20 February 2025

Soltech Energy Sweden AB (publ) Year-end Report 2024

Positive cash flow in a challenging market

CEO comment:

The long-term increased need for solar energy and energy storage remains and is becoming an increasingly important part of electrification and the energy transition. In the short term, we have had a continued challenging market to navigate in the quarter.

In the quarter, we saw a continued positive development in demand in the solar business segment in Sweden. It is also gratifying to see how our Roof, Façade and Electrical Engineering businesses continue to develop with stable core businesses and at the same time broaden the offering to include not only solar energy solutions, but also charging infrastructure and energy storage on both a larger and smaller scale. Despite a weak construction economy, we have managed to maintain relatively stable volumes in the quarter through a focus on energy solutions, service, maintenance and renovation work.

The decrease in the Group’s net sales for the full year 2024, compared to the previous year, is mainly explained by the decrease in net sales in the solar consumer market in all our geographic markets of the Netherlands, Spain and Sweden.

During the quarter, we have continued working on cost adjustments, efficiency improvements, and pricing. Throughout the full year of 2024, we have, among other things, reduced the workforce, and the cost savings implemented during 2024 are expected to take full effect in the second quarter of 2025.

In the fourth quarter, we strengthened our cash position, mainly as a result of positive changes in working capital, but also as a result of our sale of the Ramsjöholm solar park. It is gratifying that we have now completed our first transaction, in line with our strategy. This has freed up capital for future potential transactions.

I continue to have a positive view of the future, where solar energy and Soltech’s solutions in electrification create great opportunities over time. The upcoming EU requirements for solar energy on properties, together with society’s electrification with increased needs for energy storage and charging infrastructure, combined with monitoring, control and optimization, create new business opportunities. The latest interest rate cuts also create better prospects for our base in construction and construction. With our broad business base and expertise as well as the ability to offer technically advanced complete solutions, we are in a strong position to meet increased and new needs.

Patrik Hahne, CEO

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

QUARTER 4: 1 OCTOBER – 31 DECEMBER

Net sales amounted to SEK 664.3 (740.6) million
The Group’s organic growth amounted to -10% (-3)
EBITDA amounted to SEK 61.3 (58.1) million. EBITDA margin amounted to 9.2% (7.8)
EBITA amounted to SEK 39.9 (41.5) million. EBITA margin was 6.0% (5.6)
Profit after tax for the period amounted to SEK -217.5 (-120.2) million
Cash flow from operating activities amounted to SEK 100.6 (102.4) million. Cash flow for the period amounted to SEK 126.6 (50.8) million
Earnings per share before and after dilution amounted to SEK -1.64 (-0.91)

FULL YEAR: JANUARY 1 – DECEMBER 31

Net sales amounted to SEK 2,405.8 (2,904.4) million
The Group’s organic growth amounted to -18% (26)
EBITDA amounted to SEK 197.0 (128.5) million. EBITDA margin amounted to 8.2% (4.4)
EBITA amounted to SEK 129.5 (75.4) million. EBITA margin was 5.4% (2.6)
Profit after tax for the period amounted to SEK -278.1 (-165.9) million
Cash flow from operating activities amounted to SEK 91.5 (-0,9) million. Cash flow for the period amounted to SEK 21.7 (-62.5) million
Earnings per share before and after dilution amounted to SEK -2.10 (-1.25)

SIGNIFICANT EVENTS DURING THE QUARTER

Soltech launched the Soltech Home concept, needs-based solar energy solutions that enable optimization of energy production, energy use and reduced energy costs for private individuals and farmers

The solar tech company E-Mobility has developed and installed Stockholm’s first mobile fast charger for electric boats. The charger has an output of 200 kW

Solpark Ramsjöholm (11 MW) has been divested to Alight. Operation and maintenance will be handled by Soltech in the future through an operation and maintenance agreement

The signing of a new battery agreement with the battery company CA Batteribalans regarding assistance with the design, installation and commissioning of a large-scale battery park of 28 MWh. The battery storage facility will be built in Lerum and the installation is expected to be commissioned in April 2025

Completion of a battery park with a capacity of 42 MWh in collaboration with Hylte Paper. The installation is part of the previously communicated long-term energy collaboration, which in addition to batteries also includes Soltech assisting Hylte Paper with smart control, high-voltage equipment, batteries, integration with various arbitrage, operation and maintenance and other services. As previously communicated, the energy collaboration is expected to generate a business value of over SEK 250 million for Soltech over a 20-year period, with the majority of revenues in the first three years. The installation is now undergoing a trial period

SIGNIFICANT EVENTS AFTER THE PERIOD