SolTech Energy Sweden : acquires the majority in the NP Group

SolTech Energy Sweden AB (publ) has on January 16, 2019 acquired 60% of the shares in the roofing company NP-Gruppen AB. The NP Group is Stockholm-based and was founded in 1966, has 30 employees and had sales of approximately SEK 85 million in 2018, with a positive result of approximately SEK 13 million.

SolTech hereby announces its second acquisition according to the new acquisition strategy that was presented on October 25, 2018. Following the acquisition of the majority in Nyedal Solenergi, SolTech now acquires the majority in one of Sweden's most established roof companies.

Acquiring a roofing company such as the NP Group (NP) with deep expertise in roofing is a very conscious and strategic step for SolTech. The solar energy market in Sweden is growing very strongly and it is equally important to possess expertise in roofing and solar power to succeed in the solar energy market. It is on roofs that most solar power plants are installed and for these installations to maintain a high quality for decades, roof expertise is required. Through the acquisition of the NP Group, SolTech becomes the only solar energy company that has this expertise in the Swedish market.

SolTech has in addition to its two integrated roofing products ShingEl and RooF also the product Facade. Through the acquisition of NP, SolTech will also become a co-owner of the newly started facade company Front Up AB, which is owned 50% by NP and 50% by Örnsköldsviksbolaget Winther Bygg AB. Front Up will establish itself in the expansive facade market in Sweden where there is an increased demand for solar energy products, which will also benefit the sale of SolTech Facade.

Acquisition of the NP Group in economic terms:

• SolTech acquires 60% of NP-Gruppen AB (NP) with an option to acquire the remaining 40% in 2022.
• All shares in NP are valued at SEK 45 million, of which the total acquisition proceeds for 60% of the shares amount to SEK 27 million, provided that set turnover and profit targets in NP are achieved.
• The acquisition is paid with an initial cash part of SEK 6.3 million and newly issued SolTech shares worth SEK 8.1 million (30% of the purchase price). After SEK 12 and 24 months, an additional SEK 6.3 million can be paid out in the additional purchase price if the sales turnover and profitability goals are achieved.
• A variable supplementary purchase price will also be paid. This is calculated on adjusted equity according to the transfer statement, which is determined at the Annual General Meeting in spring 2019. At present, this additional purchase price is estimated at SEK 6.3 million.
• The acquisition is entirely financed from own cash and with newly issued SolTech shares.
• SolTech's assessment is that the acquisition will contribute approximately SEK 90 million in sales in 2019 and with an operating profit of about 5-10%. From 2020 onwards, SolTech expects successively increased sales and operating margin as a result of increased sales of SolTech's products, jointly purchasing, marketing and administration

CEO Stefan Ölander in a comment:

- I am proud and pleased that we at SolTech in the short term have acquired two high-interest companies. Our goal with this and future acquisitions is to add expertise, driven entrepreneurs and sales channels for increased growth and profitability within the SolTech Group. We now do this through the acquisition of the majority in the NP Group, where CEO Patrik Pettersson and his team will be a great asset to us. We are also working on the plan to present further acquisitions in 2019 with the aim of building SolTech the Nordic region's most successful solar energy group. However, focus is now is getting started with the NP and Nyedal and ensuring that it goes according to plan.

Patrik Pettersson, CEO of the NP Group in a comment:

- We feel very inspired by this business deal that gives us the possibility to enter the very interesting solar energy industry, something we have been thinking about for a long time. Now the time was right and with SolTech's products, expertise, network and financial resources we feel that we have got a platform to succeed with our solar energy initiative and that we can contribute to a strong group development and to a better environment.

SolTech's acquisition scheme is based on the following strategic pillars:

• SolTech initially acquires at least 51% but not more than 75% of a company. If there is only one owner of the planned acquisition, SolTech requires one or more key persons to become a shareholder before the acquisition is carried out. These two things mean that SolTech ensures that the entrepreneurial spirit and drive remains in the acquired company.
• At least 20% of the purchase price is made up of shares in SolTech. This creates a drive to always do the best for the Group as the key persons benefit from a positive price development in the SolTech share.
• The cash part of the purchase price is paid on three occasions. Upon entry and after 12 and 24 months respectively. In order for the purchase price number two and three to be paid out, both the set turnover and profit requirements have to be achieved. This arrangement is positive for SolTech's liquidity and ensures also that set goals are reached before the entire purchase price is paid.
• SolTech always has an option to acquire the remaining part of the company after 3-4 years.

The last pillar is that our subsidiaries will continue to be driven by the same management and retain their culture and their name. SolTech will support and develop its subsidiaries in a number of areas so that they can grow and become even better, stronger and, not the least, more profitable.

For more information, please contact: Stefan Ölander, CEO SolTech Energy Sweden AB (publ) Tel: [phone]. E-mail: [e-mail] or Patrik Pettersson, CEO NP-Gruppen AB. Tel: [phone]. Email: [e-mail]

The information in this press release is such that SolTech Energy Sweden AB (publ) must publish in accordance with EU Regulation No. 596/2014 on Market Abuse. The information was submitted through the above contact person's agency for publication on January 16, 2019 at. 8:40 am CET.

About SolTech Energy

SolTech Energy develops and sells aesthetic and building-integrated solar energy products for all types of real estate - commercial, public and residential. The products are part of a building's outer shell in the form of a roof or a wall with integrated solar cells for the production of electricity. The Group also conducts operations in China where the business model consists of financing, owning and operating solar power plants on customers' roofs and selling all the electricity that is produced. The Group also includes the subsidiaries Nyedal Solenergi and the NP Group and the jointly owned companies ASAB in Sweden and ASRE in China. SolTech Energy Sweden AB (publ) is traded on First North at Nasdaq Stockholm under the short name SOLT and has about 15,000 shareholders. The Company's Certified Adviser Erik Penser Bank Telephone: [phone]. Email: [e-mail]. More info at: www.soltechenergy.com

About NP-Gruppen AB

We have been specialists on roofs for 50 years. As a sheet metal warehouse we have climbed around and worked on all types of rooftops in Stockholm for half a century. During these more than 50 years, we have been devoted to always deliver quality and stand for what we promise - no matter how big or small the job is.

If we get the question 'Describe the NP Group with three words', the answer will be: Customer-focused, High competence, Cost-effective.