Solar A/s Class B · OMXCOP:SOLAR_B

Solar A/s Class B — Non-Deal Roadshow (March 2014)

20 slides from Solar A/s Class B's roadshow presentation, Mar 13, 2014

  1. Slide 1: Solar Group Investor presentation

    Solar Group Investor presentation Michael H. Jeppesen, Group CFO 13 March 2014, Brussels roadshow

  2. Slide 2: Investor presentation - agenda

    Investor presentation - agenda 1 Management agenda 2 The results we achieved in Q4 and FY 2013 3 The results we expect in 2014 4 Group strategy 2014-2015 – financial objectives 5 Dividends and capital structure 6 Appendix – facts about Solar 2

  3. Slide 3: Management agenda

    Management agenda  2013 EBITA exceeded expectations despite write-down on property in Solar Deutschland.  In 2013, we managed to generate strong cash flows and reduce our interest- bearing debt considerably. We expect this trend to continue in 2014.  On this basis, the Board of Directors will pro

  4. Slide 4: Organic growth of -4.9% in Q4 when adjusted for working days

    Organic growth of -4.9% in Q4 when adjusted for working days Organic growth Q4 2013 Q4 2012 8% Revenue, € million 403.8 436.7 6% Revenue growth, % -7.5 -1.3 4% Organic growth, % -5.3 -3.2 2% 0% -2% -4% -6% -8% -10% -12% Q1 Q2 Q3 Q4 FY 2012 2013 4

  5. Slide 5: Difficult market conditions again in Q4

    Difficult market conditions again in Q4 Negative growth in three of our four key markets Market update – key markets € million Q4 2013 Q4 2013 Revenue Org. growth  In Denmark, we saw double-digit negative Denmark 92.9 -19.9% growth as sales of solar panels dropped compared to Q4 2012. Sweden 87.9 -

  6. Slide 6: Gross profit margin up 0.7% compared with Q4 2012

    Gross profit margin up 0.7% compared with Q4 2012 Gross profit margin Q4 2013 Q4 2012 21,8% Revenue, € million 403.8 436.7 21,6% Revenue growth, % -7.5 -1.3 21,4% Organic growth, % -5.3 -3.2 21,2% Gross profit, € million 87.8 91.5 21,0% Gross profit margin 21.7 21.0 20,8% 20,6%  Gross profit develo

  7. Slide 7: Normalised EBITA of € 16.8m in Q4 2013

    Normalised EBITA of € 16.8m in Q4 2013 EBITA margin Q4 2013 Q4 2012 4,5% 0,5% -0.8% Revenue, € million 403.8 436.7 4,1% 0,5% -0.2% 3,7% Revenue growth, % -7.5 -1.3 0,8% 3,4% 3,3% Organic growth, % -5.3 -3.2 2,9% 2,6% 2,5% Gross profit, € million 87.8 91.5 2,1% Q412 COGS EOC Staff Debt. Deprec. Q413

  8. Slide 8: Normalised EBITA of € 32.2m in 2013

    Normalised EBITA of € 32.2m in 2013 EBITA margin FY 2013 FY 2012 2,6% 0,1% Revenue, € million 1,531.5 1,638.9 2,4% -0.7% 0,1% 2,2% 0,0% 2,2% Revenue growth, % -6.6 11.1 2,0% 1,8% 0,0% -0.3% Organic growth, % -5.9 -0.1 1,6% 1,4% 1,4% Gross profit, € million 324.7 346.6 1,2% 2012 COGS Op. in. EOC Staf

  9. Slide 9: Net working capital at year-end down to 11.5% but positively impacted by one-off effect

    Net working capital at year-end down to 11.5% but positively impacted by one-off effect in Denmark of 0.3% Net working capital (NWC) Net interest-bearing debt (NIBD) Acquisition of € million No. of € million enterprises in times NL, BE, DE, AU 200 3,1 270 16% 180 2,9 Acquisition of 250 15% 160 enter

  10. Slide 10: Cash flow from operating activities was € 39.7m in Q4 and € 35.1m in FY 2013

    Cash flow from operating activities was € 39.7m in Q4 and € 35.1m in FY 2013 Cash flow Cash flow, operating activities € million € million 40 45 39.7 -3.4 35 38,2 -0.1 39,7 -2.2 40 -0.5 30,3 30 35 25 30 20 25 15 20 10 -7.2 7,9 15 5 -3,3 10 0 7,1 -6.2 -5 5 -10 0 9M13 Oper. act. Inv. act. Fin. act. Ot

  11. Slide 11: Guidance 2014: Revenue € 1,465-1,510m, EBITA € 25-32m

    Guidance 2014: Revenue € 1,465-1,510m, EBITA € 25-32m 2014 expectations: Revenue EBITA  Expected Solar 8000 roll-out costs and € million € million restructuring costs of approx. € 3m. 1.750 50 1.700 45  The lower expectation level equals 1.650 40 negative growth of approx. 2.5%, 1.600 35 while the

  12. Slide 12: To increase profits is our number one priority

    To increase profits is our number one priority We will achieve this through focused strategies and operation Foundation Ambition Strategies Operations Values Glow, SmartFun Focus on & Courage Northern Europe Daily operations To become one of Increase the most profitable productivity Continuous Missi

  13. Slide 13: Financial objectives 2015 onwards

    Financial objectives 2015 onwards  In 2015, strengthened growth, earnings, net working capital and ROIC are expected. This presupposes that our Financial key markets maintain current levels. Year objectives  Objectives for equity ratio, gearing and Equity ratio 2014-15 35-40% dividends are unchang

  14. Slide 14: Dividends and capital structure

    Dividends and capital structure  In 2013, Solar managed to generate positive cash flows and reduce debt. We expect this trend to continue in 2014. On this basis, the Board of Directors will propose payout of dividends of DKK 12.00 (€ 1.61) per share for 2013 at the upcoming annual general meeting.

  15. Slide 15: Appendix Facts about Solar

    Appendix Facts about Solar

  16. Slide 16: Solar in short

    Solar in short One of Northern Europe’s leading technical wholesalers Technical wholesaler within electrical, heating, plumbing and ventilation products Business We provide products, knowledge and solutions Presence Servicing customers in 9 countries from 11 central warehouses Revenue and employees

  17. Slide 17: Solar is listed on NASDAQ OMX Copenhagen and has a majority of long term investors

    Solar is listed on NASDAQ OMX Copenhagen and has a majority of long term investors 17

  18. Slide 18: Electrical - HVAC&R - Plumbing - Renewable Energy

    Solar’s business areas are within: Electrical - HVAC&R - Plumbing - Renewable Energy Marine & Installation Cables Offshore Lighting Industry Heating, Water Renewable Communication Security Ventilation & Sanitation energy 18

  19. Slide 19: Solar delivers products and solutions to customers within

    Solar delivers products and solutions to customers within: Residential Industry Marine Utility Public Sector and and and Commercial Offshore Infrastructure Buildings Business Ace Operation People 19

  20. Slide 20: Solar Blue Energy - making energy efficiency a better business

    Solar Blue Energy - making energy efficiency a better business A strategic focus area: The 20-20-20 targets of the EU Climate and Energy Package are: • A sales, marketing and training concept. • A 20% reduction in EU greenhouse gas • One energy-efficient product is good emissions based on 1990 level

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