That's what Analysguiden, part of Aktiespararna, writes about Soltech Energy in a recently conducted analysis. They highlight the organic growth rate of 81 percent but also the total increase in revenue for the underlying business, which reached a whopping 217 percent in quarter 4 2022.
New price target – which may soon need to be raised
As a result of the year-end report and that Analysguiden consider Soltech as a prominent consolidator in a fragmented market, they also set a new price target for the Soltech share.
The new price target and the justified value are set at SEK 25 per share. However, the analysis guide is careful to underline that even that level is starting to feel cautious and that they see potential for a rapid doubling of the share price. Despite the recent increase.
Analysguiden also believes that market forecasts for the solar energy market support continued strong growth for Soltech, also in 2024.
– A great analysis to read but foremost I want our fantastic subsidiaries to take the credit. I can’t think of any other industry that is as timely as solar energy, and now the work continues to build Soltech even stronger, says Stefan Ölander, CEO of Soltech Energy.
Here you can read the analysis in its entirety (in Swedish):
https://www.aktiespararna.se/analysguiden/nyheter/analys-soltech-energy-nu-har-det-vant
On March 3, Soltech Energy Sweden AB (publ) made an additional acquisition and acquired 100 percent of the shares in the electrical engineering company Arvika Elinstallationer. The acquired company will become part of Soltech's wholly owned subsidiary Din Takläggare i Arvika from 3 April. This will strengthen Din Takläggare's competence within electrical engineering and solar energy installations. The acquisition is financed entirely from own cash and with newly issued Soltech shares.
Soltech acquires and develops companies in the solar, roof, facade and electrical engineering industries. One way to develop the Group's companies is through strategic investments in additional acquisitions to strengthen the companies' competence and competitiveness.
A new additional acquisition has now been completed when the electrical engineering company Arvika Elinstallationer becomes part of the Soltech company Din Takläggare i Arvika. It is the second additional acquisition for the roofing company after the solar energy company Solexperterna was acquired to Din Takläggare in April 2022. An acquisition that has accelerated their transformation even more into a solar company.
Din Takläggare has shown strong growth and has increased its turnover from SEK 33.5 million in 2020 when the company was acquired by Soltech to aiming to reach approximately SEK 50 million in 2023. The company's increased solar operations makes this additional acquisition even more valuable, as the lack of electricians within the solar energy industry is huge in Sweden.
– Din Takläggare has had impressive ambitions since its start in the Group and has successfully transformed into a roofing company that also specializes in solar. We are now helping them further by making an additional acquisition of a skilled electrical engineering company with strong local roots that will strengthen their solar energy offer even further, says Stefan Ölander, CEO of Soltech Energy.
Din Takläggare's solar energy investment is growing
Arvika Elinstallationer is a well-established player in the region and their history stretches back to 1978. They previously had a close collaboration with Din Takläggare and will now become a wholly owned subsidiary of the company, which means that the brand Arvika Elinstallationer will remain.
– We are grateful that Soltech is helping us with this additional acquisition. Arvika Elinstallationer is a well-run company, and we already have a good cooperation. It feels great that we are kind of creating a small Group within the Group here in Arvika that offers comprehensive competence in roofing, solar and now also electrical engineering, says Håkan Wennberg, CEO of Din Takläggare.
FOURTH QUARTER IN BRIEF
▪ Adjusted* total revenue in the group amounted to SEK 755.2 (238.2) million, an increase of 217%.
▪ Organic growth in the quarter amounted to 81% and was driven by a high demand for solar energy solutions.
▪ Adjusted EBITDA* amounted to SEK 47.4 (-25.8) million.
▪ Adjusted EBIT* amounted to SEK 18.2 (-64.3) million.
The Group's revenue in the quarter amounted to SEK 804.6 (565.8) million, an increase of 42%. The group's earnings before depreciation (EBITDA) amounted to SEK -24.5 (267.3) million. EBITDA was affected by results and write-downs of shares in Advanced Soltech with -121.3 (288) MSEK. The negative effect on EBITDA was dampened by the deconsolidation of the Neabgruppen with SEK 49.4 million. The Group's operating profit (EBIT) amounted to -53.7 (166.3) MSEK.
▪ The period's result after tax amounted to -67.4 (138.2) MSEK.
▪ The period's cash flow from operating activities amounted to -5.2 (-31) MSEK.
▪ The period's cash flow for the group amounted to SEK 26.7 (-157.2) million.
▪ Earnings per share amounted to SEK -0.52 (1.55).
JANUARY – DECEMBER IN BRIEF
▪ Adjusted* total revenue in the group amounted to SEK 1,915.6 (792.5) million, an increase of 142%.
The group's organic growth amounted to 57 (29) %.
▪Adjusted EBITDA* amounted to -23.3 (-63.9) MSEK.
▪ Adjusted EBIT* amounted to -121.1 (-131.4) MSEK.
The Group's revenue for the year amounted to SEK 2,001.5 (1,239.8) million. An increase of 61%. The group's earnings before depreciation (EBITDA) amounted to -148.6 (317.6) MSEK. EBITDA was negatively affected by results and write-downs of shares in Advanced Soltech and effects from Neabgruppen. The Group's operating profit (EBIT) amounted to SEK -246.3 (150.7) million.
▪ The year's result after tax amounted to -269.9 (77.6) MSEK.
▪The year's cash flow from current operations amounted to -191.7 (-103.7) MSEK.
▪ The year's cash flow for the group amounted to -60.8 (115.2) MSEK.
▪ Earnings per share amounted to SEK -2.03 (0.86).
SIGNIFICANT EVENTS DURING THE FOURTH QUARTER
▪ Soltech acquired on 21 September 100% of the shares in Takab i Jönköping AB (TAKAB) with entry on 3 October.
▪ The subsidiary Sud Renovables has installed the largest roof-mounted solar energy solutions in Catalonia. In total, the installation covers an area of roughly 20,000 square meters and has an installed power of 4.2 MW.
▪ The subsidiary 365zon has won two large contracts of a total of SEK 155 million for solar energy installations for approximately 3,500 rental apartments and villas.
▪ Soltech acquired the remaining 20% of the shares in the subsidiary Takrekond i Småland AB on 28 October, 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.
▪ On October 14, Neabgruppen filed for bankruptcy. At the time of the acquisition, Neabgruppen was a clear turn-around case that Soltech worked actively to turn around. The assessment was that there were no conditions to continue the business. Bankruptcy trustees were appointed on 14 October and from this date Soltech does not have the controlling influence over the company. This means that from this date Neabgruppen is not consolidated and thus has no financial impact from 2023 onwards. In the quarter, the deconsolidation has a positive effect of SEK 49.4 million, which is excluded in adjusted EBITDA and EBIT.
▪ Value adjustment and write-down of the holding in Advanced Soltech for a total of -121.3 MSEK. Impairment has taken place at market value as of the balance sheet date and is excluded in adjusted EBITDA and EBIT.
* The adjustment consists of effects from the deconsolidation of Neabgruppen as well as separate listing, deconsolidation and write-down of shares in the associated company Advanced Soltech Sweden AB.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
▪Soltech has on January 31, 2023, via the wholly owned subsidiary Takbyrån, made an additional acquisition of 100% of the shares in the solar energy company Vårgårda Solenergi AB.
▪Soltech has on February 1, 2023, via Wettergrens Tak, made an additional acquisition of 100% of the shares in Plåtteamet i Örnsköldsvik AB.
CEO LETTER
The focus on profitability gives results
Soltech's underlying business shows profitability and a new revenue record in the fourth quarter. Our underlying business reach SEK 755.2 (238.2) million in revenue and delivers an EBITDA of SEK 47.4 (-25.8) million. In the fourth quarter we grew organically by a full 81%, which I am extremely proud of, and in total it was 217% including acquisitions.
During 2022, we have gradually increased our focus on profitability. This means. that more focus is placed on synergy effects within procurement, sales, marketing and personnel issues. Our subsidiaries are doing a very good job and it shows now in this last quarter. What I am most proud of, however, is that our companies have managed to create profitability while growing organically by 81%.
From SEK 50 million to SEK 2,000 million
In the fall of 2018, we decided to change our strategy and start acquiring companies in the solar energy, roof, facade and electrical engineering industries. We had revenues of approximately SEK 50 million in 2018. We have now closed the fourth year after the strategy change and are very proud to have increased our revenues to SEK 2,000 million. Carrying out this extreme growth obviously requires large investments and we have made a loss according to plan during these years. For 2023, our plan is to gradually return to strong focus on our profitability. It is therefore particularly gratifying that in the underlying business we are already doing this in this last quarter
Fixed price project and contract review
A challenge in 2022 was that many subsidiaries were stuck in large projects with a fixed price where the extreme price increases on input goods could not be charged to the customer. On the plus side, the majority of these projects have been finalized in Q3 and Q4 2022, although some remain to be completed in Q1 2023.
At Group level, we have implemented a number of different initiatives to mitigate similar situations in the future. With everything from Group-wide purchase agreements, updated customer agreements and implementation of better adapted system support in combination with resource reinforcements.
Solar and Soltech has the future ahead
I can think of no other industry that is as timely as the solar industry. A long series of macro trends is a strong tailwind for us. I am thinking of private consumers, companies and the public sector who want to produce their own energy from the sun. Not only to get lower electricity costs, but to feel that they are part of a modern energy movement that is creating a sustainable green future. A couple of other trends that benefit us are of course the political will to support solar energy and the entire large financial sector that wants, and has demands, to invest in a sustainable future.
Welcome to join us as we create a modern energy movement and shareholder value.
Stefan Ölander
CEO
Herrljunga-based Annelunds Tak is one of the Soltech Group's roof companies in transformation from a traditional roof company to also offering solar energy in its product range. The company has won its largest solar energy and roof order to date. The assignment contains roof contracting at Stuma Fastigheter in Viared and the company will also install a 4,100 sqm solar energy solution that covers the entire newly laid roof. The project is expected to be completed during spring.
Soltech has a transformation strategy within the electrical engineering, roof/sheet metal and facade industries where the companies are transformed when solar energy competence is added to their existing product range. A combination that is increasingly demanded by customers and society.
The strategy has now resulted in a new deal for Annelunds Tak that applies to both a large-scale roof contracting and 4,100 sqm solar installation at an industrial property in Viared.
The company has previously been involved in projects where both solar energy and roof contracting have been demanded, but this order is the company's largest combination deal. CEO Mikael Markusson is proud of the order and that the company is now taking another step in its development as a roofing company that also specializes in solar.
– This is by far the largest order with both new reroofing and solar energy which feels great. There has been a significant increase in requests regarding solar energy and reroofing from the same supplier. The fact that we are part of the Soltech Group helps us meet the growing demand, says Mikael Markusson, CEO of Annelunds Tak.
Beneficial for both customers and the climate
After the subsidiaries, like Annelunds Tak, is acquired, the process of adding solar energy to the product range begins but they keeping the core competence and business. Something that creates a competitive advantage as many customers are increasingly asking for sustainable solutions for both roof contracting and solar energy solutions.
– The transformation of our companies is fantastic to witness. It creates new business opportunities, strengthens their offers and not least, it contributes to the green transition. By helping traditional companies into the future by offering solar energy solutions, we change society in a sustainable direction, says Stefan Ölander, CEO of Soltech Energy.
Soltech's Dutch subsidiary 365zon has won a solar energy auction for the Netherlands' largest association for homeowners. The winning assignment means that 365zon will install solar panels on approximately 1,000 houses during Q2-Q3. The order value for the deal amounts to approximately SEK 67 million.
The Dutch solar energy company 365zon was Soltech's first international acquisition when they were acquired in April 2022. They are one of the Netherlands' largest solar energy companies and are focused on solar and charging solutions for the consumer market, housing associations and member and consumer organizations for homeowners and tenant owned apartments.
Now the company has once again won a solar energy auction for the largest homeowners' association. The association organizes solar energy auctions to offer its members opportunities to obtain high-quality solar energy installations.
The installers who were chosen for the bid was selected by, previous customer satisfaction, delivery reliability and quality to name a few. This means that 365zon will install solar panels on approximately 1,000 houses during quarters two and three of this year.
– It feels great to gain trust once again and it’s also proof that we previously have delivered in line with the organization's high requirements. We are looking forward to helping their members take advantage of the sunrays, reduce their energy costs and become a part of the green transition, says Lars Buuts, CEO of 365zon.
– 365zon once again proves that they are a company with a strong focus on quality and a good reputation on the market. Getting renewed trust is a good sign and I want to congratulate Lars, Levi, Arjan and the team to the new deal, says Stefan Ölander, CEO of Soltech Energy.
On February 1, Soltech Energy Sweden AB (publ) made a bolt-on acquisition and acquired 100 percent of the shares in Plåtteamet i Örnsköldsvik AB. The acquired company became part of Soltechbolaget Wettergrens Tak from the same day and strengthens the company’s roof and solar energy competence in Västernorrland. The acquisition is financed entirely from own cash and with newly issued Soltech shares.
Soltech acquires and develops companies in the solar, roof, facade and electrical technology industries. The Group also makes strategic bolt-on acquisitions to strengthen existing companies.
The Group is carrying out a bolt-on acquisition by acquiring Plåtteamet. The company will become part of the Nyköping-based roofing company Wettergrens Tak, which has been a Soltech company since September 2021. The acquisition will strengthen the company’s roof and solar business in Örnsköldsvik and the surrounding area.
– It feels great to help Wettergrens Tak continue their business in a fast-expanding region. This bolt-on acquisition gives them even stronger local assembly capacity and new colleagues with solid experience in both solar energy and roofing, says Stefan Ölander, CEO of Soltech Energy.
Strengthens assembly capacity and solar energy competence
Plåtteamet is based in Örnsköldsvik and, in addition to contributing with good assembly capacity, will also contribute with a large machinery and many years of experience with projects that include both roofing and solar energy solutions. Frank Fredriksson, CEO of Wettergrens Tak, has had the mind set to expand the business on more northern latitudes than Nyköping and sees this bolt-on acquisition as an important step.
– This is a fantastic milestone for us, and we are happy that Soltech is helping out with this. We welcome Plåtteamet to Wettergrens Tak and look forward to being able to grow even stronger in Örnsköldsvik. Both regarding roofing contracts and solar energy solutions, says Frank Fredriksson, CEO at Wettergrens Tak.
E-Mobility is the Soltech Group's company with specialist expertise in large-scale electric car charging installations. Now the company has put into operation what is one of Sweden's largest charging stations with 15 charging places for electrical trucks for Göteborgs Lastbilscentral (GLC) in Gothenburg. The technology supplier in the project is Finnish Kempower and the charging station is now in full operation.
The electrification of the transport sector is in full transformation with the aim to reach Sweden's climate goals. The sector must be emission-free by 2045 at the latest. To increase the number of electric-powered transport to a desirable rate, however, more investments are required to strengthen the charging infrastructure.
An example of installations that meet the increased demand for charging solutions is the charging station that is now operating in Gothenburg. It is the Borlänge-based Soltech company E-Mobility that has designed and commissioned the charging station, which is one of the largest in Sweden. Martin Götesson, CEO of the company, comments on the work.
– It feels great that we have reached the finish line with this project for GLC, which invests heavily in charging infrastructure. The fact that we collaborate with Kempower also feels good as they assist with a technical solution that is both powerful and intelligent, which this type of large-scale charging stations requires, says Martin Götesson, CEO of E-Mobility.
Speed charging 24 hours a day
The highly efficient charging station has 15 charging points where the hardware has been supplied by Kempower. All charging points have power for speed charging and can handle a total of 1500 amps and 1 megawatt, which corresponds to the electricity consumption of around 100 villas. The charging park will be available to GLC's co-owners and drivers’ day and night.
– We are delighted to see this project go live. Commissioning one of Sweden’s largest private e-truck charging stations highlights the power of bringing ambitious Nordic companies together. We see the electrification of buses and trucks developing rapidly in the coming years and projects such as this are meaningful ways to electrify transport, says Tomi Ristimäki, CEO of Kempower.
– With the goal of reducing CO2 emissions and at the same time making it easier for our partners to convert to an electrified vehicle fleet, it feels great that the charging points are now put into operation. We have had a well-functioning collaboration with E-Mobility and Kempower and welcome our co-owners, drivers and partners to our new charging park, says Martin Salenius, CEO at GLC.
On January 31, Soltech Energy Sweden AB made a bolt-on acquisition and has acquired 100 percent of the shares in the solar energy company Vårgårda Solenergi AB, based in Vårgårda. The acquired company will become part of the wholly owned subsidiary Takbyrån i Alingsås AB from February 1. This reinforces Takbyrån's solar energy transition. The acquisition is financed entirely from own cash and with newly issued Soltech shares.
Soltech acquires and develops companies in the solar, roof, facade and electrical technology industries. The Group also makes strategic bolt-on acquisitions to strengthen existing companies.
Now the Group is carrying out a new bolt-on acquisition by acquiring the solar energy company Vårgårda Solenergi. The company will become part of the Alingsås-based roofing company Takbyrån, which was acquired by the Soltech Group in June 2021, and will strengthen the roofing company's already existing solar energy department.
– Takbyrån has had great ambitions since its start in the Group and now we will assist further growth within in the solar energy business area. Vårgårda Solenergi has strong local roots and headed by the well-known Daniel Fritzon and is exactly the type of bolt on-acquisition that creates strategic value for our subsidiaries, says Stefan Ölander, CEO of Soltech Energy.
The roofing company's solar energy department grows
Vårgårda Solenergi is a well-established name in the region. The company offers its customers complete solar energy solutions, charging, storage, and smart systems. Vårgårda Solenergi becomes part of Takbyrån's growing solar energy department and CEO Håkan Jaconelli sees the acqusition as a great value for further expanding the solar business.
– We will strengthening our offering in solar energy when we welcome Vårgårda Solenergi to the company and specifically to our solar energy department. This feels great and we are happy that Soltech is helping us with this bolt-on acquisition, says Håkan Jaconelli, CEO at Takbyrån.
The logistics operator Boxflow and the solar energy company Soltech Energy Solutions are developing an optimized technical solution and business model for the logistics industry through the Greenbox Energy concept. The green overall solution contains solar panels, energy storage and a speed charging park for trucks and private vehicles. Everything is tied together in the same grid connection. The concept will be available to the logistics industry in the first quarter of 2023.
The logistics industry is growing fast, at the same time the ongoing electrification of the transport and vehicle industry. But for the industry to be able to reduce its emissions by 70 percent by 2030, it is necessary that the pace of the transition increases. That's why Boxflow and Soltech Energy Solutions are creating the Greenbox Energy concept, which will make it easier for more logistics companies to turn their properties into smart energy hubs.
The technical solution in the concept is that roof-mounted solar panels, energy storage and a speed-charging park are connected behind one and the same grid connection. Together, the energy solution enables the property owner to produce, store and use solar energy in an optimized way. In the project, Boxflow contribute with its logistics expertise and Soltech is the technology developer and supplier.
The property owner does not have to do the initial investment for the installation but instead go with Greenbox Energy who will make the investment through the establishment of a PPA agreement (Power Purchase Agreement), which means that the property owner only commits to buying the electricity that the solar energy solution produces.
– This is an exciting venture that we are very proud of. The concept will make a real difference and make it easier for the industry to switch to electricity driven transports and produce green energy without straining the electricity grid. It feels great that we and Soltech are creating new opportunities for logistics property owners, says Oscar Andersson, CEO at Boxflow.
Benefits for both property owners and the public
The highly efficient charging park, powered by the self-produced electricity, will create great benefits for the property owner's vehicle fleet, but also for the public and visitors. The charging and battery park will also be accessible to the public so that passing commercial traffic and private individuals can charge their vehicles in the speed-charging park.
– Greenbox Energy is well suited for logistics properties that often have large unused roofs, energy-intensive operations, and land where large batteries can fit. This creates good conditions for us as a technical integrator to tie together all energy solutions behind the property owner's existing grid connection and create a business model that benefits both the customer and the society, says Rickard Lantz, Business development manager at Soltech Energy Solutions.
A three-step solution that connects to the same grid connection:
1. Roof-mounted solar panels
By letting a large-scale solar energy solution cover the otherwise unused roof surface, the property owner creates own electricity. The property owner also does not necessarily have to cover the initial investment for the solar installation, Greenbox Energy covers it. The property owner only undertakes to buy the electricity that the solar panels produce through a so-called PPA (Power Purchase Agreement).
2. Batteries that store the energy
The energy storage is charged by the solar panels when the sun is shining and by the electricity grid when prices are low, creating a safe energy reserve of 2 MWh. Not least, this will make the property owner less sensitive to power cuts and contributes to balancing the electricity grid.
3. Highly-efficient charging park
With a highly efficient charging park of between 20-40 charging points, staff, customers, and private individuals passing by can quickly charge their electric vehicles. Something that both contributes to the green transition and strengthens the area's charging infrastructure for both the public and professional traffic.
Visit the website for more information: www.greenboxenergy.se
Sud Renovables became the Soltech group's first subsidiary in the Spanish solar energy market when they were acquired this summer. Now they have built what is the largest rooftop solar solution in Catalonia, a region in northeastern Spain. In total, the installation covers an area of roughly 20,000 square meters and has an installed power of 4.2 MWp.
The Spanish solar energy company Sud Renovables became Soltech's second international acquisition when they became part of the group at the beginning of July this year. The company with approximately 130 employees develops and installs solar energy and storage solutions for private property owners and companies through rooftop solar installations, solar parks, and solar facades.
The company has now constructed and installed what is now Catalonia's largest rooftop solar installation on the rooftop of a cable company in Central Catalonia. Manel Romero at Sud Renovables is proud of the project, which significantly reduces the property owner's electricity costs.
– At Sud Renovables we are very proud to have realized such a great project, which keeps us in the lead for industrial installations of the photovoltaic sector. We are very pleased to help companies save their energy expenditure while also reducing their CO2 footprint, says Manel Romero, CEO & Co-Founder at Sud Renovables.
– Sud Renovables is a very well-run and successful solar energy company, and we are very happy that they became a part of the Soltech Group this summer. We would like to congratulate them on their exciting project, which gives an indication of the great potential of both the company and the Spanish solar energy market, says Stefan Ölander, CEO of Soltech Energy.
