ADVANCED SOLTECH INTERIM REPORT THIRD QUARTER 2022

CEO Comment: The third quarter was our best ever. We produced 69 (49) million kWh, an increase of 40 percent. Revenues reached SEK 72.5 (47.1) million, an increase of 54 percent. The increase is mainly due to the fact that we have more connected facilities and our sales process is working very well. Once the solar power plants are installed, they continue to deliver electricity and revenue for at least 20 years. We have a very strong order book and pleased customers. So far this year, we have produced 162 million kWh, which corresponds to the annual consumption of more than 30,000 Swedish households.

The quarter, in short
July 1st – September 30th
• The company installed a total of 10.0 (0.0) MW of roof-based solar energy plants and had 230.2 (192.5) MW installed and revenue-generating capacity at the end of the quarter.
• 69 (49) million kWh were produced, an increase of 40 percent, which reduced China’s CO2-related emissions by approximately 43,000 (30,000) tonnes.
• At the end of the quarter, the company had 46 (51) MW in subscribed orders, as well as projects in progress of 125
(125) MW. During the period, the company has chosen to cancel orders, a total of 4 MW.
• The company signed three (eight) contracts amounting to a total installed capacity of 8.7 (13.6) MW.
• The credit committee at China Bank of Communications has given a positive decision regarding a bank loan over 8 years of CNY 410 million (approximately SEK 615 million) to Advanced Soltech’s subsidiaries in China.

The quarter, in numbers
July 1st – September 30th
• Revenues (sales of electricity and subsidies) amounted to SEK 72.5 (47.1) million, an increase of 54 percent compared
with the previous year. The increase is due to a larger installed base of solar energy plants. Currency effects also had a positive effect on revenues of SEK 9.4 million.
• Net sales (sales of electricity to customer and Grid) have increased with 57 percent from SEK 34.9 million to SEK 54.7 million.
• Other operating income (subsidies) has increased from SEK 12.2 million to SEK 17.8 million.
• Operating expenses amounted to SEK 32.0 (23.9) million, an increase of 34 percent. The largest items to the increase
are costs for depreciation according to plan, maintenance and roof rental of solar energy plants have increased, and negative currency effect amounted to SEK 3.3 million.
• Operating profit for the quarter amounted to SEK 40.5 (23.2) million, an increase of 74 percent compared with the previous year.
• Profit for the year after financial items and tax amounted to SEK 20.7 (12.4) million and is affected by a non-cash flow- affecting currency effect of SEK 16.1 (22.1) million. Adjusted for this item, profit for the year amounted to SEK 4.6 (-9.7) million.
• Total cash flow for the quarter amounted to SEK -29.8 (21.1) million.
• Earnings per share before dilution amounted to SEK 0.52 (0.56).
• The number of employees at the end of the period was 18 (15).
• According to the company’s estimate, the effects of the Corona pandemic affected the company by SEK -1.4 (-1.4)
million during the quarter.

The year, in numbers
January 1st – September 30th
• Revenues amounted to SEK 163.8 (119.7) million, an increase of 37 percent compared with the previous year. The increase is 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 have increased with 40 percent from SEK 90.4 million to SEK 126.5 million.
• Other operating income has increased from SEK 29.3 million to SEK 37.3 million.
• Operating expenses amounted to SEK 91.6 (67.7) million, an increase of 35 percent. The largest items to the increase
are that costs for depreciation according to plan, maintenance, roof rental and insurance premiums of solar energy plants have increased, and negative currency effect amounted to SEK 9.8 million.
• Operating profit amounted to SEK 72.1 (52.0) million, an increase of 39 percent compared with the previous year.
• Profit for the year after financial items and tax amounted to SEK 36.4 (12.0) million and is affected by a non-cash flow- affecting currency effect of SEK 64.4 (58.7) million. Adjusted for this item, profit for the year amounted to SEK -28.1 (-46.7) million.
• Total cash flow amounted to SEK -94.4 (-24.5) million.
• According to the company’s estimate, the effects of the Corona pandemic affected the company by SEK -3.5 (-3.3)
million during the quarter.

Significant events after the
end of the period
• The company enters into a strategic agreement regarding 300 MW of roof-top based solar facilities until 2024, which fully developed will generate an estimated annual revenue of SEK 260 million.