Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Q2 2010 Earnings Presentation
20 slides from Solar A/s Class B's earnings presentation, Aug 19, 2010
Slide 1: Quarterly report Q2 2010
Quarterly report Q2 2010 Revenue & earnings met expectations and gross margin developed positively Flemming H. Tomdrup, CEO, and Michael H. Jeppesen, CFO 19 August 2010
Slide 2: Agenda
Agenda - Highlights H1 2010 - The results we achieved in H1 2010 - The results we expect in 2010 - Questions & answers
Slide 3: Highlights H1 2010
Highlights H1 2010 • We believe we passed the lowest point during H1! • “#1 in Technical Wholesale” our revised strategy towards 2015 • Expansion of Solar Light activities in all markets decided • New financing model aimed mainly at public enterprises • Optimising sales, product and logistics proces
Slide 4: The results we achieved in H1 2010
The results we achieved in H1 2010
Slide 5: Revenue met expectations
Revenue met expectations Organic growth % 0.0 H1 2010 H1 2009 Revenue € m 667.5 717.8 -5.0 Revenue growth (7.0%) (2.8%) -10.0 Organic growth (9.9%) (12.3%) -15.0 During Q2, market conditions -20.0 Q1 Q2 Q3 Q4 FY improved in most markets, with 2009 2010 particularly revenue relating to industry being
Slide 6: Still very demanding business conditions in H1, but we believe we have passed the lowest point
Still very demanding business conditions in H1, but we believe we have passed the lowest point! H1 2010 • Key markets: DK, SE, NO, NL € million Revenue Organic growth New building construction – SE and NO doing better. DK and NL Solar Danmark A/S 159.2 (14.6%) still under pressure. Energy Solar Sver
Slide 7: Gross profit margin in H1 increased to 21.5% from 20.8% in H1 2009
Gross profit margin in H1 increased to 21.5% from 20.8% in H1 2009 Gross profit margin % 22.0 H1 2010 H1 2009 21.5 Revenue € m 667.5 717.8 21.0 Revenue growth (7.0%) (2.8%) 20.5 Organic growth (9.9%) (12.3%) 20.0 Gross profit € m 143.7 149.5 19.5 Gross profit margin 21.5% 20.8% 19.0 Q1 Q2 Q3 Q4 FY 2
Slide 8: Minor improvement in EBITA despite negative organic revenue growth
Minor improvement in EBITA despite negative organic revenue growth EBITA margin % 3.5 H1 2010 H1 2009 3.0 Revenue € m 667.5 717.8 2.5 2.0 Revenue growth (7.0%) (2.8%) 1.5 Organic growth (9.9%) (12.3%) 1.0 Gross profit € m 143.7 149.5 0.5 Gross profit margin 21.5% 20.8% 0.0 Q1 Q2 Q3 Q4 FY 2009 2010 E
Slide 9: EBITA margin of 2.3% met expectations
EBITA margin of 2.3% met expectations EBITA margin % 3.2 3.0 0.3 (0.1) H1 2010 H1 2009 (0.6) 2.8 Revenue € m 667.5 717.8 0.5 2.6 2.4 0.1 0.0 2.3 Revenue growth (7.0%) (2.8%) 2.2 2.1 2.0 Organic growth (9.9%) (12.3%) 1.8 Gross profit € m 143.7 149.5 1.6 1.4 Gross profit margin 21.5% 20.8% 1.2 H1 2009
Slide 10: Solar still managed to emerge profitable from H1 2010 despite continued negative growth
Solar still managed to emerge profitable from H1 2010 despite continued negative growth H1 2010 H1 2009 Revenue € m 667.5 717.8 • Low volume main driver for profitability at same level as H1 2009. Revenue growth (7.0%) (2.8%) • Gross margin performed well and Organic growth (9.9%) (12.3%) external o
Slide 11: Cash flow from operating activities contributed € 18.4m in H1 2010
Cash flow from operating activities contributed € 18.4m in H1 2010 Cash flow Cash flow from operating activities € million € million 60 25 18.4 (13.3) 6.9 (13.2) 50 20 11.1 18.4 40 (11.0) 15 9.3 (0.6) 31.5 30 (0.1) 25.5 10 20 4.9 10 5 0 0 31.12.2009 Operating Investing Financing Other 30.06.2010 Net
Slide 12: Continuous reduction in net working capital (NWC)
Continuous reduction in net working capital (NWC) Minor increase in net interest-bearing debt (NIBD) € million Net working capital % of revenue € million Net interest-bearing debt No. of times 280 3.5 X 350 23.0 260 Acquisiton of 3.3 X Vegro & Eltomont 240 3.1 X Acquisiton of 300 Vegro & Eltomont 21
Slide 13: Inventory reduced by € 6.5m in Q2
Inventory reduced by € 6.5m in Q2 Balance sheet € million 700 Cash € million Q2 2010 Q1 2010 600 Other receivables Intangible assets 62.5 58.4 500 Trade receivables PPE 177.4 179.1 400 Inventories Investments 1.6 1.6 300 200 Investments Fixed assets 241.5 239.1 Property, plant and equipement 100 Inv
Slide 14: Net interest-bearing debt amounted to € 105.4m against € 100.5m in Q1
Net interest-bearing debt amounted to € 105.4m against € 100.5m in Q1 Balance sheet € million 700 Cash € million Q2 2010 Q1 2010 600 Other receivables Other liabilities Equity 257.9 260.0 500 Trade receivables Interest-bearing Provisions 153.9 150.9 400 liabilities Interest-bearing Inventories liabi
Slide 15: The results we expect in 2010
The results we expect in 2010
Slide 16: Maintain guidance of revenue between € 1,360m and € 1,400m and EBITA between € 46m and € 53m
Maintain guidance of revenue between € 1,360m and € 1,400m and EBITA between € 46m and € 53m Increased earnings and cash flow through € million Revenue EBITA • Implementation of the refreshed strategy High guidance 1,400 53 “#1 in Technical Wholesale”. Low guidance 1,360 46 • Profit management. • Su
Slide 17: Bolt-on acquisition in accordance with our strategy
Bolt-on acquisition in accordance with our strategy In august, Solar entered into an asset deal agreement acquiring parts of the activities in Otra Danmark A/S. 17
Slide 18: Questions and answers
Questions and answers
Slide 19: Calendar 2010
Calendar 2010 • 12 November 2010 Quarterly report Q3 19
Slide 20: Quarterly report Q2 2010
Quarterly report Q2 2010 Revenue & earnings met expectations and gross margin developed positively Flemming H. Tomdrup, CEO, and Michael H. Jeppesen, CFO 19 August 2010