As announced earlier today, the Board of Directors has decided to appoint Soltech’s COO Patrik Hahne as the new CEO of Soltech Energy with start April 2, 2024.

Comment from Soltech’s CEO, Stefan Ölander:

– Five years ago, a new strategy was set with the goal of becoming one of the largest companies in the solar energy industry. The business has been focused on being a full-service supplier of solar energy and related businesses. This has been achieved through the acquisition of approximately thirty companies in the solar energy, roofing, electrical engineering, and façade industries. With Soltech’s support, we transform the traditional companies into sustainable companies of the future by adding solar energy solutions to their offering. With this strategy, Soltech has grown both organically and through acquisitions to be a group with approximately SEK 3,000 million in revenue, a positive EBITA and approximately 1,000 employees in three markets in 2023. It therefore feels like a natural time for a change of CEO. I have a strong belief in Soltech’s vision and strategy and my commitment to Soltech is long-term. I will remain as one of the largest shareholders in Soltech and my intention is to take on the role of Chairman of the Board if the Annual General Meeting entrusts me to take it on. I also hope to get the boards mandate to work part time with acquisitions, financing as well as brand and communication issues, in addition to the role as chairman.

Soltech has grown significantly through both acquisitions and organic growth over the past five years and is today a leading company in the solar energy industry. After a fast-growing acquisitionjourney and with new financial targets for the Group, communicated in January 2024, the time is suitable for a CEO succession.

Patrik Hahne, who has held the position of COO at Soltech for three years, has been appointed as the new CEO of Soltech effective April 2. Patrik has extensive experience in business management from a number of different CEO and board positions in Sweden, the Nordic region and Asia. Patrik is an engineer with extensive experience of business development in companies bordering green technology and entrepreneurship and has worked for almost twenty years in the Addtech Group, among others as CEO of several of the company’s subsidiaries. Patrik also has extensive experience of both acquisitions and onboarding, as well as of working to extract synergies between subsidiaries.

Comment from Soltech’s COO, Patrik Hahne:

– It is with humble gratitude and great commitment that I take on the assignment as CEO. I feel proud to have been entrusted to lead Soltech with its’ fantastic business and employees who have enabled the company’s growth journey. It feels especially inspiring to work with Soltech’s continued development with a strong focus on quality, full-service business solutions, and profitable growth, as well as creating value for our customers and owners, and being an important part of the green transition.

Patrik Hahne succeeds Soltech’s current CEO Stefan Ölander, who will remain as a board member of Soltech. Stefan has been the CEO of Soltech since 2018. Five years ago, a new strategy was set with the goal of becoming a leading company in the solar energy industry. Under Stefan’s leadership, the business has focused on becoming a full-service supplier of solar energy and related businesses. This has been achieved through the acquisition of some thirty companies in the solar energy, roofing, electrical engineering, and facade industries. With Soltech’s support, the traditional companies have been transformed into sustainable companies of the future by adding solar energy solutions to their offer. With this strategy, Soltech has grown both organically and through acquisitions to 2023 being a Group with approximately SEK 3 billion in revenue, a positive EBITA and with close to 1,000 employees in three markets.

Comment from Soltech’s CEO, Stefan Ölander:

– In January, we communicated new five-year financial targets for the Group, and it therefore feels like a natural time for a change of CEO. I have a strong belief in Soltech’s vision and strategy and my continued commitment to Soltech is long-term, and I will remain as a board member and as one of the company’s largest shareholders”.

Comment from Soltech’s Chairman of the Board, Mats Holmfeldt:

– Under Stefan’s leadership, Soltech has grown significantly through acquisitions and organic growth. The past four years have been challenging with the pandemic and its effects on the world around us and businesses, followed by increased geopolitical uncertainty and challenging macroeconomic conditions. It has been under tough conditions that Stefan and his team have built a leading Group with a strong diversified business and a turnover of almost SEK 3 billion in three countries. I would like to thank Stefan for his efforts and now look forward to Patrik continuing to develop Soltech’s business with a strong focus on quality, total solutions, organic growth, and profitability.

Soltech Energy Solutions is one of the Soltech Group’s companies within tech solutions such as advanced energy systems, energy storage and large-scale solar energy solutions. The company has now been commissioned to build another large battery park. The installation will be constructed in Falun and for the municipal energy company Falu Energi & Vatten.

– It feels great to be able to support Falu Energi & Vatten with a tech solution that will contribute with necessary frequency regulation and stabilization. Battery parks like this are an investment that will create value both for the energy company but also for the regional electricity grid, says Zen Dinha, business engineer at Soltech Energy Solutions.

A growing demand
In recent years, Soltech Energy Solutions has established itself as a market leader in large-scale battery parks. An area that is becoming an increasingly important element in the green transition to maintain the important balance between electricity production and consumption.
 
The company’s battery department has, among other things, helped other solar energy companies, municipal energy companies and the transport sector with the design and installation of energy storage as well as subsequent operational maintenance and service.
 
– The share of renewable electricity is increasing in the country, which is great. But with the expansion of unplanned electricity production, the need for stabilizing support services such as batteries also increases. We therefore see that the market for large-scale battery parks will grow further. Not least in combination with, and complement to, already established solar energy installations, says Zen Dinha.
 
Soltech Energy Solutions has, among other things, designed and installed the following battery parks:

• 14 MWh for Varberg Energi
• 2 MWh for Alight
• 4 MWh for Tekniska verken
• 2 MWh for Falkenklev Logistik
• 12 MWh for Nybro Energi 

In 2024, about 65,000 new solar installations are expected in Sweden, according to a new forecast from the Swedish Solar Energy Association. Despite a lower growth rate in the market, Soltech aims to further strengthen its position.

– The solar energy forecast from Svensk Solenergi shows more healthy market levels, and our strength with a well-diversified business is now increasingly evident. By growing in solar and tech and at the same time nurturing our subsidiaries’ original core competencies, we are well positioned and strongly equipped for the future, says Stefan Ölander, CEO of Soltech Energy.

SEK 8 billion with 10 percent profitability
Despite the challenging macroeconomic situation, the Group has a positive outlook for 2024 and the coming years. The transformation of traditional companies into solar companies continues and a strategic review of the ownership in Gigasun (formerly Advanded Soltech) is being conducted. As a market leader in large-scale battery parks and with more than 2,000 MWp in the solar park portfolio, Soltech continues to deliver on the stated strategy with a focus on profitability and organic growth.

– Soltech’s management’s main priority now and in the future is quality, profitability and growth. Both by continuing to develop our 22 companies, but also by continuously evaluating all measures that can increase shareholder value. We will continue to deliver on our long-term strategy with the aim that the Soltech Group has a turnover of SEK 8 billion with a profitability of 10 percent in five years, Stefan Ölander concludes.

Soltech Energy in brief:

• 22 operating companies in solar energy, charging and storage, electrical engineering, façade and roofing
• Approximately 1,000 employees in Sweden, Spain and the Netherlands
• Strong growth of 50 percent in the past year, from SEK 1.9 billion in 2022 to SEK 2.9 billion in 2023
• In 2023, Soltech had sales of SEK 2,904 million with an EBITDA of SEK 128.5 million
• Listed on Nasdaq First North with approximately 75,000 shareholders

Over the past three years, Soltech Energy Solutions has established a business area with a focus on the development of solar park projects, which in most cases also include batteries. The project portfolio includes building rights and land agreements, with the majority of the projects in the development phase being located in the SE4 electricity grid area.

Soltech’s focus when it comes to solar and battery parks is to develop projects, build and manage operation and maintenance. Not in owning the operational parks, with the exception of Soltech’s own battery park in Falkenklev and the solar park in Öringe, which are currently being built and which will contribute with stable revenue streams for Soltech for a long time to come. Therefore, in July 2023, the process was initiated to find an investor with the ambition to become a long-term owner of the rest of the solar park portfolio, and together with Soltech, further develop the portfolio through exploration and, above all, construction.

The development of the portfolio has, of course, continued during the autumn of 2023, and not least the planning and qualification of new projects has been very efficient during the period. As a result, the portfolio now amounts to more than 2,000 MWp, of which approximately 750 MWp is under permitting approval. This means that a significant part of the portfolio’s value is tied to future development, for which Soltech is not in direct need of increased financing. This also means that the mature projects that are in the phase close to construction, and which are best suited for divestment to external investors, now only constitute a small part of the portfolio.

In light of the development that took place during the autumn of 2023, Soltech no longer assesses that a divestment of a majority of the project portfolio, in a single transaction with one and the same investor, is the right way to maximize the value of the assets. Instead, the plan is to divest individual projects such as the solar park in Ramsjöholm that is already under construction, or smaller clusters of other projects, as they reach the right level of maturity. This gives Soltech the opportunity to retain future value potential through continued refinement of the early projects, while selective divestment of mature projects creates long and stable revenues over time from construction, operation, maintenance and support services such as large energy storage solutions.

– Soltech Energy Solutions has quickly built up a business area for solar parks that has a great financial value for the Group and which we now look forward to further developing over time together with several investors with different focuses in terms of degree of maturity and size of solar park projects. Our aim is that this will accelerate the green energy transition as well as Soltech’s growth and profitability in both short and long term, says Stefan Ölander, CEO of Soltech Energy.

CEO’s comments
In the fourth quarter of 2023, despite strenuous market conditions, Soltech reaches net sales of SEK 740.6 million and an EBITDA of SEK 58.1 million. Our cash flow is positive and our liquidity is strengthening. For the full year of 2023, we reach net sales of SEK 2,904 million, which is an increase of 50 percent, and EBITDA is improved to SEK 128.5 million from SEK -19.8 million, compared to 2022.

Our operational business is profitable
We are pleased to be able to maintain high sales and operational profitability for the fourth quarter of 2023, compared with a strong fourth quarter of 2022. Growth is not as aggressive as last year since we have focused on profitability for 18 months and no major acquisitions have been carried out since October 2022.

2024 will be a challenging year, but with the hope of future interest rate decrease and clear rules of the game in the solar market, the underlying need and demand for a green transition and hopefully a more stable global climate , I see upon the future with confidence.

Stefan Ölander
CEO

FOURTH QUARTER HIGHLIGHTS

• Net sales increased by 1% to SEK 740.6m (732.4)

• The Group’s organic growth was -3% (81)

• Adjusted EBITDA amounted to SEK 58.1 (52*) million. The adjusted EBITDA margin was 7.8% (7.1*%). EBITDA of SEK 58.1m (101.4)

• Adjusted EBITA amounted to SEK 41.5 (46.1*) million. The adjusted EBITA margin was 5.6% (6.3*)

• Earnings after tax for the quarter amounted to SEK -120.2 (-59.7) million. Earnings were affected by non-cash effects of write-downs and profit from participations in the associated company Gigasun of SEK 131.9 M (121.3)
• Cash flow from operating activities amounted to SEK 102.4 (-4.9) million. Cash flow for the quarter was MSEK 50.8 (26.7).
• Earnings per share before and after dilution amounted to SEK -0.91 (-0.46)

JANUARY – DECEMBER IN BRIEF

• Net sales increased by 50% to SEK 2,904.4m (1,931.4)
• The Group’s organic growth was 26% (57%)
• Adjusted EBITDA amounted to SEK 128.5 (-8.8*) million. Adjusted EBITDA margin was 4.4% (-0.5*). EBITDA amounted to MSEK 128.5 (-19.8)
• Adjusted EBITA amounted to SEK 75.4 (-41.5*) million. The adjusted EBITA margin was 2.6% (-2.1*%). EBITA of SEK 75.4m (-52.5)
• Earnings after tax for the period were SEK -165.9 (-224.2) million. Earnings were affected by non-cash effects of write-downs and profit from participations in the associated company Gigasun of SEK 156.2 M (114.1)
• Cash flow from operating activities amounted to MSEK 2.3 (-191.3).
• Cash flow for the period was MSEK -62.5 (-60.8)
  
• Earnings per share before and after dilution amounted to SEK -1.25 (-1.73)

Soltech has agreed on a new supplier of quarterly report analyses and will continue to collaborate with Inderes Oyj, which is currently conducting an initiation analysis of Soltech with completion in March. Thus, no report analysis performed by an external analysis house follows Soltech’s year-end report 2023.

Going forward, Inderes will conduct and publish quarterly analysis reports on Soltech.

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

Most recently, Camilla Weiner worked at the communications agency Hallvarsson & Halvarsson, as a senior advisor. Camilla has more than 25 years of experience in implementing change, leading and developing communication, investor relations, sustainability and branding in growth companies and listed multinational companies.

CEO Stefan Ölander comments:

– Soltech has grown significantly over the past five years and we have a need to strengthen the company’s communication and take a clearer grip on our IR efforts in particular. Camilla has a broad experience of communication and brand work in listed companies and I am very pleased to in March welcome Camilla to lead the continued development.

The shell of a building no longer only has to have an insulating effect. With integrated solar cells in the façade, the property takes advantage of more of the sunrays, while at the same time being given an aesthetically pleasing exterior.

A photovoltaic façade is also a suitable complement to a rooftop photovoltaic system. An example of the combination of roof-mounted solar panels and architect-designed solar cell façade can now be found at Fastpartner’s office property in central Frösunda in Solna.

– We are proud to have designed and installed this beautiful solar façade for Fastpartner. The façade gives the property a building envelope that is not only aesthetically pleasing but also generates renewable solar electricity. It also feels great that several Soltech companies have helped to create an energy-producing property, says Tommie Standerth, CEO of Fasadsystem.

The design of the solar façade is specially adapted to turn the solar panels into the best possible position, but also to ensure that the solar panels are adapted to the rest of the building in terms of design. In the future, the property’s operations will receive solar electricity from both the solar façade and the roof-mounted solar system that Soltech Energy Solutions previously installed.

–This property has now become a forerunner that other property owners and community developers should take a look at. If the aim is to create a cityscape at the intersection of design, sustainability and functionality, solar facades should be a matter of course for every major building project in the future, concludes Tommie Standerth.

Photo: Roger Spetz, Gatun Arkitekter

Over the past five years, Soltech has increased revenues from approximately SEK 50 million to almost SEK 3 billion (the period Q4 2022 to Q3 2023) and is today a Group with 1,000 employees in three countries. The Group's rapid and planned expansion, which has taken place through acquisitions of companies and high organic growth, has entailed major investments and Soltech has according to plan shown red figures during the period. Over the past four quarters, however, profitability has been in focus and has gradually improved.

In November 2019, Soltech communicated a five-year goal of reaching revenues of SEK 4.7 billion in 2024. Given that rapid growth through acquisitions is no longer the main focus, Soltech makes the assessment that the previous revenue target will not be reached in 2024. Soltech's new financial goal is to reach SEK 8 billion by 2028 with an increased profitability target from 8-10 percent to 10 percent (EBITA). During the five-year period, strategic acquisitions will be made when the right opportunity arises.

CEO Stefan Ölander comments on the market outlook and the new financial target:

– Solar energy and all its surrounding products and solutions, such as charging, storage and balancing services, are an obvious industry of the future, according to both national and international analyses. The Soltech Group's comprehensive offering with all these areas and our expertise in roofing, façade and electrical engineering has resulted in a strong position in our three markets. A position we look forward to strengthen to reach our new target of SEK 8 billion in revenues with 10 percent EBITA in 2028.

The energy of the future
Solar energy has taken on an increasingly growing role in the energy market and will continue to be part of the green transition and an important part of the solution to meet the global energy challenges. Solar has the potential to cover 25 percent of Sweden's energy needs in the long term, but today solar only accounts for 1-2 percent.

The market has great potential and will therefore grow strongly. A market where Soltech have a leading part and will continue to keep that position in the future.

The Dutch solar energy company 365zon has once again won a solar energy order for the largest homeowners' association in the Netherlands. The association organizes solar energy auctions to offer its members opportunities to obtain market-leading solar consulting and installation services.

The new contract means that 365zon expects to install solar panels on hundreds of houses during Q1 and Q2 of this year.

– It feels great that we have started 2024 with a good auction win. We are pleased to once again have been given the trust to assist our customers in their sustainability efforts, says Lars Buuts, CEO of 365zon.

– I want to express my congratulations to Lars Buuts and his team who have started this year with an impressive accomplishment. To get renewed confidence from a homeowners association proves that 365zon is considered as a very trustworthy company to cooperate with, says Stefan Ölander, CEO of Soltech Energy.