The analysts point out that even with the situation with a deteriorating economy in general, Soltech manages to increase the organic growth rate to 44 percent in Q3 and continues to deliver strong growth. At the same time, it is also stated that the share is significantly undervalued at today's level and that there is a large upside.

Here you can read the analysis in its entirety:
https://www.aktiespararna.se/analysguiden/nyheter/analys-soltech-energy-fortsatt-kraftig-tillvaxt

SOLTECH DELIVERS 44% ORGANIC GROWTH

CEO comment:

Soltech's third quarter 2022 shows an impressive organic growth of a whopping 44 percent, which I am very proud of. We don't only acquire companies, by doing so we also develop and enhance growth within the Soltech family. We reach SEK 482.5 million in revenue, which corresponds to 119 percent in growth adjusted for Advanced Soltech. However, we still have negative figures in terms of results, which is something that we have great focus to turn around going forward, not least by increased synergy effects. Soltech should not be an speculative company with low or non-existent revenues.

We will soon exceed 2 MDR in revenue and there are great opportunities for us to achieve increased profitability through synergy effects from this large revenue. Not least are synergies between the companies an even greater focus going forward.

THIRD QUARTER IN BRIEF
• The group's revenues during the quarter amounted to SEK 482.5 (267.2) million, an increase of 81%. Adjusted for Advanced Soltech*, the group's revenue amounted to SEK 482.5 (220.1) million, an increase of 119%

• The group's organic growth amounted to 44% (39%) and was driven by high demand for solar energy solutions.

• The group's earnings before depreciation (EBITDA) amounted to -55.3 (29.3) MSEK. Adjusted for Advanced Soltech*, the group's EBITDA amounted to -59.9 (-6.9) MSEK. EBITDA has been positively affected by results from shares in associated companies with SEK 4.6 million. EBITDA has been negatively affected by profit effects from the Neab group of -44.5 MSEK and, in addition to this, also affected by prevailing component shortages and price increases for construction components. The price increases above all affect the group's fixed price projects that were agreed before the price increases. During the quarter, the group also invested in both new acquisitions and existing subsidiaries, which continued to drive increased costs.

• The group's operating profit (EBIT) amounted to SEK -84.8 (4.6) million. Adjusted for Advanced Soltech*, EBIT amounted to -89.4 (-18.2) MSEK. EBIT has, in addition to the effects on EBITDA mentioned above, been affected by increased depreciation as a result of acquisitions.

• The period's profit after tax amounted to -91.1 (-10.6) MSEK.

• The period's cash flow from operating activities amounted to -33.3 (-116.9) MSEK and has been affected by investments in existing operations and increased inventory levels to secure deliveries to existing projects.

• The period's cash flow for the group amounted to SEK 98.6 (399.6) million. Similar to the previous year, the cash flow has been affected by the completed new issue in the quarter of SEK 186 million (SEK 84 million has been added after the end of the reporting period).

• Earnings per share amounted to -0.90 (-0.19).

• During the quarter, the Neab group contributed with total revenues of -4.7 MSEK and EBIT of -33.5 MSEK. In addition to this, the decided bankruptcy has led to non-recurring costs of -11 MSEK, which meant that the total profit impact from the Neab group and related costs amounted to -44.5 MSEK in the quarter.

• The war in Ukraine has an indirect effect on the group's costs and the price development of the components required for the manufacture of solar cell installations, roof installations, electrical installations, and facades. Soltech has no sales to Russia or Ukraine.

THE FIRST NINE MONTHS IN BRIEF
• The group's revenues amounted to SEK 1,207 (674) million, an increase of 79%. Adjusted for Advanced Soltech, revenue amounted to SEK 1,207 (554.3) million, an increase of 118%.

• The group's organic growth amounted to 39% (42%) and is primarily driven by high demand for solar energy solutions.

• The group's earnings before depreciation (EBITDA) amounted to -124 (50.3) MSEK. Adjusted for Advanced Soltech*, the group's EBITDA amounted to -131.2 (-38) MSEK. EBITDA has been positively affected by results from shares in associated companies with SEK 7.2 million. EBITDA has been negatively affected by profit effects from the Neab group of SEK -71.6 million and has also been negatively affected by the previously mentioned price increases on components. During the year, the group continued to invest in both new acquisitions and existing subsidiaries, which drives increased costs.

• The group's operating profit (EBIT) amounted to -192.6 (-15.6) MSEK. Adjusted for Advanced Soltech*, EBIT amounted to MSEK -199.8 (-67.1) and has, in addition to the above-mentioned effects on EBITDA, been affected by increased amortization of goodwill as a result of acquisitions.

• The period's result after tax amounted to -202.4 (-60.6) MSEK.

• The period's cash flow from operating activities amounted to -146.5 (-72.7).

• The period's cash flow for the group amounted to SEK -87.5 (272.3) million.

• Earnings per share amounted to -1.88 (-0.43).

• In 2022, the Neab group contributed with total revenues of SEK 28.1 million and EBIT of SEK -60.6 million. In addition to this, the decided bankruptcy has led to non-recurring costs of SEK -11 million, which meant that the total profit impact from the Neab group and related costs amounted to SEK -71.6 million.

SIGNIFICANT EVENTS DURING THE THIRD QUARTER
Significant events in subsidiaries:

• The subsidiary Rams El has won two new deals regarding electrical installations for schools in Gothenburg. The order value for the two new projects amounts to SEK 21 million.

• The subsidiary ESSA has received an assignment from the real estate company Örebroporten Fastigheter AB for a facade contract at Stadsbyggnadshuset, where part of the facade consists of building-integrated solar cells. The entire facade is expected to be commissioned in the spring of 2023 and the order value amounts to approximately SEK 23.6 million.

• The subsidiary Soltech Energy Solutions has signed an agreement with the municipal energy company Varberg Energi for a large battery park in Varberg that will contribute to stabilizing the electricity grid and optimizing power output. The total investment for the battery park amounts to upwards of SEK 100 million.

• A long-term electricity trading agreement has been concluded between the municipal energy company Nybro Energi and Soltech Energy Solutions. The agreement involves PPA solutions (Power Purchase Agreements) for large-scale solar installations.

Acquisition:
On July 1, Soltech acquired 100% of the shares in TG's El i Finspång AB and the wholly owned subsidiary Smart Solkraft.

• On 1 September, Soltech acquired 80% of the shares in Kalema E-Mobility AB (E-Mobility) with access on the same day. The acquisition is Soltech's first purely electric car charging company with excellence in electric car charging projects for companies and private individuals but also in solar energy services.

• On 21 September, Soltech acquired 100% of the shares in Takab i Jönköping AB (TAKAB) with access on 3 October. TAKAB has around 30 employees who work from the company's headquarters in Jönköping.

International acquisitions:
On 22 June, Soltech acquired 65% of the shares in the Spanish solar energy company Sud Energies Renovables SL with access on 5 July. This establishes the group in the strongly growing Spanish solar energy market. The acquisition is financed entirely from own cash and with newly issued Soltech shares.

Other:
The board of Soltech Energy AB (publ) decided, with the support of the authorization of the general meeting, to carry out a new share issue of approximately SEK 228 million with preferential rights for existing shareholders and possible over-allotment. The rights issue was oversubscribed, and the company received approximately SEK 270 million before issue costs.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

• On October 14, the Neab Group filed for bankruptcy. At the time of the acquisition, the Neab group was a clear turn-around case that Soltech worked actively to turn around. The overall assessment on the basis of the decision is that the Neab group will be financially insolvent for a long time to come and that there are no conditions to continue the business. Bankruptcy trustees were appointed on 14 October and from this date Soltech no longer has controlling influence over the company. This means that from this date the Neab group will not be consolidated and will not have any financial impact from 2023 onwards. In quarter 3, the Neab group contributed with turnover of -0.2 MSEK and EBIT of -33.5 MSEK and for the first nine months of the year with sales of 36.5 MSEK and EBIT -71.6 MSEK. This also includes restructuring costs as a result of the bankruptcy of SEK 11 million. During the past 12 months, Soltech has worked actively to turn around the financial situation in the Neab group both via additions and via the addition of personnel resources. As a result of the deconsolidation, during the fourth quarter, Soltech will receive an operating income not affecting cash flow of a preliminarily estimated SEK 49 million. Soltech does not expect any further effects or costs from the Neab group in the coming quarters.

• The subsidiary Soltech Energy Solutions has signed an agreement for a roof-mounted solar cell installation that will measure approximately 9,400 square meters and consist of 3,624 solar panels. When completed, the solar cells will have an installed output of 1,975 kWp and will account for an electricity production that covers 30% of the property's electricity needs. The solar cell plant is expected to be commissioned in the spring of 2023.

• On October 28, Soltech Energy Sweden AB acquired 20% of the shares in the subsidiary Takrekond i Småland AB with access on the same day. Soltech Energy now owns 100% of the company and the acquisition of the remaining shares in the company is part of the work to continue strengthening Takrekond's transformation towards becoming a solar roof company.

*Advanced Soltech Sweden AB (ASAB) was separately listed on the Nasdaq First North Growth Market on October 29, 2021, and was thus deconsolidated from the group, which affects the comparative figures for 2021

The quarterly report and other financial reports are available at: https://soltechenergy.com/investerare/finansiella-rapporter-kalender/

Soltech company Soltech Energy Solutions has vast experience with large-scale solar and technology solutions. The company is now starting the installation of what will be a roof-mounted solar installation that will annually produce approximately 6 GWh, which is equivalent to household electricity for approximately 12,000 houses.

The facility's size is made possible by a joint arrangement
The initial investment for the facility itself is covered by the investor Swede Solar. That investment makes it possible to build a larger facility than was originally planned. Postnord will lease a larger area of its roof and gets a facility that produces far more than what the business consumes during parts of the year, without the initial investment. The electricity that is not consumed by Postnord is sold to the overall power grid and contributes to the county's supply of green electricity. The property already today has a grid connection, which means the property supports the electricity grid with the excess of solar electricity that is not going to be used in the property, balancing the grid not weighing it down.

Soltech Energy Solutions CEO Christoffer Caesar is positive about the three-party arrangement, which has made it possible to now install approximately 12 times more solar energy on the property's roof than was originally intended.

– It feels great that we are building one of the largest roof-mounted solar energy installations in the Nordics and the fact that Postnord makes it possible for us to install a much larger facility. This means that they will get a large excess of electricity in the summer but also a larger share of solar electricity in the property during the spring and autumn than a smaller solar energy system would have produced. A perfect way to utilize a roof surface that otherwise would have been unused and of course also supporting the local power grid, says Christoffer Caesar, CEO of Soltech Energy Solutions.

Postnord will buy the electricity they consume through a PPA (Power Purchase Agreement). Meaning avoiding an investment, instead buy electricity for a fixed price in a long agreement, getting a stable price for green electricity over time. The maintenance and operation are left to the owner of the installation, Soltech Energy Solutions, and tenant Postnord can focus solely on their core business instead. This installation will be an important part of the company's sustainability plans.

– We want to contribute to the sustainable development of our industry and an important part is to increase the share of renewable energy in our operations. That is why we are very much looking forward to collaborating with Soltech on the solar energy solution at Malmölandet, our property in Norrköping, which will be one of the largest of its kind in the Nordics, says Nilas Linder, Regional Manager at Postnord TPL.

On October 1, 2020, Soltech acquired 80 percent of Takrekond i Småland. On the same day in 2020, 100 percent of Takrekond i Kalmar was also acquired, which is the second twin of the two Takrekond companies.

Now the remaining 20 percent of Takrekond i Småland is also being acquired. This means that Soltech now owns 100 percent of both companies, which during their time at Soltech have been transformed to also have energy solutions in addition to their core expertise in roofing.

– Takrekond is a highly valued company within the Group. They have made an amazing journey from being a traditional roofing company to now also offering solar energy solutions and they have been involved in several solar energy projects during their time in the group That is why we are happy to acquire the remaining part of the company to further support their transformation journey, says Stefan Ölander, CEO of Soltech Energy.

Transformed into a solar roof company
Takrekond is a leading company in the roofing industry with headquarters in Växjö and Kalmar. With over 30 years of experience, Takrekond is well-known in the region, and they are now being transformed into a solar roof company. Since the start of Soltech, they have helped both new and previous customers with various types of solar energy solutions. The company has a dedicated solar energy project manager and CEO Nisse Jansson sees that this will create even better opportunities going forward.

– Now we have even better opportunities to develop our solar energy offer in combination with our expertise in roofing Being part of the Soltech Group gives us a strength we didn't have before, and I see a very bright future for both Takrekond and for the Group as a whole, says Nisse Jansson, CEO Takrekond.

Borlänge-based E-Mobility offers comprehensive solutions in planning, installation, and operation of large electric car charging stations, associated software for customer management and billing, energy storage and also solar energy solutions. The company has been part of Soltech since September 1, 2022 and has now completed a prestigious order in Dalarna.

E-Mobility has helped the sawmill Fiskarheden with electric car charging for their employees and visitors. Each electric car charger is also equipped with intelligent control of the engine heater outlet.

– This order has been a big project for us and we are grateful for the trust and for good cooperation. Fiskarheden is making a strategic investment and can now offer safe and efficient charging stations for employees and visitors. This will also contribute
to Fiskarheden as an employer as the number of electric cars continues to increase and the demand for electric car charging increases, says Martin Götesson, CEO of E-Mobility.

Charging services for Fiskarheden employees
The society has high demands and a rising need for more electricity and renewable energy. In 2021 alone, the number of electric cars in Sweden doubled. This was a contributing reason for the company to build up its own charging infrastructure at its sawmill in Fiskarheden, a venture that is partly financed by the European Union – NextGenerationEU. Magnus Larsson, CEO at Fiskarheden also sees that employers who want to create attractive workplaces in the future need to be able to offer a smart charging infrastructure.

– We see great advantages in investing in our own charging infrastructure. Society is becoming electrified, and our employees will most certainly drive electric cars in the future. This investment also strengthens us as a company we believe charging stations will become a hygiene factor for employers and property owners as a service to employees in the near future, says Magnus Larsson, CEO of Fiskarheden.

The Soltech company Soltech Energy Solutions has a vast experience of large-scale solar energy solutions. Now the company has been commissioned to build a roof-mounted solar energy solution for the municipal energy company Öresundskraft, which Foodhills Fastigheter then will own. When completed, the solar panels will have an installed output of 1,975 kWp and will contribute with an electricity production that covers 30 percent of the property's electricity needs.

The installation will be commissioned on Foodhills Fastigheter's newly produced logistics property in the heart of the newly formed food cluster in Bjuv, which has been given new life after Findus shut down its historical pea production in the area in 2016. The area is now once again an active logistics and food hub but are like many other businesses in southern Sweden facing challenges such as high electricity prices.

– It feels fantastic that we get to participate and contribute to the energy supply in an area that plan for the future overall sustainability and creates an important function for our food supply. Therefore, this assignment feels extra motivating and our partner Öresundskraft is making an important contribution to the area's future electricity supply, says André Nylén, Key Account Manager at Soltech Energy Solutions.

Food production powered by solar energy
Since Foodhills began to rehabilitate the area in 2018, more than 30 companies are operating in the area, which is called a hub for the circular food production of the future. By installing rooftop solar panels covering nearly one hectare, Öresundskraft helps the property owner to become less dependent on grid energy with increasing electricity prices and ultimately contribute to Hellofresh's operations being powered by the sun's rays.

– Renewable energy is a natural choice, and this is an important part of our mission to contribute to a sustainable energy supply. The food cluster in Bjuv is a very exciting area and we look forward to our solar energy solution being put into use. Together with Soltech, we bring together our different skills to drive the green transition and we really feel that we have the power to change, says Sara Norman, business developer solar, charging and storage at Öresundskraft.

Fasadsystem in Stenkullen became part of the Soltech group in April 2020 and is a comprehensive supplier in all types of facade installations and solar cell facades. Since joining the Soltech Group, they have been involved in designing and installing several notable solar cell facades, not least the large-scale solar cell facade in Mölnlycke Fabriker and Sweden's largest solar cell facade in Jönköping. The company has now been commissioned to install a new solar façade, this time for Berners.

The solar cell facade is to be installed at the car dealer Berner's showroom in Östersund. In total, the facade-integrated solar panels are estimated to annually produce around 15,000 kWh for the property. In addition, it will be designed in a mocha brown color, which means that it will also be aesthetically designed. Daniel Christiansen, project manager for solar cell installations at Fasadsystem, tell us about the positive values with a solar cell facade.

– It feels great to help Berners with their solar facade. We hope that this sustainability initiative will contribute to get more car dealers open to the advantages of building-integrated solar facades which, in addition to producing electricity, give the property a stylish and modern climate shell, says Daniel Christiansen, project manager at Fasadsystem.

An obvious choice for Berners
Berners was founded almost 100 years ago and is today one of Sweden's largest privately owned dealers within the Scania and Volkswagen Group with operations in the counties of Jämtland and Västernorrland. Berners has high sustainability ambitions, and the solar cell facade is part of the work to become a green car dealer.

– We are always aiming to develop and improve our properties. This solar cell facade is part of that work, and we look forward to producing our own solar energy in the future. To accelerate our sustainability work further, we are also looking at installing solar energy solutions on our roofs to meet the electrification of our vehicles, says Ante Åkerström, property manager and market strategist at Berners.

CEO Stefan Ölander in a comment:
– We are humbly grateful for the great trust our shareholders have shown us in this new share issue. Despite extremely difficult external factors, the issue is oversubscribed. Now we continue our acquisition strategy, our investments in existing subsidiaries, our focus on profitability going forward and our contribution to a green energy transition.

Number of shares and Over-allotment
A total of 16,930,491 shares were subscribed with the support of subscription rights, corresponding to approximately 82 percent of the Rights issue, and 7,623,537 shares without the support of subscription rights, which means that approximately 118 percent of the issue was subscribed.

To enable an even greater investment in acquisitions and existing subsidiaries, the board has decided to issue an additional 3,797,020 shares in an Overallotment issue. This takes place at a subscription price of SEK 11 per share, which gives SEK 41,767,220 million, and on the terms stated in the prospectus regarding the rights issue, which gives approximately SEK 228 million. Through the Rights issue and the Over-allotment issue, a total of 24,554,028 shares will be issued and the Company will thereby receive approximately SEK 270 million before issue costs of approximately SEK 28 million.

Allocation in the Rights Issue
The persons who subscribed for shares with the support of subscription rights have, in connection with simultaneous payment, been allocated BTA. Notice of allocation to the persons who subscribed for shares without the support of subscription rights is expected to be distributed on September 28, 2022 by sending a settlement note. Allocation to the persons who have subscribed for shares via a trustee is expected to appear on the account around September 28, 2022. Trustee-registered shareholders will receive notification of allocation in accordance with the respective trustee's routines. Subscribed and allocated shares must be paid in cash no later than on the settlement day, October 3, 2022, in accordance with the instructions on the settlement note. Only those who receive allocation will be notified.

Allotment in the Overallotment Issue
Notice of allocation to the persons who subscribed for shares without the support of subscription rights is expected to be distributed on September 28, 2022 by sending a settlement note.
The board has decided to assign all who subscribed for shares without preference the right to allocation in the Overallotment 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 1,227,701.4 to a total of SEK 6,416,953.45. The number of shares in the Company will then increase by a further 24,554,028 shares to a total of 128,339,069 shares.

Paid subscribed shares, BTA
Subscription of shares with and without preferential rights took place during the period 12/9 – 26/9 2022. As soon as the share capital increase has been registered with the Swedish Companies Registration Office, paid subscribed shares (BTA) in the preferential issue will be converted into new shares. Until then, trading with BTA is ongoing on the Nasdaq First North Growth Market. Trading in new shares is estimated to be able to begin on the Nasdaq First North Growth Market around week 41 of 2022. The persons allocated shares in the Over-allotment issue will not receive BTA but will receive BTA2 which will be converted into shares after the share capital increase has been registered with the Swedish Companies Registration Office. This is estimated to take place around week 41 of 2022.

Since NP Gruppen became part of the Soltech Group, they have been transformed into a solar roof company that also offers solar energy solutions and have completed several solar energy projects in recent years.

Now the company will carry out several new solar energy assignments in southern Sweden with the help of Trönninge El, which in May became part of the Soltech company Provektor through an bolt on-acquisition.

Among other things, the assignments apply to about ten properties in Malmö that will have roof-mounted solar energy solutions installed. The properties are owned by a large public housing company. The houses that will receive solar installations are apartment buildings, of which one of the properties is a student residence. Marcus Juhlin, solar energy manager at NP Gruppen, talks about the importance of collaboration and is satisfied with the synergy effects created in the Group.

– The assignments are proof that alone is not strong and Trönninge El’s connections in southern Sweden has been decisive for these deals. It feels very motivating and fun that companies within the Group can open new doors for each other and complement each other’s skills in different projects. Now we look forward to jointly carrying out these solar energy projects for housing associations and property owners who have clearly realized the advantages of self-produced solar energy, says Marcus Juhlin, solar energy manager at NP Gruppen.

Wettergrens Tak has been active in the industry for over 70 years and has been part of the Soltech Group since August 2021. The company is a comprehensive supplier that masters everything in roofing and works with private individuals, regions, municipalities, industries, construction companies and other businesses. Based in Nyköping, Södermanland, Södertälje and Stockholm have previously been the company's main areas, but now the company is also strengthening its presence outside Nyköping.

The project, which has now been completed, consists of re-roofing eight houses that have received new sheet metal roofs and roof-mounted solar energy installations. The total roof replacement amounted to approximately 3,300 square meters and the solar cells cover an area of approximately 1,100 square meters and the assignment was carried out for Riksbyggen. CEO Frank Fredriksson talks about the importance of being able to offer services in larger parts of the country.

– It feels great that we have finished this prestigious project and I want to thank Riksbyggen for the confidence. We have previously carried out projects for them in Östersund and now also in Örnsköldsvik, which is proof that we have good capacity to carry out roof and solar energy projects also in this region. For us, it is a strength not to be tied to a geographical area, especially when the number of requests from different counties increases, says Frank Fredriksson, CEO of Wettergrens Tak.