13 January, 2020
Press Releases - Regulatory

Advanced SolTech Sweden AB (publ) is considering issuing new green secured corporate bonds and publishing new financial information

NOT FOR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, WITHIN OR TO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, SWITZERLAND, SOUTH AFRICA OR NEW ZEALAND OR IN ANY OTHER JURISDICTION WHERE THE DISTRIBUTION OR PUBLICATION OF THIS PRESS RELEASE WOULD BE UNLAWFUL

Advanced Soltech Sweden AB (publ) "ASAB", a subsidiary of Soltech Energy Sweden AB (publ) "Soltech Energy" is considering issuing new green secured corporate bonds under ASAB's green bond framework.

In connection with this, ASAB has mandated DNB Markets and Nordea to investigate the conditions for ASAB to issue a new bond loan and to arrange meetings with selected bond investors starting on January 15, 2020. Subject to prevailing market conditions, a bond issue, Swedish benchmark size (or equivalent value in EUR), under a bond framework of SEK 2,000 million with floating interest rates will follow. The Board of Directors of ASAB reserves the right to decide whether to cancel, suspend or postpone the bond issue in whole or in part. The proceeds from an issue is intended to be used to repurchase outstanding bonds and to finance ASAB's future growth. .

ASAB's new collaboration with DNB Markets and Nordea, together with the previously announced intention to list ASAB's shares on Nasdaq First North Growth Market, is part of the new financing plan for the continued expansion in China where ASAB intends to target a wider group of institutional investors.

Frederic Telander, CEO ASAB and Stefan Ölander, CEO SolTech Energy comment:

  • - We have previously communicated a goal to achieve an installed solar capacity equivalent to 1 GW (1000 MW) in 2023, which is fully connected to the electricity grid in 2024. The demand for our offer in China remains very good and we have a strong pipeline of high-quality projects waiting for funding. The investments are made where they have the greatest positive climate impact and with this transaction, we lay the foundation we need for our journey towards the creation of a green energy company in the frontline.

New financial information

In connection with ASAB evaluating the possibility of issuing bonds, new financial information that has not been announced previously, is published..

ASAB is in a strong expansion phase and had, as of December 31, 2019, an installed capacity of 139.2 MW in its portfolio of solar power plants with an annual revenue capacity of approximately SEK 161 million and EBITDA of approximately SEK 137 million, given certain assumptions. The company has furthermore prepared combined financial statements for the Group in which ASAB is the parent company for the full year 2017 and 2018 and for the period 1 January 2019 - 30 September 2019.

Income statement
SEK '000s 2017 2018 LTM Q3 2019 Q1-Q3 2019
Revenue 10,751 26,511 69,275 61,121
Other operating income 10,266 23,198 33,256 27,758
Total revenue 21,017 49,709 102,801 88,879
Personnel (1,853) (4,040) (4,046) (3,141)
Other operating expenses (154) (416) (5,750) (4,318)
Other external costs (10,958) (7,800) (8,037) (6,028)
EBITDA 8,052 37,453 84,968 75,392
Depreciation (5,914) (13,627) (27,085) (22,255)
Operating profit 2,138 23,826 57,883 53,137
Financial income 65 425 207 107
Financial costs (9,484) (27,375) (61,453) (44,783)
Earnings before tax (7,281) (3,123) (3,363) 8,461
Tax 1,435 (12) (2,950) (4,484)
Net income (5,846) (3,135) (6,313) 3,977
Balance sheet
SEK '000s 2017 2018 Q3 2019
ASSETS
Fixed assets
Property, plant and equipment
Solar power plants 238,141 512,360 826,655
Solar power plants under construction 56,476 36,865 -
Total property, plant and equipment 294,617 549,225 826,665
Financial assets
Other long-term receivables 44,826 63,515 70,318
Deferred tax assets 1,841 4,585 4,844
Total financial assets 46,667 68,099 75,162
Total fixed assets 341,284 617,325 901,817
Current assets
Inventories
Prepaid expenses to suppliers 11 274 8,083
Total inventories 11 274 8,083
Current receivables
Receivables 2,242 7,818 27,277
Receivables from group companies 1,530 0 4,256
Tax receivables 0 36 -
Other receivables 7,663 23,943 150,809
Prepaid expenses and accrued income 88 614 1,855
Total current receivables 11,523 32,410 184,197
Cash and cash equivalents 5,593 29,942 40,457
Total current assets 17,127 62,626 232,737
TOTAL ASSETS 358,411 679,951 1,134,554
EK 000s 2017 2018 Q3 2019
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Long-term liabilities
Borrowings 63,583 329,785 713,5221
Total long-term liabilities 63,583 329,785 713,522
Current liabilities
Liabilities to credit institutions 35,398 - 38,483
Borrowings - 65,540 -
Prepaid income from customers - 247 -
Payables to suppliers 125,370 60,443 68,635
Liabilities to group companies 2,976 2,744 27,276
Tax liabilities 579 1,029 3,120
Other liabilities 2,977 15,102 60,106
Prepaid income and accrued expenses 7,577 14,134 15,066
Total current liabilities 174,877 159,239 212,686
Deferred tax liabilities - 220 -
Total liabilities 238,460 489,244 926,208
Shareholders' equity
Share capital 500 500 500
Other contributed capital 125,912 199,791 213,454
Other equity including retained earnings (6,461) (9,584) (5,608)
Total shareholders' equity 119,951 190,707 208,346
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 358,411 679,951 1,134,554
Cash flow statement
SEK '000s 2017 2018 Q1-Q3 2019
Cash flows from operating activities
Operating profit 2,139 23,826 53,137
Depreciation 5,914 13,627 22,255
Other non-cash items 185 1,381 -
Interest received 65 425 107
Interest paid (5,121) (13,311) (66,995)
Income tax paid (104) 402 (2,358)
Changes in net working capital
Change in receivables (1,085) (5,576) (27,268)
Change in other receivables 11,241 (15,536) (132,842)
Change in payables 100,756 (64,929) 7,945
Change in other current liabilities 5,102 4,079 69,536
Total changes in net working capital 116,014 (81,962) (82,629)
Net cash provided by operating activities 119,092 (55,612) (76,483)
Cash flows from investing activities
Capital expenditures (145,875) (258,433) (289,109)
Investments in other financial assets (38,429) (18,690) (6,803)
Net cash used in investing activities (184,304) (277,123) (295,912)
Cash flows from financing activities
Shareholders' contributions 3,000 61,094 -
Borrowings 35,398 328,875 408,709
Change in current financial liabilities - (32,885) (25,799)
Net cash provided by financing activities 38,398 357,084 382,910
Net cash flows (26,814) 24,349 10,515
Cash and cash equivalents, beginning of period 32,407 5,593 29,942
Cash and cash equivalents, end of period 5,593 29,942 40,457

The new financial information is described in more detail in a presentation on the company's website.

For more information contact::
Frederic Telander, CEO, Advanced Soltech Sweden AB (publ). Tel: 070-525 16 03. E-mail: frederic.telander@soltechenergy.com or Stefan Ölander, CEO SolTech Energy Sweden AB (publ) Tel: 070-739 80 00. E-mail: stefan.olander@soltechenergy.com The information in this press release is such that Soltech Energy Sweden AB (publ) is to publish in accordance with EU Regulation No 596/2014 on market abuse. The information was provided through the above contact person's publication for publication on January 13, 2020 at. 07:30 CET.

Advanced SolTech Sweden AB (publ) – ASAB
In order to continuously finance investments in China, the SolTech Group’s parent company and its partner in China, Advanced Solar Power Hangzhou Inc., have formed ASAB. ASAB’s business consists of lending to Group companies to finance solar power plants in China that are owned and managed by ASRE, LSE or its wholly owned local subsidiaries. The company’s Certified Adviser is FNCA, telephone 08-528 00 399 E-mail: info@fnca.se More info at www.advancedsoltech.com

About Soltech Energy Sweden AB (publ) Soltech Energy is a comprehensive supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol and Soldags. Soltech Energy Sweden AB (publ), is traded on Nasdaq First North Growth Market under the short name SOLT and has approximately 31,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com About the China venture Soltech Energy’s investment in China is conducted in Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd., ASRE and Longrui Suqian (LSE). The business model consists of ASRE and LSE financing, installing, owning and managing solar energy installations on customers’ roofs in China. The customer does not pay for the solar facility, but instead commits to purchase the electricity that the plant produces during a 20-year agreement. ASRE’s current revenue comes from the sale of electricity to customers and from various forms of subsidies per produced kilowatt hour (kWh) of solar electricity. The goal is to have an installed capacity of 1000 megawatts (MW) fully connected to the electricity grid in 2024

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