Solar A/S
LEI: 21380031XTLI9X5MTY92
Industrivej Vest 43, DK-6600 Vejen, Denmark
Tel. +45 79 30 00 00
CVR no. 15 90 84 16
www.solar.eu
IN Q2 SOLAR DELIVERED AN EBITDA
INCREASE OF 66%
In July, revenue and EBITDA guidance were revised upwards by DKK 350m and DKK
100m to DKK 12,100m and DKK 825m, respectively, see announcement no. 15.
CEO Jens Andersen says:
"We delivered our second upward guidance revision just six months into our
Core+ strategy period. All our four strategic focus areas are showing traction
across markets and have contributed significantly to the strong results.
We see strong performance within all our segments. We are particularly satisfied
with our Industry segment where OEM and MRO are picking up. At the same time,
our concept share of revenue has increased to a new all-time high of 22%. We
see strong performance in all our markets especially in Solar Nederland that
achieved a concept share increase of more than 2%-points.
We distributed extraordinary dividends of DKK 110m to our shareholders,
whereby the total dividend payment year to date was DKK 314m corresponding to
DKK 43 per share of DKK 100.
The impressive results could not have been achieved without the dedicated and
hard work by our employees, whom I want to thank – they are the foundation for
our success.”
Q2 key financial messages
• EBITDA margin up by 2.2%-points, almost 50% increase
• One-off price effects resulted in a positive impact of approx. DKK 30m of the gross
profit, corresponding to a gross profit margin improvement of approx. 1%-point
• 2021 guidance: Revenue of DKK 12,100m and EBITDA of DKK 825m
• Return on invested capital (ROIC) increased to 21% from 10%
Financial highlights (DKK million)
Q2 2021
Q2 2020
H1 2021
H1 2020
Revenue
3,098
2,745
6,102
5,790
EBITDA
211
127
415
269
Cash flow from operating activities
351
282
263
239
Financial ratios (%)
Organic growth adj. for number of working days
8.6
-1.6
3.8
0.0
EBITDA margin
6.8
4.6
6.8
4.6
Net working capital, end of period/revenue (LTM)
10.9
11.9
10.9
11.9
Gearing (NIBD/EBITDA), no. of times
0.4
1.5
0.4
1.5
Return on invested capital (ROIC)
21.0
10.2
21.0
10.2
12 August 2021
Announcement no. 16 2021
Solar A/S
LEI: 21380031XTLI9X5MTY92
Industrivej Vest 43, DK-6600 Vejen, Denmark
Tel. +45 79 30 00 00
CVR no. 15 90 84 16
www.solar.eu
12 August 2021
Announcement no. 16 2021
Audio webcast and teleconference today
The presentation of Quarterly Report Q2 2021 will be made in English on 12 August
2021 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be
available at www.solar.eu. Participation will be possible via a teleconference.
Teleconference call-in numbers:
DK: tel. +45 787 232 50
UK: tel. +44 333 300 9035
US: tel. +1 646 722 4956
Contacts
CEO Jens Andersen - tel. +45 79 30 02 01
CFO Michael H. Jeppesen - tel. +45 79 30 02 62
IR Director Dennis Callesen - tel. +45 29 92 18 11
FACTS ABOUT SOLAR
Solar is a leading European sourcing and services company mainly within electrical,
heating and plumbing, ventilation and climate and energy solutions. Our core business
centres on product sourcing, value-adding services and optimisation of our customers’
businesses.
We facilitate efficiency improvement and provide digital tools that turn our customers
into winners. We drive the green transition and provide best in class solutions to ensure
sustainable use of resources.
Solar Group is headquartered in Denmark, generated revenue of approx. DKK 11.5bn in
2020 and has approx. 2,900 employees. Solar is listed on Nasdaq Copenhagen and
operates under the short designation SOLAR B. For more information, please visit
www.solar.eu
.
Disclaimer
This announcement was published in Danish and English today via Nasdaq
Copenhagen. In the event of any inconsistency between the two versions, the Danish
version shall prevail.
CVR no. 15 90 84 16
Q2
2021
MANAGEMENT REVIEW
3 Financial highlights
4 Business update
10 Financial review
13 Guidance
14 Shareholder information
A DIGITAL COMPANY
>60%
e-business share
OUR MARKETS
Denmark, Norway,
Sweden, the Netherlands,
Poland & the Faroe Islands
OUR 20212023 STRATEGY IS ENTITLED CORE+
AND HAS FOUR STRATEGIC FOCUS AREAS
TRADE
CLIMATE
& ENERGY
INDUSTRY
CONTENTS
CONCEPTS
FINANCIAL STATEMENTS
16 Statement of comprehensive income
17 Balance sheet
18 Cash flow statement
19 Statement of changes in equity
21 Notes
26 Quarterly figures
29 Statement by the Executive Board and
the Board of Directors
SOLAR Q2 2021
2
MANAGEMENT’S REVIEW
Q2 FINANCIAL MESSAGES
• With 8.6% in organic growth, we realised stronger
growth rates than anticipated in all markets.
• Project Better Business and a strong ongoing
development in concept sales contributed to a
gross profit margin of 22.0%. The gross profit
margin increase attributes to all markets.
• One-o price eects resulted in a positive
impact of approx. DKK 30m of the gross
profit, corresponding to a gross profit margin
improvement of approx. 1 percentage point.
• Return on invested capital (ROIC) increased to 21%
from 10%.
Q2 H1 Year
Consolidated (DKK million)
2021
2020
2021 2020 2020
Revenue 3,098
2,745
6,102
5,790
11,465
Earnings before interest, tax, depreciation and amortisation (EBITDA)
211
127
415
269
637
Earnings before interest, tax and amortisation (EBITA) 166 81 323 178 455
Earnings before interest and tax (EBIT) 153 65 296 147 248
Earnings before tax (EBT) 156 153 279 198 300
Net profit for the year 148 141 248 171 222
Balance sheet total 4,954 5,002 4,954 5,002 4,607
Equity 1,661 1,614 1,661 1,614 1,696
Interest-bearing liabilities, net 329 845 329 845 128
Cash flow from operating activities 351 282 263 239 813
Net investments in property, plant and equipment -47 -4 -39 -17 -25
Employees
Number of employees (FTE), end of period 2,899
2,934
2,899
2,934
2,864
Average number of employees (FTEs) 2,889
3,024
2,889
3,024
2,935
Financial ratios (% unless otherwise stated)
Organic growth adjusted for number of working days 8.6
-1.6
3.8
0.0
-2.0
Gross profit margin 22.0 20.5 21.9 20.5 21.0
EBITDA margin 6.8 4.6 6.8 4.6 5.6
EBITA margin 5.4 3.0 5.3 3.1 4.0
Net working capital (end of period NWC)/revenue (LTM) 10.9 11.9 10.9 11.9 9.7
Gearing (net interest-bearing liabilities/EBITDA), no. of times 0.4 1.5 0.4 1.5 0.2
Return on equity (ROE) 18.2 13.6 18.2 13.6 13.5
Equity ratio 33.5
32.3
33.5
32.3
36.8
Share ratios (DKK)
Earnings per share outstanding (EPS) 20.27 19.32 33.97 23.43 30.42
In general, financial ratios are calculated in accordance with the Danish Finance Society’s ”Recommendations & Financial Ratios”.
FINANCIAL HIGHLIGHTS
SOLAR Q2 2021
3
MANAGEMENT’S REVIEW
CONCEPTS CLIMATE & ENERGY INDUSTRY TRADE
SHARE OF
REVENUE
CAGR FOR OUR
STRATEGIC PERIOD
SHARE OF CORE
REVENUE
CAGR FOR OUR
STRATEGIC PERIOD
25%
Core+ is the name of our strategy toward 2023. Our strategy focuses
on four strategic areas; Concepts, Climate & Energy, Industry and
Trade. The first six months of our strategy period have already
delivered Core+’s first positive results.
Our target is to increase our share of revenue
in Sweden, Norway and the Netherlands.
Ultimately, targetting a concept share of 25%
of revenue for the core business, up from 21%.
We aim to increase our Industry share of
revenue, particularly in Sweden and the Nether-
lands, which supports our ambition of an Industry
share of 30% of core revenue, up from 27%.
With a starting point of DKK 600m for 2020,
we are targetting a CAGR of 5% for
the strategic period.
Our ambition is to introduce Trade
to more of our markets and aim for a
CAGR of 5% over the coming three years with
a starting point of DKK 874m for 2020.
BUSINESS UPDATE STRATEGY
STRATEGIC PROGRESS
2023 TARGETS FOR OUR CORE+ FOCUS AREAS
5%
30%
5%
Increasing concept share across markets, with
Solar Nederland leading the way by delivering a
+2%-point share increase.
Big Data & Machine Learning taken to the next
level thereby increasing our sales opportunities
within Concepts.
New partnerships with strategic suppliers.
Transformation from black to green energy
solutions in Solar Danmark with strong two-digit
growth rate.
Establishment of a Marine/oshore
branch in Solar Nederland.
Increased level of activity for Solar Sverige with
strong two-digit growth rate, particularly driven
by MRO and OEM.
Establishment of trade organisation in
Solar Sverige and Solar Norge.
Onboarding new customers every month
in all markets.
OUR CURRENT ACHIEVEMENTS
SOLAR Q2 2021
4
MANAGEMENT’S REVIEW
BUSINESS UPDATE CONCEPTS
ADAPTING TO
MARKET CHANGES AND
CUSTOMER NEEDS
In each of the quarterly reports, we will examine
Core+’s strategic focus areas. While the Q1 report
focused on Industry, the Q3 report will focus on
Climate & Energy. This Q2 report focuses on
Concepts and Trade.
Customers, markets and the demands presented
to us are constantly changing. As a sourcing and
services company, we have to be ready to adapt
to shiing circumstances. Trade and concepts are
good examples of how we do this.
Based on our customers’ needs, Solar has devel-
oped seven concepts, each with a dierent DNA.
They embody five elements: price, quality, assort-
ment, availability and delivery. Installation and
Industry customers are the target group.
Although more than 22% of core revenue derives
from concepts, we aim for 25% by 2023. We par-
ticularly aim to increase our share of revenue in
Sweden, Norway and the Netherlands.
Solar Plus, our oldest and most important con-
cept, continues to develop. New concepts such as
Solar Tools, Heat and Cable, however, are growing
rapidly and are now starting to contribute quite
significantly to the overall concept share.
Combining our concepts with guidance from in-
house specialists underlines our expertise. It also
rearms our pledge: we are ready to assist with
the right products and oer guidance on how to
use them to the best advantage.
CORE
+
STRATEGY
SOLAR Q2 2021
5
MANAGEMENT’S REVIEW
BUSINESS UPDATE CONCEPTS
SEVEN BENEFICIAL CONCEPTS
FOR OUR CUSTOMERS
Solar Light oers solutions for lighting projects
and our experts are well experienced at providing
our customers with customised and sustainable
solutions. Their expertise combined with our
range of high-quality products lies at the heart
of Solar Light.
Solar Plus oers an assortment that covers up to
80% of the materials required on a daily basis by
Installation and Maintenance, Repair & Operations
(MRO). The products are always in stock, and can
be delivered right away, which contributes to our
customers’ eciency.
Solar Heat was developed in our Dutch market
and comprises a wide range of high-quality heat-
ing-related products. As a responsible sourcing
and services company, our focus is firmly on
sustainability and green energy. Our customers
know they can rely on us for product knowledge
and support.
Solar Tools covers tools and related products.
Our Smart Supply service is linked to this concept
in that our inventory solutions enable our cus-
tomers to find the right tools and articles more
easily.
Solar Cable involves collaborating with a number
of suppliers across Europe, which benefits our
customers. Solar oers more than 6,000 dierent
types of cables and wires and is one of the larg-
est suppliers of these items in Northern Europe.
We produce – and label - more than 1,200 cable
cuts daily so that our customers can handle and
install their specific orders more easily.
Solar Netto is our most price-eective oering.
In other words, a basic assortment where quality
meets standard requirements. Our customers are
guaranteed low prices and products that match
expectations.
Solar Project, which covers the full project
scope, aims to ensure that the purchasing
process is smooth and ecient and that planning
and assembly are seamless. The assortment is
also available as BIM objects*, which means that
customers can reduce the time spent on planning
and choice of materials.
* Building Information Modelling Object
SOLAR Q2 2021
6
MANAGEMENT’S REVIEW
BUSINESS UPDATE CONCEPTS
EL:CON, AARHUS, DENMARK
EL:CON is a Danish electrical
installation contractor founded
in Aarhus. The company has
more than 800 employees across
Denmark.
Our new inventory solution
is extremely eective. With
Solar’s help, we structured
our inventory to ensure that
we always have the right
products in stock, which
is a crucial time-saver
OPTIMISED INVENTORY
WITH SMART SUPPLY
AND SOLAR PLUS
A well-organised stockroom means that EL:CON,
a Danish electrical installation contractor, avoids having
to commit unnecessary resources. With Solar Smart
Supply, EL:CON’s stockroom has an inventory at their
disposal that is always stocked with the right products,
including those from Solar Plus.
When EL:CON in the town of Fredericia in Den-
mark, grew out of their premises, they built a
new, larger and upgraded unit on the same site.
For the new storage facility, they decided to in-
stall Solar Smart Supply, which has provided them
with a better overview and resulted in substantial
savings.
"Our new inventory solution is extremely
eective. With Solar’s help, we structured our
inventory to ensure that we always have the right
products in stock, which is a crucial time-saver,"
explains EL:CON’s unit manager.
Prior to the change, EL:CON wasted a great deal
of time in the stockroom searching for products
which turned out to be out of stock.
"Basically, we were wasting time on product
searches - time that we can now spend on serv-
ing our customers more eciently," explains the
unit manager.
AVAILABILITY MAKES SOLAR PLUS THE
OBVIOUS CHOICE
The new storage facility in Fredericia comprises
crates of various electrical installation products
labelled with the relevant data. A Solar employee
handles restocking, which means the business is
never short of key products and components.
"The Solar Smart Supply concept structures in-
ventory so that products are always in the correct
crates and assigned to the same place on the
rack. We assist in organising the storage facility,
ensure that the crates are correctly labelled, and
help with restocking," says Jesper Grøning Ander-
sen, Customer Logistics Manager at Solar.
Around half the products in the inventory are
from Solar Plus because they are always avail-
able and can be restocked immediately, Jesper
Grøning Andersen points out.
"An industrial customer may have an urgent need
for a certain product in the event of a break-
down, so it’s of critical importance that EL:CON
always has the required item in stock. Naturally,
Solar Plus’ competitive pricing is also an import-
ant factor.”
With a better overview, the EL:CON inventory
team no longer need to spend time ordering
items and restocking as this is now handled by
Solar. It also minimises inventory write-os as
fewer items are destroyed, lost, scratched, be-
come outdated or otherwise lose value.
SOLAR Q2 2021
7
MANAGEMENT’S REVIEW
BUSINESS UPDATE TRADE
UNDERSTANDING
CUSTOMER NEEDS
With increasing digitalisation and
demand for one-stop shopping,
we have established Trade
as a segment.
Trade is our most recent strategic area. It targets
customers who do not fit into the installation
and industry segments, typically DIY/retailers,
webshops and smaller independent B2B-custom-
ers. Unlike the majority of our customers, they
do not request visits from sales team or technical
support. However, they require a business partner
with a strong digital mindset.
We introduced Trade in 2018 with the intention
of providing this customer group with services
unavailable elsewhere.
Availability and a wide assortment are para-
mount. We oer a great webshop where cus-
tomers can gain a quick overview and receive
deliveries through our flexible logistics solutions,
sourcing all their products from Solar means that
customers can cut back on suppliers, deliveries
and administration, which saves time and money.
It is a win-win situation for our customers and for
Solar – and makes good business sense all round.
We have customised our storage facilitation,
inventory management and logistics solutions.
Together with a wide assortment, this has helped
us to position ourselves as the preferred partner
among many companies across various industries.
Trade is currently an active part of our proposi-
tion in Denmark and the Netherlands. Both Nor-
way and Sweden have spent the first six months
of 2021 developing the local organisation,
supported by the Danish trade organisation. The
organisation and structure are now in place in all
Solar markets, and the sales teams are onboard-
ing new customers every month.
SOLAR Q2 2021
8
MANAGEMENT’S REVIEW
BUSINESS UPDATE TRADE
EFFICIENT SUPPLIES
OF HEAT PUMPS TO
THE END USER
Bauhaus has selected Solar as their heat pump
partner. This means fast and ecient supplies of
the market’s leading heat pump brands.
Bauhaus’ stores and webshop contain heat pumps
and accessories from the likes of Panasonic, Haier,
etc. With overall responsibility for logistics, Solar
handles both the storage and delivery of heat
pumps and ships them directly to customers.
"Reliability of supply is a crucial factor for us.
What makes Solar dierent is the speed at which
they can deliver. In some cases – within the hour,”
explains Holger Jepsen, Head of Procurement at
Bauhaus.
He explains that Bauhaus has become aware of
a growing interest in heat pumps, which is why
they decided to expand the range. So far, there
are heat pump displays in five warehouses and
everything is available online.
"Solar focuses on sustainable solutions. It’s there-
fore obvious for us to oer green and energy-sav-
ing products. Our collaboration with Bauhaus also
includes charging stations for electric cars for
which there is a huge market,” explains Carsten
Antonisen, Senior Vice President, Solar.
A TECHNICALLY SKILLED LOGISTICS
PARTNER
According to Holger Jepsen, another benefit
is the technical support that Solar is able to
provide.
"We have an enormous number of products, and
it would be impossible for our sta to know every
detail about all of them. A technically skilled
partner who can oer support when specific
questions arise is important,” he explains.
As Bauhaus was quite specific about what it need-
ed from Solar in terms of logistics and branding,
a customised solution was required.
"It’s imperative that we provide the best cus-
tomer experience from start to finish. Solar has
adapted their set-up to meet our wishes and
requirements,” says Holger Jepsen from Bauhaus.
Reliability of supply is a
crucial factor for us. What
makes Solar dierent
is the speed at which
they can deliver. In some
cases – within the hour.
SOLAR Q2 2021
9
MANAGEMENT’S REVIEW
Q2 EBITDA exceeded expectations.
We delivered an EBITDA increase
of 66%. Core+ focus areas are
already paying o with substantial
gross profit margin improvements
combined with adjusted organic
growth of 8.6% as the main drivers
behind the DKK 84m EBITDA
increase.
Q2 2021
REVENUE
In Q2, adjusted organic growth at group level
amounted to 8.6% (-1.6%). All entities except
Solar Nederland saw positive adjusted organic
growth. Revenue increased to DKK 3.1bn (DKK
2.7bn).
Solar’s overall adjusted organic growth for
Installation amounted to around 4% driven by
Solar Danmark, Solar Norge and Solar Polska. Our
Core+ strategy continues to focus on the Better
Business project, which aims to supply the right
products to the right customers. Part of this
project involves product pruning of low-margin
business, which has caused negative growth for
Installation in Solar Nederland.
All entities saw positive growth in the Industry
segment, primarily within MRO and OEM. Overall,
organic growth within this segment amounted to
around 12%.
The trade segment also delivered two-digit
growth rates in Q2.
GROSS PROFIT
Gross profit margin increased to 22.0% (20.5%)
which, combined with revenue growth, resulted
in a gross profit increase of DKK 119m. One-o
price eects resulted in a positive impact of
approx. DKK 30m on gross profit, corresponding
to a gross profit margin improvement of approx.
1 percentage point.
In addition, we saw continuous positive develop-
ment in concept sales. This, together with the
Better Business project, is part of the Core+
strategy and focuses on increasing gross profit
margin.
EBITDA
EBITDA increased to DKK 211m (DKK 127m) and
exceeded our expectations.
The EBITDA margin increased to 6.8% (4.6%). We
succeeded in increasing EBITDA by DKK 84m due
to a combination of a high Q2 growth level, sub-
stantial improvements in the gross profit margin
and positive one-o price eects.
The results from the individual countries are
given on page 23.
IMPAIRMENT ON ASSOCIATES
Impairment on associates was DKK 0m (DKK
97m).
In Q2 2020, the market value of Solar’s
Q2 EBITDA INCREASED BY DKK 84M TO DKK 211M
EXCEEDING OUR EXPECTATIONS
(Figures in brackets are figures from the corresponding period in 2020)
Our comments on core and related business and
disclosures in the note, Segment information, should be
regarded as supplementary information. Information on
the following segments - Installation, Industry and Trade
- is included in the note, Segment information.
FINANCIAL REVIEW
GROSS PROFIT MARGIN
%
EBITDA
DKKm
=
22.0
211
Q2Q1 Q3 Q4
19.5
2021
20.0
20.5
21.0
21.5
22.0
2020
22.5
Q2Q1 Q3 Q4
0
2021
50
100
150
200
250
2020
SOLAR Q2 2021
10
MANAGEMENT’S REVIEW
EARNINGS BEFORE TAX
Earnings before tax were up at DKK 279m (DKK
198m) and when adjusted - as illustrated in the
table below - earnings before tax were up at DKK
279m (DKK 125m).
DKK million
H1
2021
H1
2020
FY
2020
Earnings before tax 279 198 300
Impact due to market value
changes in BIMobject:
Impairment on associates 0 -73 -104
Earnings before tax, adjusted
for impact from associates 279 125 196
Impairment loss,
other intangible assets 0 0 10
Impairment loss, goodwill
and customer lists 0 0 129
Adjusted earnings before tax 279 125 335
NET PROFIT
Net profit increased to DKK 248m (DKK 171m).
CASH FLOWS
Net working capital calculated as an average of
the previous four quarters amounted to 10.8%
(11.9%) of revenue. Net working capital at the
end of Q2 2021 was 10.9% (11.9%).
In H1, cash flow from operating activities totalled
DKK 263m (DKK 239m). Changes in inventories
and changes in non-interest-bearing liabilities had
a DKK 24m (DKK 85m) and a DKK 315m (DKK 17m)
impact on cash flow respectively, while changes
in receivables had an impact of DKK -433m (DKK
-91m). Cash flow from receivables was aected
shareholding in BIMobject increased to DKK
204m. Hence the reversal of a previously
performed write-down amounted to DKK 97m.
In Q4 2020, we divested our shareholding in
BIMobject for a total cash consideration of DKK
237m. The shares were acquired at DKK 172m in
H1 2017.
FINANCIALS
Net financials amounted to DKK 3m (DKK -6m).
Interest compensation related to a ruling from the
Danish Tax Authorities amounts to DKK 11m with
a positive impact on net financials in Q2 2021, see
section on income tax.
EARNINGS BEFORE TAX
Earnings before tax were up at DKK 156m (DKK
153m) and when adjusted, earnings before tax
total DKK 156m (DKK 56m), as illustrated below.
DKK million
Q2
2021
Q2
2020
Year
2020
Earnings before tax 156 153 300
Impact due to market value
changes in BIMobject:
Impairment on associates 0 -97 -104
Earnings before tax, adjusted
for impact from associates 156 56 196
Impairment loss,
other intangible assets 0 0 10
Impairment loss, goodwill
and customer lists 0 0 129
Adjusted earnings before tax 156 56 335
INCOME TAX
Income tax amounted to DKK -8m (DKK -12m).
In June, we received a ruling from the Danish
Tax Authorities approving a reduction in Danish
taxable income in 2012 with a tax loss of DKK 74m
related to divested activities. The tax value of the
loss amounts to approx. DKK 19m, see the 2020
Annual Report, note 19 for additional information.
NET PROFIT
Net profit came to DKK 148m (DKK 141m).
H1 2021
REVENUE
In H1, adjusted organic growth at group level
increased to 3.8% (0.0%) and revenue was up at
DKK 6.1bn (DKK 5.8bn).
Solar’s overall adjusted organic growth for In-
stallation amounted to around 2% while Industry
showed growth of around 6%. We saw positive
adjusted organic growth in all entities apart from
Solar Nederland.
GROSS PROFIT
Gross profit increased by DKK 154m with contin-
uous improvement in the gross profit margin,
which increased to 21.9% (20.5%) in H1 2021.
OTHER INCOME
Other income amounted to DKK 6m (DKK 10m)
including profit from the disposal of a property
in Denmark of DKK 3m and one-o compensation
of DKK 3m.
In Q1 2020, other income primarily included the
outcome of a settlement with the former share-
holder of MAG45, which amounted to DKK 7m.
EBITDA
EBITDA increased by DKK 146m to DKK 415m cor-
responding to an EBITDA margin of 6.8% (4.6%)
of revenue. All entities saw substantial improve-
ments in EBITDA, with Solar Danmark, Solar
Norge and Solar Nederland making a significant
contribution.
The results of the individual countries are shown
on pages 23-24.
IMPAIRMENT ON ASSOCIATES
Impairment on associates was DKK 0m (DKK
73m).
In H1 2020, the market value of Solar’s sharehold-
ing in BIMobject increased to DKK 204m. Hence
the reversal of a previously performed write-down
amounted to DKK 73m.
FINANCIALS
Net financials amounted to DKK -17m (DKK -14m)
negatively aected by DKK 14m due to the early
redemption of an interest swap. A similar, positive
amount is reported under other comprehensive
income.
Furthermore, net financials were positively aect-
ed by DKK 11m regarding interest compensation
related to a ruling by the Danish Tax Authorities,
see Q2 financials on this page.
Adjusted for these items, net financials total an
unchanged DKK -14m.
FINANCIAL REVIEW
SOLAR Q2 2021
11
MANAGEMENT’S REVIEW
NET INTERESTBEARING DEBT
DKKm
31 December 2020
Operating act.
-128
-67
-6
-314
-28
-49
-329
263
Leasing & misc.
CAPEX
30 June 2021
Other investm.
Dividends
Oth. fin. act.
200
100
0
-100
-200
-300
-400
by the increased growth level in Q2 2021. As at 30
June 2021, COVID-19 financial support packages
amounted to DKK 102m and aected cash flow
from non-interest-bearing debt positively.
Cash flow from investing activities totalled DKK
-73m (DKK -43m). The disposal of a property in
Denmark had a positive impact of DKK 18m while
DKK -35m related to investment in the expansion
and upgrade of our central warehouse in Den-
mark, c.f. page 9 in the 2020 Annual Report.
Cash flow from financing activities amounted
to DKK -342m (DKK -114m), mainly aected by
ordinary and extraordinary dividend distributions
totalling DKK 314m (DKK 102m).
Consequently, total cash flow totalled DKK -152m
(DKK 82m).
Net interest-bearing liabilities were down at DKK
329m (DKK 845m).
As at 30 June 2021, gearing was 0.4 (1.5) times
EBITDA. Calculated as an average, our gearing
was 0.5 (1.7) times EBITDA. Our gearing target is
1.5-3.0 times EBITDA.
As at 30 June 2021, Solar had undrawn credit facil-
ities of DKK 426m (DKK 469m).
INVESTED CAPITAL
Invested capital for the Solar Group totalled DKK
1,921m (DKK 2,178m). ROIC amounted to 21.0%
(10.2%). ROIC for core business amounted to
22.6% (12.3%).
Activities with a Solar equity interest of less than
50% and discontinued activities are not included
in the ROIC calculation. Invested capital only
includes operating assets and liabilities.
KEY RISKS AND MITIGATION
Like other international companies, Solar is af-
fected by both global trends and local conditions
in the markets where we operate.
The COVID-19 pandemic has impacted the entire
world and Solar is also aected by the challenges
this has brought about.
Solar has adopted a number of initiatives to limit
the risk of infection, safeguard the health of em-
ployees, preserve business continuity and protect
earnings.
Commercial and financial risks relating to our ac-
tivities are detailed in Solar’s 2020 Annual Report.
FINANCIAL REVIEW
RELATED BUSINESS
Revenue from related business amounts to
approx. 5% of our total revenue.
In Q2 2021, we continued to see positive
development. MAG45 saw adjusted organic
growth of 20.5% (-0.7%) and EBITDA of DKK
7m (DKK 3m). MAG45, therefore, delivered ad-
justed organic growth of 13.5% (-0.9%) and
EBITDA of DKK 13m (DKK 7m) for H1 2021.
Due to a reduced COVID-19 risk, we have
re-initiated the strategic review of MAG45.
Related business (MAG45 and Solar Polaris)
showed adjusted organic growth of 12.7%
(-0.7%) while EBITDA was up at DKK 13m
(DKK 7m) in H1 2021.
SOLAR Q2 2021
12
MANAGEMENT’S REVIEW
GUIDANCE FOR 2021 REVISED UPWARDS TO
REVENUE OF DKK 12.1BN AND EBITDA OF DKK 825M
On 9 July, Solar upgraded its
EBITDA guidance for 2021 by
DKK 100m to DKK 825m.
2021 revenue was revised
upwards to a total of DKK
12.1bn, up by DKK 0.35bn,
and corresponding to organic
growth of approx. 4%, see
announcement no. 15 2021.
MARKET OUTLOOK FOR SOLAR’S
SEGMENTS
Overall, we expect Installation, Industry, and
Trade to deliver growth in 2021 across all our
markets.
Installation
We expect the Installation market to continue
to show growth as compared to 2020, positively
aected by electrification, which is one of the
important megatrends.
Industry
The guidance is based on the assumption
that sales to OEM and MRO continue to grow
compared to 2020. Infrastructure is expected to
remain at least at current levels for the rest of
the year.
Trade
We expect growth in Special Sales, which is the
primary activity in the trade segment.
FINANCIAL OUTLOOK 2021
Revenue guidance
We expect revenue of DKK 12.1bn, correspond-
ing to organic growth of approx. 4%. The Better
Business project is an integral part of the Core+
strategy and is expected to reduce revenue by
DKK 200m compared to 2020. Adjusted for this,
we expect organic growth of approx. 6%.
EBITDA guidance
We expect EBITDA of DKK 825m to be achieved by
our strategic focus areas delivering continuous
improvement in earnings, combined with approx.
DKK 50m from positive one-o price eects.
Investments
As announced on 11 February 2021, we have
initiated an expansion and upgrade of our central
warehouse in Denmark, cf. page 9 in the 2020 An-
nual Report. The investment is expected to total
approx. DKK 250m and to be finalised in 2022.
GUIDANCE 2021
EBITDA
DKKm
* not adjusted for IFRS16 impact
** including one-o income of DKK 56m
2018*
2017*
2019
2020
Guidance 2021 Feb.
Guidance increase
Guidance 2021 April
650
637
538
379
362
100
900
850
800
750
700
650
600
550
500
450
400
350
300
75
725
Guidance 2021 July**
825
Guidance increase
=
SOLAR Q2 2021
13
MANAGEMENT’S REVIEW
SHARE AND WEBCAST
INFORMATION
Solar’s share capital is divided
into nominal value DKK 90 million
A shares and nominal value DKK
646 million B shares.
Holdings of 5%
or more of share capital
Share
capital
in %
Votes
in %
The Fund of 20th December,
Vejen, Denmark 17.0 60.5
Nordea Funds Ltd., Helsinki,
Finland 10.4 5.0
RWC asset management LLP,
London, England 10.0 4.7
Investeringsforeningen Nordea
Invest, Copenhagen, Denmark 5.0 2.4
DISTRIBUTION OF SHARE CAPITAL
AND VOTES IN % BASED ON THE
LATEST PUBLIC INFORMATION
FINANCIAL CALENDAR 2021
4 October - 4 November IR quiet period
4 November Quarterly Report Q3 2021
The A shares are not listed. The B shares are
listed on Nasdaq Copenhagen under the ID code
DK0010274844, and are designated SOLAR B. They
form part of the MidCap index and MidCap on
Nasdaq Nordic.
The share capital includes 900,000 A shares and
6,460,000 B shares. Solar’s portfolio of treasury
shares totals 56,813 B shares or 0.8% of share
capital.
A shares have 10 votes per share amount of DKK
100, while B shares have 1 vote per share amount
of DKK 100.
TOTAL SHAREHOLDER RETURN
The total shareholder return on the Solar B share
during the holding period 1 January 2021 - 30
June 2021 was DKK 228.00 (63%) as DKK 43.00 was
paid out in dividend and the increase in share
price amounted to DKK 185.00 in H1 2021.
AUDIO WEBCAST
The presentation of the Q2 2021 Quarterly Report
will be conducted in English on 12 August 2021 at
11:00 CET. The presentation will be transmitted as
an audio webcast and will be available at :
SHAREHOLDER INFORMATION
WWW.SOLAR.EU
SOLAR Q2 2021
14
MANAGEMENT’S REVIEW
Solar A/S
CVR no. 15 90 84 16
CONSOLIDATED
FINANCIAL
STATEMENTS
Q2 2021
15
STATEMENT OF COMPREHENSIVE INCOME
Income statement
Q2 H1 Year
DKK million 2021 2020 2021 2020 2020
Revenue 3,098 2,745 6,102 5,790 11,465
Cost of sales -2,417 -2,183 -4,763 -4,605 -9,060
Gross profit 681 562 1,339 1,185 2,405
Other operating income and costs 3 2 6 10 8
External operating costs -68 -61 -143 -153 -288
Sta costs -400 -372 -776 -763 -1,465
Loss on trade receivables -5 -4 -11 -10 -23
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
Depreciation and write-down on property,
plant and equipment
-45
-46
-92
-91
-182
Earnings before interest, tax and amortisation (EBITA) 166 81 323 178 455
Amortisation and impairment of intangible assets -13 -16 -27 -31 -207
Earnings before interest and tax (EBIT) 153 65 296 147 248
Share of net profit from associates 0 -3 0 -8 -12
Impairment and gain from divestment of associates 0 97 0 73 104
Financial income 14 6 22 15 24
Financial expenses -11 -12 -39 -29 -64
Earnings before tax (EBT) 156 153 279 198 300
Income tax -8 -12 -31 -27 -78
Net profit for the period 148 141 248 171 222
Earnings in DKK per share outstanding (EPS) 20.27 19.32 33.97 23.43 30.42
Diluted earnings in DKK per share outstanding (EPS-D) 20.22 19.31 33.90 23.42 30.38
Other comprehensive income
Q2 H1 Year
DKK million 2021 2020 2021 2020 2020
Net profit for the period 148 141 248 171 222
Other income and costs recognised:
Items that can be reclassified for the income statement
Foreign currency translation adjustments of foreign
subsidiaries
-1 33 11 -42 -22
Fair value adjustments of hedging instruments before tax 6 -2 23 -7 7
Tax on fair value adjustments of hedging instruments
-1 1 -5 2 -1
Other income and costs recognised aer tax 4 32 29 -47 -16
Total comprehensive income for the period
16
SOLAR Q2 2021 FINANCIAL STATEMENTS
30.06 31.12
DKK million 2021 2020 2020
ASSETS
Intangible assets 157 307 157
Property, plant and equipment 831 836 818
Right-of-use assets 317 292 288
Deferred tax asset 3 10 3
Investments in associates 5 215 2
Other non-current assets 72 75 71
Non-current assets 1,385 1,735 1,339
Inventories 1,513 1,551 1,531
Trade receivables 1,701 1,496 1,271
Income tax receivable 33 19 13
Other receivables 18 9 8
Prepayments 52 54 41
Cash at bank and in hand 252 138 404
Current assets 3,569 3,267 3,268
Total assets 4,954 5,002 4,607
30.06 31.12
DKK million 2021 2020 2020
EQUITY AND LIABILITIES
Share capital 736 736 736
Reserves -166 -226 -195
Retained earnings 1,091 1,104 951
Proposed dividends for the financial year 0 0 204
Equity 1,661 1,614 1,696
Interest-bearing liabilities 124 151 199
Lease liabilities 217 193 189
Provision for deferred tax 103 100 98
Other provisions 13 13 12
Non-current liabilities 457 457 498
Interest-bearing liabilities 135 539 41
Lease liabilities 105 100 103
Trade payables 1,934 1,664 1,693
Income tax payable 46 26 21
Other payables 607 590 544
Prepayments 4 5 2
Other provisions 5 7 9
Current liabilities 2,836 2,931 2,413
Liabilities 3,293 3,388 2,911
Total equity and liabilities 4,954 5,002 4,607
BALANCE SHEET
17
SOLAR Q2 2021 FINANCIAL STATEMENTS
CASH FLOW STATEMENT
Q2 H1 Year
DKK million 2021 2020 2021 2020 2020
Net profit or loss of continuing operations for the period 148 141 248 171 222
Depreciation, write-down and amortisation 58 62 119 122 389
Impairment and gain from divestment of associates 0 -97 0 -73 -104
Changes to provisions and other adjustments 3 -1 -2 -9 -3
Share of net profit from associates 0 3 0 8 12
Financials, net -3 6 17 14 40
Income tax 8 12 31 27 78
Financial income, received 2 1 3 3 7
Financial expenses, settled -9 -9 -33 -18 -47
Income tax, settled -9 -4 -26 -17 -65
Cash flow before working capital changes 198 114 357 228 529
Working capital changes
Inventory changes 60 0 24 85 126
Receivables changes -79 212 -433 -91 173
Non-interest-bearing liabilities changes 172 -44 315 17 -15
Cash flow from operating activities 351 282 263 239 813
Q2 H1 Year
DKK million 2021 2020 2021 2020 2020
Investing activities
Purchase of intangible assets -15 -12 -28 -24 -50
Purchase of property, plant and equipment -47 -4 -57 -18 -33
Disposal of property, plant and equipment 0 0 18 1 8
Acquisition of associates -1 -2 -3 -2 -2
Divestment of associates 0 0 0 0 240
Other financial investments 0 0 -3 0 -1
Cash flow from investing activities -63 -18 -73 -43 162
Financing activities
Repayment of non-current interest-bearing debt -2 -3 -22 -5 -252
Raising of non-current interest-bearing liabilities 0 0 0 0 53
Change in current interest-bearing debt -130 -166 49 54 -205
Instalment on lease liabilities -29 -29 -57 -61 -121
Dividends distributed -110 0 -314 -102 -102
Sale of treasury shares 0 0 2 0 0
Cash flow from financing activities -271 -198 -342 -114 -627
Total cash flow 17 66 -152 82 348
Cash at bank and in hand at the beginning of period 235 72 404 56 56
Cash at bank and in hand at the end of period 252 138 252 138 404
Cash at bank and in hand at the end of the period
Cash at bank and in hand 252 138 252 138 404
Cash at bank and in hand at the end of the period 252 138 252 138 404
18
SOLAR Q2 2021 FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY
DKK million
Share
capital
Reserves
for hedging
transactions
1
Reserves for
foreign
currency
translation
adjustments
1
Retained
earnings
Proposed
dividends Total
2021
Equity as at 1 January 736 -60 -135 951 204 1,696
Foreign currency translation adjustments of foreign subsidiaries 11 11
Fair value adjustments of hedging instruments before tax 23 23
Tax on fair value adjustments -5 -5
Net income recognised in equity via other comprehensive income in the statement of comprehensive income 0 18 11 0 0 29
Net profit for the period 248 248
Comprehensive income 0 18 11 248 0 277
Distribution of dividends (DKK 28.00 per share) -204 -204
Distribution of extraordinary dividends (DKK 15.00 per share) -110 -110
Sale of treasury shares 2 2
Transactions with the owners 0 0 0 -108 -204 -312
Equity as at 30 June 736 -42 -124 1,091 0 1,661
1. Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.
19
SOLAR Q2 2021 FINANCIAL STATEMENTS
– continued
STATEMENT OF CHANGES IN EQUITY
DKK million
Share
capital
Reserves
for hedging
transactions
1
Reserves for
foreign
currency
translation
adjustments
1
Retained
earnings
Proposed
dividends Total
2020
Equity as at 1 January 736 -66 -113 933 102 1,592
Foreign currency translation adjustments of foreign subsidiaries -42 -42
Fair value adjustments of hedging instruments before tax -7 -7
Tax on fair value adjustments 2 2
Net income recognised in equity via other comprehensive income in the statement of comprehensive income 0 -5 -42 0 0 -47
Net profit or loss for the period 171 171
Comprehensive income 0 -5 -42 171 0 124
Distribution of dividends (DKK 14.00 per share) -102 -102
Transactions with the owners 0 0 0 0 -102 -102
Equity as at 30 June 736 -71 -155 1,104 0 1,614
1) Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.
20
SOLAR Q2 2021 FINANCIAL STATEMENTS
NOTES
Segment information
Solar’s business segments are Installation, Industry and Trade and are based on the customers’ aliation with
the segments. Installation covers installation of electrical, and heating and plumbing products, while Industry
covers industry, oshore and marine, and utility and infrastructure. Trade covers special sales and other small
areas. The three main segments have been identified without aggregation of operating segments. Segment
income and costs include any items that are directly attributable to the individual segment and any items that
can be reliably allocated to the individual segment. Non-allocated costs refer to income and costs related to
joint group functions. Assets and liabilities are not included in segment reporting.
DKK million Installation Industry Trade Total
Q2 2021
Revenue 1,850 971 277 3,098
Cost of sales -1,470 -744 -203 -2,417
Gross profit 380 227 74 681
Direct costs -63 -33 -12 -108
Earnings before indirect costs 317 194 62 573
Indirect costs -106 -57 -12 -175
Segment profit 211 137 50 398
Non-allocated costs -187
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 211
Depreciation and amortisation -58
Earnings before interest and tax (EBIT) 153
Financials, net incl. share of net profit from
associates and impairment on associates 3
Earnings before tax (EBT) 156
No single customer makes up more than 10% of the total revenue.
DKK million Installation Industry Trade Total
Q2 2020
Revenue 1,701 837 207 2,745
Cost of sales -1,370 -644 -169 -2,183
Gross profit 331 193 38 562
Direct costs -57 -24 -5 -86
Earnings before indirect costs 274 169 33 476
Indirect costs -139 -41 -13 -193
Segment profit 135 128 20 283
Non-allocated costs -156
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 127
Depreciation and amortisation -62
Earnings before interest and tax (EBIT) 65
Financials, net incl. share of net profit from
associates and impairment on associates
88
Earnings before tax (EBT) 153
No single customer makes up more than 10% of the total revenue.
21
SOLAR Q2 2021 FINANCIAL STATEMENTS
DKK million Installation Industry Trade Total
H1 2021
Revenue 3,699 1,904 499 6,102
Cost of sales -2,948 -1,446 -369 -4,763
Gross profit 751 458 130 1,339
Direct costs -121 -60 -17 -198
Earnings before indirect costs 630 398 113 1,141
Indirect costs -246 -104 -25 -375
Segment profit 384 294 88 766
Non-allocated costs -351
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 415
Depreciation and amortisation -119
Earnings before interest and tax (EBIT) 296
Financials, net incl. share of net profit from
associates and impairment on associates
-17
Earnings before tax (EBT) 279
DKK million Installation Industry Trade Total
H1 2020
Revenue 3,556 1,773 461 5,790
Cost of sales -2,864 -1,366 -375 -4,605
Gross profit 692 407 86 1,18 5
Direct costs -124 -51 -11 -186
Earnings before indirect costs 568 356 75 999
Indirect costs -283 -87 -25 -395
Segment profit 285 269 50 604
Non-allocated costs -335
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 269
Depreciation and amortisation -122
Earnings before interest and tax (EBIT) 147
Financials, net incl. share of net profit from
associates and impairment on associates
51
Earnings before tax (EBT) 198
Segment information – continued
NOTES
22
SOLAR Q2 2021 FINANCIAL STATEMENTS
Geographical information
Solar A/S primarily operates on the Danish, Swedish, Norwegian and Dutch markets. In the below table, Other
markets covers the remaining markets, which can be seen in the group companies overview available on page
137 of Annual Report 2020 or on www.solar.eu. The below allocation has been made based on the products’
place of sale.
Segment information – continued
NOTES
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
Q2 2021
Denmark 1,007 13.8 91 9.0 1,778
Sweden 692 7.4 35 5.1 221
Norway 482 5.9 38 7.9 183
The Netherlands 707 -1.4 34 4.8 342
Poland 112 47.0 5 4.5 28
Other markets 10 19.7 1 10.0 4
Eliminations -82 - 0 0.0 -1,220
Core business 2,928 8.0 204 7.0 1,336
Several markets
(MAG45) 166 20.5 7 4.2 49
Other markets 4 -4.6 0 0.0 0
Related business 170 19.7 7 4.1 49
Solar Group 3,098 8.6 211 6.8 1,385
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
Q2 2020
Denmark 865 1.9 62 7.2 2,101
Sweden 607 -4.8 20 3.3 322
Norway 430 -5.0 19 4.4 172
The Netherlands 694 0.6 20 2.9 363
Poland 84 -14.5 2 2.4 30
Other markets 9 16.4 1 11.1 5
Eliminations -83 - 0 0.0 -1,313
Core business 2,606 -1.6 124 4.8 1,680
Several markets
(MAG45) 134 -0.7 3 2.2 54
Other markets 5 -6.8 0 0.0 1
Related business 139 -0.9 3 2.2 55
Solar Group 2,745 -1.6 127 4.6 1,735
23
SOLAR Q2 2021 FINANCIAL STATEMENTS
Segment information – continued
NOTES
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
H1 2021
Denmark 2,007 10.4 185 9.2 1,778
Sweden 1,329 1.9 67 5.0 221
Norway 939 1.1 73 7.8 183
The Netherlands 1,440 -5.0 66 4.6 342
Poland 204 27.5 8 3.9 28
Other markets 22 19.4 3 13.6 4
Eliminations -165 - 0 0.0 -1,220
Core business 5,776 3.4 402 7.0 1,336
Several markets
(MAG45) 318 13.5 13 4.1 49
Other markets 8 -11.3 0 0.0 0
Related business 326 12.7 13 4.0 49
Solar Group 6,102 3.8 415 6.8 1,385
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
H1 2020
Denmark 1,811 3.0 133 7.3 2,101
Sweden 1,249 -3.3 48 3.8 322
Norway 905 -3.4 40 4.4 172
The Netherlands 1,506 2.4 35 2.3 363
Poland 173 -9.3 4 2.3 30
Other markets 19 21.5 2 10.5 5
Eliminations -161 - 0 0.0 -1,313
Core business 5,502 0.0 262 4.8 1,680
Several markets
(MAG45) 279 -0.9 7 2.5 54
Other markets 9 6.1 0 0.0 1
Related business 288 -0.7 7 2.4 55
Solar Group 5,790 0.0 269 4.6 1,735
24
SOLAR Q2 2021 FINANCIAL STATEMENTS
NOTES
Accounting policies
The quarterly report for Solar A/S has been prepared in accordance with IAS 34 “Presentation of interim
reports” as approved by the EU and additional Danish disclosure requirements for quarterly reports of listed
companies.
Apart from the eect of new IAS/IFRS standards implemented during the period, the accounting policies re-
main unchanged from the Annual Report 2020, which contains a full description of these on pages 58-60 as well
as of relevant, supplementary notes.
In the quarterly report, income tax has been calculated on the basis of pre-tax profits at the expected average
tax rate.
New accounting standards implemented during the period
No additional standards have been implemented in the period, only amendments and improvements to existing
standards. These changes have no impact on Solar’s accounting policies.
New accounting standards to be implemented in coming accounting periods
New or amended standards issued in 2021 and to be implemented in coming accounting periods are not ex-
pected to have significant impact on Solar's accounting policies.
25
SOLAR Q2 2021 FINANCIAL STATEMENTS
Consolidated
QUARTERLY FIGURES
Q1 Q2 Q3 Q4
Income statement (DKK million) 2021 2020 2021 2020 2020 2019 2020 2019
Revenue
3,004 3,045 3,098 2,745 2,618 2,777 3,057 3,077
Earnings before interest, tax, depreciation and amortisation (EBITDA)
204 142 211 127 177 152 191 161
Earnings before interest, tax and amortisation (EBITA)
157 97 166 81 132 105 145 115
Earnings before interest and tax (EBIT)
143 82 153 65 115 82 -14 75
Financials, net
-20 -8 3 -6 -10 -9 -16 -10
Earnings before tax (EBT)
123 45 156 153 109 -2 -7 73
Net profit or loss for the quarter
100 30 148 141 83 -22 -32 58
Balance sheet (DKK million)
Non-current assets
1,342 1,636 1,385 1,735 1,695 1,691 1,339 1,756
Current assets
3,500 3,349 3,569 3,267 3,227 3,460 3,268 3,234
Balance sheet total
4,842 4,985 4,954 5,002 4,922 5,151 4,607 4,990
Equity
1,619 1,441 1,661 1,614 1,688 1,512 1,696 1,592
Non-current liabilities
498 455 457 457 497 707 498 503
Current liabilities
2,725 3,089 2,836 2,931 2,737 2,932 2,413 2,895
Interest-bearing liabilities, net
461 1,077 329 845 726 1,089 128 921
Invested capital
2,011 2,332 1,921 2,178 2,132 2,395 1,760 2,297
Net working capital, end of period
1,344 1,432 1,280 1,383 1,363 1,467 1,109 1,280
Net working capital, average
1,300 1,411 1,274 1,391 1,365 1,339 1,322 1,386
26
SOLAR Q2 2021 FINANCIAL STATEMENTS
QUARTERLY FIGURES
Consolidated – continued
Q1 Q2 Q3 Q4
Cash flows (DKK million) 2021 2020 2021 2020 2020 2019 2020 2019
Cash flow from operating activities
-88 -43 351 282 142 144 432 305
Cash flow from investing activities
-10 -25 -63 -18 -8 -40 213 -48
Cash flow from financing activities
-71 84 -271 -198 -116 -88 -397 -264
Net investments in intangible assets
-13 -12 -15 -12 -12 -8 -14 -9
Net investments in property, plant and equipment
8 -13 -47 -4 1 -25 -9 -39
Acquisition and divestment of subsidiaries and operations, net
0 0 0 0 0 0 0 0
Financial ratios (% unless otherwise stated)
Revenue growth
-1.3 3.0 12.9 -4.3 -5.7 9.4 -0.6 2.3
Organic growth
-2.2 2.6 10.6 -1.7 -4.8 7.9 0.0 1.6
Organic growth adjusted for number of working days
-0.6 1.4 8.6 -1.6 -4.8 6.3 -2.1 2.6
Gross profit margin
21.9 20.5 22.0 20.5 21.5 19.7 21.5 20.5
EBITDA margin
6.8 4.7 6.8 4.6 6.8 5.5 6.2 5.2
EBITA margin
5.2 3.2 5.4 3.0 5.0 3.8 4.7 3.7
EBIT margin
4.8 2.7 4.9 2.4 4.4 3.0 -0.5 2.4
Net working capital (end of period NWC)/revenue (LTM)
11.8 12.2 10.9 11.9 11.9 12.6 9.7 11.0
Net working capital (average NWC )/revenue (LTM)
11.4 12.0 10.8 11.9 11.9 11.5 11.5 11.9
Gearing (interest-bearing liabilities,net/EBITDA), no. of times
0.7 1.9 0.4 1.5 1.2 2.2 0.2 1.7
Return on equity (ROE)
17.6 7.5 18.2 13.6 18.9 1.0 13.1 4.1
Return on invested capital (ROIC)
16.6 9.0 21.0 10.2 11.7 8.3 13.8 8.3
Adjusted enterprise value/earnings before interest, tax and amortisation (EV/EBITA)
7.6 6.3 7.0 6.0 6.2 8.1 5.8 7.9
Equity ratio
33.4 28.9 33.5 32.3 34.3 29.4 36.8 31.9
27
SOLAR Q2 2021 FINANCIAL STATEMENTS
QUARTERLY FIGURES
Consolidated – continued
Q1 Q2 Q3 Q4
Share ratios (DKK unless otherwise stated) 2021 2020 2021 2020 2020 2019 2020 2019
Earnings per share outstanding (EPS)
13.70 4.11 20.27 19.32 11.37 -3.18 -4.38
7.95
Intrinsic value per share outstanding
221.68 197.44 227.43 221.15 231.29 218.73 232.38
218.13
Share price
480.82 204.50 541.47 255.05 301.43 289.41 353.70
297.31
Share price/intrinsic value
2.17 1.04 2.38 1.15 1.30 1.32 1.52
1.36
Employees
Number of employees (FTE's), end of period
2,901 3,052 2,899 2,934 2,891 3,070 2,864
3,041
Average number of employees (FTE's)
2,897 3,057 2,889 3,024 2,979 3,018 2,935
3,039
Definitions
Organic growth Revenue growth adjusted for enterprises acquired and sold o and any exchange rate changes. No adjustments have been made for number of working days.
Net working capital Inventories and trade receivables less trade payables.
ROIC Return on invested capital calculated on the basis of operating profit or loss less tax calculated using the eective tax rate.
In general, financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
28
SOLAR Q2 2021 FINANCIAL STATEMENTS
STATEMENT BY THE EXECUTIVE BOARD
AND THE BOARD OF DIRECTORS
EXECUTIVE BOARD
BOARD OF DIRECTORS
29
SOLAR Q2 2021 FINANCIAL STATEMENTS
