Soltech Energy Sweden AB (publ) interim report for the period April-June

CEO comment:

Through the acquisition of Sesol and with Nordic Capital as the new majority owner, we are now taking a decisive step in our journey towards becoming the leading player in solar energy and energy storage in Sweden with the power, breadth and expertise required to accelerate the energy transition.

However, the quarter was characterised by increased global uncertainty and the generally weak economy. This has led to longer decision-making times and increased competition as a result of fewer projects. The work of adapting the business is ongoing and although we have come a long way, there is still a lot of work to be done. The long-term need for solar energy, energy storage and charging infrastructure remains large and plays an important role in the energy and climate transition, and it is important for us to not only adapt to the current situation but also ensure that we are well equipped when the market turns.

The Group’s net sales in the second quarter decreased compared with the same period last year, which is an effect of a weak solar market and a cautious construction market. The lower activity in the quarter had a negative impact on the Group’s net sales, earnings and cash flow during the period. Work on cost adjustments and profitability enhancing measures is still ongoing and overall we have a positive effect of these measures, but which do not fully compensate for the reduced volume. Adjusted for revaluation effects, EBITDA amounts to SEK –45 million for the first 6 months of the year, which can be compared to SEK –44.1 million in the corresponding period last year.

The results show that we still have a lot of work to do, not only on cost adjustment and efficiency, but also on how and what we sell to our customers. Even though we have adjusted costs, I am far from satisfied with what we have achieved. We must continue to work on profitability-driving measures and our full focus is on accelerating and strengthening the activities that are continuously taking place to adapt the operations to the current market situation.

Through the planned and fully guaranteed Rights Issue of SEK 335 million (before transaction costs) and the acquisition of Sesol, we strengthen our financial position. It contributes to stability and, in the long run, competitive advantages for the Group’s subsidiaries to act as long-term and secure business partners for their customers.

With new financial conditions and a strong principal owner in Nordic Capital, we have both the expertise and the resources required to be able to continue to develop existing business areas, accelerate synergy effects and implement the necessary change work to meet tomorrow’s need for smart total solutions.

Patrik Hahne, CEO

Read the CEO’s comment in its entirety in the quarterly report.

Quarter 2: 1 April-30 June

• Net sales amounted to SEK 386.2 (620.2) million
• The Group’s organic growth amounted to -37% (-16)
• EBITDA amounted to SEK -29.1 (50.1) million. EBITDA margin amounted to -7.5% (8.1)
• EBITA amounted to SEK -44.7 (34.3) million. EBITA margin was -11.6% (5.5). EBITA was impacted by revaluation effects of SEK 0.2 (56.9) million. Excluding revaluations, EBITA amounted to SEK -44.9 (-22.6) million
• Profit after tax for the period amounted to SEK -57.0 (6.1) million.
• Cash flow from operating activities amounted to SEK -16.6 (24.0) million. Cash flow for the period amounted to SEK -5.3 (-68.4) million
• Earnings per share before and after dilution amounted to SEK -0.43 (0.05)

Interim period: 1 January-30 June

• Net sales amounted to SEK 832.4 (1,133.3) million
• The Group’s organic growth amounted to -26% (-21)
• EBITDA amounted to SEK -39.5 (49.5) million. EBITDA margin amounted to -4.7% (4.4)
• EBITA amounted to SEK -71.0 (19.2) million. EBITA margin was -8.5% (1.7). EBITA was impacted by revaluation effects of SEK 5.5 (93.6) million. Excluding revaluations, EBITA amounted to SEK -76.5 (-74.4) million
• Profit after tax for the period amounted to SEK -104.8 (-26.0) million
• Cash flow from operating activities amounted to SEK -92.2 (64.0) million . Cash flow for the period amounted to SEK -117.0 (-23.1) million
• Earnings per share before and after dilution amounted to SEK -0.79 (-0.20)

Significant events during the quarter

• Roof contract for 4,500 sqm on the new station building Göteborg Grand Central with an order value of approximately SEK 13 million
• Installed and commissioned Skåne’s largest solar cell façade on Sixt’s property in Staffanstorp. The photovoltaic façade has an installed capacity of 55.8 kWp and is expected to produce about 30,000 kWh annually
• Façade contract in the form of an approximately 1,750 sqm glass façade with glulam frame in Stockholm. The project will continue during 2025 and the first part of 2026 and with a total order value of approximately SEK 20 million
• The Annual General Meeting was held on 22 May and did not entail any changes to the composition of the Board of Directors

Significant events after the period

• Soltech has acquired and taken possession of 100 percent of the shares in Sesol from Nordic Capital. The purchase price will be paid with newly issued shares in Soltech, which means that Nordic Capital will be the largest owner with approximately 30 percent of the shares
• Planned rights issue of SEK 335 million fully guaranteed via a guarantee consortium where Nordic Capital has undertaken to subscribe for its share of approximately SEK 100 million and to further guarantee approximately SEK 50 million. This means a fully guaranteed issue, subject to approval by an extraordinary general meeting. The proceeds will be used to develop existing business areas, accelerate synergies and profitability-driving measures, refinancing of loans and debt, and for any future acquisitions
• An Extraordinary General Meeting has been held where the shareholders resolved on a directed consideration issue of shares, determination of the number of Board members and election of two new Board members, amendment of the Articles of Association and authorization for the Board of Directors to issue shares, warrants and/or convertibles
• Agreement with energy company Nordic Solar for a large-scale battery project. The project includes an 18 MWh battery park in Södertälje

The quarterly report and other financial reports are available at: https://soltechenergy.com/en/investors/financial-reports-calendar/