Soltech Energy Solutions is active in project development of large-scale solar energy solutions on roofs, land and tech solutions for property owners and major energy companies. The company is also part of various value-creating partnerships with the aim of combining skills, innovation levels and resources with the goal of accelerating the green transition. Something that Soltech Energy Solutions now doing with Ra Energy.

The implementation agreement begins with the companies jointly inventorying, planning and initiating technical feasibility studies regarding Logistea's property portfolio of nearly 70 properties intended for logistics, warehousing and light industry. The companies also intend to negotiate solar power purchase agreements, PPA (Power Purchase Agreement) with the tenants who, after installation of the solar cells, are enabled to buy the solar electricity at a favorable price.

– We are very much looking forward to this collaboration in which we can really make a difference. Our deep expertise within tech solutions such as large-scale solar energy and battery solutions combined with Ra Energy's cutting-edge expertise in electricity trading and frequency trading will create great value for Logistea and their tenants going forward, says Christoffer Caesar, CEO of Soltech Energy Solutions.

Large unused areas
Ra Energy currently has a framework agreement with Logistea that gives Ra Energy the opportunity to install and build solar energy solutions on their approximately 650,000 sqm roof. Now the process of filling the property roofs with solar panels will be intensified when Ra Energy and Soltech Energy Solutions collaborate.

– With Soltech's expertise and ability to quickly install large volumes of solar solutions and Ra Energy's existing and future pipeline of access to roofs and land, we are pleased and confident to see a strong, expansive and highly profitable collaboration onwards, says Stefan Hansson, CEO of Ra Energy.

Soltech Energy acquires and develops companies in the solar, roofing, façade and electrical engineering industries. The Group also makes various types of bolt-on acquisitions to develop, strengthen and create new opportunities for existing subsidiaries.

The roofing contracting company Icopal Entreprenad's branch in Helsingborg now becomes a part of the subsidiary Takrekond through an asset acquisition. With about 10 employees and a stable financial platform the acquisition of Icopal in Helsingborg will be the starting point for Takrekond's strategic expansion into Skåne.

– This is a perfect way to further develop the company and a support for Nisse Jansson and his team at Takrekond to expand their business to Skåne. We acquire a successful business from Icopal which, in addition to roofing contracting, will also be transformed to offer solar energy services in line with Takrekond's overall strategy. I would like to warmly welcome the new employees who will now form Takrekond i Helsinborg, says Stefan Ölander, CEO of Soltech Energy.

Icopal Entreprenad AB is a roofing company with operation in southern Sweden. The company is part of the BMI Group, which is Europe's largest manufacturer of flat and steep roofs. One of the company's nine local offices is now being divested when the Helsingborg branch becomes part of the Soltech Group.

Fasadsystem in Stenkullen has been part of the Soltech Group since 2020. They offer different types of solar facades and roof-mounted solar energy solutions, in addition to the core competence in façade contracting as well as glass and aluminium work.

Now the company has won several new projects. Among other things, Fasadsystem will help the construction group Skanska with the renovation of a large existing glass façade in Gothenburg. Högskolan Dalarna will get a black, shimmering solar facade of about 600 sqm and Remondis in Hovmantorp will get a large roof-placed solar cell installation. The rooftop solar cell installation will cover an area of close to 1,000 sqm and have an installed capacity of 258 kW.

In line with Soltech's transformation strategy, Fasadsystem has added solar energy services to its core competencies since becoming part of the Group. Something that is now once again evident when the new projects span traditional facade renovations to the installation of integrated and technically complex solar cell facades. The company's CEO Tommie Standerth is proud of the orders and of the company's broad competence.

– We are very pleased to have been entrusted with carrying out several new prestige orders. In addition to deepening our cooperation with companies such as Skanska and NCC, it feels great that we can offer a broad palette of competitive services. It is Fasadsystem's employees who make this possible and we look forward to starting the new projects, says Tommie Standerth, CEO of Fasadsystem.

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

Watch the interview here:
https://www.youtube.com/watch?v=ON1DXZlnnLU

CEO comment:

Soltech once again delivers both strong growth and strong profitability.
EBITDA is SEK 31.8 million for the quarter, which is an increase of SEK 76 million compared to last year and our organic growth remains high with 31% in the quarter. The improvement in profitability also results in a significantly higher cash flow from operating activities, which amounted to SEK 40.9 million in the quarter. Our focus on high quality solutions with specialist competencies in solar, roof, façade and electrical technology is starting to pay off and this is the third profitable quarter in a row.

We have a strong quarter behind us and are in the middle of an exciting fall with great business opportunities in all our segments. Not least in solar parks and battery system solutions, where we have many interesting projects coming .

SECOND QUARTER HIGHLIGHTS

• Total revenue increased by 70% to SEK 743.3 (437) million. Growth is driven by both acquisitions and organic growth

• The Group's organic growth was 31% (35%), adjusted for the effects of exchange rate fluctuations. All segments show good organic growth with continued high demand for services where the solar transformation contributes to new business opportunities

• EBITDA amounted to SEK 31.8 (-44.2) million, the profitability improvement is attributable to a continuous focus on profitability, hard work, synergies and improved purchasing processes

• Operating profit (EBIT) amounted to MSEK 14.4 (-46.7).

• Cash flow from operating activities amounted to MSEK 40.9 (-42)

• Earnings per share before and after dilution amounted to SEK -0.05 (-0.42)

SIGNIFICANT EVENTS DURING THE QUARTER:

• This is the Group's first financial report prepared in accordance with IFRS. Comparative figures have also been recalculated

• Soltech has on April 3, through its subsidiary Takorama AB, acquired 100% of the electrical engineering company Din Elkontakt i Kungälv AB

• Soltech's Annual General Meeting was held on May 11

FIRST HALF OF THE YEAR IN BRIEF

• Total revenue increased by 96% to SEK 1,426.3 (724.4) million. Growth is driven by acquisitions and organic growth

• The Group's organic growth amounted to 39% (39%), not affected by exchange rate fluctuations. All segments show good organic growth with continued high demand for services where the solar transformation contributes to new business opportunities

• EBITDA amounted to SEK 39 (-74.4) million, the profitability improvement is attributable to a continuous focus on profitability, hard work, synergies and improved purchasing processes

• Operating profit (EBIT) amounted to MSEK 4.9 (-83.8).

• Cash flow from operating activities amounted to MSEK 0.4 (-113)

• Earnings per share before and after dilution amounted to SEK -0.35 (-0.85)

Provektor is the Soltech Group's largest company in electrical engineering and has deep expertise in electrical installation and automation. Since becoming part of the Group, they have also deepened their solar energy expertise. The company has 13 locations in Skaraborg, Skåne and Halland and currently has approximately 150 employees.

Provektor will now construct its largest solar energy installation to date when Åkerholmen Lantbruk will get a rooftop solar solution of just over 5,200 square meters. The farm is run by Morgan and Camilla Dahlberg and is home to 750 dairy cows and another 1,150 young animals. According to Morgan, the choice of energy solution fell on solar cells was an obvious choice. Both in terms of smart use of unused space but also in terms of maintenance.

– Animal welfare and planning are key for us. I want an energy solution that doesn't take my time and requires minimal maintenance. Since we need our land for grazing and grain, a rooftop solar solution is therefore a good fit. We also have great confidence in Provektor and it will be fun to get our own solar energy solution, says Morgan Dahlberg, farmer.

Agriculture with great solar conditions
Agriculture often has good conditions for solar panels with large unused roof areas. But with milking machines, coolers, fans, lighting and agricultural machinery, an electricity supply that can cope with the high electricity consumption is also required. Something that Provektor has now been entrusted to provide Åkerholmen Lantbruk with.

– This project is very exciting for us. Åkerholmen has perfect installation conditions with large metal roofs with suitable slopes. In addition, we get to work in a beautiful environment and we looking forward to ensuring that agriculture can utilize the sun's rays onwards, says Johan Svensson, Project Manager, Provektor.

Soltech has a growth strategy with acquisitions in the solar, roof, façade and electrical engineering industries. Something that builds a group with cross-industry competencies. The goal is then for the companies create synergies such as business advantages for the companies but also predictability for the customers. Something that has now happened when Soltech's two companies based in Dalarna collaborate in new joint deals in Rättvik and Avesta.

The Soltech companies that will carry out the work are Takab i Falun and Borlänge-based E-Mobility. Firstly, Takab will carry out roof renovation on all buildings, including sheet metal work. When the new roofs are in place, E-Mobility will then install approximately 1,500 sqm of solar panels distributed over the six buildings. For the tenant-owner association in Rättvik, E-Mobility will also install smart IMD solutions connected to the solar panels that reduce the total electricity cost for all residents.

– These deals are clear examples of the benefits that are created when our companies work together. Takab i Falun, which has deep roofing expertise but now also solar energy expertise, starts the work, after which Martin Götesson and the team at E-Mobility install solar panels and associated IMD solutions. The customer gets talented entrepreneurs who also have the ambition to collaborate throughout the project, which makes everyone a winner, says Stefan Ölander, CEO of Soltech Energy.

*IMD solutions linked to solar energy solutions create smarter subscription solutions and lower the total electricity cost for all tenant-owners

Soltech Energy Solutions is the Soltech Group's operating company in advanced energy systems, energy storage and large-scale solar energy solutions. The company has now begun construction of what will be the Soltech Group's own solar park of approximately 70,000 square meters in Getinge, just outside Halmstad.

– It feels great and exciting that we are now starting construction for Soltech's own solar park. In addition to the fact that it is beneficial business and that it will contribute to the Group reducing its climate footprint, the solar park will contribute with about 5.9 GWh of green electricity to the local area and southern Sweden, says Fredrik A Svensson.

Solar energy and increased biodiversity
The land where the park is established is planned to be managed through mowing and/or grazing, which creates a dynamic living environment for flora and fauna. The solar park will create conditions for increased biodiversity in the area, including sowing of flowering meadow plants and the placement of nests for pollinators and various insect hotels. In this way, pollinators and species that are currently threatened in many parts of Sweden will benefit and thrive in the area.

– For us, it is both important to contribute to the green energy transition but at the same time also protect the surrounding nature and the environment. Through our process, we both respect the place we operate in and contribute to the area's future electricity supply. We are proud and looking forward to constructing a solar park that will contribute to electricity for many households in Halland and that also protects nature and diversity in the area, says Fredrik A Svensson.

Here is more information about Öringe Solpark and how it works when a solar park is established (in Swedish): https://soltechenergysolutions.se/oringe-solpark/

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

Soltech acquired 70 percent of Takorama on March 2, 2020, at the time Takorama had a turnover of approximately SEK 25 million. The remaining 30 percent of the company is now being acquired according to plan. This means that Soltech now owns 100 percent of the company, which during its time in the Soltech Group has been transformed by adding solar energy solutions, electrical technology and battery solutions to its core business within roofing and waterproofing.

– Takorama has gone from being a traditional roofing company to becoming a solar-roof company and, since the additional acquisition of Din Elkontakt this spring, now also has deep expertise in electrical engineering. I am therefore very pleased that we are acquiring the remaining part of the company as part of the work to further strengthen their transformation journey, says Stefan Ölander, CEO of Soltech Energy.

Transformation into a solar-roof company
Takorama is a leading company in the roofing industry in western Sweden and with over 30 years of experience in the industry, they are a well-known player in the region. Since Soltech acquired the company, they have developed a solar energy offering and have helped both old and new customers with roof-placed solar energy solutions, for instance Swedish Mässan Gothia Towers. Soltech invests in its subsidiaries and in April 2023, a bolt on-acquisition was made to Takorama when Din Elkontakt became part of the company. This bolt on-acquisition has made Takorama a full-service company with a complete offering in roofing, solar, battery technology and electrical technology.

– Now we have even better opportunities to sharpen our solar energy offering in combination with roofing and electrical technology. The fact that we are part of the Soltech Group gives us great competitive advantages and we look forward to our future together, says Micke Norrby, CEO of Takorama.

Over the past two years, Soltech Energy Solutions has established a business area focusing on the development of solar park projects. The project portfolio developed includes building rights and land agreements and the majority of the projects are located in the SE4 area. In order to further develop the projects with permit approval and later construction, very large investments are required.

Soltech's focus regarding solar parks is to develop projects, build and manage operation and maintenance. Focus is not ownership of solar parks, with the exception of Soltech's own solar park in Öringe, which is currently being built. Therefore, the goal is to find investors with the ambition to become long-term owners of the solar parks and together with Soltech, further develop the portfolio through contracting and construction. In addition to the existing portfolio, Soltech continues to search for and secure new projects on an ongoing basis.

A transaction such as the one Soltech Energy Solutions is planning with the help of an external financial advisor, would mean that the solar park projects in the portfolio can be made ready for construction faster with the help of external financing and external co-ownership. When the projects then gradually become ready for construction, Soltech has the exclusive right to build. This means that the solar park portfolio would constitute a significant secured business opportunity.

The benefits for Soltech are many. Soltech does not need to finance the large-scale project development of the solar park portfolio itself via a new share issue or take up large loans. The plan is instead to realize shares of the portfolio in the near future and then have the opportunity for long and stable revenues over time from construction, operation, maintenance and support services such as large battery solutions.

Currently, details about the time plan or valuation of the portfolio cannot be disclosed as it is too early in the process. But in order to begin the work of finding investors, the news must be shared with the public market.

– Soltech Energy Solutions has quickly built up a business area for solar parks that has great financial value for the Group and that we look forward to developing together with one or more investors. Our goal is for this to accelerate the green energy transition as well as Soltech's growth and profitability, says Stefan Ölander, CEO of Soltech Energy.