Interim report for
Q1 2023
Company reg. no.: DK39703 416
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Ennogie continues to have a large order intake. Furthermore, we have seen a doubling in the volume of offers
compared to the same period in 2022, primarily driven by offers to housing associations and property developers,
which is in line with our expectations from the increased efforts towards housing associations and larger
construction projects. The order intake for the first quarter increased to DKK 28.5m, up from DKK 21.5m in the same
period in 2022, which included, among others, the Berlin project – Kokoni One.
To support our market efforts towards larger projects, Ennogie has obtained and received Denmark's first product-
specific environmental product declaration (EPD) for solar panels and solar roofs. The EPD also covers the German
customers' needs and desires for an EPD.
The issuance of the EPD is the culmination of several years of collaboration with NIRAS on Ennogie's carbon
footprint. It is a significant step in our positioning for new Danish projects, as new climate requirements have been
introduced from January 1, 2023, which will limit the CO2 footprint from new buildings with a floor area over 1,000
m2. Thus, new construction may only emit a maximum of 12 kg CO2 equivalents per m2 per year, and from 2025,
equivalent limit values will be introduced for all new construction regardless of size.
Ennogie has in the first quarter of 2023 doubled its revenue compared to the same period in 2022. Revenue for the
first three months of 2023 was DKK 22m, compared to DKK 11m in the same period in 2022.
As the first quarter is a winter season, the deliveries can be impacted by weather conditions, where planned project
timelines are changed due to bad weather. Due to weather conditions in Germany, Ennogie unfortunately had to
postpone some planned deliveries from first quarter 2023 to later in the year. As part of our continued growth
journey, we have worked on and implemented new delivery processes that going forward will protect us against
delays caused by changes occurring on construction sites. This will result in better planning for both customers and
Ennogie.
The delay in some planned deliveries during the first months of the year affects both the revenue and EBITDA for
the quarter. In addition, one-time expenses have been incurred by a lawsuit which was concluded and ruled in
Ennogies favor, our new ERP system, and issues on a single project. As a result of the above, EBITDA for the quarter
lands at DKK -3.8m. Besides the lack of contribution margin from the delayed projects and one-time expenses, the
first quarter has developed as expected.
After the end of the quarter, Ennogie has entered into a cooperation agreement with Norlys Energi A/S on meter
reading and customer billing for energy communities in housing associations. The agreement is a significant step
towards realizing Ennogie's ambition to offer housing associations cost-neutral roof replacements, i.e., roof
replacement with solar roofs without or with minimal rent increases for the residents, thereby supporting the public
sector's participation in the green transition and covering a growing need for renovations.
The cooperation covers Norlys and Ennogie jointly markets and offers solar roofs to the public sector, where
Ennogie is responsible for dimensioning and delivery of the technical solar roofing solution, and Norlys
subsequently handles the distribution of the self-produced electricity from the roof.
Ennogie maintains its expectations for 2023 with revenue projected at DKK 95-115m. While due to the mentioned
one-time expenses, the EBITDA guidance has been narrowed down to DKK 5-10m. (previously 5-15mio DKK).
Lars Brøndum Petersen, CEO
Interim report Q1 2023
Letter from the CEO
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Ennogie Solar Group is on a mission to create a future where renewable energy in the built environment is the
norm, not the exception. We are passionate about making a positive impact by developing and deploying
innovative solar technologies and energy optimization practices. With our sleek and stylish active solar roofs,
traditional fossil fuel power plants are becoming a thing of the past.
At Ennogie, we focus on providing great products to buildings and people in need of new roofs for both new
builds and refurbishments, who like the idea of solar energy, and care about the aesthetic appearance of the
building. Our decentralized approach to energy production means energy is generated closer to where it's
used, resulting in a cleaner and more efficient energy system that reduces reliance on non-renewable sources
and lowers energy costs for the consumer.
We are passionate about supporting the European Commission's efforts to develop energy communities
through the European Green Deal, and we see this as an exciting opportunity for Ennogie to contribute to the
energy transition. With the growing demand for renewable energy sources, we're excited to explore new
business models such as virtual power plants, peer-to-peer energy trading, and community-owned renewable
energy projects. Our team is committed to staying at the forefront of these developments to help drive the
transition to a greener future.
Ennogie is dedicated to support multi-family homes, housing associations, and property developers to
establish "energy communities" and optimize the use of self-produced energy. This approach not only
provides the best business case but also has a positive environmental impact.
Housing associations offer enormous potential in the green transition, covering almost 30% of the overall
housing market in Europe. Housing Europe, the European Federation of Public, Cooperative, and Social
Housing, manages over 26 million homes, representing almost 400 million m2 of roofs that could generate
50,000 GWh of energy annually.
Ennogie currently have sales entities in Denmark and Germany. In Germany, the housing market represents a
market of 6 million homes or 100 million m2 roofs that annually could generate 12,500 GWh, while in
Denmark, the housing market represents a market of close to 600,000 homes or 10 million m2 roofs that
annually could generate 1,250 GWh. The German and Danish housing markets alone present a total market
opportunity of 110 million m2 roofs or 220 billion DKK, highlighting the vast potential for energy communities.
One of our most promising partnerships is with one of the biggest Danish energy companies, Norlys, on
energy communities and roof replacements in the public housing association sector. This collaboration
combines Ennogie's technical expertise with Norlys' access to markets and core business of billing and meter
reading, enabling public housing sectors to participate in the green transition and cover growing renovation
needs.
In addition to the energy communities Ennogie also provide solar roofs to private homeowners who are
looking to renovate or build a new home and are interested in sustainable solutions. These homeowners are
motivated buyers who are willing to make a significant investment in their home. Choosing an Ennogie solar
roof instead of a traditional roof will not only support bringing their own energy consumption down but also
allow for selling excess electricity back to the grid, and thereby returning an income. With a potential market
of 130 million m2 roofs or 260 billion DKK in Germany and Denmark, there s a significant opportunity for
sustainable solutions in the single-family home market.
We're excited about the future of Ennogie Solar Group and the significant market opportunities that lie ahead.
Our products are already contributing to the green transition and the restructuring of the European energy
supply. With increasing support from politicians and building owners, we're well-positioned for long-term
structural growth.
Interim report Q1 2023
Our business
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Net revenue
The net revenue for Q1 2023 increased by 100% compared to Q1 2022. Due to delays caused by poor weather
conditions at customer sites in especially Germany, the company was unable to maintain the realized revenue level
from Q4 2022.
The increased presence in Germany is reflected in the development in the revenue split, where Germany comprise
44% of the total revenue in Q1 2023 compared to 25% of the revenue in Q1 2022.
Gross profit
The gross margin for Q1 2023 amounted to DKK 5.3m equaling to a gross margin of 23.9%, compared to DKK 4m and
36.2% in Q1 2022.
The development in the gross margin is driven by several factors. For liquidity optimization purposes panels was sold
at cost price, while in transit from China to Denmark, and repurchased upon arrival in Denmark. In addition, one
bigger B2B project is not generating the desired gross margin. These two factors have a negative impact on the
reported gross margin for Q1 2023 of 6.8 percentage points.
Further, the gross margin for Q1 2022 was positively impacted by a different revenue recognition model on German
projects, which was adjusted later in 2022.
EBITDA
The EBITDA for Q1 2023 was DKK -3.8m and DKK 0.1m for Q1 2022. The result for Q1 2023 includes high costs for legal
advisors, in relation to a legal case in Germany. The legal case was won, but the company incurred a significant
amount of costs in the process. Further, Ennogie has implemented a new ERP system during Q1 2023, and have
incurred some one-time costs in relation to this. The high costs related to external advisors in combination with the
lower activity level and reduced gross margin result in an EBITDA below Q1 2022.
Cash flows
The free cash flow for Q1 2023 was DKK -1.3m (Q1 2022: DKK -3,6m), where optimizations in the net working capital
positions was off-setting the negative operating result for the period. The optimizations were e.g. driven by reducing
capital tied in inventory by the beforementioned sale of raw materials while in transit from China to Denmark.
Cash flow from financing activities for Q1 2023 was DKK -1.3m compared to DKK -0.6m in Q1 2022. The development
is caused by increased installments on loans established during 2022.
Revenue per quarter (DKKm)
Q1 revenue per country
100% = DKK 22,0m 100% = DKK 11m
Interim report Q1 2023
Financial highlights
4
4.3
2.4
6.2
11.0
10.8
13.3
26.0
22.0
Q2-22Q4-21 Q1-23Q2-21 Q3-21 Q4-22Q1-22 Q3-22
Denmark
56%
44%
Germany
25%
75%
Denmark
Germany
2023
2022
Ennogie maintains its expectations for 2023 with revenue projected at DKK 95-115m. While due to the mentioned
one-time expenses, the EBITDA guidance has been narrowed down to DKK 5-10m. (previously 5-15mio DKK).
As stated in the annual report for 2022 the financial outlook is based on a strong order book for 2023, as the Group
ended 2022 with an order book of DKK 60m and have signed new orders in Q1 2023 of DKK 28.5m.
The main uncertainties remain the Company's ability to scale the organization and production capacity successfully in
line with the growth in the activity during 2023. In addition, changes in the market conditions especially related to
the development in the interest rates, electricity prices and the prices and access to installation craftsmen can impact
the order uptake in 2023.
Interim report Q1 2023
Outlook 2023
5
Financial calendar 2023
Expected communication of financial information for the
year:
30 August 2023
Interim report Q2 2023
17 November 2023
Interim report Q3 2023
Interim report Q1 2023
Financial statements
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Interim report Q1 2023
Comprehensive Income Statement
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Amounts in DKK '000 Note Q1 2023 Q1 2022 FY 2022
Revenue 3, 4 21,969 10,951 61,116
Cost of sales (16,713 ) (6,987 ) (45,722 )
Gross margin 5,256 3,964 15,394
Other external expenses (3,334 ) (1,165 ) (9,197 )
Staff costs (6,437 ) (3,251 ) (17,623 )
Work performed by the entity and capitalized 375 375 1,500
Other operating income 373 157 2,032
Operating result before depreciations and amortizations (EBITDA) (3,767 ) 79 (7,893 )
Depreciation, amortization and impairment (878 ) (533 ) (2,282 )
Operating result (EBIT) (4,645 ) (453 ) (10,175 )
Financial items net (351 ) (96 ) (1,543 )
Result before tax (4,996 ) (549 ) (11,719 )
Corporation tax for the period 0 0 14
Result for the period (4,996 ) (549 ) (11,705 )
Exchange rate adjustments of foreign subsidiaries (10 ) 0 0
Comprehensive income for the period (5,005 ) (549 ) (11,705 )
Earnings per share, DKK (0.18 ) (0.02 ) (0.43 )
Earnings per share, diluted, DKK (0.16 ) (0.02 ) (0.38 )
Interim report Q1 2023
Financial position statement
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Amounts in DKK '000 Note 31.03.23 31.03.22 31.12.22
Intangible assets 13,714 12,580 13,538
Tangible assets 2,243 895 1,120
Deposits 201 294 201
Other financial assets 2,096 751 2,057
Non-current assets 3 18,253 14,520 16,916
Inventories 14,613 9,170 15,643
Trade receivables 3,254 4,114 6,765
Contract assets 6,735 0 4,045
Tax receivables 294 18 0
Other receivables 656 1,068 968
Prepayments 892 473 955
Receivables 11,831 5,673 12,733
Cash & cash equivalents 9,565 6,668 11,966
Current assets 36,008 21,510 40,342
Total assets 54,261 36,030 57,258
Amounts in DKK '000 Note 31.03.23 31.03.22 31.12.22
Share capital 27,784 26,250 27,784
Treasury shares (561 ) (561 ) (561 )
Currency adjustments (10 ) 0 (2 )
Retained earnings (19,745 ) (11,237 ) (15,296 )
Equity 7,468 14,452 11,925
Provisions 440 226 440
Lease liabilities 1,102 0 7
Interest-bearing debt 17,688 4,782 18,524
Deferred income 2,365 2,996 2,522
Non-current liabilities 21,596 8,003 21,494
Current part of long term interest-bearing debt 3,719 943 3,925
Bank debts 447 574 479
Lease liabilities 455 450 559
Prepayments from customers 11,626 3,910 9,910
Trade payables 5,894 3,757 3,934
Other liabilities 2,430 3,317 4,404
Deferred income 627 624 627
Current liabilities 25,197 13,575 23,839
Total liabilities 46,792 21,579 45,332
Total equity and liabilities 54,261 36,030 57,258
Interim report Q1 2023
Equity Statement
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Amounts in DKK '000 Share capital
Treasury
shares
Currency
adjustments
Retained
earnings
Total
Equity at 1 January 2023 27,784 (561 ) (2 ) (15,296 ) 11,925
Result for the period 0 0 0 (4,996 ) (4,996 )
Other comprehensive income 0 0 (10 ) 0 (10 )
Share-based payments 0 0 0 548 548
Equity at 31 March 2023 27,784 (561 ) (12 ) (19,743 ) 7,468
Share capital
Treasury
shares
Currency
adjustments
Retained
earnings
Total
Equity at 1 January 2022 26,250 (561 ) 0 (10,688 ) 15,001
Result for the period 0 0 0 (549 ) (549 )
Other comprehensive income 0 0 0 0 0
Equity at 31 March 2022 26,250 (561 ) 0 (11,237 ) 14,452
Interim report Q1 2023
Cash Flow Statement
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Amounts in DKK '000 Q1 2023 Q1 2022 FY 2022
Operating result (EBIT) (4,645 ) (453 ) (10,175 )
Depreciation, amortization and impairment 878 533 2,282
Share-based payments 548 0 548
Changes in provisions 0 (26 ) 188
Working capital movements
- Change in inventories 1,030 738 (5,734 )
- Change in receivables 1,196 (1,331 ) (8,409 )
- Change in prepayments from customers 1,715 142 6,142
- Change in trade payables, etc. (171 ) (2,739 ) (1,945 )
Cash flow from operating activities 551 (3,136 ) (17,103 )
Interests paid/received (351 ) (96 ) (1,543 )
Income taxes paid (294 ) 0 31
Cash flow from operations (94 ) (3,233 ) (18,615 )
Transaction costs charged to equity 0 0 (100 )
Acquisition of property, plant and equipment (359 ) 0 (214 )
Investment in intangible assets (554 ) (408 ) (2,516 )
Change in financial assets (39 ) (6 ) (1,218 )
Cash flow from investments (952 ) (414 ) (4,048 )
Free cash flow (1,045 ) (3,646 ) (22,664 )
Proceeds from capital increase 0 0 8,184
Proceeds from borrowings 0 0 18,000
Repayment of borrowings (1,075 ) (477 ) (1,847 )
Change in leasing liabilities (272 ) (117 ) (612 )
Cash flow from financing activities (1,347 ) (593 ) 23,725
Net cash flow for the period (2,392 ) (4,240 ) 1,061
Cash and cash equivalent at the beginning of the period 11,966 10,908 10,908
Exchange rate adjustments on cash (10 ) 0 (2 )
Net cash flow for the period (2,392 ) (4,240 ) 1,061
Cash and cash equivalent at the end of the period 9,565 6,668 11,966
Interim report Q1 2023
Notes
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1. Accounting policies
The interim report is presented in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and
additional Danish disclosure requirements for interim reporting of listed companies. An interim report has not been
prepared for the Parent company.
The accounting policies applied in this interim report are consistent with those applied in the Company’s 2022 annual
report which was presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the
EU and additional Danish disclosure requirements for annual reports of listed companies. We refer to the 2022
annual report for a more detailed description of the accounting policies.
The applied accounting policies are unchanged compared to the annual report for 2022. New or amended standards
and interpretations becoming effective for the financial year 2023 have no material impact on the interim report.
2. Estimates and assumptions
The preparation of interim financial reports require management to make financial estimates and assumptions that
have an impact on how accounting policies are applied on the recognition of assets, liabilities, income and expenses.
Actual results might be different from these estimates.
The significant assumptions made by management in preparing the interim report, and the material uncertainties
associated with these assumptions and estimates, are unchanged from those used in preparing the annual report as
per 31 December 2022.
3. Segment information
The Group does not have reportable segments, as management does not make decisions on aggregated financials. All
decisions and the ongoing review of the financial performance are based on the consolidated figures of the Group.
4. Revenue
5. Events after the reporting date
No events have occurred since the reporting date that have had a material impact on the financial position of the
Group.
Amounts in DKK '000 Q1 2023 Q1 2022 FY 2022
Revenue, geographical segments
Denmark 12,313 8,201 24,582
Germany 9,655 2,750 36,534
Other 0 0 0
Total revenue 21,969 10,951 61,116
Non-current assets, geographical segments
Denmark 16,591 14,430 16,572
Germany 1,661 89 344
Total non-current assets 18,253 14,520 16,916
Amounts in DKK '000 Q1 2023 Q1 2022 FY 2022
Timing of revenue recognition
At a point in time 18,371 9,175 50,505
Over time 3,597 1,776 10,611
Revenue from contracts with customers 21,969 10,951 61,116
Interim report Q1 2023
Management’s statement
Executive Management
Board of Directors
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