Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Q2 2020 Earnings Presentation
13 slides from Solar A/s Class B's earnings presentation, Aug 12, 2020
Slide 1: Q2 2020 Quarterly Report
Q2 2020 Quarterly Report Presented by Jens E. Andersen, CEO Hugo Dorph, CCO Michael H. Jeppesen, CFO 12 August 2020
Slide 2: Agenda
AGENDA 1. Business update 2. Digital update 3. The results we achieved in Q2 & H1 2020 4. Outlook 2020 5. Q&A 2
Slide 3: Business update on our strategic focus areas: infrastructure
BUSINESS UPDATE ON OUR STRATEGIC FOCUS AREAS WE HAVE A STRONG MARKET POSITION WITHIN INFRASTRUCTURE Our agile business model has proved itself during challenging times Strategic suppliers • Our strong partnerships with suppliers mean that we have alternatives to both products and production sites, w
Slide 4: Business update: remote and digital go-live of SAP eWM in Solar Norge
BUSINESS UPDATE ON OUR STRATEGIC FOCUS AREAS Successful remote and digital go-live of SAP eWM in Solar Norge Operational excellence • As a digital sourcing and services company we continually invest in digital solutions to optimise customer experience and refine operational excellence. • Owing to ou
Slide 5: Business update on energy-efficient solutions
BUSINESS UPDATE ON ENERGY-EFFICIENT SOLUTIONS WE COMBINE GREEN INITIATIVES AND PRODUCTIVITY Green business opportunities • We focus on business opportunities to drive energy transition, support sustainable business and the displacement of fossil fuels. • We combine green initiatives and productivity
Slide 6: Digital update: dedicated focus on e-business
DIGITAL UPDATE DEDICATED FOCUS ON E-BUSINESS Solar is a leading digital player within our industry and geographical markets • As more than 60% of Solar’s orders are fully digital across our key markets, our web shop and app are a dominant part of our business. • The Solar Mobile app won two prizes a
Slide 7: Q2 revenue down by DKK 123m
Q2 REVENUE DOWN BY DKK 123M We saw adjusted organic Organic growth, adjusted for Solar Group growth of -1.6% number of working days • Solar is a digital company and during 7% Q2 Q2 COVID-19 we have seen the 6% 2020 2019 advantages of serving our customers through digital channels. 5% Revenue, DKK m
Slide 8: EBITA increase of 35% due to gross profit margin, efficiency gains and cost containment
EBITA INCREASE OF 35% DUE TO IMPROVEMENT OF GROSS PROFIT MARGIN, EFFICIENCY GAINS AND COST CONTAINMENT EBITA increased by Q2 EBITA margin Solar Group DKK 21m development • Gross profit decreased by DKK 18m 3,5% Q2 Q2 but we saw continuous improvement 0,7% 0,0% 0,1%-0,1%3,0% 2020 2019 in the gross pr
Slide 9: In H1, EBITA increased to DKK 178m
IN H1, EBITA INCREASED TO DKK 178M Improved EBITA in H1 both for Solar Group core and related business DKK million Core business Related business 200 H1 H1 H1 H1 10 178 2020 2019 2020 2019 180 47 Revenue, DKK m 5,502 5,530 288 295 160 EBITA, DKK m 177 147 1 -7 140 -16 Adj. organic growth, % 0.0 5.6
Slide 10: Total cash flow of DKK 66m
TOTAL CASH FLOW OF DKK 66M Cash flow, Cash flow, total operating activities DKK million DKK million 400 350 212 -44 282 -18 350 -198 300 282 300 250 250 200 200 141 -35 150 150 0 138 8 0 100 100 72 50 50 0 0 Q1 2020 Oper. act. Inv. act. Fin. act. FX Q2 2020 Net profit Depr., Tax & adj. Invent. Recei
Slide 11: Development in net working capital and net interest-bearing debt
DEVELOPMENT IN NET WORKING CAPITAL (NWC) AND NET INTEREST-BEARING DEBT (NIBD) One of our focus areas in 2020 is NIBD and gearing to reduce the inventory level DKK million NWC% DKK million Gearing, no. of times 1.450 13,0% 1.400 3,5 1.400 12,0% 1.200 3,0 1.350 11,0% 1.000 2,5 1.300 10,0% 800 2,0 1.25
Slide 12: New guidance 2020: revenue of DKK 11.4bn and EBITA of DKK 400m
NEW GUIDANCE 2020 IS REVENUE OF DKK 11.4BN AND REITERATION OF EBITA OF DKK 400M Increased gross profit margin, efficiency gains and cost containment are to deliver EBITA of DKK 400m Guidance overview • Due to the COVID-19 pandemic, we see an increased risk in the New Withdrawn market outlook for 202
Slide 13: Time for Q&A
TIME FOR Q&A Solar is a leading sourcing and services company Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses 13