The company’s new management team, led by CEO Mariano Berges, is working with one of the world’s leading strategic consultancies on a new strategic plan, which will be presented to the market in the coming weeks, focusing on cash generation and higher value-added activities

Murcia, September 26, 2024 - Soltec Power Holdings, a vertically integrated company specializing in photovoltaic projects, has begun negotiations with the financial creditors of its subsidiary Soltec Energías Renovables, its industrial division, with the aim of reaching a restructuring agreement that will secure the company's future. This is due to the decision by one of the syndicated banks not to extend the tacit extension that was planned until November 30, regarding the €90 million revolving credit facility and the €110 million guarantee line of credit.

The company is confident that it will reach an agreement with the creditor entities to resolve the current situation and ensure the proper execution of its transformation and growth plans, based on its new strategic plan.
Postponement of the publication of financial results for the first half of the year
Additionally, the company has announced that it will not publish its financial results for the first half of 2024 within the legally established timeframe. This is due to the need to complete a more detailed review, which is more exhaustive than a limited review, that the company has decided to undertake with the assistance of its auditor Ernst & Young (EY). This review requires additional verifications and analysis to properly reflect potential negative impacts on the margins of certain projects caused by delays in execution and/or resolution of issues during warranty periods, as well as adjustments in the valuation of Brazilian assets, Araxá and Pedranópolis, due to the strategic decision to sell these assets. Regarding the company's revenue for the period, it is estimated to be between €250 million and €260 million.
The publication of the results for the first half of 2024 will take place as soon as the current review is concluded, and will be announced through the official channels as soon as it is available. Additionally, the following discrepancies expressed by the auditor regarding the annual accounts published on April 1, which showed a difference of €192 million compared to the results announced to the market in February, related to Bill and Hold contracts, the company has conducted an extensive internal investigation. This process has been led by the company's Board of Directors, under the supervision of the Audit Committee, and has been carried out by its compliance department with the support of independent experts and legal advisors.
As a result of this process, from an accounting standpoint, the need to adjust the amount of inventory recorded as of December 31, 2023, by €40.46 million has been identified, primarily due to an incorrect interpretation of the applicable INCOTERM, without any impact on the income statement.
Additionally, the process revealed certain irregularities, prompting the adoption of various measures, including disciplinary actions, management changes, and procedural adjustments aimed at strengthening the company's internal controls and regulatory compliance system. Among these measures is the reinforcement of controls within the new management information platform and the renewal of its compliance department.
Implementation of a new strategic plan and new management team
Currently, with the goal of outlining the new roadmap for the coming years, the company is already working on defining a new strategic plan in collaboration with one of the world's leading strategic consultancies, which will be communicated in the coming weeks.
This new plan will focus on developing activities and markets with higher value-added, such as solar tracker supply and photovoltaic project development, with a focus on cash generation and achieving sustainable, long-term profitable growth.
"We have a strong position in our solar tracker division, with over 20 GW in projects. We work with top-tier clients and are present in key global photovoltaic energy markets. The company is taking all necessary operational and financial measures to focus on businesses with higher margins and profitability. We have a proven track record, cutting-edge technology, and are well-positioned to drive future growth", said Mariano Berges, CEO of Soltec.
To lead this new plan, Soltec has undergone a significant restructuring of its management team, led by new CEO Mariano Berges and new Chairman Marcos Sáez Nicolás. Additionally, the company has agreed to reduce the number of members on the executive committee and has appointed Mikel de Irala as Chief Operations Officer (COO) and Andrés Carretero as Chief Investment Officer (CIO). The new management team has undertaken Soltec's commitment to act with maximum transparency, which is crucial in the transformation and growth process the company is shaping, for which all necessary measures are being taken. The aforementioned appointments have been approved by the Board of Directors, following a favorable report from the Nomination and Compensation Committee.

About Soltec
Soltec is a company specializing in vertically integrated solutions in the photovoltaic solar energy sector, with a strong commitment to innovation and sustainability. Headquartered in Murcia, the company was founded in 2004 and currently operates in 16 countries, with a strong presence in Spain, North America, and Latin America. The company has been listed on the Spanish Continuous Market since 2020. Soltec structures its activities through two main business areas: i) the solar tracker division; and ii) the energy division.