Interim report for
Q2 2023
Company reg. no.: DK39703416
1
Ennogie has in the second quarter of 2023 more than doubled its revenue compared to the same period in 2022.
Revenue for the first six months of 2023 was DKK 44.5m, compared to DKK 21.8m in the same period in 2022. While
revenue has grown significantly, we have experienced several order being postponed by the customers due to a
shortage on carpenters in Germany, which has pushed the deliveries in to second half of 2023.
The interest for our products is still increasing, primarily driven by offers to housing associations and property
developers, which is in line with our expectations from the increased efforts towards these segments. The overall
level of quotation is up by 60% compared to last year. However, the order intake for the first six month has
decreased to DKK 43.2m from DKK55.5m in the same period in 2022. This is affected by the increased interest rates
and lower electricity prices, which have an impact on the business case for the customer. Further, a renewed Danish
energy supply law, where electricity sharing between buildings on the same plot has been prohibited, has had
significant impact on the order intake in Denmark.
As part of our growth journey, we are continuously working on maturing and improving our purchase and delivery
processes, which has resulted in improvements in the gross margins in both of our markets in Denmark and
Germany. We expect this trend to continue throughout the year as we see the full impact of the initiatives taken in
the first half of 2023. Although we have witnessed tangible improvements from our new processes, the projected
cost savings have not fully materialized to the levels we anticipated for the first half of 2023.
The market development and in particular the restraints the new energy supply law in Denmark is impacting our
expectation to the revenue for 2023, which is adjusted to DKK 95m to 110m, from the previous expectation of DKK
95m to DKK 115m. This, together with the less materialized savings has reduced our EBITDA expectations for 2023 to
DKK -4m to DKK 2m, from previous DKK 5m to 10m.
Ennogie's business strategy revolves around a combination of innovative product development and a tightly
integrated ecosystem. One of the key aspects of Ennogie's strategy is our focus on creating our own products,
including hardware, software, and concepts, which sets us apart from many other companies in the industry.
First and foremost, Ennogie places a strong emphasis on design and user experience. We strive to create products
that are not only functional but also aesthetically pleasing. This focus on design has been a cornerstone of Ennogie's
strategy since the early days of the company and has played a significant role in our success.
In today's dynamic business landscape, market trends, customer preferences, and competitive forces evolve rapidly.
To maintain a competitive edge, Ennogie has a strategy that allows us to pivot our products effectively.
As a response to the swiftly changing market conditions; increasing interest rates and dropping electricity prices for
private households, we have through a focused approach to product development that prioritizes adaptability,
responsiveness, and customer-centricity developed Sun Spot.
Sun Spot is Ennogie’s new in-roof solar system that blends seamlessly into the roofline, creating a clean, modern, and
sophisticated appearance. With a set number of standard options, our customers have the flexibility to choose the
perfect match for the style of the home and energy consumption. These standardized configurations also enable us
to streamline the delivery process, optimizing internal costs without sacrificing the quality.
Sun Spot makes use of Ennogie’s solar technology to maximize energy generation and own efficient use of energy.
The first Sun Spots will be available from end of September.
Further, one of the products currently in development is our battery with the purpose of optimizing energy
consumption. A significant milestone has now been achieved, as a functional model of the complete battery has
been demonstrated internally.
The demonstration consisted of the complete battery, including the Battery Management System , battery charger,
inverter, and the overall control module which will be wirelessly controlled by our smart meter.
To ensure quality and full integration with our other products, the upcoming period will be used for final live tests
and simulations before final certifications. Product launch is expected in Q1, 2024.
The battery adheres to Ennogie’s principles of easy installation, aesthetics, and good economics. The battery is
launched in a scalable and modular setup, where each battery pack has a capacity of 1.5 kWh, making it easy to
choose the right capacity and expand the capacity if the need arises.
After the end of the quarter, Ennogie has entered into a cooperation agreement with Dansk Kabel TV (DKTV), a
market leader in delivering telecommunications solutions, including cable TV and broadband services, to residential
and commercial clients across Denmark. DKTV brings to the table significant expertise in digital solutions tailored for
housing associations, as well as deep insights into navigating resident democracies—assets we consider invaluable to
our mission. The agreement with DKTV is yet another important step for Ennogie in realizing our ambition to offer
cost-neutral roof replacements to housing associations, meaning roof replacement with solar panel roofs without or
with significantly lower rent increases for residents, thereby supporting the participation of housing associations in
the green transition and simultaneously addressing a growing renovation demand.
In June Ennogie issued new shares, which brought in DKK 13.1m in new capital. The issuance is driven by a desire to
finance the ongoing expansion of working capital in Ennogie. Ennogie is increasingly focusing on housing associations
and the B2B segment in both Germany and Denmark, where larger orders require a bigger inventory, security and
credit. The increased procurement of panels and inverters primarily contributes to the increase in capital tied up in
inventory buildup.
Ennogie expect a further capital increase through the exercise of warrants to the amount of DKK 12.3m in the last
quarter of the year.
Lars Brøndum Petersen, CEO
Interim report Q2 2023
Letter from the CEO
2
Interim report Q2 2023
3
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 Q2 2023
Our business
4
Highlights Q2 2023
Net revenue
The net revenue for Q2 2023 was DKK 22.5m and up by 107.7% compared to DKK 10.8m Q2 2022. The revenue for Q2
2023 is negatively impacted by a widespread scarcity of carpenter capacity in Germany, which is preventing
customers from removing their current roofs and adequately preparing their structures for the installation of the
Ennogie Solar Roof.
The split in revenue per country follow the trend from previous quarters, where the German market is increasing its
proportion of the Groups total revenue and represents 82% of the Q2 2023 revenue versus 71% in Q2 2022.
Gross profit
The gross profit for Q2 2023 amounted to DKK 6.5m equaling to a gross margin of 29.0%, compared to DKK 1.8m and
16.2% in Q2 2022. The gross margin for Q2 at 29.0%, is negatively impacted by elevated installation costs on projects
delivered in Germany.
The gross margin for the German operations is currently lower compared to the activity in Denmark. This discrepancy
can be attributed to the relative maturity of the German operation, particularly in terms of the expansion and
maturation of the installation capacity, which is affecting the gross margin for this specific market. The gross margin is
showing a positive trend in each market individually. This positive development is not immediately evident when
looking at the development in the overall figures quarter by quarter. This is primarily due to a change in the revenue
distribution between the two markets, where the larger portion of revenue generated from the German market is
counterbalancing the underlying improvements in the gross margin.
EBITDA
The EBITDA for Q2 2023 was DKK -1.5m and DKK -4.1m for Q2 2022. The organizational capacity and size of the
company in Q2 2023 exceeded the actual level of business activity. This, in combination with the lower gross margin
on the delivered projects, has a negative impact on the realized EBITDA level for the quarter.
Depreciations and amortization
In Q2 2023, depreciation and amortization costs reached DKK 0.9 million, up from DKK 0.6 million in the same quarter
of the previous year. This increase is directly attributable to heightened business activity, which has consequently led
to an expansion in the company's asset base.
Financial items
The net financial items for Q2 2023 was DKK -0.5m compared to DKK -0.6m in Q2 2022. The financial items for Q2
2022 were significantly impacted by costs associated with establishing a new loan facility in May of that year. The
financial items for Q2 2023 primarily reflect interest expenses arising from an increase in interest-bearing debt.
Revenue per quarter (DKKm)
Q2 revenue per country
100% = DKK 22.5m 100% = DKK 10.8m
Interim report Q2 2023
Financial highlights
5
18%
82%
Denmark
Germany
29%
Germany
Denmark
71%
2023
2022
2.4
6.2
11.0
10.8
13.3
26.0
22.0
22.5
Q1-22Q3-21 Q4-21 Q2-22 Q3-22 Q4-22 Q2-23Q1-23
Working capital
The working capital amounted to DKK 7.7m at the end of Q2 2023 compared to DKK -0.7m end of Q2 2022. This
development can largely be attributed to a heightened activity level, which is reflected in an inventory balance that
was DKK 6.2m higher at the end of Q2 2023 compared to the same period last year. The increased capital allocation
to inventories has been effectively counterbalanced by a rise in customer prepayments and supplier liabilities,
mitigating the overall financial impact.
A further consequence of this increased activity level is a rise in receivables from sales, which totaled DKK 13.5m at
the end of Q2 2023. This represents an increase of DKK 5.3m when compared to the end of Q2 2022.
Cash flow
The free cash flow for first half of 2023 was DKK -8.8m compared to DKK -8.1m in H1 2022, both mainly driven by the
negative operating result for the periods.
Cash flow from financing activities for H1 2023 was DKK 10.5m, where the issuance of new shares in June brought in
new capital of DKK 13.1m. H1 2022 cash flow from financing activities was DKK 17.2m including a new loan facility of
DKK 10m and DKK 8.1m in proceeds from exercise of warrants.
Summary H1 2023
Net revenue
Driven by strong growth in both of markets in Denmark and Germany, Ennogie’s revenue for the first half of 2023
more than doubled, compared to the same period in 2022. Revenue for H1 2023 was realized at DKK 44.5m
compared to DKK 21.8m in H1 2022. While these figures show significant growth, it is important to note that the
activities in the first half of 2023 were affected by a carpenter shortage in Germany. This labor constraint has led to
the postponement of several orders, which has been rescheduled for the second half of the year.
Gross profit
Driven by the growth in revenue the gross profit for the first half of 2023 increased by 114.5% reaching DKK 11.8m.
This corresponds to a gross margin of 26.5%, compared to DKK 5.5m and 16.2% in first half of 2022. The improved
gross margin is a result of reduced material and freight costs on key solar roof components. Additionally, the ongoing
maturity of the delivery and installation processes, especially in the expanding German market, has been a significant
factor in elevating the profitability of the completed projects.
EBITDA
The EBITDA for H1 2023 was DKK -5.3m and DKK -4.1m for H1 2022. The EBITDA for H1 2023 suffered due to project
delays and an organizational structure sized for higher activity. Combined with increased installation costs from the
rapid German expansion, this led to a negative development in the EBITDA, despite greater activity compared to H1
2022
Working capital 30 June 2023 (DKKm)
Working capital 30 June 2022 (DKKm)
Interim report Q2 2023
Financial highlights
6
14.9
7.7
13.5
Other receivables
1.6
Inventories Receivables
from sale
Prepayments
from customers
Trade payables
-7.5
-11.0
-3.7
Net working
capital
Other liabilities
8.8
-0.7
8.2
-8.3
Other receivablesReceivables
from sale
Inventories
0.8
-4.1
Trade payables Prepayments
from customers
-6.1
Other liabilities Net working
capital
The market development and in particular the restraints the new energy supply law in Denmark is impacting our
expectation to the revenue for 2023, which is adjusted to DKK 95m to 110m (previously DKK 95m to DKK 115m). This,
together with the less materialized savings from process maturity has reduced our EBITDA expectations for 2023 to
DKK -4m to DKK 2m (previously DKK 5m to 10m).
As previously communicated the financial outlook on revenue 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 H1 2023 of DKK 43m.
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 Q2 2023
Outlook 2023
7
Financial calendar 2023
Expected communication of financial information for the
year:
17 November 2023
Interim report Q3 2023
Interim report Q2 2023
Financial statements
8
Interim report Q2 2023
Comprehensive Income Statement
9
Amounts in DKK '000 Note Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022
Revenue 3, 4 22,503 10,835 44,472 21,786 61,116
Cost of sales (15,975 ) (9,080 ) (32,688 ) (16,294 ) (45,722 )
Gross margin 6,528 1,755 11,784 5,491 15,394
Other external expenses (2,613 ) (2,442 ) (5,947 ) (3,607 ) (9,197 )
Staff costs (6,046 ) (3,952 ) (12,483 ) (6,975 ) (17,623 )
Work performed by the entity and capitalized 375 375 750 750 1,500
Other operating income 262 157 635 314 2,032
Operating result before depreciations and amortizations (EBITDA) (1,495 ) (4,107 ) (5,261 ) (4,028 ) (7,893 )
Depreciation, amortization and impairment (936 ) (626 ) (1,814 ) (1,158 ) (2,282 )
Operating result (EBIT) (2,430 ) (4,733 ) (7,075 ) (5,186 ) (10,175 )
Financial items net (511 ) (590 ) (862 ) (686 ) (1,543 )
Result before tax (2,942 ) (5,323 ) (7,937 ) (5,872 ) (11,719 )
Corporation tax for the period 0 (2 ) 0 (2 ) 14
Result for the period (2,942 ) (5,325 ) (7,937 ) (5,874 ) (11,705 )
Exchange rate adjustments of foreign subsidiaries 2 0 (8 ) 0 (2 )
Comprehensive income for the period (2,940 ) (5,325 ) (7,945 ) (5,874 )
(11,708 )
Earnings per share, DKK (0.11 ) (0.20 ) (0.19 ) (0.15 ) (0.43 )
Earnings per share, diluted, DKK (0.09 ) (0.17 ) (0.17 ) (0.13 ) (0.38 )
Interim report Q2 2023
Financial position statement
10
Amounts in DKK '000 Note 30.06.23 30.06.22 31.12.22
Intangible assets 14,074 12,568 13,538
Tangible assets 3,118 871 1,120
Deposits 201 294 201
Other financial assets 2,696 750 2,057
Non-current assets 3 20,089 14,483 16,916
Inventories 14,932 8,751 15,643
Trade receivables 4,233 6,269 6,765
Contract assets 9,218 1,927 4,045
Tax receivables 293 18 0
Other receivables 839 242 968
Prepayments 802 600 955
Receivables 15,386 9,057 12,733
Cash & cash equivalents 13,562 20,022 11,966
Current assets 43,880 37,830 40,342
Total assets 63,969 52,314 57,258
Amounts in DKK '000 Note 30.06.23 30.06.22 31.12.22
Share capital 28,394 27,784 27,784
Treasury shares (561 ) (561 ) (561 )
Currency adjustments (8 ) 0 (2 )
Retained earnings (10,158 ) (10,063 ) (15,296 )
Equity 17,666 17,160 11,925
Provisions 483 280 440
Lease liabilities 1,644 29 7
Interest-bearing debt 16,559 12,606 18,524
Deferred income 2,209 2,839 2,522
Non-current liabilities 20,894 15,755 21,494
Current part of long term interest-bearing debt 3,992 2,720 3,925
Bank debts 414 620 479
Lease liabilities 904 371 559
Prepayments from customers 11,046 8,345 9,910
Trade payables 7,536 4,054 3,934
Other liabilities 891 2,664 4,404
Deferred income 627 624 627
Current liabilities 25,409 19,399 23,839
Total liabilities 46,304 35,153 45,332
Total equity and liabilities 63,970 52,314 57,258
Interim report Q2 2023
Equity Statement
11
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 (7,937 ) (7,937 )
Other comprehensive income 0 0 (8 ) 0 (8 )
Capital increase 610 0 0 12,430 13,040
Share-based payments 0 0 0 647 647
Equity at 30 June 2023 28,394 (561 ) (11 ) (10,156 ) 17,666
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 (5,874 ) (5,874 )
Other comprehensive income 0 0 0 0 0
Capital increase 1,534 0 0 6,499 8,033
Equity at 30 June 2022 27,784 (561 ) 0 (10,063 ) 17,160
Interim report Q2 2023
Cash Flow Statement
12
Amounts in DKK '000 H1 2023 H1 2022 FY 2022
Operating result (EBIT) (7,075 ) (5,186 ) (10,175 )
Depreciation, amortization and impairment 1,814 1,158 2,282
Share-based payments 647 0 548
Changes in provisions 43 28 188
Working capital movements
- Change in inventories 711 1,157 (5,734 )
- Change in receivables (2,360 ) (4,715 ) (8,409 )
- Change in prepayments from customers 1,135 4,577 6,142
- Change in trade payables, etc. (225 ) (3,252 ) (1,945 )
Cash flow from operating activities (5,311 ) (6,232 ) (17,103 )
Interests paid/received (862 ) (686 ) (1,543 )
Income taxes paid (293 ) (2 ) 31
Cash flow from operations (6,466 ) (6,920 ) (18,615 )
Transaction costs charged to equity (68 ) (150 ) (100 )
Acquisition of property, plant and equipment (373 ) (225 ) (214 )
Investment in intangible assets (1,298 ) (774 ) (2,516 )
Change in financial assets (639 ) (4 ) (1,218 )
Cash flow from investments (2,378 ) (1,153 ) (4,048 )
Free cash flow (8,844 ) (8,073 ) (22,664 )
Proceeds from capital increase 13,108 8,183 8,184
Proceeds from borrowings 0 10,000 18,000
Repayment of borrowings (1,964 ) (829 ) (1,847 )
Change in leasing liabilities (695 ) (167 ) (612 )
Cash flow from financing activities 10,449 17,187 23,725
Net cash flow for the period 1,605 9,114 1,061
Cash and cash equivalent at the beginning of the period 11,966 10,908 10,908
Exchange rate adjustments on cash (8 ) 0 (2 )
Net cash flow for the period 1,605 9,114 1,061
Cash and cash equivalent at the end of the period 13,562 20,022 11,966
Interim report Q2 2023
Notes
13
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.
Interim report Q2 2023
Notes
14
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 Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022
Timing of revenue recognition
At a point in time 18,906 9,059 34,208 21,786 50,505
Over time 3,597 1,776 10,264 0 10,611
Amounts in DKK '000 Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022
Revenue, geographical segments
Denmark 4,133 3,107 16,447 8,346 24,582
Germany 18,370 7,728 28,025 13,439 36,534
Other 0 0 0 0 0
Total revenue 22,503 10,835 44,472 21,786 61,116
Amounts in DKK '000 30.06.23 30.06.22 31.12.22
Non-current assets, geographical segments
Denmark 14,219 14,437 16,572
Germany 2,697 201 344
Total non-current assets 20,089 14,483 16,916
Interim report Q2 2023
Management’s statement
Executive Management
Board of Directors
15