Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Q1 2011 Earnings Presentation
14 slides from Solar A/s Class B's earnings presentation, May 18, 2011
Slide 1: Q1 2011 Quarterly Report
Q1 2011 QUARTERLY REPORT GROWTH IN KEY MARKETS EBITA DID NOT MEET EXPECTATIONS Flemming H. Tomdrup, Group CEO Michael H. Jeppesen, Group CFO Brøndby, Q1 2011 © 18 May SOLAR 2011 2011
Slide 2: Agenda
AGENDA • 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 2 Q1 2011 © SOLAR 2011
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: 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 4 Q1 2011 © SOLAR 2011
Slide 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 concept s • Increase e-business sh
Slide 12: 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 13: 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 14: 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