Whey Finance

Savosolar Plc activity report from January to March 2022

Savosolar Oyj

Savosolar Plc
Activity review on April 25, 2022 at 8:30 a.m. (CEST)

Savosolar Plc activity report from January to March 2022

Key figures and significant events from January to March 2022

  • Savosolar’s turnover in January-March amounted to 1.4 million euros (1-3/2021: 0.7 million euros).

  • The operating result (EBIT) from January to March amounted to -1.2 million euros (-1.1 million euros).

  • The net result from January to March amounts to EUR -1.2 million (EUR -1.2 million).

  • Contract with Newheat SAS for the delivery of a solar thermal field in Verdun, France, worth approximately 3.0 million euros.

Jari Varjotie, CEO of Savosolar:

“The first quarter of 2022 was dominated by Russia’s shocking invasion of Ukraine. Savosolar has no sales or purchases in Russia, Belarus or Ukraine, but Russia’s invasion of Ukraine increased turbulence in the energy market and added to the uncertainty regarding the availability and prices of materials and components caused by the Covid-19 pandemic.

Despite the uncertainty in the energy market, Savosolar’s year has started from a sales perspective in line with our expectations. Our turnover from January to March amounted to 1.4 million euros, a marked improvement compared to the beginning of last year. However, the operating result for the period under review did not meet our expectations and amounted to -1.2 million euros, as in the previous year. Our backlog at the end of March amounted to 1.9 million euros, compared to 1.3 million euros a year ago.

By far the most positive event of the first quarter was the contract we signed with Newheat SAS for the delivery of a solar thermal field worth around 3 million euros in Verdun, France. When completed, the system will produce heat for the Lactalis Group’s whey powder plant, which is the largest solar heating system in France for industrial process heat. This is already our fourth system delivery to Newheat which, as the owner and operator of the solar heating system, sells the heat it produces to its customers under long-term contracts. Emission-free solar heat has proven to be an excellent substitute for fossil energy sources, not only in district heating, but also in industry. Construction of the Verdun solar thermal field began at the end of March and commissioning of the system is scheduled for the end of 2022. Delivery of the field is scheduled for spring 2023.

The solar heat market outlook is favourable, especially in Central Europe, as businesses and cities seek truly clean solutions for heat generation. In addition, the rise in energy prices and the desire of European countries to significantly reduce their dependence on fossil fuel imports from Russia should further accelerate the green transition. At the same time, the focus is increasingly on the life cycle emissions of products and services. Solar heat is also very competitive when life cycle emissions are compared, as its life cycle emissions are lower than any other form of energy. Demand is also growing outside the European Union and many international mining companies, for example, are actively looking for new forms of energy to replace fossil fuels.

Growing demand and market activity is also reflected in our operations. During the first quarter of 2022, we made approximately twice as many budget offers in terms of volume and approximately four times as many budget offers in terms of money than in the first quarter of last year. We strengthened our sales in Central Europe as planned with recruitments both in German-speaking Central Europe and in the growing clean energy market in Poland.

It seems that the market will return to a growth trajectory in 2022, although the war in Ukraine has increased uncertainty about the evolution of the energy market, especially in the short term, and some of the imports of Fossil energy from Russia will probably have to be replaced in the short term by other rapidly deployable fossil energy sources.

The projects we have already implemented, the emission reductions they bring and their concrete economic benefits for our customers are excellent references when looking for reliable and clean heat indoors and outdoors. outside of Europe.

BUSINESS PERFORMANCE FROM JANUARY TO MARCH 2022

The comparative figures in this activity report refer to the corresponding period in 2021, unless otherwise indicated. The activity review has not been audited.

Savosolar’s turnover in January-March amounted to 1.4 (0.7) million euros. In particular, revenues were increased over the comparison period by the prefabricated collectors assigned to the Verdun project, which we were able to produce in stock because, already in 2021, we anticipated an increase in prices and reduced availability of materials and components. by increasing buffer stocks. We continued to prepare for material market turmoil also in early 2022, both in our materials purchases and in the pricing of our commercial offerings.

Savosolar’s operating result (EBIT) from January to March amounted to -1.2 (-1.1) million euros. The net result from January to March amounts to -1.2 (-1.2) million EUR. The result was weighed down by higher prices for certain materials and additional investments in sales in growth markets. Cash and cash equivalents as of March 31, 2022 amounted to €2.7 (2.5) million.

Equity at the end of the reporting period amounted to EUR 4.8 (4.4) million, with an equity ratio of 65.1 (64.0) percent. At the end of the period under review, the balance sheet total increased by 1.3 (0.2) million euros in sensors assigned to projects but not yet delivered.

Comparison by reporting period (FAS, unaudited)

(1000 euros)

January-March 2022

January-March 2021

Switch (%)

January-December 2021

Revenue

1,447

742

94.9%

2,497

Operating result (EBIT)

-1,176

-1,090

-7.8%

-4,554

Profit/loss for the period

-1,198

-1,230

2.6%

-5,772

EVENTS DURING THE REPORTING PERIOD

On March 23, 2022, Savosolar announced that it had signed a contract with Newheat SAS for the delivery of a solar thermal field in Verdun, France. The solar field to be delivered has an area of ​​more than 15,000 m2 and the delivery value is around 3.0 million euros. When completed, the system will produce heat for the Lactalis Group’s whey powder plant, which is the largest solar heating system in France for industrial process heat. Commissioning of the system is scheduled for the end of 2022.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

The subscription period for shares with Savosolar Plc Warrants 1-2021 began on March 21 and ended after the reporting period on April 1, 2022. Based on the warrants, 33,991,820 new shares were subscribed and the company raised approximately €1.02 million in new share capital. before transaction fees. Of the warrants, approximately 87.8% were exercised to purchase shares. The new shares were registered in the Finnish Commercial Register on April 8, 2022. The total number of shares in the company after the share subscriptions made with the warrants is 199,179,456 shares.

ANNUAL GENERAL MEETING AND FINANCIAL COMMUNICATION OF SAVOSOLAR IN 2022

The annual general meeting of Savosolar Plc will be held on Tuesday, April 26, 2022 from 4:00 p.m. (EET) in the Technopolis Ruoholahti “Mill” seminar room at Hiilikatu 3, 00180 Helsinki, Finland.

Savosolar will publish its half-year report from January to June on August 18, 2022.
The January to September activity review will be published on October 26, 2022.

SAVOSOLAR PLC
board of directors

More information:
CEOJari Varjotie
Telephone: +358 400 419 734
Email: [email protected]

Savosolar in brief

Savosolar, with its highly efficient collectors and large-scale solar thermal systems, has taken solar thermal technology to the next level. The company’s collectors are equipped with patented nano-coated direct flow absorbers, and with this advanced technology, Savosolar helps its customers to produce competitive clean energy. Savosolar’s vision is to be the premier supplier of high performance solar installations globally. The focus is on large-scale applications such as district heating, industrial process heating and building systems – market segments with high potential for rapid growth. The company mainly delivers complete systems, from design to installation, using the best local partners. Savosolar is known as the most innovative company in the industry and aims to remain so. Savosolar shares are listed on the Nasdaq First North Growth Market Sweden under the symbol SAVOS and on the Nasdaq First North Growth Market Finland under the symbol SAVOH.www.savosolar.com

The firm’s certified advisor is Augment Partners AB, [email protected], Phone. +46 8 604 22 55.

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