Solar A/s Class B · OMXCOP:SOLAR_B
Solar A/s Class B — Shareholder Meeting (March 2021)
36 slides from Solar A/s Class B's shareholder meeting presentation, Mar 19, 2021
Slide 1: Solar A/S Annual General Meeting
Solar A/S Annual General Meeting 19 March 2021
Slide 2: Agenda
AGENDA 1. Election of chair of the meeting 2. The Board of Directors’ report 3. Approval of the Annual Report 4. Allocation of profits 5. Proposals from the Board of Directors 6. Approval of Remuneration Report 7. Proposal for the Board of Directors’ remuneration 8. Election of members to the Board
Slide 3: The Board of Directors' report
The Board of Directors’ report JENS BORUM, CHAIRMAN OF THE BOARD 3
Slide 4: Strong EBITA performance – EBITA margin increased to 4.0%
The Board of Directors’ report Strong EBITA performance – EBITA margin increased to 4.0% 2020 2019 Revenue DKK million 11,465 Revenue DKK million 11,679 EBITA DKK million 455 EBITA DKK million 360 EBITA Margin 4.0 EBITA Margin 3.1 4
Slide 5: From 2017-2020, EBITA from core business increased by DKK 147m
THE BOARD OF DIRECTORS’ REPORT FROM 2017-2020, EBITA FROM CORE BUSINESS INCREASED BY DKK 147M CORE BUSINESS, EBITA 2017-2020 CORE BUSINESS, EBITA margin 2017-2020 DKK million DKK million 309 348 379 456 500 4,5% 4,2% 450 4,0% 3,4% 400 3,5% 3,3% 350 3,0% 2,7% 300 2,5% 250 2,0% 2017 2018 2019 2020 201
Slide 6: Follow-up on 2020
THE BOARD OF DIRECTORS’ REPORT FOLLOW-UP ON 2020 BIMobject sold Better than expected • Increase in concept sales • The shareholding in • Effect of Better Business initiatives BIMobject was sold for • Extraordinary price increases in Norway DKK 237m. • Solar acquired the shares • Reduced costs for DK
Slide 7: Return on shares of approx. 0%
THE BOARD OF DIRECTORS’ REPORT RETURN ON SHARES OF APPROX. 20% • In 2020, we distributed dividends of DKK 14.00 per Solar’s share price increased from 299 to 360 in 2020. share, corresponding to a total of DKK 102m. 500 • In 2020, Solar delivered a total return on shares incl. dividends of approx. 2
Slide 8: Focuses 2021
THE BOARD OF DIRECTORS’ REPORT FOCUSES 2021 Core+ Follow-up Investment • Increase concept sales • Project Better Business – • Expansion of warehouse Vejen • Climate & Energy - Green pruning of products business opportunities • Strict cost management • Increase industry sales • Digitalisation • Grow
Slide 9: EBITDA of DKK 650m in total and revenue of DKK 11,550m
THE BOARD OF DIRECTORS’ REPORT EBITDA OF DKK 650M IN TOTAL AND REVENUE OF DKK 11,550M EBITDA guidance of DKK 650m, corresponding to an EBITA guidance of DKK 465m DKK million • Revenue guidance of approx. DKK 11.55bn, 700 25 -25 corresponding to an organic growth of approx. 0%. 650 637 -20 33 650 617
Slide 10: Expansion of Warehouse Vejen
Expansion of Warehouse Vejen JENS ANDERSEN, CEO 10
Slide 11: Expansion of Warehouse Vejen
THE BOARD OF DIRECTORS’ REPORT EXPANSION OF WAREHOUSE VEJEN Overview of Warehouse Vejen The expansion includes • 3,500 new pallet spaces in the existing warehouse • 13,000 pallet spaces, which are controlled though a semi-automatic solution in a new high bay warehouse. • Handling of long goods in a
Slide 12: The future technology of Warehouse Vejen
THE BOARD OF DIRECTORS’ REPORT THE FUTURE TECHNOLOGY OF WAREHOUSE VEJEN AutoStore and the packaging machines 12
Slide 13: The beginning of a new strategy
The beginning of a new strategy JENS ANDERSEN, CEO 13
Slide 14: Solar's Strategy 2021-2023: Core+
SOLAR’S STRATEGY 2021-2023: CORE+ Four strategic areas Two megatrends 1. CONCEPTS DIGITAL Grow Concept share across all customer segments CORE+ GREEN 2. CLIMATE & ENERGY Focus on Climate & Energy solutions in all segments 3. INDUSTRY Become the preferred supplier to four CORE selected Industry segme
Slide 15: The digital transformation and the green transition
THE DIGITAL TRANSFORMATION AND THE GREEN TRANSITION Efficient and data driven Ensuring a business operations responsible business Engaging and Providing climate & Productive digital energy solutions channels Contributing to a more Challenging the status quo sustainable world Digital and Green go han
Slide 16: Core+ Concepts
CORE+ CONCEPTS Our concepts embody our deepest insights into customer needs within Installation, Industry and Trade. Every segment in which we want to play a significant role is supported by a Solar concept. They power our sourcing as well as the service-led sales of products from strategic supplier
Slide 17: Core+ Climate & Energy
CORE+ CLIMATE & ENERGY Solar is already well-established within sales of sustainable solutions and we aim to grow substantially within the coming years. Especially within the field of heat pumps, EV charging, photovoltaic and energy storage and by training future contractors at Solar School. From Co
Slide 18: Core+ Industry
CORE+ INDUSTRY We know the industry segment. We have long served selected sub- segments with an industry-deep approach. Industry customers appreciate the breadth and depth of our product assortment as well as our strategic consultancy and integrated digital services, which leads to long-term contrac
Slide 19: Core+ Trade
CORE+ TRADE A large and growing customer segment, including DIY stores and e- tailers, no longer source their materials from traditional wholesalers. With our digital business model and broad and specialised assortments, particularly within energy efficiency and sustainability, we can attract these
Slide 20: Core+: Stronger execution of Better Business
CORE+ : STRONGER EXECUTION OF BETTER BUSINESS CONCEPTS CLIMATE & ENERGY INDUSTRY TRADE 25% 5% 30% 5% SHARE OF REVENUE CAGR FOR OUR STRATEGIC PERIOD SHARE OF REVENUE CAGR FOR OUR STRATEGIC PERIOD FINANCIAL & NON-FINANCIAL TARGETS ENVIRONMENT, SOCIAL & GOVERNANCE • Increase gender diversity at managem
Slide 21: Financial statements 2020
Financial statements 2020 MICHAEL H. JEPPESEN, CFO 21
Slide 22: EBITA increase. EBT affected by sale of BIMobject
FINANCIAL STATEMENTS 2020 EBITA INCREASE. EBT AFFECTED BY SALE OF BIMOBJECT Revenue EBITA EBT DKK million DKK million DKK million 11.679 11.465 360 455 120 300 11.700 475 350 450 300 425 250 400 200 11.400 375 150 350 100 325 50 11.100 300 0 2019 2020 2019 2020 2019 2020 22
Slide 23: More than 25% increase in EBITA corresponding to DKK 95m
FINANCIAL STATEMENTS 2020 MORE THAN 25% INCREASE IN EBITA CORRESPONDING TO DKK 95M EBITA margin increased to 4.0% EBITA margin development Solar Group 2020 2019 • Negative organic growth due to 5,0% pruning of revenue with a low gross 4,5% 0,3% -0,2% Revenue, DKK million 11,465 11,679 0,9% 0,0% -0,1
Slide 24: Special circumstances affecting the financial statements
FINANCIAL STATEMENTS 2020 SPECIAL CIRCUMSTANCES AFFECTING THE FINANCIAL STATEMENTS The sale of Solar’s shares in Earnings before tax (EBT) EBT adjusted for special items BIMobject affected by special items increased by DKK 104 million • In Q4, Solar sold its shareholding in • EBT was affected by spe
Slide 25: Balance sheet reduced e.g. due to cash flows from operating activities
FINANCIAL STATEMENTS 2020 BALANCE SHEET REDUCED E.G. DUE TO CASH FLOWS FROM OPER. ACT. Balance sheet total reduced by Balance sheet total and gearing Gearing reduced by 1.5 times DKK 383m reduced EBITDA DKK billion • The balance sheet total amounted to NIBD DKK million Gearing, no. of times 6,0 DKK
Slide 26: Allocation of profits. Proposed dividend of DKK 204m
FINANCIAL STATEMENTS 2020 ALLOCATION OF PROFITS. PROPOSED DIVIDEND OF DKK 204M Dividend Retained earnings Dividend per share DKK million DKK million DKK 102 102 204 31 -38 18 14 14 28 250 40 30 25 200 20 20 150 0 15 100 -20 10 50 -40 5 0 -60 0 2018 2019 2020 2018 2019 2020 2018 2019 2020 26
Slide 27: Proposals from the Board of Directors
Proposals from the Board of Directors BO HOLSE, CHAIR OF THE MEETING 27
Slide 28: Authorisations to the Board of Directors
PROPOSALS FROM THE BOARD OF DIRECTORS AUTHORISATIONS TO THE BOARD OF DIRECTORS Extraordinary dividend • The Board of Directors proposes that the company’s Board of Directors be authorised in the period until the next annual general meeting to decide to distribute extraordinary dividend of up to DKK
Slide 29: Approval of Remuneration Report
APPROVAL OF REMUNERATION REPORT Approval of the company’s Remuneration Report 2020 • Indicative vote on the Remuneration Report regarding remuneration of the Board of Directors and the Executive Board in 2020. 29
Slide 30: Proposal for the Board of Directors' remuneration
PROPOSAL FOR THE BOARD OF DIRECTORS’ REMUNERATION Proposal for the Board of Directors’ remuneration • The Board of Directors proposes that the fee for members of the Board of Directors in 2021 be unchanged DKK 200,000. • The chairman of the Board of Directors will receive triple remuneration, and th
Slide 31: Election of members to the Board of Directors
ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS THE NOMINATION COMMITTEE PROPOSES New election of Michael Troensegaard Andersen (born 1961) • CEO of H+H International A/S since April 2011. Former senior executive positions at Trelleborg AB, Alto (now part of Nilfisk), Incentive A/S and Lundbeck A/S. •
Slide 32: Re-election of the current members of the Board
ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS THE NOMINATION COMMITTEE PROPOSES re-election of the current members of the Board of Directors Morten Chrone Peter Bang Louise Knauer Jesper Dalsgaard Jens Borum 32
Slide 33: Election of auditor
ELECTION OF AUDITOR The Board of Directors proposes election of Deloitte, Statsautoriseret Revisionspartnerselskab as new auditor for the company in accordance with the recommendation from the audit committee. • Pursuant to article 18.1 of the Articles of Association a state-authorised public accoun
Slide 34: Authorisation to the chair of the meeting
PROPOSALS FROM THE BOARD OF DIRECTORS CHAIR OF THE MEETING Authorisation to the chair of the meeting • The Board of Directors proposes that the general meeting authorises the chair of the general meeting (with a right of substitution) to file and register the adopted resolutions with the Danish Busi
Slide 35: Any other business
ANY OTHER BUSINESS 35
Slide 36: Any other business: Board member resigns
ANY OTHER BUSINESS BOARD MEMBER RESIGNS Jens Peter Toft • 2009 – Member of the Board of Directors • 2012 – Member of the Audit Committee • 2014 – Chairman of the Audit Committee 36