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Solteq

Solteq is a Nordic software and IT-services provider specializing in digital business solutions. Solteq’s strength has been in commerce related solutions with a focus on selected sectors, namely the retail and wholesale, industry, energy, and services sectors. Recent product development investments have focused on product development in the company's Utilities business and autonomous service robotics.
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Overview

Solteq is a Nordic software and IT-services provider specializing in digital business solutions. Solteq’s strength has been in commerce related solutions with a focus on selected sectors, namely the retail and wholesale, industry, energy, and services sectors. Recent product development investments have focused on product development in the company's Utilities business and autonomous service robotics.
Solteq's investment case revolves around the success of executing its strategy of shifting from its IT-services oriented past towards becoming a software house. Implied margin upside potential is considerable, with segment targets putting margins clearly in the double digits. Growth will increasingly need to be sought from abroad, as domestic growth potential is somewhat restricted within core competencies.

Financial overview

Equity research

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Solteq logo
Solteq - Potential overshadowed by uncertainty

Solteq’s Q1 was weaker than expected and further cost savings are sought. The near-term uncertainties continue to mount and for now overshadow the turnaround potential.

Company update |
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Solteq logo
Solteq - Softer start to the year

Solteq’s Q1 results were slightly weaker than expected and revenue declined slightly y/y in comparable terms. Revenue was at EUR 13.6m (Evli EUR 14.2m) and adj. EBIT at EUR -0.2m (Evli EUR 0.2m). Solteq announced the initiation of a cost savings program concerning parts of the Retail & Commerce segment.

Earnings Flash |
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Solteq logo
Solteq - Leaving behind a year to forget

Solteq’s Q4 was as expected weak, earnings improvement in Utilities a positive. We expect improvement across the board in 2024 driven by cost savings measures taken in Utilities.

Company update |
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Solteq logo
Solteq - Slight comparable EBIT improvement

Solteq’s Q4 results were as expected weak and slightly below our estimates. Revenue was at EUR 14.2m (Evli EUR 14.6m) and adj. EBIT at EUR -1.0m (Evli EUR -0.8m). Solteq expects the comparable revenue in 2024 to grow compared with 2023 and the operating profit to be positive.

Earnings Flash |
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Solteq logo
Solteq - Cautious optimism amid uncertainty

Solteq reports Q4 on February 15th. Our key points of interest relate to the market and growth outlook, while Q4 bottom-line are of lesser interest due to the impact of cost savings and write-offs.

Preview |
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Solteq logo
Solteq - Shifting course slowly but steadily

Solteq’s Q3 was slightly upbeat despite the weak figures and the company remains on track on its turnaround trip. We have slightly softened our growth expectations for 2024 and adjust our TP to EUR 0.85 (0.90).

Company update |
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Solteq logo
Solteq - Some signs of improvement

Solteq’s Q3 results were as expected rather weak but revenue turned to growth in comparable terms and profitability was better than feared. Revenue was at EUR 12.2m (Evli EUR 12.6m) and adj. EBIT at EUR -0.7m (Evli EUR -1.2m).

Earnings Flash |
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Solteq logo
Solteq - Setting up future profitability

Solteq’s FY 2023 continues to look challenging, but cost savings measures being taken support the turnaround in 2024. We retain our HOLD-rating, TP EUR 1.1 (1.3).

Company update |
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Solteq logo
Solteq - Tough quarter

Solteq’s Q2 results were quite weak and both revenue and profitability fell below our estimates. Revenue was at EUR 14.3m (Evli EUR 16.0m) and adj. EBIT at EUR -1.9m (Evli EUR -0.3m).

Earnings Flash |
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Solteq logo
Solteq - Long road to healthy profitability ahead

Solteq reported slightly better than anticipated Q1 results. The short-term performance appears to be burdened more than anticipated by disproportionate overhead expenses, our views on the long-term development remain intact.

Company update |

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Solteq - Company presentation
Company presentation |

Annual and sustainability reports

Company news

Stock Exchange Bulletin
Other information disclosed according to the rules of the Exchange
June 24, 2024, at 1:00 p.m.

Solteq's efficiency and cost-savings program, targeted at the Retail & Commerce segment's Commerce & Data business unit and the Group administration, has been completed. The company will execute cost-savings and reduction measures in Finland and other group companies, and it estimates achieving annual savings of approximately EUR 3.4 million. Approximately a third of the annual cost savings is expected to be realized in 2024. 

As part of the efficiency and cost-savings program, the change negotiations initiated in Finland on May 6, 2024, have been concluded, and the company has decided on the actions on June 24, 2024. Based on the resignations and layoffs, the company's workforce will be reduced by 24 employees in Finland. The negotiations concerned the personnel of the Commerce & Data unit and the Group administration. 

With a more agile organization and a leaner cost structure, the company aims to create conditions for improving profitability. For the Retail & Commerce segment, the long-term target for annual growth is to achieve a minimum of 8 percent for revenue and 8 percent for operating result margin. 

Distribution

Nasdaq Helsinki
Key media
www.solteq.com 

Further Information

CEO Aarne Aktan
Tel: +358 40 342 4440
Email: aarne.aktan@solteq.com

CFO, General Counsel Mikko Sairanen
Tel: +358 50 567 3421
Email: mikko.sairanen@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 operates with nearly 500 professionals in Finland, Sweden, Norway, Denmark, Poland, and the UK.

Stock Exchange Bulletin
Inside Information
April 30, 2024, at 08:02 a.m. 
Solteq Group initiates an efficiency and cost-savings program to achieve approximately EUR 3.5 million in annual cost savings. The efficiency and cost-savings program concerns the Retail & Commerce segment's Commerce & Data business unit and Group Administration. The goal is to improve profitability by reorganizing and enhancing the efficiency of operations.
"The volatile global economy continues to affect customer demand, especially in the offering of the Commerce & Data business unit. Customer organizations are cautious regarding investments, which has led to more delays in decision-making and scale-downs of scopes in project deliveries than expected. In the current market situation, we need to adjust the cost structure of both this unit and Group administration to improve Solteq's profitability," says CEO Aarne Aktan.  
In Finland, Solteq initiates change negotiations under Chapter 3, Section 16 of the Co-operation Act on production and economic grounds. The change negotiations concern the employees working in the Commerce & Data unit and Group Administration. Change negotiations may lead to the termination of employment of up to 35 people. In addition, the planned measures may result in job reorganization, as well as changes to job descriptions and terms and conditions of employment, and organizational structures for all employees involved in the negotiations. The change negotiations will begin on May 6, 2024, and are expected to be completed by June 17, 2024. 

Solteq Plc 
Board of Directors

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

CFO, General Counsel Mikko Sairanen
Tel: +358 50 567 3421
Email: 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 operates with nearly 500 professionals in Finland, Sweden, Norway, Denmark, Poland, and the UK.
 

Stock Exchange Bulletin
Changes Board/Management/Auditors
April 30, 2024, at 08:01 a.m.
Solteq Plc's CEO, Aarne Aktan (b. 1973), takes on the leadership responsibilities of the Utilities segment's business in addition to his current duties. On April 3, 2024, the company announced the resignation of Jaakko Hirvensalo, who has served as the EVP of Utilities.

Aarne Aktan has comprehensive experience in the development and commercialization of software products. In addition, he has long-standing expertise in the leadership of software businesses.

As of May 1, 2024, the composition and responsibilities of Solteq Plc's Executive Team are: 

Aarne Aktan, CEO, EVP of Utilities;
Jesper Boye, EVP of Retail & Commerce; 
Mikko Sairanen, CFO, General Counsel;
Oona Silén, VP of People and Culture;
Christa Tavan, Director of Marketing and Communications.

Vantaa, April 30, 2024

Solteq Plc
Board of Directors

Further information:

Markku Pietilä
Chairman of the Board
Tel: +358 50 045 5156  
Email: markku.pietila@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 operates with nearly 500 professionals in Finland, Sweden, Norway, Denmark, Poland, and the UK.
 

Stock Exchange Bulletin 
Interim Report
April 30, 2024, at 8.00 am
A Positive Turnaround in Profitability
January-March

Comparable revenue totaled EUR 13.6 million (14.1) and decreased by 3.8 percent. Revenue totaled EUR 13.6 million (16.9) and decreased by 19.7 percent
Comparable EBITDA was EUR 0.4 million (0.1) and EBITDA EUR 0.4 million (1.3). Comparable EBITDA percent was 2.6 (0.9)
Comparable operating result was EUR -0.2 million (-0.7) and operating result EUR -0.2 million
(-0.1). Comparable operating result percent was -1.8 (-4.6)
Earnings per share was EUR -0.04 (0.01)
Solteq Group's equity ratio was 29.3 percent (30.5)
Net cash flow from operating activities was EUR 1.0 million (0.5)
The company expects the comparable revenue to grow and the operating result to be positive. The comparable revenue was EUR 54,183 thousand for the financial year 2023

Key figures
 

1-3/2024 1-3/2023 Change % 1-12/2023 Rolling 12mos

Revenue, TEUR 13,571 16,899 -19.7 57,655 54,327
Comparable 13,571 14,113 -3.8 54,183 53,641
revenue, TEUR
EBITDA, TEUR 358 1,281 -72.1 8,695 7,772
Comparable EBITDA, 358 121 196.7 -1,662 -1,425
TEUR
Operating result, -247 -91 -170.8 -3,541 -3,697
TEUR
Comparable -247 -652 62.1 -4,575 -4,171
operating result,
TEUR
Result for the -705 204 -445.4 -5,380 -6,289
financial period,
TEUR
Earnings per -0.04 0.01 -445.4 -0.28 -0.32
share, EUR
Operating result, -1.8 -0.5 -6.1 -6.8
%
Comparable -1.8 -4.6 -7.2 -7.8
operating result,
%
Equity ratio, % 29.3 30.5 30.1 30.0

CEO Aarne Aktan: A Positive Turnaround in Profitability
Solteq Plc's first quarter brought a positive turnaround in profitability development. However, revenue development lagged and fell short of the company's expectations due to decreased customer demand and weaker-than-expected sales performance. The Group's comparable revenue was EUR 13.6 million in the review period. The comparable revenue decreased by 2.6 percent in the Retail & Commerce segment and 7.5 percent in the Utilities segment. 
The company's profitability improved during the review period. The comparable EBITDA was EUR 0.4 million, and the comparable operating result was EUR -0.2 million. The comparable EBITDA improved by EUR 0.2 million, and the comparable operating result by EUR 0.4 million relative to the comparison period. Utilities drove the turnaround in profitability. The segment's efficiency improvement program in 2023 and the persistent work with product quality assurance started materializing. In Retail & Commerce, however, profitability weakened due to a disproportionate cost structure relative to diminishing revenue.
The long-term market outlook for the Retail & Commerce segment is expected to remain moderate and demand to recover as the markets stabilize. Retail & Commerce will renew its sales strategy and account management processes during the current quarter to improve sales performance. The long-term market outlook for the Utilities segment is expected to remain good and provide opportunities for profitable growth.

Profit Guidance 2024
The company expects the comparable revenue to grow and the operating result to be positive. The comparable revenue was EUR 54,183 thousand for the financial year 2023

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 Interim Report, 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 prerequisite for the company's going concern is the restructuring of the financing. The company has initiated measures to arrange refinancing of the company. 
In assessing the going concern, the management of the company has considered the effects of the measures taken during the financial year 2023, the financial performance during the review period 1-3/2024, financial forecasts, and risks related to the availability of financing and to financial negotiations.  
The company believes that the planned financing arrangements will lead to a favorable outcome. However, there are still no binding decisions on the restructuring of the financing and if the company failed to restructure the financing by the bond maturity date, the company would not be able to meet its obligations and the conditions for the company's going concern would become jeopardized.
Considering the above measures and risks, the management estimates that operations will continue and that the risk of insufficient funding is small. Therefore, the management of the company has deemed it justified to prepare the Interim Report under the going concern principle.
Financial reporting
The Interim Report has been prepared in accordance with the recognition and valuation principles of IFRS standards and using IAS 34 and the same accounting policies as the Financial Statements 2023. The new IFRS standards, taken into use on January 1, 2024, do not have a significant impact on the Group's Interim Report. The information presented in the Interim Report has not been audited. 

Attachments
Solteq Plc's Interim Report January 1 - March 31, 2024

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.

Stock exchange bulletin
Other information published under the rules of the exchange
April 24, 2024, at 1:30 p.m.

Solteq Plc publishes new comparable data for the financial year 2023. The company has changed the definition of comparable EBITDA and comparable operating result and added significant changes from product development activations and related depreciation to items affecting comparability. The definition of comparable revenue remains unchanged.

In December 2023, the company changed its operating logic of dealing with product development activities. The development of own software products is part of continuous services and standard operations, and the related product development costs no longer meet the requirements for activation. The development costs of these existing software products are thus treated as cost items in the income statement as part of normal business operations, and product development cost activations ceased in the last quarter of the financial year 2023. In addition, the company assesses the product development investments activated in the balance sheet and their expected return. As a result of the assessment, the company made write-downs totaling EUR 7.5 million. The change in operating mode affected Solteq Group's fourth quarter 2023 comprehensive income statement and consolidated balance sheet. The change did not affect the Group's comprehensive income statements or consolidated balance sheets reported for the first, second and third quarters of 2023.

In the new comparable EBITDA and comparable operating result figures for 2023, quarterly product development activations of existing software products have been adjusted as expenses and related depreciation of previous product development activations has been reversed through profit or loss as if the change described above had been made at the beginning of 2023. The new comparable figures are unaudited.

The new comparable data include quarterly reported EBITDA and operating result. The new comparable data does not affect the reported revenue. Comparable key figures are presented based on the company's segment structure. In addition, product development activations and related depreciation adjusted from comparable EBITDA are presented below by segment.
 

Comparable 1-3/2023 4-6/2023 7-9/2023 10-12/2023 1-12/2023
EBITDA, TEUR
Retail & 1,326 149 684 156 2,315
Commerce
Utilities -1,205 -1,418 -819 -534 -3,976
Total 121 -1,269 -135 -378 -1,662

Comparable 1-3/2023 4-6/2023 7-9/2023 10-12/2023 1-12/2023
EBITDA, %
Retail & 12.5 1.5 7.4 1.5 5.7
Commerce
Utilities -34.8 -41.2 -27.4 -14.0 -29.0
Total 0.9 -9.3 -1.1 -2.7 -3.1

Comparable 1-3/2023 4-6/2023 7-9/2023 10-12/2023 1-12/2023
operating
result, TEUR
Retail & 815 -386 261 -241 449
Commerce
Utilities -1,467 -1,689 -1,082 -785 -5,024
Total -652 -2,076 -821 -1,026 -4,575

Comparable 1-3/2023 4-6/2023 7-9/2023 10-12/2023 1-12/2023
operating
result, %
Retail & 7.7 -3.8 2.8 -2.3 1.1
Commerce
Utilities -42.4 -49.1 -36.2 -20.6 -36.7
Total -4.6 -15.3 -6.7 -7.2 -8.4

Adjusted product development activations and related depreciation:
 

Product 1-3/2023 4-6/2023 7-9/2023 10-12/2023 1-12/2023
development
activations
Retail & -290 -300 -363 -96 -1,048
Commerce
Utilities -537 -434 -337 0 -1,308
Total -826 -734 -700 -96 -2,356

Depreciation 1-3/2023 4-6/2023 7-9/2023 10-12/2023 1-12/2023
Retail & 249 251 260 72 831
Commerce
Utilities 257 276 289 10 831
Total 506 527 549 81 1,663

The items affecting comparability under the new definition are:
  • Significant restructuring arrangements and related financial items
  • Impairments
  • Items related to the sale or discontinuation of significant business operations
  • Costs incurred by the re-organization of operations
  • Costs incurred by the integration of acquired business operations
  • Severance packages for those permanently excluded from the cost structure
  • Non cash flow based fees and commissions
  • Costs incurred by changes in legislation
  • Fines and similar indemnities, damages, and legal costs
  • Significant changes in activations of development costs of own software products and related depreciation

The comparable key figures of Solteq's first interim report of 2024 will be prepared in line with the new comparability definition.

Distribution

Nasdaq Helsinki
Key media
www.solteq.com

Additional 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
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.

Stock Exchange Bulletin
Changes board/management/auditors
April 3, 2024, at 10:00 a.m.

Solteq Plc's EVP of Utilities and member of the Executive Team, Jaakko Hirvensalo, has announced his resignation. Hirvensalo will continue in his current position and as a member of the Executive Team until the end of April 2024.

Jaakko Hirvensalo has been employed by the company since 2021, joining the company after the business transfer agreement between Partiture Oy and Solteq. Hirvensalo has served in his current role as the EVP of the Utilities segment and a member of Solteq Group's Executive Team since January 1, 2023.
"We have made a tremendous journey in the Utilities segment, moving from a difficult situation towards a phase of exciting prospects. The foundation for success has been laid, and the time is right for me to continue my journey. I wish to express my deepest gratitude for the shared journey with the entire Utilities team, customers, and the Group Executive Team," summarizes Jaakko Hirvensalo.

The company will start the process of finding a new EVP for Utilities at once. 

"I want to thank Jaakko for contributing to revitalizing the Utilities business. Jaakko's work has been crucial for the future of the company and the Utilities segment. I wish Jaakko all the best in the future," comments Aarne Aktan, CEO of Solteq Plc.

Solteq Plc' Executive Team consists of the following members as of May 1, 2024: 
Aarne Aktan, CEO;
Jesper Boye, EVP of Retail & Commerce; 
Mikko Sairanen, CFO, General Counsel;
Oona Silén, VP of People and Culture;
Christa Tavan, Director of Marketing and Communications.
Vantaa, April 3, 2024
Solteq Plc
Further Information

CEO Aarne Aktan
Tel: +358 40 342 4440
E-mail: aarne.aktan@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 operates with nearly 500 professionals in Finland, Sweden, Norway, Denmark, Poland, and the UK.

Stock Exchange Bulletin
Decisions of the general meeting
March 27, 2024, at 2:00 p.m.

The Annual General Meeting of Solteq Plc was held today, 27 March 2024 without a meeting venue via real-time remote access. The Annual General Meeting supported all proposals made by the Board of Directors and Shareholders' Nomination Committee to the Annual General Meeting and adopted the following resolutions:

Financial statements, discharge of liability, and dividend distribution

The Annual General Meeting adopted the financial statements for the financial year 1 January-31 December 2023 and discharged the CEO and members of the Board of Directors who were active during the financial year from liability.

In accordance with the proposal of the Board of Directors, it was resolved that no dividend is distributed for the financial year that ended on 31 December 2023.

Electing a Board of Directors and their remuneration

The Annual General Meeting resolved that 7 members were elected to the Board of Directors. The Annual General Meeting resolved to elect the following members of the Board of Directors according to proposal of the Shareholders' Nomination Committee of Solteq Plc: Markku Pietilä, Katarina Cantell, Panu Porkka, Anni Sarvaranta, Mika Sutinen, Esko Mertsalmi and Lotta Airas. 

It was resolved that a monthly remuneration of EUR 5,000 will be paid to the Chairman of the Board and EUR 2,500 to the other Board members. In addition, the Chairman and other members will be paid a meeting fee of EUR 500 for each meeting of the Board and Board committee. In addition, Board members will be reimbursed for ordinary and reasonable expenses resulting from Board work against an invoice.

Auditor

The Annual General Meeting elected audit firm PricewaterhouseCoopers Oy as the auditor of the company, and it will also carry out the assurance of the Company's sustainability reporting for the financial year 2024. PricewaterhouseCoopers Oy has informed that Tiina Puukkoniemi, Authorised Public Accountant (KHT), Authorised Sustainability Auditor (KRT), is the auditor with principal responsibility, and she would also act as the responsible sustainability reporting assurance provider.

The auditor is remunerated according to a reasonable invoice approved by the company.

Remuneration report and remuneration policy for governing bodies

The Annual General Meeting adopted the remuneration report of the company's governing bodies for year 2023 and approved the amended remuneration policy for governing bodies.

Amendment of the Articles of Association

The Annual General Meeting approved the proposal of the Board of Directors to amend Articles 1 and 11 of the Articles of Association so that the domicile of the company is Espoo and that a general meeting of shareholders can be held in addition to the domicile of the company in Helsinki or Vantaa.

Authorizing the Board of Directors to decide on the issuance of shares, option rights, and other special rights entitling to shares

The Annual General Meeting authorized the Board of Directors to decide on a share issue carried out with or without payment and on issuing share options and other special rights referred to in Chapter 10, Section 1 of the Finnish Limited Liability Companies Act as follows:

The maximum total number of shares or other rights issued under the authorization is 2,000,000. The authorization includes the right to issue new shares and special rights or convey treasury shares. The new shares and rights can be issued and treasury shares conveyed in a directed share issue deviating from the shareholders' pre-emptive right of subscription if there is a weighty financial reason for the company, e.g., to improve the capital structure, to execute business acquisitions, and other business improvement arrangements. The authorization cannot be used to implement the company's incentive schemes. The authorization includes the right for the Board of Directors to decide on all other terms concerning the share issue and granting special rights, including the subscription price and payment of the subscription price in cash or in whole or in part by other means (subscription in kind) or by using the subscriber's receivable to offset the subscription price and record it in the company's balance sheet.

The authorization is effective until the next Annual General Meeting, however, no longer than 30 April 2025. This authorization cancels the corresponding decision made by the Annual General Meeting 2023.

Authorizing the Board of Directors to decide on repurchasing the company's own shares

The Annual General Meeting authorized the Board of Directors to decide on repurchasing the company's own shares as follows: The number of own shares to be repurchased based on the authorization cannot exceed 500,000. Shares may be repurchased in one or more lots. The Company may use only unrestricted equity to repurchase its own shares.

Own shares may be repurchased otherwise than in proportion to the share ownership of the shareholders (directed repurchase). The purchase price shall be at least the lowest price paid for the company's shares in regulated trading at the time of purchase and at most the highest price paid for Company shares in regulated trading at the time of purchase.

Own shares can be purchased to be used to improve the capital structure of the company, to execute business acquisitions and other business development arrangements, or as a part of the implementation of the company's incentive schemes.

The authorization is effective until the next Annual General Meeting, however, no longer than 30 April 2025. This authorization cancels the corresponding decision made by the Annual General Meeting 2023.

Authorizing the Board of Directors to decide on accepting the company's own shares as pledge

The Annual General Meeting authorized the Board of Directors to decide on accepting the company's own shares as pledge as follows: The Board of Directors is authorized to decide on accepting the company's own shares as pledge (directed) in connection with business acquisitions or when executing other business arrangements. The pledge may occur in one or several transactions. The number of own shares accepted as pledge cannot exceed 2,000,000. The Board of Directors decides on other terms concerning the pledge.

The authorization is effective until the next Annual General Meeting, however, no longer than 30 April 2025. This authorization cancels the corresponding decision made by the Annual General Meeting 2023.

Minutes

The minutes of the Annual General Meeting will be available by 10 April 2024 at the latest at www.solteq.com/generalmeeting.

Decisions of the Board of Directors' organizing meeting

In its organizing meeting after the Annual General Meeting, the Board of Directors elected Markku Pietilä as its chairman.

Mika Sutinen and Katarina Cantell ja Markku Pietilä were elected as members of the Audit Committee. Mika Sutinen acts as the Chairman of the Audit Committee.

SOLTEQ PLC

Distribution:

Nasdaq Helsinki
Key media
www.solteq.com

Further information: 

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

Solteq Plc
Stock Exchange Bulletin
Managers' Transactions
March 13, 2024, at 2:05 p.m.
Person subject to the notification requirement
Name: Great Expectations Capital Oy
Position: Member of the Board/Deputy member
(X) Legal person (1): Person Discharging Managerial Responsibilities In Issuer
Name: Aarne Aktan
Position: Chief Executive Officer
Issuer: Solteq Oyj
LEI: 743700HXWTM31ZHBXW13
Notification type: INITIAL NOTIFICATION
Reference number: 55306/4/4
____________________________________________

Transaction date: 2024-03-11
Venue: NASDAQ HELSINKI LTD (XHEL)
Instrument type: SHARE
ISIN: FI0009007991
Nature of transaction: ACQUISITION

Transaction details
(1): Volume: 1826 Unit price: 0.719 EUR
(2): Volume: 4905 Unit price: 0.72 EUR
(3): Volume: 3269 Unit price: 0.72 EUR

Aggregated transactions (3):
Volume: 10000 Volume weighted average price: 0.71982 EUR

Solteq Plc

Distribution:

Nasdaq Helsinki
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.

Solteq Plc
Stock Exchange Bulletin
Managers' Transactions
March 13, 2024, at 2:00 p.m.
Person subject to the notification requirement
Name: Great Expectations Capital Oy
Position: Member of the Board/Deputy member
(X) Legal person (1): Person Discharging Managerial Responsibilities In Issuer
Name: Aarne Aktan
Position: Chief Executive Officer
Issuer: Solteq Oyj
LEI: 743700HXWTM31ZHBXW13
Notification type: INITIAL NOTIFICATION
Reference number: 55300/7/9
____________________________________________
Transaction date: 2024-03-08
Venue: NASDAQ HELSINKI LTD (XHEL)
Instrument type: SHARE
ISIN: FI0009007991
Nature of transaction: ACQUISITION

Transaction details
(1): Volume: 711 Unit price: 0.719 EUR
(2): Volume: 954 Unit price: 0.719 EUR
(3): Volume: 3200 Unit price: 0.72 EUR
(4): Volume: 1666 Unit price: 0.72 EUR
(5): Volume: 1200 Unit price: 0.72 EUR
(6): Volume: 1000 Unit price: 0.72 EUR

Aggregated transactions (6):
Volume: 8731 Volume weighted average price: 0.71981 EUR

Solteq Plc

Distribution:

Nasdaq Helsinki
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.

Stock Exchange Bulletin
Notice to General Meeting
March 5, 2024, at 8:05 a.m.

Shareholders of Solteq Plc are hereby invited to the Annual General Meeting to be held on Wednesday 27 March 2024 at 10:00 (EET). The Annual General Meeting will be held without a meeting venue via real-time remote access in accordance with 11 § of the company's Articles of Association and Chapter 5, Section 16 (3) of the Finnish Limited Liability Companies Act. Instructions for participation are set out in Part C of this Notice of Annual General Meeting.

Shareholders can also exercise their voting rights by voting in advance. Instructions for advance voting are set out in Section C of this Notice of Annual General Meeting.

A. Agenda of the General Meeting

At the Annual General Meeting, the following matters will be considered:

1. Opening of the meeting

2. Calling the meeting to order

3. Election of persons to scrutinize the minutes and to supervise the counting of votes

4. Recording the legality of the meeting

5. Recording the attendance at the meeting and adoption of the list of votes

6. Presentation of the Financial Statements, Report of the Board of Directors, and the Auditor's Report for the financial year 2023

Presentation of the CEO's review.
 

The Financial Statements, Report of the Board of Directors, and Auditor's Report are available on the company's website at www.solteq.com/generalmeeting2024.

7. Adoption of the Financial Statements

8. Resolution on the use of the profit shown on the balance sheet and the distribution of dividend

The Board of Directors proposes to the Annual General Meeting that no dividend is distributed based on the balance sheet to be adopted for the financial year 2023.

9. Resolution on the discharge of the members of the Board of Directors and the CEO from liability for the financial period 1 January to 31 December 2023

10. Handling of the remuneration report for governing bodies

The company's Remuneration Report for governing bodies for the year 2023 based on the company's remuneration policy adopted in the Annual General Meeting of the company held on 10 June 2020 is attached to this notice and is available on Solteq Plc's website at www.solteq.com/generalmeeting2024.

The Board of Directors proposes that the Annual General Meeting approves the Remuneration Report for governing bodies for the year 2023.

11. Handling of the remuneration policy for governing bodies

The Board of Directors proposes that the Annual General Meeting approves the amended remuneration policy for governing bodies. The remuneration policy was last presented to the Annual General Meeting on 10 June 2020.

The remuneration policy has been amended regarding the setting of short-term and long-term incentive schemes for the CEO, so that the remuneration payable under short-term incentive schemes shall not exceed 75 % of the fixed annual salary and the weight of long-term incentive schemes shall at the target level constitute a significant part of the CEO's total remuneration. The amendment is intended to ensure that any variable remuneration is weighted towards the achievement of the company's long-term objectives.

The amended remuneration policy presented to the Annual General Meeting is attached to this notice and is available on the company's website at www.solteq.com/generalmeeting2024.

12. Resolution on the remuneration of the members of the Board of Directors

The Shareholders' Nomination Committee of Solteq Plc proposes to the Annual General Meeting that the remuneration of the to be elected members of the Board of Directors remain the same and are as follows during the term expiring at the end of the Annual General Meeting 2025:

A monthly remuneration of EUR 5,000 is paid to the Chairman of the Board and EUR 2,500 to the Board members. In addition, remuneration of EUR 500 per meeting will be paid to the Chairman of the Board and to each Board member for each Board and Board Committee meeting. In addition to the aforementioned remuneration, it is proposed that Board members will be reimbursed for ordinary and reasonable expenses resulting from Board work against an invoice.

13. Resolution on the number of members of the Board of Directors

The Shareholders' Nomination Committee of Solteq Plc proposes to the Annual General Meeting that 7 members are to be elected to the Board of Directors.

14. Election of members of the Board of Directors

The Shareholders' Nomination Committee of Solteq Plc proposes to the Annual General Meeting that for the term expiring at the end of the Annual General Meeting 2025, the current members of the Board of Directors Markku Pietilä, Katarina Cantell, Panu Porkka, Anni Sarvaranta, Mika Sutinen and Esko Mertsalmi are re-elected, and Lotta Airas is elected as a new member of the Board of Directors. The new member proposed to the Board of Directors is considered to be independent of the company, but not independent of its significant shareholders.

All proposed members of the Board of Directors have given their consent to the election.

Further information on the new member proposed to the Board of Directors is available on the company's website at www.solteq.com/generalmeeting2024.

15. Resolution on the remuneration of the auditor

The Board of Directors proposes to the Annual General Meeting that the company's auditor will be reimbursed according to the auditor's reasonable invoice approved by the company and that the same applies to the remuneration of the auditor for the certification of the company's Sustainability Report for the financial year 2024.

16. Election of auditor

The Company has an obligation to organize an audit firm selection procedure in accordance with the EU Audit Regulation (537/2014) concerning the audit for the financial year 2024 (mandatory auditor rotation). The Audit Committee has prepared its recommendation in accordance with the EU Audit Regulation and organized a statutory audit firm selection procedure.

In accordance with the recommendation of the Audit Committee, the Board of Directors proposes to the Annual General Meeting that, for the financial year 2024, one audit firm is elected as the auditor of the company and that audit firm PricewaterhouseCoopers Oy is elected as the auditor of the company. PricewaterhouseCoopers Oy has informed that Tiina Puukkoniemi, Authorised Public Accountant (KHT), Authorised Sustainability Auditor (KRT), is the auditor with principal responsibility.

In addition, it is proposed to the Annual General Meeting that PricewaterhouseCoopers Oy would, in accordance with Act (1252/2023) regarding amendments to the Finnish Companies Act, also carry out the assurance of the Company's sustainability reporting for the financial year 2024. PricewaterhouseCoopers Oy has notified the Company that Tiina Puukonniemi, Authorised Public Accountant (KHT), Authorised Sustainability Auditor (KRT), would act as the responsible sustainability reporting assurance provider.

Further information on the proposed auditor with the principal responsibility is available on the company's website at www.solteq.com/generalmeeting2024.

17. Amendment of the Articles of Association

The Board of Directors proposes to the Annual General Meeting that the Articles of Association is amended so that the domicile of the company is Espoo and that a general meeting of shareholders can be held in addition to the domicile of the company in Helsinki or Vantaa.

According to the proposal of the Board of Directors, the sections 1 § and 11 § would after the amendment read as follows:

1 § Company's trade name and domicile

The trade name of the company is Solteq Oyj, in Swedish Solteq Abp and in English Solteq Plc. The domicile of the company is Espoo.

11 § Notice of meeting, meeting venue, and method of participation

The notice of the general meeting shall be given by publication in the manner prescribed by the Board of Directors in a newspaper with a national circulation or on the company's website, or otherwise in a verifiable manner not earlier than two months and not later than three weeks before the general meeting, but always at least nine days before the record date of the general meeting.

In order to attend the general meeting, a shareholder must notify the company no later than on the date specified in the notice, which may not be earlier than ten days before the general meeting.

The general meeting shall be held at a venue determined by the Board of Directors, which may be in Helsinki or Vantaa in addition to the company's domicile.

The Board of Directors may decide that the general meeting is held without a meeting venue whereby the shareholders shall exercise their power of decision in full in real-time during the meeting using telecommunication connection and technical means (remote meeting).

Proposal for the new Articles of Association is available on the company's website at www.solteq.com/generalmeeting2024.

18. Authorizing the Board of Directors to decide on the issuance of shares as well as the issuance of option rights and other special rights entitling to shares

The Board of Directors proposes to the Annual General Meeting that the Board of Directors is authorized to decide on a share issue carried out with or without payment and on issuing option rights and other special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act as follows:

The maximum total amount of shares or other rights is 2,000,000. The authorization includes the right to give new shares and special rights or transfer the company's own shares. The authorization includes the right to deviate from the shareholders' pre-emptive right of subscription if there is a weighty financial reason for the company, e.g., to improve the capital structure, to execute business acquisitions, and other business improvement arrangements. The authorization cannot be used to implement the company's incentive schemes. The authorization is proposed to include the right for the Board of Directors to decide on the other terms concerning the share issue and the granting of special rights, including the subscription price and payment of the subscription price in cash or in whole or in part by other means (subscription in kind) or by using the subscriber's receivable to offset the subscription price and to record it in the company's balance sheet.

The authorization is effective until the next Annual General Meeting, however, no longer than 30 April 2025. This authorization will cancel the decision made by the Annual General Meeting 2023 regarding the same matter.

19. Authorizing the Board of Directors to decide on repurchasing the company's own shares

The Board of Directors proposes to the Annual General Meeting that the Board of Directors is authorized to decide on repurchasing the company's own shares as follows:

On the basis of the authorization, the number of own shares to be repurchased shall not exceed 500,000 shares. Shares may be repurchased in one or more lots. The Company may use only unrestricted equity to repurchase its own shares.

Repurchase of own shares may be made otherwise than in proportion to the share ownership of the shareholders (directed repurchase). The purchase price shall be at least the lowest price paid for the company's shares in regulated trading at the time of purchase and no more than the highest price paid for Company shares in regulated trading at the time of purchase. 

Own shares can be purchased to be used to improve the capital structure of the company, to execute business acquisitions and other business improvement arrangements, or as a part of the implementation of the company's incentive schemes.

The authorization is effective until the next Annual General Meeting, however, no longer than 30 April 2025. This authorization will cancel the decision made by the Annual General Meeting 2023 regarding the same matter.

20. Authorizing the Board of Directors to decide on accepting the company's own shares as pledge

The Board of Directors proposes to the Annual General Meeting that the Board of Directors is authorized to decide on accepting the company's own shares as pledge as follows:

The Board of Directors is authorized to decide on accepting the company's own shares as pledge (directed) in connection with business acquisitions or when executing other business arrangements. The pledge may occur in one or in multiple transactions.

The number of own shares to be accepted as pledge shall not exceed 2,000,000 shares.

The Board of Directors may decide on other terms concerning the pledge.

The authorization is effective until the next Annual General Meeting, however, no longer than 30 April 2025. This authorization will cancel the decision made by the Annual General Meeting 2023 regarding the same matter.

21. Closing of the meeting

B. Documents of the General Meeting

The above-mentioned proposals for resolutions on the agenda of the Annual General Meeting and this notice are available on Solteq Plc's website at www.solteq.com/generalmeeting2024. Solteq Plc's Financial Statements, Annual Report, Auditor's Report, and Remuneration Report are available on the aforementioned website. Copies of these documents and of this notice will be sent to shareholders upon request.

The minutes of the Annual General Meeting will be available on the aforementioned website no later than 10 April 2024. The CEO's review will also be published on Solteq Plc's website after the Annual General Meeting.

C. Instructions for meeting participants

1. Shareholder registered in the shareholders' register

Shareholders who are registered in the shareholders' register held by Euroclear Finland Oy on the record date of 15 March 2024, are entitled to participate in the Annual General Meeting. A shareholder whose shares in the company are registered in his/her personal Finnish book-entry account is registered in the company's shareholders' register. Changes in the shareholding after the record date of the Annual General Meeting do not affect the right to participate in the Annual General Meeting or the shareholder's voting rights.

Registration for the Annual General Meeting starts on 6 March 2024 at 12:00 (EET). A shareholder entered in the company's shareholders' register who wishes to attend the Annual General Meeting must register no later than 21 March 2024 at 16:00 (EET), by which time the registration must be received.

Registration for the Annual General Meeting:

a) via the company's website at http://www.solteq.com/generalmeeting2024. Electronic registration requires strong identification of the shareholder or his/her legal representative or proxy with a Finnish, Swedish or Danish bank ID or mobile certificate.

b) by e-mail or mail. Shareholders registering by mail or e-mail shall submit the registration form and advance voting form available on the company's website at http://www.solteq.com/generalmeeting2024 or equivalent information to Innovatics Oy by mail to Innovatics Oy, General Meeting / Solteq Plc, Ratamestarinkatu 13 A, 00520 Helsinki or by e-mail to agm@innovatics.fi.

When registering, the shareholder must provide the requested information, such as the shareholder's name, date of birth or business ID, contact details, the name and date of birth of any assistant or proxy. The personal data provided by shareholders to Solteq Plc will only be used in connection with the Annual General Meeting and the processing of the related necessary registrations.

Further information on registration and advance voting is available by telephone during the registration period of the General Meeting by calling Innovatics Oy at +358 10 2818 909 on weekdays from 9:00 to 12:00 (EET) and from 13:00 to 16:00 (EET)

2. Holder of nominee-registered shares

A holder of nominee-registered shares is entitled to participate in the Annual General Meeting based on the shares which would entitle him/her to be entered in the shareholders' register kept by Euroclear Finland Oy on the record date for the General Meeting 15 March 2024. Participation also requires that the shareholder is temporarily registered in the shareholders' register held by Euroclear Finland Oy by 22 March 2024 by 10:00 (EET) at the latest. In the case of nominee-registered shares, this is considered as registration for the Annual General Meeting. Changes in the shareholding after the record date of the General Meeting do not affect the right to participate in the Annual General Meeting or the shareholder's voting rights.

The holder of nominee-registered shares is advised to request well in advance the necessary instructions from his/her custodian bank regarding the temporary registration in the register of shareholders, the issuing of proxies and voting instructions, registration and attendance at the General Meeting and advance voting. The account manager of the custodian bank shall register the holder of nominee-registered shares who wish to attend the General Meeting temporarily in the register of shareholders of the company by the aforementioned date and time at the latest and, if necessary, arrange for advance voting on behalf of the holder of nominee-registered shares before the end of the registration period for holders of nominee-registered shares. Further information is also available on the company's website at www.solteq.com/generalmeeting2024.

The holder of nominee-registered shares who has registered for the General Meeting may also participate in the meeting in real-time using telecommunication connection and technical means if he/she so wishes. Real-time participation to the meeting requires, in addition to the temporary registration to the company's shareholders' register, the shareholder's e-mail address and telephone number and, if necessary, the submission of a power of attorney and other documents necessary to prove the right of representation by post to Innovatics Oy, Annual General Meeting / Solteq Plc, Ratamestarinkatu 13 A, 00520 Helsinki, Finland or by e-mail to agm@innovatics.fibefore the end of the registration period for holders of nominee-registered shares, so that the shareholder can be sent a link and password to attend the meeting. If a holder of nominee-registered shares has authorized his/her custodian bank to cast advance votes on his/her behalf, the votes thus cast will be taken into account as advance votes of the holder of the nominee-registered shares at the General Meeting, unless the holder of the nominee-registered shares votes otherwise at the General Meeting.

3. Proxy representatives and powers of attorney

A shareholder may attend the Annual General Meeting and exercise his/her rights there through a proxy representative. A shareholder's proxy may also elect to vote in advance as described in this notice if he/she so wishes. The proxy representative must authenticate to the electronic registration service and advance voting personally with strong authentication, after which he/she will be able to register and vote in advance on behalf of the shareholder that he/she represents. The shareholder's proxy must present dated proxy documents, or otherwise in a reliable manner prove that he/she is entitled to represent the shareholder at the Annual General Meeting. The right to representation can be proved by using the suomi.fi e-Authorizations service available in the electronic registration service.

Model proxy documents and voting instructions are available on the company's website at www.solteq.com/generalmeeting2024. If a shareholder participates in the Annual General Meeting through several proxies representing the shareholder with shares held in different securities accounts, the shares on the basis of which each proxy represents the shareholder shall be identified in connection with the registration.

Any proxy documents are requested to be submitted preferably as an attachment with the electronic registration or alternatively by mail to Innovatics Oy, General Meeting / Solteq Plc, Ratamestarinkatu 13 A, 00520 Helsinki or by e-mail to agm@innovatics.fibefore the end of the registration period. In addition to submitting the proxy documents, the shareholder or his/her proxy shall register for the General Meeting in the manner described above in this notice.

4. Participation instructions

Shareholders entitled to attend the Annual General Meeting participate in the meeting and exercise their rights fully and in real-time during the meeting remotely.

Remote access to the Annual General Meeting will be provided through Inderes Plc's general meeting service on the Videosync platform, which includes video and audio access to the Annual General Meeting. Remote access does not require any paid software or downloads. In addition to an internet connection, participation requires a computer, smartphone, or tablet with speakers or headphones for sound and a microphone for speaking. One of the following browsers is recommended for participation: Chrome, Firefox, Edge, Safari, or Opera. It is advisable to log in to the meeting system well in advance.

The participation link and password for remote participation will be sent by e-mail and/or SMS to the e-mail address and/or mobile phone number provided at the time of registration to all those who have registered for the Annual General Meeting no later than the day before the Annual General Meeting. Thus, the shareholders who have voted in advance may participate in the Annual General Meeting remotely via telecommunication. The votes cast by advance voters will be taken into account in the decision-making at the Annual General Meeting, regardless of whether they participate in the General Meeting remotely or not. If they participate remotely they will be able to change their advance votes during the meeting, should a vote take place.

For more information on the general meeting service, additional instructions for the proxy when representing several shareholders, contact details of the service provider and instructions in case of possible disruptions can be found at https://vagm.fi/support and for a link to test the compatibility of your computer, smartphone, or tablet with the network connection, please visit https://demo.videosync.fi/agm-compatibility?language=fi. It is recommended that the detailed participation instructions are read before the meeting.

5. Advance voting

A shareholder whose shares in the company are registered in his/her personal Finnish book-entry account may vote in advance between 6 March 2024 at 12:00 (EET) and 21 March 2024 at 16:00 (EET) on the agenda items 7-20 of the Annual General Meeting.

a) via the company's website at http://www.solteq.com/generalmeeting2024.  Login to the service is done in the same way as for registration in section C.1 of this notice.

b) by mail or by e-mail by submitting the advance voting form available on the company's website or equivalent information to Innovatics Oy at Innovatics Oy, General Meeting / Solteq Plc, Ratamestarinkatu 13 A, 00520 Helsinki, Finland or by e-mail at agm@innovatics.fi.

Advance votes must be received by the time the advance voting ends. The submission of votes in this way before the end of the registration and advance voting period shall be considered as registration for the Annual General Meeting, provided that it contains the above information required for registration.

A shareholder who has voted in advance cannot exercise the right to ask questions or demand a vote under the Finnish Limited Liability Companies Act unless he/she or his/her proxy attends the Annual General Meeting remotely.

With respect to holders of nominee-registered shares, the advance voting is carried out by the account manager. The account manager may vote in advance on behalf of the holders of nominee-registered shares whom he/she represents in accordance with the voting instructions given by them during the registration period set for the nominee-registered shares.

Proposal for a resolution that is subject to advance voting is deemed to have been made at the Annual General Meeting without any changes. The conditions and other instructions for electronic advance voting are available on the company's website at http://www.solteq.com/generalmeeting2024.

6. Other instructions/information

The meeting language is Finnish.

Shareholders present at the Annual General Meeting have the right to ask questions about the matters discussed at the meeting in accordance with Chapter 5, Section 25 of the Finnish Limited Liability Companies Act.

Changes in the shareholding after the record date of the Annual General Meeting do not affect the right to participate in the Annual General Meeting or the shareholder's voting rights.

On the date of the Notice of Annual General Meeting, Solteq Plc has a total of 19,396,501 shares representing the same number of votes. 

Vantaa, 5 March 2024

SOLTEQ PLC
BOARD OF DIRECTORS

Additional Information:

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

Attachment:

Remuneration Report 2023
Remuneration Policy 2024

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.

Stock Exchange Bulletin
Annual Financial Report
March 5, 2024, at 8:00 a.m.

Solteq Plc's Annual Report for the financial period January 1 - December 31, 2023, has been published in Finnish and English. In addition to the earlier published Report of the Board of Directors, Financial Statements, and Auditor's Report, the Annual Report consists of Corporate Governance Statement, Remuneration Report, and Statement of Non-Financial Information.

The Annual Report is attached to this stock exchange bulletin, and it is also available on the Company's website.
Attachments

Annual Report 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.

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.
 

Stock Exchange Bulletin 
Financial Statement Release
February 15, 2024, at 8.00 am
The actions taken to enhance operational efficiency turned the company's profitability in a more positive direction
October-December

  • Comparable revenue totaled EUR 14.2 million (14.2) and remained on the same level as comparison period. Revenue totaled EUR 14.3 million (16.9) and decreased by 15.6 percent
  • Comparable EBITDA was EUR -0.3 million (0.3) and EBITDA EUR -0.8 million (0.3). Comparable EBITDA percent was -2.0 (2.4)
  • Comparable operating result was EUR -1.0 million (-1.0) and operating result EUR -9.1 million
(-1.2) including a write-off of product development activations of EUR 7.5 million. Comparable operating result percent was -7.1 (-6.9)
  • Earnings per share was EUR -0.43 (-0.09)
January-December
  • Comparable revenue totaled EUR 54.2 million (57.2) and decreased by 5.3 percent. Revenue totaled EUR 57.7 million (68.4) and decreased by 15.8 percent
  • Comparable EBITDA was EUR 0.7 million (4.5) and EBITDA EUR 8.7 million (5.6). Comparable EBITDA percent was 1.3 (7.8)
  • Comparable operating result was EUR -3.9 million (-0.6) and operating result EUR -3.5 million
(-4.4). Comparable operating result percent was -7.2 (-1.1)
  • The ERP business based on Microsoft BC and LS Retail was transferred to Azets Group as of May 2, 2023. The profit on the sale of the business transaction improved the group's EBITDA and operating result by EUR 8.1 million
  • Earnings per share was EUR -0.28 (-0.28)
  • Solteq Group's equity ratio was 30.1 percent (30.3)
  • Net cash flow from operating activities was EUR -5.3 million (3.9)
  • The company expects the comparable revenue to grow and the operating result to be positive. The comparable revenue was EUR 54,183 thousand for the financial year 2023
Key figures
 

10 10 Change % 1-12/2023 1-12/2022 Change %
-12/202 -12/202
3 2

Revenue, TEUR 14,265 16,900 -15.6 57,655 68,426 -15.7
Comparable 14,244 14,240 0.0 54,183 57,230 -5.3
revenue, TEUR
EBITDA, TEUR -822 262 -414.1 8,695 5,555 56.5
Comparable EBITDA, -282 338 -183.6 694 4,469 -84.5
TEUR
Operating result, -9,090 -1,199 -658.3 -3,541 -4,406 19.6
TEUR
Comparable -1,012 -986 -2.6 -3,881 -613 -533.2
operating result,
TEUR
Result for the -8,281 -1,664 -397.8 -5,380 -5,404 0.4
financial period,
TEUR
Earnings per -0.43 -0.09 -397.8 -0.28 -0.28 0.4
share, EUR
Operating result, -63.7 -7.1 -6.1 -6.4
%
Comparable -7.1 -6.9 -7.2 -1.1
operating result,
%
Equity ratio, % 30.1 30.3

CEO Aarne Aktan: The actions taken to enhance operational efficiency turned the company's profitability in a more positive direction

We decided on two very significant company matters in the last quarter. Due to the changed circumstances, the treatment of product development costs was updated and aligned with the new operational logic. We ceased product development cost activations during the quarter and fully wrote off the activated product development costs of EUR 7.5 million from the balance sheet. Additionally, we concluded the change negotiations for the Utilities segment, resulting in an annual cost reduction of approximately EUR 3.8 million. Both implemented matters positively affect the company's business, but particularly the change in product development cost treatment practices complicates the comparison of the quarter to the corresponding quarter of the previous financial year.
The comparable revenue of Solteq Plc was EUR 14.2 million, remaining at the comparison period's level. The comparable revenue decreased by 1.4 percent in Retail & Commerce and increased by 4.3 percent in Utilities.
During the review period, the company announced a change in its product development practices. Developing its software products had become an integral part of continuous services and standard operations, and the costs related to product development no longer met the requirements for activating them. During the fourth quarter, the company treated the product development expenses of its existing software products as cost items in the income statement, as part of normal business operations, and ceased product development cost activations. This change affects the comparability of EBITDA and operating result of the fourth quarter to the corresponding quarter in 2022.
During the review period, the Group's comparable EBITDA was EUR -0.3 million, and product development activations amounted to EUR 0.1 million. In the fourth quarter of 2022, the comparable EBITDA was EUR 0.3 million, and product development activations amounted to EUR 0.9 million. Excluding the impact of activations, the Group's comparable EBITDA was EUR 0.2 million better than in the comparison period.
The Group's comparable operating result was EUR -1.0 million in the review period. Still, EUR 0.1 million in depreciations related to product development activations were conducted. In the fourth quarter of 2022, the comparable operating result was EUR -1.0 million, and depreciations related to product development activations accounted for EUR 0.5 million. Excluding the impact of activations and depreciations, the company's comparable operating result was EUR 0.4 million better than in the comparison period.
Additionally, in December 2023, the company assessed the product development investment activations on the balance sheet and the expected returns. As a result of the assessment, the company made a EUR 7.5 million write-off, issued a profit warning, and updated its profit guidance.
During the review period, the revenue and business result of the Utilities segment developed positively. This was due to the completed change negotiations, the restructuring of operations, and the development of the product business. The change negotiations, initiated to improve profitability and operational efficiency, were completed on October 10, 2023. As a result of the negotiations and implemented efficiency and cost-saving measures, the company expects to achieve approximately EUR 3.8 million in cost savings annually. These savings are anticipated to be fully realized during the fiscal year 2024, although optimizing cost structure during the review period has enhanced the segment's profitability already. The change negotiations resulted in a one-time cost of approximately EUR 300 thousand, which is included in the segment's personnel costs. The Utilities segment's long-term market outlook is expected to remain good, providing opportunities for profitable growth.
The performance of the Retail & Commerce segment was hindered by the continued volatility of the global economy and its impact on demand. Customer organizations were cautious regarding investments, which led to delays in decision-making and scale-downs of scopes in project deliveries. The long-term market outlook for the Retail & Commerce segment is expected to remain moderate, with demand anticipated to recover as the markets stabilize.

Profit Guidance 2024

The company expects the comparable revenue to grow and the operating result to be positive. The comparable revenue was EUR 54,183 thousand for the financial year 2023
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.
Financial reporting

The Financial Statements Bulletin has been prepared in accordance with the recognition and valuation principles of IFRS standards and using IAS 34 and the same accounting policies as the Financial Statements 2022. The new IFRS standards, taken into use on January 1, 2023, do not have a significant impact on the Group's Financial Statements Bulletin. The Financial Statements Bulletin is based on the unaudited Financial Statements of 2023.
Attachments

Solteq Plc's Financial Statements Bulletin 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.

Stock Exchange Bulletin
Changes board/management/ auditors
February 2, 2024, at 2:15 p.m.
The composition of the Executive Team of Solteq Plc changes as of February 2, 2024. With the change, Kari Lehtosalo, the company's CFO and member of the Executive Team since 2019, will step down from his position by mutual agreement. The Board of Directors of Solteq Plc has appointed LL.M. Mikko Sairanen (b. 1985) as the company's new CFO. He will also continue in his role as the company's General Counsel.

"I want to thank Kari for the shared years during which he has steered the company's finances through the pandemic and challenging times. Kari's contribution to developing the company's finance and financial management has been significant. I wish Kari success in the future," says Solteq's CEO Aarne Aktan.

Mikko Sairanen, stepping into his new role, has served as the General Counsel since 2014 and as a member of the current Executive Team. He is an experienced corporate law expert, and he has worked in the company since 2014.

"Mikko's appointment is an extremely positive turn of events for the company. The company is currently at a stage where Mikko's visionary expertise in corporate law, financial management, and finance will serve the company in the best possible way," explains Aktan.

Solteq Plc' Executive Team consist of the following members from February 2, 2024, on: 

CEO Aarne Aktan;
EVP of Solteq Retail & Commerce Jesper Boye; 
EVP of Solteq Utilities Jaakko Hirvensalo;
CFO, General Counsel Mikko Sairanen;
VP of People and Culture Oona Silén;
Director of Marketing and Communications Christa Tavan.

Vantaa, February 2, 2024

Solteq Plc
Board of Directors

Further information:

CEO Aarne Aktan
Telephone: 040 342 4440
Email: aarne.aktan@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.

Stock Exchange Bulletin
Other information disclosed according to the rules of the Exchange
January 25, 2024, at 4:00 p.m.
 
Solteq Plc's Shareholders' Nomination Committee proposes to the Annual General Meeting, planned to be held on March 27, 2024, that seven (7) members are elected to the Board of Directors, the current Board members - Markku Pietilä, Katarina Cantell, Panu Porkka, Anni Sarvaranta, Mika Sutinen, and Esko Mertsalmi - are re-elected, and Lotta Airas is elected as a new member of the Board. The Board members' term will end at the close of the 2025 Annual General Meeting.

Lotta Airas has been the CEO and a board member of Profiz Business Solution Oy since 2015. Before joining Profiz, from 2012 to 2014, she worked as a management consultant at Reddal. Airas holds a Master's degree in Business Administration from Aalto University.
All nominees are independent of the company. All nominees are independent of the company's major shareholders, except for Markku Pietilä and Lotta Airas.

The Nomination Committee proposes that the Board appoint Markku Pietilä as the Chairman of the Board for the next term.

The Nomination Committee proposes for the 2024 Annual General Meeting that the remuneration of the Board remains at a current level as follows:
  • A monthly remuneration of EUR 5,000 is paid to the Chairman of the Board and EUR 2,500 to the Board members.
  • A remuneration of EUR 500 per meeting will be paid to each Board member for each Board and Board Committee meeting.

In addition to the aforementioned remuneration, it is proposed that Board members be reimbursed for ordinary and reasonable expenses resulting from Board work against an invoice.

The Nomination Committee that has made proposals for the 2024 Annual General Meeting includes:
  • Markku Pietilä, Chairman of the Board, nominated by Profiz Business Solution Oy 
  • Jukka Vähäpesola, Head of Equities, nominated by Keskinäinen Työeläkevakuutusyhtiö Elo 
  • Karoliina Lindroos, Head of Responsible Investment and Sustainability, nominated by Keskinäinen Eläkevakuutusyhtiö Ilmarinen 
  • Hanna Kaskela, Senior Vice President of Sustainability & Communications, nominated by Keskinäinen työeläkevakuutusyhtiö Varma 

The proposals of the Nomination Committee were unanimous.

Solteq Plc's Annual General Meeting decided on March 29, 2023, to establish a Shareholders' Nomination Committee. The Nomination Committee of Solteq Plc consists of representatives of the four largest shareholders, registered on August 31, 2023. 

The proposals of the Nomination Committee will be included in the later published Notice to the Annual General Meeting.
Further information:
Markku Pietilä
Chairman of the Board of Directors, Solteq Plc
Email: markku.pietila@solteq.com
Telephone: +358 50 045 5156

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.

Shareholders Date % of Shares % of Votes
Profiz Business Solution Oyj 30.04.2024 11.3% 11.3%
Elo Mutual Pension Insurance Company 30.04.2024 10.3% 10.3%
Ilmarinen Mutual Pension Insurance Company 30.04.2024 8.5% 8.5%
Varma Mutual Pension Insurance Company 30.04.2024 8% 8%
Aktia Capital Mutual Fund 30.04.2024 4% 4%
Aalto Seppo Tapio 30.04.2024 3.2% 3.2%
Saadetdin Ali Urhan 30.04.2024 3.1% 3.1%
Säästöpankki Small Cap Mutual Fund 30.04.2024 2.6% 2.6%
Incedo 30.04.2024 1.6% 1.6%
Mandatum Life Insurance Company Ltd. 30.04.2024 1.5% 1.5%

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Company Facts

CEO Aarne Aktan
Market cap (EURm) 16
Industry IT Services
Ticker SOLTEQ

Guidance

Group revenue in 2023 is expected to be EUR 57-59m and operating profit (excl. ~EUR 8m profit recognition from the Microsoft BC and LS retail based ERP business divestment and ~EUR 6.3m one-off product development write-off) to be negative

Financial targets

Revenue growth over 20% p.a., operating profit margin of 8%, and net debt/EBITDA ratio below 3.5

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