Solteq Oyj — Earnings Release 2021

Feb 17, 2022

Solteq Plc’s Financial Statements Bulletin January 1 – December 31, 2021

Solteq Plc’s Financial Statements Bulletin January 1 – December 31, 2021

Solteq Plc Stock Exchange Bulletin February 17, 2022 at 8.00 am
A year of profitable growth
October–December

· Revenue totaled EUR 18.3 million (16.4) and increased by 11.4 percent
· EBITDA was EUR 2.6 million (3.1) and EBITDA percent was 14.4 (18.8)
· Operating profit was EUR 1.3 million (1.8) and operating profit percent was
7.2 (10.9)
· Earnings per share was EUR 0.03 (0.03)

January–December

· Revenue totaled EUR 69.1 million (60.5) and increased by 14.2 percent
· EBITDA was EUR 12.3 million (10.4) and EBITDA percent was 17.8 (17.2)
· Operating profit was EUR 7.1 million (5.4) and operating profit percent was
10.3 (8.9)
· Earnings per share was EUR 0.21 (0.10)
· Solteq Group’s equity ratio was 36.9 percent (35.5)
· Net cash flow from operating activities was EUR 10.0 million (6.3)
· Solteq Group’s revenue is expected to grow clearly and operating profit to
improve
· Solteq Plc’s Board of Directors proposes that the Annual General Meeting
authorize the Board of Directors to decide on the distribution of dividend of a
maximum of EUR 0.10 per share

Key figures

                     10       10  Change %  1-12/2021  1-12/2020  Change %
                -12/202  -12/202
                      1        0

Revenue, TEUR 18,277 16,408 11.4 69,055 60,452 14.2
EBITDA, TEUR 2,629 3,080 -14.7 12,267 10,380 18.2
Comparable EBITDA, 2,732 3,320 -17.7 12,556 10,810 16.2
TEUR
Operating profit, 1,321 1,787 -26.1 7,123 5,350 33.1
TEUR
Comparable 1,424 2,027 -29.7 7,412 5,780 28.2
operating profit,
TEUR
Profit for the 604 622 -2.9 4,100 1,980 107.1
financial period,
TEUR
Earnings per 0.03 0.03 -3.9 0.21 0.10 106.3
share, EUR
Operating profit, 7.2 10.9 10.3 8.9
%
Comparable 7.8 12.4 10.7 9.6
operating profit,
%
Equity ratio, % 36.9 35.5

CEO Kari Lehtosalo: A year of profitable growth

Solteq Group’s revenue for 2021 was EUR 69.1 million, an increase of 14.2
percent from the previous year. The growth was mainly organic. Profitability of
the international subsidiaries improved significantly, particularly in Denmark.
The revenue from the international subsidiaries accounted for 22.3 percent of
the group’s revenue. Solteq Software segment accounted for just over a third and
Solteq Digital segment less than two-thirds of the group’s revenue. The growth
was fueled by Solteq Software’s Utilities business and the digital business and
commerce solutions of Solteq Digital.

The group’s year-on-year profitability improved significantly. EBITDA increased
by 18.2 percent, to EUR 12.3 million. Operating profit was EUR 7.1 million, up
by 33.1 percent from the previous year. The operating profit margin was 10.3
percent.

For both segments, the year was a time for growth and internationalization.
Solteq Software clearly exceeded its annual target of over 20 percent growth in
revenue and invested in the internationalization and software development of its
Utilities and Retail businesses. The segment’s result was affected by increases
in subcontracting expenses and general costs.  Solteq Digital developed
positively during the year, and growth was particularly strong in digital
business and commerce solutions in the Nordic market. Investments in the
company’s product development amounted to EUR 2.8 million.

The COVID-19 pandemic continued throughout the year. The impact on business
remained minor and mainly affected customer projects in the travel, service, and
leisure sectors. The organization’s operational capacity and the safety of its
stakeholders were ensured by measures adopted already the previous year.

Solteq Group’s business outlook remains stable both in Finland and
internationally. The segments are expected to continue their upward trend,
driven by the more versatile and international offering of Solteq Software’s
Utilities business and the digital expert services provided by Solteq Digital.
The company continues its investments in internationalization and the product
development of Utilities business with focus on the first half of 2022. The
digital reality is affecting everyone. Keeping up with the latest developments
is therefore on the current and future agendas of companies of different sizes
and in various sectors.

Profit guidance 2022
Solteq Group’s revenue is expected to grow clearly and operating profit to
improve.

Attachments
Solteq Plc Financial Statements Bulletin January 1 – December 31, 2021

Further information
Interim CEO, CFO Kari Lehtosalo
Tel: +358 40 701 0338
E-mail: kari.lehtosalo@solteq.com

Distribution
NASDAQ OMX Helsinki
Key media
www.solteq.com (https://investors.solteq.com/)

Solteq in brief
Solteq is a provider of IT services and software solutions specializing in the
digitalization of business and industry-specific software. The key sectors in
which the company has long-term experience are retail, manufacturing, utilities,
and services. The company employs over 650 professionals with offices in
Finland, Sweden, Norway, Denmark, Poland and the UK, with a customer base
throughout Europe.

Attachments: