Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Non-Deal Roadshow (March 2011)
22 slides from Solar A/s Class B's roadshow presentation, March 2011
Slide 1: Roadshow to London and Paris
SOLAR GROUP Roadshow to London and Paris Flemming H. Tomdrup, Group CEO Michael H. Jeppesen, Group CFO March 2011
Slide 2: Agenda
AGENDA Update on strategy #1 in Technical Wholesale The results we achieved in Q4 2010 The results we achieved in 2010 The results we expect in 2011 Possible acquisition Appendix – facts about Solar 2 Annual Report 2010 © SOLAR 2011
Slide 3: Update on Strategy #1 in Technical Wholesale
UPDATE ON STRATEGY #1 in Technical Wholesale Positive organic growth after eight quarters of negative growth Objectives 2010-2012 Actual 2010 Management agenda Organic growth of 2.2% in Q4 2010 and Organic growth* 0-3% (4.8%) 7.6 % in December EBITA margin* 4-5% 3.5% Margin up from 2.5% in 2009 Impa
Slide 4: Refreshed Group Strategy 2010-2015
REFRESHED GROUP STRATEGY 2010-2015 Strong focus on execution of company programmes Growth Group Company Programmes • Technical wholesaler 2010-2012 • Climate & energy / Blue Energy • To reach its financial objectives, Solar is • Utility & infrastructure continuing its Company Programmes • Facility m
Slide 5: Positive organic growth in Q4 2010
POSITIVE ORGANIC GROWTH IN Q4 2010 Positive organic growth at group level – first time since Q3 2008 Organic growth Q4 2010 Q4 2009 % 5 Revenue € m 397.7 379.9 0 Revenue growth 4.7% (7.9%) -5 Organic growth 2.2% (10.1%) -10 -15 -20 Q1 Q2 Q3 Q4 FY 2009 2010 5 Annual Report 2010 © SOLAR 2011
Slide 6: Positive organic growth – first time since 2008
POSITIVE ORGANIC GROWTH – FIRST TIME SINCE 2008 Denmark and Sweden are drivers of the positive growth at group level Q4 2010 € million Revenue Organic growth Positive growth in Denmark despite Solar Danmark A/S 98.0 12.5% a harsh winter. Solar Sverige AB 85.9 3.3% Strong economic growth in Solar Nor
Slide 7: Gross profit margin up in Q4
GROSS PROFIT MARGIN UP IN Q4 by 0.5 percentage points compared to Q4 2009 Gross profit margin Q4 2010 Q4 2009 % 22.0 Revenue € m 397.7 379.9 21.5 Revenue growth 4.7% (7.9%) 21.0 Organic growth 2.2% (10.1%) 20.5 Gross profit € m 84.2 78.6 20.0 Gross profit margin 21.2% 20.7% 19.5 Q1 Q2 Q3 Q4 FY • Val
Slide 8: Improved gross margin and lower staff cost
IMPROVED GROSS MARGIN AND LOWER STAFF COST are drivers of an EBITA improvement of 1.3 percentage points EBITA margin % 0.1 0.0 4.3 4.5 0.7 4.0 Q4 2010 Q4 2009 0.0 3.5 0.2 0.3 Revenue € m 397.7 379.9 3.0 3.0 Revenue growth 4.7% (7.9%) 2.5 2.0 Organic growth 2.2% (10.1%) 1.5 Gross profit € m 84.2 78.6
Slide 9: Minor decrease in net interest-bearing debt
MINOR DECREASE IN NET INTEREST-BEARING DEBT Acquisitions of Agat-System and Hanestrom/Melitta Net working capital Net interest-bearing debt € million % of revenue € million No. of times 330 23 280 3.5 X 310 22 260 3.3 X Acquisition of Acquisition of Vegro and Eltomont 240 3.1 X 290 21 Vegro and Elto
Slide 10: Cash flow from operating activities in Q4
CASH FLOW FROM OPERATING ACTIVITIES contributed with € 11.8m in Q4 Cash flow Cash flow from operating activities € million € million 40 20 11,8 (5.3) 35 0,3 0,1 32,0 5.1 (2.1) 30 15 25,1 (11.1) 4.4 11.8 25 9.3 20 10 6.2 15 10 5 5 0 0 30.09.2010 Operating Investing Financing Other 31.12.2010 Net prof
Slide 11: Despite negative growth, EBITA was up in 2010
DESPITE NEGATIVE GROWTH, EBITA WAS UP IN 2010 due to improved gross margin and cost control EBITA margin % 4.0 0.2 0.0 0.1 0.0 3.5 2010 2009 3.5 0.3 3.0 0.4 Revenue € m 1,401.5 1,431.4 2.5 2.5 Revenue growth (2.1%) (4.6%) 2.0 Organic growth (4.8%) (12.1%) 1.5 Gross profit € m 299.8 295.9 1.0 2009 CO
Slide 12: Cash flow from operating activities in 2010
CASH FLOW FROM OPERATING ACTIVITIES contributed with € 46.6m in 2010 Cash flow Cash flow from operating activities € million € million 90 60 46.6 (32.1) 80 24.9 46.6 50 19.0 (1.3) (3.9) 70 (16.7) 60 40 50 (13.8) 30 24.6 40 (0.2) 31.5 32.0 30 20 20 10 10 0 0 2009 Operating Investing Financing Other 2
Slide 13: Guidance 2011 on revenue impacted by exchange rate adjustments
GUIDANCE 2011 ON REVENUE IMPACTED BY exchange rate adjustments (SEK, NOK and PLN) Revenue € million EBITA € million 1800 80 Increased earnings and cash flow take 1600 centre stage, achievable through 70 1400 60 • Solar 8000 1200 50 1000 • Value realisation 800 40 30 • Acquisitions 600 20 400 • The e
Slide 14: Possible acquisition
POSSIBLE ACQUISITION Solar has initiated negotiations for the acquisition of four wholesalers Solar A/S has initiated negotiations for the acquisition of all the shares in the enterprises Conelgro B.V. in the Netherlands Claessen ELGB in Belgium GFI Gesellschaft für Installationstechnik mbH in Germa
Slide 15: Appendix – facts about Solar
Appendix – facts about Solar
Slide 16: Solar in short
Solar in short Solar is one of Northern Europe’s leading technical wholesalers Listed on NASDAQ OMX Copenhagen * € 1,401 m revenue – approx. 3,000 people Servicing customers in 7 countries from 12 central warehouses Electrical, heating, plumbing and ventilation components and solutions Aurora Group
Slide 17: Solar is listed on NASDAQ OMX Copenhagen
Solar is listed on NASDAQ OMX Copenhagen and has a majority of long term investors
Slide 18: Solar's mission
Solar's mission At Solar we understand our customers’ needs and provide integrated workflow solutions 18
Slide 19: Solar's business areas
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
Slide 20: 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
Slide 21: Integrated Workflow System (IWS)
With our Integrated Workflow System (IWS) we interact with customers Service concepts The IWS model is a mindset and Touch points communication tool. By using the model, we: Learn, listen and understand our customers’ needs, offer the best solutions to our customers and, work together with our
Slide 22: Solar Blue Energy
Solar Blue Energy - making energy efficiency a better business • A strategic focus area • A sales, marketing and training concept • One energy-efficient product is good – an intelligent solution is better • Focus on renovation projects through cases and cost-savings potential • Cooperation between s