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
SOLAR DELIVERS
ALL-TIME HIGH Q1 EBITDA
In April, revenue and EBITDA guidance were revised upwards by DKK 500m and DKK
125m to DKK 13.25bn and DKK 975m, respectively. See announcement no. 7 2022.
CEO Jens Andersen says:
"In Q1, we delivered an EBITDA increase of DKK 77m, leading to a margin
increase of 1.3 percentage points driven by high growth combined with resilience
in all market segments.
We have seen all our segments – Installation, Industry and Trade – deliver strong
results with adjusted organic growth of 9%, 18% and 35%, respectively.
Furthermore, we are experiencing an additional increase in the demand for
renewable solutions across our markets.
Finally, the Board of Directors has decided to distribute an extraordinary dividend
of DKK 45.00 per share.”
Q1 key financial messages
• With 13.6% organic growth, we realised stronger growth rates than anticipated in all
markets.
• EBITDA increased by DKK 77m to DKK 281m.
• Return on invested capital (ROIC) increased by approx. 10 percentage points.
Financial highlights (DKK million)
Q1 2022
Q1 2021
Revenue
3,462
3,004
EBITDA
281
204
Cash flow from operating activities
-202
-88
Financial ratios (%)
Organic growth adj. for number of working days
13.6
-0.6
EBITDA margin
8.1
6.8
Net working capital, end of period/revenue (LTM)
14.0
11.8
Gearing (NIBD/EBITDA), no. of times
0.6
0.7
Return on invested capital (ROIC)
26.5
16.6
5 May 2022
Announcement no. 9 2022
1
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
5 May 2022
Announcement no. 9 2022
Audio webcast and teleconference today
The presentation of Quarterly Report Q1 2022 will be made in English on 5 May 2022 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. +45 781 501 09
UK: tel. +44 333 300 9273
US: tel. +1 631 913 1422 – PIN 67031694#
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 & plumbing and climate & 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 12.4bn in
2021 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.
2
Q1
2022
CVR no. 15908416
MANAGEMENT REVIEW
3 Who we are
4 Financial highlights
5 Business update
7 Financial review
9 Our segments
10 Guidance
11 Shareholder information
CONTENTS
FINANCIAL STATEMENTS
13 Statement of comprehensive income
14 Balance sheet
15 Cash flow statement
16 Statement of changes in equity
18 Notes
22 Quarterly figures
25 Statement by the Executive Board and
the Board of Directors
OUR PURPOSE
We improve
construction, building operation
and industry processes
with a commitment to
sustainability and productivity.
For our customers. With our partners.
For a better world.
2
MANAGEMENT REVIEW
SOLAR Q1 2022
WHO WE ARE
We are a leading European sourcing and services company.
Product groups
Product brands
Denmark Sweden
Poland
Norway
The Netherlands Other
1
33% 21%
4%
16%
23% 3%
Installation Industry
2021 share of revenue 2021 share of revenue2021 share of revenue
Trade
Electrical
Concepts
Other brands
Heating & Plumbing
Climate & Energy
60%
22%
74%
20%
6%
78%
8%32%
OUR PRODUCTSOUR SEGMENTSOUR ENTITIES
1
Including eliminations
In Q1, we are zooming in on our Installation segment. Installation constitutes
60% of revenue, making it a pivotal part of our ambition to achieve a
>6.5% EBITDA margin by 2023.
As part of our drive for excellence, we will continue to put our customers first and
adapt our organisation, product assortment and services to their requirements.
All of which makes us Stronger Together.
3
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
MANAGEMENT REVIEW
SOLAR Q1 2022
Q1 FINANCIAL MESSAGES
• Q1 EBITDA of DKK 281m (DKK 204m) exceeded our
expectations due to strong organic growth.
• On 21 April, EBITDA guidance for 2022 was revised
upwards by DKK 125m to DKK 975m. Revenue for 2022
was revised upwards to a total of DKK 13.25bn, up by DKK
0.5bn, which corresponds to organic growth of approx.
7%. See announcement no. 7 2022.
• The Board of Directors has decided to use their authority
to pay out an extraordinary dividend of DKK 45.00 per
share, totalling DKK 329m. The extraordinary dividend will
be distributed on 17 May 2022. See announcement no. 8
of 5 May 2022.
Consolidated (DKK million)
Q1
2022
Q1
2021
Year
2021
Revenue 3,462 3,004 12,354
Earnings before interest, tax, depreciation and amortisation (EBITDA)
281 204 911
Earnings before interest, tax and amortisation (EBITA) 236 157 727
Earnings before interest and tax (EBIT) 222 143 672
Earnings before tax (EBT) 217 123 622
Net profit for the year 168 100 531
Balance sheet total 5,575 4,842 5,305
Equity 1,808 1,619 1,952
Interest-bearing liabilities, net 617 461 -37
Cash flow from operating activities -202 -88 783
Net investments in property, plant and equipment -59 8 -125
Employees
Number of employees (FTE), end of period 2,996 2,901 2,936
Average number of employees (FTEs) 2,932 2,897 2,908
Financial ratios (% unless otherwise stated)
Organic growth adjusted for number of working days 13.6 -0.6 5.9
Gross profit margin 23.1 21.9 22.4
EBITDA margin 8.1 6.8 7. 4
EBITA margin 6.8 5.2 5.9
Net working capital (year-end NWC)/revenue (LTM) 14.0 11.8 10.2
Gearing (net interest-bearing liabilities/EBITDA), no. of times 0.6 0.7 0.0
Return on equity (ROE) 31.9 17.6 29.1
Equity ratio 32.4 33.4 36.8
Share ratios (DKK)
Earnings per share outstanding (EPS) 23.00 13.70 72.72
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
FINANCIAL HIGHLIGHTS
4
MANAGEMENT REVIEW
SOLAR Q1 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
THE INSTALLERS OF
TODAY REQUIRE MORE
THAN A PRODUCT
Our more than 20,000 installation customers range from
sole installation contractors to large installation companies.
However, all our customers have come to value our expertise
and extensive range, which covers electrical, heating &
plumbing installations and climate & energy products.
Local market knowledge
The way in which Solar has organised Installation
diers from country to country. Market demand
and brand recognition vary: what sells in Sweden,
for example, does not necessarily sell in the
Netherlands.
This is why our organisational setup is locally
anchored, ensuring that we can draw on local
knowledge, oer the right product assortment
and adjust to the level of digitalisation and the
number of shops locally.
It is part of our company culture to put our
customers at the centre of our business and then
position them for success.
Wide product assortment
In general, our customers require a large assort-
ment covering electrical, heating & plumbing
installations and renewable product groups.
The combination of our assortment and digital
platform means that our customers have a one-
stop-shop, which saves them time and increases
eciency.
Whether our installation customers are working
on a new build, a renovation or an upgrade, our
assortment contains all the products required in
their day-to-day business.
Integrated services
We have adapted our ordering platforms to the
installation customer segment, ensuring access
to the best possible experience during a busy
working day. Our order service can be accessed
via our digital platforms on desktop, via our Solar
Mobile app or accessed by phone.
Our ordering service has been designed to
ensure first-class delivery. As we know that order
timeliness and accuracy are paramount to our
customers, we deliver on a day-to-day – even on
an hourly – basis.
We understand that digital is not for everyone,
which is why we also oer face-to-face trans-
actions - whether through our Click & Collect
order service or through one of our strategically
located shops.
Every order is supported by our market leading
customer service. We not only sell products, but
solutions. Our knowledgeable customer service
teams are always at hand to guide our customers
through the installation process – no matter how
complex it is.
2021
Installation
60%
Industry
Trade
8%
32%
SEGMENTS
SHARE OF REVENUE
5
MANAGEMENT REVIEW
SOLAR Q1 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE SHAREHOLDER INFORMATION
INSTALLED WITH
COMPETENT ADVICE
AND FAST ASSISTANCE
For Schrøder A/S fast and flexible assistance is paramount
when it comes to installations. With Solar as their resource,
they are assured of the advice and calculations they need.
When Schrøder A/S was contacted by a bed &
breakfast customer about an old pellet boiler
stove, it was immediately evident that an upgrade
was required. The stove was old, too big for its
purpose and dicult to maintain. By switching
to a heat pump, the bed & breakfast would be
assured of a more modern and future-proof
solution.
Schrøder therefore contacted Solar to help them
select the best solution.
”In a case like this, it’s important for us to call on
fast and competent support,” says Allan Stokbæk,
Chief Engineer at Schrøder A/S, with responsi-
bility for the design and installation of the heat
pump. Solar and Panasonic, the supplier of the
heat pump, visited the customer to check out the
conditions and advise on the best solution. Based
on Schrøder’s findings, Solar prepared the neces-
sary heat calculations and technical drawings.
”It was a complex installation,” explains Allan
Stokbæk. ”Partly because the heat requirements
were substantial which meant that a single
standard heat pump would be insucient, and
partly because the hot water tank was located at
the other end of the building because of lack of
space.”
Solar’s solution was to install two air/water heat
pumps in a cascade solution, where one heat
pump is activated at a time to minimise wear and
tear. A buer and an additional hot water tank
were also installed to ensure a continuous supply
of hot water. Due to the special layout of the
system, an ordinary hot water tank would risk the
heat being flushed out and the electric heating
in the tank would heat up the return pipe in the
heating system. The problem was overcome by
choosing a hot water tank with a heating ele-
ment at the top. As well as ensuring the correct
capacity in the heat pumps, Solar also successful-
ly addressed the special conditions pertaining to
the hot water supply.
”As we run a very busy business, we really value
Solar’s competent advice and fast assistance
with the calculations. Their flexibility in finding
the best solution is also a great asset,” says Allan
Stokbæk.
Schrøder has since checked with the customer
and the system is running smoothly. The custom-
er no longer has the hassle of filling and cleaning
the pellet boiler stove – and savings are even
expected at the end of the year.
SCHRØDER A/S, HOLSTED,
DENMARK
Schrøder is a Danish electrical
installation company based in
Holsted, Vejrup and Vamdrup. The
firm has 60 employees and services
commercial, industrial, agricultural
and domestic customers.
CASE: INSTALLATION
As we run a very busy
business, we really value
Solar’s competent advice
and fast assistance with the
calculations. Their flexibility
in finding the best solution
is also a great asset.
6
MANAGEMENT REVIEW
SOLAR Q1 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE SHAREHOLDER INFORMATION
Q1 EBITDA of DKK 281m (DKK
204m) exceeded our expectations
due to strong organic growth
based on our Core+ strategy. Q1
adjusted organic growth was up at
13.6% (-0.6%), while gross profit
margin increased to 23.1% (21.9%).
Q1 2022 REVENUE
In Q1, adjusted organic growth at group level
amounted to 13.6% (-0.6%). All segments saw
positive adjusted organic growth. Revenue
increased to DKK 3.5bn (DKK 3.0bn).
GROSS PROFIT
Gross profit margin increased to 23.1% (21.9%)
which, combined with revenue growth, resulted
in a gross profit increase of DKK 142m. One-o
price eects resulted in a positive impact of
approx. DKK 35m (DKK 0m) on gross profit, corre-
sponding to a gross profit margin improvement
of approx. 1.0 percentage point.
EXTERNAL OPERATING COSTS AND
STAFF COSTS
In total, external operating costs and sta costs
were down at 14.8% (15.0%) of revenue.
Rising prices, including energy prices, had a
negative eect on cost development. Increased
costs were also attributable to strong revenue
growth and improved earnings.
EBITDA
We succeeded in increasing EBITDA by DKK 77m.
This was supported by our four strategic focus
areas, Concept, Industry, Climate & Energy and
Trade, positive one-os and a strong growth level.
The EBITDA margin was up at 8.1% (6.8%) as
EBITDA increased to DKK 281m (DKK 204m) and
exceeded our expectations.
The results of the individual markets are given on
page 19.
FINANCIALS
Net financials amounted to DKK -5m (DKK -20m).
In Q1 2021, net financials were negatively aected
by DKK 14m due to the early redemption of an
interest swap. A similar, positive amount was
reported under other comprehensive income.
Adjusted for this item, net financials totalled DKK
-5m (DKK -6m).
EARNINGS BEFORE TAX
Earnings before tax increased by 76% to DKK
217m (DKK 123m).
NET PROFIT
Net profit increased to DKK 168m (DKK 100m).
Q1 EBITDA INCREASED
BY 38% TO DKK 281M
(Data shown in brackets relate to the corresponding period in 2021)
FINANCIAL REVIEW
GROSS PROFIT MARGIN
%
EBITDA
DKKm
23.1
281
Q2Q1 Q3 Q4
18
19
20
21
22
23
24
2022 2021
Q2Q1 Q3 Q4
0
50
100
150
200
250
300
2022 2021
7
MANAGEMENT REVIEW
SOLAR Q1 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
CASH FLOW
Net working capital calculated as an average of
the previous four quarters amounted to 11.5%
(11.4%) of revenue. Net working capital at the
end of Q1 2022 amounted to 14.0% (11.8%).
Cash flow from operating activities totalled DKK
-202m (DKK -88m).
Changes in receivables had a DKK -531m (DKK
-354m) impact on cash flow aected by the
increased growth level in Q1 2022 and normal
seasonality.
Changes in inventories and non-interest-bearing
liabilities had an impact of DKK 14m (DKK -36m)
and DKK 69m (DKK 143m) respectively.
The general inventory level was aected by
price increases and by the decision to ensure
delivery performance during a period of potential
shortage of goods.
As at 31 March 2022, COVID-19 financial support
packages amounted to DKK 85m of which the
main part will be repaid during 2022.
Total cash flow from investing activities amounted
to DKK -109m (DKK -10m). DKK -51m related to
the investment in the expansion and upgrade of
our central warehouse in Denmark, cf. page 10 in
Annual Report 2021. In addition, the acquisition of
Højager Belysning A/S had an impact of DKK -34m,
cf. page 20 in this report.
Cash flow from financing activities amounted to
DKK -37m (DKK -71m), mainly aected by dividend
distributions of DKK -329m (DKK -204m) and by
the change in current interest-bearing debt of
DKK 323m (DKK 179m).
Consequently, total cash flow amounted to DKK
-348m (DKK -169m).
Net interest-bearing liabilities amounted to DKK
617m (DKK 461m).
As at 31 March 2022, gearing was 0.6 (0.7) times
EBITDA. Calculated as an average, our gearing
was 0.3 (0.8) times EBITDA. Our gearing target is
1.5-3.0 times EBITDA.
As at 31 March 2022, Solar had undrawn credit
facilities of DKK 179m (DKK 305m).
INVESTED CAPITAL
Invested capital for the Solar Group totalled DKK
2,377m (DKK 2,011m). ROIC amounted to 26.5%
(16.6%).
Activities with a Solar equity interest of less than
50% are not included in the ROIC calculation.
Invested capital only includes operating assets
and liabilities.
EVENTS OCCURRING AFTER THE
REPORTING PERIOD
Extraordinary dividend
Solar’s Board of Directors regularly assesses the
company’s capital structure to ensure that it is
appropriate for both the shareholders and the
company.
At the Annual General Meeting in March 2022, the
Board of Directors was granted authority to dis-
tribute extraordinary dividend of up to DKK 50.00
per share. The Board of Directors has decided to
use their authority to pay out an extraordinary
dividend of DKK 45.00 per share due to our
upgrading of EBITDA guidance for 2022.
The extraordinary dividend, which totals DKK
329m, will be paid out on 17 May 2022, see an-
nouncement no. 8 of 5 May 2022.
Rent agreement, Solar Norge
To increase short-term warehouse capacity, Solar
Norge has entered an agreement to rent 12,900
m2 located next to the Gardermoen warehouse.
The agreement becomes eective on 15 May
2022. DKK 65m will be recognised in the balance
sheet as a right of use asset and lease liability,
respectively.
KEY RISKS AND MITIGATION
Like other international companies, Solar is
aected by both global trends and local
conditions in the markets where we operate.
The Russian invasion of Ukraine and sanctions
imposed by the European Union and other
international bodies may also aect markets
outside Russia and Ukraine.
Solar neither has business activities in Russia nor
Ukraine, but there is a potential risk of the knock-
on eects e.g. leading to significant drop in
market activities. We are monitoring the situation
closely and will adopt the necessary initiatives to
limit these impacts, preserve business continuity
and protect earnings.
Commercial and financial risks relating to
our activities are detailed in Solar’s 2021
Annual Report.
FINANCIAL REVIEW
NIBD IN DKK MILLION
100
0
-100
-200
-300
-400
-500
-600
-700
31.12.2021
Operating activities
CAPEX
Other investments
Dividends
Oth. fin. activities
Leasing & misc.
Assumed on acquisition
31.03.2022
37
-202
-75
-329
5
-29
10
-34
-617
8
MANAGEMENT REVIEW
SOLAR Q1 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
TRADE
Our Trade segment covers special sales and other
small areas. It also includes Solar Polaris.
In Q1, revenue from Trade increased to DKK 0.3bn
(DKK 0.2bn) corresponding to overall adjusted
organic growth of around 35% (-11%). We saw
double-digit growth rates in all main markets.
Segment profit increased to DKK 40m (DKK 38m)
corresponding to a segment profit margin of
13.0% (17.1%).
OUR SEGMENTS DELIVERED
STRONG GROWTH IN Q1
(Data shown in brackets relate to the corresponding period in 2021)
Segment profit includes any items that are directly
attributable to the individual segment and any
items that can be reliably allocated to the individual
segment.
Segment profit does not include non-allocated costs
of DKK 213m (DKK 164m) in Q1, which refer to income
and costs related to joint group functions and to
costs, which can not be reliably allocated to the
individual segment.
Detailed segment information is given on page 18.
OUR SEGMENTS
INSTALLATION
Our Installation segment covers installation of
electrical, and heating and plumbing products.
In Q1, Installation revenue increased to DKK 2.0bn
(DKK 1.8bn) corresponding to overall adjusted or-
ganic growth of around 9% (0%) related primarily
to the electrical business. All markets saw growth
in Installation, with Solar Polska posting particu-
larly strong growth.
Segment profit increased to DKK 256m (DKK
173m) corresponding to a segment profit margin
of 12.6% (9.4%) positively aected by an in-
creased gross profit margin.
INDUSTRY
This segment covers the industry, oshore and
marine industries as well as utilities and infra-
structure. Industry also includes MAG45.
In Q1, Industry revenue increased to DKK 1.1bn
(DKK 0.9bn). This corresponds to overall adjusted
organic growth of around 18% (1%) related
primarily to OEM, Utilities, Marine & Oshore
although MRO also saw solid growth. We saw
growth above 15% in all markets covering
Industry, with Solar Polska and Solar Sverige
making a substantial contribution.
Segment profit increased to DKK 198m (DKK
157m). This corresponds to a segment profit
margin of 17.7% (16.8%).
Q1
2022
Q1
2022
Installation
Installation
2,035
256
Industry
Industry
Trade
Trade
307
40
1,120
198
SEGMENT REVENUE
DKKm
SEGMENT PROFIT
DKKm
OVERVIEW BUSINESS SEGMENTS
Q1
Revenue Segment profit Segment margin %
DKK million 2022 2021 2022 2021 2022 2021
Installation
2,035 1,849 256 173 12.6 9.4
Industry 1,120 933 198 157 17.7 16.8
Trade
307 222 40 38 13.0 17.1
Solar Group 3,462 3,004 494 368 14.3 12.3
9
MANAGEMENT REVIEW
SOLAR Q1 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
EBITDA GUIDANCE HAS BEEN
UPGRADED TO DKK 975M
Solar upgraded its EBITDA
guidance for 2022 by DKK
125m to DKK 975m on 21
April. Revenue for 2022 was
revised upwards to a total of
DKK 13.25bn, up by DKK 0.5bn,
which corresponds to organic
growth of approx. 7%, see
announcement no. 7 2022.
GENERAL ASSUMPTIONS
The guidance for 2022 assumes that the Russian
invasion of Ukraine and sanctions imposed by the
European Union and other international bodies
will not have any significant knock-on eects e.g.
leading to significant drop in market activities.
Loss on trade receivables is assumed to be at the
same level as in 2021.
MARKET OUTLOOK FOR SOLAR’S
SEGMENTS
Overall, we expect the markets to show growth
rates in all countries in 2022, in part due to the
eect of price increases but also in part due to
greater focus on electrification.
Installation
On the backdrop of continued electrification as
one of the important megatrends, we expect
the installation market to show growth in 2022
compared to 2021.
Industry
The guidance is based on the assumption that
sales to all subsegments within industry will
deliver solid growth rates.
Trade
We also expect solid growth for special sales, the
primary activity in the Trade segment.
FINANCIAL OUTLOOK 2022
Revenue guidance
We expect revenue to amount to DKK 13,250m,
corresponding to organic growth of approx. 7%.
Our Better Business project is an integral part
of the Core+ strategy and is expected to reduce
revenue by approx. DKK 200m compared to 2021.
This will mainly aect Installation and Trade,
primarily in Solar Sverige, and to a lesser extent
in Solar Nederland. Adjusted for this, we expect
organic growth of approx. 9%.
EBITDA guidance
Supported by increased demand, we expect
our strategic focus areas to deliver continuous
earnings improvement, resulting in an EBITDA of
DKK 975m, of which DKK 80m can be attributed
to one-o price eects.
* not adjusted for IFRS16 impact
** including one-o income of DKK 112m
GUIDANCE 2022
1200
1100
1000
900
800
700
600
500
400
300
2017*
2018*
2019
2020
2021**
One-os 2021
Improvement
Guidance 2022 Feb
One-os 2022
362
379
538
911
-112
51
850
637
80
Improvement
45
Guidance 2022 Apr
975
EBITDA
DKKm
10
MANAGEMENT REVIEW
SOLAR Q1 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
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%
DISTRIBUTION OF SHARE CAPITAL
AND VOTES BASED ON THE LATEST
PUBLIC INFORMATION
FINANCIAL CALENDAR 2022
1 April – 5 May IR quiet period
5 May Quarterly Report Q1 2022
1 July – 11 August IR quiet period
11 August Quarterly Report Q2 2022
1 October - 3 November IR quiet period
3 November Quarterly Report Q3 2022
The A shares are not listed. The B shares are
listed on Nasdaq Copenhagen under the ID code
DK0010274844, and are designated SOLAR B, and
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 of the Solar B share
during the holding period 1 January 2022 - 31
March 2022 was -0.8% including the DKK 45.00
dividend that was paid out in March 2022.
AUDIO WEBCAST
The presentation of the Quarterly Report Q1 2022
will be conducted in English on 5 May 2022 at
11:00 CET. The presentation will be transmitted as
an audio webcast and will be available at:
SHAREHOLDER INFORMATION
WWW.SOLAR.EU
SOLAR Q1 2022
11
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
Solar A/S
CVR no. 15 90 84 16
CONSOLIDATED
FINANCIAL
STATEMENTS
Q1 2022
12
STATEMENT OF COMPREHENSIVE INCOME
Income statement
Q1 Year
DKK million 2022 2021 2021
Revenue 3,462 3,004 12,354
Cost of sales -2,662 -2,346 -9,581
Gross profit 800 658 2,773
Other operating income and costs 1 3 7
External operating costs -96 -75 -297
Sta costs -418 -376 -1,552
Loss on trade receivables -6 -6 -20
Earnings before interest, tax, depreciation and amortisation (EBITDA) 281 204 911
Depreciation and write-down on property, plant and equipment -45 -47 -184
Earnings before interest, tax and amortisation (EBITA) 236 157 727
Amortisation and impairment of intangible assets -14 -14 -55
Earnings before interest and tax (EBIT) 222 143 672
Share of net profit from associates 0 0 -2
Impairment and gain from divestment of associates 0 0 0
Financial income 10 8 41
Financial expenses -15 -28 -89
Earnings before tax (EBT) 217 123 622
Income tax -49 -23 -91
Net profit for the period 168 100 531
Earnings in DKK per share outstanding (EPS) 23.00 13.70 72.72
Diluted earnings in DKK per share outstanding (EPS-D) 22.95 13.68 72.50
Other comprehensive income
Q1 Year
DKK million 2022 2021 2021
Net profit for the period 168 100 531
Other income and costs recognised:
Items that can be reclassified for the income statement
Foreign currency translation adjustments of foreign subsidiaries 7 12 14
Fair value adjustments of hedging instruments before tax 13 17 29
Tax on fair value adjustments of hedging instruments
-3 -4 -6
Other income and costs recognised aer tax 17 25 37
Total comprehensive income for the period
13
FINANCIAL STATEMENTS
SOLAR Q1 2022
31.03 31.12
DKK million 2022 2021 2021
ASSETS
Intangible assets 186 156 159
Property, plant and equipment 929 801 885
Right-of-use assets 302 305 300
Deferred tax asset 12 3 13
Investments in associates 4 4 5
Other non-current assets 54 73 53
Non-current assets 1,487 1,342 1,415
Inventories 1,849 1,572 1,855
Trade receivables 2,042 1,631 1,502
Income tax receivable 3 12 0
Other receivables 12 11 6
Prepayments 39 39 46
Cash at bank and in hand 143 235 481
Current assets 4,088 3,500 3,890
Total assets 5,575 4,842 5,305
31.03 31.12
DKK million 2022 2021 2021
EQUITY AND LIABILITIES
Share capital 736 736 736
Reserves -141 -170 -158
Retained earnings 1,213 1,053 1,045
Proposed dividends for the financial year 0 0 329
Equity 1,808 1,619 1,952
Interest-bearing liabilities 118 179 120
Lease liabilities 206 205 203
Provision for pension obligations 0 0 0
Provision for deferred tax 119 101 101
Other provisions 10 13 11
Non-current liabilities 453 498 435
Interest-bearing liabilities 335 208 19
Lease liabilities 101 104 102
Trade payables 2,100 1,859 2,098
Income tax payable 46 27 33
Other payables 710 517 644
Prepayments 19 3 1
Other provisions 3 7 21
Current liabilities 3,314 2,725 2,918
Liabilities 3,767 3,223 3,353
Total equity and liabilities 5,575 4,842 5,305
BALANCE SHEET
14
FINANCIAL STATEMENTS
SOLAR Q1 2022
CASH FLOW STATEMENT
Q1 Year
DKK million 2022 2021 2021
Net profit or loss of continuing operations for the period 168 100 531
Depreciation, write-down and amortisation 59 61 239
Changes to provisions and other adjustments -3 -5 11
Share of net profit from associates 0 0 2
Financials, net 6 20 48
Income tax 49 23 91
Financial income, received 3 1 23
Financial expenses, settled -7 -24 -50
Income tax, settled -29 -17 -81
Cash flow before working capital changes 246 159 814
Working capital changes
Inventory changes 14 -36 -319
Receivables changes -531 -354 -229
Non-interest-bearing liabilities changes 69 143 517
Cash flow from operating activities -202 -88 783
Q1 Year
DKK million 2022 2021 2021
Investing activities
Purchase of intangible assets -16 -13 -58
Purchase of property, plant and equipment -59 -10 -143
Disposal of property, plant and equipment 0 18 18
Aquisition of subsidiaries and activities -34 0 0
Acquisition of associates 0 -2 -5
Other financial investments 0 -3 -3
Cash flow from investing activities -109 -10 -191
Financing activities
Repayment of non-current interest-bearing debt -2 -20 -79
Raising of non-current interest-bearing liabilities 0 0 0
Change in current interest-bearing debt 323 179 -9
Instalment on lease liabilities -29 -28 -115
Dividends distributed -329 -204 -314
Sale of treasury shares 0 2 2
Cash flow from financing activities -37 -71 -515
Total cash flow -348 -169 77
Cash at bank and in hand at the beginning of period 481 404 404
Assumed on aquisition of subsidaries 10 0 0
Foreign currency translation adjustments 0 0 0
Cash at bank and in hand at the end of period 143 235 481
Cash at bank and in hand at the end of the period
Cash at bank and in hand 143 235 481
Cash at bank and in hand at the end of the period 143 235 481
15
FINANCIAL STATEMENTS
SOLAR Q1 2022
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
2022
Equity as at 1 January 736 -37 -121 1,045 329 1,952
Foreign currency translation adjustments of foreign subsidiaries 7 7
Fair value adjustments of hedging instruments before tax 13 13
Tax on fair value adjustments -3 -3
Net income recognised in equity via other comprehensive income in the statement of comprehensive income 0 10 7 0 0 17
Net profit for the period 168 168
Comprehensive income 0 10 7 168 0 185
Distribution of dividends (DKK 45.00 per share) -329 -329
Transactions with the owners 0 0 0 0 -329 -329
Equity as at 31 March 736 -27 -114 1,213 0 1,808
16
FINANCIAL STATEMENTS
SOLAR Q1 2022
– 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
2021
Equity as at 1 January 736 -60 -135 951 204 1,696
Foreign currency translation adjustments of foreign subsidiaries 12 12
Fair value adjustments of hedging instruments before tax 17 17
Tax on fair value adjustments -4 -4
Net income recognised in equity via other comprehensive income in the statement of comprehensive income 0 13 12 0 0 25
Net profit for the period 100 100
Comprehensive income 0 13 12 100 0 125
Distribution of dividends (DKK 28.00 per share) -204 -204
Sale of treasury shares 2 2
Transactions with the owners 0 0 0 2 -204 -202
Equity as at 31 March 736 -47 -123 1,053 0 1,619
1) Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.
17
FINANCIAL STATEMENTS
SOLAR Q1 2022
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 and costs, which can not be reliably allocated to the individual segment. Assets and
liabilities are not included in segment reporting.
DKK million Installation Industry Trade Total
Q1 2022
Revenue 2,035 1,120 307 3,462
Cost of sales -1,585 -832 -245 -2,662
Gross profit 450 288 62 800
Direct costs -67 -32 -9 -108
Earnings before indirect costs 383 256 53 692
Indirect costs -127 -58 -13 -198
Segment profit 256 198 40 494
Non-allocated costs -213
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 281
Depreciation and amortisation -59
Earnings before interst and tax (EBIT) 222
Financials, net incl. share of net profit from
associates and impairment on associates -5
Earnings before tax (EBT) 217
DKK million Installation Industry Trade Total
Q1 2021
Revenue 1,849 933 222 3,004
Cost of sales -1,478 -702 -166 -2,346
Gross profit 371 231 56 658
Direct costs -58 -27 -5 -90
Earnings before indirect costs 313 204 51 568
Indirect costs -140 -47 -13 -200
Segment profit 173 157 38 368
Non-allocated costs -164
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 204
Depreciation and amortisation -61
Earnings before interst and tax (EBIT) 143
Financials, net incl. share of net profit from
associates and impairment on associates -20
Earnings before tax (EBT) 123
18
FINANCIAL STATEMENTS
SOLAR Q1 2022
Geographical information
Other markets covers the remaining markets, which can be seen in the group companies overview available
on page 132 of Annual Report 2021 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
Q1 2022
Denmark 1,152 12.7 108 9.4 2,073
Sweden 703 12.7 53 7.5 191
Norway 550 14.7 47 8.5 180
The Netherlands 824 10.6 56 6.8 335
Poland 132 47.4 7 5.3 26
Several markets (MAG45) 181 17.6 8 4.4 54
Other markets 19 -0.3 2 10.5 33
Eliminations -99 - 0 0.0 -1,405
Solar Group 3,462 13.6 281 8.1 1,487
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
Q1 2021
Denmark 1,000 7.1 94 9.4 1,742
Sweden 637 -3.5 32 5.0 199
Norway 457 -3.5 35 7.7 187
The Netherlands 733 - 8.1 32 4.4 352
Poland 92 9.0 3 3.3 26
Several markets (MAG45) 152 6.7 6 3.9 51
Other markets 16 7.4 2 12.5 5
Eliminations -83 - 0 0.0 -1,220
Solar Group 3,004 -0.6 204 6.8 1,342
19
FINANCIAL STATEMENTS
SOLAR Q1 2022
NOTES
Acquisition of subsidiary
On 1 March 2022, Solar acquired the shares in the lighting company Højager Belysning A/S in Denmark.
Total acquisition price of 100% of the Højager Belysning shares amounted to DKK 34m, equal to an
enterprise value of DKK 25m.
With the acquisition, Solar takes a strong position with the B2G market in Denmark, as Højager Belysning
A/S is a leading supplier within sales of light sources and lighting for the public sector with Staten og
Kommunernes Indkøbsservice A/S (in short: SKI) and the regions being their customers. Højager Belysning
A/S has 28 dedicated employees.
20
FINANCIAL STATEMENTS
SOLAR Q1 2022
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 2021, which contains a full description of these on pages 57-59 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 become eective 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 as at 31 March 2022 and to be implemented in coming accounting periods
are not expected to have significant impact on Solar's accounting policies.
21
FINANCIAL STATEMENTS
SOLAR Q1 2022
Consolidated
QUARTERLY FIGURES
Q1 Q2 Q3 Q4
Income statement (DKK million) 2022 2021 2021 2020 2021 2020 2021 2020
Revenue
3,462 3,004 3,098 2,745 2,872 2,618 3,380 3,057
Earnings before interest, tax, depreciation and amortisation (EBITDA)
281 204 211 127 237 177 259 191
Earnings before interest, tax and amortisation (EBITA)
236 157 166 81 192 132 212 145
Earnings before interest and tax (EBIT)
222 143 153 65 179 115 197 -14
Financials, net
-5 -20 3 -6 -20 -10 -11 -16
Earnings before tax (EBT)
217 123 156 153 159 109 184 -7
Net profit or loss for the quarter
168 100 148 141 124 83 159 -32
Balance sheet (DKK million)
Non-current assets
1,487 1,342 1,385 1,735 1,393 1,695 1,415 1,339
Current assets
4,088 3,500 3,569 3,267 3,724 3,227 3,890 3,268
Balance sheet total
5,575 4,842 4,954 5,002 5,117 4,922 5,305 4,607
Equity
1,808 1,619 1,661 1,614 1,784 1,688 1,952 1,696
Non-current liabilities
453 498 457 457 446 497 435 498
Current liabilities
3,314 2,725 2,836 2,931 2,887 2,737 2,918 2,413
Interest-bearing liabilities, net
617 461 329 845 450 726 -37 128
Invested capital
2,377 2,011 1,921 2,178 2,185 2,132 1,866 1,760
Net working capital, end of period
1,791 1,344 1,280 1,383 1,568 1,363 1,259 1,109
Net working capital, average
1,475 1,300 1,274 1,391 1,325 1,365 1,363 1,322
22
FINANCIAL STATEMENTS
SOLAR Q1 2022
QUARTERLY FIGURES
Consolidated – continued
Q1 Q2 Q3 Q4
Cash flows (DKK million) 2022 2021 2021 2020 2021 2020 2021 2020
Cash flow from operating activities
-202 -88 351 282 -38 142 558 432
Cash flow from investing activities
-109 -10 -63 -18 -65 -8 -53 213
Cash flow from financing activities
-37 -71 -271 -198 77 -116 -250 -397
Net investments in intangible assets
-16 -13 -15 -12 -14 -12 -16 -14
Net investments in property, plant and equipment
-59 8 -47 -4 -51 1 -35 -9
Acquisition and divestment of subsidiaries and operations, net
-34 0 0 0 0 0 0 0
Financial ratios (% unless otherwise stated)
Revenue growth
15.2 -1.3 12.9 -4.3 9.7 -5.7 10.6 -0.6
Organic growth
15.4 -2.2 10.6 -1.7 8.8 -4.8 9.1 0.0
Organic growth adjusted for number of working days
13.6 -0.6 8.6 -1.6 8.8 -4.8 7.1 -2.1
Gross profit margin
23.1 21.9 22.0 20.5 23.0 21.5 22.9 21.5
EBITDA margin
8.1 6.8 6.8 4.6 8.3 6.8 7.7 6.2
EBITA margin
6.8 5.2 5.4 3.0 6.7 5.0 6.3 4.7
EBIT margin 6.4 4.8 4.9 2.4 6.2 4.4 5.8 -0.5
Net working capital (end of period NWC)/revenue (LTM)
14.0 11.8 10.9 11.9 13.0 11.9 10.2 9.7
Net working capital (average NWC )/revenue (LTM)
11.5 11.4 10.8 11.9 11.0 11.9 11.0 11.5
Gearing (interest-bearing liabilities,net/EBITDA), no. of times
0.6 0.7 0.4 1.5 0.5 1.2 0.0 0.2
Return on equity (ROE)
31.9 17.6 18.2 13.6 19.7 18.9 28.4 13.1
Return on invested capital (ROIC)
26.5 16.6 21.0 10.2 23.6 11.7 24.6 13.8
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)
7.5 7.6 7. 0 6.0 7.6 6.2 7. 8 5.8
Equity ratio
32.4 33.4 33.5 32.3 34.9 34.3 36.8 36.8
23
FINANCIAL STATEMENTS
SOLAR Q1 2022
QUARTERLY FIGURES
Consolidated – continued
Q1 Q2 Q3 Q4
Share ratios (DKK unless otherwise stated) 2022 2021 2021 2020 2021 2020 2021 2020
Earnings per share outstanding (EPS)
23.00 13.70 20.27 19.32 16.98 11.37 21.77 -4.38
Intrinsic value per share outstanding
247. 56 221.68 227.43 221.15 244.28 231.29 267.28 232.38
Share price
749.19 480.82 541.47 255.05 632.86 301.43 795.05 353.70
Share price/intrinsic value
3.03 2.17 2.38 1.15 2.59 1.30 2.97 1.52
Employees
Number of employees (FTE's), end of period
2,996 2,901 2,899 2,934 2,897 2,891 2,936 2,864
Average number of employees (FTE's)
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 all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
24
FINANCIAL STATEMENTS
SOLAR Q1 2022
STATEMENT BY THE EXECUTIVE BOARD
AND THE BOARD OF DIRECTORS
EXECUTIVE BOARD
BOARD OF DIRECTORS
25
FINANCIAL STATEMENTS
SOLAR Q1 2022
