Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Shareholder Meeting (April 2014)
37 slides from Solar A/s Class B's shareholder meeting presentation, Apr 11, 2014
Slide 1: Annual general meeting 2014
2014 Annual general meeting Jens Borum, Chairman of the Board of Directors Flemming H. Tomdrup, Group CEO Michael H. Jeppesen, Group CFO 11 April 2014, Solar A/S, Vejen
Slide 2: Agenda
Agenda 1 The Board of Directors’ report 2 Presentation of audited annual report for approval Resolution concerning allocation of profit as per the 3 adopted annual report 4 Proposals of the Board of Directors 5 Proposed remuneration of the Board of Directors 6 Election of members to the Board of Dir
Slide 3: Report of the Board of Directors
Report of the Board of Directors Jens Borum, Chairman of the Board of Directors
Slide 4: Once again a challenging year and unsatisfactory results
2013 Once again a challenging year and unsatisfactory results 4 Annual general meeting, Vejen, 11 April 2014
Slide 5: Difficult market conditions impacted revenue development
Difficult market conditions impacted revenue development € million 2013 2012 Change Revenue 1,531.5 100.0% 1,638.9 100.0% -107.4 -6.6% EBITA 21.7 1.4% 35.3 2.2% -13.6 -38.5% Earnings before tax 5.5 0.4% 21.0 1.3% -15.5 -73.8% Earnings after tax 3.0 0.2% 15.7 1.0% -12.7 -80.9% Organic growth -5.9% -0
Slide 6: From positive organic growth in Q1 2012 to negative organic growth in Q2 2012 – Q4 2013
From positive organic growth in Q1 2012 to negative organic growth in Q2 2012 – Q4 2013 Organic growth 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% -12% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 6 Annual general meeting, Vejen, 11 April 2014
Slide 7: Normalised EBITA constituted € 32.2m in 2013
Normalised EBITA constituted € 32.2m in 2013 when adjusted for profit from the sale of Aurora, write-down on property, and Solar 8000 and restructuring costs € million 2013 2012 Change Revenue 1,531.5 100.0% 1,638.9 100.0% -107.4 -6.6% EBITA 21.7 1.4% 35.3 2.2% -13.6 -38.5% Earnings before tax 5.5 0
Slide 8: Solar Nederland incl. Conelgro
Solar Nederland incl. Conelgro Difficult market conditions and restructuring impacted results Difficult market conditions 2013 2012 Restructuring impacted results Revenue, € million 327.2 366.1 negatively by € 4.8m. Organic growth -10.2% -11.1% New CED Martin Trampe joined us in May and took o
Slide 9: Solar Sverige
Solar Sverige Affected by Solar 8000 preparations Focus on strengthening gross profit 2013 2012 Revenue consequently below market Revenue, € million 323.7 332.0 development Organic growth -3.1% 1.7% Increased sales to small and medium- sized customers EBITA 2.7% 2.5% Costs of Solar 8000 prep
Slide 10: Solar Norge
Solar Norge Earnings were strengthened in 2013 Declining market growth over the year 2013 2012 Loss on single debtor of € 1.0m Revenue, € million 273.0 263.5 Earnings improvement Organic growth 8.1% 4.3% New contracts in 2013 that take full effect in 2014 EBITA 4.4% 3.4% Market growth expe
Slide 11: Solar Danmark
Solar Danmark Limited sales of Solar panels in 2013 impacted growth Solar panel sales very limited 2013 2012 Low construction activity Revenue, € million 365.7 411.5 Bankruptcies in contracting companies Organic growth -11.0% 10.7% led to postponement of projects Many resources dedicated to
Slide 12: Special focus areas in 2014
Special focus areas in 2014 Roll-out of Solar 8000 in Sweden Stabilisation of revenue and improvement of earnings in the Dutch enterprise General focus on improving gross profit in the group’s enterprises New CEO – a new pair of eyes and new analyses 12 Annual general meeting, Vejen, 11 April 2014
Slide 13: 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 implementation € million € million and restructuring costs of approx. 1.750 50 € 3m. 1.700 45 1.650 40 The lower expectation levels equal 1.600 35 negative growth of approximately 1.550 30
Slide 14: Solar Group Strategy 2013-15
Solar Group Strategy 2013-15 Flemming H. Tomdrup, Group CEO 14
Slide 15: Solar Group Strategy 2013-2015
Solar Group Strategy 2013-2015 Increasing profit is our number one priority Foundation Ambition Strategies Operations Values Values Glow, Glow, SmartFun SmartFun Focus Focus on on & & Courage Courage Northern Northern Europe Europe Daily Daily operations operations To To become become one one of of
Slide 16: Solar 8000: Roll-out of new business model / SAP
Solar 8000 Roll-out of new business model / SAP 16
Slide 17: Online ordering
Online ordering >43% share of Solar’s revenue Solar WebShop Solar Mobile app 6 million visits annually 45,000 downloads 17
Slide 18: Solar Blue Energy
Solar Blue Energy Energy optimisation for customers and end-users 18
Slide 19: Solar sales process
Solar sales process 6 steps that ensure customer focus A targeted approach where customers’ needs take centre stage Online employee training Customer 19
Slide 20: Solar Employer Branding
Solar Employer Branding Attract and retain employees 20
Slide 21: Solar's mission
Solar’s mission The strongest link in the value chain We understand our customers’ needs and supply Mission value-adding products and services. We call it – stronger together Stronger together Suppliers Solar Contractors End-users
Slide 22: Financial statements 2013
Financial statements 2013 Michael H. Jeppesen, Group CFO
Slide 23: Normalised EBITA at € 32.2m in 2013
Normalised EBITA at € 32.2m in 2013 EBITA margin 2013 2012 2,6% 0,1% -0.7% Revenue, € million 1,531.5 1,638.9 2,4% 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 Staff Debt. Depr
Slide 24: Continuous improvement of net working capital
Continuous improvement of net working capital Balance sheet € million 2013 2012 € million 800 Intangibles 70.2 80.7 Cash 700 Other recei. 600 Trade Property, plant & equipment 158.3 168.1 receivables 500 Investments 14.7 6.8 400 Inventories 300 Non-current assets 243.2 255.6 Fin. assets 200 Prop., p
Slide 25: Interest-bearing liabilities, net, was reduced
Interest-bearing liabilities, net, was reduced Balance sheet € million 2013 2012 € million 800 Equity 286.6 295.3 Cash 700 Other recei. 600 Trade Other liabilities Interest-bearing liabilities 86.1 131.5 receivables 500 Provisions Provisions 29.4 35.9 400 Inventories Interest- 300 bearing Other liab
Slide 26: Cash flow from operating activities contributed with € 35.1m in 2013
Cash flow from operating activities contributed with € 35.1m in 2013 Cash flows Cash flow from operating activities € million € million 80 60 35,1 1,6 -3..1 70 28,0 -13.9 50 60 40 50 35,1 40 36,5 30 23,7 -11.1 -2.7 -1.1 30,3 30 5,4 20 20 10 10 3,0 0 0 2012 Op. act. Inv. act. Fin. act. Disc. act. Sun
Slide 27: Distribution of net profit
Distribution of net profit 2013 2012 Dividends to shareholders, € million 12.6 7.0 Retained earnings, € million -9.6 8.7 Dividends per share DKK 12.00 6.65 27 Annual general meeting , Vejen, 11 April 2014
Slide 28: Proposals of the Board
Proposals of the Board Michael R. Skovgaard, chairman 28
Slide 29: Authority to distribute extraordinary dividends
Authority to distribute extraordinary dividends The Board of Directors proposes that it be granted the authority to make the decision to distribute extraordinary dividends of up to DKK 15.00 (€ 2.01) per share for the period until the next annual general meeting. 29 Annual general meeting , Vejen,
Slide 30: Authority to acquire treasury shares
Authority to acquire treasury shares Furthermore, the Board of Directors proposes that it be granted the authority to acquire treasury shares against payment for the period until the next annual general meeting. The Board of Directors proposes that it be given the authority to acquire treasury sha
Slide 31: Proposed remuneration of the Board of Directors
Proposed remuneration of the Board of Directors The Board of Directors proposes that the Board of Directors’ fee for 2014 remains unchanged at DKK 150.000. The chairman of the Board of Directors is paid three times this fee, while the vice chairman of the Board of Directors and the chairman of the
Slide 32: Election of members to the Board of Directors
Proposals of the Fund of 20th December Election of members to the Board of Directors The Fund of 20th December proposes new election of: Ulf Gundemark Engineer 1975 Chairman of the board of directors of Ripasso Energy AB and board member in Papyrus AB, Constructor Group AS, Lantmännen Ekonomisk Före
Slide 33: Election of members to the Board of Directors
Proposals of the Fund of 20th December Election of members to the Board of Directors Re-election of Jens Borum Niels Borum Agnete Raaschou-Nielsen Jens Peter Toft Steen Weirsøe 33 Annual general meeting , Vejen, 11 April 2014
Slide 34: Election of auditor
Election of auditor The Board of Directors proposes re-election of PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab. 34 Annual general meeting , Vejen, 11 April 2014
Slide 35: Any other business
Any other business Everything can be discussed – nothing decided 35 Annual general meeting , Vejen, 11 April 2014
Slide 36: Changes to the Board of Directors
Changes to the Board of Directors Incoming members • Ulrik Damgaard (employee-elected), Sales Manager, heating and plumbing • Ulf Gundemark (AGM-elected) Outgoing members • Peter Falkenham (AGM-elected) 2003 - 2014 • Preben Jessen (employee-elected) 2002 - 2014 36 Annual general meeting, Vejen, 11 A
Slide 37: Changes to the Executive Board
Changes to the Executive Board Outgoing CEO on 30 April 2014 • Flemming H. Tomdrup 2006-2014 Incoming CEO • Anders Wilhjelm (47 years old) Master of Forestry degree (1992) Carlsberg (1993-1995) MBA from MIT (1997) McKinsey & Company London (1997-1998) Danisco (1998-2008) Gea Process Engineering (200