growth
When we now summarize 2021, it is our third year in a row with strong growth after we began our acquisition strategy in 2019. We reach MSEK 951.8 from operations and deliver 91% growth at Group level, excluding revaluation effects from the special listing of Advanced Soltech of SEK 288 million. The Group's operating profit (EBIT) amounted to MSEK 150.7 (42.8), an increase of 252%.
Right now, we are experiencing very uncertain times globally with concerns about higher interest rates, inflation and even a war in the Ukraine. The severe and uncertain global situation affects us all, including our business. At the same time, it recalls the importance of reducing dependence on fossil energy sources and investing in long-term sustainable energy supplies such as solar energy. There, Soltech is ready to be a strong partner in the green energy transition.
Organic growth of 29%
Soltech is an acquisition-intensive company that delivers strong growth through this strategy. I am also very proud that in 2021 we had an organic growth of as much as 29% in the Group. It proves that we can not only acquire, but also help our existing companies to develop and grow.
The acquisition strategy resulted in ten new companies
Despite a tough year in the shadow of the corona pandemic, with a series of meeting restrictions, we managed to acquire as many as ten companies. We have for some time been looking for good companies in electrical engineering because that competence is crucial when it comes to solar energy. In 2021, we are therefore pleased to have acquired Provektor, Rams El and Neabgruppen.
Companies in four different industries create benefits
The basis for the construction of our group is solar energy companies. But right from the start, we realized the benefits of also owning companies in the roofing / sheet metal, facade and electrical engineering industries. These companies have the crucial expertise needed for a high-quality solar energy installation, and they have a wide range of customers who are happy to buy solar energy from them. In other words, we acquire both expertise and business opportunities and transform these companies into future companies.
The Corona pandemic's impact on Soltech
Unfortunately, the year 2021 was a difficult year in terms of human and business suffering throughout the world. Soltech has suffered from delivery difficulties, higher prices and not least increased sick leave, something that also followed a bit into 2022. Despite these obstacles, our employees have struggled and delivered a really strong year.
Advanced Soltech was listed separately
Soltech's subsidiary Advanced Soltech Sweden AB (ASAB), which conducts our operations in China, was listed on Nasdaq First North on 29 October. We are proud that ASAB now stands on its own two feet with a better opportunity to refinance its loans. Soltech now owns 29.35% of ASAB and in connection with the listing, a profit of MSEK 288 arose in the Group. We maintain an active ownership influence by continuing to remain on the board and I am positive about the company's development and future.
Soltech is strong
I would like to end by saying that Soltech is stronger than ever, and we look forward to continuing to deliver on our strategy and by building long-term values for our owners and at the same time contributing to a green energy transition.
Stefan Ölander
CEO
Continued strong growth in 2020
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
Soltech delivers a sales increase of 69 percent and an increase in operating profit (EBIT) of 210 percent compared with the second quarter of 2019. We expect that our expansion journey will continue, and that this year's sales will exceed last year's by a good margin.
CEO comment:
– The world has experienced a dizzying quarter and I am proud that our subsidiaries deliver such strong growth. Soltech is in an expansive phase and I look forward to building on our group and delivering value to our owners.
Second quarter in brief
▪ The Group's revenues in the quarter amounted to SEK 156.1 (92.3) million. An increase of 69%
▪ Revenues in the Swedish operations grew to SEK 109.1 (63.8) million, an increase of 71%
▪ The Group's profit before depreciation (EBITDA) amounted to SEK 49.7 (18.4) million.
An increase of 170%
▪ The Group's operating profit (EBIT) amounted to SEK 35.6 (11.5) million. An increase of 210%
▪ Profit for the period after tax amounted to SEK -37 (-3) million. The result was affected by
unrealized exchange rate differences in the Chinese operations by SEK -38.5 (-0.0) million
▪ The period's cash flow for the Group amounted to SEK 69.4 (-13.6) million
▪ Earnings per share amounted to -0.65 (-0.17)
▪ Covid-19 is not expected to have a significant impact on Swedish operations in the second
quarter. The main impact in the Swedish operations is that projects are pushed forward and
that it takes longer to reach a decision. Despite this, Soltech had a very good order intake
during the quarter, which contributes to the increased sales compared with the corresponding
period last year.
▪ Operations in China returned to a normal level during the quarter, where all installed capacity
of 143 MW now generates revenue as expected. However, revenues were negatively affected
in the period by approximately SEK 5 million due to temporary price reductions on electricity in
combination with a small part of the production facilities being closed until the end of May.
This is a direct result of Covid-19.
First half year in summary
▪ Total operating income amounted to SEK 209 M (148.7). One increase by 40%
▪ The Group's operating profit before depreciation (EBITDA) amounted to SEK 48.4 (38.2)
million. An increase of 26%
▪ The Group's operating profit (EBIT) amounted to SEK 20.8 (22.3) million. A reduction of 6%
▪ Profit for the period after financial items, currency effects and tax amounted to SEK -42.5
(-12.6) million
Significant events during the period
▪ On May 4, Soltech took over as owner of 70% of Fasadsystem in Stenkullen AB
▪ Soltech becomes the official sponsor of the Swedish investment in Expo 2020 in Dubai
▪ Over SEK 80 million in order value at Soltech's subsidiaries in April-May despite Covid-19
pandemic
▪ Soltech's subsidiary Advanced Soltech Sweden AB (publ) directed offer of up to SEK 100
million under the existing bond framework oversubscribed
▪ Soltech's subsidiary Advanced Soltech signs a cooperation agreement that, when fully
developed, provides just over SEK 31 million per year and takes orders of SEK 30.4 million
▪ Soltech Energy Sweden AB (publ) option program (2015/2020), which was established in 2015
before listing of the Company's shares on Nasdaq First North, has to the extent allotted and
subscribed, been redeemed by the holders
▪ Anna Kinberg Batra was elected by the Annual General Meeting as the new
Chairman of the Board
▪ Max Metelius is appointed CEO and Frederic Telander Chairman of Advanced Soltech
as of June 24
Significant events after the reporting period
▪ Advanced Soltechs ASRE receives two new orders that provide a total of approximately
SEK 130 million during the contract period
▪ Soltech Energy Sweden AB (publ) announces rights issue of SEK 98 million with possible
overallotment issue of a maximum of 46 to finance continued expansion through acquisitions
and to develop existing subsidiaries
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00.
Email: stefan.olander@soltechenergy.com.
The information in this press release is such that Soltech Energy Sweden AB (publ) must publish in accordance with EU regulation no. 596/2014 on market abuse. The information was submitted through the above contact person for publication on 21 August 2020 at 13.00 CET.
About Soltech Energy Sweden AB (publ)
Soltech is a complete supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol, Soldags, Takorama and Fasadsystem. Soltech Energy Sweden AB (publ), is traded on the Nasdaq First North Growth Market under the short name SOLT and has approximately 34,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com
January – december 2019
• Consolidated revenues amounted to MSEK 324 (53.7), an increase of 503%.
• The Swedish part of the business increased to SEK 201.4 (11.3) million, an increase of 1,682%.
• Chinese part1 increased sales to SEK 122.6 (48.8) million, an increase of 151%.
• Consolidated operating profit (EBIT) amounted to SEK 49.1 (5.2) million.
• Consolidated earnings before depreciation (EBITDA) amounted to SEK 88.25 (17.6) million.
• Consolidated profit after tax amounted to SEK -33.2 (-15.4) million. Adjusted for one-off and restructuring costs, the result was SEK -25.8 million.
• The Parent Company's net sales amounted to SEK 9.65 M (11.3). Including sales within the Group and other revenues, revenue amounted to SEK 17.2 M (14.3).
• Earnings per share amounted to SEK -0.61 (-0.4).
• Cash flow amounted to SEK 55.3 (1.6) million.
Fourth quarter 2019
• Net sales amounted to SEK 90.7 (18.2) million.
• Operating profit (EBIT) for the period amounted to SEK 10.9 (5.6) million.
• Cash flow for the period amounted to SEK 8.8 million.
After the end of the reporting period
• Acquisition of majority stake in Merasol AB. A B2B solar energy company based in Gothenburg.
• Acquisition of Soldags i Sverige AB. A sales company aimed at the private market.
• Acquisition of majority stake in Takorama AB. A roofing company with solar ambitions and based in Ljungskile.
• Castellum and HSB place orders worth a total of SEK 23.5 million to the subsidiaries Swede Energy and Merasol.
• Niclas Lundin is appointed new CFO and will take office on 25 March 2020.
• ASRE signs cooperation agreement with Rural Credit Cooperation in Hebi Province, which fully expanded during the contract period is expected to yield just over SEK 366 million during the contract period.
• ASRE signs agreements on two major transactions that are expected to yield SEK 77.4 million during the contract period.
• ASAB postpones planned bond issue with Nordea and DNB due to Covid19.
Read the full year-end report as an appendix or via link: https://soltechenergy.com/investerare/finansiella-rapporter-kalender/
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00. E-post: stefan.olander@soltechenergy.com.
Information in this press release is such that Soltech Energy Sweden AB (publ) will publish according to EU work no. 596/2014 on market abuse. The information was provided through the above contact person's insurance for publication on February 27, 2020 at. 11.00 CET..
Words from the CEO
Dear shareholders and investors!
We are a growing company with big goals
We are a pronounced growth company and compared to 2018 we deliver 503 percent growth at group level and 1 682 percent growth if we only look at the Swedish operations. But we still do not show profit on the last line. A big reason for this is that we have large one-off costs to build the right platform for our expansion. We must invest to build a base that will meet our lofty goals. Another strong contributing reason is that we have too high costs to raise capital for our operations in China and then high current interest costs. When we have clearly built our platform for the future and when we have succeeded in reducing funding costs, the result will be better. When we then add an increased business volume as well as increased synergy effects within the Group, we believe in a good result going forward.
Double share price and number of shareholders.
When we summarize 2019, it is without a doubt our most exciting year ever. It is gratifying to all shareholders that our share price more than doubled during the year. We are also really proud of the confidence all our new shareholders have given us. In 2019, the number of shareholders has increased from around 15,000 to about 32,000. For our owners, we have shown strong growth in our business in China during the year and not least a good result of our acquisition strategy in Sweden.
The solar energy market is unique
Few people are able to work in an industry that in Sweden is expected to double every year. Even in the global perspective, annual growth is good and amounts to about 20 percent. That we also work in the solar energy industry that does good for the world's climate is really what makes us fight further to achieve our goals. We at Soltech, just like our shareholders, want to get a good return on our investment and at the same time do good for the climate.
The solar energy market is in a build-up phase and with many companies selling standard panels, prices are being squeezed which reduces margins. In the standard panel segment, we are investing in volume to continue to be one of the largest on the market. As the crown of the work, we have our building-integrated ceilings and wall panels where we have a better margin. Here we work, among other things, with Vattenfall as a partner.
A combination of standards and our integrated panels will pave the way for good future profitability. In the fall of 2019, we announced our goal of reaching SEK 4.7 billion in sales within five years (2024). It is an aggressive target but fully achievable with our stated acquisition strategy, strong organic growth, our own building-integrated products and a rapidly growing market in Sweden and internationally.
Soltech has always been a company with many small shareholders and it is something we are proud of and cherish. At the same time, it would be a strength message to have a number of institutional investors in the ownership circle. Since the fall of 2019, we have noticed an increased interest from this group both at home, but also from international investors. In line with this, we will examine different sources of funding during the year to create the conditions to achieve our expansion goals.
The acquisition strategy resulted in five new subsidiaries
In late autumn 2018, we launched our acquisition strategy to create a stronger platform of business in Sweden. Both for our own aesthetic and building-integrated products, but also for taking part of the large market for standard surface-mounted solar cells. During quarter one, we acquired the majority of Nyedal Solar Energy, NP Group and Swede Energy. With the help of our successful rights issue in May / June 2019, we continued our work and in September we acquired the remaining 49 percent of Nyedal Solar Energy. Just before Christmas we acquired Soldags and Merasol, where we will take over as owner on January 2, 2020. We begin the 2020 acquisition by presenting on February 25, the acquisition of 70 percent of Takorama AB.
The transformation of traditional industries is changing society
We are driven by doing good business that contributes to a good environment. Being part of and transforming traditional industries is a new dimension that we started with during the year. It is a great satisfaction for us and for the employees of traditional roofing companies, facade companies, electricians and others. to develop their companies in a more environmentally oriented way. With Soltech's financial and knowledge-based support, these companies become sustainable future companies by adding solar energy solutions to their offering. With this strategy, we really change society. Takorama is the first example of this year.
Our business in China
Advanced Soltech, which issues green bonds in Sweden to finance the expansion of solar power plants in China, has grown from 91 megawatts (MW) to 139 MW per year-end 2019. Our new growth plan for a gigawatt (GW) fully connected to the grid in 2024 is firm.
This corresponds roughly to the effect of a nuclear reactor in Forsmark. Regarding the outbreak of the Coronavirus, it is our assessment at present that it will affect Advanced to a limited extent.
Listing of Advanced Soltech (ASAB)
To assist with the planned listing of ASAB on the Nasdaq First North Growth Market during the first half of 2020, ASAB has mandated Carnegie Investment Bank and DNB Markets as advisors. The listing
process is ongoing and follows the plan. All shareholders in Soltech will be informed in good time of the listing by letter.
New graphic profile and website
In December, the parent company changed its graphic profile at the same time as a new modern website was launched. Our strategy is for this new profile to be used by all subsidiaries in the Group, but these will retain their existing names. With a common graphic profile we create a stronger brand awareness which benefits us in both sales and recruitment work.
We are facing the big breakthrough
We have come a bit into this exciting year and the plan is to expand greatly in a market that is really facing its breakthrough. We have the drive, resources, products and timing on our site. Welcome to follow along on the journey.
Sincerely,
Stefan Ölander, CEO
About Soltech Energy Sweden AB (publ)
Soltech is a comprehensive supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese venture is conducted, Soltech Sales & Support, NP Group, Swede Energy Power Solutions, Merasol, Soldags and Takorama. Soltech Energy Sweden AB (publ), is traded on Nasdaq First North Growth Market under the short name SOLT and has approximately 32,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com
Strong growth in China and increased focus on building-integrated solar energy.
January – December 2017
- The energy sales business area of Advanced SolTech Renewable Energy Hangzhou Co. Ltd. (ASRE) grew over 650 % throughout the period, reflecting net sales amounting to approximately 20 MSEK (2 MEUR), of which 51% (10.2 MSEK) is consolidated in the Concern.
- The Concern’s intake, 49.8 (49.9) MSEK, under the period is essentially unchanged when compared with the previous year.
- The operational result for the Concern amounted to -17,6 (-15,7) MSEK. Cleared of non-recurring costs, the operational loss amounted to -13.6 MSEK.
- The Concern’s result, after financial costs and tax, amounted to -22.3 (-18.6) MSEK.
- The result per share amounted to -0.72 (-0.60) SEK.
- The preferential rights issue in SolTech was 147 % subscribed and provided 90 MSEK before new issue costs and was conducted with G&W Fondkommision (Security Brokers) as Financial Advisor.
- One-time entry for the write-down of shares in Wasa Ror negatively affects the Swedish operation 2.5 MSEK. The Concern’s growth and result have additionally been negatively affected by a 14 MSEK sales reduction at Wasa Rör and an income drop from 4 to -1.15 MSEK, which in large part was compensated for by the growth and profit at ASRE, but not completely.
- Cash flow amounted to 9.8 (25.5) MSEK. The cash flow has been affected by, among other factors, funds provided by a new share issue in the parent company, whereof 40 MSEK was paid in before the turn of the year and 49.7 MSEK was received in January 2018.
- Investment in solar energy installations in the jointly held company in China, ASRE, amounted to approximately 294 MSEK (29.4 MEUR) as of the book closing day and includes approximately 71.4 MSEK that was received under 2017. The Concern’s share is 51 %. The capacity of installations coupled to the central electric network totals the equivalent of 29.08 MW, estimated to generate a current annual income for ASRE amounting to approximately 45 MSEK (4.5 MEUR).
- The annual general meeting will be held on 29 May 2018 at Nasdaq Stockholm’s locale in Frihamnen. The meeting will be directly coupled to a capital market day in cooperation with Nasdaq Stockholm and Avanza Bank. The board of governors recommends that no dividend return be declared for the period.
Second-half of 2017
- Net sales amounted to 25 (24) MSEK; an increase of 12.1 % compared with the previous year.
- The period’s result amounted to -10.6 (-9.2) MSEK.
- The per share result amounted to -0.36 (-0.31) SEK/share.
- Cash flow mounted to 35.3 (9.5) MSEK.
After the book-close period’s result
- A successful bond offer together with Avanza Bank. The Concern was provided 128 MSEK, before new issue costs, for the purpose of continuing investment in solar energy installations in China.
- SolTech Energy gets its first Norwegian customer under the Sapa agreement contract and opens up a new market.
- SolTech Energy receives an order for the installation of ShingEl on seven single-family houses.
- YAn additional 4.35 MW (megawatts) are coupled to the central electric network, generating income for the 51%-owned Chinese company, ASRE.
- ASRE receives an order for 2.5 MW, estimated to provide annual income amounting to approximately 2.9 MSEK, or 58.5 MSEK over the contract’s 20-year term.
The complete book-closing communiqué can be downloaded on the following link: Bokslutskommuniké 2017 – SolTech Energy Sweden AB (publ)
The CEO comments
During 2017 we have focused on our growth areas: ASRE in China, our exclusive cooperation with Sapa Building Systems in the Nordic and Baltic regions, and SolTech ShingEl, which is both a roof panel and solar cell for the production of electricity. The development of ASRE has been very strong during the year, with over 650 % growth – and we see the same trend continuing under 2018.
We have a backorder log of 22.94 MW – 10.43 MW under construction and 29.08 MW that are coupled to the electric network, generating income. With the use of the capital that was provided by the new bond issue, we expect to build and set into operation an additional circa 15 MW of solar energy capacity during the first half of 2018. On top of that, our Chinese partner has signed an order for 13 MW, which will be sold to ASRE after the installation has been set into operation.
The cooperation with Sapa is running according to plan, and with an expanding pipeline of big and attractive projects. Here and now, however, we need patience before we will see the final result of our work. Our products are an integral part of the overall design of a building’s outer shell, which in turn means long project times from the start to the implementation of contracted installations. In the meantime, we have many building projects that are very near their starting date and we expect to start climbing our actual growth curve together with Sapa. Our own product SolTech ShingEl has experienced – ever since its launching on SNEC – strong interest. During 2017 and thus far into 2018, we have, for example, signed a distribution contract with – and also obtained our first ShingEl order from – Rexel, which is one of the world’s leading electrical wholesalers, with operations in 23 countries, 19 of which are solar energy users. Through this contract, ShingEl will be marketed in Sweden via, among other locales, the 63 Segla och Storel stores that are part of the Rexel concern. The overall plan, however, is to successively grow internationally together with Rexel in their other markets. Clearly notable, among other Shingel customers, are Vasakronen, one of Sweden’s biggest realtors and Myresjöhus as well as a number of other realtor and construction companies and private individuals. The sum total value of ShingEl orders so far amount to 9.6 MSEK; the majority of which will be generating income during the first half year of 2018. In order to create the right pre-conditions for ShingEl’s growth with the sector, we have also signed a contract with Svea Solar that has nationwide sales and installation capacity
So far, everything is looking positive with great potential for strong growth during 2018. This is also reflected in the oversubscribed preferential rights new share issue in November/December 2017 that brought in 90 MSEK and made possible continued investment in China, as well as in other SolTech focus areas However, during 2017 we have also experienced a number of disappointments, not least the 14 MSEK sales decline at Wasa Ror and the accompanying result loss, from 4 MSEK to -1.15 MSEK, which is to say, a total result affect of -5.15 MSEK compared with 2016. In large part this was due to a constant high level of building activity and a reorganization that didn’t fully function according to plan. Taking into account both Wasa Rör’s negative change and the cost of 4.5 MSEK for the never-realized bond issue with Dankske Bank during 2017, the affect on the concern’s result totals -9.65 MSEK. A great deal has been compensated for by the fine development of ASRE, but not all. To avoid similar developments during 2018, we will be setting more focus on ASRE in China, on ShingEl, and on cooperation with Sapa.
For more information,please contact: Frederic Telander, CEO SolTech Energy. Tel: 08-441 88 46, email: frederic.telander@soltechenergy.com
The information contained in this press release conforms to that which SolTech Energy Sweden AB (publ.) is required to make public according to the EU’s regulation.596/2014 concerning securities market abuse. Said information is furnished, via the above-cited contact person’s authorization, for publication on 27 February 2018, 17:15 CET.
SolTech Energy in brief
SolTech Energy develops and sells building-integrated solar energy products for all forms of building structures – commercial, public and residential. The products are a part of a building’s outer shell, as a roof, wall or window, containing semi-transparent solar cells for the production of electricity that simultaneously shuts out solar heat. Soltech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT” with over 14,000 shareholders. Also included in the concern are its jointly owned (51%) subsidiaries ASAB in Sweden and ASRE in China, as well as its wholly owned subsidiary Wasa Rör T Mickelsson AB. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.com
Investment in China
SolTech’s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd (ASRE), where SolTech owns 51 percent and Advanced Solar Power Hangzhou Inc. (ASP) owns 49 percent. The business model consists of having ASRE finance, install, own, and periodically service solar energy installations mounted on the roofs of customer-owned facilities. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term, 20-25 year contract to buy all the electricity and/or thermal heat the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, along with various forms of subsidies per produced kWh. Focus is now concentrated on building a backlog of orders for 2018 and beyond, with the goal of obtaining an installed capacity of 605 MW (megawatts) by the close of 2021, which in 2022 will be set into full operation, generating current annual sales amounting to approximately 1 billion SEK (100 MEUR).
ASAB’s role within the SolTech concern is to finance parts of SolTech Energy’s operation in China, which is run by its fellow subsidiary Advanced SolTech Renewable Energy Hangzhou Ltd. (ASRE). By dint of ASAB having been duly created, investors are given the possibility of investing in renewable energy and, at the same time, thereby contributing to the improvement of the climat conditions in China.
Result for the period (Mar-Dec. 2016) and the company’s status
- The year’s result amounted to -1,7 MSEK (-0.18 MEUR)
- Net financial status (income/expense) amounted to -1,3 MSEK (-0.14 MEUR)
- The cash flow amounted to 2,5 MSEK (0.26 MEUR)
- The balance sheet total amounted to 68 MSEK (7.2 MEUR), of which 4.5 MSEK consists of the company’s own capital.
CEO Frederic Telander comments:
- Advanced SolTech Sweden AB (publ.) has carried out a vital roll in SolTech’s strong growth during 2016 and continues to apply itself to market investments during 2017. We in the SolTech concern have delivered in excess of our goals in China during the past year. Thus far this year, we have reached 35% (17.4 MW/megawatts) of our 50 MW sales goal for 2017, and ASAB will continue to carry out its vital roll of attracting investment capital to renewable energy. The Chinese market is notably comprehensive and expansive, and it is with great expectation that we continue to invest, and by so doing contribute to the improvement of China’s climate through the replacement of coal with renewable energy.
Read the full report here (swedish): Year-end 2016 – Advanced SolTech Sweden AB (publ)
For more information, please contact: Frederic Telander, CEO Advanced SolTech Sweden AB (publ.) and SolTech Energy Sweden AB (publ.). Tel: 08-441 88 46. Email: frederic.telander@soltechenergy.com
The information contained in this press release conforms to that which SolTech Energy Sweden AB (publ.) is required to make public according to the EU’s market abuse regulation.596/2014, as well as the law (2007:528) concerning the securities market. Said information is furnished, via the above-cited contact person’s authorization, for publication on 28 February 2017, at 07:00 CEST.
Advanced SolTech Sweden AB (publ.) in brief
With the express aim of financing current investment in China, SolTech Energy Sweden AB(publ.) och the Company’s partner i China, Advanced Solar Power Hangzhou Inc., have established ASAB. ASAB:s operational purpose is to provide loans to the parent concern in order to finance solar energy installations in China, which are owned and periodically maintained by its fellow subsidiary, Advanced SolTech Renewable Energy Hangzhou Co. Ltd. (ASRE), or its wholly-owned local subsidiaries. Security for the borrowed funds rests in the underlying assets (solar energy installations and accounts receivable. In May 2016, ASAB offered a new bond issue, which resulted in capital proceeds amounting to approximately 65.5 MSEK. The bonds are secured by the guarantee of the parent company, SolTech Energy Sweden AB (publ.), and are listed, as of July 2016, on the First North Bond Market, traded under the symbol SOLT1. The company’s Certified Advisor is Mangold Fondkommission AB. For more info, see: www.advancedsoltech.com
SolTech Energy AB (publ.) in brief
SolTech Energy is a Swedish solar energy company that specializes in developing and implementing esthetically attractive solutions that enable every building to produce more energy than it consumes. SolTech Energy develops its own products, which are based on research carried out at Kungliga Tekniska Högskolan (KTH- Royal Institute of Technology) and function as part of a building’s outer shell that produces electricity and/or hot water. Included in the product assortment are unique, customer-tailored semi-transparent thin-film solar cells that, among other retail venues, are now sold via the Company’s exclusive contract with Sapa Building Systems throughout the Nordic and Baltic region. SolTech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. Included in the concern are its jointly owned (51%) subsidiaries Advanced SolTech Sweden AB (publ.) ASAB, and Advanced SolTech Renewable Energy, Hangzhou Inc. (ASRE), as well as its wholly owned subsidiary Wasa Rör T Mickelsson AB. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.com
Investment in China
SolTech’s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd (ASRE), where SolTech is the majority (51%) owner and Advanced Solar Power Hangzhou Inc. (ASP) the minority (49%) owner. The business model consists of having said jointly owned company, ASRE, responsible for the installation, ownership, and periodic maintenance of solar energy installations mounted on the roofs of customer-owned facilities. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term, 20-25 year contract to buy all the electricity and/or thermal heat the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, in combination with various forms of subsidies per produced kWh. Focus is now concentrated on building a backlog of orders for 2017 and beyond, with the goal of obtaining by the close of 2021 an installed capacity of 605 MW (megawatts), which in 2022 will be set into full operation, generating current annual sales amounting to slightly over approximately 1 billion SEK (105 MEUR).
January – December 2016
- Net sales increased under the period to 49.3 (40.1) MSEK; a 23% increase as compared with the previous year
- Earnings result after taxes amounted to -15.7 (-13.1) MSEK / -1.65 (-0.14) MEUR
- The concern’s result after taxes amounted to -18.6 (-13.2) MSEK / -1.96 (-1.39) MEUR
- Earnings per share amounted to -0.60 (-0.52) SEK / -0.06 (-0.05) MEUR
- Lump sum write-off of inventory in the Swedish business operation amounted to 2.8 MSEK (0.29 MEUR)
- Cash flow amounted to approximately 9.8 (25.5) MSEK / 1.03 (2.68) MEUR, including funds provided by a new stock issue in the parent company and issue of bonds.
- Investment in solar energy installations in the jointly-owned company in China, Advanced Renewable Energy Hangzhou Co. LTD. (ASRE), amounted to approximately 160 MSEK as of year-end closing. The concern’s share mounts to 51 %. Installations producing the equivalent of 16.13 MW have been coupled to the central electric network and are estimated to generate continuous annual earnings for ASRE amounting to approximately 27 MSEK.
- The Board of Directors recommends that no dividends be paid out for the period.
Second half/2016
- Net sales amounted to 24 (19.4) MSEK; a 23.7% increase as compared with the same period in the previous year.
- The period’s result amounted to -9.6 (-7.8) MSEK / -1.01 (-0.82) MEUR
- Earnings per share amounted to -0.31 (-0.31) Swedish crown/share / -0.03 EUR
- Cash flow amounted to -33.7 (-16.8) MSEK / -3.5 (-1.77) MEUR
Subsequent to the report period’s release
- The order backlog for ASRE in China* stands at 17.4 MW (megawatts) solar energy installations, as compared with a backlog in the area of 8.68–10.68 MW reported for the same period the previous year.
- On the strength of robust sales developments, a new five-year cumulative sales goal (2017-2021) has been set at 605 MW for ASRE in China, as compared with the previous cumulative sales goal (2015-2019) set at 230 MW.
- These 605 MW are estimated to be fully coupled to the central electric network in the year 2022, generating an annual income amounting to over 1 billion SEK (105 million EUR), as compared to the earlier estimated annual income figure of 400 million SEK (42 million EUR) to be generated in the fiscal year 2020, based on a fully coupled capacity of 230MW.
*Order backlog is defined here as contracted installations that are neither under construction nor set in operation.
CEO comment
Under 2016, our strategy has been to continue investing in our targeted growth areas and thereby lay the groundwork for future earnings. With aim of building a stronger SolTech Energy for the company’s shareholders in 2017, we have chosen to direct significant economic and personnel resources into three main areas, specifically: ASRE in China, our exclusive cooperation agreement with Sapa Building Systems in the Nordic and Baltic regions, as well as the further development of our unique product SolTech ShingEl , which serves as both a roof panel and solar cell that generates electricity.
Our development in China has been very strong during 2016, and thus far this year we have booked orders equivalent to 17.4 MW, which a a good start, especially with thought to the 50 MW duly set for the entire year. As a result these successes, we have – in consultation with our Chinese partner ASP (Advanced solar Power Hangzhou Inc.) raised our sales goal for ASRE and simultaneously extended our five-year goal, 2015-2019, to include the years 2020 and 2021. Taking into account these added years, our updated sales goal now reflects a total sold, electric producing capacity of 605 MW. Fully set into operation, this volume is estimated to generate a continuous annual income of over 1 billion SEK , starting the year 2022, and with a handsome profit margin as well.
Read the full report here (Swedish): Year-end 2016 – SolTech Energy Sweden AB (publ)
For more information, please contact: Frederic Telander, CEO SolTech Energy Tel: 08-441 88 46. email: frederic.telander@soltechenergy.com
The information contained in this press release conforms to that which SolTech Energy Sweden AB (publ.) is required to make public according to the EU’s market abuse regulation.596/2014, as well as the law (2007:528) concerning the securities market. Said information is furnished, via the above-cited contact person’s authorization, for publication on 24 February 2017, at 07:00 CEST
SolTech Energy Sweden AB (publ) in brief
SolTech Energy is a Swedish solar energy company that specializes in developing and implementing esthetically attractive solutions that enable every building to produce more energy than it consumes. SolTech Energy develops its own products, which are based on research carried out at Kungliga Tekniska Högskolan (KTH- Royal Institute of Technology) and function as part of a building’s outer shell that produces electricity and/or hot water. Included in the product assortment are unique, customer-tailored semi-transparent thin-film solar cells that, among other retail venues, are now sold via the Company’s exclusive contract with Sapa Building Systems throughout the Nordic and Baltic region. SolTech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. Included in the concern are its jointly owned (51%) subsidiaries Advanced SolTech Sweden AB (publ.) ASAB, and Advanced SolTech Renewable Energy, Hangzhou Inc. (ASRE), as well as its wholly owned subsidiary Wasa Rör T Mickelsson AB. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.com
Investment in China
SolTech’s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd (ASRE), where SolTech is the majority (51%) owner and Advanced Solar Power Hangzhou Inc. (ASP) the minority (49%) owner. The business model consists of having said jointly owned company, ASRE, responsible for the installation, ownership, and periodic maintenance of solar energy installations mounted on the roofs of customer-owned facilities. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term, 20-25 year contract to buy all the electricity and/or thermal heat the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, in combination with various forms of subsidies per produced kWh. Focus is now concentrated on building a backlog of orders for 2017 and beyond, with the goal of obtaining by the close of 2021 an installed capacity of 605 MW (megawatts), which in 2022 will be set into full operation, generating current annual sales amounting to slightly over approximately 1 billion SEK (105 MEUR).