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 STRONG
PERFORMANCE IN ALL MARKETS
Solar increased its guidance for 2022 EBITDA to DKK 1.1bn from DKK 975m. Moreover,
we increased revenue guidance to DKK 13.45bn compared to our previous guidance of
DKK 13.25bn. See announcement no. 11 2022.
CEO Jens Andersen says:
"We delivered a strong Q2 EBITDA growth driven by our four strategic focus
areas, Concepts, Industry, Climate & Energy and Trade, supported by a positive
development in all markets.
We posted double-digit adjusted organic growth in our two main segments
Installation and Industry reaching 11% and 18%, respectively.
Within Climate & Energy, we see continued high demand, and green solutions will
remain an important growth component.”
Q2 key financial messages
• Adjusted organic growth amounted to 12.4% up from 8.6%.
• EBITDA increased by DKK 56m to DKK 267m
• One-off price effects resulted in an impact of approx. DKK 45m on gross profit
compared to DKK 30m in Q2 2021.
Financial highlights (DKK million)
Q2 2022
Q2 2021
H1 2022
H1 2021
Revenue
3,451
3,098
6,913
6,102
EBITDA
267
211
548
415
Cash flow from operating activities
-10
351
-212
263
Financial ratios (%)
Organic growth adj. for number of working days
12.4
8.6
12.9
3.8
EBITDA margin
7.7
6.8
7.9
6.8
Net working capital, end of period/revenue (LTM)
14.1
10.9
14.1
10.9
Gearing (NIBD/EBITDA), no. of times
1.1
0.4
1.1
0.4
Return on invested capital (ROIC)
25.5
21.0
25.5
21.0
11 August 2022
Announcement no. 12 2022
1
Solar A/S
LEI: 21380031
XTLI9X5MTY92
Industrivej Vest 43, DK-6600 Vejen, Denmark
Tel. +45 79 30 00 00
CVR no. 15 90 84 16
www.solar.eu
11 August 2022
Announcement no. 12 2022
Audio webcast and teleconference today
The presentation of Quarterly Report Q2 2022 will be made in English on 11 August
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. +45 787 232 51
UK: tel. +44 333 300 9268
US: tel. +1 646 722 4904
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 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
Q2
2022
Solar A/S
CVR no. 15908416
LEI 21380031XTLI9X5MTY92
MANAGEMENT REVIEW
3 Who we are
4 Financial highlights
5 Core+ strategy update
6 Business update
9 Financial review
12 Our segments
14 Guidance
15 Shareholder information
CONTENTS
FINANCIAL STATEMENTS
17 Statement of comprehensive income
18 Balance sheet
19 Cash flow statement
20 Statement of changes in equity
22 Notes
28 Quarterly figures
31 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 Q2 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 MARKETS
1
Including eliminations
In Q2, our focus will centre on Trade, which is our smallest segment.
However, with 14% year-on-year growth, it is one of the fastest growing business areas.
Customers are not homogeneous; they require dierent products, services and logistics.
8,000 of our customers have found their perfect match in Trade.
We engage with our customers to develop the services of tomorrow
– which makes us stronger together.
3
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
MANAGEMENT REVIEW
SOLAR Q2 2022
Q2 FINANCIAL MESSAGES
• Adjusted organic growth amounted to 12.4% up from
8.6%.
• EBITDA margin increased by 0.9% to 7.7%. EBITDA of
DKK 267m (DKK 211m) was supported by positive
development in all markets.
• Return on invested capital (ROIC) increased to 25.5%
from 21%.
• On 9 August, EBITDA guidance for 2022 was revised
upwards by DKK 125m to DKK 1.1bn. Revenue for 2022
was revised upwards to a total of DKK 13.45bn, up by DKK
0.2bn, which corresponds to organic growth of approx.
9%. See announcement no. 11 2022.
Consolidated (DKK million)
Q2
2022
Q2
2021
H1
2022
H1
2021
Year
2021
Revenue 3,451 3,098 6,913 6,102 12,354
Earnings before interest, tax, depreciation and amortisation (EBITDA)
267 211 548 415 911
Earnings before interest, tax and amortisation (EBITA) 218 166 454 323 727
Earnings before interest and tax (EBIT) 202 153 424 296 672
Earnings before tax (EBT) 193 156 410 279 622
Net profit for the period 147 148 315 248 531
Balance sheet total 5,679 4,954 5,679 4,954 5,305
Equity 1,600 1,661 1,600 1,661 1,952
Interest-bearing liabilities, net 1,122 329 1,122 329 -37
Cash flow from operating activities -10 351 -212 263 783
Net investments in property, plant and equipment -61 -47 -120 -39 -125
Employees
Number of employees (FTE), end of period 2,995 2,899 2,995 2,899 2,936
Average number of employees (FTEs) 2,956 2,889 2,956 2,889 2,908
Financial ratios (% unless otherwise stated)
Organic growth adjusted for number of working days 12.4 8.6 12.9 3.8 5.9
Gross profit margin 22.9 22.0 23.0 21.9 22.4
EBITDA margin 7.7 6.8 7.9 6.8 7.4
EBITA margin 6.3 5.4 6.6 5.3 5.9
Net working capital (end of period NWC)/revenue (LTM) 14.1 10.9 14.1 10.9 10.2
Gearing (net interest-bearing liabilities/EBITDA), no. of times 1.1 0.4 1.1 0.4 0.0
Return on equity (ROE) 35.1 18.2 35.1 18.2 29.1
Equity ratio 28.2 33.5 28.2 33.5 36.8
Share ratios (DKK)
Earnings per share outstanding (EPS) 20.13 20.27 43.13 33.97 72.72
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
FINANCIAL HIGHLIGHTS
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WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
CORE+ STRATEGY UPDATE
18 months into our Core+ strategy, we continue to see strong progress across our four strategic focus areas.
We have introduced initiatives to ensure we are confident in meeting our 2023 ambitions.
REVENUE
>25%
AMBITION
Alignment and expansion of our product
portfolio within each concept.
Substitution of low margin business with
concepts.
Customisation of concept oerings to individual
target groups.
Introduction of Solar Select and Solar Zero:
concepts tailored to our Trade and Climate &
Energy customers, respectively.
Extending the organisational scope in Sweden
and Norway – increasing local market knowledge
and consolidating our product portfolio.
Introduction of high-capacity heat pumps as an
alternative heating solution for the industry.
Gas boilers phased out from our Danish product
portfolio.
Norwegian partner programme continues to add
value to a growing customer base.
Employee training in certified sustainable building.
CONCEPTS CLIMATE & ENERGY
Transition to a cross-border based vertical
organisational structure – covering Denmark,
Norway, Sweden and the Netherlands.
Solar Nederland introduced Marine & Oshore.
Important infrastructure contract in Norway
extended.
Increased demand from MRO and OEM customers
in Sweden in the automation product category.
Digitalisation drives demand for more
integration between our customers’ ERP
systems and our trading platform.
Introduction of Trade into the Swedish and
Norwegian markets. As Trade has been launched
in all our major markets, we have now established
a cross-market organisation which reflects the
dierent sub-segments they serve.
Increased level of activity in sales of sustainable
solutions, driven in particular by heat pumps
and lighting optimisation.
We continued to expand into new sub-segments
most recently into the B2B MRO segment.
INDUSTRY TRADE
Trade continues to deliver
strong growth.
We aim to grow our Trade segment by a CAGR
of >7.5% over the strategic period.
Continued growth in all our
Industry sub-segments.
We aim to grow Climate & Energy by >5% CAGR
over the strategic period.
Climate & Energy continues to see a
significant increase in demand.
We aim for a share of revenue from
Industry of 35%.
Our Concepts continue to perform and
generate growing revenue.
BUSINESS UPDATE
We aim for a share of revenue from
Concepts of >25%.
CAGR
>5%
AMBITION
REVENUE
35%
AMBITION
CAGR
>7.5%
AMBITION
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MANAGEMENT REVIEW
SOLAR Q2 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
BUSINESS UPDATE – TRADE
DEDICATED LOCAL
TEAMS SUPPORT
TRADE CUSTOMERS WITH
SPECIALISED SERVICES
The requirements and buying preferences
of our 8,000 trade customers dier from
our Installation and Industry segments.
Development is key
Our customers are based locally, which means
that cross-border sales are an exception. We have
therefore set up our organisation locally to match
our customers’ requirements. We also ensure that
Solar representatives are available for consulta-
tions whenever required.
Our teams work together across markets to share
knowledge and experience. We position our
customers for success by ensuring a best practice
approach, which means that we share trends and
identify opportunities.
Tailored product assortment
We continuously adapt our broad assortment to
changes in the market. With our extensive insight
into our diverse customer base, we are able to
present them with the right products – every
time.
We have introduced a new concept tailor-made
for our Trade customers and designed to further
advance their opportunities. The concept is
known as Solar Select.
Hands-on services
The services we oer our Trade customers dier
from the two other segments, Installation and
Industry. Each of our segments comprises unique
services. For Trade, these are storage solutions,
logistics and the cleaning of shelves in DIY shops:
2021
Trade
8%
Industry
Installation
60%
32%
services and solutions that support our Trade
customers in their daily business, allowing them
to focus on what they do best.
We prioritise the continued development of our
Trade services by engaging our customers.
SEGMENTS
SHARE OF REVENUE
6
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SOLAR Q2 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
ENERGY CHECKS OFFER
POTENTIAL SAVINGS
OF MORE THAN
10,000 KWH PER YEAR
In a partnership between Solar and Grundfos, annual energy
savings of more than 10,000 kWh and 2 tonnes of CO
were identified at Vejen sports centre. This can be
achieved simply by replacing circulation pumps with
more energy-ecient models.
"Rising energy prices mean that energy-saving
initiatives are very much to the fore and this
includes sports centre facilities,” says Solar’s
Claus Hartmann Enemark Nielsen, who has
market responsibility for Infrastructure & Trade,
Heating & Sanitation. "Energy consumption
for water accounts for a substantial part of the
centre’s fixed costs. Local councils have committed
to reducing their carbon footprint and to make
leisure facilities more sustainable.”
Circulation pumps are an oen-overlooked area,
but the savings are easily achievable. The pumps
are hidden away in basements and technical
rooms, and play a vital part in the management
and distribution of water. An inecient circulation
pump can have a major impact on the overall
energy bill and on operational reliability.
By focusing on energy optimisation and replacing
the old pumps, greater eciency, higher
operational reliability, less water consumption
and financial savings can be achieved.
Solar’s partner, Grundfos, produces pumping
solutions for building and construction, water
supply, wastewater and industrial use. Together,
the two companies visited the 30,000 m Vejen
sports centre to carry out an energy check. An
energy check means that the detailed results can
be used to address customer requirements.
At Vejen sports centre, the energy check resulted
in potential annual energy savings of more than
10,000 kWh and 2 tonnes CO provided that the
pumps were replaced with more energy-ecient
models.
"Replacing circulation pumps can account for an
important part of the energy-saving initiatives
that a sports centre can implement, but there
are many other parts of the operation that can
benefit from such monitoring,” says Claus
Hartmann Enemark Nielsen.
Solar adapts its products and services to
customers’ various requirements. We help to
form an overview of the potential savings and
can provide suggestions for how energy
consumption can be reduced. We have the insight
and can advise on innovative measures. There
are many opportunities for optimising energy
consumption, and by making procurement more
insightful, businesses can be made more ecient,
with savings made on time and money.
VEJEN SPORTS CENTRE, DENMARK
At 30,000 m, Vejen sports centre is
one of Denmark’s largest gyms and
together with it's aliates, it caters for
approx. 800,000 visitors per year.
Rising energy prices
mean that energy-saving
initiatives are very much to
the fore. And this includes
sports centre facilities.
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MANAGEMENT REVIEW
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WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE SHAREHOLDER INFORMATION
SOLAR PHASES OUT
GAS AND INSTALLS
HEAT PUMPS
At Solar’s warehouse facilities in Vejen, the installation of three
large heat pumps has been finalised. They supply heat to the
warehouse as well as the new AutoStore operation.
Green energy saving solutions are an integral
part of our investment in the expansion of the
warehouse in Vejen, which is why gas boilers have
been replaced with new energy saving air source
heat pumps.
"For Solar, rising gas prices are yet another
incentive to switch to heat pumps, and with the
prospect of rising CO₂ levies, the situation has
gone from being a green initiative to also being
one which is cost-eective and profitable,” says
Dennis Jeppesen, Sales Director, Climate and
Energy at Solar Danmark.
Attractive payback time
With the new heat pumps, we expect our
annual savings in energy consumption to be
approximately 1,373,000 kWh, which corresponds
to the annual energy consumption of around 275
homes. At current prices, we expect to achieve
savings of around DKK 2 million per year.
"With a total investment of DKK 6.2 million in the
new air source heat pumps and energy subsidies
from the government, we expect a payback period
of approximately 3 years. We’re switching to a green
and sustainable solution, which is also a very attrac-
tive investment for Solar,” explains Dennis Jeppesen.
Reduces CO₂ emissions
A gas boiler produces an average of 1 kWh of heat
per 1 kWh of input energy whereas a heat pump
produces approximately 3.5 times as much heat per
1 kWh of input energy. By switching to a heat pump,
therefore, emissions are reduced accordingly.
Simple installation
Our new air source heat pump system, which
replaces the two gas boilers, consists of three heat
pumps.
The heat pumps are located on the roof of the
warehouse in a cascade system to enable opti-
mum control. Photovoltaics on the roof mean
that we are self-sucient in energy and can run
the heat pumps with green energy.
UPDATE: WAREHOUSE EXPANSION
Green energy solutions
are appropriate for all
industrial companies: the
combination of photovoltaics
and heat pumps is ecient
while also significantly
reducing CO₂ emissions.
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE SHAREHOLDER INFORMATION
8
MANAGEMENT REVIEW
SOLAR Q2 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
Q2 adjusted organic growth was
up at 12.4% (8.6%), while gross
profit margin increased to 22.9%
(22.0%). Q2 EBITDA of DKK 267m
(DKK 211m) was supported by
positive development in all
markets.
Q2 2022
Revenue
Revenue increased to DKK 3.5bn (DKK 3.1bn) and
adjusted organic growth level amounted to 12.4%
(8.6%).
Although growth was supported by price
increases, we continued to see solid underlying
growth. The Installation and Industry segments
posted double-digit adjusted organic growth,
whereas Trade was stagnant, see page 12.
Gross profit
Gross profit margin increased to 22.9% (22.0%),
which combined with revenue growth, resulted in
a gross profit increase of DKK 109m. One-o price
eects resulted in a positive impact of
approx. DKK 45m (DKK 30m) on gross profit,
corresponding to a gross profit margin
improvement of approx. 1.3 percentage points
(1 percentage point).
External operating costs and sta costs
In total, external operating costs and sta costs
were down at 14.9% (15.1%) of revenue.
Rising prices, including energy prices and costs
relating to the establishment of our additional
warehouse capacity in Norway, had a negative
eect on cost development. Increased costs were
also attributable to strong revenue growth and
improved earnings.
Loss on trade receivables
Loss on trade receivables amounted to DKK 9m
(DKK 5m) mainly due to a few losses on individual
customers.
EBITDA
We succeeded in increasing EBITDA by DKK 56m.
This was supported by our four strategic focus
areas, Concepts, Industry, Climate & Energy and
Trade, positive one-os and a strong growth level.
The EBITDA margin was up at 7.7% (6.8%) as
EBITDA increased to DKK 267m (DKK 211m) and
slightly exceeded our expectations mainly due to
one-o price increases.
The results of the individual markets are given on
page 24.
Financials
Net financials amounted to DKK -8m (DKK 3m).
In Q2 2021, net financials were positively aected
by DKK 11m due to an interest compensation
related to a ruling from the Danish tax
authorities, see section on income tax on page
10.
Earnings before tax
Earnings before tax were up at DKK 193m
(DKK 156m).
Q2 EBITDA INCREASED
BY 27% TO DKK 267M
(Figures in brackets are figures from the corresponding period in 2021)
FINANCIAL REVIEW
GROSS PROFIT MARGIN
%
EBITDA
DKKm
Q2Q1 Q3 Q4
21
22
23
24
2022 2021
Q2Q1 Q3 Q4
0
50
100
150
200
250
300
2022 2021
22.9
267
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MANAGEMENT REVIEW
SOLAR Q2 2022
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FINANCIAL REVIEW
Income tax
Income tax amounted to DKK -46m (DKK -8m).
In Q2 2021, 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 amounted to approx. DKK 19m.
Net profit
Net profit came to DKK 147m (DKK 148m).
H1 2022
Revenue
In H1, adjusted organic growth at group level
increased to 12.9% (3.8%) and revenue was up at
DKK 6.9bn (DKK 6.1bn).
Gross profit
Gross profit increased by DKK 251m with
continuous improvement in the gross profit mar-
gin, which increased to 23.0% (21.9%).
One-o price eects resulted in a positive impact
of approx. DKK 80m (DKK 30m) on gross profit,
corresponding to a gross profit margin improve-
ment of approx. 1.2 percentage points (0.5
percentage point).
Other income
Other income amounted to DKK 1m (DKK 6m).
By way of comparison, in H1 2021, other income
related to profit from the disposal of a property
in Denmark of DKK 3m and one-o compensation
of DKK 3m.
External operating costs and sta costs
In total, external operating costs and sta costs
were down at 14.9% (15.1%) 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
EBITDA increased by DKK 133m to DKK 548m cor-
responding to an EBITDA margin of 7.9% (6.8%)
of revenue. All entities saw substantial improve-
ment in EBITDA, with Solar Nederland and Solar
Sverige making a significant contribution.
The results of the individual markets are shown
on page 25.
Financials
Net financials amounted to DKK -13m (DKK -17m).
In H1 2021, net financials were negatively aected
by DKK 14m due to the early redemption of an
interest swap and positively aected by DKK 11m
regarding interest compensation related to a
ruling by the Danish tax authorities.
Earnings before tax
Earnings before tax were up at DKK 410m (DKK
279m).
Income tax
Income tax amounted to DKK -95m (DKK -31m).
In H1 2021, 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 amounted to approx. DKK 19m.
Net profit
Net profit increased to DKK 315m (DKK 248m).
Cash flow
Net working capital calculated as an average of
the previous four quarters amounted to 12.3%
(10.8%) of revenue. Net working capital at the
end of Q2 2022 was 14.1% (10.9%).
In H1, cash flow from operating activities totalled
DKK -212m (DKK 263m).
Changes in receivables had a DKK -495m (DKK
-433m) impact on cash flow, which was aected
by the increased growth level in H1 2022 and nor-
mal seasonal fluctuations. Changes in inventories
and non-interest-bearing liabilities had an impact
of DKK -159m (DKK 24m) and DKK -37m (DKK
315m), respectively.
The general inventory level was aected by price
increases and by the decision to increase our
inventory level to ensure delivery performance
during a period of potential goods shortage.
Most of the COVID-19 financial support package
has now been repaid.
Total cash flow from investing activities
amounted to DKK -184m (DKK -73m). DKK -98m
related to the investment in the expansion and
upgrading of our 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 26 of this report.
Cash flow from financing activities amounted to
DKK 4m (DKK -342m), mainly aected by ordinary
and extraordinary dividend distributions totalling
DKK 658m (DKK 314m) and by the change in
current interest-bearing debt of DKK 723m (DKK
49m).
Consequently, cash flow totalled DKK -392m (DKK
-152m).
Net interest-bearing liabilities amounted to DKK
1,122m (DKK 329m).
As at 30 June 2022, gearing was 1.1 (0.4) times
EBITDA. Calculated as an average, gearing was un-
changed at 0.5 times EBITDA. Our gearing target
is between 1.5-3.0 times EBITDA.
As at 30 June 2022, Solar had undrawn credit
facilities of DKK 85m (DKK 426m).
NIBD IN DKK MILLION
-150
-658
-5
-98
10
-34
-12
200
0
-200
-400
-600
-800
-1,000
-1,200
37
31.12.2021
-212
Operating activities
CAPEX
Other investments
Dividends
Oth. fin. activities
Leasing & misc.
Assumed on acquisition
FX
-1,122
30.06.2022
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FINANCIAL REVIEW
KEY RISKS AND MITIGATION
Invested capital
Invested capital for the Solar Group totalled DKK
2,675m (DKK 1,921m). ROIC amounted to 25.5%
(21.0%).
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
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.
No additional risks have been identified.
The commercial and financial risks relating to
our activities are detailed in Solar’s 2021
Annual Report.
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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 Q2, revenue from Trade was unchanged at DKK
0.3bn corresponding to overall adjusted organic
growth of around -2% (30%) as revenue in the DIY
sub-segment declined albeit from a high level.
Segment profit amounted to DKK 40m (DKK 50m)
corresponding to a segment profit margin of
14.4% (18.1%) negatively aected by a decline in
gross profit margin.
OUR INSTALLATION AND INDUSTRY SEGMENTS
DELIVERED STRONG GROWTH IN Q2
(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 214m (DKK 187m) in Q2, 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 22.
OUR SEGMENTS
INSTALLATION
Our Installation segment covers installation of
electrical and heating and plumbing products.
In Q2, Installation revenue increased to DKK 2.0bn
(DKK 1.9bn) corresponding to overall adjusted
organic growth of around 11% (4%) related pri-
marily to the electrical business. Apart from Solar
Polska, all markets saw growth in Installation.
Segment profit increased to DKK 244m (DKK
211m) corresponding to a segment profit margin
of 12.0% (11.4%) positively aected by an in-
creased gross profit margin.
INDUSTRY
This segment covers industry, oshore and
marine industries as well as utilities and
infrastructure. Industry also includes MAG45.
In Q2, Industry revenue increased to DKK 1.1bn
(DKK 1.0bn). This corresponds to overall adjusted
organic growth of around 18% (12%) related
primarily to OEM, Utilities, Marine & Oshore,
although MRO also saw solid growth. We saw
growth above 20% for Solar Danmark, Solar
Norge and Solar Polska.
Segment profit increased to DKK 197m (DKK
137m). This corresponds to a segment profit
margin of 17.2% (14.1%).
Q2
2022
Q2
2022
Installation
Installation
2,028
244
Industry
Industry
Trade
Trade
278
40
1,145
197
SEGMENT REVENUE
DKKm
SEGMENT PROFIT
DKKm
OVERVIEW BUSINESS SEGMENTS
Q2
Revenue Segment profit Segment margin %
DKK million 2022 2021 2022 2021 2022 2021
Installation
2,028 1,850 244 211 12.0 11.4
Industry 1,145 971 197 137 17.2 14.1
Trade
278 277 40 50 14.4 18.1
Solar Group 3,451 3,098 481 398 13.9 12.8
12
MANAGEMENT REVIEW
SOLAR Q2 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
TRADE
In H1, revenue from Trade increased to DKK 0.6bn
(DKK 0.5bn) corresponding to overall adjusted
organic growth of around 14% (8%).
Segment profit amounted to DKK 80m (DKK 88m)
corresponding to a segment profit margin of
13.7% (17.6%).
ALL SEGMENTS DELIVERED
STRONG GROWTH IN H1
(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 427m (DKK 351m) in H1, 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 23.
OUR SEGMENTS
INSTALLATION
In H1, Installation revenue increased to DKK 4.1bn
(DKK 3.7bn) corresponding to overall adjusted
organic growth of around 10% (2%) related
primarily to the electrical business. All markets
saw growth in Installation, with Solar Sverige and
Solar Polska posting particularly strong growth.
Segment profit increased to DKK 500m (DKK
384m) corresponding to a segment profit margin
of 12.3% (10.4%) positively aected by an in-
creased gross profit margin.
INDUSTRY
In H1, Industry revenue increased to DKK 2.3bn
(DKK 1.9bn). This corresponds to overall adjusted
organic growth of around 18% (6%) related pri-
marily to OEM, Utilities, Marine & Oshore with
MRO also seeing solid growth. We posted growth
above 14% in all markets covering Industry, with
Solar Polska and Solar Norge making a substantial
contribution.
Segment profit increased to DKK 395m (DKK
294m). This corresponds to a segment profit mar-
gin of 17.4% (15.4%).
H1
2022
H1
2022
Installation
Installation
4,063
500
Industry
Industry
Trade
Trade
585
80
2,265
395
SEGMENT REVENUE
DKKm
SEGMENT PROFIT
DKKm
OVERVIEW BUSINESS SEGMENTS
H1
Revenue Segment profit Segment margin %
DKK million 2022 2021 2022 2021 2022 2021
Installation
4,063 3,699 500 384 12.3 10.4
Industry 2,265 1,904 395 294 17.4 15.4
Trade
585 499 80 88 13.7 17.6
Solar Group 6,913 6,102 975 766 14.1 12.6
13
MANAGEMENT REVIEW
SOLAR Q2 2022
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
EBITDA GUIDANCE HAS BEEN
UPGRADED TO DKK 1.1BN
Solar upgraded its EBITDA
guidance for 2022 by DKK 125m
to DKK 1.1bn on 9 August.
Revenue for 2022 was revised
upwards to a total of DKK
13.45bn, up by DKK 0.2bn,
which corresponds to organic
growth of approx. 9%. See
announcement no. 11 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
approximately 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 throughout the rest of 2022.
Installation
On the backdrop of continued electrification as
one of the important megatrends, we expect the
installation market to continue to show growth in
2022 compared to 2021.
Industry
The guidance is based on the assumption that
sales to all industry sub-segments will continue to
deliver solid growth rates.
Trade
In H2 2022, we also expect solid growth for spe-
cial sales, the Trade segment's primary activity.
FINANCIAL OUTLOOK 2022
Revenue guidance
We expect revenue to amount to DKK 13.45bn,
corresponding to organic growth of approx. 9%.
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
Solar Nederland. Adjusted for this, we expect
organic growth of approx. 11%.
EBITDA guidance
We expect EBITDA to amount to DKK 1.1bn, of
which DKK 200m 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
200
Improvement
50
Guidance 2022 Aug
1100
EBITDA
DKKm
14
MANAGEMENT REVIEW
SOLAR Q2 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
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 - 30 June
2022 was -12.5% including the DKK 45.00 ordinary
dividend and the DKK 45.00 extraordinary
dividend that was paid out in March and May
2022, respectively.
AUDIO WEBCAST
The presentation of the Quarterly Report Q2 2022
will be conducted in English on 11 August 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 Q2 2022
15
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
Q2 2022
16
STATEMENT OF COMPREHENSIVE INCOME
Income statement
Q2 H1 Year
DKK million 2022 2021 2022 2021 2021
Revenue 3,451 3,098 6,913 6,102 12,354
Cost of sales -2,661 -2,417 -5,323 -4,763 -9,581
Gross profit 790 681 1,590 1,339 2,773
Other operating income and costs 0 3 1 6 7
External operating costs -91 -68 -187 -143 -297
Sta costs -423 -400 -841 -776 -1,552
Loss on trade receivables -9 -5 -15 -11 -20
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
Depreciation and write-down on property, plant and
equipment
-49 -45 -94 -92 -184
Earnings before interest, tax and amortisation (EBITA) 218 166 454 323 727
Amortisation and impairment of intangible assets -16 -13 -30 -27 -55
Earnings before interest and tax (EBIT) 202 153 424 296 672
Share of net profit from associates -1 0 -1 0 -2
Financial income 12 14 22 22 41
Financial expenses -20 -11 -35 -39 -89
Earnings before tax (EBT) 193 156 410 279 622
Income tax -46 -8 -95 -31 -91
Net profit for the period 147 148 315 248 531
Earnings in DKK per share outstanding (EPS) 20.13 20.27 43.13 33.97 72.72
Diluted earnings in DKK per share outstanding (EPS-D) 20.07 20.22 43.00 33.90 72.50
Other comprehensive income
Q2 H1 Year
DKK million 2022 2021 2022 2021 2021
Net profit for the period 147 148 315 248 531
Other income and costs recognised:
Items that can be reclassified for the income statement
Foreign currency translation adjustments of foreign
subsidiaries
-35 -1 -28 11 14
Fair value adjustments of hedging instruments before tax 12 6 25 23 29
Tax on fair value adjustments of hedging instruments
-3 -1 -6 -5 -6
Other income and costs recognised aer tax -26 4 -9 29 37
Total comprehensive income for the period
17
FINANCIAL STATEMENTS
SOLAR Q2 2022
30.06 31.12
DKK million 2022 2021 2021
ASSETS
Intangible assets 183 157 159
Property, plant and equipment 961 831 885
Right-of-use assets 346 317 300
Deferred tax asset 12 3 13
Investments in associates 4 5 5
Other non-current assets 51 72 53
Non-current assets 1,557 1,385 1,415
Inventories 1,991 1,513 1,855
Trade receivables 1,957 1,701 1,502
Income tax receivable 4 33 0
Other receivables 14 18 6
Prepayments 57 52 46
Cash at bank and in hand 99 252 481
Current assets 4,122 3,569 3,890
Total assets 5,679 4,954 5,305
30.06 31.12
DKK million 2022 2021 2021
EQUITY AND LIABILITIES
Share capital 736 736 736
Reserves -167 -166 -158
Retained earnings 1,031 1,091 1,045
Proposed dividends for the financial year 0 0 329
Equity 1,600 1,661 1,952
Interest-bearing liabilities 116 124 120
Lease liabilities 247 217 203
Provision for deferred tax 133 103 101
Other provisions 10 13 11
Non-current liabilities 506 457 435
Interest-bearing liabilities 754 135 19
Lease liabilities 104 105 102
Trade payables 2,092 1,934 2,098
Income tax payable 59 46 33
Other payables 545 607 644
Prepayments 2 4 1
Other provisions 17 5 21
Current liabilities 3,573 2,836 2,918
Liabilities 4,079 3,293 3,353
Total equity and liabilities 5,679 4,954 5,305
BALANCE SHEET
18
FINANCIAL STATEMENTS
SOLAR Q2 2022
CASH FLOW STATEMENT
Q2 H1 Year
DKK million 2022 2021 2022 2021 2021
Net profit of continuing operations for the period 147 148 315 248 531
Depreciation, write-down and amortisation 65 58 124 119 239
Changes to provisions and other adjustments -9 3 -12 -2 11
Share of net profit from associates 1 0 1 0 2
Financials, net 7 -3 13 17 48
Income tax 46 8 95 31 91
Financial income, received 3 2 6 3 23
Financial expenses, settled -7 -9 -14 -33 -50
Income tax, settled -20 -9 -49 -26 -81
Cash flow before working capital changes 233 198 479 357 814
Working capital changes
Inventory changes -173 60 -159 24 -319
Receivables changes 36 -79 -495 -433 -229
Non-interest-bearing liabilities changes -106 172 -37 315 517
Cash flow from operating activities -10 351 -212 263 783
Q2 H1 Year
DKK million 2022 2021 2022 2021 2021
Investing activities
Purchase of intangible assets -14 -15 -30 -28 -58
Purchase of property, plant and equipment -61 -47 -120 -57 -143
Disposal of property, plant and equipment 0 0 0 18 18
Aquisition of subsidiaries and activities 0 0 -34 0 0
Acquisition of associates 0 -1 0 -3 -5
Other financial investments 0 0 0 -3 -3
Cash flow from investing activities -75 -63 -184 -73 -191
Financing activities
Repayment of non-current interest-bearing debt -2 -2 -4 -22 -79
Change in current interest-bearing debt 400 -130 723 49 -9
Instalment on lease liabilities -28 -29 -57 -57 -115
Dividends distributed -329 -110 -658 -314 -314
Sale of treasury shares 0 0 0 2 2
Cash flow from financing activities 41 -271 4 -342 -515
Total cash flow -44 17 -392 -152 77
Cash at bank and in hand at the beginning of period 143 235 481 404 404
Assumed on aquisition of subsidaries 0 0 10 0 0
Cash at bank and in hand at the end of period 99 252 99 252 481
Cash at bank and in hand at the end of the period
Cash at bank and in hand 99 252 99 252 481
Cash at bank and in hand at the end of the period 99 252 99 252 481
19
FINANCIAL STATEMENTS
SOLAR Q2 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 -28 -28
Fair value adjustments of hedging instruments before tax 25 25
Tax on fair value adjustments -6 -6
Net income recognised in equity via other comprehensive income in the statement of comprehensive income 0 19 -28 0 0 -9
Net profit for the period 315 315
Comprehensive income 0 19 -28 315 0 306
Distribution of dividends (DKK 45.00 per share) -329 -329
Distribution of extraordinary dividends (DKK 45.00 per share) -329 -329
Transactions with the owners 0 0 0 -329 -329 -658
Equity as at 30 June 736 -18 -149 1,031 0 1,600
20
FINANCIAL STATEMENTS
SOLAR Q2 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 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.
21
FINANCIAL STATEMENTS
SOLAR Q2 2022
NOTES
Segment information
The business segments of Solar A/ S 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
Q2 2022
Revenue 2,028 1,145 278 3,451
Cost of sales -1,589 -856 -216 -2,661
Gross profit 439 289 62 790
Direct costs -69 -33 -10 -112
Earnings before indirect costs 370 256 52 678
Indirect costs -126 -59 -12 -197
Segment profit 244 197 40 481
Non-allocated costs -214
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 267
Depreciation and amortisation -65
Earnings before interst and tax (EBIT) 202
Financials, net incl. share of net profit from
associates and impairment on associates -9
Earnings before tax (EBT) 193
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 interst and tax (EBIT) 153
Financials, net incl. share of net profit from
associates and impairment on associates 3
Earnings before tax (EBT) 156
22
FINANCIAL STATEMENTS
SOLAR Q2 2022
Segment information – continued
DKK million Installation Industry Trade Total
H1 2022
Revenue 4,063 2,265 585 6,913
Cost of sales -3,174 -1,688 -461 -5,323
Gross profit 889 577 124 1,590
Direct costs -136 -65 -19 -220
Earnings before indirect costs 753 512 105 1,370
Indirect costs -253 -117 -25 -395
Segment profit or loss 500 395 80 975
Non-allocated costs -427
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 548
Depreciation and amortisation -124
Earnings before interst and tax (EBIT) 424
Financials, net -14
Earnings before tax (EBT) 410
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 or loss 384 294 88 766
Non-allocated costs -351
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 415
Depreciation and amortisation -119
Earnings before interst and tax (EBIT) 296
Financials, net -17
Earnings before tax (EBT) 279
NOTES
23
FINANCIAL STATEMENTS
SOLAR Q2 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
Q2 2022
Sweden 724 8.0 48 6.6 178
Norway 554 14.8 44 7.9 229
The Netherlands 825 18.3 59 7. 2 329
Poland 119 6.1 5 4.2 26
Several markets (MAG45) 193 18.1 9 4.7 52
Other markets 29 21.3 2 6.9 32
Eliminations -102 - 0 0.0 -1,439
Solar Group 3,451 12.4 267 7.7 1,557
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
Several markets (MAG45) 166 20.5 7 4.2 49
Other markets 14 11.2 1 7.1 4
Eliminations -82 - 0 0.0 -1,220
Solar Group 3,098 8.6 211 6.8 1,385
24
FINANCIAL STATEMENTS
SOLAR Q2 2022
Segment information – continued
NOTES
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
H1 2022
Denmark 2,261 11.1 208 9.2 2,150
Sweden 1,427 10.2 101 7.1 178
Norway 1,104 14.7 91 8.2 229
The Netherlands 1,649 14.3 115 7.0 329
Poland 251 24.2 12 4.8 26
Several markets (MAG45) 374 17.7 17 4.5 52
Other markets 48 10.5 4 8.3 32
Eliminations -201 - 0 0.0 -1,439
Solar Group 6,913 12.9 548 7.9 1,557
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
Several markets (MAG45) 318 13.5 13 4.1 49
Other markets 30 9.3 3 10.0 4
Eliminations -165 - 0 0.0 -1,220
Solar Group 6,102 3.8 415 6.8 1,385
25
FINANCIAL STATEMENTS
SOLAR Q2 2022
NOTES
Acquisition of business activities
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.
26
FINANCIAL STATEMENTS
SOLAR Q2 2022
NOTES
Accounting policies
The financial 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 financial 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 30 June 2022 and to be implemented in coming accounting periods are
not expected to have significant impact on Solar's accounting policies.
27
FINANCIAL STATEMENTS
SOLAR Q2 2022
Consolidated
QUARTERLY FIGURES
Q1 Q2 Q3 Q4
Income statement (DKK million) 2022 2021 2022 2021 2021 2020 2021 2020
Revenue
3,462 3,004 3,451 3,098 2,872 2,618 3,380 3,057
Earnings before interest, tax, depreciation and amortisation (EBITDA)
281 204 267 211 237 177 259 191
Earnings before interest, tax and amortisation (EBITA)
236 157 218 166 192 132 212 145
Earnings before interest and tax (EBIT)
222 143 202 153 179 115 197 -14
Financials, net
-5 -20 -8 3 -20 -10 -11 -16
Earnings before tax (EBT)
217 123 193 156 159 109 184 -7
Net profit or loss for the quarter
168 100 147 148 124 83 159 -32
Balance sheet (DKK million)
Non-current assets
1,487 1,342 1,557 1,385 1,393 1,695 1,415 1,339
Current assets
4,088 3,500 4,122 3,569 3,724 3,227 3,890 3,268
Balance sheet total
5,575 4,842 5,679 4,954 5,117 4,922 5,305 4,607
Equity
1,808 1,619 1,600 1,661 1,784 1,688 1,952 1,696
Non-current liabilities
453 498 506 457 446 497 435 498
Current liabilities
3,314 2,725 3,573 2,836 2,887 2,737 2,918 2,413
Interest-bearing liabilities, net
617 461 1,122 329 450 726 -37 128
Invested capital
2,377 2,011 2,675 1,921 2,18 5 2,132 1,866 1,760
Net working capital, end of period
1,791 1,344 1,856 1,280 1,568 1,363 1,259 1,109
Net working capital, average
1,475 1,300 1,619 1,274 1,325 1,365 1,363 1,322
28
FINANCIAL STATEMENTS
SOLAR Q2 2022
QUARTERLY FIGURES
Consolidated – continued
Q1 Q2 Q3 Q4
Cash flows (DKK million) 2022 2021 2022 2021 2021 2020 2021 2020
Cash flow from operating activities
-202 -88 -10 351 -38 142 558 432
Cash flow from investing activities
-109 -10 -75 -63 -65 -8 -53 213
Cash flow from financing activities
-37 -71 41 -271 77 -116 -250 -397
Net investments in intangible assets
-16 -13 -14 -15 -14 -12 -16 -14
Net investments in property, plant and equipment
-59 8 -61 -47 -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 11.4 12.9 9.7 -5.7 10.6 -0.6
Organic growth
15.4 -2.2 11.7 10.6 8.8 -4.8 9.1 0.0
Organic growth adjusted for number of working days
13.6 -0.6 12.4 8.6 8.8 -4.8 7.1 -2.1
Gross profit margin
23.1 21.9 22.9 22.0 23.0 21.5 22.9 21.5
EBITDA margin
8.1 6.8 7.7 6.8 8.3 6.8 7.7 6.2
EBITA margin
6.8 5.2 6.3 5.4 6.7 5.0 6.3 4.7
EBIT margin 6.4 4.8 5.9 4.9 6.2 4.4 5.8 -0.5
Net working capital (end of period NWC)/revenue (LTM)
14.0 11.8 14.1 10.9 13.0 11.9 10.2 9.7
Net working capital (average NWC )/revenue (LTM)
11.5 11.4 12.3 10.8 11.0 11.9 11.0 11.5
Gearing (interest-bearing liabilities,net/EBITDA), no. of times
0.6 0.7 1.1 0.4 0.5 1.2 0.0 0.2
Return on equity (ROE)
31.9 17.6 35.1 18.2 19.7 18.9 28.4 13.1
Return on invested capital (ROIC)
26.5 16.6 25.5 21.0 23.6 11.7 24.6 13.8
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)
7.5 7.6 6.3 7.0 7.6 6.2 7.8 5.8
Equity ratio
32.4 33.4 28.2 33.5 34.9 34.3 36.8 36.8
29
FINANCIAL STATEMENTS
SOLAR Q2 2022
QUARTERLY FIGURES
Consolidated – continued
Q1 Q2 Q3 Q4
Share ratios (DKK unless otherwise stated) 2022 2021 2022 2021 2021 2020 2021 2020
Earnings per share outstanding (EPS)
23.00 13.70 20.13 20.27 16.98 11.37 21.77 -4.38
Intrinsic value per share outstanding
247. 5 6 221.68 219.08 227.43 244.28 231.29 267. 28 232.38
Share price
749.19 480.82 597.0 9 541.47 632.86 301.43 795.05 353.70
Share price/intrinsic value
3.03 2.17 2.73 2.38 2.59 1.30 2.97 1.52
Employees
Number of employees (FTE's), end of period
2,996 2,901 2,995 2,899 2,897 2,891 2,936 2,864
Average number of employees (FTE's)
2,932 2,897 2,956 2,889 2,890 2,979 2,908 2,935
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”.
30
FINANCIAL STATEMENTS
SOLAR Q2 2022
STATEMENT BY THE EXECUTIVE BOARD
AND THE BOARD OF DIRECTORS
EXECUTIVE BOARD
BOARD OF DIRECTORS
31
FINANCIAL STATEMENTS
SOLAR Q2 2022
