Solar A/s Class B · OMXCOP:SOLAR_B

Solar A/s Class B — Non-Deal Roadshow (August 2014)

23 slides from Solar A/s Class B's roadshow presentation, Aug 27, 2014

  1. Slide 1: Solar Group Investor presentation

    Solar Group Investor presentation Michael H. Jeppesen, Group CFO 26-27 August 2014, Brussels, Paris, Geneva and Zurich roadshows

  2. Slide 2: Investor presentation - agenda

    Investor presentation - agenda 1 The results we achieved in Q2 2 The results we expect in FY 2014 3 CEO update 4 Appendix – facts about Solar 2

  3. Slide 3: Organic growth of -2.3% in Q2 when adjusted for working days

    Organic growth of -2.3% in Q2 when adjusted for working days Organic growth Q2 2014 Q2 2013 6% Revenue, € million 361.2 383.9 4% Revenue growth, % -5.9 -4.1 2% Organic growth, % -3.5 -4.7 0% -2% -4% -6% -8% -10% -12% Q1 Q2 Q3 Q4 FY 2013 2014 3

  4. Slide 4: Negative growth in most of our key markets

    Negative growth in most of our key markets Market update – key markets € million Q2 2014 Q2 2014 Revenue Org. growth  Adjusted for the number of working days and Denmark 83.2 -9.7% the sale of solar panels, growth amounted to Sweden 78.5 1.4% -4.1% in Denmark. Norway 63.2 -7.3%  In Sweden, we are

  5. Slide 5: Disappointing Danish market – historically weak

    Disappointing Danish market – historically weak The Danish market in 2014 and beyond • Historic low activity in new building activity Total residential new builds still on a very low level* Continued negative trend between started and completed number of square meters* • Dansk Byggeri will in thei

  6. Slide 6: Continued negative trend in gross profit margin

    Continued negative trend in gross profit margin Gross profit margin Q2 2014 Q2 2013 Revenue, € million 361.2 383.9 22% Revenue growth, % -5.9 -4.1 20% Organic growth, % -3.5 -4.7 18% Gross profit, € million 74.4 79.1 Gross profit margin 20.6 20.6 16% 14%  Gross profit margin impacted by: 12% - Unfa

  7. Slide 7: Compared to Q2 2013, EBITA was down € 4.4m at € -2.1m

    Compared to Q2 2013, EBITA was down € 4.4m at € -2.1m Normalised EBITA was € 0.4m in Q2 2014 EBITA margin Q2 2014 Q2 2013 0,8% 0.6% 0.0% -0.4% Revenue, € million 361.2 383.9 0,6% 0,4% 0.0% -1.0% 0,2% Revenue growth, % -5.9 -4.1 -0.6% 0,0% -0,2% Organic growth, % -3.5 -4.7 -0,4% 0.2% 0.0% -0,6% -0,8%

  8. Slide 8: Compared to H1 2013, EBITA was up € 2.4m at € 0.8m

    Compared to H1 2013, EBITA was up € 2.4m at € 0.8m Normalised EBITA was € 4.4m in H1 2014 vs € 3.6m in H1 2013 EBITA margin H1 2014 H1 2013 0,4% Revenue, € million 739.6 759.4 0,2% 0.2% 0.0% 0.1% 0.2% 0.4% 0,0% Revenue growth, % -2.6 -6.8 -0.4% -0,2% -0,4% -0.2% 0.3% Organic growth, % 0.2 -7.6 -0,6%

  9. Slide 9: Cash flow from operating activities was € -12.5m in Q2 2014

    Cash flow from operating activities was € -12.5m in Q2 2014 Cash flow Cash flow, operating activities € million € million 10 15 5 3.8 -12.5 6.7 -22.5 10 -26.3 0 5 -5 5.1 -2.8 -4.8 4.7 -1.7 -12.5 -10 -14.4 0 -15 -5 -20 -10 -25 -0.4 -30 -15 Q1 2014 Oper. act. Inv. act. Fin. act. Other Q2 2014 Net Depr

  10. Slide 10: Net working capital at 13.0% on average in Q2 2014

    Net working capital at 13.0% on average in Q2 2014 against 14.0% in Q2 2013 Net working capital average (NWC) Net interest-bearing debt (NIBD) € million No. of € million times 110 3,2 250 15% 100 3,0 90 2,8 230 14% 80 2,6 70 2,4 210 13% 60 2,2 50 2,0 190 12% 40 1,8 30 1,6 170 11% 20 1,4 10 1,2 150 1

  11. Slide 11: Guidance 2014: Revenue around € 1,500m and EBITA around € 23m

    Guidance 2014: Revenue around € 1,500m and EBITA around € 23m Revenue EBITA 2014 expectations: € million € million 1.750 50  Downgraded guidance due to 1.700 45 unfavourable effect of geographical mix 1.650 40 and change in customer and product mix. 1.600 35 1.550 30  Restructuring costs of approx

  12. Slide 12: CEO update: From five strategic focus areas to one focus and three priorities

    CEO update From five strategic focus areas to one focus and three priorities  Focus: Profitably grow our business • Before: Strengthen our position as one of Northern Europe’s leading technical wholesalers within electrical, heating, plumbing and ventilation products.  Now: Strengthen our position

  13. Slide 13: What the three priorities mean

    What the three priorities mean  Strengthen our position as a Northern European sourcing and services company • Strengthen focus on value creation beyond classic business model • Expand business and scope where synergies can be harvested  Improve performance by complexity reduction and operational

  14. Slide 14: Solar's situation in conclusion

    Solar’s situation in conclusion  Longer term market growth will be limited in most of our markets  Specifically for Denmark: Despite significant opportunity for a ‘green conversion’ of Danish building mass, neither public nor private priorities suggest this will happen…yet  Solar’s financial perf

  15. Slide 15: Appendix Facts about Solar

    Appendix Facts about Solar

  16. Slide 16: Solar – our new definition

    Solar – our new definition Who we are: Solar is a sourcing and services company. Where we are: Solar is a Northern European company present in 8 countries. Who we serve: Solar serves professionals in technical installation and within the industry sector. What we sell: Solar offers a wide range of pr

  17. Slide 17: Solar – our new definition

    Solar – our new definition What we do: • We bundle the spend of our customers to improve their sourcing. • We work with our customers to create the best offer and to proactively develop alternatives. • We work with our customers to optimise their productivity, to optimise transportation cost and to

  18. Slide 18: Solar Group at a glance

    Solar Group at a glance We draw on nearly 100 years of experience and knowhow 1919 1953 € 1,531.5m >58,000 Founded in 1919 Listed on the stock € 1,531.5m in revenue and More than 58,000 customer exchange since 1953 EBITA of € 21.7m in 2013 relationships in our markets 43.1% 166 and 11 215,000 3,300

  19. Slide 19: 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 19

  20. Slide 20: 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 Business Ace Operation People 20

  21. Slide 21: What we do to serve our customers

    What we do to serve our customers We offer multiple channels for sales and services Sales concepts o Solar Plus o Solar Light o Solar Industry Cables o Solar Blue Energy Customer channels o Webshop o Mobile o Direct sales Customer o Drive-ins o Competence centres o Direct online connection (EDI) Sol

  22. Slide 22: What we do to ensure optimal supply to our customers

    What we do to ensure optimal supply to our customers Our setup provides options that fit any customer need We offer a flexible distribution setup: o Day delivery o Night delivery Norway* o Delivery on worksite Faroe Islands** o Delivery at company address o Pick-up Sweden** We work, while you sleep:

  23. Slide 23: Solar is listed on NASDAQ OMX Copenhagen

    Solar is listed on NASDAQ OMX Copenhagen and has a majority of long term investors 23

Solar — Non-Deal Roadshow (August 2014) on 6ix