Solar A/S Class B · OMXCOP:SOLAR_B
Solar A/S Class B — Q2 2014 Earnings Presentation
15 slides from Solar A/S Class B's earnings presentation, Aug 20, 2014
Slide 1: Q2 2014 Quarterly Report
Q2 2014 Quarterly Report Anders Wilhjelm, CEO Michael H. Jeppesen, Group CFO 20 August 2014, NASDAQ OMX Copenhagen
Slide 2: Agenda
Agenda 1 The results we achieved in Q2 2 The results we expect in FY 2014 3 CEO update 4 Q&A 2 Webcast Q2 2014, Copenhagen, 20 August 2014
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 Webcast Q2 2014, Copenhagen, 20 August 2014
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
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
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
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%
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%
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
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
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
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
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
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
Slide 15: Questions & answers
Questions & answers Q&A 15 Webcast Q2 2014, Copenhagen, 20 August 2014