Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Shareholder Meeting (March 2015)
43 slides from Solar A/s Class B's shareholder meeting presentation, Mar 27, 2015
Slide 1: Annual General Meeting 2015
2015 Annual General Meeting Jens Borum, Chairman of the Board of Directors Anders Wilhjelm, CEO Michael H. Jeppesen, CFO 27 March 2015 Solar A/S, Vejen
Slide 2: Agenda
Agenda 1 Report of the Board of Directors 2 Presentation of annual report for adoption Resolution concerning covering of loss as per the adopted 3 annual report 4 Proposal of the Board of Directors 5 Proposed remuneration of the Board of Directors 6 Election of members to the Board of Directors 7 El
Slide 3: Report of the Board of Directors
Report of the Board of Directors Jens Borum, Chairman of the Board of Directors
Slide 4: 2014 in general figures
2014 in general figures DKK million 2014 2013 Revenue 10,252 10,463 EBITA 117 225 Effect from divestment of 3 -11 Aurora Group Restructuring costs 86 38 Solar 8000 costs 13 27 Write-downs at fair value 31 - Normalised EBITA 250 279 4
Slide 5: Unsatisfactory financial result in 2014
Unsatisfactory financial result in 2014 • Unsatisfactory financial result in 2014 – among other things due to weak market development in Denmark and the Netherlands • The result is affected by high non-recurring costs for restructurings and write- downs • Huge changes in the Netherlands in order to
Slide 6: New CEO – new identity: Solar – a sourcing and services company
New CEO – new identity: Solar – a sourcing and services company • Analysis with a fresh pair of eyes • Changes in Solar Management Team • Today, we define ourselves as a sourcing and services company where focus is on the customers’ needs and behaviour instead of the traditional wholesaler’s very st
Slide 7: Divestment of our German activities
Divestment of our German activities Solar Deutschland • Divestment of German activities • Our German business has been loss-making for several years • In-depth analysis during 2014 • Different strategic alternatives have been analysed, including divestment • Proposal from Sonepar comprised a reasona
Slide 8: Integration and optimisation in the Netherlands and Belgium
Integration and optimisation in the Netherlands and Belgium Integration and optimisation • Integration of Conelgro, the Netherlands, and Claessen, Belgium, into Solar Nederland in order to consider the customers of Conelgro and Claessen and to give them full access to all of Solar’s products and ser
Slide 9: Other important initiatives
Other important initiatives • With the SAP implementation in Solar Sverige in June 2014, we have now completed the SAP project and can utilise the mutual IT platform on our main markets • Relocation of the headquarters from Kolding to Vejen 9
Slide 10: Dividends
Dividends • Dividends of DKK 7.00 per share • Keep opportunities open for acquisitions for business development and business expansion • Authorisation to payment of extraordinary dividend and purchase of own shares is a standard authorisation in order to avoid having to invite for an extraordinary a
Slide 11: Focus areas and guidance 2015
Focus areas and guidance 2015 Focus • Improved earnings - optimisation • Expansion of platform - acquisition • Sourcing and services company – a journey Guidance 2015 • Revenue DKK 10.0–10.3 billion • EBITA DKK 200-250 million 11
Slide 12: Change
Change Anders Wilhjelm, CEO
Slide 13: Acceleration of change
Acceleration of change
Slide 14: From
From
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…to
Slide 16: From
From INFORMATION
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…to
Slide 18: From
From YESTERDAY TRANSACTION
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…to
Slide 20: From
From
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…to
Slide 22: Solar's customer… is a consumer at work
Solar’s customer… is a consumer at work Requirements: • Transparency • Relevance • Convenience • Productivity/efficiency 22
Slide 23: Solar – a sourcing and services company
Solar – a sourcing and services company What does this mean? We work with our customers: o to bundle their spend and improve their sourcing. o to create the best offer and to proactively develop alternatives. o to optimise their productivity, to optimise transportation costs and to minimise required
Slide 24: Changes in Solar
Changes in Solar • Business transformation – a consequence • Cultural change – a requirement • Innovation – a pre-condition • Development and expansion – a necessity • Profitable growth – a simple strategy 24
Slide 25: Financial statements 2014
Financial statements 2014 Michael H. Jeppesen, CFO
Slide 26: Solar changed its presentation currency to DKK
Effective from presentation of the annual report, Solar changed its presentation currency to DKK Guidance 2014 incl. Solar Deutschland € million DKK million Revenue 1,500 11,188 EBITA 9 67 Normalised EBITA 27 201 26
Slide 27: EBITA incl. Solar Deutschland on level with expectations for 2014
EBITA incl. Solar Deutschland on level with expectations for 2014 Expectations 2014 DKK million incl. DE incl. DE Revenue 11.188 11.184 EBITA 67 67 Normalised EBITA 201 206 27
Slide 28: Divestment of Solar Deutschland announced as discontinuing activity
The divestment of Solar Deutschland in 2015 was announced as discontinuing activity in Annual Report 2014 • In February 2015, Solar signed an agreement with Sonepar on sale of the assets of Solar Deutschland GmbH • The sale was finally executed on 16 March 2015 • Solar Deutschland is, consequently,
Slide 29: Coherence with the published result
Coherence with the published result 2014 2014 2014 DKK million incl. DE DE excl. DE Revenue 11,184 932 10,252 EBITA 67 -50 117 Normalised EBITA 206 -44 250 29
Slide 30: The result of continuing activities was affected by change initiatives
The result of continuing activities was affected by change initiatives DKK million 2014 2013 Revenue 10,252 10,463 Gross profit 2,169 2,282 Costs -1,942 -1,975 EBITDA 227 307 Depreciations and write-downs -110 -82 EBITA 117 225 Amortisations -190 -65 EBIT -73 160 EBT, continuing activities -122 106
Slide 31: Total one-off costs and write-downs of DKK 268 million in 2014
Total one-off costs and write-downs of DKK 268 million in 2014 DKK million 2014 2013 EBITA 117 225 Effect of divestment of Aurora 3 -11 Restructuring costs 86 38 Solar 8000 13 27 Write-down on properties 31 - Normalised EBITA 250 279 Normalised EBITA margin 2.4 2.7 Write-down intangible assets 135 0
Slide 32: Normalised EBITA at DKK 250 million in 2014
Normalised EBITA at DKK 250 million in 2014 EBITA margin, continuing activities 2014 2013 3% 2.7% -0.6% Revenue, DKK million 10,252 10,463 0.2% 0.1% 0.0% 2.4% 0.0% 2% Revenue growth, % -2.0 -5.9 1% Organic growth % 0.4 -5.4 Gross profit, DKK million 2,169 2,282 0% Norm. COGS EOC Staff Debt. Depr. No
Slide 33: Balance sheet total reduced by DKK 824 million over 4 years
Over 4 years the balance sheet total has been reduced by DKK 824 million and net interest-bearing debt by DKK 595 million Balance sheet total • The balance sheet total is reduced to DKK bn. 7,0 DKK 4.6bn from DKK 5.0bn in 2013 6,0 5.4 5.7 • Equity ratio of 38% remains within the 5.0 5,0 4.6 Group ta
Slide 34: Cash flow from operating activities provided DKK 187 million in 2014
Cash flow from operating activities, continuing activities provided DKK 187 million in 2014 Cash flow Cash flow from operating activities DKK million DKK million 450 250 106 -75 187 -58 200 41 187 400 -5 -151 150 350 300 100 300 50 250 226 -180 -30 0 200 -7 167 -50 150 -100 100 -150 50 -200 0 -250 2
Slide 35: Distribution of net profit
Distribution of net profit 2014 2013 Dividends to shareholders DKK million 55 94 Retained earnings, DKK million -289 -73 Dividends per share DKK 7.00 12.00 35
Slide 36: Proposal of the Board of Directors
Proposal of the Board of Directors Niels Bo Andersen, chairman
Slide 37: 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 potentially distribute extraordinary dividends of up to DKK 15.00 per share for the period until the next annual general meeting 37
Slide 38: Authority to acquire treasury shares
Authority to acquire treasury shares • Furthermore, the Board of Directors proposes that it be granted the authority to potentially 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
Slide 39: Alterations to the Articles of Association
Alterations to the Articles of Association • The Board of Directors proposes: • that the present provision in section 1.2 of the Articles of Association regarding registered office is taken out • that section 10.1, schedule 1, on agenda for the ordinary annual general meeting regarding annual report
Slide 40: 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 2015 amounts to DKK 175,000. 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 Audit Com
Slide 41: Election of members to the Board of Directors
Proposal of the Fund of 20th December Election of members to the Board of Directors Re-election of • Jens Borum • Niels Borum • Ulf Gundemark • Agnete Raaschou-Nielsen • Jens Peter Toft • Steen Weirsøe 41
Slide 42: Election of auditor
Election of auditor The Board of Directors proposes re-election of • PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 42
Slide 43: Any other business
Any other business 43