SolTech Energy Sweden

CEO comment:

When we summarize the second quarter, we see positive effects from our technical advanced solutions and the strength of our diversed business. However, we are still affected of the lower demand, especially in the consumer market for solar energy.

Low electricity prices and high interest rates, combined with an uncertain global situation, have contributed to a lower demand in the consumer market for solar energy in all geographic markets in which we operate. Despite the decreased demand, the decrease in net sales nevertheless remanins at 16% compared to the previous year.

In the Swedish market, we continued to manage the uncertainty regarding the rules for green deductions for batteries during the quarter. It is gratifying that the Swedish Tax Agency changed its previous interpretation at the beginning of July and now approves a green tax deduction for home batteries that both support the household and also the electricity grid.

There is also a great deal of uncertainty in the Netherlands regarding the regulatory conditions for solar energy, and where energy companies have also introduced an extra fee when solar energy is fed into the grid, which has further decreased the demand. These types of regulatory uncertainties are not only negative for us, but also negative for the green transition.

The upcoming EU requirements for solar energy on properties are expected to have a positive impact on the solar energy market. Solar energy plays an important part in the transition, and the combination of batteries and smart solutions for control and energy optimization means that the opportunities are great. Soltech has a central and prominent position, with our broad offering and expertise, see opportunities in supporting a green transition by delivering energy-efficient solutions that support both the electricity grid and our customers.

Through the Group's focus on quality and the opportunities for overall solutions for the customers, we stand strong in the challenges that will come with electrification in several areas in our markets.

Our strategy, with solar as the platform, acquire, own and develop companies in roofing, electrical engineering and façade and thereby create the conditions for broadening our customer, competence and capacity base and offering overall solutions. Although we are noticing a weaker economy within construction, we have successfully been able to focus on repairs, maintenance and service to a greater extent and thus maintained the volume in roofing, façade and electrical engineering. In parallel with this work, our profitability work is also ongoing. We need to become more efficient and continuously adapt our organization with a focus on increased collaboration between the companies to improve efficiency and profitability.

We operate in a changing environment and work daily to sharpen our offering. In the past quarter, we continued to develop our small and large-scale technical solutions in solar energy, charging infrastructure and energy storage.

This work creates new business opportunities in new customer segments. Good examples of this are the Group's largest energy collaboration to date between our company Soltech Energy Solutions and the paper mill Hylte Paper, as well as the charging infrastructure agreement with the metal and mining company Boliden via our company E-Mobility.

Despite a fast-moving and challenging consumer market in solar energy, I see a bright future. Solar energy is the energy of the future and an important part of the energy transition. With a stable business base in several countries, industries and customer segments, we are strongly positioned as an enabler for the green transition.

Patrik Hahne, CEO

SECOND QUARTER HIGHLIGHTS

• Net sales amounted to SEK 620.2 million (742.6)
• The Group's organic growth amounted to -16% (31)
• EBITDA amounted to SEK 50.1 (31.8) million. EBITDA margin amounted to 8.1% (4.3)
• EBITA amounted to SEK 34.3 (18.3) million. EBITA margin was 5.5% (2.5)
• Profit after tax for the period in the quarter amounted to SEK 6.1 million (-6.2)
• Cash flow from operating activities amounted to SEK 24.0 (40.9) million. Cash flow for the period amounted to SEK -68.4 million (42.6)
• Earnings per share before and after dilution amounted to SEK 0.05 (-0.05)

INTERIM PERIOD 2024: 1 JANUARY - 30 JUNE

• Net sales amounted to SEK 1,133.3 million (1,423.8)
• The Group's organic growth amounted to -21% (39)
• EBITDA amounted to SEK 49.5 (39) million. EBITDA margin amounted to 4.4% (2.7)
• EBITA amounted to SEK 19.2 (12.6) million. EBITA margin was 1.7% (0.9)
• Profit after tax for the period in the quarter amounted to SEK -26 million (-46.1)
• Cash flow from operating activities amounted to SEK 64.0 (0.4) million. Cash flow for the period amounted to SEK -23.1 million (1.0)
• Earnings per share before and after dilution amounted to SEK -0.20 (-0.34)

Significant events during the quarter:

• Soltech has entered into a long-term strategic energy partnership with the paper mill Hylte Papper. The collaboration concerns a number of different parts of Hylte's sustainability strategy and continued development of its green energy supply. The business value of Soltech is estimated to amount to over SEK 250 million over 20 years
• The subsidiary E-Mobility has signed an agreement with Boliden for the development of mobile charging stations for battery-powered mining machines
• Commissioning of the Group's self-owned solar park Öringe outside Halmstad with an expected annual production of 5.7 GWh
• At the Annual General Meeting on 21 May, three new Board members were elected, Ivana Stankovic, Ove Anebygd and Bernt Ingman. Stefan Ölander was re-elected as a member of the Board of Directors and was appointed new Chairman

Significant events after the period:
• No significant events after the reporting period

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