How is growth and return the potential for one company?

Over the last 12-18 months, we have built up a large development portfolio of new projects in Denmark, Italy, Poland, Greece and Portugal with more on the way. These are projects that will be built over the next 1-5 years and will, if they all succeed, triple the company’s capacity up to 1 GWp. Construction in Poland and Portugal is in full swing. During the period, we expect to be able to deliver between 7% and 11% in returns to the shareholders.* *The scenario presented is an estimate of future performance based on evidence from the past on how the value of this investment varies, and/or current market conditions and are not an exact indicator. What you will get will vary depending on how the market performs and how long you keep the investment/product. Recommended holding periode is 20 years.

What have the historical returns been?

Since 2015 a share investment in Nordic Solar has given a stable average return of 9,3 %, annually. Past performance does not predict future returns.

What is the minimum investment?

The minimum investment in Nordic Solar is EUR 100,000.

How is the share price calculated?

The price is calculated according to the same principle as the valuation of the individual solar park, so that the price at all times best reflects the fair value of the total portfolio of solar parks.

What is the leverage in the company?

The ratio of debt financing currently amounts to approx. 50% in Nordic Solar A/S. The loan financing is primarily taken out as fixed-rate, non-cancellable loans. In order to optimize returns for our shareholders, the goal is to have a slightly higher degree of loan financing.

What are the biggest risks when investing in solar energy?

Developments in electricity prices, inadequate due diligence or unrealistic budgets are among the most significant risk. Historically, many solar parks have been subsidized in the form of high settlement prices for electricity production. Any retroactive changes to these subsidies have been the biggest single risk. However, the market is moving very fast towards subsidy-free solar parks, where electricity now, in most countries, is sold on market terms, either from day to day or on longer more predictable contracts. In the future, the development in electricity prices will therefore pose an increasing risk. An investment in a solar park is largely based on assumptions and budget prerequisites, and deviations from these can affect future returns. The quality of these budgetary assumptions is thus significant for risk and return. The risk can be minimized through quality in both budgeting and calculation methods, combined with thorough technical, legal and financial pre-analyzes (due diligence).

When can i expect my money to be invested?

Usually between 2-5 months, sometimes even faster. Theoretically, it can take up to 12 months, but that is based on a very conservative assessment.

Can you as a shareholder sell your shares, and what does it cost?

To the extent that the company in question has the liquidity to do so, a shareholder may, without notice* sell their shares back to the company, at the current monthly price less an administration fee of 1%. Formally, both companies have a general meeting resolution that authorizes the board of directors to buy back shares. In short, the authorization is the option to buy back 10% of the equity to the extent that the company can find the necessary liquidity for it. It has been agreed with the Board of Directors that Nordic Solar Energy has earmarked EUR 670,000 of a credit in the bank for a possible repurchase, a similar credit is expected to be established in Nordic Solar Global *For tax purposes, shareholders who wish to sell their shares back to the company must obtain prior approval from SKAT.

What is the difference between investing with you, compared to your competitors?

Our customers praise us for a straightforward and transparent business model with a fair, market cost structure, where all significant decisions are made in accordance with shareholders’ wishes and the guidelines set by the Board of Directors. If you compare Nordic Solar with similar companies in the industry, it is especially on the cost side and the realistic estimates and assumptions that form the basis for each individual investment decision that shareholders highlight as decisive for their choice of partner.

How does Nordic Solar calculate the value of the individual solar parks?

The value of the individual solar park is calculated by discounting the future cash flows in the budget to present value. The internal rate of return used for this may vary from country to country, and reflects a realistic assessment of the market return in that country at that time.

Can you use pension or VSO funds for the investment at Nordic Solar?

The shares can be acquired privately and are freely convertible, which is why they can subsequently be transferred to a pension deposit if you manage it yourself. As the shares are covered by the Capital Gains Tax Act, purchases of VSO funds will for tax purposes be considered a tax increase.

Can i buy more shares?

Please contact the company for the specific status of capital increases and investment opportunities. For the most part, there are no shares for sale, but Nordic Solar is continuously open for subscribing to new commitments in the loan programs.

What price is used when converting commitments to share purchase?

The share price is determined on the basis of the same principle as for the valuation of the individual solar parks, where cash flows from the budget are discounted back to present value. The share price thus reflects a realistic calculation of the value of the total portfolio of solar parks at the given time.

Do I have to convert my loan commitment into shares?

It is 100% voluntary if, at the time the commitment is drawn, you choose to take advantage of the conversion offer that is submitted to acquire shares in the company. The vast majority of investors choose to take advantage of the conversion offer to become a shareholder in Nordic Solar.

I have given a binding investment commitment – when will Nordic Solar draw the money?

An investment commitment runs for 12 months, but on average the commitment is utilized after 5-7 months, or before. As far as possible, shareholders will be kept informed via a monthly letter, but as there is often fierce competition for attractive projects, the secrecy of these negotiations must also be taken into account in relation to other stakeholders. If you as a shareholder choose to subscribe for shares when the commitment is drawn, you will receive a discount on the subscription commission, as compensation for the waiting period.

Why can I not buy shares right away?

To avoid periods of too much money in the account and thus lower returns for shareholders, the purchase of solar parks for the portfolio is financed with loan commitments made by the company’s shareholders and other investors. Purchasing solar parks and projects for the portfolio can take a long time and varies greatly in size, which is why planning the capital requirement is sometimes difficult. Access to investment commitments from investors strengthens Nordic Solar’s competitiveness and shareholders’ returns.

How often is the share price calculated and who determines the price?

The share price is calculated monthly according to pre-determined principles approved by the Board of Directors. For example, a solar park with an expected return of 6%, all other things being equal, (if the budget holds) will increase by about 0.5% per month. (1/12 of 6%). If an event should occur that affects the return, the share price is adjusted accordingly.

Frequently asked questions

Here you can find the questions most often asked when we meet our shareholders.
If there are any questions you need answered, we would love to hear from you.

Shares, returns, share-price and risk

The Company, The Board of Directors and Management

When will Nordic Solar be listed on the stock exchange?

From the very beginning in 2010, it has been a goal of Nordic Solar be listed on the stock exchange, and that goal is approaching. With the merger of the three companies, we have taken a very important step towards creating the correct and solid platform for growth and a possible listing. Before a possible stock exchange listing, there is still thorough analysis and preparation to be done in cooperation with the Board of Directors and shareholders.

Are you working on a stock exchange listing?

Yes the preparations for a stock exchange listing are well under way and have been for a few years. It has always been Nordic Solar’s ambition to become a public share, so that the spread of solar energy as a sustainable energy source can benefit as many people as possible. More specifically, the companies’ annual accounts in recent years have been prepared in accordance with the same IFRS accounting principles as those used by listed companies. Nordic Solar is also well under way with standardizing, optimizing and streamlining processes, e.g. the roll-out of a common ERP system in 10 countries is expected to be completed during 2021.

Do the Board and management have something at stake?

Yes, both the Board of Directors and management have invested significant amounts in the company and all employees are also shareholders. The company has an attractive warrant program for the Board, management, and employees, that ensures an incentive to create the greatest possible value for the company’s shareholders.

Reporting

Which new solar energy projects are in the pipeline?

At Nordic Solar, we work continuously with the purchase of new projects, and our pipeline of projects is constantly changing. Behind every investment there is a great deal of work to document all the essential assumptions for the budget which ultimately lays the foundation for the investment decision. Every year, the investment team considers many new investments corresponding to purchase prices of more than EUR 3 bill.

As a shareholder, do I receive ongoing reporting?

Yes, all shareholders receive a monthly report that includes stock price, production data, portfolio composition, any deviations from the budget and status of ongoing projects, new investments and investment programs.

All shareholders also automatically receive semi-annual and annual reports, newsletters, as well as notices of general meetings and invitations to other events.

Do you have unanswered questions?

– Have a non-committal talk with us

Please, contact me