COPENHAGEN/STOCKHOLM, 8/12 – Axpo has facilitated a long-term transaction of renewable electricity produced by Soltech Energy Solutions and sold to the Egmont media group. In collaboration the parties have signed a seven-year corporate power purchase agreement for the construction of an 11 MW solar park, developed by Soltech Energy Solutions. The solar park is planned to be operational in the summer of 2024 and will be located in southern Sweden, near Falkenberg.

The installation will annually add around 11 GWh of renewable electricity to the grid, which corresponds to the average consumption of approximately 1,200 Nordic households*. Egmont is the sole purchaser of the renewable electricity, and it will cover 50% of Egmont’s electricity consumption in Sweden and Norway. Egmont has previously entered a PPA for a Danish solar park that started operations mid-2023 and will cover more than 90% of Egmont’s electricity consumption in Denmark.

“When we set our goal of 100% green electricity from 2022, we also wanted to work towards a renewable electricity supply that can make a difference to the energy sector, and to use our size as a group to realize it. This ambition has led us to the unique and exciting collaboration with Axpo and Soltech Energy Solutions. We are proud to be a leader in the media industry when making this type of investments in renewable energy. This agreement is an important part of our ‘Go Greener’ journey,” says Raphaëlle Stewart, Sustainability Manager at Egmont.

Axpo Sverige AB Senior Originator David Eickhoff adds: “Collaboration is key to the energy transition and we’re very happy to announce this success story during a challenging time for the energy markets. Soltech Energy Solution’s green power generation, Egmont’s commitment to a green electricity procurement, and Axpo’s solutions for hedging and trading of energy were all equally important to this deal. By using our expertise and long experience in PPAs we were able to structure the deal to fit the needs of all parties involved.”

“Soltech Energy Solutions is proud to construct this solar park that will contribute to the green transition in Sweden and Norway. The joint project with Egmont and Axpo, both with high sustainability ambitions, feels truly rewarding. Collaborations such as this one serve as a good example for substantial and crucial investments in large-scale solar installations,” says Fredrik A Svensson, Director Utility PV, Soltech Energy Solutions.

Facts

• From 2022, Egmont has set a goal to cover its electricity consumption with 100% green electricity, i.e., electricity from renewable sources.
• Axpo has signed a PPA with Egmont and Soltech Energy Solutions for the construction of a solar park in southern Sweden. Egmont is the sole purchaser of the renewable electricity certificates from the solar park, which will supply an estimated 11 GWh of electricity per year.
• The collaboration between Egmont, Axpo and Soltech Energy Solutions is from the offset for a seven-year period and will cover approximately 50% of Egmont's electricity consumption in Norway and Sweden.
• The solar park will cover an area equivalent to approximately 19 full-size football pitches.
• The term “PPA” stands for Power Purchase Agreement, and it is a contract commonly used in the solar energy industry. A Power Purchase Agreement is a legal agreement between a solar project developer and a buyer (often a utility or business) for the sale of electricity.

* Note: Based on data from Eurostat and national population statistics.

About Egmont
Egmont is a leading Nordic media group focused on storytelling, journalism, and technology. Egmont creates content across media, such as films, TV, cinemas, computer games, magazines, books, education, e-commerce, and agencies. Egmont is behind Story House Egmont, Nordisk Film, TV 2 in Norway, Lindhardt & Ringhof and Cappelen Damm. Egmont is a foundation that donates approx. 100 million DKK every year to support children and young people at risk.

About Axpo
Axpo is Switzerland's largest producer of renewable energy and an international leader in energy trading and the marketing of solar and wind power. Using cutting-edge technologies, Axpo innovates to meet the evolving needs of its customers in over 30 countries across Europe, North America and Asia. Axpo Nordic is part of the Axpo Group. The focus of its business activities in the Nordics is on long-term power supply and purchase agreements. In addition to its PPA business, Axpo Nordic develops bespoke products and associated services for its customers, such as retailers, industry, and producers.

About Soltech Energy
Soltech is a comprehensive supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. Soltech Energy Sweden AB (publ), is traded on the Nasdaq First North Growth Market under the short name SOLT and has approximately 80 000 shareholders. The Company’s Certified Adviser is Carnegie Investment Bank AB (publ). For more information see: https://soltechenergy.com/en/

Soltech Energy Solutions is operating in large-scale solar energy solutions and tech solutions such as battery storage for property owners, landowners and major energy companies. The company has over 30 years of experience in creating profitable and sustainable electricity production for commercial properties, not least in the growing logistics property segment.

Soltech already has a solar energy collaboration with Logicenters and has installed a number of solar energy solutions on their properties in Stockholm, Jönköping and Borås for instance. The parties have now signed a new agreement for a roof-mounted solar installation at what will be Frigoscandia's new cooling storage facility in Hyllinge. With an installed capacity of 3.5 MW, the solar panels will produce as much annually as the annual household electricity consumption of about 500 houses.

– It is very gratifying that Logicenters has continued confidence in us, which will now result in another large-scale solar energy installation. It is a logistics property owner with high sustainability ambitions and who sees solar installations like this as an obvious choice, says Elin Höglund, Commercial Manager at Soltech Energy Solutions.

– It feels great that we, together with Soltech and Frigoscandia, have reached the finish line with the construction of another large solar installation. Skåne is the area in Europe with the lowest electricity production in relation to consumption, so it's especially important that we can be involved in supporting the electricity grid in this area – as the property houses a cooling storage, virtually all electricity will be used directly in the building, says Jon Malmsten, Solar Energy Manager at Logicenters.

*household electricity consumption calculated on 5,000 kWh/year.

Soltech Energy Sweden AB (publ) has entered into an agreement with Carnegie Investment Bank AB (publ) regarding the position as Certified Adviser. Carnegie Investment Bank AB (publ) will take over as Certified Adviser on [November 30, 2023].

Annelunds Tak has been part of the Soltech Group since 2020 and offers various types of roofing contracts, sedum roofs and solar installations. A combination that pays off. The strategic investment to transform with the help of Soltech to also offer solar has led to an rapidly increasing turnover. In 2022, sales ended at a record hight of SEK 61 million.

The company has won several new projects and will now help Perssons Träteknik with the construction of a large-scale solar installation, roofing and a green sedum roof in Vårgårda. In addition to the benefits of solar panels and a newly installed roof, sedum cultivation will help the roof to more easily absorb rainwater and capture carbon dioxide.

Annelunds Tak will also assist in the construction and property development Group Skeppsviken with a large roofing project in Mariestad of approximately 50,000 sqm, which will be the company's largest roofing project to date. CEO Mikael Markusson comments on the new business and the advantages of combining solar panels and sedum roofs.

– The investment in solar energy in combination with large-scale roofing has been a successful choice for us. It is also pleasing that one of the projects combines sedum plants with solar panels. Something that creates a fantastic combination that reduces the property owner's electricity bill, increases biodiversity and cleans the air at the same time, says Mikael Markusson, CEO of Annelunds Tak.

Soltech Energy Solutions is the Soltech Group's operating company in advanced energy storage and large-scale solar energy solutions. The company is now investing heavily in helping property owners and industrial companies with hybrid plants that consist of both solar energy solutions and energy storage.

In the autumn of 2023, the company will start the collaboration with Entelios and Pareto Alternative Investments. Entelios is one of the Nordic region's leading companies in innovative electricity trading and ancillary services. Pareto Alternative Investments is a leader in asset management and manages approx. NOK 25 billion. in real estate and renewable energy, and has previously raised capital of several hundred million SEK to a solar energy fund. Now they are merging their offerings with Soltech's expertise in advanced energy systems, business models such as Energy as a service and renewable tech solutions.

– We are pleased with the partnership with Entelios and Pareto Alternative Investments, which are two very competent partners. Together with our Energy as a Service business model, we are developing a strong offering that can replace traditional ways of investing in green energy solutions in times of economic uncertainty. The collaboration will create great value for our customers and enable predictable sustainability investments in times that are otherwise characterized by unpredictability, says Christoffer Caesar, CEO of Soltech Energy Solutions.

Innovative electricity trading and financing
The parties in the collaboration will jointly offer property owners and industries design, installation, electricity trading models, operation and financing of large-scale solar energy and energy storage solutions. The customers themselves do not have to make the initial investment or operation of the technical solutions, only sign an electricity purchase agreement.

– We look forward to developing a long-term collaboration for innovative energy solutions that provide significant added value for the parties' existing operations and increased competitiveness. Together, we will create synergies by connecting technology, customer needs and the market. With a common goal to reduce the customer's energy consumption, climate impact and generate new revenue streams through support services, says Mattias Harrysson, Head of Energy & Sustainability Services, Entelios.

– Pareto Alternative Investments already has solar energy as an explicit focus area through, among other things, the Pareto Solar fund. The fact that we are now joining forces with Entelios and Soltech, both of which are market leaders in their respective fields, will positively contribute to our work to establish more large-scale and profitable solar installations in the Nordic region, says Jonathan Barfod, Investment Director and Partner at Pareto Alternative Investments.

Soltech Energy's CEO, Stefan Ölander, comments on the report for the third quarter of 2023 at Nyhetsbyrån Direkt

Watch the interview here: https://www.youtube.com/watch?v=zJ33Lbwj5mc

CEO comment:

Soltech delivers another quarter with strong growth and a strong improvement in profitability. We reached SEK 741 million in net sales and an EBITDA of SEK 32.8 million, which is an increase of 54% in net sales and close to SEK 80 million in profitability improvements compared to the third quarter of 2022. This is also our fourth consecutive quarter with improved profitability.

Even in these challenging times, we are strengthening our position and deliver net sales of SEK 2,164 million during the first nine months of the year. The fact that our organic growth for the quarter amounts to 38 percent is proof that our entrepreneurs and employees thrive and develop in the Soltech Group, something we are very proud of.

THIRD QUARTER HIGHLIGHTS

• Net sales increased by 54% to SEK 741.0 (480.1) million. Growth in the quarter was mainly driven by organic growth.

• The Group's organic growth, adjusted for exchange rate fluctuations, amounted to 38% (44%).

• EBITDA amounted to SEK 32.8 (-46.8) million, the improvement in profitability is attributable to a continuous focus on profitability, synergies and improved purchasing processes. EBITDA includes revaluation effects of earn-outs of SEK 7.3 (0) million.

• Operating profit (EBIT) amounted to SEK 14.6 (-68.2) million.

• Cash flow from operating activities amounted SEK -100.6 (-33.3) million.

• Earnings per share before dilution amounted to SEK -0.01 (-0.76) and after dilution to SEK -0.01 (-0.61).

SIGNIFICANT EVENTS DURING THE QUARTER:

• On July 5, Soltech acquired 100% of the electrical engineering company Tekniska lösningar i Täby AB.

• On July 11, Soltech acquired the remaining 30% of the subsidiary Takorama, which after the acquisition is a wholly owned subsidiary.

• On September 1, Soltech has, through its subsidiary Takrekond, acquired Icopal Entreprenad in Helsingborg, which becomes part of Takrekond.

INTERIM PERIOD JANUARY 1 – SEPTEMBER 30

• Net sales increased by 80% to SEK 2,163.8 (1,199) million. Growth is driven by organic growth and acquisitions.

• The Group's organic growth, adjusted for exchange rate fluctuations, was 41% (39%). All segments show good organic growth with continued demand for services where the solar transformation contributes to new business opportunities.

• EBITDA amounted to SEK 71.9 (-121.2) million, the improvement in profitability is attributable to a continuous focus on profitability, synergies and improved purchasing processes. EBITDA includes revaluation effects of earn-outs of SEK 8.3 (0) million.

• Operating profit (EBIT) amounted SEK 22 million (-151.8).

• Cash flow from operating activities amounted SEK -100.2 million (-146.5).

• Earnings per share before and after dilution amounted to SEK -0.32 (-1.59).

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

With over 30 years of in various roof solutions, the Ljungskile-based Soltech company Takorama Elteknik has solid industry experience. In recent years, the company has also developed a solar energy and electrical engineering department in line with Soltech's transformation strategy, adding solar energy expertise to the core business. As a result, the company now offers complete solutions in solar energy, energy storage, roofing and electrical engineering.

The hybrid assignment for Catena includes a re-roofing of approximately 2,000 square meters and an approximately 5,000 square meter solar energy solution. Catena has also commissioned Takorama Elteknik to design and install a 1.5 MW energy storage facility adjacent to the property in order to initially be able to activate support services for the frequency market. The set-up around the energy storage will be a stand-alone system installed in connection with new electrical systems and new switchgear.

In the long term, there is also the possibility of converting the battery installation directly to the property to create additional added value. For example, peak shaving, which is a technology that evens out sudden peaks in electricity consumption and limits the load on the electricity grid.

– It feels great to have been entrusted by Catena to assist with a sustainable overall solution. This type of hybrid assignment, where we work with our customers to combine different solutions, is something we have been developing for a long time. In this we get confirmation that our broad expertise is in demand and creates security and simplicity for our customers. We look forward to contributing to a sustainable logistics property that utilize the sun and and supports the electricity grid, says Pierre Sahlin, Head of Solar Energy at Takorama Elteknik.

Developing sustainable logistics properties
Catena is a listed property company that develops and manages logistics facilities in Scandinavia's metropolitan regions on a long-term basis. The property portfolio currently consists of more than 130 properties in Sweden and Denmark.

An important part of Catenas sustainability work consists of developing energy-smart properties. Therefore, green energy solutions such as solar and energy storage are growing areas for the company.

– The combination of solar energy and energy storage is becoming increasingly important in the development of sustainable logistics properties. We are very much looking forward to working with Takorama Elteknik in connection with the solar and battery installation for one of our properties in Borås. Although solar energy investments in the logistics property industry are still partly hampered by regulations, we maintain that the real estate sector has great potential and that significant energy investments are the way forward, says Jonas Arvidsson, Regional Manager at Catena.

The Dutch solar energy company 365zon are one of the Netherlands' largest solar energy companies. They are focused on solar and charging solutions for the consumer market, housing associations, pension funds and member and consumer organizations for homeowners and tenant owned apartments.
 
On behalf of several pension funds, Achmea Real Estate that manages approx. 25,000 homes, wants to offer its tenants of single-family and multifamily homes to offer solar panels on the basis of a free contribution from residents.

Until the end of 2025, they want to offer solar panels to thousands of homes. An assignment 365zon now have been entrusted for 2023. The tender participants who were chosen for the bid were selected by, pricing, sustainability, customer journey, delivery reliability and quality to name a few. 
 
– It feels great to win such a big tender among different competitors. We are looking forward to helping Achmea Real Estate harnessing the sun's potential and helping house owners become renewable energy producers in the coming years, says Lars Buuts, CEO of 365zon. 
 
– We are thrilled that our subsidiary secures yet another major solar energy deal. This accomplishment not only demonstrates their commitment to sustainable energy solutions but also showcases 365zon’s ambition in creating a brighter, cleaner future for residents in the Netherlands, says Stefan Ölander, CEO of Soltech Energy.
 

E-Mobility is the Soltech Group's company with specialist expertise in large-scale charging stations for different types of electrical vehicles and highly efficient charging infrastructure. The company has signed an agreement with the Group Hydroscand AB for the expansion of a large scale charging infrastructure at their stores in Sweden.

Starting in the autumn of 2023, E-Mobility will design, install and create an own digital portal for approximately 200 chargers connected to Hydroscan's store properties in over 75 locations in Sweden.

– We are proud to contribute to Hydroscand's sustainability work in Sweden through our expertise in scalable charging infrastructure and smart charging systems. The 200 charging points will create great value for their customers and employees and, not least, contribute to the transition to a sustainable society, says Martin Götesson, CEO of E-Mobility.

International family business with sustainability ambitions
The family business Hydroscand was founded in Stockholm in 1969 and is today a market-leading supplier of hoses and pipe components in Scandinavia. In Sweden, Hydroscand has more than 75 stores and a nationwide mobile hose service known under the brand name SlangExpress. The collaboration with E-Mobility will now be an important part of the company's focus on sustainability and future-proofing its stores.

– By installing charging points at our stores, we will make it easier for our customers and employees to choose a more environmentally friendly transport solution. We are happy about our collaboration with E-Mobility and look forward to contributing to a more sustainable future, says Pontus Nygren, CEO of Hydroscand AB.