Advanced Soltech interim report second quarter 2023

The quarter, in short
April 1st – June 30th

• The company has entered into an agreement with the Chinese company JiangSu Financial Leasing Co., Ltd. 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.
• On June 28, 2023, the company fully repaid the green secured bond SOLT5.
• The company has carried out a directed share issue of approximately SEK 141 million, as well as decided on a subsequent compensation issue for other shareholders of approximately SEK 99 million. As of June 30, SEK 30 million of the directed issue has been paid to the company.
• The company installed a total of 1.7 (8.2) MW of roof-based solar energy plants and had 252.0 (220.2) MW installed and revenue-generating capacity at the end of the quarter. The company’s relatively low installation level is partly due to a lack of funding.
• 68 (61) million kWh were produced, an increase of 11 percent, which reduced China’s CO2-related emissions by approximately 42,000 (38,000) tonnes.
• At the end of the quarter, the company had 60 (53) MW in subscribed orders, as well as projects in the pipeline of 118 (125) MW.
• The company signed 6 (13) contracts amounting to a total installed capacity of 9.5 (30.8) MW.

The quarter, in numbers
April 1st – June 30th

• Revenues (sales of electricity and subsidies) amounted to SEK 65.5 (58.6) million, an increase of 12 percent compared with the previous year. The increase is due to the installed base being higher in 2023 than in 2022. Currency effects had an effect on revenues of SEK 0.9 (7.2) million.
• Net sales (sales of electricity to customer and Grid) amounted to SEK 53.0 (46.2) million, an increase with 15 percent. Currency effects had an effect on net sales of SEK 0.7 (5.7) million.
• Other operating income (subsidies) amounted to SEK 12.5 (12.4) million.
• Operating expenses amounted to 38.4 (30.6) MSEK, an increase of 25 percent compared to the previous year. The single largest item to the increase is extraordinary costs, amounted to SEK 7.2 million, in connection with the extension of the SOLT2 and SOLT5 bonds. Other major cost items are an increase in planned depreciation, maintenance costs and roof rents for solar energy facilities, as well as a currency effect of -0.3 (-3.6) MSEK.
• Operating profit for the quarter amounted to SEK 27.1 (28.0) million. Adjusted for extraordinary costs in connection with the extension of the bonds, the operating profit amounted to SEK 31.3 million.
• Interest expenses and similar income items amounted to SEK 45.3 (34.1) million. Behind the figure is an increased interest rate for the bond loans SOLT2 and SOLT5, and increased interest costs for financing in China.
• Profit for the year after financial items and tax amounted to SEK -38.4 (23.2) million and was affected by a non-cash flow affecting currency effect of SEK -20.8 (27.4) million. Adjusted for this item, profit for the year amounted to SEK -17.6 (-4.2) million. • Total cash flow for the quarter amounted to SEK 24.5 (35.5) million.
• Earnings per share before dilution amounted to SEK -0.97 (0.59).
• The number of employees at the end of the period was 18 (17)

Significant events after the end of the period

• The remaining amount of the directed issue has been paid to the company. The entire issue is registered with the Swedish Companies Registration Office (Bolagsverket), and the total number of shares after the issue amounts to 53,744,152.
• The company has repaid bond loans SOLT2 and SOLT3.
• The company submitted a forecast for the financial years 2023 and 2024 on August 7, 2023. In summary, we estimate that revenues for 2024 will be SEK 272 million, that EBITDA will be SEK 203 million and profit before tax will be SEK 55 million.
• The company hires Erik Penser Bank as liquidity provider

Year-to-date, in numbers
January 1st – June 30th

• Revenues amounted to SEK 106.2 (91.3) million, an increase of 16 percent compared with the previous year. The increase is due to the installed base being higher in 2023 than in 2022. Currency effects had an effect on revenues of SEK 2.3 (11.1) million.
• Net sales amounted to SEK 86.2 (71.8) million, an increase with 20 percent. Currency effects had an effect on net sales of SEK 1.1 (8.8) million.
• Other operating income amounted to SEK 20.0 (19.5) million.
• Operating expenses amounted to 76.2 (59.6) MSEK, an increase of 28 percent compared to the previous year. The single largest item to the increase is extraordinary costs, amounted to SEK 7.2 million, in connection with the extension of the SOLT2 and SOLT5 bonds. Other major cost items are an increase in planned depreciation, maintenance costs and roof rents for solar energy facilities, as well as a currency effect of -1.0 (-6.5) MSEK.
• Operating profit for the quarter amounted to SEK 30.0 (31.7) million. Adjusted for extraordinary costs in connection with the extension of the bonds, the operating profit amounted to SEK 37.2 million.
• Interest expenses and similar income items amounted to SEK 82.6 (66.5) million. Behind the figure is an increased interest rate for the bond loans SOLT2 and SOLT5, and increased interest costs for financing in China.
• Profit for the year after financial items and tax amounted to SEK -73.6 (15.7) million and was affected by a non-cash flow affecting currency effect of SEK -21.7 (48.3) million. Adjusted for this item, profit for the year amounted to SEK -52.0 (-32.6) million.
• Total cash flow for the quarter amounted to SEK 16.4 (-64.7) million.
• Earnings per share before dilution amounted to SEK -1.86 (0.40).