Solar Group Presentation Michael H. Jeppesen, Group CFO 9 January 2013, SEB Enskilda Nordic Seminar
Agenda 1 Solar s business areas 2 Our value drivers: Growth, EBITA margin and NWC 3 The results we expect in 2012 and 2013 4 Group strategy #1 in Technical Wholesale 2013-2015 5 Financial objectives 2
Solar s business areas are within: Electrical - HVAC&R - Plumbing - Renewable Energy Marine & Installation Cables Offshore Lighting Industry Communication Security Ventilation Heating, Water & Sanitation Renewable energy
Solar delivers products and solutions to customers within: Residential and Commercial Buildings Industry Marine and Offshore Utility and Infrastructure Public Sector
Organic growth of -0.1% in Q3 when adjusted for working days - revenue developed as expected Organic growth Q3 2012 Q3 2011 Revenue m 403.0 353.3 Revenue growth % 14.1 5.1 Organic growth % -1.6 3.2 5
Strong growth in Denmark due to solar panels The Dutch and German markets are decreasing Market update In Denmark, we saw increased business opportunities within renewable energy and energy efficiency. Our market position in Norway was improved again. Solar Nederland s results were negatively impacted by changes to the customer mix and pricing pressure in the much declining market. Overall, our Dutch enterprises held their market positions. million Revenue Org. growth Denmark 98.7 9.4% Sweden 79.3 0.6% Norway 63.3-2.7% The Netherlands 78.8-13.0% Other 82.9-5.6% Group 403.0-1.6% 6
Normalised EBITA of 13.9m in Q3 2012 EBITA margin Q3 2012 Q3 2011 Revenue m 403.0 353.3 Revenue growth % 14.1 5.1 Organic growth % -1.6 3.2 Gross profit m 87.0 74.4 Gross profit margin 21.6 21.1 EBITA m 12.8 12.9 EBITA margin 3.2 3.7 Solar 8000 costs of 1.1m in Q3 2012 and 1.3m in Q3 2011. 7
Gearing unchanged at 2.2 Adjusted for acquisitions in Sep 2011, NWC was 14.7% Net working capital (NWC) Net interest-bearing debt (NIBD) Acquisition of Vegro and Eltomont Acquisition of operations from Otra Acquisition of enterprises in NL, BE, DE, AU 8
Guidance 2012: Revenue 1,710m, EBITA 44m 2012 expectations: Expected Solar 8000 implementation costs of approx. 7m and restructuring costs of approx. 2m. We expect low growth. For the year, revenue expectations equal organic growth of approximately 1%. Net working capital at approx. 14% on average. 9
Guidance 2013: Revenue 1,720-1,770m, EBITA 42-51m 2013 expectations: Expected Solar 8000 implementation costs of approx. 4m and restructuring costs of approx. 2m. The lower expectation level equals a no-growth scenario, while the upper expectation level equals positive organic growth of some 3%. Net working capital below 14% on average. 10
Group strategy #1 in Technical Wholesale 2013-2015 We aim at creating operational excellence Enterprises / functions Our strategy will ensure that we as a group: Strengthen our position as one of Northern Europe s leading technical wholesalers within electrical, plumbing and ventilation products, Day-to-day operations Company programmes Local projects Profit more from our business model which offers competitive logistics, product and service solutions, Benefit maximally from daily operations by utilising our employees strong individual skills to create high-performance teams, Are seen by customers as their preferred technical wholesaler, In time become one of the most profitable enterprises within our industry. 11
Group strategy #1 in Technical Wholesale 2013-2015 Group company programmes Blue Energy Sales Excellence People Development Solar Way Local strategic projects 12
Group strategy #1 in Technical Wholesale 2013-2015 Strategic direction focuses on three areas Business Acumen It s all about: Digitalisation Standardisation Simplification Operations People 13
Group strategy #1 in Technical Wholesale 2013-2015 Short-term financial objectives Financial ratios Period Financial objectives EBITA margin 2015 4.5% ROIC excl. amortisation 2015 >14% NWC/revenue LTM 2015 <13% Equity ratio 2013-2015 35-40% Gearing (NIBD/EBITDA) 2013-2015 1.5-2.5x Dividend yield (PAT) 2013-2015 35-45% Short-term financial objectives Prerequisites: Average growth exceeding 3% for this period and stabilisation of the Dutch market in 2013. Long-term financial objectives EBITA margin of 5-6%. Prerequisites: Average growth exceeding 4%. 14