Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — H1 2009 Earnings Presentation
29 slides from Solar A/s Class B's earnings presentation, Sep 18, 2009
Slide 1: solar stronger together
solar stronger together 2009 02
Slide 2: Agenda
Agenda - Highlights H1 2009 - The results we achieved in H1 2009 - The results we expect in Y 2009 - Questions & answers Herring shoals may consist of thousands of herrings that instinctively react as one organism, for example altering the shoal’s form and direction in a split second. At Solar, we c
Slide 3: Highlights H1 2009
Highlights H1 2009 When swans migrate south through Europe, they always fly in a V formation with the strongest individual in the front, charting the course and sheltering the weaker swans behind it. Solar wants to be a market leader, the one that drives innovation in all areas and markets in which
Slide 4: Highlights H1 and new FY 2009 guidance
Highlights H1 and new FY 2009 guidance • Revenue of € 717.8m and EBITA of € 15.1m exceeded expectations • In 2009, planned and already implemented staff reductions resulted in annual savings of € 19m When adding measures implemented in H2 2008, total annual savings amount to app. € 26m • Strong posi
Slide 5: Highlights: Profit Management and Growth
Highlights • Profit Management / our way to monitor profitability Growth • Blue Energy concept / our way to offer energy-efficient products and solutions • Solar Gateway / our new web portal with single sign-on 5
Slide 6: Highlights
Highlights • Restructuring and cost reductions ongoing • Net working capital reduction in line with target • Solar 8000 project on schedule • Solar Lean Way on track with roadmap 6
Slide 7: Highlights
Highlights • Internal communication / crisis management • Solar Navigator • Solar STAR 7
Slide 8: The results we achieved in H1 2009
The results we achieved in H1 2009 Anthills are inhabited by millions of ants that have always proved fascinating because of their ability to communicate, solve problems and organise work between them with each individual ant knowing it’s role and working for the good of the colony. During 2008 Sola
Slide 9: Revenue lower than last year but exceeding expected level
Revenue lower than last year but exceeding expected level Solar Group € million H1 2009 H1 2008 Difference Revenue 717.8 100.0% 738.3 100.0% (20.5) (2.8%) 9
Slide 10: Q2 organic growth -17.2% but adjusted for Easter effect -13.0%
Q2 organic growth -17.2% but adjusted for Easter effect -13.0% % 15.0 10.0 5.0 0.0 -5.0 -10.0 -15.0 -20.0 Q1 Q2 Q3 Q4 2008 2009 10
Slide 11: Negative organic growth in all enterprises
Negative organic growth in all enterprises Solar Group H1 2009 € million Revenue Organic growth Solar Danmark A/S 186.2 (18.2%) Solar Sverige AB 125.4 (5.6%) Solar Norge AS 103.8 (5.7%) Solar Nederland B.V. 193.0 (22.6%) Solar Deutschland GmbH 71.4 (0.2%) Solar Suomi Oy 7.5 (23.2%) Solar Polska Sp.
Slide 12: Gross profit amounted to € 149.5m
Gross profit amounted to € 149.5m Solar Group € million H1 2009 H1 2008 Difference Revenue 717.8 100.0% 738.3 100.0% (20.5) (2.8%) Gross profit 149.5 20.8% 155.5 21.1% (6.0) (3.9%) 12
Slide 13: Gross profit margin increased by 0.6% to 21.0% in Q2
Despite negative impact from freight, gross profit margin increased by 0.6% to 21.0% in Q2 compared to Q2 2008 % 23.0 22.5 22.0 21.5 21.0 20.5 20.0 19.5 19.0 Q1 Q2 Q3 Q4 2008 2009 13
Slide 14: EBITA amounted to € 15.1m and exceeded expectations
EBITA amounted to € 15.1m and exceeded expectations Solar Group € million H1 2009 H1 2008 Difference Revenue 717.8 100.0% 738.3 100.0% (20.5) (2.8%) Gross profit 149.5 20.8% 155.5 21.1% (6.0) (3.9%) EBITDA 21.1 2.9% 34.4 4.7% (13.3) (38.7%) EBITA 15.1 2.1% 30.2 4.1% (15.1) (50.0%) 14
Slide 15: EBITA margin was 2.1% in H1
EBITA margin was 2.1% in H1. Restructuring costs had a negative impact of 0.4% % 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Q1 Q2 Q3 Q4 2008 2009 15
Slide 16: Costs are still too high, thus diluting the EBITA margin
Costs are still too high, thus diluting the EBITA margin % 4.5 4.1 (0.3) 4.0 (0.2) (1.2) 3.5 3.0 2.5 (0.1) (0.2) 2.1 2.0 1.5 1.0 H1 2008 Freight EOC Staff Debtors Deprec. H1 2009 16
Slide 17: Negative impact on EBITA from new branches in Germany
Negative impact on EBITA from new branches in Germany amounted to € 0.8m € million 20.0 17.0 15.0 11.8 10.0 6.7 5.1 5.0 3.8 4.5 3.2 0.3 0.6 0.2 0.0 (0.7) (0.9) (1.1) (0.3) (0.6) (0.5) (1.1) (2.7) -5.0 DK SE NO NL DE FI PL FO Aurora H1 2008 H1 2009 17
Slide 18: EBT amounted to € 9.6m
EBT amounted to € 9.6m Solar Group € million H1 2009 H1 2008 Difference Revenue 717.8 100.0% 738.3 100.0% (20.5) (2.8%) Gross profit 149.5 20.8% 155.5 21.1% (6.0) (3.9%) EBITDA 21.1 2.9% 34.4 4.7% (13.3) (38.7%) EBITA 15.1 2.1% 30.2 4.1% (15.1) (50.0%) EBIT 11.9 1.7% 26.8 3.6% (14.9) (55.6%) EBT 9.6
Slide 19: Operating activities contributed € 61.9m
Operating activities contributed € 61.9m compared to € 12.3m in H1 2008 € million 0 -10 -20 -30 -40 (9.2) -50 -60 (18.8) (0.6) (54.3) -70 -80 -90 (87.6) 61.9 -100 31.12.2008 Operating Investing Financing Other 30.06.2009 activities activities activities 19
Slide 20: Non-interest bearing liabilities contributed € 31.3m
Non-interest bearing liabilities contributed € 31.3m € million 80 70 31.3 61.9 60 50 40 15.5 1.6 30 20 9.2 (1.1) 10 5.4 0 Net profit Depr. & Tax & adj. Inventory Receiv. Liab. Cash flow amort. oper. 20
Slide 21: Intangible assets regarding acquisitions amounted to € 38.3m
Intangible assets regarding acquisitions amounted to € 38.3m € million H1 2009 H1 2008 Difference Difference Intangible assets 47.1 47.1 0.0 0.0% Property, plant and equipment 175.5 127.6 47.9 37.5% Investments 1.0 0.7 0.3 42.9% Fixed assets 223.6 175.4 48.2 27.5% 21
Slide 22: Less capital tied up in inventories
A focused effort means that less capital is tied up in inventories € million H1 2009 H1 2008 Difference Difference Inventories 148.5 155.4 (6.9) (4.4%) Trade receivables 205.5 224.8 (19.3) (8.6%) Other receivables 15.8 14.4 1.4 9.7% Cash 7.5 3.6 3.9 108.3% Current assets 377.3 398.2 (20.9) (5.2%)
Slide 23: Net interest-bearing debt amounted to € 191.4m
Net interest-bearing debt amounted to € 191.4m compared to € 229.0m in Q4 2008 € million H1 2009 H1 2008 Difference Difference Equity 201.5 219.5 (18.0) (8.2%) Interest-bearing liabilities 198.9 170.0 28.9 17.0% Provisions 24.9 19.7 5.2 26.4% Other liabilities 175.6 164.4 11.2 6.8% Liabilities 399.4
Slide 24: The results we expect in 2009
The results we expect in 2009 Ladybirds are easily recognised by their distinctive red wing-cases with black spots. But if you take a closer look, there are actually numerous ladybird species, varying in size, colour, number of spots and behavioural patterns. At Solar we value the diversity among ou
Slide 25: H2 2009 – business conditions
H2 2009 – business conditions • Customers' ability to pay their debts – an increasing concern • Revenue will continue to deteriorate due to a lack of new construction/contractor activity • Revenue from industry customers stable but at the low H1 level • Focus on energy efficiency is a business drive
Slide 26: Number one priorities are profit and cash flow
H2 2009 (similar to H1) Number one priorities are profit and cash flow Focus areas • Strengthen gross profit • Reduce staff costs and other costs • Reduce net working capital • Limit investments • Reduce net interest-bearing debt 26
Slide 27: FY 2009 – new guidance
FY 2009 – new guidance 2009 I 2009 II € million High Low High Low Revenue 1,450.0 1,350.0 1,430.0 1,365.0 EBITA 40.0 25.0 38.0 30.0
Slide 28: Questions and answers
Questions and answers Anthills are inhabited by millions of ants that have always proved fascinating Because of their ability to communicate, solve problems and organise work Between them with each individual ant knowing it’s role and working for the good of the colony. During 2008 Solar has worked
Slide 29: solar stronger together
solar stronger together 2009 02