Paris, Zurich and Geneva roadshow September 2016 Investor presentation by CFO Michael Jeppesen

Transcription

1 Paris, Zurich and Geneva roadshow September 2016 Investor presentation by CFO Michael Jeppesen

2 Investor presentation Contents Agenda 1. The results we achieved in Q Capital structure - new share buy-back programme 3. Outlook CEO update priorities and EBS acquisition 5. Appendix - facts about Solar 2

3 Quarterly Report Q The results we achieved in Q Organic growth amounted to 3.8%, but adjusted for number of working days, organic growth was -1.8% versus 10.1% in Q Organic growth, adjusted for number of working days 12% 10% 8% 6% Q Q Revenue, DKK million 2,811 2,674 Revenue growth, % Adj. organic growth, % % 2% 0% -2% -4% Q1 Q2 Q3 Q4 FY

4 Quarterly Report Q The results we achieved in Q Positive growth in Denmark and Norway could not offset negative growth in remaining markets Update on the installation segment: Continued low construction activity levels and adjusted organic growth at around -3%. In Solar Nederland, focus on more profitable products led to lower revenue. Growth would have been positive, if adjusted for this and the loss of customers due to Conelgro s integration. Underperformance in one region in Sweden led to a decline, which the other regions could not offset. Update on the industry segment: A slowdown was reflected in the industry sector. Adjusted organic growth at around 0%. If adjusted for the negative trend in the offshore market, industry sector growth would have been above 3%. DKK million Q Revenue Q Adj. org. growth Denmark % Sweden % Norway % Benelux % Other markets % Eliminations -16 Group 2, % 4

5 Quarterly Report Q The results we achieved in Q EBITA amounted to DKK 57m in Q up from DKK 48m in Q EBITA margin 3% Q Q Revenue, DKK million 2,811 2,674 2% 1% 1,8% 0,0% 0,0% -0,4% 0,5% 0,0% 0,1% 2,0% Revenue growth, % Adj. organic growth, % Gross profit, DKK million % Q COGS Oth. income EOC Staff Debt. Depr. Q Gross profit margin EBITA, DKK million EBITA margin

6 Quarterly Report Q The results we achieved in H EBITA amounted to DKK 109m in H and was on par with our expectations EBITA margin 3% H H Revenue, DKK million 5,467 5,319 2% 1% 2,0% -0,2% 0,0% -0,4% 0,3% 0,2% 0,1% 2,0% Revenue growth, % Adj. organic growth, % Gross profit, DKK million 1,134 1,110 0% Q COGS Oth. income EOC Staff Debt. Depr. Q Gross profit margin EBITA, DKK million EBITA margin

7 Quarterly Report Q The results we achieved in Q Cash flow at DKK -125m in Q2 impacted by dividend distribution of DKK 77m, share buy-back of DKK 14m and repayment of loan of DKK 46m Cash flow DKK million 350 Cash flow, operating activities DKK million Q12016 Oper. act. Inv. act. Fin. act. Other Q Net profit Depr. & amort. Tax & adj. Inv. Rec. Liab. Oper. act. 7

8 Quarterly Report Q The results we achieved in Q Continued improvement of net working capital and gearing below target Net working capital average (NWC) DKK million ,0% Net interest-bearing debt (NIBD) 900 DKK million No. of times1, ,5% ,0 0,8 0, ,0% 300 0,4 0, , ,5% ,2-0, Q115 Q215 Q315 Q415 Q116 Q216 NWC NWC/Revenue LTM 11,0% ,6 Q115 Q215 Q315 Q415 Q116 Q216 NIBD NIBD/EBITDA LTM 8

9 Capital structure Result of share buy-back programme completed on 30 August 2016 The result of Solar s share buy-back programme On 16 August 2016 Solar announced a share buy-back programme of up to DKK 150m, which gave all B shareholders an opportunity to sell their shares in Solar. The price range for the share buy-back was DKK per B share. The offer period expired on 30 August 2016 at 16:00 CET, and the acceptances submitted were assessed. On this basis, Solar s Board of Directors decided to buy back a total of 382,160 B shares at DKK per share of a nominal value of DKK 100, corresponding to a total purchase sum of DKK 150m. After completion of the share buy-back programme, Solar owns 622,315 treasury shares, corresponding to 7.86% of Solar's total share capital and 3.88% of votes, including 382,160 B shares that were purchased in this buy-back programme. 9

10 Quarterly Report Q Outlook 2016 Our outlook for 2016 remains unchanged Our outlook for 2016 remains unchanged compared to that mentioned in the quarterly report for Q The impact of the MAG45 acquisition on revenue is expected to be in the range of DKK 310m but limited on EBITA. The Euro Business School (EBS) acquisition does not change Solar s overall outlook. We expect neither market growth nor organic revenue growth in 2016, and we expect EBITA to remain at 2015 levels less the positive one-off of DKK 9m from a change in pension plans in the Netherlands that we saw in As previously announced, we plan to invest in our digital platforms to strengthen customer experience. This will have a negative impact on 2016 profitability, and our present outlook recognises this. 10

11 Quarterly Report Q CEO update Status on 2016 priorities Maintain focus on short-term strategy; profitable growth Strengthen digital front-end Strengthen industrial offer Continue transformational process (sourcing and services) Pursue growth opportunities inside and outside current business scope MAG45 growth plan 11

12 Quarterly Report Q CEO update Comments on EBS acquisition Business rationale Solar s value proposition states: We work with our customers to improve their employees skills and productivity Expanding our training activities - Solar School - is fully in line with our ambition to increase our service offering and broadening our client base Training is a service already being offered to our customers in most markets today, but approach and setup is not aligned and the full potential not exploited What EBS brings to the table A strong foundation for expanding Solar s activities in this area Management team Learning systems Proven business Client portfolio both within and outside Solar s existing business Structure EBS and Solar School will be combined and renamed Scandinavian Technology Institute, and driven as a cross-country business line 12

13 Appendix Facts about Solar

14 Our identity We strive to improve our customers business A leading European sourcing and services company mainly within: Electrical components Heating Plumbing Ventilation 14

15 Sourcing and services How we work We work with our customers to bundle their spend and improve their sourcing. to create the best offer and to proactively develop alternatives. to optimise their productivity, to optimise transportation cost and to minimise required inventory. to improve their employees skills and efficiency. 15

16 How we serve our customers Everything starts with the customer Customer channels Sales concepts Solar Services Webshop Mobile Direct online connection (EDI) Direct sales Drive-ins Competence centres Solar Plus Solar Light Solar Industry Cables Solar Blue Energy Sales services Ordering services Delivery and operational services Education and competence services 16

17 Solar Fastbox concept At work site within an hour With Solar Fastbox We make life easier for our customers Increase productivity Save time and transportation costs Solar Fastbox at customer work site within an hour 17

18 MAG45 s value proposition - TCO reduction Integrated supply is an integral approach to optimising the TCO of tail supply chain in the sourcing, logistics and processes areas Supplier management and consolidation Item cost reduction Technical engineering support Improve production uptime Increase item availability Reduction of inventory value Supporting process excellence Reduce process complexity Single point of contact (on-site) 18

19 Ownership Solar is listed on Nasdaq Copenhagen and has a majority of long term investors Distribution of share capital and votes as at 30 June 2016 in percent Holdings of 5% or more of share capital Share capital Votes The Fund of 20 December, Vejen, Denmark 15.6% 57.5% Nordea Funds Oy, Danish Branch, Copenhagen, Denmark 11.5% 5.7% Chr. Augustinus Fabrikker A/S, Copenhagen, Denmark 10.3% 5.1% RWC Asset Management LLP, London, England 9.5% 4.7% On 31 August 2016, Solar announced that after completion of a share buy-back programme, Solar owns 622,315 treasury shares, corresponding to 7.9% of Solar's total share capital and 3.9% of votes. 19