Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Non-Deal Roadshow (August 2010)
30 slides from Solar A/s Class B's roadshow presentation, August 2010
Slide 1: Solar Group roadshow to Paris, Zurich and Geneva
Solar Group roadshow to Paris, Zurich and Geneva Flemming H. Tomdrup, CEO & Michael H. Jeppesen, CFO August 2010
Slide 2: Agenda
Agenda - Solar in short - Refreshed strategy ‘#1 in Technical Wholesale’ - Highlights H1 2010 - The results we achieved in H1 2010 - The results we expect in 2010 - Questions & answers
Slide 3: Solar in short
Solar in short
Slide 4: Solar in short (2009 figures)
Solar in short (2009 figures) Solar is one of Northern Europe’s leading technical wholesalers Listed on NASDAQ OMX Copenhagen € 1,431 m revenue - 3,175 people 8 countries - 12 central warehouses - 156 Drive-Ins Electrical, heating, plumbing and ventilation components and solutions
Slide 5: Solar is listed on NASDAQ OMX Copenhagen and has a majority of long term investors
Solar is listed on NASDAQ OMX Copenhagen and has a majority of long term investors Distribution of share capital as at 30 June 2010 Distribution of votes as at 30 June 2010
Slide 6: Solar's mission
Solar's mission At Solar we understand our customers’ needs and provide integrated workflow solutions 6
Slide 7: Solar's business areas: Electrical, HVAC&R, Plumbing, Renewable Energy
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 8: 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 9: 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 10: 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 11: Refreshed strategy '#1 in Technical Wholesale'
Refreshed strategy ‘#1 in Technical Wholesale’
Slide 12: Solar Group Strategy 2010-2015 - financial objectives
Solar Group Strategy 2010-2015 - financial objectives • Growth: Organic growth excl. acquisitions 2010-2012 2013-2015 • Growth, EBITA margin and ROIC: Growth in revenue 0-3% 1.5-2.5 x GDP Targets are average / year for the period EBITA margin 4-5% 5.5-6.5% mentioned ROIC 12-14% 16-18% Equity ratio 3
Slide 13: Refreshed Group strategy 2010-2015 Company Programmes
Refreshed Group strategy 2010-2015 Company Programmes Growth Group Company Programmes • Technical wholesaler 2010-2012 • Climate & energy / Blue Energy • To reach the financial objectives, Solar • Utility & infrastructure is continuing with its Company • Facility management / maintenance, Programme
Slide 14: Highlights H1 2010
Highlights H1 2010
Slide 15: 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 16: The results we achieved in H1 2010
The results we achieved in H1 2010
Slide 17: 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 18: 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 19: Gross profit margin in H1 increased to 21.5% from 20.8%
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 20: 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 21: 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 22: Solar still managed to emerge profitable from H1 2010
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 23: 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 24: Continuous reduction in net working capital; minor increase in NIBD
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 25: 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 26: Net interest-bearing debt amounted to € 105.4m
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 27: The results we expect in 2010
The results we expect in 2010
Slide 28: 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 29: 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. 29
Slide 30: Questions and answers
Questions and answers