Q1 2024
Report
Solar A/S
Industrivej Vest 43
6600 Vejen
Denmark
CVR no. 15 90 84 16
We are a leading
European sourcing and
services company.
Who we are
Instaaton
Industry Trade
Electrical
Concepts
Heating & Plumbing
Other brands
Climate & Energy
23
%
17
%
77
%
Denmark
Sweden
Norway
Poland
Other
32
15
3
7
%
%
%
%
%
Groups
Brands
Share of 2023 revenue
Share of 2023 revenue
Share of 2023 revenue
ProductsSegments
Markets
The Netherands
24
%
19
56
%
35
%
9
%
73
%
10
%
2Solar A/S
Q1 2024
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 7
Our segments 10
Guidance 2024 11
Shareholder information 12
Consolidated financial statements Q1
Statement of comprehensive income 14
Balance sheet 15
Cash flow statement 16
Statement of changes in equity 17
Notes 19
Section 1 – Basis for preparation 19
Section 2 – Income statement 21
Section 3 – Invested capital 24
Quarterly information 26
Statements 30
Solution sales
Solution sales is one of three focus areas in our new
Solve strategy. With Solution sales we will move
closer to decision-makers, supporting project delivery
with best-in-class solutions.
Page 5
3Solar A/S
Q1 2024
Q1 Financial messages
• Q1 EBITDA was on par with our expectations.
• Net working capital at the end of the quarter
continued to fall.
• We confirm our 2024 EBITDA guidance of DKK 600m.
Financial
highlights
Q1 Year
Consolidated (DKK million) 2024 2023 2023
Revenue 3,030 3,656 13,031
Earnings before interest, tax, depreciation and amortisation (EBITDA)
88 280 871
Earnings before interest, tax and amortisation (EBITA) 26 226 648
Earnings before interest and tax (EBIT) 10 209 558
Earnings before tax (EBT) -6 189 468
Net profit for the period -6 145 348
Balance sheet total 6,082 6,614 6,112
Total equity 1,726 1,759 1,982
Interest-bearing liabilities, net 1,450 1,530 1,157
Cash flow from operating activities 7 101 855
Net investments in property, plant and equipment -23 -30 -169
Employees
Number of employees (FTE's), end of period 2,932 3,085 2,990
Average number of employees (FTE's) 2,997 3,042 3,036
Financial ratios (%, unless otherwise stated)
Adjusted organic growth -15.4 6.7 -2.6
Gross profit margin 20.7 23.2 22.5
EBITDA margin 2.9 7.7 6.7
EBITA margin 0.9 6.2 5.0
Net working capital (end of period NWC)/revenue (LTM) 15.1 16.7 14.6
Gearing (net interest-bearing liabilities/EBITDA), no. of times 2.1 1.3 1.3
Return on equity (ROE) 10.9 35.0 18.0
Equity ratio 27.6 25.9 31.6
Share ratios (DKK)
Earnings per share outstanding (EPS) -0.68 19.85 47.51
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s
“Recommendations & Financial Ratios”.
4Solar A/S
Q1 2024
Solutions sales – one step
closer to our customers
Solution sales, a well-known approach
Our focus remains on having strong partnerships
with our customers. With Solution sales we will move
closer to decision-makers, supporting project delivery
with best-in-class solutions. This approach will be
enabled through the expertise of our specialists using
a 360-degree project perspective, ensuring that
customer requirements are met.
Solution sales covers a diverse range of customers
including architects, advisers, builders etc. Customers
who are specialists in their fields but who can
nonetheless benefit greatly from Solar’s competences.
Solution sales currently operates within the areas of
Tools, Fastening & Consumables, Light, Climate &
Energy, Security, Data & Communication, and Cables.
Solution sales has been established as a separate
organisational unit outside the Installation, Industry
and Trade verticals. Thereby, Solution sales has the
ability to drive customer support with its specialist
competences across verticals while increasing Solar's
share of wallet.
With Solution sales we aim to increase our share of
revenue to 20%. Denmark is the guiding star, with
Solution sales already having reached this benchmark
Solution sales is one of
three focus areas in our
new Solve strategy.
Business update
Increase market share by delivering Solution
sales where we aim to increase the share of
wallet with existing customers and attract new
B2B customers.
Increase profitability by focusing on Concept
strength which also will enhance our position in
the value chain.
Maximise the growth potential in Climate & Energy.
With the newly established Solar Industrial Solutions
we offer Climate & Energy turnkey solutions for
industry customers.
Our ambition for the three strategic focus
areas under our 2024-26 strategy are:
Concept strength
Solution sales
Climate & energy
5Solar A/S
Q1 2024
Business update
as a starting point. Norway, Sweden and the Netherlands
will therefore be our main focus, with progress having
already been made in selected areas. Solution sales will
continue to develop in these countries while leveraging
learnings from Denmark to provide additional benefits.
Our approach
Moving closer to our customers enables us to a better
understanding of their needs and to identify the right
solutions. By combining a 360-degree view with specialist
knowledge across each area we can develop tailor-made
approaches involving a significant share of Concept
materials, ensuring high value solutions for projects.
A newly-built padel center offers a glimpse of this
approach in action – an example of a project where Solar
would previously be considered for light and cables amid
a much larger project scope. By moving closer to the
customer, however, we can help identify additional
solutions for light control, digital door locks, fire alarms,
solar panels, heat pumps as well as cameras for
streaming future tournaments. This way we enable the
customer to define product requirements, ensuring a
successful outcome, while also increasing our share of
wallet.
Stronger together
Moving even closer towards our customers underpins our
firm belief that “we are stronger together”. Our customers
will benefit from access to Solar product specialists
during project decision-making – ensuring that require-
ments are delivered with best-in-class solutions.
6Solar A/S
Q1 2024
Q1 EBITDA was on par
with expectations
Q1 2024
Revenue
Our guidance for 2024 assumed that all segments
would show negative growth in 2024, with recovery
gaining ground at the end of the year. Recovery is
now potentially taking root in Denmark.
As expected, all segments showed negative growth
in Q1 2024. Revenue declined to DKK 3.0bn
(DKK 3.7bn). Adjusted organic growth amounted to
-15.4% (6.7%) with March performing slightly better
than January and February.
Adjusted organic growth reflects an adjustment for
the early timing of Easter when compared to Q1 2023.
However, the effect from the working days leading up
to Easter, which traditionally see lower business
activities, has not been adjusted in the organic growth.
Revenue from Climate & Energy, a strategic focus
area, remained at a low level in Q1 and amounted to
around DKK 199m (DKK 389m).
Heat pump sales to the residential market remain at a
low level. Furthermore, sales of high-capacity
ThermoNova heat pumps proved disappointing in Q1
2024. However, during the first four months of 2024
ThermoNova concluded new orders with a total value
of approx. DKK 25m for delivery in H2 2024. The
potential order pipeline exceeded DKK 250m so
despite the current low sales level we remain confident
of the potential.
The Industry segment delivered adjusted organic
growth of approx. -10%, with MAG45 delivering
positive adjusted organic growth of more than 6%.
The Installation and Trade segments delivered adjusted
organic growth of approx. -17% and -22%
respectively. Around 50% of the decrease in the
Installation segment can be accounted for by lowered
heat pump sales.
Our assessment is unchanged in that we will maintain
market share within Installation and Industry in all
material aspects.
Gross profit
Our guidance for 2024 referred to the loss in gross
profit margin in several product categories during the
latter part of 2023. This is despite the positive impact
from Concepts and our expectation that this
development will continue for the rest of 2024.
As expected, we saw a loss in gross profit margin
across several product categories in Q1.
In line with expectations revenue
amounted to DKK 3.0bn and
EBITDA to DKK 88m. We
confirm our 2024 EBITDA
guidance of DKK 600m.
(Data shown in brackets relate to the corresponding
period in 2023)
Gross profit margin
Percentage
DKKm
EBITDA
Q1
20.7
23.2
22.7
21.5
22.4
Q2 Q3 Q4
24
23
22
21
20
19
2024
2023
Q1
88
Q2 Q3 Q4
350
300
250
200
150
100
50
0
2024 2023
280
214
187
190
Financial review
7Solar A/S
Q1 2024
Financial review
Gross profit margin at group level amounted to 20.7%
(23.2%).
The decline in gross profit margin adjusted for one-off
price effects in Q1 2023 amounted to 1.8 percentage
points. A substantial part of this is due to a less
favourable mix, but also continued suppressed gross
margins among other relating to Climate & Energy
products, coupled with increased costs to improve our
delivery service.
External operating costs
and staff costs
In 2023 and in Q1 2024, several measures were
initiated to reduce the impact of cost inflation and the
expected negative market developments.
Consequently, costs in Q1 2024 include restructuring
costs of approx. DKK 25m. Despite this, external
operating costs and staff costs declined by DKK 28m.
When adjusted for restructuring costs, external
operating costs and staff costs amounted to 16.8%
(15.3%) of revenue.
Loss on trade receivables
As we conduct efficient credit management, including
in the currently unpredictable market conditions, our
loss on trade receivables decreased to DKK 5m
(DKK 7m).
EBITDA
EBITDA of DKK 88m (DKK 280m) was on par with
expectations and we confirm our 2024 EBITDA
guidance of DKK 600m. When adjusted for one-off
price effects in Q1 2023, the underlying EBITDA
margin amounted to 2.9% (7.0%).
The results from the individual markets are given on
page 23.
Depreciation and write-down
Depreciation and write-down on property, plant and
equipment increased to DKK 62m (DKK 54m) as the
result of the warehouse extensions and automatisation
measures in Solar Danmark and Solar Nederland now
being depreciated.
Earnings before tax
As reduced costs did not compensate for decreased
revenue and gross profit margin, earnings before tax
amounted to DKK -6m (DKK 189m).
Net profit
Net profit amounted to DKK -6m (DKK 145m).
Cash flows
Net working capital as an average of the previous four
quarters amounted to 16.7% (15.3%) of revenue. Net
working capital at the end of Q1 2024 decreased to
15.1% (16.7%) thereby continuing the positive trend
which began in 2023.
Cash flow from operating activities totalled DKK 7m
(DKK 101m).
We succeeded in reducing inventories through
inventory changes, which had a cash flow impact of
DKK 112m (DKK -122m).
Changes in receivables impacted cash flow by DKK
-222m (DKK -304m) mainly due to the normal
seasonal factors.
Changes in non-interest-bearing liabilities had a cash
flow impact of DKK 87m (DKK 306m).
Total cash flow from investing activities amounted to
DKK -57m (DKK -162m). In Q1 2023, DKK -111m
related to the acquisition of ThermoNova.
Cash flow from financing activities amounted to DKK
-57m (DKK 171m). This was affected mainly by
changes in current interest-bearing liabilities and by
dividend distribution of DKK 219m (DKK 329m).
As a result, total cash flow amounted to DKK -107m
(DKK 110m). Net interest-bearing liabilities were down
at DKK 1,450m (DKK 1,530m).
By the end of Q1 2024, gearing was 2.1 (1.3) times
EBITDA. Our gearing target was 1.0-3.0 times EBITDA.
At the end of Q1 2024, Solar had undrawn credit
facilities of DKK 743m (DKK 715m).
Invested capital
Invested capital for the Solar Group totalled DKK
3,157m (DKK 3,263m). ROIC amounted to 8.5%
(23.2%). 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 includes operating assets and
liabilities only.
Key risks and mitigation
The commercial and financial risks in respect of our
activities are detailed in Solar’s 2023 Annual Report.
No additional material risks have been identified and
we continue to monitor the situation closely.
8Solar A/S
Q1 2024
Developments after the end of
the reporting period
In Q2 2023, the Danish market was among the first to
be affected by negative market developments. Solar
Danmark is now showing the first signs of a slow
recovery. In April 2024, Solar Danmark’s growth almost
edged into positive territory. As a result of Solar
Danmark winning more projects compared to the same
period last year, we expect this development to
continue. Regardless, organic growth at group level
remained negative as expected.
In April 2024, Solar Sverige embarked on the process
of selling its warehouses in Örebro and Halmstad. The
transaction is expected to be finalised by the time the
new warehouse in Kumla comes on stream in late 2026
(ref. page 4 of the 2023 Annual Report). The projected
financial impact from the sale is a capital gain of
approx. DKK 100m, which will be recognised in the
income statement when the transaction is finalised.
Financial review
9Solar A/S
Q1 2024
As expected, market developments
negatively impacted all our main segments
Installation
Our Installation segment covers the installation of
electrical, heating and plumbing products.
Installation revenue for Q1 amounted to DKK 1,679m
(DKK 2,083m), which corresponds to overall adjusted
organic growth of around -17% (4%) for the electrical
as well as the heating and plumbing business. All main
markets saw negative growth.
Segment profit amounted to DKK 131m (DKK 260m),
which corresponds to a segment profit margin of 7.8%
(12.5%). This was substantially impacted by Climate &
Energy’s declining margin.
Industry
This segment covers the industry, offshore and marine
industries as well as utilities and infrastructure.
Industry also encompasses MAG45 and ThermoNova.
Industry revenue for Q1 amounted to DKK 1,086m
(DKK 1,227m). This corresponds to overall adjusted
organic growth of around -10% (11%). MAG45 saw
positive growth while main markets posted negative
growth.
Segment profit amounted to DKK 164m (DKK 219m).
This corresponds to a segment profit margin of 15.1%
(17.8%).
Trade
Our Trade segment covers special sales and other
specialist areas. It also includes Solar Polaris and
Højager Belysning.
Revenue from Trade for Q1 amounted to DKK 265m
(DKK 346m), which corresponds to overall adjusted
organic growth of around -22% (9%). Solar Danmark
posted positive growth while other main markets saw
negative growth.
Segment profit amounted to DKK 29m (DKK 49m),
which corresponds to a segment profit margin of
10.9% (14.2%).
Segment profit includes items that are directly
attributable to the individual segment and items
that can be reliably allocated to the it.
Segment profit does not include non-allocated
costs of DKK 236m (DKK 248m) in Q1, which
cover income and costs related to joint group
functions and to costs that cannot be reliably
allocated to it.
Detailed segment information is given
on page 22.
Our segments
Segment profit Overview business segmentsSegment revenue
DKKmDKKm
Installation Installation
Industry Industry
Trade Trade
1,679 131
1,086 164
265 29
Q1
Revenue Segment profit Segment margin %
DKK million 2024 2023 2024 2023 2024 2023
Installation
1,679 2,083 131 260 7.8 12.5
Industry 1,086 1,227 164 219 15.1 17. 8
Trade
265 346 29 49 10.9 14.2
Solar Group 3,030 3,656 324 528 10.7 14.4
Q1 2024 Q1 2024
10Solar A/S
Q1 2024
We confirm our EBITDA guidance
of DKK 600m for 2024
Assumptions
Our 2024 guidance is still impacted by an
unpredictable market outlook due to heightened
geopolitical and macroeconomic tension (ref. page 28
of the 2023 Annual Report). However, we expect a
recovery in the macroeconomic situation towards the
end of the year.
Revenue
We expect markets to be negative in all countries in
2024, with Denmark almost edging into positive
territory. In general, we also expect all segments to
show negative growth in 2024, but to show signs of
recovery by the end of the year.
Installation
We expect negative growth for the new construction
sector in 2024. The green transition is expected to
deliver slightly better growth rates despite
disappointing developments in 2023 and at the start of
2024. We expect the installation market to be negative.
Industry
Our guidance assumes stagnant sales to Marine/
Offshore, whereas we expect all other sub-segments to
be negative. Overall, we expect the industry market to
be negative.
Trade
We expect negative growth in special sales in 2024,
which is the Trade segment's primary activity.
Gross profit margin
During the latter part of 2023, we saw a loss in gross
profit margin across several product categories despite
a positive impact from Concepts. We expect this
development to continue for the remainder of 2024.
In addition, we have elevated our delivery service level
which has led to an increase in freight costs.
Consequently, we expect a lower gross profit
margin for 2024.
Costs
As expected, cost and wage inflation increased during
2023. We anticipate this trend to persist throughout H1
2024 whereafter it is expected to wear off. We have
implemented, and will continue to implement,
mitigating measures, including cost containment,
process improvements and the necessary staff
reductions.
Our 2024 guidance includes restructuring costs of
approx. DKK 35m.
In 2022, Solar Nederland entered into an agreement
on the sale of the warehouse in Duiven. Finalisation of
the transaction and transfer of the property to the
purchaser is expected before the end of 2024.
The financial impact of the sale is an expected capital
gain of approx. DKK 30m, which is included in the
guidance.
Financial outlook 2024
Revenue guidance
We confirm our revenue of DKK 12.5bn, corresponding
to an organic growth of -5%.
EBITDA guidance
We confirm our expectations of an EBITDA of
DKK 600m.
The guidance includes non-recurring income of around
DKK 30m due to the sale of our warehouse in Duiven
and restructuring costs of approx. DKK 35m.
In addition, we expect to spend DKK 20m in our
strategic focus areas - Climate & Energy, Concept
strength and Solution sales.
Guidance 2024
We confirm our revenue
guidance of DKK 12,500m
and EBITDA guidance of
DKK 600m.
11Solar A/S
Q1 2024
Share and webcast information
Total shareholder return
The total shareholder return of the Solar B share
during the holding period 1 January 2024 - 31 March
2024 was -22.0% including the DKK 30.00 ordinary
dividend that was paid out in March 2024.
Audio webcast
The presentation of the Quarterly Report Q1 2024 will
be conducted in English on 2 May 2024 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 2024
Quarterly Report Q1 2024
Quarterly Report Q2 2024
Quarterly Report Q3 2024
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
02
May
08
Aug
31
Oct
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 31 March (DKK) 332.50 332.50
Market Cap 31 March (DKKm) 299 2,148
12
Solar A/S
Q1 2024
Contents
Q1 Year
DKK million 2024 2023 2023
Revenue 3,030 3,656 13,031
Cost of sales -2,404 -2,809 -10,101
Gross profit 626 847 2,930
Other operating income and costs 0 1 0
External operating costs -107 -119 -399
Staff costs -426 -442 -1,643
Loss on trade receivables -5 -7 -17
Earnings before interest, tax, depreciation and amortisation (EBITDA) 88 280 871
Depreciation and write-down on property, plant and equipment -62 -54 -223
Earnings before interest, tax and amortisation (EBITA) 26 226 648
Amortisation and impairment of intangible assets -16 -17 -90
Earnings before interest and tax (EBIT) 10 209 558
Financial income 8 15 65
Financial expenses -24 -35 -155
Earnings before tax (EBT) -6 189 468
Income tax 0 -44 -120
Net profit for the period -6 145 348
Attributable to:
Shareholders of Solar A/S -5 145 347
Non-controlling interests -1 0 1
Net profit for the period -6 145 348
Earnings in DKK per share outstanding (EPS) -0.68 19.85 47.51
Diluted earnings in DKK per share outstanding (EPS-D) -0.68 19.81 47.34
Statement of comprehensive income
Q1 Year
DKK million 2024 2023 2023
Net profit for the period -6 145 348
Other income and costs recognised:
Items that can be reclassified for the income statement
Foreign currency translation adjustments of foreign subsidiaries -33 -36 -13
Fair value adjustments of hedging instruments before tax 2 -1 -5
Tax on fair value adjustments of hedging instruments
Other comprehensive income -31 -37 -17
Total comprehensive income for the period
-37 108 331
Attributable to:
Shareholders of Solar A/S -36 108 330
Non-controlling interests -1 0 1
Total comprehensive income for the period -37 108 331
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
Income statement Other comprehensive income
14Solar A/S
Q1 2024
Contents
Balance sheet
31.03 31.12
DKK million 2024 2023 2023
Equity and liabilities
Share capital 736 736 736
Reserves -229 -218 -198
Retained earnings 1,170 1,192 1,175
Proposed dividends for the financial year 0 0 219
Equity attributable to shareholders of Solar A/S 1,677 1,710 1,932
Non-controlling interests 49 49 50
Total equity 1,726 1,759 1,982
Interest-bearing liabilities 432 291 434
Lease liabilities 303 293 320
Provision for deferred tax 145 142 143
Other provisions 11 11 11
Non-current liabilities 891 737 908
Interest-bearing liabilities 925 1,101 714
Lease liabilities 124 121 130
Trade payables 1,863 2,149 1,770
Income tax payable 35 71 54
Other payables 486 651 520
Prepayments 9 4 13
Other provisions 23 21 21
Current liabilities 3,465 4,118 3,222
Liabilities 4,356 4,855 4,130
Total equity and liabilities 6,082 6,614 6,112
Consolidated
31.03 31.12
DKK million 2024 2023 2023
Assets
Intangible assets 366 340 348
Property, plant and equipment 1,057 963 1,066
Right-of-use assets 415 407 440
Deferred tax asset 7 9 7
Investments in associates 4 5 4
Other non-current assets 28 32 28
Non-current assets 1,877 1,756 1,893
Inventories 1,893 2,362 2,029
Trade receivables 1,846 2,134 1,648
Income tax receivable 52 24 25
Other receivables 20 11 17
Prepayments 60 51 59
Cash at bank and in hand 334 276 441
Current assets 4,205 4,858 4,219
Total assets 6,082 6,614 6,112
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
15Solar A/S
Q1 2024
Contents
Cash flow statement
Q1 Year
DKK million 2024 2023 2023
Investing activities
Purchase of intangible assets -34 -20 -102
Purchase of property, plant and equipment -23 -30 -170
Disposal of property, plant and equipment 0 0 1
Aquisition of subsidiaries and activities 0 -111 -133
Acquisition of associates 0 -1 -1
Cash flow from investing activities -57 -162 -405
Financing activities
Repayment of non-current interest-bearing debt -2 -2 -9
Raising of non-current interest-bearing liabilities 0 0 150
Change in current interest-bearing debt 198 535 149
Instalment on lease liabilities -34 -33 -136
Dividends paid to shareholders of Solar A/S -219 -329 -329
Cash flow from financing activities -57 171 -175
Total cash flow -107 110 275
Cash at bank and in hand at the beginning of period 441 166 166
Cash at bank and in hand at the end of period 334 276 441
Consolidated
Q1 Year
DKK million 2024 2023 2023
Net profit of continuing operations for the period -6 145 348
Depreciation, write-down and amortisation 78 71 313
Changes to provisions and other adjustments 0 -2 5
Financials, net 16 20 90
Income tax 0 44 120
Financial income, received 5 4 30
Financial expenses, settled -20 -18 -106
Income tax, settled -43 -43 -138
Cash flow before working capital changes 30 221 662
Working capital changes
Inventory changes 112 -122 230
Receivables changes -222 -304 182
Non-interest-bearing liabilities changes 87 306 -219
Cash flow from operating activities 7 101 855
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
16Solar A/S
Q1 2024
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 Total equity
2024
Equity as at 1 January 736 -13 -185 1,175 219 1,932 50 1,982
Foreign currency translation adjustments of foreign subsidiaries -33 -33 -33
Fair value adjustments of hedging instruments before tax 2 2 2
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 -5 -5 -1 -6
Comprehensive income 0 2 -33 -5 0 -36 -1 -37
Distribution of dividends (DKK 30.00 per share) -219 -219 -219
Non-controlling interests on acquisition of subsidiary 0 0
Transactions with the owners 0 0 0 0 -219 -219 0 -219
Equity as at 31 March 736 -11 -218 1,170 0 1,677 49 1,726
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 Q1
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
Q1 Quarterly information
Statements
17Solar A/S
Q1 2024
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 Total equity
2023
Equity as at 1 January 736 -9 -172 1,047 329 1,931 0 1,931
Foreign currency translation adjustments of foreign subsidiaries -36 -36 -36
Fair value adjustments of hedging instruments before tax -1 -1 -1
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 145 145 0 145
Comprehensive income 0 -1 -36 145 0 108 0 108
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
Equity as at 31 March 736 -10 -208 1,192 0 1,710 49 1,759
1. Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.
– Continued
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
18Solar A/S
Q1 2024
Contents
Basis for preparation
Section 1
01
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
19Solar A/S
Q1 2024
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.
Apart from the effect of new IAS/IFRS
standards implemented during the period,
the accounting policies remain unchanged
from the Annual Report 2023, 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
IASB has issued a number of amendments
and improvements to existing standards
which 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 31
March 2024 and to be implemented in
coming accounting periods are not
expected to have significant impact on
Solar's accounting policies.
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
20Solar A/S
Q1 2024
Contents
Income statement
Section 2
02
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
21Solar A/S
Q1 2024
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.
DKK million Installation Industry Trade Total
Q1 2024
Revenue 1,679 1,086 265 3,030
Cost of sales -1,368 -820 -216 -2,404
Gross profit 311 266 49 626
Direct costs -67 -41 -8 -116
Earnings before indirect costs 244 225 41 510
Indirect costs -113 -61 -12 -186
Segment profit 131 164 29 324
Non-allocated costs -236
Earnings before interest, tax, depreciation and amortisation (EBITDA) 88
Depreciation and amortisation -78
Earnings before interest and tax (EBIT) 10
Financials, net incl. share of net profit from associates
and impairment on associates -16
Earnings before tax (EBT) -6
DKK million Installation Industry Trade Total
Q1 2023
Revenue 2,083 1,227 346 3,656
Cost of sales -1,625 -911 -273 -2,809
Gross profit 458 316 73 847
Direct costs -70 -36 -9 -115
Earnings before indirect costs 388 280 64 732
Indirect costs -128 -61 -15 -204
Segment profit 260 219 49 528
Non-allocated costs -248
Earnings before interest, tax, depreciation and amortisation (EBITDA) 280
Depreciation and amortisation -71
Earnings before interest and tax (EBIT) 209
Financials, net incl. share of net profit from associates
and impairment on associates -20
Earnings before tax (EBT) 189
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.
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
22Solar A/S
Q1 2024
Contents
Income statement
02
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
Q1 2024
Denmark 971 -10.9 35 3.6 896
Sweden 539 -20.6 17 3.2 210
Norway 437 -19.0 11 2.5 211
The Netherlands 726 -21.6 10 1.4 417
Poland 98 -4.5 0 0.0 49
Other markets 259 6.8 15 5.8 94
Solar Group 3,030 -15.4 88 2.9 1,877
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
Q1 2023
Denmark 1,135 -1.2 99 8.7 895
Sweden 682 4.4 54 7.9 215
Norway 578 17.1 41 7.1 207
The Netherlands 924 11.9 68 7.4 339
Poland 94 -17. 8 2 2.1 45
Other markets 243 23.9 16 6.6 55
Solar Group 3,656 6.7 280 7.7 1,756
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 127 of Annual Report 2023 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 Q1
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
Q1 Quarterly information
Statements
23Solar A/S
Q1 2024
Contents
Invested capital
Section 3
03
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
24Solar A/S
Q1 2024
Contents
Invested capital
03
3.1 Acquisition of subsidiaries
Q1 2023
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 2023 revenue and EBITDA.
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
Acquisition price at net debt-free basis 111
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.
Transaction costs related to the acquisition
totalled DKK 5m. These have been recognised
as part of external operating costs in the income
statement.
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
25Solar A/S
Q1 2024
Contents
Quarterly figures
Consolidated
Q1 Q2 Q3 Q4
Income statement (DKK million) 2024 2023 2023 2022 2023 2022 2023 2022
Revenue
3,030 3,656 3,250 3,451 2,965 3,266 3,160 3,684
Earnings before interest, tax, depreciation and amortisation (EBITDA)
88 280 214 267 187 301 190 326
Earnings before interest, tax and amortisation (EBITA)
26 226 159 218 132 250 131 274
Earnings before interest and tax (EBIT)
10 209 121 202 114 231 114 254
Financials, net
-16 -20 -20 -8 -21 -6 -29 -31
Earnings before tax (EBT)
-6 189 101 193 93 225 85 223
Net profit or loss for the quarter
-6 145 77 147 71 176 55 169
Balance sheet (DKK million)
Non-current assets
1,877 1,756 1,761 1,557 1,809 1,545 1,893 1,564
Current assets
4,205 4,858 4,556 4,122 4,456 4,392 4,219 4,337
Balance sheet total
6,082 6,614 6,317 5,679 6,265 5,937 6,112 5,901
Total equity
1,726 1,759 1,810 1,600 1,910 1,764 1,982 1,931
Non-current liabilities
891 737 894 506 877 491 908 709
Current liabilities
3,465 4,118 3,613 3,573 3,478 3,682 3,222 3,261
Interest-bearing liabilities, net
1,450 1,530 1,558 1,122 1,480 1,205 1,157 1,074
Invested capital
3,157 3,263 3,342 2,675 3,366 2,923 3,120 2,978
Net working capital, end of period
1,876 2,347 2,265 1,856 2,253 2,186 1,907 2,205
Net working capital, average
2,075 2,149 2,251 1,619 2,268 1,773 2,193 2,010
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
27Solar A/S
Q1 2024
Contents
Quarterly figures
Q1 Q2 Q3 Q4
Cash flows (DKK million) 2024 2023 2023 2022 2023 2022 2023 2022
Cash flow from operating activities
7 101 78 -10 190 -14 486 242
Cash flow from investing activities
-57 -162 -54 -75 -102 -37 -87 -38
Cash flow from financing activities
-57 171 -38 41 -109 66 -199 -152
Net investments in intangible assets
-34 -20 -25 -14 -26 -12 -31 -17
Net investments in property, plant and equipment
-23 -30 -29 -61 -76 -25 -34 -22
Acquisition and divestment of subsidiaries and operations, net
0 -111 0 0 0 0 -22 0
Financial ratios (% unless otherwise stated)
Revenue growth
-17.1 5.6 -5.8 11.4 -9.2 13.7 -14.2 9.0
Organic growth
-17.1 8.3 -2.2 11.7 -6.2 14.0 -12.5 10.9
Organic growth adjusted for number of working days
-15.4 6.7 -1.0 12.4 -4.7 14.0 -11.1 12.0
Gross profit margin
20.7 23.2 22.7 22.9 21.5 24.1 22.4 23.6
EBITDA margin
2.9 7.7 6.6 7.7 6.3 9.2 6.0 8.8
EBITA margin
0.9 6.2 4.9 6.3 4.5 7.7 4.1 7.4
EBIT margin
0.3 5.7 3.7 5.9 3.8 7.1 3.6 6.9
Net working capital (end of period NWC)/revenue (LTM)
15.1 16.7 16.3 14.1 16.6 16.1 14.6 15.9
Net working capital (average NWC )/revenue (LTM)
16.7 15.3 16.2 12.3 16.7 13.1 16.8 14.5
Gearing (interest-bearing liabilities,net/EBITDA), no. of times
2.1 1.3 1.4 1.1 1.5 1.1 1.3 0.9
Return on equity (ROE)
10.9 35.0 32.7 35.1 25.5 38.6 18.3 35.7
Return on invested capital (ROIC)
8.5 23.2 20.5 25.5 16.9 25.3 13.2 25.5
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)
8.6 5.7 5.7 6.3 6.2 5.2 7.0 5.7
Equity ratio
27.6 25.9 27.9 28.2 29.7 29.7 31.6 32.7
Consolidated – Continued
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
28Solar A/S
Q1 2024
Contents
Quarterly figures
Consolidated – Continued
Q1 Q2 Q3 Q4
Share ratios (DKK unless otherwise stated) 2024 2023 2023 2022 2023 2022 2023 2022
Earnings per share outstanding (EPS)
-0.68 19.85 10.54 20.13 9.72 24.10 7.39 23.14
Intrinsic value per share outstanding
229.63 234.14 241.13 219.08 254.82 241.54 264.54 264.41
Share price
331.37 553.54 506.42 597.09 476.27 492.34 465.71 622.62
Share price/intrinsic value
1.44 2.36 2.10 2.73 1.87 2.04 1.76 2.35
Employees
Number of employees (FTE's), end of period
2,932 3,085 3,063 2,995 3,005 3,042 2,990 3,043
Average number of employees (FTE's)
Definitions
Organic growth Revenue growth adjusted for enterprises acquired and sold off and any exchange rate changes. No adjustments have been made for number of working days.
Organic growth adjusted for
number of working days
Revenue growth adjusted for enterprises acquired and sold off and any exchange rate changes and number of working days.
Net working capital Inventories and trade receivables less trade payables.
Return on Invested Capital (ROIC) Return on invested capital calculated on the basis of EBIT exclusive impairment on goodwill less tax calculated using the effective tax rate adjusted for one-off effects, if any.
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
29Solar A/S
Q1 2024
Contents
Executive Board
Board of Directors
Statement by the Executive Board
and the Board of Directors
Consolidated financial statements Q1
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
Q1 Quarterly information
Statements
31Solar A/S
Q1 2024
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 activities Sourcing and ser vices company
Name of parent entity Solar A/S
Name of ultimate parent of group F und of 20th December