Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Non-Deal Roadshow (May 2011)
25 slides from Solar A/s Class B's roadshow presentation, May 2011
Slide 1: Roadshow to Brussels, Luxembourg and Frankfurt
SOLAR GROUP ROADSHOW TO BRUSSELS, LUXEMBOURG AND FRANKFURT Flemming H. Tomdrup, Group CEO Michael H. Jeppesen, Group CFO May 2011
Slide 2: Agenda
AGENDA Update on Solar’s value drivers Refreshed group strategy #1 in Technical Wholesale The results we achieved in Q1 2011 Elaboration of Solar Norge and Solar Deutschland Status on Solar 8000 (SAP) The results we expect in FY 2011 Update on possible acquisitions Appendix – facts about Solar 2
Slide 3: Update on Solar's value drivers
UPDATE ON SOLAR’S VALUE DRIVERS Organic growth in all key markets Objectives Actual Q1 2010-2012 Management agenda 2011 Organic growth* 0-3% 5.6% New growth initiatives being launched EBITA margin* 4-5% 1.7% Margin diluted by loss in Norway Net working capital 13-14% 16.1% Focus on increased invento
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 Q1 2011
POSITIVE ORGANIC GROWTH IN Q1 2011 Second quarter running Organic growth Q1 2011 Q1 2010 % 10 Revenue € m 359.8 329.3 5 Revenue growth 9.3% (11.8%) 0 Organic growth 5.6% (14.3%) -5 -10 -15 -20 Q1 Q2 Q3 Q4 FY 2010 2011 5
Slide 6: Positive organic growth in key markets
POSITIVE ORGANIC GROWTH IN KEY MARKETS Positive organic growth in Solar Nederland B.V. Q1 2011 € million Revenue Organic growth Growth in Denmark positively Solar Danmark A/S 91.7 15.6% impacted by acquisition in Q3 2010. Solar Sverige AB 75.0 4.0% Solar Norge AS 55.3 4.8% Still economic growth in S
Slide 7: Minor increase in gross profit in Q1
MINOR INCREASE IN GROSS PROFIT IN Q1 0.1 percentage point compared to Q1 2010 Gross profit margin Q1 2011 Q1 2010 % 22,0 Revenue € m 359.8 329.3 21,5 Revenue growth 9.3% (11.8%) 21,0 Organic growth 5.6% (14.3%) 20,5 Gross profit € m 78.5 71.3 20,0 Gross profit margin 21.8% 21.7% 19,5 Q1 Q2 Q3 Q4 FY
Slide 8: EBITA margin down by 0.1 percentage point
EBITA MARGIN DOWN BY 0.1 PERCENTAGE POINT Additional costs incurred in Norway to maintain service level EBITA margin % 2,0 0,0 0,1 0,0 (0.2) 1,9 Q1 2011 Q1 2010 1,8 1,8 0,0 1,7 0,0 1,7 Revenue € m 359.8 329.3 1,6 1,5 Revenue growth 9.3% (11.8%) 1,4 1,3 Organic growth 5.6% (14.3%) 1,2 1,1 Gross profi
Slide 9: Increase in net interest-bearing debt
INCREASE IN NET INTEREST-BEARING DEBT due to negative trend in NWC 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 Vegro and Eltomont 240 3,1 X 290 21 Acquisition of 220 2,9
Slide 10: Cash flow from operating activities
CASH FLOW FROM OPERATING ACTIVITIES contributed € -5.6m in Q1 Cash flow Cash flow from operating activities € million € million 40 8 6,0 (2.4) 35 32,0 (5.6) 6 0.1 30 4 (2.3) 25 (2.4) 0,1 21,8 2 0,3 20 0 15 -2 10 -4 (7.5) 5 -6 (2.1) (5.6) 0 -8 31.12.2010 Operating Investing Financing Other 31.03.2011
Slide 11: Solar Norge
SOLAR NORGE Strong focus on high service level towards customers despite challenges Initiatives launched: • Reduction of inventory in progress • Focus on restoring gross margin to previous level • Reduction of temporary staff use to normal level Estimated loss due to implementation of SAP amounts to
Slide 12: Solar Deutschland
SOLAR DEUTSCHLAND Strategy execution is a must-win battle Focus on execution of the strategy: • Accelerate organisational changes and increase efficiency • Build competence centres and transform branches into drive-ins • Increase sales of Solar Plus and Solar Light concepts • Increase e-business sha
Slide 13: Status on Solar 8000 (SAP)
STATUS ON SOLAR 8000 (SAP) Establishing a group SAP competence centre in Poland (Lodz) Total estimate of investment increase is raised from € 40m (first estimate in 2008 for phase one in 2009 - 2012) to € 55m (new estimate covering the period until end of roll-out in 2012). This estimated cost incre
Slide 14: Guidance for remainder of 2011 - EBITA down
GUIDANCE FOR REMAINDER OF 2011 - EBITA DOWN Revenue unchanged but EBITA reduced by € 14m Revenue € million EBITA € million 1800 80 Reduction in EBITA guidance mainly 1600 70 due to: 1400 60 1200 •Solar Norge 1000 50 40 •Solar Deutschland 800 30 600 •Increased Solar 8000 costs 400 20 200 10 0 0 2006
Slide 15: Update on possible acquisitions
UPDATE ON POSSIBLE ACQUISITIONS Solar continues negotiations for the acquisition of four wholesalers Solar A/S continues negotiations for the acquisition of all shares in the enterprises Conelgro B.V. in the Netherlands Claessen ELGB in Belgium GFI Gesellschaft für Installationstechnik mbH in German
Slide 16: Appendix - Facts about Solar
SOLAR GROUP APPENDIX – FACTS ABOUT SOLAR
Slide 17: 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 18: Solar is listed on NASDAQ OMX Copenhagen
Solar is listed on NASDAQ OMX Copenhagen and has a majority of long term investors
Slide 19: Solar's mission
Solar's mission At Solar we understand our customers’ needs and provide integrated workflow solutions 19
Slide 20: 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 21: Customer segments Solar delivers to
Solar delivers products and solutions to customers within: Residential Industry Marine Utility Public Sector and and and Commercial Offshore Infrastructure Buildings
Slide 22: 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 23: 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
Slide 24: Corporate social responsibility
CORPORATE SOCIAL RESPONSIBILITY Solar takes its responsibilities with regard to people and the environment seriously We have signed up for the United Nations’ Global Compact Programme, which contains ten principles, including human rights, working environment/labour, the environment and anti-corrupt
Slide 25: Corporate social responsibility: strong focus on ethics
CORPORATE SOCIAL RESPONSIBILITY Strong focus on ethics As a condition for entering into strategic partnerships with suppliers, Solar requires that such suppliers observe the Global Compact principles. We have implemented a Code of Conduct across the group. Under the code, Solar is committed to compl