2024-02-23 13:00:00 CET

2024-02-23 13:00:42 CET


REGULATED INFORMATION

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Solteq Oyj - Annual Financial Report

Solteq Plc's Report of the Board of Directors, Financial Statements, and Auditor's Report for the year 2023 Have Been Published 


Stock Exchange Bulletin
Annual Financial Report
February 23, 2024, at 2:00 p.m.
Solteq Plc's Report of the Board of Directors, Financial Statements, and
Auditor's Report for the financial period January 1 - December 31, 2023, have
been published in Finnish and English. The reports are attached to this stock
exchange bulletin and can be found on the company's website.

The Financial Statements are published in accordance with the European Single
Electronic Format (ESEF) reporting requirements. The format of the report is
Extensible Hypertext Markup Language (XHTML). In line with the ESEF
requirements, the primary financial statements, the notes to the consolidated
financial statements, and the company identification data included in the ESEF
financial statements data have been marked up with XBRL tags. The audit firm
KPMG Oy Ab has provided an independent auditor's reasonable assurance report on
Solteq's ESEF Financial Statements in accordance with ISAE 3000.

The Auditor's Report, provided by KPMG Oy Ab, contains additional information
about material uncertainty regarding Solteq Plc's going concern principle, which
concerns the restructuring of the company's financing.

The company will publish its Annual Report on March 5, 2024, at the latest. The
Annual Report consists of Corporate Governance Statement, Remuneration Report,
Report of the Board of Directors, Key Figures, Financial Statements, Auditor's
Report, and Statement of Non-Financial Information.

Going concern principle
The financial statements for the financial year 2023 have been drawn up under
the going concern principle. In assessing the going concern principle, the
management of the company has considered the risks related to the refinancing of
the company. The key elements of Solteq Group's debt financing are a fixed-rate
bond, as well as standby and bank account credit limits.

Solteq issued a fixed-rate unsecured senior bond with a nominal value of EUR
23.0 million on October 1, 2020. Of the EUR 23.0 million bond outstanding at the
time of the financial statements bulletin, EUR 0.6 million was held by the
company. The bond matures on October 1, 2024. The standby and bank account
credit limits total EUR 7.0 million. The related financial covenants are linked
to the terms of the bond.

The terms of the bond include financial covenants concerning the distribution of
funds and incurring financial indebtedness other than permitted under the terms
of the bond (Incurrence Covenant). The covenants require that the equity ratio
exceeds 27.5 percent, the interest coverage ratio (EBITDA/net interest cost)
exceeds 3.00:1, and that the Group's net interest-bearing debt to EBITDA ratio
does not exceed 4:1. The covenants concerning the distribution of funds and
incurring financial indebtedness other than permitted under the terms of the
bond are not fulfilled based on the reporting period. The fulfillment of the
covenants is always reviewed based on the last reported 12-month period.
Violations of the above-mentioned financial covenants of the bond do not, as
such, lead to the right to demand immediate repayment of the bond, but they
limit the distribution of the company's funds and incurring financial
indebtedness other than permitted under the terms of the bond.

The company has initiated measures to arrange refinancing of the company. The
arrangement consists of the renewal of the existing bond and of the standby and
bank account credit limits.

In assessing the going concern, the management of the company has considered the
effects of the measures taken during the financial year 2023 on the company's
financial performance, financial forecasts and risks related to financial
negotiations. Based on these factors, management estimates that operations will
continue and that the risk of insufficient funding is small. The company
believes that the planned financing arrangements will lead to a favorable
outcome. However, if the company fails to restructure the financing, this would
jeopardize the continuity of the company's operations. The 2023 financial
statements have therefore been drawn up under the going concern principle.

Attachments
Report of the Board of Directors, Financial Statements, and Auditor's Report
January 1 - December 31, 2023
ESEF: Report of the Board of Directors, Financial Statements, and Auditor's
Report January 1 - December 31, 2023

Further Information
CEO Aarne Aktan
Tel: +358 40 342 4440
E-mail: aarne.aktan@solteq.com

CFO, General Counsel Mikko Sairanen
Tel: +358 50 567 3421
E-mail: mikko.sairanen@solteq.com

Distribution
Nasdaq Helsinki
Key media
www.solteq.com

Solteq in brief
Solteq is a Nordic software solution and expert service provider specializing in
retail and energy sectors and needs related to e-commerce. The company employs
nearly 500 professionals and has offices in Finland, Sweden, Norway, Denmark,
Poland, and the UK.