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Modus Group had revenue of EUR 392 million, investments exceeded a quarter of a billion euros

Modus Group, an international group of companies active in renewable energy, mobility services, automotive business, and investment management, had consolidated unaudited sales revenues of EUR 392 million in 2023, which is at a similar level to 2022 (EUR 404 million). The Group's earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to EUR 45 million while investments in Lithuania and abroad almost doubled to EUR 262 million.

In 2023, Modus Group's gross revenues decreased slightly by 3% from EUR 404 million to EUR 392 million, while consolidated EBITDA decreased by 42% to EUR 45 million in the same period. On the other hand, the Group's investments in development projects exceeded a quarter of a billion euros, amounting to EUR 262 million, an increase of 90% compared to the previous year.

"2023 was another challenging year: concerns about the war in Ukraine continued, high operating and borrowing costs slowed consumption and investment, and uncertainty remained about the economic outlook. In this context, Modus Group's ability to maintain similar revenues as in 2022 is considered a good result and proof that our business is resilient and well diversified both geographically and by sector," says Ainė Martinkėnaitė-Martyniuk, Chairman of the Board at Modus Group.

According to her, the economic cycle, which was unfavourable for growth, provided the companies with an opportunity to prepare some "homework": review internal processes, improve efficiency, and lay the groundwork for the projected economic recovery and the Group's sustainable development in the coming years.

Last year, Modus Group successfully issued a EUR 8 million bond, with a 2.5-fold increase in investor demand in the public offering. "Such active investor interest in our Group's bonds shows that the market has confidence in the resilience of our businesses, the strategy we have chosen and our long-term growth prospects," notes Martinkėnaitė-Martyniuk.

Green Genius successfully expanded its project portfolio

The Group's renewable energy business Green Genius saw a year-on-year revenue decline by a tenth to EUR 25 million due to the cyclical nature of energy projects, while EBITDA contracted by 64% to EUR 16 million. Last year, the company grew its portfolio of projects under construction to 256 MW, while total investments doubled to EUR 192 million. The company agreed financing for the development of a 500 MW solar portfolio in Italy and an 80 MW wind farm in Jurbarkas.

"Last year was a challenging year for newcomers to the renewable energy market, but Green Genius is a large and experienced player with projects across Europe, and the challenges have not prevented it from continuing to successfully expand its project portfolio. The company is currently developing several significant renewable energy projects, and planning for further growth is supported by the growing demand for renewable energy, sustainability, and energy independence in European countries," says Martinkėnaitė-Martyniuk.

In the coming years, Green Genius intends to expand its portfolio to include biomethane and transport decarbonization projects.

The need for mobility services has grown

Revenues of mobility companies (CityBee and MyBee) grew by 3% to EUR 114 million. The companies' EBITDA was EUR 11 million last year, down 35% from EUR 16 million in 2022.

"The MyBee car subscription service met expectations in all three Baltic countries. High inflation and rising borrowing costs have led consumers to try out this alternative to traditional forms of car ownership and get fast and convenient access to a car with a fixed monthly payment and a flexible contract. We have no doubt that the demand for this service will continue to grow," says Martinkėnaitė-Martyniuk.

Speaking about CityBee, she stresses that the economic situation has made people feel the need to save money and to be more courageous in choosing mobility alternatives. Also, as the supply of car-sharing services has increased, so has the overall demand for these services.

"Demand is consistently growing as more people try out car-sharing alternatives, existing customers use the service more frequently, and more drivers give up their cars to save money. Last year, CityBee focused its efforts on operational efficiency, service improvement, and data analysis, which gives us a better sense of our customers' needs," says the Chairman of the Board at Modus Group.

Demand for luxury car brands is rising

"Modus Group's automotive sales business revenue was down 6% year-on-year to EUR 249 million. EBITDA was down 5% last year, from EUR 20 million to EUR 19 million.

"In an environment of rising interest rates and record inflation rates, consumers have tended to postpone larger purchases until the future. Correspondingly, we have seen lower sales in the economy car segment, which is a natural part of the economic cycle. The slowdown in the economic segment at the Group level has been offset by the higher demand for luxury car brands, which is less affected by economic fluctuations. This year, we will continue to focus on the higher-end segment and will offer electric versions of our customers' favourite luxury brands," says Martinkėnaitė-Martyniuk.

Modus Asset Management expanded investment portfolios

In 2023, Modus Asset Management successfully continued to expand its solar PV investment fund portfolios in Poland and Lithuania and entered the Latvian market. The company also launched its first wind farm project in Lithuania. In addition, Modus Asset Management has agreed a partnership with asset management firm Atelier Investment Management to set up a feeder fund, the Clean Energy Infrastructure Access Fund. The investment strategy of this fund is to invest in the Clean Energy Infrastructure Fund, a closed-end fund for informed investors managed by Modus Asset Management. This is an attractive opportunity for an even broader range of investors to tap into the rapidly growing renewable energy market.

"With 7 years of experience and a deep understanding of the sector, even in a sluggish market, we have been able to attract EUR 97 million in investor commitments, which will help to further accelerate the region's transition to renewable energy. As interest rates fall, we expect a more buoyant market in 2024 and we will be able to further expand our projects, especially those based on Power Purchase Agreements (PPAs), which help businesses to secure attractive electricity prices and manage costs in the long term," says Martinkėnaitė-Martyniuk.

Investments increased by 90%

In 2023, Modus Group's total investment grew by 90% to EUR 262 million. The largest investments (a total of EUR 192) were made in the development of solar, wind, and biomethane projects. The mobility businesses CityBee and MyBee accounted for EUR 65 million. These funds were mainly used to improve services and enter new markets. Investments in the renewable energy and mobility businesses grew by 120% and 34%, respectively, compared to the previous year.

According to the Chairman of the Board at Modus Group, the development of renewable energy and mobility businesses will continue to be the focus of the largest bulk of investments.

"Globally, there is an increasing attention to sustainability, with growing commitments to decarbonization, advances in various renewable energy technologies, and a growing number of people looking for more sustainable and at the same time cheaper transport alternatives. More than ten years ago, we saw the first signs of these major changes, which allowed us to get on the wave early on and build the knowledge we need to continue to grow our innovative energy and mobility businesses," notes Martinkėnaitė-Martyniuk.

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