# Q1 2026 Financial Review

**From:** Anja Klüver, Chief Financial Officer
**To:** Board of Directors, Helios Renewables AG
**Date:** 14 March 2026
**Classification:** Board-confidential
**Auditor:** PricewaterhouseCoopers GmbH (limited review)

## Headline numbers (consolidated, IFRS)

| Metric | Q1 2026 | Q1 2025 | YoY | vs. plan |
|---|---|---|---|---|
| Revenue | €312.4 m | €280.9 m | **+11.2 %** | +2.1 % |
| Gross profit | €81.7 m | €69.4 m | **+17.7 %** | +4.5 % |
| Gross margin | 26.2 % | 24.7 % | +150 bps | +60 bps |
| Adjusted EBITDA | €41.9 m | €33.1 m | **+26.6 %** | +13.2 % |
| Adjusted EBITDA margin | 13.4 % | 11.8 % | +160 bps | +120 bps |
| Operating cash flow | €27.8 m | €18.2 m | **+52.7 %** | +30.4 % |
| Net debt | €204.1 m | €218.4 m | -€14.3 m | -€8.1 m better |
| Net debt / LTM adj. EBITDA | 1.41× | 1.69× | -0.28× | -0.15× |

LTM = last twelve months. Adjustments: M&A advisory (€1.9 m), restructuring of the Antwerp PV-module line (€2.4 m), and a one-off R&D-tax-credit reclassification (-€3.1 m, see §3).

## Revenue mix

| Segment | Q1 2026 | YoY | % of total |
|---|---|---|---|
| PV modules | €198.1 m | +6.0 % | 63.4 % |
| Grid-scale battery storage | €71.0 m | +58.1 % | 22.7 % |
| EPC services (legacy) | €31.5 m | +2.1 % | 10.1 % |
| O&M services | €11.8 m | +9.4 % | 3.8 % |

The decelerating module growth is consistent with the strategic-plan thesis (`04-strategic-plan-update.md`). Storage growth of 58 % is **demand-constrained, not capacity-constrained** — our Bratislava partnership with Kintron will release that constraint from Q4 2026 onwards.

## R&D-tax-credit reclassification (one-off)

PWC has requested that we reclassify €3.1 m of FY 2024 German R&D tax credits from "above-the-line revenue offset" to "below-the-line tax-line credit," following the BMF clarification of 11 January 2026. The cash impact is zero. The presentation impact is a -€3.1 m hit to reported gross profit and a +€3.1 m benefit to the tax line. Net income unchanged. Q1 2025 comparatives have been restated for like-for-like comparability.

**Audit committee note:** PWC partner Sigrun Olsen confirms this is presentational only and is not a restatement-triggering finding.

## Cash flow and balance sheet

- **Operating cash flow** of €27.8 m benefitted from €9.2 m of working-capital release as battery-storage receivables matured into shorter cycles. Going forward we expect a swing back: the CRO paper recommends a €22 m working-capital build to pre-buy cathode inventory (see `06-risk-register-update.md`).
- **Net debt** declined by €14.3 m to €204.1 m. Leverage covenant is 3.0× LTM EBITDA; we are at 1.41× with ample headroom.
- **Liquidity**: undrawn RCF €120 m + cash €68 m = €188 m of available liquidity. Two-year debt-maturity schedule shows €45 m due in May 2027 (private placement, 4.1 %).

## FX exposure

USD-denominated cell purchases create translation exposure of ~€55 m for the remainder of 2026. We are 60 % hedged via vanilla forwards out to Q3 2026 at €/USD 1.078 (current spot 1.071). Recommend extending the hedge to 70 % at the next treasury meeting.

## Capital allocation envelope (FY 2026)

Approved at the November 2025 budget meeting: €185 m of growth capex. The CSO paper proposes to reallocate €90 m of this from Antwerp PV-Phase-II to the Kintron Bratislava partnership — same total envelope, different deployment. The treasury team's view is that the reallocation is cash-flow-neutral within FY 2026 and net positive on a three-year DCF (~€34 m NPV uplift at 8.5 % WACC).

## Solarcraft acquisition — financial framing

For the proposed Solarcraft GmbH acquisition (`05-acquisition-proposal.md`):

- **Funding mix proposed:** €130 m new senior unsecured notes (indicative spread 215 bps over EURIBOR), €55 m drawdown of existing RCF. Post-deal pro-forma leverage **2.31×** LTM adj. EBITDA — still inside covenants.
- **Year-1 EPS accretion:** +3.8 % (pre-synergy), +6.2 % (with run-rate synergies, conservative case).
- **Sensitivity:** at the high end of the proposed €175–195 m EV band, year-1 EPS accretion drops to +2.1 % (pre-synergy). Walk-away EV (EPS neutral, pre-synergy) is approximately €218 m.

## Dividend recommendation (Resolution R-2026-Q1-01)

Management recommends a final dividend of **€0.42 per ordinary share** (FY 2025 total: €0.71, payout ratio 39 %). Ex-date 22 April 2026; payment 28 April 2026. The dividend is consistent with the policy of paying out 35–45 % of normalised earnings.

## Forward guidance

We re-affirm FY 2026 guidance of revenue €1.30–1.36 bn and adjusted EBITDA €165–180 m. Strong Q1 puts us at the upper end of the EBITDA range pre-Solarcraft. Post-Solarcraft contribution would be additive from June 2026 if closing assumption holds.

— Anja