Otovo closes transaction to sell continental subscription assets to Swiss Life Asset Managers

28 Mar 2025 14:53 CET

Otovo ASA (“Otovo” or “the Company”) today completed the sale of its portfolio
of continental subscription assets to FORTE PV S.à r.l., part of a collective
investment scheme managed by Swiss Life Asset Managers (“SLAM”). Reference is
made to the announcement on 21 February 2025 regarding the signing of this
transaction. The total transaction is expected to come in at EUR 108 million, up
from previous estimate of EUR 105 million.

* Final transaction size for first close totals EUR 57.8 million, with a cash
release of EUR 13.2 million; net of repayment of debt related to Otovo’s
financing facility of EUR 38.4; and reinvestment by Otovo of EUR 6.2 million
(equal to 11% of transaction size, previously estimated to 12%)
* Payment from SLAM will for operational purposes be split into two tranches,
where the first consists of EUR 42.4 million, and the second tranche of EUR 9.3
million, to be received in April. Otovo will thus in total receive EUR 51.7
million, corresponding to the 89% stake sold to SLAM, and reinvest EUR 6.2
million in the joint entity
* As partners, Otovo and SLAM will continue to develop and scale the continental
subscription offering and Otovo will as a shareholder fund 2% (reduced from a
previously estimated 5%) of new investments under a Continuous Sale Agreement,
under which Otovo will continue to sell continental portfolio assets to SLAM
* The estimated size of the Continuous Sale Agreement is EUR 50 million in the
period Q1 2025 to Q3 2026. Otovo expects to realize a gross margin of
approximately 32% under this agreements with continuous - rather than delayed -
revenue recognition and cash effect

– The sale of the continental subscription portfolio is a transformative
milestone for Otovo. It shows the value in the unique infrastructure we have
built, and puts us on a clear path to profitability. We switch from investing to
harvesting, says Andreas Thorsheim, CEO and founder of Otovo.

Closing of this transaction is an important step in the company reset that has
also involved cost cuts executed in 2H 2024 and the introduction of a new and
more intimate sales approach. The new Otovo is characterized by:
* Exposure to megatrends in a huge market - Solving a defining problem of our
generation
* The best online infrastructure combined with the a lean cost structure
* The only pan-European leasing platform for home energy assets
* Lower breakeven point and high operational leverage
* Positive asymmetric risk into transformative years of European energy

– With this deal closed, my team and I can now focus our efforts on growing
sales volumes across Europe’s improving home energy markets, and getting Otovo
to profitability, says Thorsheim.


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For further queries, please contact:

Andreas Thorsheim, Chief Executive Officer
Phone: +47 93 06 51 78

Petter Ulset, Chief Financial Officer
Phone: +47 93 60 26 43

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to the STA section 5-12.

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About Otovo: For homeowners, Otovo is the easiest way to get solar panels on the
roof, and batteries in the home. Otovo is a marketplace that organizes hundreds
of local, high quality and qualified energy installers. The company uses its
proprietary technology to analyze the potential of any home and finds the best
price and installer for customers based on an automatic bidding process between
available installers.

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and more.

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