Ennogie Solar A/S : Årsrapport 2023

Annual Report 2023

Ennogie Solar Group A/S

Orebygårdvej 16, 7400 Herning

CVR: 39703416

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Table of Contents

Annual Report 2023

Management's Review

Introduction

1. Ennogie Solar Group
2. Chairman's Report
3. Key Events of 2023

Corporate Governance and Shareholder Information

1. Board of Directors
2. Executive Management

1. Risk Management
2. Shareholder Information

Corporate Social Responsibility

15 Corporate Social Responsibility

Financial Performance

1. Market Conditions
2. Financial Overview

1. Financial Outlook
2. Key financial indicators

Financial Statements

1. Consolidated Financial Statements

1. Parent Company Financial Statements

1. Management's Statement
2. Independent Auditor's report

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Annual Report 2023

Introduction

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Ennogie Solar Group

Ennogie Solar Group ("Ennogie") is a green growth company that develops, manufactures, and sells building- integrated solar roofs and energy systems. Ennogie's solar roofs provide an aesthetic whole, replacing a traditional roof and serving as the outer climate shell of the building. The solar roof transforms a previously unproductive roof into a productive asset that generates sustainable, self-produced electricity. Providing access to a significant degree of self-sufficiency and some level of energy security, the solar roof has a short payback period on the additional investment and provides customers with stability and predictability in their energy costs.

Ennogie is an agile company with a scalable business model. The production of Ennogie's solar roofs does not require complex facilities and large investments and can therefore be quickly increased in line with demand. The business entails clear economies of scale in procurement, production, as well as sales and administration.

Ennogie's solar roofs generate renewable energy right where it is needed, reducing dependence on non- renewable sources and lowering energy costs. This decentralized approach means that energy is generated closer to where it is used, reducing transmission losses and creating a cleaner and more efficient energy system. Solar panels are a well-established technology, with technological and economic maturity, where the cells constitute a robust and proven energy source and a cost-effective alternative to traditional energy production. Solar technology continues to evolve, resulting in increased energy intensity over time, lower costs per produced kWh, and thus a more profitable solar roof.

Global climate change poses one of the greatest societal challenges of our time, requiring a rethink and restructuring of the entire global energy supply towards sustainable production methods. The task is enormous and will require a lot of time and resources. Ennogie's solar roof represents a robust, accessible, and aesthetically pleasing contribution to this. The green transition means that Ennogie is looking into a market with significant,structural, and long-term growth.

However, Ennogie is not alone in producing building-integrated solar roofs, as there are several competitors, and we welcome that. The market potential for roof replacements and installations is very large, and there is room for many types of solar roofs in the market. In addition to continuously improving our product and market, competitors help create the necessary awareness of the many benefits of solar roofs and thereby expand the share of solar roofs in the green transition.

Annual Report 2023

2023 highlights

Revenue	Revenue growth	New orders
98.7m	61%	170

Total installation	Employees	New liquidity
47.330 m2	44	25.5m

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Chairman's Report

Pioneering growth and navigating challenges

Ennogie Solar Group has achieved an extraordinary feat, catapulting its revenue from DKK 15 million to an impressive DKK 100 million in just three years. This meteoric rise is a testament to the company's strategic acumen and adaptability in the dynamic solar roof industry. The foundation of this success lies in Ennogie's foresight, recognizing the growth potential at the intersection of the renewable energy sector and the construction industry.

A remarkable year

Revenue grew by 61% in 2023 from DKK 61 million in 2022 to DKK 99 million in 2023. The growth was based on a DKK 60 million order backlog at the start of 2023 built on significant increases in energy prices starting in 2021 and acceleration following the outbreak of war in Ukraine in February 2022.

At the heart of this growth lies Ennogie's visionary operational change process. Ennogie's leadership, committed to innovation and efficiency, implemented a series of transformative measures that propelled Ennogie into a leading position within the solarroof industry. From streamlining internal processes to optimizing supply chain logistics, every aspect of the company underwent meticulous refinement to facilitate rapid and sustainable growth. This fine-tuning of operations, resulted in a 77% increase in gross profit to DKK 27 million.

EBITDA improved DKK 5 million compared to 2022 with a result of DKK -3 million. This is in line with the expectations published in the interim financial report for Q2 2023. Similarly, revenue is also in line with the expectations published in the interim financial report for Q2 2023 and the initial expectations published in the interim financial report for Q3 2022.

Temporarily challenged market

Ennogie faces a temporary downturn in the market attributed to external factors. The recent upswing in interest rates and soaring inflation on building materials has resulting in shrinking construction markets and has introduced a degree of uncertainty into the market. Similarly has demand been affected by the normalization of energy prices. Adding to the complexity, Ennogie's home market of Denmark is grappling with the ramifications of recent regulations imposed by lawmakers. These changes have disrupted the stability of the solar industry in Denmark, contributing to a current downturn in order uptake in Denmark.

Despite these challenges, Ennogie remains steadfast in its commitment to navigating through the storm, leveraging its operational agility to overcome obstacles and emerge stronger on the other side.

Focus on igniting growth

In addition to using operational agility as response to the temporary market challenges, Ennogie has taken a number of actions in order to ignite growth.

Recognizing the need for strategic realignment, Ennogie is actively transforming its quotation pipeline. Shifting focus from a predominantly B2C approach, Ennogie is intensifying efforts in the B2B sector, targeting real estate developers and housing associations. This strategic shift not only aims to counter the present challenges but positions Ennogie for sustained success in a rapidly evolving market.

Looking forward, Ennogie capitalizes on the low point in the construction industry to explore new markets. Recognizing

Annual Report 2023

the global demand for sustainable solutions, 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. As part of its growth strategy, Ennogie is now venturing into new international markets, including France and Poland, along with expanding its footprint in Austria and Switzerland. This expansion is seen as a logical extension of the company's thriving activities in Germany, providing diversification and resilience against market fluctuations.

In tandem with geographical expansion, Ennogie invests in ongoing research and development efforts, ensuring its products remain at the forefront of innovation, among others the project with Danfoss and DTI supported by ELFORSK is a testament to that.

Moreover, in September 2023 Ennogie launched its new integrated solar system for installation in the roof named Sun Spot. This elegant solar system is designed to integrate perfectly into the roof and create a modern and sophisticated look. Sun Spot allows customers to choose from a limited number of standard configurations that perfectly match the home's style and energy needs. This not only improves energy efficiency, but also reduces costs, benefiting both customers and Ennogie.

In March 2024 Ennogie's solar roof received, as the first product, the newly introduced "Innovative Material Guarantee" of the ZVDH, which is the main association of the German roofers' associations. ZVDH has introduced this new material guarantee to give German roofers the security to use new innovative products in their work, especially in solar energy. For Ennogie, this means access to the large market for roofers in Germany, where both the full roof solution and Sun Spot are brought into play.

In continuation of the "Innovative Material Guarantee", Ennogie has entered into an agreement with Dachdecker-Einkauf covering initially three German regions totaling 6,500 roofing companies. The entire Dachdecker-Einkaufhas collected purchases for 13,500 roofing companies. The agreement gives a much greater exposure, especially in the private sector.

Finally, Ennogie's commitment to sustainability is evident through its Environmental Product Declaration (EPD), now registered in both Germany and Denmark. This clearly states that Ennogie's solar roof products and energy solutions are the perfect choice for environmentally and financially conscious homeowners and businesses. This aligns with the company's vision of offering customers not just a roof but a sustainable future.

Ennogie's ability to navigate a declining 2023 and 2024 construction market, 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 stakeholders.

Henrik Golman Lunde, Chairman of the Board

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Important Events in 2023

April

Ennogie is awarded the

Architecture + Construction Innovation Award

Maj

Ennogie and Norlys signs a cooperation agreement regarding future collaboration on offers to Danish housing associations

Annual Report 2023

March

July

June

Ennogie included as one of the "55 energy solutions" ready for market by the European Enterprise Network

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Important Events in 2023

Annual Report 2023

October

September	November

Leif Arnbjerg announced as new Group-CFO

Ennogie uptains IEC certification for solar panels

Ennogie wins pilot project in sustainable buildings in

Berlin

December

November

September

		Ennogie customer Haus Hoinka wins
			Ennogie and consortium awarded grant along to increase sector
		Architects' Darling Award 2023 SILBER
			coupling
Ennogie wins project with Housing Association GBG Mannheim

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Annual Report 2023

Corporate Governance

and Shareholder

Information

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Annual Report 2023

Board of Directors

Henrik Golman Lunde	Peter Ott	Silke Weiss	Klaus Lorentzen
Male. Born 1966. Danish	Male. Born 1961. Danish	Female. Born 1980. German	Male. Born 1964. Danish
CEO KUBO Robotics ApS	Professional board member	CSO DACH+BLX & Global Systems at Knauf Insulation	SVP Products at VELUX A/S
		GmbH
COB at Ennogie Solar Group in 2023. Board member at	Board member at Ennogie Solar Group A/S since 2019 and COB from 2019-	Board member at Ennogie Solar Group A/S since 2022	Board member at Ennogie Solar Group A/S since 2022.
Ennogie Solar Group A/S since 2022. Board member at	2022. Board member at Ennogie ApS since 2022. COB of Porteføljeselskab		Board member at Ennogie ApS since 2018. Board
Ennogie ApS since 2014 and COB since 2018. Board	A/S since 2019.		member at Porteføljeselskab A/S since 2022.
member at Porteføljeselskab A/S since 2022.
Owns 316,605 shares in Ennogie Solar Group.	Owns 21,479 aktier in Ennogie Solar Group A/S.	Owns 150 shares in Ennogie Solar Group A/S	Owns 184,629 shares in Ennogie Solar Group A/S.
Independent board member	Independent board member	Independent board member	Independent board member
Skills	Skills	Skills	Skills
Growth leadership, international business	Value creation, business development, and leadership	International sales and marketing management,	Global supply chains, product development, and
development, and experience from the solar industry.		intercultural team leadership, and strategy	international experience from the construction industry.
		development within energy efficiency.
Other management positions	Other management positions	Other management positions	Other management positions
	COB: Strategic Investments A/S, AG-informatik A/S	Treasurer and board member at the European
	Board member: Strategic Vækstaktier A/S, Stategic Europæiske Aktier A/S,	Industrial Insulation Foundation (EiiF)
	Strategic Danske Aktier Select A/S, Strategic HY Obligationer A/S,
	Fondsmæglerselskabet Strategic Wealth Management A/S, Strategic
	Administration ApS, Nexcom A/S

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Annual Report 2023

Executive Management

Lars Brøndum Petersen		Leif Arnbjerg	Martin Woldby Papsø
Male. Born 1982. Danish		Male. Born 1969. Danish	Male. Born 1979. Danish
CEO since 2022, CEO in Ennogie ApS since 2019		CFO since 2023	COO since 2022

Indirectly holding 4,137,497 shares in Ennogie Solar Group through a Own no shares in Ennogie Solar Group A/S. company he controls

Own no shares in Ennogie Solar Group A/S.

Background		Background	Background
2009 - 2019	Co-founder/CSO in Ennogie ApS	2022-2023: CFO Planet Huse A/S	2017-2022 General Manager Kina - Jupiter Bach A/S
2009 - 2022	Co-founder/CEO in Retap ApS	2013-2022: Brand CFO Jack & Jones / Selected - Bestseller	2014-2017 Buying Director - Bach Composite Industry A/S
2016 - 2019	CEO Fundingbox Nordic ApS	2011-2013: CFO Green Team Group A/S / CEO Mailand A/S	2004-2013 Different jobs within Supply Chain - Vestas A/S

Education	Education	Education
Business Development Engineer, Aarhus University	Certified Public Accountant	Executive MBA, IMD
	Graduate Diploma in Business Administration	Business Development Engineer, Aarhus University

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