ADVANCED SOLTECH YEAR END REPORT 2022

CEO comment: During the quarter, demand from Chinese customers remained high and new orders corresponding to 14.5 (28.9) MW were signed. Revenues amounted to SEK 40.1 (33.8) million, an increase of 19 percent compared with the previous year. During the quarter, Advanced Soltech's 174 (145) solar energy plants produced a total of 38 (39) million kilowatt hours, a decrease with 1 percent due to weak solar irradiation in the quarter. Through this we reduced CO2 emissions by 24,000 (24,000) tonnes. We have continued to build new capacity in China and at the end of the period the total installed capacity amounted to 250.1 (206.5) MW.

The quarter, in short
October 1st – December 31st
• The company installed a total of 19.9 (14.0) MW of roof-based solar energy plants and had 250.1 (206.5) MW installed and revenue-generating capacity at the end of the quarter.
• 38 (39) million kWh were produced, a decrease of 1 percent, which reduced China’s CO2-related emissions by approximately 24,000 (24,000) tonnes.
• At the end of the quarter, the company had 37 (54) MW in subscribed orders, as well as projects in progress of 120
(125) MW. The company has chosen to reduce the intake of new orders until the new financing is secured.
• The company signed 5 (17) contracts amounting to a total installed capacity of 14.5 (28.9) MW.
• The company entered into a strategic agreement in ZhuoLu regarding 300 MW of roof-top based solar facilities until 2024.
• The company requested an extension of the bonds, SOLT5 and SOLT2.

The quarter, in numbers
October 1st – December 31st
• Revenues (sales of electricity and subsidies) amounted to SEK 40.1 (33.8) million, an increase of 19 percent compared
with the previous year. Currency effects had a positive effect on revenues of SEK 2.7 million.
• Net sales (sales of electricity to customer and Grid) amounted to SEK 30.5 (26.9) million, an increase with 13 percent.
• Other operating income (subsidies) amounted to SEK 9.6 (6.9) million. During the year's quarter, insurance compensation of SEK 2.6 million was included.
• Operating expenses amounted to SEK 32.8 (25.1) million, an increase of 31 percent compared to last year. The largest items to the increase
is that costs for scheduled depreciation, maintenance costs and roof rents for solar energy facilities as well as costs in connection with the refinancing of the bond loans have increased, as well as a currency effect which results in an increase of SEK 2.4 million.
• Operating profit for the quarter amounted to SEK 7.3 (8.7) million, a decrease of 16 percent compared with the previous year.
• Profit for the year after financial items and tax amounted to SEK -65.5 (4.3) million and was affected by a non-cash flow- affecting currency effect of SEK -65.3 (34.1) million. Adjusted for this item, profit for the year amounted to SEK -21.0 (-29.9) million.
• Total cash flow for the quarter amounted to SEK -12.0 (102.9) million.
• Earnings per share before dilution amounted to SEK -1.66 (0.15).
• The number of employees at the end of the period was 18 (14).
• According to the company’s estimate, the effects of the COVID-pandemic affected the company by SEK -0.8 (-0.9)
million during the quarter.

The year, in numbers
January 1st – December 31st
• Revenues amounted to SEK 203.8 (153.5) million, an increase of 33 percent compared with the previous year. The increase was due to a larger installed base of solar energy plants. Currency effects also had a positive effect on revenues of SEK 20.5 million.
• Net sales amounted to SEK 157.0 (117.4) million, an increase with 34 percent.
• Other operating income amounted to SEK 46.9 (36.2) million. The increase was due, among other things, to insurance compensation of SEK 2.8 million and extra contributions of SEK 3.6 million.
• Operating expenses amounted to SEK 124.4 (92.9) million, an increase of 34 percent. The largest items to the increase are that costs for depreciation according to plan, maintenance, roof rents and insurance premiums of solar energy plants have increased, as well as a negative currency effect of SEK 9.8 million.
• Operating profit amounted to SEK 79.4 (60.7) million, an increase of 31 percent compared with the previous year.
• Profit for the year after financial items and tax amounted to SEK -29.1 (16.2) million and is affected by a non-cash flow- affecting currency effect of SEK 20.1 (92.8) million. Adjusted for this item, profit for the year amounted to SEK -49.1 (-76.6) million.
• Total cash flow amounted to SEK -106.4 (78.4) million.
• According to the company’s estimate, the effects of the COVID-pandemic affected the company by SEK -4.2 (-4.2)
million during the quarter.

Significant events after the
end of the period
• Advanced Soltech’s bonds SOLT2 and SOLT5 is extended to 2023-07-09, in accordance with the company’s request.
• The company signed two contracts amounting to an installed capacity of 3.5 MW.