47 slides from Solar A/s Class B's shareholder meeting presentation, Mar 15, 2019
Slide 1: Solar A/S Annual General Meeting 15 March 2019
Solar A/S Annual General Meeting 15 March 2019
Slide 2: Agenda
Agenda 1. Election of chairman of the general meeting 2. The Board of Directors’ report 3. Approval of the annual report 4. Allocation of profits 5. Proposals of the Board of Directors 6. Proposed remuneration of the Board of Directors 7. Election of members to the Board of Directors 8. Election of
Slide 3: 100 year anniversary
The Board of Directors’ report 100 year anniversary On 17 May 2019 Solar turns 100. On the 17th of each month, an article is published on www.solar.eu and www.solar.dk, describing events in Solar’s history. 3
Slide 4: Jacob L. Jørgensen
The Board of Directors’ report 100 year anniversary Jacob L. Jørgensen • Born in Sønderborg in 1890 • Established a company in Kolding in 1912 • Sold the company and founded Solar on 17 May 1919 4
Slide 5: Public limited company in 1930 – General meeting in 1932
The Board of Directors’ report 100 year anniversary Public limited company in 1930 – General meeting in 1932 5
Slide 6: Jacob L. Jørgensen passes away in 1967
The Board of Directors’ report 100 year anniversary Jacob L. Jørgensen passes away in 1967 – new executive board consisting of Claes Ørssleff, Harald Jørgensen and Jørgen Borum. Solar develops into Denmark’s largest electrical wholesaler and exceeds one billion DKK in revenue in 1984. 6
Slide 7: Executive board changes from 1987
The Board of Directors’ report 100 year anniversary In 1987, Carsten Ørssleff, Knud-Erik Hansen and Thorkild Thage-Jørgensen take over the executive board responsibilities and Solar makes acquisitions and becomes an international wholesaler. Step down in 2006 but lay the foundation for Solar accompl
Slide 8: Family affiliations
The Board of Directors’ report 100 year anniversary Family affiliations Seat on the executive board from 1919-1997. Bought out a family branch in 2005. The Borum family is still in. Today, fourth generation sits on The Fund of 20th December, who in terms of votes is the majority shareholder in Solar
Slide 9: 2018 in general figures
The Board of Directors’ report 2018 in general figures Continuing activities, minus our activities in STI, Austria and Belgium 2018 2017 Revenue Revenue DKK million DKK million 11,098 11,061 Organic growth Organic growth (adj.) (adj.) 2.2% 7.0% EBITA EBITA DKK million DKK million 327 310 9
Slide 10: 2018 in general figures: core and related business
The Board of Directors’ report 2018 in general figures CORE BUSINESS RELATED BUSINESS 2018 2017 2018 2017 Revenue Revenue Revenue Revenue DKK million DKK million DKK million DKK million 10,538 10,649 560 412 Organic growth Organic growth Organic growth Organic growth (adj.) (adj.) (adj.) (adj.) 1.1%
Slide 11: Follow-up on 2018
The Board of Directors’ report Follow-up on 2018 Follow-up on 2018 Better than expected: • Operational excellence: Cost containment programme; within core business, total costs were reduced by DKK 45m. As expected: • Strategic suppliers and concept sales: Focus on strengthening each concept in order
Slide 12: Share price
The Board of Directors’ report Share price As many listed companies involved in construction, Solar saw a drop in the share price in 2018 despite core business delivering the best result since 2010 500 400 300 200 100 0 Solar B Since the end of 2018, the share price has slowly started to rise and is
Slide 13: Share price: possible reasons for the drop
The Board of Directors’ report Share price Possible reasons for the drop: • Tainted history since the financial crisis • General drop in construction-related shares in 2018 • Downward adjustment after Q3 due to Norway and Sweden Solar’s task is to perform and deliver results in order to get the shar
Slide 14: 2019 guidance
The Board of Directors’ report 2019 guidance CORE BUSINESS RELATED BUSINESS 2019E 2018 2019E 2018 Revenue Revenue Revenue Revenue DKK million DKK million DKK million DKK million 10,700 10,538 650 560 Organic growth Organic growth Organic growth Organic growth (adj.) (adj.) (adj.) (adj.) 1.5% 1.1% 15
Slide 15: 2019 guidance: continuing activities
The Board of Directors’ report 2019 guidance Continuing activities, minus our activities in STI 2019E 2018 Revenue Revenue DKK million DKK million 11,350 11,098 Organic growth Organic growth (adj.) (adj.) 2% 2.2% EBITA EBITA DKK million DKK million 365 327 15
Slide 16: Financial targets
The Board of Directors’ report Financial targets Recalculation of our 2020 financial targets due to implementation of IFRS 16, leasing – target for dividends is also changed 2020 financial targets Current Adjusted 2020 targets Profitable growth above Growth, core business Unchanged market level Orga
Slide 17: Nomination committee
The Board of Directors’ report Nomination committee The Board of Directors has decided to establish a nomination committee for proposing candidates to be elected to the board with participation of large shareholders. Corporate governance structure External Shareholders / Nomination committee audit g
Slide 18: Focus on Solar’s business
Focus on Solar’s business Jens Andersen, CEO
Slide 19: Financial targets and strategic focus areas
Solar’s strategic focus Financial targets and strategic focus areas To reach our financial 2020 targets, we have three strategic focus areas Financial ratios Financial 2020 targets* Our three strategic focus areas Growth, core business Profitable growth above market level Strategic suppliers: We pur
Slide 20: Strategic suppliers: concept development
Strategic suppliers Concept development In year 1 of the next 100 years, we have increased our concept offer in all markets by: • expanding the number of products and product categories within all concepts. • consolidating strategic suppliers across concepts and markets. • offering well-known and th
Slide 21: Concepts
Concepts Year 1 of the next 100 years With Solar’s concepts we create a durable competitive advantage Concept DNA A specific and competitive DNA has been defined for DNA each of our concepts, fitted to specific target groups and introduced on all of our key markets 21
Slide 22: Concepts Q4 2018
Concepts Q4 2018 We are starting to see clear results of our concept roll-out. Solar Netto is in index 137 across our four key markets . DENMARK NORWAY SWEDEN HOLLAND INDEX INDEX INDEX INDEX 124 139 199 132 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 22
Slide 23: Industry focus – development in the industry segment
Industry Year 1 of the next 100 years Industry focus – development in the industry segment The first 100 years Year 1 of the next 100 years • During the 70s, Solar develops its internal • Our Total Cost of Ownership (TCO) approach positions Solar as a technical competences and establishes an strong
Slide 24: Industry focus – expanding by more than 200,000 new products
Industry Year 1 of the next 100 years Industry focus – we expand by more than 200,000 new products To be expanded by more than 200,000 new products
Slide 25: Operational excellence – shared services
Operational excellence – shared services Year 1 of the next 100 years We have more than 100 employees at our Polish Shared Services Centre. They provide services within Master Data, Material Planning and technical support, etc. The first 100 years Year 1 of the next 100 years • The Master Data and M
Slide 26: Operational excellence – AutoStore
Operational excellence – AutoStore Year 1 of the next 100 years AutoStore - We are expanding our inventory capacity without adding more warehouse space. We increase our capacity without hiring more employees. The first 100 years Year 1 of the next 100 years 26
Slide 27: Solar is a true digital company
Digital leadership Solar is a true digital company We hold a strong position in terms of the digital transformation of the industry 9 million visits Website Mobile app 35,000+ followers The first 100 years 2 million orders • Digital frontrunner - e-commerce since Social media 1988. Webshop Year 1 of
Slide 28: Solar is also a green company
Sustainability Solar is also a green company Solar panel parking space was recently opened by the Danish Minister of Energy, Utilities and Climate The first 100 years • Frontrunner on energy-efficient solutions. Year 1 of the next 100 years • Unique solar panel parking space opened on 7 March 2019 b
Slide 29: Financial statement 2018
Financial statement 2018 Michael H. Jeppesen, CFO
Slide 30: The group’s 2018 results from continuing activities
Financial statement 2018 The group’s 2018 results from continuing activities EBITA increased to DKK 327m from 310m despite a flat revenue development Revenue EBITA EBT DKK million DKK million DKK million • 2018: 11,098 • 2018: 327 • 2018: 237 • 2017: 11,061 • 2017: 310 • 2017: 176 11,250 350 250 300
Slide 31: Income statement and revenue
Financial statement 2018 Income statement and revenue Adj. organic growth amounted to 2.2% in 2018, when MAG45 once again delivered strong growth Revenue 10% Adj. organic growth 2018 2017 8% Core business 1.1% 6.5% Related business 28.9% 22.0% 6% Solar Group 2.2% 7.0% 4% 2% • Core business; Negative
Slide 32: Income statement and EBITA
Financial statement 2018 Income statement and EBITA Our cost-containment programme contributed to a strengthened EBITA margin EBITA margin 4% 2018 2017 -0.5% 0.3% 0.0% 0.0% 2.9% 2.8% 3% 0.3% Revenue, DKK million 11,098 11,061 2% Revenue growth, % 0.3 6.4 Adj. organic growth, % 2.2 7.0 1% Gross profi
Slide 33: Cash flow
Financial statement 2018 Cash flow Cash flow affected by investments in digital improvements Cash flow Cash flow from operating activities DKK m DKK m 350 350 28 -97 224 -112 300 96 300 250 224 250 -24 39 200 182 200 -108 150 150 100 100 77 -11 -5 65 50 50 0 Net profit Depr. Tax & adj. Invent. Recei
Slide 34: Balance sheet
Financial statement 2018 Balance sheet The balance sheet total is basically unchanged. The proceeds from the divestment of Austrian and Belgian activities contributed to a reduced gearing. Balance sheet total Gearing and interest-bearing debt, net DKK bn. DKK bn. No. of times 6.0 0.8 1.6 5.0 0.6 1.2
Slide 35: Expectations 2019
Financial statement 2018 Expectations 2019 Revenue of DKK 11,350m and EBITA of DKK 365m. Planned EBITA improvements of DKK 48m. • For core business, we expect revenue of approx. DKK million Core Related Group DKK 10.7bn, corresponding to an organic growth of 2017 publ. 12.01.2018 309 -45 264 approx.
Slide 36: Distribution of profit
Financial statement 2018 Distribution of profit Paid out DKK 73m to the shareholders in 2018. Proposal to pay out DKK 102m as dividends in 2019. Dividends to Retained Dividends Share shareholders earnings per share buy-back DKK million DKK million DKK DKK million • 2018: 102 • 2018: 31 • 2018: 14.00
Slide 37: Proposals from the Board of Directors
Proposals from the Board of Directors Bo Holse, chairman of the general meeting
Slide 38: Extraordinary dividend
Proposals from the Board of Directors Extraordinary dividend Authorisation to distribute 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 pass a resolution to distribute extraordinary d
Slide 39: Acquisition of treasury shares
´Proposals from the Board of Directors Acquisition of treasury shares Authorisation to acquire treasury shares • The board of directors proposes that the company’s board of directors be authorised in the period until the next annual general meeting to allow the company to acquire treasury shares for
Slide 40: Reduction of the share capital
Proposals from the Board of Directors Reduction of the share capital Reduction of the share capital • The board of directors proposes a reduction of the company’s share capital by DKK 38,562,500, nominal value, by cancelling part of the company’s holding of treasury shares and consequently amending
Slide 41: Authorisation to carry through a capital increase
Proposals of the Board of Directors Authorisation to carry through a capital increase Authorisation to carry through a capital increase • The board of directors’ authorisation to carry through a capital increase expires on 1 April 2019; cf. articles 9.1 and 9.2 of the articles of association. As a r
Slide 42: Proposal for the board of directors’ remuneration in 2019
Proposals of the Board of Directors The Board of Directors’ remuneration Proposal for the board of directors’ remuneration in 2019 • The board of directors proposes that the members of the board of directors in 2019 receive unchanged remuneration of DKK 175,000. • The chairman of the board of direct
Slide 43: Election of members to the Board of Directors
Proposals of the Board of Directors Election of members to the Board of Directors The Fund of 20th December proposes new election of: Morten Chrone (born 1966) • MBA from Cranfield School of Management (2001) and Civil and Constructional Engineer from the Engineering College of Aarhus (1994). Has su
Slide 44: Election of members to the board of directors
Proposals of the Board of Directors Election of members to the board of directors The Fund of 20th December proposes re-election of the current board members elected by the general meeting: • Jens Peter Toft • Louise Knauer • Peter Bang • Jesper Dalsgaard • Jens Borum 44
Slide 45: Election of auditor
Proposals of the Board of Directors Election of auditor The board of directors proposes re-election of auditor • The board of directors proposes re-election of PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab in accordance with the recommendation of the audit committee. • The audit co
Slide 46: Authorisation to the chairman of the meeting
Proposals of the Board of Directors Authorisation to the chairman of the meeting Authorisation to the chairman of the meeting • The board of directors proposes that the chairperson of the general meeting (with a right of substitution) be authorised to file and register the adopted resolutions with t
Slide 47: Any other business
Any other business Any other business 47