Solar Group Presentation 27 November 2012, London roadshow Agenda - PDF document

Michael H. Jeppesen, Group CFO Solar Group Presentation 27 November 2012, London roadshow

Agenda 1 Group strategy #1 in Technical Wholesale 2013-2015 2 The results we achieved in Q3 2012 3 The results we expect in 2012 and 2013 4 Appendix – facts about Solar Group 2

Group strategy #1 in Technical Wholesale 2013-2015 We aim at creating operational excellence Our strategy will ensure that we as a group: Enterprises / functions Strengthen our position as one of Northern • Europe’s leading technical wholesalers within electrical, plumbing and ventilation products, programmes Profit more from our business model which • offers competitive logistics, product and Company service solutions, Day-to-day Benefit maximally from daily operations by • operations utilising our employees’ strong individual skills to create high-performance teams, Local Are seen by customers as their preferred • projects technical wholesaler, In time become one of the most profitable • enterprises within our industry. 3

Group strategy #1 in Technical Wholesale 2013-2015 Group company programmes Blue Energy Sales Excellence People Development Solar Way Local strategic projects 4

Group strategy #1 in Technical Wholesale 2013-2015 Strategic direction focuses on three areas Acumen It’s all about: Digitalisation � Standardisation � Simplification � Operations People 5

Group strategy #1 in Technical Wholesale 2013-2015 Go-to-market strategy New markets Solar’s business model Service offer Product Structure Market segmentation Go-to-market strategy offer Size Customer segmentation Operational objectives Characteristics Customer drivers KPIs Logistics offer 6

Group strategy #1 in Technical Wholesale 2013-2015 Short-term financial objectives Financial Financial ratios Period objectives Short-term financial objectives EBITA margin 2015 4.5% Prerequisites: Average growth � exceeding 3% for this period and ROIC excl. amortisation 2015 >14% stabilisation of the Dutch market in 2013. NWC/revenue LTM 2015 <13% Equity ratio 2013-2015 35-40% Long-term financial objectives EBITA margin of 5-6%. � Gearing (NIBD/EBITDA) 2013-2015 1.5-2.5x Prerequisites: Average growth exceeding 4%. Dividend yield (PAT) 2013-2015 35-45% 7

The actual figures and guidance Guidance 2012 and 2013 Q3 2012 8

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 9

Strong growth in Denmark due to solar panels The Dutch and German markets are decreasing Market update € million Revenue Org. growth Denmark 98.7 9.4% � In Denmark, we saw increased business opportunities within renewable energy Sweden 79.3 0.6% and energy efficiency. Norway 63.3 -2.7% The Netherlands 78.8 -13.0% � Our market position in Norway was Other 82.9 -5.6% improved again. Group 403.0 -1.6% � 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. 10

Gross profit margin 0.5% up compared to Q3 2011 Gross profit 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 � Gross profit in Solar Norge went up from 21.0% in Q2 2012 to 23.2%. � Fierce price competition in the Netherlands. � Denmark delivered according to plan. 11

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. 12

Normalised EBITA of € 31.7m in 9M 2012 EBITA margin 9M 2012 9M 2011 Revenue € m 1,245.2 1,071.6 Revenue growth % 16.2 6.8 Organic growth % 1.7 4.2 Gross profit € m 266.3 226.5 Gross profit margin 21.4 21.1 EBITA € m 25.0 20.0 EBITA margin 2.0 1.9 � Solar 8000 costs of € 5.7m in 9M 2012 and € 3.4m in 9M 2011. � Restructuring costs of € 1.0m. 13

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 enterprises in NL, BE, DE, AU Acquisition of operations from Otra 14

Cash flow from operating activities was € 3.9m in Q3 and € 13.2m in 9M Cash flow Cash flow, operating activities 15

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. 16

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. 17

Facts about Solar Group Appendix 18

Solar in short Solar is one of Northern Europe’s leading technical wholesalers Solar is one of Northern Europe’s leading technical wholesalers Listed on NASDAQ OMX Copenhagen * € 1,532m revenue – approx. 3,600 people Servicing customers in 9 countries from 11 central warehouses Electrical, heating, plumbing and ventilation components and solutions Aurora Group - accessories to consumer electronic goods in 4 countries (*2011 figures)

Solar is listed on NASDAQ OMX Copenhagen and has a majority of long term investors

Solar’s business areas are within: Electrical - HVAC&R - Plumbing - Renewable Energy Marine & Installation Cables Lighting Industry Offshore Heating, Water Renewable & Sanitation Ventilation Communication Security energy

Solar delivers products and solutions to customers within: Residential Industry Marine Utility Public Sector and and and Commercial Offshore Infrastructure Buildings

Solar Blue Energy - making energy efficiency a better business • A strategic focus area • A sales, marketing and training concept • One energy-efficient product is good – an intelligent solution is better • Focus on renovation projects through cases and cost-savings potential • Cooperation between strategic suppliers and Solar The 20-20-20 targets of the EU Climate and Energy Package are: • a 20% reduction in EU greenhouse gas emissions based on 1990 levels by 2020 • 20% of EU energy to come from renewable sources by 2020 • a 20% reduction in primary energy use through improved energy efficiency by 2020, compared with projected levels 23

Corporate social responsibility We take our responsibilities with regard to people and the environment seriously We have signed up for the United Nations’ Global Compact Programme, which contains ten principles, including human rights, working environment/labour, the environment and anti-corruption. We see our involvement in the programme as an asset in relation to customers and suppliers and a clear advantage in respect of attracting and maintaining employees. In addition, there is the need for and a desire to be seen as a company in which both Danish and foreign investors can safely invest – also from an ethical standpoint. Carbon Disclosure Project: Solar has established a reporting system for the company’s CO2 consumption. UN Global Compact – Communication of Progress: http://www.unglobalcompact.org/participant/10987-Solar-A-S 24

Corporate social responsibility Strong focus on ethics As a condition for entering into strategic partnerships with suppliers, Solar requires that such suppliers observe the Global Compact principles. We have implemented a Code of Conduct across the group. Under the code, Solar is committed to comply with current legislation and regulations and to act in an ethical, sustainable and socially responsible way in all its business activities. We value a broad and diverse workforce in terms of gender, age and nationality. Solar shows respect for all employees and is committed to ensuring a good working environment with room for diversity. 25