Interim report for
Q3 2023
Company reg. no.: DK39703416
1
“Powering Growth in Shifting Landscapes"
Even in a challenging construction market, Ennogie not only weathers the storm but emerges stronger
than ever. Fueled by an unyielding dedication to innovation, quality, and sustainability, Ennogie defies
industry norms by doubling its revenue to DKK 69m in the first three quarters of 2023 and brings it’s first
positive EBITDA quarter with an EBITDA of DKK 0.8m in Q3 2023.
The foundation of this success lies in Ennogie's foresight, recognizing the growth potential at the
intersection of the renewable energy sector and construction industry. In response to the economic
challenges facing construction, Ennogie strategically focuses on consolidating efforts in the German and
Danish markets. This involves fine-tuning operations, resulting in a 140% increase in gross margins to DKK
18.5m. Concurrently, the optimization and innovation of products ensure high efficiency and customer
satisfaction, solidifying Ennogie's position as an industry leader. Customers aren't just investing in a roof;
they're investing in a sustainable future. Ennogie's Environmental Product Declaration (EPD) is now
registered in both Germany and Denmark.
Ennogie's solar roof products and energy solutions, renowned for cutting-edge technology and aesthetic
appeal, are the preferred choice for environmentally and financially conscious homeowners and
businesses. As awareness of Ennogie's commitment to eco-friendly energy solutions spreads, contributing
to a 30% increase in quotations compared to the same period in 2022. The German order intake has
maintained the same high level as 2022, and hence not suffered any decline as the Danish has. The order
intake for the period has decreased to DKK 59m from DKK 77m in the same period in 2022. This is
primarily affected by the increased interest rates, which have an impact on the business case for the
customers yet being a good strong case. 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.
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.
Looking forward, Ennogie capitalizes on the low point in the construction industry to explore new
markets globally. Recognizing the global demand for sustainable solutions and with the recent panel IEC
certification, Ennogie evaluates opportunities for expansion in countries where solar roof adoption is in
its early stages but prioritized on the political agenda. Leveraging expertise and experience, Ennogie
establishes a presence in these untapped markets, creating new revenue streams and prosperity in the
years to come.
In parallel with geographical expansion, Ennogie invests in ongoing research and development efforts,
ensuring its products remain at the forefront of innovation. Commitment to initiatives like SunSpot and
Sunbird enables Ennogie to stay ahead of market demands, exhibiting resilience in the face of industry
challenges.
Ennogie's ability to navigate a declining construction market, double revenue, and explore new
opportunities underscores the transformative power of innovation, strategic thinking, and a steadfast
commitment to creating a positive impact on the planet and our stakeholders.
Ennogie initiate the final exercise of a warrant program from 2019 that expect to bring in a capital
increase that amounts to DKK 12.3m in the last quarter of the year.
Lars Brøndum Petersen, CEO
Interim report Q3 2023
Letter from the CEO
2
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
opportunityof 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 Q3 2023
Our business
3
Highlights Q3 2023
Net revenue
In Q3 2023, net revenue reached DKK 24.6m, marking an 85% increase from DKK 13.3m in Q3 2022.
The German market continues to represent the highest proportion of the Groups total revenue and increased its
contribution to 77% of the Q3 2023 revenue versus 65% in Q3 2022.
Gross profit
For Q3 2023, the gross profit was DKK 6.7m, equaling a gross margin of 27,2%, in contrast to DKK 2.2m and 16.7% in
Q3 2022. The good development is foreseen to continue coming from stronger internal delivery processes and
adjusted pricing om installations and goods.
Both the German and the Danish market are showing improved margins, and the continued maturity of the business
is expected to bring further improvements to the contribution margins.
EBITDA
For Q3 2023, the EBITDA reached DKK 0.8m, showing a positive shift from a negative EBITDA of DKK -3.2m in Q3 2022.
In addition to the increased gross profit, this improvement in Q3 EBITDA is positively impacted by the cancellation of
previously granted warrants after several board and management team members opted to forfeit their warrant
rights. Further, the EBITDA for Q3 2023 is positively impacted by capitalization of internal staff costs related to the
development and implementation of a sales platform and ERP system.
Depreciations and amortization
In Q3 2023, depreciation and amortization costs reached DKK 0.8 million, up from DKK 0.5 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 Q3 2023 was DKK -0.6m compared to DKK -0.1m in Q3 2022. The financial items for Q3
2023 primarily reflect interest expenses arising from an increase in interest rate, increased interest-bearing debt and
exchange rate changes in relation to purchases.
Revenue per quarter (DKKm)
Q3 revenue per country
100% = DKK 24.6m 100% = DKK 13.3m
Interim report Q3 2023
Financial highlights
4
23%
77%
Denmark
Germany
35%
Denmark
65%
Germany
2023
2022
Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23
6.2
11.0
10.8
13.3
26.0
22.0
22.5
24.6
Working capital
The working capital amounted to DKK 12.8m at the end of Q3 2023 compared to DKK 3.3m end of Q3 2022. This
development can largely be attributed to a heightened activity level, which is reflected in an inventory balance that
was DKK 2.8m higher at the end of Q3 2023 compared to the same period last year. The increased capital allocation
to inventories and contract assets combined with a drop in customer receivables, prepayments and other liabilities,
raises the working capital with 9.5 m.
Cash flow
The free cash flow for Q1-Q3 2023 was DKK -15.7m compared to DKK -17.5m in Q1-Q3 2022, mainly driven by the
development in working capital and the negative operating result for the periods.
Cash flow from financing activities for Q1-Q3 2023 was DKK 9.5m, where the issuance of new shares in June brought
in new capital of DKK 13.1m. Q1-Q3 2022 cash flow from financing activities was DKK 16.3m including a new loan
facility of DKK 10m and DKK 8.1m in proceeds from exercise of warrants.
Summary Q1-Q3 2023
Net revenue
Ennogie's revenue for the first nine months of 2023 reached DKK 69m, showing a substantial increase from DKK 35m
during the same period in 2022, attributed to the expansion of both operating markets in Denmark and Germany.
Gross profit
Driven by the growth in revenue the gross profit for the first nine months of 2023 increased by 140% reaching DKK
18.5m. This corresponds to a gross margin of 26,8%, compared to DKK 7.7m and 22,0% in 2022. The gross margins on
the delivered projects are improving, and the development is expected to continue going forward, particularly in the
German market. The increase in gross margin is attributed to reduced costs of materials and freight for essential solar
roof components. Moreover, the improvement of delivery and installation procedures, particularly in the growing
German market, has played a crucial role in increasing the profitabilityof delivered projects
EBITDA
The EBITDA for the first three quarters of 2023 was DKK -4.4m and DKK -7.2m for same period in 2022. The EBITDA for
the first nine months in 2023 has suffered due to project delays and an organizational structure sized for higher
activity in especially H1. In Q3 2023 a cancellation of warrants was recognized, positively impacting the financials for
2023.
Working capital 30 September 2023 (DKKm)
Working capital 30 September 2022 (DKKm)
Interim report Q3 2023
Financial highlights
5
Inventories Contract Assets Receivables
from sale
1.5
Other
receivables
-5.9
Trade payables
-9.2
Prepayments
from customers
-4.7
Other liabilities Net working
capital
18.0
9.5
3.6
12.8
Inventories Contract Assets Receivables
from sale
1.4
Other
receivables
-5.9
Trade payables
-11.2
Prepayments
from customers
-5.4
Other liabilities Net working
capital
15.2
2.3
6.8
3.3
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 kept at DKK 95m to 110m. This, together with materialized savings from
process maturity confirms our EBITDA expectations for 2023 to DKK -4m to DKK 2m.
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 Q1-Q3 2023 of DKK59m.
Interim report Q3 2023
Outlook 2023
6
Interim report Q3 2023
Financial statements
7
Interim report Q3 2023
Comprehensive Income Statement
8
Amounts in DKK '000 Note Q3 2023 Q3 2022 Q1-Q3 2023 Q1-Q3 2022 FY 2022
Revenue 4, 5 24,637 13,297 69,109 35,082 61,116
Cost of sales (17,925 ) (11,079 ) (50,613 ) (27,373 ) (45,722 )
Gross profit 6,712 2,218 18,496 7,709 15,394
Other external expenses (2,295 ) (2,305 ) (8,242 ) (5,912 ) (9,197 )
Staff costs (4,823 ) (3,817 ) (17,306 ) (10,792 ) (17,623 )
Work performed by the entity and capitalized 923 375 1,673 1,125 1,500
Other operating income 306 334 941 647 2,032
Operating result before depreciations and amortizations (EBITDA)
Depreciation, amortization and impairment (793 ) (539 ) (2,606 ) (1,697 ) (2,282 )
Operating result (EBIT) 30 (3,734 ) (7,045 ) (8,920 ) (10,175 )
Financial items net (588 ) (119 ) (1,450 ) (805 ) (1,543 )
Result before tax (558 ) (3,853 ) (8,495 ) (9,725 ) (11,719 )
Corporation tax for the period 0 0 0 (2 ) 14
Result for the period (558 ) (3,853 ) (8,495 ) (9,727 ) (11,705 )
Exchange rate adjustments of foreign subsidiaries (9 ) 0 (19 ) (2 ) (2 )
Comprehensive income for the period (567 ) (3,853 ) (8,514 ) (9,729 ) (11,708 )
Earnings per share, DKK (0.02 ) (0.14 ) (0.16 ) (0.27 ) (0.43 )
Earnings per share, diluted, DKK (0.02 ) (0.12 ) (0.14 ) (0.23 ) (0.38 )
Interim report Q3 2023
Financial position statement
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Amounts in DKK '000 Note 30.09.23 30.09.22 31.12.22
Intangible assets 15,035 13,105 13,538
Tangible assets 2,778 770 1,120
Deposits 201 294 201
Other financial assets 2,909 1,322 2,057
Non-current assets 4 20,923 15,491 16,916
Inventories 18,020 15,221 15,643
Trade receivables 3,572 6,827 6,765
Contract assets 9,540 2,335 4,045
Tax receivables 0 621 0
Other receivables 681 796 968
Prepayments 805 637 955
Receivables 14,598 11,216 12,733
Cash & cash equivalents 5,727 9,778 11,966
Current assets 38,345 36,215 40,342
Total assets 59,268 51,705 57,258
Amounts in DKK '000 Note 30.09.23 30.09.22 31.12.22
Share capital 28,394 27,784 27,784
Treasury shares (561 ) (561 ) (561 )
Currency adjustments (21 ) (2 ) (2 )
Retained earnings (11,521 ) (13,866 ) (15,296 )
Equity 16,291 13,355 11,925
Provisions 545 324 440
Lease liabilities 1,356 17 7
Interest-bearing debt 15,917 12,269 18,524
Deferred income 2,052 2,682 2,522
Non-current liabilities 19,870 15,292 21,494
Current part of long term interest-bearing debt 4,039 2,501 3,925
Bank debts 381 511 479
Lease liabilities 898 230 559
Prepayments from customers 9,207 11,198 9,910
Trade payables 5,908 5,948 3,934
Other liabilities 2,026 2,046 4,404
Deferred income 649 624 627
Current liabilities 23,108 23,058 23,839
Total liabilities 42,977 38,350 45,332
Total equity and liabilities 59,268 51,705 57,258
Interim report Q3 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 (8,495 ) (8,495 )
Other comprehensive income 0 0 (19 ) 0 (19 )
Capital increase 610 0 0 12,430 13,040
Share-based payments 0 0 0 745 745
Cancellation of w arrants 0 0 0 (905 ) (905 )
Equity at 30 September 2023 28,394 (561 ) (21 ) (11,521 ) 16,291
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 (9,727 ) (9,727 )
Other comprehensive income 0 0 (2 ) 0 (2 )
Capital increase 1,534 0 0 6,549 8,083
Equity at 30 September 2022 27,784 (561 ) (2 ) (13,866 ) 13,355
Interim report Q3 2023
Cash Flow Statement
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Amounts in DKK '000 Q1-Q3 2023 Q1-Q3 2022 FY 2022
Operating result (EBIT) (7,045 ) (8,920 ) (10,175 )
Depreciation, amortization and impairment 2,606 1,697 2,282
Share-based payments (160 ) 0 548
Changes in provisions 105 72 188
Working capital movements
- Change in inventories (2,377 ) (5,312 ) (5,734 )
- Change in receivables (1,865 ) (6,271 ) (8,409 )
- Change in prepayments from customers (703 ) 7,430 6,142
- Change in trade payables, etc. (853 ) (2,132 ) (1,945 )
Cash flow from operating activities (10,294 ) (13,437 ) (17,103 )
Interests paid/received (1,450 ) (805 ) (1,543 )
Income taxes paid 0 (606 ) 31
Cash flow from operations (11,743 ) (14,849 ) (18,615 )
Transaction costs charged to equity (68 ) (100 ) (100 )
Acquisition of property, plant and equipment (390 ) (280 ) (214 )
Investment in intangible assets (2,643 ) (1,694 ) (2,516 )
Change in financial assets (852 ) (576 ) (1,218 )
Cash flow from investments (3,953 ) (2,650 ) (4,048 )
Free cash flow (15,696 ) (17,499 ) (22,664 )
Proceeds from capital increase 13,107 8,183 8,184
Proceeds from borrow ings 0 10,000 18,000
Repayment of borrow ings (2,591 ) (1,495 ) (1,847 )
Change in leasing liabilities (1,041 ) (320 ) (612 )
Cash flow from financing activities 9,476 16,369 23,725
Net cash flow for the period (6,221 ) (1,130 ) 1,061
Cash and cash equivalent at the beginning of the period 11,966 10,908 10,908
Exchange rate adjustments on cash (19 ) 0 (2 )
Net cash flow for the period (6,221 ) (1,130 ) 1,061
Cash and cash equivalent at the end of the period 5,727 9,778 11,966
Interim report Q3 2023
Notes
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1. Correction of misstatements in 2021 financial statements
In the summer of 2022, the Danish Business Authority initiated an audit of the 2021 consolidated financial statements
and parent company financial statements of Ennogie Solar Group A/S. In this context, they pointed out that the
consolidated financial statements were incorrectly prepared as a continuation of Ennogie Solar Group A/S's
consolidated financial statements, when they should have been prepared as a continuation of the consolidated
financial statements for Ennogie ApS. The misstatements resulting from this incorrect treatment was revised in the
comparative figures in the Company's Q2 report for 2022 and again in the financial statements in the 2022 annual
report.
The Danish Business Authorities have in October 2023 provided their final conclusion, validating the corrections made
to the 2021 comparative figures in the 2022 annual report. Consequently, the Danish Business Authority have
decided to finalize the audit with a formal reprimand.
A detailed descriptionof the made corrections is included in the disclosures of the Company’s annual report for 2022.
2. 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 interpretationsbecoming effective for the financial year 2023 have no material impact on the interim report.
3. 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 Q3 2023
Notes
13
4. 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.
5. Revenue
6. 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 Q3 2023 Q3 2022 Q1-Q3 2023 Q1-Q3 2022 FY 2022
Revenue, geographical segments
Denmark 5,750 4,680 22,196 13,026 24,582
Germany 18,887 8,616 46,912 22,056 36,534
Other 0 0 0 0 0
Total revenue 24,637 13,297 69,109 35,082 61,116
Amounts in DKK '000 30.09.23 30.09.22 31.12.22
Non-current assets, geographical segments
Denmark 14,407 14,380 16,572
Germany 2,509 258 344
Total non-current assets 20,923 15,491 16,916
Amounts in DKK '000 Q3 2023 Q3 2022 Q1-Q3 2023 Q1-Q3 2022 FY 2022
Timing of revenue recognition
At a point in time 21,703 12,016 61,566 31,536 50,505
Over time 2,933 1,280 7,543 3,546 10,611
Revenue from contracts with customers 24,637 13,297 69,109 35,082 61,116
Interim report Q3 2023
Management’s statement
Executive Management
Board of Directors
14