Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Investor Day (June 2009)
37 slides from Solar A/s Class B's investor day presentation, Jun 18, 2009
Slide 1: Capital Market Day
Capital Market Day Solar Norge AS 18 June 2009 1 1 18 June 2009
Slide 2: Solar Norge
Solar Norge Jan Willy Fjellvær 2 18 June 2009
Slide 3: Solar Norge
Solar Norge Hammerfest Kirkenes Tromsø Harstad Bodø Mo i Rana Trondheim Molde Key figures 2009 Ålesund Employees:: 357 Sogndal Branches: 26 Hamar Bergen Gardermoen Revenue in 2008: approx NOK 1.99bn Oslo Strømmen Bærum Haugesund Drammen Moss Kongsberg Central warehouse: Gardermoen, 21500 m2 Sandefjo
Slide 4: Solar Norge supplies products and solutions to customers within
Solar Norge supplies products and solutions to customers within Residential Industry Marine Utility Public Sector and and and Commercial Offshore Infrastructure Buildings 4 18 June 2009
Slide 5: Revenue 2004 - 2008
Revenue 2004 - 2008 NOK 1''900 1''700 1''500 1''300 1''100 ''900 2005 2006 2007 2008 ''700 1’’000 1’’300 1’’750 1’’990 ''500 (Figures in NOK) 2004 2006 2008 5 18 June 2009
Slide 6: Solar Norge from 2000 - 2009
Solar Norge from 2000 - 2009 08.03.2000 2001 2002 2005 2006 2007 2008 Solar Fire New CW NOK 1,000,000,000 Industry Tele NOK 2,000,000,000 HR Offshore/Marine Utilities HQ CW 21,500m2 Lean Management 6 18 June 2009
Slide 7: What happened in Q2 2008
What happened in Q2 2008 • Growth • Margin • Costs • Development 7 18 June 2009
Slide 8: 10-year anniversary of the contractor chain Sikringen
10-year anniversary of the contractor chain Sikringen 8 18 June 2009
Slide 9: Norwegian economy
Norwegian economy 2009E 2010E BNP mainland -1.4 (-1.7) 1.7 Unemployment 4.2% 5.1% Gross investments mainland -12.4 -1.7 9 18 June 2009
Slide 10: Construction sector 2004-2011
Construction sector 2004-2011 Norwegian construction sector. Fixed 2008 prices in NOK billion Year New housing New commercial Renovation Renovation commercial All Change buildings housing buildings segments in % 2004 48.61 45.75 43.33 42.42 180.11 9% 2005 52.29 51.54 45.93 42.65 192.42 7% 2006 55.81
Slide 11: Forecast TOTAL MARKET
Forecast TOTAL MARKET Value of construction sector, NOK billion, fixed 2008 prices: 2008: NOK 220bn (-5% against 2007) 2009: NOK 187bn (-5% against 2008) 2010: NOK 187bn (0% against 2009) 2011: NOK 195bn (+4% against 2010) 11 18 June 2009
Slide 12: Norwegian wholesale market 2004 - 2008
Norwegian wholesale market 2004 - 2008 Year NOK billion 2004 6.9 2005 7.6 2006 8.5 2007 10.0 Wholesale market in 2008 – NOK 10.4bn Players: Solar Onninen Elektroskandia (Rexel) Otra (Sonepar) Bergård Amundsen Ahlsell 12 18 June 2009
Slide 13: Product distribution wholesale market Norway 2008
Product distribution wholesale market Norway 2008 Low voltage, heating, utilities; 26% Cable; 27% Light; 14% Installation; 33% 13 18 June 2009
Slide 14: Central warehouse
Central warehouse Service concept • Order until 18:00 pm with delivery before 7:00 am • 24-hour service all days of the week Objective • Service degree part 1 >97%, part 2 >99% • QA >99,8% 14 18 June 2009
Slide 15: Central warehouse
Central warehouse • 21,500m2 + expansion possibilities • 24,000 articles • Lifts with 30,000 locations • 6,000 pallet places • Cable system • 1.5 km conveyor system • 8-12,000 order lines a day 15 18 June 2009
Slide 16: Central warehouse approx. 21,500 m2
Central warehouse approx. 21,500 m2 16 18 June 2009
Slide 17: Strategic management in difficult times
Strategic management in difficult times Flemming H. Tomdrup 17 18 June 2009
Slide 18: Background and short status
Background and • The family short status • 'The entrepreneurs' • Many acquisitions and divestments of enterprises • Employees with long seniority along with 1/3 new colleagues • Close to customers • Solar's story of 90 years of 'constant' growth! From 2006 • New Group Management Solar Group HQ in Ko
Slide 19: Strategic management in good times
STRATEGIC MANAGEMENT IN GOOD TIMES 19 18 June 2009
Slide 20: Declining trends from 2007, financial crisis, recession
Declining trends from the beginning of 2007… Financial crisis from mid-2008… Profound recession from the end of 2008 … 20 18 June 2009
Slide 21: ...and in bad times
? …AND IN BAD TIMES ? 21 18 June 2009
Slide 22: A profound recession involves both threats and possibilities for Solar
A profound recession involves both threats and possibilities for Solar…… • In 2009 we expect substantial negative organic growth and low results to increase financial gearing and limit our freedom to act in the short term! • Further negative organic growth is expected in 2010 - but we will produce r
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Slide 27: We are even closer to our stakeholders!
We are even closer to our stakeholders! • Owners and their advisors – visibility and clarification of expectations! • Customers – strengthen customers' possibilities of carrying on business in times of crisis (the IWS concept) • Suppliers – no negative surprises for the financial suppliers and conso
Slide 28: Mobilise the Solar troops and get them dressed for work!
…… mobilise the Solar troops and get them dressed for work! 28 18 June 2009
Slide 29: Pattern of response from our employees of at least four phases
Pattern of response from our employees of at least four phases • Denial • Frustration • Reaction • Reality of the new daily work …… and the managers also have new roles! 29 18 June 2009
Slide 30: Denial – Solar will not be affected by this!
Denial – Solar will not be affected by this! 30 18 June 2009 30
Slide 31: Pattern of response from our employees of at least four phases
Pattern of response from our employees of at least four phases • Denial • Frustration • Reaction • Reality of the new daily work …… and the managers also have new roles! 31 18 June 2009
Slide 32: A distinct strategy helps to create purpose, commitment and drive in times of crisis
A distinct strategy helps to create purpose, commitment and drive in times of crisis Opting out – strengthens focus on the selections we do make! So we will focus on • Less strategic actions • Less specific financial objectives • Reduction of working capital and interest-bearing debt! We will increa
Slide 33: Demands on managers increase in times of crisis!
Demands on managers increase in times of crisis! From a role as coach to a more instructing manager. The style becomes more direct and Leadership the communication clearer. Often, the act of listening is enough to keep your closest employees motivated. Solar Values The values must be lived out – als
Slide 34: Building a nimble organisation...
Building a nimble organisation... Organisational level Employee level Line of sight Customer focus Obvious link between strategy and employee High degree of responsiveness to customer performance objectives. needs. Empowerment Management Decision-making is pushed as far down the Top management takes
Slide 35: Critical barriers to the nimble organisation
Critical barriers to the nimble organisation!!!! Organisational barriers Employee barriers Delegation Uncertainty Over-centralisation, slow and complex decision- Employees lack direction, purpose, obligations making and approval processes. and motivation. Decisions Exemption from responsibility Poor
Slide 36: ... and of course, everyone at Solar must contribute!
… and of course, everyone at Solar must contribute! 36 18 June 2009
Slide 37: Capital Market Day
Capital Market Day Solar Norge AS 18 June 2009 37 37 18 June 2009