Q2 2023
Report
Solar A/S
CVR no. 15 90 84 16
We are a leading
European sourcing and
Who we are
Installation Industry Trade
Denmark
Sweden
Norway
Poland
Other
1
33
16
4
3
%
%
%
%
%
%
Groups
Brands
Share of 2022 revenue
Share of 2022 revenue
ProductsSegments
Markets
The Netherlands
24
20
1) Including eliminations
Share of 2022 revenue
58
%
33
%
9
%
Electrical
Concepts
Heating & Plumbing
Other brands
Climate & Energy
73
%
23
%
17
%
77
%
10
%
2Solar A/S
Q2 2023
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.
Contents
Management review
Financial highlights 4
Business update 5
Financial review 9
Our segments 11
Guidance 2023 13
Shareholder information 14
Consolidated financial statements Q2
Statement of comprehensive income 16
Balance sheet 17
Cash flow statement 18
Statement of changes in equity 19
Notes 21
Section 1 – Basis for preparation 21
Section 2 – Income statement 23
Section 3 – Invested capital 27
Quarterly information 29
Statement 33
Strengthening margin and
earnings
Solar plants 116,000
trees for the benefit of
climate and environment
We launched our Core and Core+
strategy in 2018 and 2021 respectively,
largely targeting Concepts and Industry
as well as efficiency in general. We
boosted our EBITDA from DKK 362m in
2017 to a projected DKK 900m in 2023.
Solar has converted 38 hectares of
agricultural land into a new forest in
Vejen, Denmark, where 116,000 trees
have been planted: 35% deciduous
and 65% coniferous.
Page 7
Page 8
3Solar A/S
Q2 2023
Q2 Financial messages
• Q2 EBITDA of DKK 214m in line with our expectations.
• Adjusted for one-off price effects the underlying EBITDA
margin was slightly improved.
• We confirm our 2023 EBITDA guidance of DKK 900m.
Financial
highlights
Q2 H1 Year
Consolidated (DKK million) 2023 2022 2023 2022 2022
Revenue 3,250 3,451 6,906 6,913 13,863
Earnings before interest, tax, depreciation and amortisation (EBITDA)
214 267 494 548 1,175
Earnings before interest, tax and amortisation (EBITA) 159 218 385 454 978
Earnings before interest and tax (EBIT) 121 202 330 424 909
Earnings before tax (EBT) 101 193 290 410 858
Net profit for the period 77 147 222 315 660
Balance sheet total 6,317 5,679 6,317 5,679 5,901
Total equity 1,810 1,600 1,810 1,600 1,931
Interest-bearing liabilities, net 1,558 1,122 1,558 1,122 1,074
Cash flow from operating activities 78 -10 179 -212 16
Net investments in property, plant and equipment -29 -61 -59 -120 -167
Employees
Number of employees (FTE's), end of period 3,063 2,995 3,063 2,995 3,043
Average number of employees (FTE's) 3,058 2,956 3,058 2,956 3,019
Financial ratios (%, unless otherwise stated)
Adjusted organic growth -1.0 12.4 2.8 12.9 12.9
Gross profit margin 22.7 22.9 22.9 23.0 23.4
EBITDA margin 6.6 7.7 7. 2 7.9 8.5
EBITA margin 4.9 6.3 5.6 6.6 7.1
Net working capital (end of period NWC)/revenue (LTM) 16.3 14.1 16.3 14.1 15.9
Gearing (net interest-bearing liabilities/EBITDA), no. of times 1.4 1.1 1.4 1.1 0.9
Return on equity (ROE) 32.7 35.1 32.7 35.1 34.0
Equity ratio 27.9 28.2 27. 9 28.2 32.7
Share ratios (DKK)
Earnings per share outstanding (EPS) 10.54 20.13 30.40 43.13 90.37
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
4Solar A/S
Q2 2023
Core+ strategy update
The introduction of several initiatives within our four
strategic focus areas is paying off and will not only support
our ambitions for 2023 but also for the years to come.
Business update
Product consolidation across our footprint to ensure
our product assortment is aligned.
Concepts is now firmly rooted in Drive-ins, where the
offering has become part of daily sales.
Our operating model has been fully implemented and
rolled out - ensuring focus, alignment and execution.
Ongoing optimisation of concept assortment ensuring
it meets customer demand and the current market
situation.
2023 Ambitions Today
Our Concepts continue to
perform and convert sales.
Climate & Energy continues
to see increased demand
despite temporary slowdown
in Denmark.
Continued growth in all our
Industry sub-segments.
Trade continues to deliver
growth.
Today Today Today2023 Ambitions 2023 Ambitions 2023 Ambitions
25
%
>
40
%
>
35
%
>
15
%
>
ThermoNova acquisition has led to the establishment
of Solar Industrial Solutions (HP & PV).
Cross-border alignment on heat pumps and solar
panels to respond to customer specific needs at speed
in constantly changing markets.
Launch of Solar Zero Concept across all Climate &
Energy sub-categories.
Alignment of solar panel & heat pump brands across
Solar markets leveraging Solar Group’s strength.
Fully transitioned to a cross-border based vertical
organisational structure – encompassing Denmark,
Norway, Sweden and the Netherlands.
Continued focus on our Swedish market fuels solid
growth within both OEM and MRO.
Fibre infrastructure contracts are coming to an end,
which are partly being replaced by incoming DNO
(Distribution Network Operator) contracts.
Trade is recently established in the Swedish and
Norwegian markets and is now showing growth across
all four markets.
MRO B2B continues to drive growth, particularly within
procurement collaboration across different sectors,
such as hotels, fitness centres etc.
Our Solar Select concept has been well received by the
Trade segment and has shown progress since the
introduction.
Concepts Climate & Energy Industry Trade
of revenue of revenueCAGR CAGR
5Solar A/S
Q2 2023
Strengthening margin and earnings
Concepts
Our Concepts embody five elements – price, quality,
availability, coverage and delivery, which makes them a
strong alternative to the A-brand. Conversion to a
concept delivers an increase to our EBITDA margin and
ensures higher value for our customers. The concepts
are a win-win situation for both customers and Solar.
With a strong focus on driving our concept share, we
have achieved a 23% share of revenue, which
corresponds to a +2 percentage point growth. We are
therefore well on our way to reaching our target of
25% share of revenue even in a period with high
revenue growth in areas where concepts are not
available.
Industry
The industry segment comprises four sub-segments
– Infrastructure, MRO, OEM and Marine & Offshore.
We have seen strong growth in all four segments,
boosting the share of revenue by 2 percentage points
and reaching 34%. We have also significantly
increased our segment profit margin.
Growth has not only supported our margin, but has
also had a positive effect by diversifying our business
and lowering the impact from the cyclical trends
inherent in 'new build projects'.
Efficiency
Efficiency is of paramount importance and in this
respect, internal and external digitalisation and
automation are our main drivers.
Digitalisation covers the installation of SAP across all
our main entities, which has increased the insight and
control of our local warehouses, enhanced customer
understanding and sharpened our ability to adapt to
different market situations significantly faster.
We also strive to transfer our customers onto our
digital platforms, which are available on their preferred
browser and as a mobile app. In this way, we are
offering our customers greater flexibility and
availability when placing orders. In May 2023, our
Solar mobile app won a silver medal at the Danish
Digital Awards in the 'customer experience' category.
Automation is focused largely on our warehouses,
where we have installed AutoStore in Norway, Denmark
and the Netherlands to further improve customer
experience and take automation to a new level.
As a leading digital company, we will invest in the
continuous improvement of our business by deploying
tried and tested technology.
ThermoNova adds
an additional solution
to our Climate &
Energy assortment,
and we are now able
to provide our
customers with
energy efficient,
high-capacity heat
pumps
“
We launched our Core and
Core+ strategy in 2018
and 2021 respectively,
largely targeting Concepts
and Industry as well as
efficiency in general. We
boosted our EBITDA from
DKK 362m* in 2017 to a
projected DKK 900m in
2023.
Business update
*Not adjusted for IFRS 16, Leasing
6Solar A/S
Q2 2023
Solar’s
concepts make
the difference
Business update
I always buy Solar Plus items
wherever possible. My employees
can access what their customers
want every time, which means
satisfied customers.
Solar’s webshop is designed so
that we can always get Solar Plus
alternatives. We can also see how
much we save by converting to
Solar Plus. There are substantial
sums to be saved – every time.
Kim Boysen,
Co-owner of Hjerting Installationsforretning
About Hjerting Installationsforretning
Hjerting Installationsforretning is a Danish electrical installation company based in
Esbjerg, Denmark. The firm has 13 employees and services commercial, industrial
and domestic customers.
The company is focused on 'treating customers as we would wish to be treated'. And
their flexibility stems from employees being encouraged to collaborate across their
own areas of expertise.
Solar Plus is one of a number of
Solar concepts and covers the
majority of products used by our
customers on a daily basis. High
quality, a competitive price and
constant availability are what set us
apart. You can read more about
Solar's concepts at:
www.solar.eu/products-solu-
tions/concepts/
7Solar A/S
Q2 2023
Solar plants
116,000 trees
for the benefit
of climate and
environment
Sustainability
Solar has converted 38 hectares of agricultural land into a new forest in Vejen,
Denmark, where 116,000 trees have been planted: 35% deciduous and 65%
coniferous. The initiative takes into account both the climate and the environment as
coniferous trees have an approximately 65% greater CO
2
absorption rate compared to
deciduous trees, which have a substantial effect on biodiversity. The forest and its
operation will be certified under the FSC global labelling system.
Trees for the future
Sustainability is a vital part of our strategy. Our sustainability
framework, Green Together, centres upon the three pillars:
environment, social and governance. Solar goes above and
beyond by focusing not only on becoming CO
2
-neutral in scope 1
and 2 no later than 2030 but also aims to improve biodiversity
and help improve life on land by afforestation.
Solar’s investment in the planting of a new forest just outside the
head office in Vejen, Denmark, is an important aspect of our
ambitious sustainability strategy. As it was of prime importance
for Solar to follow the afforestation project at close hand and
play an active part, proximity was a key factor in the choice of
location.
Afforestation and increasing biodiversity are a long-term
investment in nature. Both are beneficial to the climate and the
environment as trees retain emissions, protect groundwater and
help improve the living conditions of animals.
8Solar A/S
Q2 2023
*Price effects: Price increases above normal level related to goods on stock.
Q2 EBITDA of DKK 214m
is on par with expectations
Q2 2023
Revenue
As expected, Q2 saw declining growth. Revenue
decreased to DKK 3.3bn (DKK 3.5bn) and adjusted
organic growth at group level amounted to -1.0%
(12.4%). Solar Norge and MAG45 delivered positive
adjusted organic growth.
Climate & Energy, one of our strategic focus areas,
delivered very strong growth rates, corresponding to
revenue of almost DKK 375m even though the
substantial slowdown in Denmark seen in March
continued in Q2. We expect the sale of heat pumps to
pick up when the new subsidy scheme is implemented,
which is expected late Q3.
The Industry and Trade segments posted adjusted
organic growth of 1% and 8% respectively, while the
Installation segment posted adjusted organic growth of
-3%, see page 24.
Gross profit
The gross profit margin decreased to 22.7% (22.9%).
However, the underlying gross profit margin improved
in Q2 2023. By way of comparison, one-off price
effects improved the underlying gross profit margin by
approx. 1.3 percentage points in Q2 2022, while
one-off price effects were negligible in Q2 2023.
External operating costs and staff costs
External operating costs and staff costs amounted to
15.9% (14.9%) of revenue.
Several measures were initiated in Q1, including cost
containment, process improvements and staff
reduction to reduce the impact of cost inflation. The
initiatives became effective in Q2 as total external
operating costs and staff costs declined compared to
Q1 2023 and were on a par with Q2 2022 despite the
impact of inflation.
Loss on trade receivables
We conduct efficient credit management also in the
currently unpredictable market conditions. As a result,
our loss on trade receivables decreased to DKK 6m
(DKK 9m).
EBITDA
EBITDA of DKK 214m (DKK 267m) was on a par with
expectations. When adjusted for one-off price effects
in Q2 2022, the underlying EBITDA margin improved
slightly to 6.6% (6.4%). The EBITDA level was
supported by improvements across all our strategic
focus areas.
The results of the individual markets are given on
page 26.
Our continuous focus on gross
profit margin and our cost
containment initiatives
continued to deliver in Q2.
Adjusted for one-off price
effects, the underlying EBITDA
margin improved slightly.
(Figures in brackets are figures from the
corresponding period in 2022)
Gross profit margin
Percentage
DKKm
EBITDA adj. for one-off price effects*
Q1
23.2
23.1
22.9
24.1
23.6
Q2 Q3 Q4
22.7
25
24
23
22
2023
2022
Q1 Q2 Q3 Q4
350
300
250
200
150
100
50
0
2023
2022
246
222
236
256
255
214
Financial review
9Solar A/S
Q2 2023
Depreciation and write-down
Depreciation and write-down on property, plant and
equipment increased to DKK 55m (DKK 49m). The
expansion of the central warehouse in Vejen, Denmark,
and the implementation of AutoStore were completed
in Q4 2022 and the investment is now being
depreciated.
Amortisation and impairment of intangible assets
Amortisation and impairment of intangible assets
amounted to DKK -38m (DKK -16m) as an impairment
loss on Højager Belysning of DKK 20m was recognised
in Q2 2023.
Financials
Net financials amounted to DKK -20m (DKK -8m) and
were negatively affected by increased debt and
interest rates.
Earnings before tax
Earnings before tax decreased to DKK 101m (DKK
193m) as Q2 2022 was positively affected by one-off
price effects of DKK 45m.
Net profit
Net profit came to DKK 77m (DKK 147m).
H1 2023
Revenue
As expected, we saw declining growth in H1. Adjusted
organic growth at group level amounted to 2.8%
(12.9%), while revenue was unchanged at DKK 6.9bn.
Gross profit
Gross profit was almost unchanged at DKK 1.6bn and
gross profit margin amounted to 22.9% (23.0%).
However, adjusted for one-off price effects the
underlying gross profit margin improved by approx. 0.7
percentage points.
External operating costs and staff costs
External operating costs and staff costs amounted to
15.6% (14.9%).
Several measures were initiated in H1, including cost
containment, process improvements and staff
reduction to reduce the impact of cost inflation. The
initiatives became effective in Q2 as total external
operating costs and staff costs declined compared to
Q1 2023 and were on a par with Q2 2022 despite the
impact of inflation.
EBITDA
EBITDA of DKK 494m (DKK 548m) was as expected.
When adjusted for one-off price effects, the underlying
EBITDA was on a par with H1 2022 corresponding to
an unchanged underlying EBITDA margin of 6.8%.
The results of the individual markets are shown on
page 26.
Financials
Net financials amounted to DKK -40m (DKK -13m) and
were negatively affected by increased debt and
interest rate.
Earnings before tax
Earnings before tax were down to DKK 290m (DKK
410m) as H1 2022 was positively impacted by one-off
price effects of DKK 80m.
Net profit
Net profit came to DKK 222m (DKK 315m).
Cash flow
Net working capital calculated as an average of the
previous four quarters amounted to 16.2% (12.3%) of
revenue. Net working capital at the end of H1 2023
amounted to 16.3% (14.1%) down from the level seen
in Q1 2023.
Cash flow from operating activities totalled DKK 179m
(DKK -212m). Changes in inventories had an impact of
DKK -57m (DKK -159m). The inventory increase is due
to strong growth within our strategic focus area
Climate & Energy. In total, Climate & Energy products
increased the inventory by more than DKK 200m in H1
2023.
Changes in receivables had a DKK -125m (DKK -495m)
impact on cash flow affected by a lower growth level in
June 2023, while changes in non-interest-bearing
liabilities affected cash flow by DKK 3m (DKK -37m).
Total cash flow from investing activities amounted to
DKK -216m (DKK -174m). The acquisition of
ThermoNova in H1 2023, see note 3.1, had an impact
of DKK -111m. In H1 2022, the investment in the
expansion and upgrade of our central warehouse in
Denmark affected cash flow by DKK -98m, while the
acquisition of Højager Belysning A/S had an impact of
DKK -24m.
Cash flow from financing activities amounted to DKK
133m (DKK 4m), mainly affected by dividend
distributions of DKK -329m (DKK -658m) and by the
change in current interest-bearing debt of DKK 381m
(DKK 723m).
Financial review - continued
As a result, total cash flow amounted to DKK 96m
(DKK -382m).
Net interest-bearing liabilities amounted to DKK
1,558m (DKK 1,122m).
As at 30 June 2023, gearing was 1.4 (1.1) times
EBITDA. Calculated as an average, our gearing was 1.2
(0.5) times EBITDA. Our gearing target is 1.5-3.0 times
EBITDA.
As at 30 June 2023, Solar had undrawn credit facilities
of DKK 864m (DKK 85m).
Invested capital
Invested capital for the Solar Group totalled DKK
3,342m (DKK 2,675m). ROIC amounted to 20.5%
(25.5%).
Activities with a Solar equity interest of less than 50%
and activities attributable to non-controlling interests
are not included in the ROIC calculation. Invested
capital only includes operating assets and liabilities.
Key risks and mitigation
The commercial and financial risks relating to our
activities are detailed in Solar’s 2022 Annual Report.
No additional material risks have been identified but
we continue to monitor the situation closely.
10Solar A/S
Q2 2023
Positive growth for our
Industry and Trade segments in Q2
Installation
Our Installation segment covers the installation of
electrical, heating and plumbing products.
Installation revenue for Q2 amounted to DKK 1,843m
(DKK 2,028m), which corresponds to overall adjusted
organic growth of around -3% (11%) related to the
electrical business and the heating and plumbing
business. Solar Norge saw positive growth for the
Installation segment.
Segment profit amounted to DKK 204m (DKK 244m),
which corresponds to a segment profit margin of 11.1%
(12.0%).
Industry
This segment covers the industry, offshore and marine
industries as well as utilities and infrastructure.
Industry also includes MAG45 and ThermoNova.
Industry revenue for Q2 amounted to DKK 1,119m (DKK
1,145m). This corresponds to overall adjusted organic
growth of around 1% (18%) related primarily to MRO.
MAG45 posted double-digit growth, while Solar
Danmark and Solar Nederland saw negative growth.
Segment profit amounted to DKK 188m (DKK 197m).
This corresponds to a segment profit margin of 16.8%
(17.2%).
Trade
Our Trade segment covers special sales and other
small areas. It also includes Solar Polaris and Højager
Belysning.
Revenue from Trade for Q2 increased to DKK 288m
(DKK 278m), which corresponds to overall adjusted
organic growth of around 8% (-2%) supported by
strong growth for Solar Danmark, Solar Nederland and
Solar Norge.
Segment profit amounted to DKK 34m (DKK 40m),
which corresponds to a segment profit margin of
11.8% (14.4%).
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 212m (DKK 214m) in Q2, which
cover income and costs related to joint group
functions and to costs, which cannot be reliably
allocated to the individual segment.
Detailed segment information is given on
page 24.
Our segments Q2
Segment profit Overview business segmentsSegment revenue
DKKmDKKm
Installation Installation
Industry Industry
Trade Trade
1,843 204
1,119 188
288 34
Q2
Revenue Segment profit Segment margin %
DKK million 2023 2022 2023 2022 2023 2022
Installation
1,843 2,028 204 244 11.1 12.0
Industry 1,119 1,145 188 197 16.8 17. 2
Trade
288 278 34 40 11.8 14.4
Solar Group 3,250 3,451 426 481 13.1 13.9
Q2 2023 Q2 2023
11Solar A/S
Q2 2023
Growth above 5% for our
Industry and Trade segments in H1
Installation
Installation revenue for H1 amounted to DKK 3,926m
(DKK 4,063m), which corresponds to overall adjusted
organic growth of around 0% (10%) related primarily
to the electrical business. Solar Norge, Solar
Nederland and Solar Sverige saw growth in the
segment.
Segment profit decreased to DKK 464m (DKK 500m),
which corresponds to a segment profit margin of
11.8% (12.3%).
Industry
Industry revenue for H1 increased to DKK 2,346m
(DKK 2,265m). This corresponds to overall adjusted
organic growth of around 6% (18%) related primarily
to MRO and Marine & Offshore. Solar Norge and
MAG45 posted double-digit growth.
Segment profit increased to DKK 407m (DKK 395m).
This corresponds to a segment profit margin of 17.3%
(17.4%).
Trade
Revenue from Trade amounted to DKK 634m (DKK
585m), which corresponds to overall adjusted organic
growth of around 8% (14%) primarily supported by
strong growth for Solar Norge and Solar Nederland.
Segment profit amounted to DKK 83m (DKK 80m),
which corresponds to a segment profit margin of
13.1% (13.7%).
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 460m (DKK 427m) in H1, which
cover income and costs related to joint group
functions and to costs, which cannot be reliably
allocated to the individual segment.
Detailed segment information is given on
page 25.
Our segments H1
Segment profit Overview business segmentsSegment revenue
DKKmDKKm
Installation Installation
Industry Industry
Trade Trade
3,926 464
2,346 407
634 83
H1
Revenue Segment profit Segment margin %
DKK million 2023 2022 2023 2022 2023 2022
Installation
3,926 4,063 464 500 11.8 12.3
Industry 2,346 2,265 407 395 17. 3 17.4
Trade
634 585 83 80 13.1 13.7
Solar Group 6,906 6,913 954 975 13.8 14.1
H1 2023 H1 2023
12Solar A/S
Q2 2023
We confirm our EBITDA guidance
of DKK 900m for 2023
General assumptions
Due to the heightened geopolitical and macro-
economic uncertainty (ref. page 28 of the annual
report 2022), our market outlook is characterised by
greater unpredictability.
As expected, cost and wage inflation increased during
H1. We expect this to continue for the remainder of
2023, albeit at a slower pace. We have implemented,
and will continue to implement, mitigating measures
including cost containment, process improvements and
the necessary staff reductions to ensure that the
expected impacts from cost and wage inflation remain
well below general price increases.
Over the past years, we have seen substantial price
increases from our suppliers. As expected, in H1 we
saw a slowdown in price increases to pre-Covid levels.
However, Solar has a proven track record of strong
price management.
Our 2023 guidance does not include any significant
restructuring costs.
Market outlook for Solar's segments
Overall, we expect markets to be stagnant or negative
in all countries throughout 2023. This will become
more evident in H2 as the roll-over effects from price
increases in 2022 wear off.
In general, we expect all segments to show weaker
growth in H2 compared to H1 2023.
Installation
We expect negative growth for the new construction
sector in 2023. The green transition will, however,
continue to deliver strong growth rates. We expect the
installation market to be stagnant or negative.
Industry
The guidance assumes that sales to Marine/Offshore
and MRO will continue to grow, albeit at a slower pace,
whereas we expect all other sub-segments to be
stagnant or negative.
Overall, we expect the industry market to be stagnant.
Trade
We expect modest growth for special sales in 2023,
which is the Trade segment's primary activity.
Financial outlook 2023
Revenue guidance
We confirm our revenue guidance of DKK 13,500m,
corresponding to unchanged adjusted organic growth
of approx. 0%.
In the wake of substantial price increases in 2022, we
delivered positive growth in H1, whereas we expect
negative growth in H2.
Adjusted for price increases, mainly roll-over effects
from 2022, we expect negative growth in all main
segments, which will only partly be offset by the
expected strong growth within Climate & Energy.
EBITDA guidance
We confirm our EBITDA guidance of approx. DKK
900m, which corresponds to an EBITDA margin of
approx. 6.7%.
We saw substantial positive one-off price effects in
2022. We expect this to normalise in 2023, which
means that no major one-off price effects are included
in our guidance.
* Including one-off income of DKK 112m
Guidance 2023
We confirm our revenue
guidance of DKK 13,500m
and EBITDA guidance of
DKK 900m.
EBITDA
DKKm
2019
2020
2021*
2022
One-offs
2022
538
637
911
1,175
-215
* including one-off income of DKK 112m
Inflation
catch-up
Guidance
2023
-60
900
13Solar A/S
Q2 2023
Share and webcast information
Total shareholder return
The total shareholder return of the Solar B share
during the holding period 1 January - 30 June 2023
was -11.3% including the DKK 45.00 ordinary dividend
that was paid out in March 2023.
Audio webcast
The presentation of the Quarterly Report Q2 2023 will
be conducted in English on 10 August 2023 at 11:00
CET. The presentation will be transmitted as an audio
webcast and will be available at:
Shareholder information
Solar’s share capital is divided
into nominal value DKK 90
million A shares and nominal
value DKK 646 million B
shares.
Financial calendar 2023
Quarterly Report Q2 2023
Quarterly Report Q3 2023
Shareholders according to section 55
of the Danish Companies Act
Share
Capital
Votes
The Fund of 20th December, Vejen,
Denmark
17.0% 60.5%
Nordea Funds Ltd., Helsinki, Finland 10.4% 5.0%
Shareholders with more than 5% of
shares or votes
The Solar share
www.solar.eu
10
Aug
02
Nov
A share B share
Shares 900,000 6,460,000
Nominel value (DKK) 100 100
Votes per share 10 1
Treasury shares - 56,813
Stock Exchange -
Nasdaq Copenhagen
Stock Exchange
Ticker symbol Solar B
Share price 30 June (DKK) 505 505
Market Cap 30 June (DKKm) 455 3,262
14
Solar A/S
Q2 2023
Contents
Q2 H1 Year
DKK million 2023 2022 2023 2022 2022
Revenue 3,250 3,451 6,906 6,913 13,863
Cost of sales -2,513 -2,661 -5,322 -5,323 -10,618
Gross profit 737 790 1,584 1,590 3,245
Other operating income and costs 0 0 1 1 0
External operating costs -98 -91 -217 -187 -386
Staff costs -419 -423 -861 -841 -1,656
Loss on trade receivables -6 -9 -13 -15 -28
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
Depreciation and write-down on property, plant and equipment -55 -49 -109 -94 -197
Earnings before interest, tax and amortisation (EBITA) 159 218 385 454 978
Amortisation and impairment of intangible assets -38 -16 -55 -30 -69
Earnings before interest and tax (EBIT) 121 202 330 424 909
Share of net profit from associates 0 -1 0 -1 -1
Financial income 16 12 31 22 53
Financial expenses -36 -20 -71 -35 -103
Earnings before tax (EBT) 101 193 290 410 858
Income tax -24 -46 -68 -95 -198
Net profit for the period 77 147 222 315 660
Attributable to:
Shareholders of Solar A/S 77 147 222 315 660
Non-controlling interests 0 0 0 0 0
Net profit for the period 77 147 222 315 660
Earnings in DKK per share outstanding (EPS) 10.54 20.13 30.40 43.13 90.37
Diluted earnings in DKK per share outstanding (EPS-D) 10.52 20.07 30.31 43.00 90.05
Statement of comprehensive income
Q2 H1 Year
DKK million 2023 2022 2023 2022 2022
Net profit for the period 77 147 222 315 660
Items that can be reclassified for the income statement
Foreign currency translation adjustments of foreign subsidiaries -27 -35 -63 -28 -51
Fair value adjustments of hedging instruments before tax 1 12 0 25 36
Tax on fair value adjustments of hedging instruments
Other income and costs recognised after tax -26 -26 -63 -9 -23
Total comprehensive income for the period
Attributable to:
Shareholders of Solar A/S 51 121 159 306 637
Non-controlling interests 0 0 0 0 0
Total comprehensive income for the period 51 121 159 306 637
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
Income statement Other comprehensive income
16Solar A/S
Q2 2023
Contents
Balance sheet
30.06 31.12
DKK million 2023 2022 2022
Equity and liabilities
Share capital 736 736 736
Reserves -244 -167 -181
Retained earnings 1,269 1,031 1,047
Proposed dividends for the financial year 0 0 329
Equity attributable to shareholders of Solar A/S 1,761 1,600 1,931
Non-controlling interests 49 0 0
Total equity 1,810 1,600 1,931
Interest-bearing liabilities 439 116 293
Lease liabilities 307 247 274
Provision for deferred tax 138 133 133
Other provisions 10 10 9
Non-current liabilities 894 506 709
Interest-bearing liabilities 953 754 556
Lease liabilities 121 104 117
Trade payables 1,933 2,092 1,902
Income tax payable 46 59 63
Other payables 536 545 604
Prepayments 4 2 2
Other provisions 20 17 17
Current liabilities 3,613 3,573 3,261
Liabilities 4,507 4,079 3,970
Total equity and liabilities 6,317 5,679 5,901
Consolidated
30.06 31.12
DKK million 2023 2022 2022
Assets
Intangible assets 328 183 173
Property, plant and equipment 967 961 963
Right-of-use assets 420 346 383
Deferred tax asset 9 12 9
Investments in associates 5 4 4
Other non-current assets 32 51 32
Non-current assets 1,761 1,557 1,564
Inventories 2,276 1,991 2,248
Trade receivables 1,922 1,957 1,859
Income tax receivable 22 4 13
Other receivables 15 14 9
Prepayments 59 57 42
Cash at bank and in hand 262 99 166
Current assets 4,556 4,122 4,337
Total assets 6,317 5,679 5,901
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
17Solar A/S
Q2 2023
Contents
Cash flow statement
Q2 H1 Year
DKK million 2023 2022 2023 2022 2022
Investing activities
Purchase of intangible assets -25 -14 -45 -30 -59
Purchase of property, plant and equipment -30 -61 -60 -120 -167
Disposal of property, plant and equipment 1 0 1 0 0
Acquisition of subsidiaries and activities* 0 0 -111 -24 -24
Acquisition of associates 0 0 -1 0 0
Other financial investments 0 0 0 0 1
Cash flow from investing activities -54 -75 -216 -174 -249
Financing activities
Repayment of non-current interest-bearing debt -3 -2 -5 -4 -12
Raising of non-current interest-bearing liabilities 150 0 150 0 185
Change in current interest-bearing debt -154 400 381 723 519
Instalment on lease liabilities -31 -28 -64 -57 -116
Dividends paid to shareholders of Solar A/S 0 -329 -329 -658 -658
Cash flow from financing activities -38 41 133 4 -82
Total cash flow -14 -44 96 -382 -315
Cash at bank and in hand at the beginning of period 276 143 166 481 481
Cash at bank and in hand at the end of period 262 99 262 99 166
*In the comparative figures a minor reclassification has been made.
Consolidated
Q2 H1 Year
DKK million 2023 2022 2023 2022 2022
Net profit of continuing operations for the period 77 147 222 315 660
Depreciation, write-down and amortisation 93 65 164 124 266
Changes to provisions and other adjustments -7 -9 -9 -12 -18
Share of net profit from associates 0 1 0 1 1
Financials, net 20 7 40 13 50
Income tax 24 46 68 95 198
Financial income, received 5 3 9 6 15
Financial expenses, settled -24 -7 -42 -14 -43
Income tax, settled -51 -20 -94 -49 -155
Cash flow before working capital changes 137 233 358 479 974
Working capital changes
Inventory changes 65 -173 -57 -159 -433
Receivables changes 179 36 -125 -495 -394
Non-interest-bearing liabilities changes -303 -106 3 -37 -131
Cash flow from operating activities 78 -10 179 -212 16
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
18Solar A/S
Q2 2023
Contents
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
Equity
attributable to
Shareholders
of Solar A/S
Non
controlling
interests Tot al equit y
2023
Equity as at 1 January 736 -9 -172 1,047 329 1,931 0 1,931
Foreign currency translation adjustments of foreign subsidiaries -63 -63 -63
Fair value adjustments of hedging instruments before tax 0 0 0
Tax on fair value adjustments 0 0 0
Net income recognised in equity via other comprehensive income
in the statement of comprehensive income
Net profit or loss for the period 222 222 222
Comprehensive income 0 0 -63 222 0 159 0 159
Distribution of dividends (DKK 45.00 per share) -329 -329 -329
Non-controlling interests on acquisition of subsidiary 0 49 49
Transactions with the owners 0 0 0 0 -329 -329 49 -280
0
Equity as at 30 June 736 -9 -235 1,269 0 1,761 49 1,810
1. Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.
Consolidated
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
19Solar A/S
Q2 2023
Contents
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
Equity
attributable to
Shareholders
of Solar A/S
Non
controlling
interests Tot al equit y
2022
Equity as at 1 January 736 -37 -121 1,045 329 1,952 0 1,952
Foreign currency translation adjustments of foreign subsidiaries -28 -28 -28
Fair value adjustments of hedging instruments before tax 25 25 25
Tax on fair value adjustments -6 -6 -6
Net income recognised in equity via other comprehensive income
in the statement of comprehensive income
Net profit or loss for the period 315 315 315
Comprehensive income 0 19 -28 315 0 306 0 306
Distribution of dividends (DKK 45.00 per share) -329 -329 -329
Distribution of extraordinary dividend (DKK 45 per share) -329 -329 -329
Transactions with the owners 0 0 0 -329 -329 -658 0 -658
Equity as at 30 June 736 -18 -149 1,031 0 1,600 0 1,600
1. Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
– Continued
20Solar A/S
Q2 2023
Contents
Basis for preparation
Section 1
01
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
1.1 Accounting policies
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
21Solar A/S
Q2 2023
Contents
Basis for preparation
01
1.1 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.
On 1 March 2023 Solar acquired 51% of
ThermoNova A/S, see note 3.1. Solar
recognises non-controlling interests in an
acquired entity either at fair value or at the
non-controlling interest’s proportionate
share of the acquired entity’s net identifiable
assets. This decision is made on an
acquisition-by-acquisition basis. For the
non-controlling interests in ThermoNova
A/S, Solar decided to recognise the
non-controlling interests at its proportionate
share of the acquired net identifiable assets.
The accounting items of subsidiaries are
included in full in the consolidated financial
statements. Non-controlling interests’ share
in the results and equity of subsidiaries is
included in the Group’s profit/loss and
equity but an allocation is shown separately
in the consolidated income statement,
statement of other comprehensive income,
balance sheet and statement of changes in
equity respectively.
Solar’s segment information is based on the
customers’ affiliation with the segments.
ThemoNova’s revenue and results are
included the operating segment Industry.
Apart from the above-mentioned addition
regarding non-controlling interests and the
effect of new IAS/IFRS standards
implemented during the period, the
accounting policies remain unchanged from
the Annual Report 2022, which contains a
full description of these on pages 50-52 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
An additional standard together with
amendments and improvements to existing
standards have become effective in the
period. 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 2023 and to be implemented in
coming accounting periods are not
expected to have significant impact on
Solar's accounting policies.
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
1.1 Accounting policies
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
22Solar A/S
Q2 2023
Contents
Income statement
Section 2
02
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
2.1 Segment information
Section 3 – Invested capital
Quarterly information
Statement
23Solar A/S
Q2 2023
Contents
Income statement
02
2.1 Segment information
Solar’s business segments are Installation, Industry and Trade and are based on the customers’
affiliation with the segments. Installation covers installation of electrical, and heating and plumbing
products, while Industry covers industry, offshore 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
DKK million Installation Industry Trade Total
Q2 2023
Revenue 1,843 1,119 288 3,250
Cost of sales -1,451 -831 -231 -2,513
Gross profit 392 288 57 737
Direct costs -69 -40 -10 -119
Earnings before indirect costs 323 248 47 618
Indirect costs -119 -60 -13 -192
Segment profit 204 188 34 426
Non-allocated costs -212
Earnings before interest, tax, depreciation and amortisation (EBITDA) 214
Depreciation and amortisation -93
Earnings before interest and tax (EBIT) 121
Financials, net incl. share of net profit from associates
and impairment on associates -20
Earnings before tax (EBT) 101
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 interest and tax (EBIT) 202
Financials, net incl. share of net profit from associates
and impairment on associates -9
Earnings before tax (EBT) 193
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
2.1 Segment information
Section 3 – Invested capital
Quarterly information
Statement
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.
24Solar A/S
Q2 2023
Contents
Income statement
02
2.1 Segment information – continued
DKK million Installation Industry Trade Total
H1 2023
Revenue 3,926 2,346 634 6,906
Cost of sales -3,076 -1,742 -504 -5,322
Gross profit 850 604 130 1,584
Direct costs -139 -76 -19 -234
Earnings before indirect costs 711 528 111 1,350
Indirect costs -247 -121 -28 -396
Segment profit 464 407 83 954
Non-allocated costs -460
Earnings before interest, tax, depreciation and amortisation (EBITDA) 494
Depreciation and amortisation -164
Earnings before interest and tax (EBIT) 330
Financials, net incl. share of net profit from associates
and impairment on associates -40
Earnings before tax (EBT) 290
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 500 395 80 975
Non-allocated costs -427
Earnings before interest, tax, depreciation and amortisation (EBITDA) 548
Depreciation and amortisation -124
Earnings before interest and tax (EBIT) 424
Financials, net incl. share of net profit from associates
and impairment on associates -14
Earnings before tax (EBT) 410
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
2.1 Segment information
Section 3 – Invested capital
Quarterly information
Statement
25Solar A/S
Q2 2023
Contents
Income statement
02
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
Q2 2023
Denmark 1,009 -5.9 78 7.7 872
Sweden 606 -3.6 38 6.3 221
Norway 500 9.0 39 7. 8 212
The Netherlands 795 -2.4 45 5.7 350
Poland 103 -3.2 2 1.9 47
Other markets 237 14.0 12 5.1 59
Solar Group 3,250 -1.0 214 6.6 1,761
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
H1 2023
Denmark 2,144 -3.5 177 8.3 872
Sweden 1,288 0.4 92 7.1 221
Norway 1,078 13.0 80 7. 4 212
The Netherlands 1,719 4.8 113 6.6 350
Poland 197 -10.9 4 2.0 47
Other markets 480 18.7 28 5.8 59
Solar Group 6,906 2.8 494 7. 2 1,761
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
Q2 2022
Denmark 1,082 9.5 100 9.2 74 0
Sweden 699 8.0 48 6.9 178
Norway 544 14.8 44 8.1 229
The Netherlands 814 18.3 59 7. 2 329
Poland 105 6.1 5 4.8 26
Other markets 207 18.7 11 5.3 55
Solar Group 3,451 12.4 267 7.7 1,557
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
H1 2022
Denmark 2,199 11.1 208 9.5 740
Sweden 1,386 10.2 101 7. 3 178
Norway 1,081 14.7 91 8.4 229
The Netherlands 1,627 14.3 115 7.1 329
Poland 220 24.2 12 5.5 26
Other markets 400 17. 5 21 5.3 55
Solar Group 6,913 12.9 548 7.9 1,557
Geographical information
Solar A/S primarily operates on the Danish, Swedish, Norwegian and Dutch markets. In the below
table, Other markets covers the remaining markets, which can be seen in the group companies
overview available on page 128 of Annual Report 2022 or on www.solar.eu. The below allocation has
been made based on the products’ place of sale.
2.1 Segment information – continued
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
2.1 Segment information
Section 3 – Invested capital
Quarterly information
Statement
26Solar A/S
Q2 2023
Contents
Invested capital
Section 3
03
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
3.1 Acquisition of subsidiaries
Quarterly information
Statement
27Solar A/S
Q2 2023
Contents
Invested capital
03
3.1 Acquisition of subsidiaries
On 1 March 2023, Solar A/S acquired 42.5%
of the shares of ThermoNova A/S, a Danish
manufacturer of high-capacity heat pumps.
The acquisition price is made up of a fixed
amount of DKK 111m and a variable amount,
which will total DKK 10m at the most.
The variable amount is related to the required
expansion of the production capacity.
Simultaneous Solar A/S subscribed new issued
shares for DKK 50m in ThermoNova A/S. In total
Solar A/S owns 51% of the shares.
The acquisition had an insignificant impact on
Solar's H1 2023 revenue and EBITDA and is
expected to have an insignificant impact on
Solar's full year 2023 revenue and EBITDA.
If the acquisition had occurred on 1 January
2023 the impact on Solar’s full year 2023
revenue and EBITDA would have been
insignificant as well.
Fair value at the date of acquisition (DKK million)
Customer-related intangible assets 42
Property, plant and equipment 1
Inventories 19
Trade receivables 12
Cash 53
Provision for deferred tax -9
Other non-current liabilities, non-interest-bearing -1
Current liabilities, non-interest-bearing -16
Net assets 101
Non-controlling interest of acquired new assets -49
Acquired net assets 52
Goodwill 122
Total consideration 174
Cash acquired -53
Deferred consideration -10
Net cash used in acquistion 111
Transaction costs related to the acquisition
totalled DKK 5m. These have been recognised
as part of external operating costs in the income
statement.
The fair value of the customer related assets
is based on the multi-period excess earnings-
method (MEEM). The fair value has been
calculated as the net present value (NPV) of the
future net cash-flow derived from the sale to the
customers minus a fair return on the assets used
to generate the sale. An interest rate of 10%
has been applied.
The main factors leading to the recognition of
goodwill are:
• the presence of certain intangible assets,
such as the assembled workforce and
knowhow, which do not qualify for separate
recognition
• expected synergies within sale which result in
Solar being prepared to pay a premium.
The goodwill recognised will not be deductible
for tax purposes.
For the non-controlling interests in ThermoNova
A/S, the group decided to recognise the non-
controlling interests at its proportionate share
of the acquired net identifiable assets. See page
22 for Solar’s accounting policies for business
combinations.
2022
On 1 March 2022, Solar acquired the shares in
the lighting company Højager Belysning A/S in
Denmark.
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
3.1 Acquisition of subsidiaries
Quarterly information
Statement
28Solar A/S
Q2 2023
Contents
Quarterly figures
Consolidated
Q1 Q2 Q3 Q4
Income statement (DKK million) 2023 2022 2023 2022 2022 2021 2022 2021
Revenue
3,656 3,462 3,250 3,451 3,266 2,872 3,684 3,380
Earnings before interest, tax, depreciation and amortisation (EBITDA)
280 281 214 267 301 237 326 259
Earnings before interest, tax and amortisation (EBITA)
226 236 159 218 250 192 274 212
Earnings before interest and tax (EBIT)
209 222 121 202 231 179 254 197
Financials, net
-20 -5 -20 -8 -6 -20 -31 -11
Earnings before tax (EBT)
189 217 101 193 225 159 223 184
Net profit or loss for the quarter
145 168 77 147 176 124 169 159
Balance sheet (DKK million)
Non-current assets
1,756 1,487 1,761 1,557 1,545 1,393 1,564 1,415
Current assets
4,858 4,088 4,556 4,122 4,392 3,724 4,337 3,890
Balance sheet total
6,614 5,575 6,317 5,679 5,937 5,117 5,901 5,305
Total equity
1,759 1,808 1,810 1,600 1,764 1,784 1,931 1,952
Non-current liabilities
737 453 894 506 491 446 709 435
Current liabilities
4,118 3,314 3,613 3,573 3,682 2,887 3,261 2,918
Interest-bearing liabilities, net
1,530 617 1,558 1,122 1,205 450 1 ,074 -37
Invested capital
3,263 2,377 3,342 2,675 2,923 2,185 2,978 1,866
Net working capital, end of period
2,347 1,791 2,265 1,856 2,186 1,568 2,205 1,259
Net working capital, average
2,149 1,475 2,251 1,619 1,773 1,325 2,010 1,363
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
30Solar A/S
Q2 2023
Contents
Quarterly figures
Q1 Q2 Q3 Q4
Cash flows (DKK million) 2023 2022 2023 2022 2022 2021 2022 2021
Cash flow from operating activities
101 -202 78 -10 -14 -38 242 558
Cash flow from investing activities
-162 -99 -54 -75 -37 -65 -38 -53
Cash flow from financing activities
171 -37 -38 41 66 77 -152 -250
Net investments in intangible assets
-20 -16 -25 -14 -12 -14 -17 -16
Net investments in property, plant and equipment
-30 -59 -29 -61 -25 -51 -22 -35
Acquisition and divestment of subsidiaries and operations, net
-111 -24 0 0 0 0 0 0
Financial ratios (% unless otherwise stated)
Revenue growth
5.6 15.2 -5.8 11.4 13.7 9.7 9.0 10.6
Organic growth
8.3 15.4 -2.2 11.7 14.0 8.8 10.9 9.1
Adjusted organic growth
6.7 13.6 -1.0 12.4 14.0 8.8 12.0 7.1
Gross profit margin
23.2 23.1 22.7 22.9 24.1 23.0 23.6 22.9
EBITDA margin
7.7 8.1 6.6 7.7 9.2 8.3 8.8 7.7
EBITA margin
6.2 6.8 4.9 6.3 7.7 6.7 7.4 6.3
EBIT margin
5.7 6.4 3.7 5.9 7.1 6.2 6.9 5.8
Net working capital (end of period NWC)/revenue (LTM)
16.7 14.0 16.3 14.1 16.1 13.0 15.9 10.2
Net working capital (average NWC )/revenue (LTM)
15.3 11.5 16.2 12.3 13.1 11.0 14.5 11.0
Gearing (interest-bearing liabilities,net/EBITDA), no. of times
1.3 0.6 1.4 1.1 1.1 0.5 0.9 0.0
Return on equity (ROE)
35.0 31.9 32.7 35.1 38.6 19.7 35.7 28.4
Return on invested capital (ROIC)
23.2 26.5 20.5 25.5 25.3 23.6 25.5 24.6
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)
5.7 7. 5 5.7 6.3 5.2 7. 6 5.7 7. 8
Equity ratio
25.9 32.4 27. 9 28.2 29.7 34.9 32.7 36.8
Consolidated – Continued
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
31Solar A/S
Q2 2023
Contents
Quarterly figures
Consolidated – Continued
Q1 Q2 Q3 Q4
Share ratios (DKK unless otherwise stated) 2023 2022 2023 2022 2022 2021 2022 2021
Earnings per share outstanding (EPS)
19.85 23.00 10.54 20.13 24.10 16.98 23.14 21.77
Intrinsic value per share outstanding
234.14 247. 5 6 241.13 219.08 241.54 244.28 264.41 267.28
Share price
553.54 749.1 9 506.42 597. 0 9 492.34 632.86 622.62 795.05
Share price/intrinsic value
2.36 3.03 2.10 2.73 2.04 2.59 2.35 2.97
Employees
Number of employees (FTE's), end of period
3,085 2,996 3,063 2,995 3,042 2,897 3,043 2,936
Average number of employees (FTE's)
3,042 2,932 3,058 2,956 2,992 2,890 3,019 2,908
Definitions
Adjusted organic growth Revenue growth adjusted for enterprises acquired and divested and any exchange rate changes. In addition 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 effective tax rate.
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
Quarterly information
Statement
32Solar A/S
Q2 2023
Contents
Executive Board
Board of Directors
Statement by the Executive Board
and the Board of Directors
Consolidated financial statements Q2
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital
Q2 Quarterly information
Statement
34Solar A/S
Q2 2023
Denmark
Tel. +45 7 9 30 00 00
CVR no. 15908416
LEI 21380031XTLI9X5MTY92
http://www.linkedin.com/company/solar-as
ESEF data
Name of reporting entity or other means of identification Solar A/S
Domicile of entity Denmark
Legal form of entity A/S
Country of incorporation Denmark
Address of entity's registered office Industrivej V est 43, 6600 V ejen
Principal place of business Europe
Description of nature of entity's operations and principal business Sourcing and services company
Name of parent entity Solar A/S
Name of ultimate parent of group Fund of 20th December