TG:s El is the Soltech Group's latest acquisition and is based in Finspång and Norrköping, and the company's history, which started back in 1982, has over the years created a strong local presence in Östergötland. The company's core competence is electrical engineering, but they are also at the forefront of solar energy, as the company itself previously acquired the company Smart Solkraft, which forms TG:s own solar energy department. Now TG:s El has received its largest order ever when the Hällestagården nursing home is to be expanded.

¬ We are delighted to be trusted to contribute to the expansion of Hällestagården. It feels great that we get to carry out both electrical installation and solar cell installations. I believe that this assignment is a proof that our local commitment and experienced employees makes us competitive, says Rickard Thormeyer, CEO of TG:s El.

A flying start in the Group
The company is the Soltech Group's latest acquisition and was acquired as recently as July 1, 2022. Although TG:s El is already in the forefront of solar energy, the goal is to integrate even more solar energy into the product range.

– I want to congratulate TG:s El on their biggest order to date. We already know that this is a skilled electrical engineering company that is also strong in solar energy, a combination that will create great business opportunities both today and in the future. We are happy to have them on board, says Stefan Ölander, CEO of Soltech Energy.

The interview can be seen here:

https://www.youtube.com/watch?v=rIs73M9LvkE (in Swedish)

CEO comment:

Soltech's growth in the second quarter is yet another proof of our corporate strength. We reach SEK 437 million in revenue, which corresponds to 126 percent growth pro forma* and our organic growth reached 35 percent. We have good wind in our sails and aim to reach SEK 1.7 billion in revenue this year. We are proud of our entry into both the Netherlands and Spain during the quarter and our companies continue to deliver despite the impact of the turmoil in the world around us.

THE SECOND QUARTER IN BRIEF

• The Group's revenue in the quarter amounted to SEK 437 (266.2) million, an increase of 64%. Adjusted for Advanced Soltech*, the Group's revenue amounted to SEK 437 (193.7) million, an increase of 126%.

• The Group's organic growth amounted to 35 (36) % and is primarily driven by high demand for solar energy solutions.

• The Group's earnings before depreciation (EBITDA) amounted to -30.2 (29.3) MSEK. Adjusted for Advanced Soltech*, the group's EBITDA amounted to -30.2 (-22.8) MSEK. EBITDA has been positively affected by results from shares in associated companies with SEK 7.8 million. EBITDA has been negatively affected by price increases on components as well as continued investments and ventures in both new acquisitions and existing subsidiaries, which drives increased costs.

• The Group's operating profit (EBIT) amounted to SEK -54.6 (8.3) million. Adjusted for Advanced Soltech*, EBIT amounted to -54.6 (-20.5) 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 result after tax amounted to -58.1 (-31.8) MSEK.

• The period's cash flow from operating activities amounted to -42 (48.9).

• The period's cash flow for the group amounted to -105.9 (-25.5) MSEK.

• Earnings per share amounted to -0.51 (-0.33).

• 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 Energy has no sales to Russia.

FIRST SIX MONTHS IN BRIEF

• The Group's revenue amounted to SEK 724.5 (411.4) million. An increase of 76%. Adjusted for Advanced Soltech, revenues amounted to SEK 724.5 (338.8) million, an increase of 114%.

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

• The group's earnings before depreciation (EBITDA) amounted to SEK -68.7 (21) million. Adjusted for Advanced Soltech*, the group's EBITDA amounted to -68.7 (-31.1) MSEK. EBITDA has been positively affected by results from shares in associated companies with SEK 2.7 million. At the same time, EBITDA has been negatively affected by price increases on components as well as by continued investments and ventures in both new acquisitions and existing subsidiaries, which drives increased costs.

• The Group's operating profit (EBIT) amounted to -107.8 (-20.1) MSEK. Adjusted for Advanced Soltech*, EBIT amounted to -107.8 (-48.9) MSEK and, in addition to the effects on EBITDA mentioned above, was affected by increased depreciation as a result of acquisitions.

• The first half-year result after tax amounted to -111.3 (-50) MSEK.

• The period's cash flow from operating activities amounted to -113.1 (44.2).

• The period's cash flow for the group amounted to -186.1 (-127.2) MSEK.

• Earnings per share amounted to -1.01 (-0.65).

SIGNIFICANT EVENTS DURING THE SECOND QUARTER
Significant events in subsidiaries:

• Soltech Energy Solutions has been commissioned to build a 38,000 square meter solar installation for Coop Sverige AB consisting of CFP-certified panels with recycled silicon from Norway and silicon from Germany and the US.

• Soltech Energy Solutions and Provektor have jointly been commissioned to install solar energy solutions at ICA stores.

• Soltech's subsidiary Soltech Energy Solutions has been commissioned to build a 4 MW solar energy installation on Infrahub's property where Svenska Retursystem will conduct its operations.

• Soltech's subsidiary Takorama has been commissioned to install a solar energy solution of 1,400 square meters and approx. 7,000 square meters of roofing on one of the roofs of the Svenska Mässan Gothia Tower in Gothenburg.

Acquisition:
• Soltech has made its first additional acquisition by acquiring 100% of the solar energy company Solexperterna Värmland AB, effective April 1. The acquired company will become part of the wholly owned subsidiary Din Takläggare, which thereby strengthening its solar expertise.

• Soltech has made another additional acquisition and acquired 100% of the shares in the electricity company Trönninge Elektriska AB, based in Halmstad. The acquired company will become part of the wholly owned subsidiary Provektor Sweden AB from 1 June.

International acquisitions:
• Soltech has acquired 53.3% of the shares in the Dutch solar energy company 365 Energie Holding B.V. (365zon) based in Eindhoven, the Netherlands. The acquisition of 365zon is financed entirely from own cash and with newly issued Soltech shares. The company had a turnover of SEK 250 million in 2021 and is estimated to have a turnover of approx. SEK 350 million in 2022 with an operating profit of approx. 10%. Since 2012, 365zon has completed over 20,000 successful installations and with its nationwide installation capacity, the company has an average of approx. 6,500 solar energy installations annually on the Dutch residential market.

• On 22 June, Soltech acquired 65% of the shares in the Spanish solar energy company Sud Energies Renovables SL with access on 5 July. The company had a turnover of SEK 90 million in 2021 and the turnover is expected to increase sharply to approx. SEK 245 million in 2022, with an operating profit of approx. 8–10%. 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:
• Soltech's annual general meeting was held on 12 May. Among other things, it was decided that the board was given renewed authorization to decide on new issues of shares and/or convertibles and/or warrants, that the board and the CEO were granted discharge from liability for the past year and the election of a partially new board.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

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

• 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 been commissioned by 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.

*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/

Advanced Soltech has during a long time conducted discussions which several actors regarding a long-term financing of the Company’s operations in China. In recent years, the interest from local actors to finance the green energy transition has increased substantially.

The lender, BOCOM, is China’s fifth largest bank with a balance sheet larger than Nordea, SEB, Handelsbanken and Swedbank together. BOCOM was founded in 1907 and the bank’s stock is listed in both Hong Kong and Shanghai.

Advanced Soltech’s CEO, Max Metelius, comments:

– The positive decision from China Bank of Communication is a big step forward in our work to improve a financing structure that would entail large savings for the Company.

Soltech Energy's CEO, Stefan Ölander comments:

– As the largest stakeholder in Advanced Soltech, we are very pleased with this positive announcement. It will probably facilitate future financing with even better terms.

The solar energy company Soltech Energy Solutions helps large landowners, property owners and logistics operators with large-scale solar energy solutions and financing solutions for solar cells. Together with the sister company Takbyrån, they will help Logistic Contractor in the development of a logistics property in Borås where Hemtex will then operate.

– We are proud to help Logistic Contractor with a large roofing contract. It is a large-scale logistics facility company, and we look forward to getting started. It also feels great that our sister company then installs solar energy on the newly laid roof and by that offer a joint comprehensive solution, says Tobias Udén, CEO of Takbyrån.

Focus on sustainable logistics properties
Since 2004, Logistic Contractor has worked with developing and building logistics and industrial buildings in the Nordic region. The company is part of the Wästbygg Group, which in 2017 decided that the entire operation should be fossil-free by 2030 in the areas of electricity, heating, transport and waste. This means that Logistic Contractor focuses on environmentally certified construction and green options, such as solar energy installations.

– In these times, questions about energy and the environment is important topics and solar energy is one of our most important sustainable energy sources. Therefore, this collaboration is valuable to us in order to provide modern solar cell technology to our customers. It is an important part of our offer to continue to be a leader in developing and building sustainable logistics and industrial facilities, says Cristina Frigioi, Project manager at Logistic Contractor.

In an analysis from Aktiespararna, they comment on the value of Soltech's international acquisitions during the year, Spanish SUD Renovables and Dutch 365zon. 

Aktiespararna further highlights that both solar energy companies are profitable and will contribute to the group's margin from day one, but also that they operate in solar energy markets that is bigger than the Swedish one. Something that both creates a much greater growth potential and strengthens the group's overall strength and strategic endurance.

Read the complete analysis below. (in Swedish)

https://www.aktiespararna.se/analysguiden/nyheter/kommentar-soltech-energy-utlandsforvarvens-strategiska-betydelse

Soltech has an aggressive acquisition strategy in the solar energy industry, but also in the electrical engineering, roof/sheet metal and facade industries where the companies are transformed after acquisition by adding solar energy to the product range. An example of a company that has been transformed is the company NP Gruppen.

NP Gruppen became part of the Soltech group in 2019 and has since then both built up its own solar energy department and carried out several solar energy installations. Now the company has helped a housing association with reroofing, solar energy installations, energy optimization system and batteries for energy storage. Marcus Juhlin, solar energy expert at NP Gruppen, consider this assignment as a prestigious project.

– This is an assignment that we are very proud of. The fact that we were able to help the customer with everything from roofing and solar energy solutions to energy optimization systems and batteries shows that we can offer a comprehensive solution. This creates both short-term and long-term value for the housing association and the residents, says Marcus Juhlin, solar energy expert at NP Gruppen.

As of the new year 2022, the facade company Essa is part of the Soltech group. The Örebro-based company performs, among other things, high-quality exterior and interior glass solutions as well as solar energy facades for commercial properties.

Essa Glas will now carry out a complete renovation of an older facade which will be converted into a modern Curtain wall facade where part of the façade also will contain integrated solar cells in the facade. The solar cells are well adapted to harmonize with the design of the rest of the glass facade. The building-integrated facade solar cells will have an installed power of 110.96 kWp.

– Stadsbyggnadshuset in Örebro will get a modern facade and we are happy about the trust to help with a complete renovation. A part of the facade will also be a building-integrated solar cell facade that will create renewable solar electricity for the property owner, something that will create value, both today and in the future, says Ola Karlsson, CEO of Essa Glas.

A sustainable municipal property company
Örebroporten is a municipal real estate company that develops sustainable environments in Örebro and currently manages areas of approximately 375,000 square meters. The company works actively with sustainability and to create sustainable properties from an energy and environmental point of view, solar energy is a priority area.

– Örebroporten has a high sustainability ambition with this project. The solar cells are part of this. Through the facade change, Örebroporten gets a modern and appealing facade that also creates benefit for the property, says Mattias Waller, project development manager, Örebroporten Fastigheter AB.

Rams El was founded in 1993 and has since had a successful history and specializes in, electrical engineering, tele and network installations, service, and electrical support. Since the spring of 2021, the Gothenburg-based electrical engineering company has been part of the Soltech Group.

Rams El has had a successful 2022 with orders over SEK 120 million so far, which is approximately SEK 50 million more than what the company had in turnover in 2021. In addition to its core competencies, they have also been involved in several solar cell projects since joining the Soltech Group. The company has now won two new construction projects, which involve different types of electrical installations in two schools. Project manager Dan Schön talks about the hectic year and the new deals.

– It feels great that we have now been entrusted to carry out installations in two schools that are under construction. When we look back at the first part of 2022, we clearly see that the demand for electrical engineering, installation and solar cells is huge, and we feel confident that we are also well equipped to meet these demands. We look forward to roll up our sleeves and deliver world-class installations to our customers, says Dan Schön, project manager at Rams El.

Group events:

• Soltech has made its first international acquisitions by acquiring solar energy companies in both Netherlands and Spain. These companies are expected to provide Soltech with approximately SEK 2 billion in turnover during the years 2022 to 2024 with good profitability.

Dutch 365zon, with an expected turnover of SEK 350 million in 2022, was acquired 1 April. In June, Sud Renovables, a Spanish solar energy company with an expected turnover of SEK 245 million in 2022, was acquired. The acquisition of Sud Renovables also included the company's wholly owned subsidiary, Install Sud. A company focused on installation and assembly, which are important competencies for the solar energy industry.

• Soltech has made two additional acquisitions, Solexperterna and Trönninge El. Solexperterna will be part of the existing subsidiary Din Takläggare i Värmland and Trönninge El will be part of Provektor.

• The electrical engineering company TG:s El was acquired on July 1 and further strengthens the Group's expertise in electrical engineering and solar energy.

• In addition to acquisitions, the Group achieved organic growth of as much as 43 percent during the first quarter of 2022. Quarter two figures will be published on August 23.

– During the year, we continued to create good conditions for building a strong and sustainable business and we have now established the Group in two of the fastest growing solar energy markets in Europe. The political investments in more solar energy from the EU and the Swedish government also show that there is great faith in solar energy’s enormous potential, says Stefan Ölander, CEO of Soltech Energy.

The progress of solar energy in Europe and Sweden:

• The European Commission has presented a solar energy strategy that will help to phase out the Union's dependence on energy imports from Russia and increase the share of solar energy. The strategy means, among other things, that it will be mandatory to install solar cells on all new public and commercial buildings with an area larger than 250 sqm from 2026. The strategy also contains proposals to make solar cells mandatory on all new residential buildings from 2029 onwards.

• The war in Ukraine has exacerbated the energy crisis and several EU countries are now investing heavily in renewable energy to reduce Russian gas imports. The EU also aims to reduce imports of Russian gas by almost two thirds. The European Commission proposes an increase of the renewable energy target by 2030 from the current target of 32% to 45%.

• The Swedish government wants to appoint an inquiry to set requirements for installing solar cells on public and commercial buildings. Minister for Climate and the Environment, Annika Strandhäll, commented during the press conference:

– It is cost-effective to install solar panels on buildings that are under construction. All buildings that can contribute to increased electricity production must also do so, said Annika Strandhäll.

• The EU countries' solar energy production increased significantly in 2021 compared with the previous year. An increase of as much as 34%.

• As of 1/1 2022, the government opened up for local energy sharing, which means that buildings may be connected to local DC grids. This means that it will be possible for a property owner to share, for example, solar between his various buildings within the same property boundary, something that has not previously been permitted.