Soltech Energy’s CEO Stefan Ölander comments:

“This is a great opportunity for Soltech to invest in the world’s largest solar energy market at a low valuation. Tuesday’s announcement that JiangSu Leasing is investing approx. SEK 820 million in a sale and leaseback solution was very important due to Advanced Soltech’s situation with maturing bonds corresponding to almost SEK 1 billion at the beginning of July. Through this fully subscribed issue, the new financing solution is made possible, which means SEK 61 million in lower financing costs annually for Advanced Soltech. This will help them develop their business even further.”

Compensation issue in August to all shareholders in Advanced Soltech

The Board of Advanced Soltech has also decided to carry out a compensation share issue of approximately SEK 99 million with the same subscription price (*10 SEK per share) as the directed new issue to compensate other shareholders for the dilution that the directed new issue entails.

Full participation in the event of a completed directed new share issue and compensation issue would mean a total addition of equity of approximately SEK 240 million.

Advanced Soltech’s CEO Max Metelius comments:

“With the new financing in place, consisting of a sale and leaseback financing agreement in China of approximately SEK 820 million supplemented by this directed new issue, we have reduced interest costs, reduced the currency risk and created a stable financial platform that significantly will improve our result. Now we can focus on growth again.”

Here is Advanced Soltech’s more extensive press release: https://advancedsoltech.se/investerare/pressmedalenden/

* SEK 10 corresponds to a volume-weighted average price for the Company’s share on the Nasdaq First North Growth Market during the last 10 trading days up to and including June 13, 2023 (“VWAP”) which amounts to SEK 9.98. The board therefore considers the subscription price to be market-based

Summary

Advanced Soltech Sweden AB (publ) and its relevant subsidiaries (the "Company"; the "Group" or the "Group Companies" depending on the context) have entered into an agreement with the Chinese company JiangSu Financial Leasing Co., Ltd. ("JiangSu Leasing") to be part of the refinancing of the Company's outstanding bonds. The financing is a so-called sale and leaseback financing that provides the Group with 541 MCNY (approximately SEK 820 million) ("sale and leaseback financing").

In addition and as part of the refinancing of the Company's outstanding bonds, the board has initiated a process aimed at carrying out a directed new share issue of approximately SEK 140 million based on the authorization from the annual general meeting on May 19, 2022. The refinancing through the sale and leaseback financing, and a successfully completed targeted new issue, is estimated to reduce costs by SEK 19 million on a quarterly basis compared to Q1 2023 and compared to the fiscal year 2022, costs will decrease by SEK 61 million on an annual basis.

Due to the refinancing process of the Company's outstanding bonds taking longer than expected, the Company has updated its financial target to reach 1 GW of installed capacity by 2026, from 2024 previously.

The company assesses that the current connected and revenue-generating installations of approximately 250 MW, supplemented by the completion of installations under construction of 41 MW, would under current conditions yield annual revenues of SEK 274 million.

CEO Stefan Ölander comments:

– It is great news for both Soltech Energy and Advanced Soltech that they are able to refinance their assets on favorable terms. The financing solution will significantly increase the their profitability, create good conditions for continued profitable growth and reduce the currency risk. It is obvious for us as a major owner to participate in the issue, which will strengthen the company and increase the value of our holding, says Stefan Ölander, CEO of Soltech Energy.

ASAB's CEO Max Metelius comments:

– The refinancing in China of the outstanding bonds is very positive. We will achieve lower interest and tax costs, while largely eliminating the currency risk. With the new financing, we have limited the requirement for security for the current financing, thereby creating a good financial platform to achieve our goal of 1 GW of installed capacity, while laying the foundation for continued profitable growth, comments Max Metelius, CEO, Advanced Soltech.

*JiangSu Leasing is one of China's major leasing companies, founded in 1985 and listed on the Shanghai Stock Exchange since 2018. The five largest owners are JiangSu Communications Holding Co Ltd (a provincial state-owned company that invests in infrastructure), Bank of Nanjing Co Ltd, Jangsu Yangtze Highway Bridge Co Ltd, BNP Paribas and the International Finance Corporation (part of the World Bank). For more information about JiangSu Leasing please see https://www.jsleasing.cn/en/.

Advanced Soltech's more extensive press release: https://advancedsoltech.se/investerare/pressmeddelanden/

E-Mobility is the Soltech Group's company with specialist expertise in large-scale electric car charging installations and highly efficient charging infrastructure. The company has now entered into an agreement with Voltiva, an operator in on-site electric charging, for up to 3,000 charging points in connection with both commercial properties and apartment buildings in several counties. As the growth of electric cars will continue to grow extensively in the next ten years, CEO Martin Götesson sees this type of agreement as important to be able to meet increased demand.

– This agreement will make a difference for many property owners in Gävleborg, Uppsala and Dalarna counties, which motivates us greatly. The fact that we also get to do it with Voltiva, who is a highly innovative partner, makes this even more interesting. We want to thank Voltiva for the trust and look forward to designing intelligent and powerful solutions for both property owners and their tenants, says Martin Götesson, CEO at E-Mobility.

Three million rechargeable passenger cars by 2030
The electric car market has grown rapidly over the past three years. Since 2020, the market has tripled and forecasts from Power Circle shows that Sweden will have around three million rechargeable passenger cars in 2030, compared to around half a million today.

Offering quality charging options will therefore become increasingly important and is already seen as a hygiene factor for commercial property owners. Not least since approximately 80–90 percent of charging sessions take place at home or at the workplace. Mikael Ring, CEO at Voltiva, sees long-term agreements like this as the way forward for the charging industry and an important factor for the green transition.

– The agreement with E-Mobility is the start of a long-term collaboration that will create great benefits for our customers and their customers. It is a very competent partner and the fact that we signed a longer agreement makes it possible for us to grow together. Now we will make sure to help the country's property owners to be better equipped for an electrified future, says Mikael Ring, CEO at Voltiva.

The Soltech Group's strategy to acquire and then develop and transform the acquired companies is successful. By adding solar energy expertise to the acquired companies in the roof, facade and electrical engineering industries, both competitive advantages are created but also a renewed offer that is appreciated by the companies' existing customers.

This was proven not least when the roofing company Takrekond in Växjö & Kalmar was trusted to help the real estate company Nyfosa with both roofing contracting and solar energy solutions during the past year. A trust that has now also resulted in another solar energy installation on one of Nyfosa's industrial properties in Växjö.

– We are very happy to have received renewed trust from Nyfosa, with whom we have had a good collaboration for a long time. This is a proof that we have hit the right spot with our solar energy development and are slowly but surely future proofing our business and creating sustainable solutions, says Nisse Jansson, CEO at Takrekond.

Half the turnover is from solar energy
Since Takrekond was acquired by Soltech Energy, turnover has tripled and approximately half of turnover today consists of solar energy services. Furthermore, Nisse Jansson is convinced that roofing companies that want to gain continued trust from previous customers, and also be attractive to new customers, must be able to offer a combination of roofing contracting and solar energy services.

– The implementation of solar energy knowledge has, to say the least, yielded good results for Takrekond, although of course there are challenges when a classic roofing company develops into also becoming a solar energy company. But the solar transformation is progressing strongly, and it is great when former roof customers of our companies now also get in touch to get help with solar installations, says Stefan Ölander, CEO of Soltech Energy.

Soltech acquires and develops companies in the solar, roof, facade, and electrical technology industries. Through the Group's transformation strategy, solar energy is then added to the companies' core competencies.

This strategy has been successful for the Herrljunga-based roofing company Annelunds Tak, which is now a solar roofing company that offers both roofing contracting and solar energy installations. This is not least reflected in the turnover, which has more than doubled since the company started its solar energy focus and with good profitability. CEO Mikael Markusson and his team have now won another combined roof and solar energy deal.

– Projects, such as this, that include both solar and roofing demonstrate our strength in providing both services for our customers. We want to thank Byggarvid for the trust and look forward to developing a sustainable property together, says Mikael Markusson, CEO of Annelunds Tak.

BREEAM-SE* certification and solar
Annelunds Tak has an established and long going collaboration with Byggarvid, which is a construction company that carries out construction contracts, project development and housing and that has a stated ambition to build properties that move the society in a sustainable direction. The production facility in Nässjö will have an area of 22,000 square meters and will be environmentally certified according to BREEAM-SE level Excellent, whereupon a solar energy solution was a given choice.

– It feels good that we will develop a property with high environmental performance. We have had great cooperation with Annelunds Tak in the past, so it feels safe that they will help us with both roofing and the installation of a large solar energy solution, says Emanuel Elofsson at Byggarvid.

* BREEAM (BRE Environmental Assessment Method) is an environmental certification system from Great Britain, developed and administered by the Building Research Establishment (BRE). BREEAM is one of the oldest environmental certification systems and the system has been used to certify over 500,000 buildings. BREEAM has existed in revised versions since 1990 and is the most widespread of the international systems in Europe. Sweden Green Building Council has adapted BREEAM to Swedish conditions since 2013.

Determination of income statement and balance sheet
The annual general meeting approved the income statement and balance sheet for the parent company as well as the consolidated income statement and consolidated balance sheet for the business year 2022.

Profit disposition
The annual general meeting decided that no dividend will be paid for the financial year 2022 and that the accumulated profit be transferred to a new account according to what appears in the management report.

Board and CEO
The annual general meeting granted the board members and the CEO discharge from liability for the 2022 financial year.

The annual general meeting elected board members Mats Holmfeldt, Vivianne Holm, Hellen Lidgard, Göran Starkebo Johan Thiel and Stefan Ölander. Mats Holmfeldt was elected Chairman of the board.

Auditors
The annual general meeting decided on the re-election of the registered auditing company PwC with the authorized auditor Claes Sjödin as the auditor in charge.

Board and auditor fees
The Annual General Meeting decided that the board's fee shall be SEK 600,000 to the chairman of the board and SEK 300,000 each to the other board members. The meeting decided that fees for members of established committees shall be paid at SEK 40,000 per person and committee. The chairman of the committee shall receive a fee of SEK 60,000. However, a member who is replaced by the company due to employment shall not receive a board fee, either in the parent company or subsidiary.

Other proposals and decisions
The Annual General Meeting decided to approve the board's proposal in accordance with the notice of:
– Changes in the articles of association:

o Increase of the share capital to a minimum of SEK 4,000,000 and a maximum of SEK 10,000,000
o Number of shares minimum 80,000,000 and maximum 200,000,000
o Updated conditions for participation in general meetings and enabling electronic voting- Renewed authorization to decide on new issue of shares and/or convertibles and/or warrants.
– Decisions on incentive programs and issuance of warrants

The minutes from The Annual General meeting will be published on the Company's website www.soltechenergy.com/investerare/corporategovernance

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

Watch the interview here:
https://www.youtube.com/watch?v=eQJj5GgMYqM

CEO comment:

Soltech's first quarter 2023 shows that total revenues in the Group amounted to SEK 683 (287.5) million, an increase of 138%. The Group's organic growth amounted to 66 (43) %. These very strong growth figures are delivered, even though we are now focusing more on achieving profitability than on growing, so it is something to be extra proud of for all colleagues. I want to thank our entrepreneurs and our almost 900 employees for great efforts during the quarter.

During four years, Soltech has grown from approx. 50 MSEK in revenue to approx. 2,000 MSEK in the past year, and we are now seeing the effects of being a Group with several billion in revenue. We are therefore continuing the work to increase synergy effects, which is a focus that will have a positive effect in all parts of the Group. Not least on the result.

FIRST QUARTER IN BRIEF

• Total revenues in the group amounted to SEK 683 (287.5) million,
an increase of 138%.

• The group's organic growth amounted to 66 (43) %.

• Adjusted EBITDA* amounted to SEK 5.8 (-33.4) million.

• Adjusted EBIT* amounted to -28.6 (-48.1) MSEK, the negative result
explained by write-offs of mainly goodwill.

The group's earnings before depreciation (EBITDA) amounted to -5.8 (-38.5)
MSEK. EBITDA has been affected by results from shares in associated companies
with -11.6 (-5.1) MSEK. The group's operating profit (EBIT) amounted to
-40.1 (-53.2) MSEK.

• The period's profit after tax amounted to -46.9 (-53.2) MSEK.

• The period's cash flow from operating activities amounted to
-45.7 (-71.2) MSEK, which is driven by growth and increased capital formation
mainly in stock.

• The period's cash flow for the group amounted to -41.5 (-80.2) MSEK.

• Earnings per share amounted to -0.35 (-0.52) SEK.

SIGNIFICANT EVENTS DURING THE FIRST QUARTER

SIGNIFICANT EVENTS IN SUBSIDIARY COMPANIES:

• Soltech's Spanish subsidiary Sud Renovables has installed Catalonia's and the Soltech group's first floating solar energy installation. The solar panels are installed on top of a collection pond for rainwater that is used for irrigation in agriculture. The solar panels are expected to produce approximately 140,000 kWh annually.

• Soltech's subsidiary E-Mobility has commissioned one of Sweden's largest
charging stations with 15 charging places for large trucks for Gothenburg's Lastbilscentral
(GLC) in Gothenburg. All charging points have power fast charging and can handle a total of 1500 amps and 1 megawatt, which corresponds to the electricity consumption of around 100 villas.

ACQUISITION:

• Soltech has on 31 January, through the subsidiary Takbyrån in Alingsås
AB, acquired 100% of Vårgårda Solenergi AB with entry on February 1.

• Soltech has on February 2, through the subsidiary Wettergrens Tak, acquired 100% of the shares in Plåtteamet i Örnsköldsvik AB with entry on 1 February.

• Soltech has on March 6, through the subsidiary Din Takläggare i Arvika AB, acquired 100% of the electrical engineering company Arvika Elinstallationer with entry on April 3.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

ACQUISITION:

• On April 3, Soltech, through the subsidiary Takorama AB, acquired 100% of the electrical engineering company Your electrical contact in Kungälv AB with entry the same day.

OTHER:

• Soltech's annual general meeting will be held on 11 May 2023 at 17.00

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

Due to an unexpectedly large number of registrations, the meeting will be held at the following place:

Finlandshuset Konferens, Snickarbacken 4, in the Sibelius hall. (130 meters from Birger Jarlsgatan 29)

Registration starts at 4:30 p.m and the annual general meeting starts at 5 p.m.

A warm welcome to the annual general meeting of Soltech Energy Sweden AB

Soltech Energy Solutions is one of the Soltech Group's operating companies within advanced energy systems, energy storage and large-scale solar energy solutions. The company is now investing heavily in helping property owners, industrial- and electricity trading companies with a financing model that facilitates investments in green energy solutions and remove obstacles that can inhibit the willingness to invest.

Energy as a service means that Soltech Energy Solutions finances, installs, and maintain the roof- or ground-mounted solar installations, which allows the property owner to focus on their core business while avoiding burdening the balance sheet with the initial investment, which Soltech takes care of.

– The concept was developed to speed up the green transition and help our customers create predictability in times characterized by unpredictability. This gives them a low electricity price over time, no start-up costs and an opportunity to sell excess energy. The combination of advantages means that Energy as a service is often equated with having a green cash cow on the roof, says Per Zetterberg, Commercial Manager Financial Services at Soltech Energy Solutions.

Strengthens the companies' resilience
Times of economic turmoil can result in in deprioritizing of investments in green energy. High electricity prices and power problems in the local power grids also create a perfect storm that is increasingly affects Swedish companies. To mitigate the effects, and in the long run avoid them completely, the energy concept aims to helping the real estate owners to weather the storm.

– We clearly feel that many businesses notice the great potential in this type of business model. The fact that, in addition to solar cells, we also can add energy storage and charging solutions behind the same grid connection creates an overall solution, and the fact that we already have over 30 MWp in the pipe shows that this concept is in demand, says Per Zetterberg.

Step by step: this is how the Energy as a service concept works:

1. Electricity trade agreement is signed
The property owner only signs an electricity trading agreement to buy the solar electricity that the solar energy solution produce. Everything from fixed contracts to contracts with moving parts based on spot price. Common to all agreements is that a long-term individual plan is always established.

2. Solar installation
The property owner "lends" his roof or land to Soltech, who then installs and maintains the solar system. The property owner does not have to bear the investment for the installation or be responsible for operation or maintenance. Even large-scale energy storage and charging park solutions can be tied together in one installation.

3. Long-term guaranteed electricity price
After the installation, the property owner does not have to worry about volatile electricity prices and power shortages in the local grid. The concept creates long-term value and predictability over the entire contract period, which is often around 20 years. After that, the facility can be transferred if there is interest.