Solar (SOLAR B) Update / Briefing August 08, 2025 07:00 AM ET Speaker0Good day, and thank you for standing by. Welcome to the Solar AS Guidance Announcement Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded.I would now like to hand the conference over to your speaker today, Jens Anderson, CEO. Please go ahead.Speaker1Thank you. A warm welcome to ...

Core Insights - Dovre Group's operating results for Q1 2025 were lower than expected, primarily due to margin reductions in a solar park project in Finland [9][18] - The company completed the sale of its Project Personnel and Norwegian Consulting businesses, resulting in a profit from discontinued operations [3][21] - The outlook for 2025 indicates a slight decline in net sales but a significant improvement in operating profit [6] Financial Performance - Net sales for Q1 2025 were EUR 14.0 million, unchanged from the same period in 2024, with a 0.7% increase in Renewable Energy sales and an 11.9% decrease in Consulting sales [7][15] - EBITDA for the period was EUR -2.9 million, while the operating profit was EUR -3.2 million, showing improvements from the previous year [17][18] - The result before tax was EUR -3.5 million, with a total profit attributable to the parent company's shareholders of EUR 4.9 million, largely due to discontinued operations [20][22] Business Segments - The Renewable Energy segment accounted for 97% of net sales, with a slight increase in sales to EUR 13.6 million [15] - The Consulting segment's sales decreased to EUR 0.4 million, impacted by the termination of customer agreements and a slower market [14][15] - The operating profit for Renewable Energy was EUR -2.8 million, while Consulting reported a break-even result [18] Strategic Developments - The company is focusing on renewable energy projects, including a significant 100 MWp solar park project in Finland and a wind farm project in Sweden [10][33] - Dovre Group has initiated management changes in its subsidiary Suvic Oy following significant losses in Swedish projects [11][40] - The company has also made a capital contribution to its Swedish subsidiary to ensure operational stability [12] Personnel and Cash Position - The average number of employees increased to 242, with a total of 274 employees as of March 31, 2025 [24][25] - The Group's net debt was EUR -9.5 million, with cash and cash equivalents totaling EUR 15.5 million [26][27] - Net cash flow from operating activities was EUR -10.2 million, reflecting an increase in working capital [29] Project Business Impact - The sale of businesses has led to a significant reduction in operations, with a strong focus on project-based construction in renewable energy [30] - The project nature of the business increases cyclicality and requires various collateral arrangements, with guarantees totaling approximately EUR 28.8 million [31][32]