Solteq Oyj — Interim / Quarterly Report 2021

Aug 12, 2021

Solteq Plc’s Half-Year Report January 1 – June 30, 2021

Solteq Plc’s Half-Year Report January 1 – June 30, 2021

Solteq Plc Stock Exchange Bulletin August 12, 2021 at 8.00 am

Solteq continued its strong, profitable growth

April–June

• Revenue totaled EUR 18.5 million (15.1) and increased by 22.6 percent

• EBITDA was EUR 3.7 million (2.7) and EBITDA percent was 20.2 (18.0)

• Operating profit was EUR 2.4 million (1.5) and operating profit percent was
13.2 (9.8)

• Earnings per share was EUR 0.08 (0.04)

January–June

• Revenue totaled EUR 35.9 million (30.8) and increased by 16.6 percent

• EBITDA was EUR 7.2 million (4.6) and EBITDA percent was 20.1 (14.9)

• Operating profit was EUR 4.7 million (2.2) and operating profit percent was
13.0 (7.1)

• Earnings per share was EUR 0.16 (0.04)

• Solteq Group’s equity ratio was 35.3 percent (33.1)

• Net cash flow from operating activities was EUR 7.8 million (5.3)

Key figures

        4-6/202  4-6/202  Change  1-6/202  1-6/202  Change  1-12/20  Rolling
                               %        1        0       %       20    12mos
              1        0

Revenue, 18,487 15,080 22.6 35,870 30,754 16.6 60,452 65,567
TEUR
EBITDA, 3,726 2,710 37.5 7,217 4,584 57.4 10,380 13,012
TEUR
Comparable 3,767 2,736 37.7 7,322 4,774 53.4 10,810 13,357
EBITDA,
TEUR
Operating 2,440 1,481 64.7 4,672 2,197 112.6 5,350 7,824
profit,
TEUR
Comparable 2,481 1,507 64.6 4,777 2,387 100.1 5,780 8,169
operating
profit,
TEUR
Profit for 1,551 779 99.1 3,007 819 267.2 1,980 4,168
the
financial
period,
TEUR
Earnings 0.08 0.04 99.4 0.16 0.04 266.7 0.10 0.22
per
share, EUR
Operating 13.2 9.8 13.0 7.1 8.9 11.9
profit,
%
Comparable 13.4 10.0 13.3 7.8 9.6 12.5
operating
profit,
%
Equity 35.3 33.1 35.5 34.2
ratio, %

CEO Olli Väätäinen’s review:

Solteq Group continued its strong, profitable growth in the second quarter.
Measured by key indicators for the company, the quarter was the best in the
company history. The growth was fueled by Solteq Software's Utilities business
and Solteq Digital, which returned to a growth path due to the increased market
demand for ecommerce solutions. The COVID-19 pandemic had a slight negative
impact on customer acquisition and the launch of customer delivery projects in
the tourism, restaurant, and leisure sectors.

Solteq Group’s second-quarter revenue and profitability increased clearly
relative to the comparison period. Solteq Group’s revenue increased by 22.6
percent and was EUR 18.5 million. Approximately four fifths of the growth was
organic. The Group’s operating profit was EUR 2.4 million, up by 64.7 percent
from the comparison period. The Group’s operating profit margin was 13.2
percent. The company’s EBITDA increased by 37.5 percent relative to the
comparison period, amounting to EUR 3.7 million. Solteq Group’s EBITDA margin
was 20.2 percent.

Solteq Group’s business operations are organized into two segments: Solteq
Software (software business) and Solteq Digital (services business). During the
second quarter, Solteq Software segment accounted for just over one-third of the
Group’s revenue, and Solteq Digital segment for just under two-thirds. Solteq
Software accounted for 33.8 percent of the Group’s EBITDA. Revenue from foreign
subsidiaries accounted for 21.4 percent of the Group’s revenue, which increased
slightly relative to the comparison period.

Both segments performed well in the second quarter. Solteq Digital returned to a
growth path, as expected. The revenues in both segments increased relative to
the comparison period – by 13.0 percent in Solteq Digital and by 44.6 percent in
Solteq Software. Also, the profitability clearly improved relative to the
comparison period, and the EBITDA increased by 41.1 percent in Solteq Digital
and by 31.1 percent in Solteq Software. The second-quarter operating profit was
up by 72.8 percent in Solteq Digital and by 43.0 percent in Solteq Software,
relative to the comparison period.

The business outlook for Solteq is good both domestically and internationally.
Demand in Solteq’s key solution areas is expected to remain good during the
second half of the year. The digital future affects 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 2021

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

Attachments
Solteq Plc Half-Year Report January 1 – June 30, 2021

Further information

CEO Olli Väätäinen
Tel: +358 50 557 8111
E-mail: olli.vaatainen@solteq.com

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/)

About Solteq:

Solteq is a Nordic 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 include retail,
industry, energy and services. The company operates in Finland, Sweden, Norway,
Denmark, Poland and the UK and employs 600 professionals.

Attachments: