Solar A/S
Industrivej Vest 43
6600 Vejen
Denmark
CVR no. 15 90 84 16
Q2 2024
Report
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
Q2 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 6
Our segments 9
Guidance 2024 11
Shareholder information 12
Consolidated financial statements Q2
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 26
Q2 Quarterly information 28
Statements 32
Climate & Energy
The EU green deal is one of the main drivers
of the transition towards climate neutrality, a
transition that is supported by Solar Industrial
Solutions.
Page 5
3Solar A/S
Q2 2024
Q2 financial messages
• Q2 EBITDA was on par with expectations.
• Net working capital continued to improve.
• We reconfirm our 2024 EBITDA guidance of
DKK 600m.
Financial
highlights
Q2 H1 Year
Consolidated (DKK million) 2024 2023 2024 2023 2023
Revenue 3,100 3,250 6,130 6,906 13,031
Earnings before interest, tax, depreciation and amortisation (EBITDA)
137 214 225 494 871
Earnings before interest, tax and amortisation (EBITA) 77 159 103 385 648
Earnings before interest and tax (EBIT) 56 121 66 330 558
Earnings before tax (EBT) 34 101 28 290 468
Net profit for the period 25 77 19 222 348
Balance sheet total 6,219 6,317 6,219 6,317 6,112
Total equity 1,770 1,810 1,770 1,810 1,982
Interest-bearing liabilities, net 1,334 1,558 1,334 1,558 1,157
Cash flow from operating activities 202 78 209 179 855
Net investments in property, plant and equipment -19 -29 -42 -59 -169
Employees
Number of employees (FTE's), end of period 2,889 3,063 2,889 3,063 2,990
Average number of employees (FTE's) 2,954 3,058 2,954 3,058 3,036
Financial ratios (%, unless otherwise stated)
Organic growth adjusted for number of working days -7. 8 -1.0 -11.2 2.8 -2.6
Gross profit margin 20.4 22.7 20.5 22.9 22.5
EBITDA margin 4.4 6.6 3.7 7. 2 6.7
EBITA margin 2.5 4.9 1.7 5.6 5.0
Net working capital (end of period NWC)/revenue (LTM) 14.0 16.3 14.0 16.3 14.6
Gearing (net interest-bearing liabilities/EBITDA), no. of times 2.2 1.4 2.2 1.4 1.3
Return on equity (ROE) 8.6 32.7 8.6 32.7 18.0
Equity ratio 27.7 27.9 27.7 27. 9 31.6
Share ratios (DKK)
Earnings per share outstanding (EPS) 3.70 10.54 3.01 30.40 47. 51
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s
“Recommendations & Financial Ratios”.
4Solar A/S
Q2 2024
Climate & Energy –
opportunities ahead
There is a growing focus on CO2 emissions reduction
by our customers resulting in an increasing interest in
our customisable high-capacity heat pumps and
reflected in our order pipeline exceeding DKK 300m.
Solar Industrial Solutions
To meet the increasing interest, we have set up Solar
Industrial Solutions - a dedicated sales unit that works
with design and sale of energy-efficient solutions.
Solar Industrial Solutions supports our customers by
providing expert knowledge within areas such as
project management, sales, planning, recording,
implementation, technical support, subsidy applica-
tions and authority processing. To summarise, Solar
Industrial Solutions helps our customers throughout
this process, including with technical support.
Extending our services
While retaining our focus on ventilation, batteries,
EV chargers, solar panels and heat pumps for the
residential market, Solar Industrial Solutions extends
our services to also include industry customers.
The high-capacity heat pumps are developed and
manufactured by our latest acquisition, ThermoNova.
They deliver a new and different type of modular heat
The EU green deal is one of
the main drivers of the
transition towards climate
neutrality, a transition that is
supported by Solar Industrial
Solutions.
Business update
pump, enabling large and energy-efficient heating
solutions, especially for industry, warehouses,
production facilities and larger office buildings.
Supporting the journey
Thanks to our market leading product, expert
knowledge and project management capabilities we
can help customers achieve significant emission
reductions, by changing their heating solution to a
high-capacity heat pump while generating a high
return on investment.
We are active in both the residential housing and
industry sectors, with access to more than ten million
customers across Denmark, the Netherlands, Norway
and Sweden.
Solar Industrial Solutions is a central element of our
Solve strategy where we aim to maximise the growth
potential in Climate & Energy.
Find more information about Solar Industrial Solutions
and customer cases here:
www.solar.eu/climate-energy/industrial-solutions
5Solar A/S
Q2 2024
Q2 EBITDA was on par
with expectations
Q2 2024
Revenue
Our guidance for 2024 assumed that all segments
would show negative growth, with recovery gaining
ground by the end of the year. Recovery is taking root
in Denmark. Solar Danmark is showing the first signs of
a slow recovery with adjusted organic growth of -1.9%
in Q2 against -10.5% in Q1 2024.
As expected, all segments showed negative growth in
Q2 2024. Revenue declined to DKK 3.1bn (DKK
3.3bn). Adjusted organic growth amounted to
-7.8% (-1.0%), up from -15% in Q1 2024.
Revenue from Climate & Energy, a strategic focus
area, remained at a low level in Q2, amounting to
around DKK 234m (DKK 375m). But compared to Q1
2024, this is an improvement of almost 18%.
Heat pump sales remain at a low level. However, as the
order pipeline is still increasing and now exceeds DKK
300m, we remain confident of the potential for
high-capacity ThermoNova heat pumps despite the
current low sales level.
The Industry segment delivered adjusted organic
growth of approx. -2%, with MAG45 delivering
positive adjusted organic growth of more than 8%.
The Installation and Trade segments delivered adjusted
organic growth of approx. -11% and -14% respectively.
Around 50% of the decrease in the Installation segment
can be accounted for by a reduction in heat pump sales.
Our assessment remains that, in all material respects,
we will maintain our market share within the Installation
and Industry segments.
Gross profit
Our guidance for 2024 was based on loss in gross
profit margin across several product categories during
the latter part of 2023, despite the positive impact
from Concepts. Our expectation was that this
development would continue for the rest of 2024.
As expected, we saw a loss in gross profit margin
across several product categories in Q2.
Gross profit margin at group level amounted to 20.4%
(22.7%).
The decline in gross profit margin adjusted for one-off
price effects in Q2 2023 amounted to 2.0 percentage
points. A substantial part of this is due to a less
favourable mix and continued suppressed gross
margins, notably relating to Climate & Energy
products, as well as increased costs to improve our
delivery service.
Revenue amounted to DKK 3.1bn
and EBITDA to DKK 137m, which
is in line with our expectations.
We reconfirm our 2024 EBITDA
guidance of DKK 600m.
(Data shown in brackets relate to the corresponding
period in 2023)
Gross profit margin
Percentage
DKKm
EBITDA
Financial review
2024
2023
0
50
100
150
200
250
300
Q4
Q3Q2Q1
280
214
187
190
88
137
2024
2023
19
20
21
22
23
24
Q4Q3Q2Q1
23.2
22.7
21.5
22.4
20.7
20.4
6Solar A/S
Q2 2024
Financial review
External operating costs and staff costs
We continually initiate measures to mitigate the impact
of cost inflation and the expected market slowdown.
These measures proved effective and in Q2 2024,
operating costs and staff costs declined by DKK 29m
to 15.7% (15.9%) of revenue.
EBITDA
EBITDA of DKK 137m (DKK 214m) was on par with
expectations and we reconfirm our 2024 EBITDA
guidance of DKK 600m. When adjusted for one-off
price effects in Q2 2023, the underlying EBITDA
margin amounted to 4.4% (6.3%).
The results from the individual markets are given on
page 24.
Amortisation and impairment of intangible assets
Amortisation and impairment of intangible assets
amounted to DKK -21m (DKK -38m).
Earnings before tax
As reduced costs did not fully compensate for
decreased revenue and gross profit margin, earnings
before tax amounted to DKK 34m (DKK 101m).
Net profit
Net profit came to DKK 25m (DKK 77m).
H1 2024
Revenue
As expected, we saw a decline in growth in H1 but with
Q2 performing better than Q1. Adjusted organic growth
at group level amounted to -11.2% (2.8%) while
revenue declined to DKK 6.1 bn (DKK 6.9bn).
Gross profit
As expected, we saw a loss in gross profit margin
across several product categories in H1.
Gross profit margin at group level amounted to 20.5%
(22.9%). The decline in gross profit margin adjusted
for one-off price effects in H1 2023 amounted to 1.9
percentage points. A substantial part of this is due to a
less favourable mix and continued suppressed gross
margins, notably relating to Climate & Energy
products, as well as increased costs to improve our
delivery service.
External operating costs and staff costs
We continually initiate measures to mitigate the impact
of cost inflation and the expected market slowdown.
Consequently, costs in H1 2024 include restructuring
costs of approx. DKK 27m. Despite this, external
operating costs and staff costs declined by DKK 57m.
When adjusted for restructuring costs, external
operating costs and staff costs amounted to 16.2%
(15.6%) 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 11m (DKK 13m).
EBITDA
EBITDA of DKK 225m (DKK 494m) was as expected.
When adjusted for one-off price effects in H1 2023, the
underlying EBITDA margin amounted to 3.7% (6.7%).
The results of the individual markets are shown on
page 25.
Depreciation and write-down
Depreciation and write-down on property, plant and
equipment increased to DKK 122m (DKK 109m) as the
result of the depreciation of the warehouse extensions
and automatisation measures in Solar Danmark and
Solar Nederland.
Amortisation and impairment of intangible assets
Amortisation and impairment of intangible assets
amounted to DKK -37m (DKK -55m). In H1 2023, an
impairment loss on Højager Belysning of DKK 20m was
recognised.
Earnings before tax
As reduced costs did not fully compensate for
decreased revenue and gross profit margin, earnings
before tax amounted to DKK 28m (DKK 290m).
Net profit
Net profit came to DKK 19m (DKK 222m).
Cash flow
Net working capital as an average of the previous four
quarters amounted to 15.8% (16.2%) of revenue. Net
working capital at the end of H1 2024 decreased to
14.0% (16.3%) thereby continuing the positive trend
which began in 2023.
Cash flow from operating activities totalled DKK 209m
(DKK 179m).
We succeeded in reducing inventories through
inventory changes, which had a cash flow impact of
DKK 107m (DKK -57m). Changes in receivables
impacted cash flow by DKK -279m (DKK -125m) while
changes in non-interest-bearing liabilities had a cash
flow impact of DKK 278m (DKK 3m).
Total cash flow from investing activities amounted
to DKK -127m (DKK -216m). The acquisition of
ThermoNova impacted by DKK -10m (DKK -111m) and
all deferred payments regarding the acquisition have
now been paid.
Cash flow from financing activities amounted to
DKK -142m (DKK 133m). This was mainly affected
by changes in current interest-bearing liabilities, by
dividend distribution of DKK 219m (DKK 329m), and
by the raising of non-current interest-bearing debt of
DKK 150m in H1 2023.
7Solar A/S
Q2 2024
As a result, total cash flow amounted to DKK -60m
(DKK 96m). Net interest-bearing liabilities were down
at DKK 1,334m (DKK 1,558m).
By the end of H1 2024, gearing was 2.2 (1.4) times
EBITDA. Our gearing target is 1.0-3.0 times EBITDA.
At the end of H1 2024, Solar had undrawn credit
facilities of DKK 697m (DKK 864m).
Invested capital
Invested capital for the Solar Group totalled DKK
3,085m (DKK 3,342m). ROIC amounted to 6.6%
(20.5%). 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 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.
Financial review
8Solar A/S
Q2 2024
Q2 saw improvement compared to Q1
despite continued market slowdown
Installation
Our Installation segment covers the installation of
electrical, heating and plumbing products.
Installation revenue for Q2 amounted to DKK 1,707m
(DKK 1,843m), which corresponds to overall adjusted
organic growth of around -11% (-3%) for the electrical
as well as the heating and plumbing business. Solar
Polska saw positive growth while main markets saw
negative growth.
Segment profit amounted to DKK 138m (DKK 204m),
which corresponds to a segment profit margin of 8.1%
(11.1%). This was substantially impacted by Climate &
Energy’s declining margin.
Industry
This segment covers MRO, OEM, offshore and marine
industries as well as utilities and infrastructure.
Industry also encompasses MAG45 and ThermoNova.
Industry revenue for Q2 amounted to DKK 1,130m
(DKK 1,119m). This corresponds to overall adjusted
organic growth of around -2% (1%). Solar Norge and
MAG45 saw positive growth while other main markets
posted negative growth.
Segment profit amounted to DKK 173m (DKK 188m).
This corresponds to a segment profit margin of 15.3%
(16.8%).
Trade
Our Trade segment covers special sales and other
specialist areas. It also includes Solar Polaris and
Højager Belysning.
Revenue from Trade for Q2 amounted to DKK 263m
(DKK 288m), which corresponds to overall adjusted
organic growth of around -14% (8%). Solar Danmark
posted positive growth while other main markets saw
negative growth.
Segment profit amounted to DKK 29m (DKK 34m),
which corresponds to a segment profit margin of
11.0% (11.8%).
Segment profit includes items that are directly
attributable to the individual segment and items
that can be reliably allocated to the individual
segments.
Segment profit does not include non-allocated
costs of DKK 203m (DKK 212m) in Q2, which
cover income and costs related to joint group
functions and to costs that cannot be reliably
allocated to the individual segments.
Detailed segment information is given on
page 22.
Our segments Q2
Segment profit Overview business segmentsSegment revenue
DKKmDKKm
Installation Installation
Industry Industry
Trade Trade
1,707 138
1,130 173
263 29
Q2
Revenue Segment profit Segment margin %
DKK million 2024 2023 2024 2023 2024 2023
Installation
1,707 1,843 138 204 8.1 11.1
Industry 1,130 1,119 173 188 15.3 16.8
Trade
263 288 29 34 11.0 11.8
Solar Group 3,100 3,250 340 426 11.0 13.1
Q2 2024 Q2 2024
9Solar A/S
Q2 2024
Our segments H1
Segment profit Overview business segmentsSegment revenue
DKKmDKKm
Installation Installation
Industry Industry
Trade Trade
3,386 269
2,216 337
528 58
H1
Revenue Segment profit Segment margin %
DKK million 2024 2023 2024 2023 2024 2023
Installation
3,386 3,926 269 464 7.9 11.8
Industry 2,216 2,346 337 407 15.2 17. 3
Trade
528 634 58 83 11.0 13.1
Solar Group 6,130 6,906 664 954 10.8 13.8
H1 2024 H1 2024
As expected, market developments impacted
negatively on all our main segments
Segment profit includes items that are directly
attributable to the individual segment and items
that can be reliably allocated to the individual
segments.
Segment profit does not include non-allocated
costs of DKK 439m (DKK 460m) in H1, which
cover income and costs related to joint group
functions and to costs that cannot be reliably
allocated to the individual segments.
Detailed segment information is given on
page 23.
Installation
Installation revenue for H1 amounted to DKK 3,386m
(DKK 3,926m), which corresponds to overall adjusted
organic growth of around -14% (0%) for the electrical
as well as the heating and plumbing business. Solar
Polska saw positive growth while other main markets
saw negative growth.
Segment profit amounted to DKK 269m (DKK 464m),
which corresponds to a segment profit margin of 7.9%
(11.8%). This was substantially impacted by Climate &
Energy’s declining margin.
Industry
Industry revenue for H1 amounted to DKK 2,216m
(DKK 2,346m). This corresponds to overall adjusted
organic growth of around -6% (6%). MAG45 saw
positive growth while main markets posted negative
growth.
Segment profit amounted to DKK 337m (DKK 407m).
This corresponds to a segment profit margin of 15.2%
(17.3%).
Trade
Revenue from Trade for H1 amounted to DKK 528m
(DKK 634m), which corresponds to overall adjusted
organic growth of around -18% (8%). Solar Danmark
posted positive growth while other main markets saw
negative growth.
Segment profit amounted to DKK 58m (DKK 83m),
which corresponds to a segment profit margin of
11.0% (13.1%).
10Solar A/S
Q2 2024
We reconfirm our EBITDA
guidance of DKK 600m for 2024
Assumptions
Our 2024 guidance is still impacted by an
unpredictable market outlook due to macroeconomic
uncertainties (ref. page 28 of the annual report 2023).
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 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 and in H1 2024, 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 and in H1 2024. We anticipate this trend to wear
off in H2 2024.
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 reconfirm our revenue of DKK 12.5bn,
corresponding to an organic growth of -5%.
EBITDA guidance
We reconfirm 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 reconfirm our revenue
guidance of DKK 12,500m
and EBITDA guidance of
DKK 600m.
11Solar A/S
Q2 2024
Share and webcast information
Total shareholder return
The total shareholder return of the Solar B share
during the holding period 1 January 2024 - 30 June
2024 was -24.1% including the DKK 30.00 ordinary
dividend that was paid out in March 2024.
Audio webcast
The presentation of the Quarterly Report Q2 2024 will
be conducted in English on 8 August 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 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
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 30 June (DKK) 323 323
Market Cap 30 June (DKKm) 291 2,087
12
Solar A/S
Q2 2024
Contents
Q2
H1 Year
DKK million 2024 2023 2024 2023 2023
Revenue 3,100 3,250 6,130 6,906 13,031
Cost of sales -2,469 -2,513 -4,873 -5,322 -10,101
Gross profit 631 737 1,257 1,584 2,930
Other operating income and costs 0 0 0 1 0
External operating costs -91 -98 -198 -217 -399
Staff costs -397 -419 -823 -861 -1,643
Loss on trade receivables -6 -6 -11 -13 -17
Earnings before interest, tax, depreciation and amortisation
(EBITDA) 137 214 225 494 871
Depreciation and write-down on property, plant and
equipment -60 -55 -122 -109 -223
Earnings before interest, tax and amortisation (EBITA) 77 159 103 385 648
Amortisation and impairment of intangible assets -21 -38 -37 -55 -90
Earnings before interest and tax (EBIT) 56 121 66 330 558
Financial income 10 16 18 31 65
Financial expenses -32 -36 -56 -71 -155
Earnings before tax (EBT) 34 101 28 290 468
Income tax -9 -24 -9 -68 -120
Net profit for the period 25 77 19 222 348
Attributable to:
Shareholders of Solar A/S 27 77 22 222 347
Non-controlling interests -2 0 -3 0 1
Net profit for the period 25 77 19 222 348
Earnings in DKK per share outstanding (EPS) 3.70 10.54 3.01 30.40 47.51
Diluted earnings in DKK per share outstanding (EPS-D) 3.69 10.52 3.01 30.31 47.34
Statement of comprehensive income
Q2 H1 Year
DKK million 2024 2023 2024 2023 2023
Net profit for the period 25 77 19 222 348
Other income and costs recognised:
Items that can be reclassified for the income statement
Foreign currency translation adjustments of foreign
subsidiaries 18 -27 -15 -63 -13
Fair value adjustments of hedging instruments before tax 2 1 4 0 -5
Tax on fair value adjustments of hedging instruments
-1 0 -1 0 1
Other income and costs recognised after tax 19 -26 -12 -63 -17
Total comprehensive income for the period
Attributable to:
Shareholders of Solar A/S 46 51 10 159 330
Non-controlling interests -2 0 -3 0 1
Total comprehensive income for the period 44 51 7 159 331
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
Statements
Income statement Other comprehensive income
14Solar A/S
Q2 2024
Contents
Balance sheet
30.06 31.12
DKK million 2024 2023 2023
Equity and liabilities
Share capital 736 736 736
Reserves -210 -244 -198
Retained earnings 1,197 1,269 1,175
Proposed dividends for the financial year 0 0 219
Equity attributable to shareholders of Solar A/S 1,723 1,761 1,932
Non-controlling interests 47 49 50
Total equity 1,770 1,810 1,982
Interest-bearing liabilities 430 439 434
Lease liabilities 290 307 320
Provision for deferred tax 150 138 143
Other provisions 11 10 11
Non-current liabilities 881 894 908
Interest-bearing liabilities 871 953 714
Lease liabilities 124 121 130
Trade payables 2,086 1,933 1,770
Income tax payable 6 46 54
Other payables 458 536 520
Prepayments 9 4 13
Other provisions 14 20 21
Current liabilities 3,568 3,613 3,222
Liabilities 4,449 4,507 4,130
Total equity and liabilities 6,219 6,317 6,112
Consolidated
30.06 31.12
DKK million 2024 2023 2023
Assets
Intangible assets 386 328 348
Property, plant and equipment 1,054 967 1,066
Right-of-use assets 401 420 440
Deferred tax asset 7 9 7
Investments in associates 4 5 4
Other non-current assets 28 32 28
Non-current assets 1,880 1,761 1,893
Inventories 1,910 2,276 2,029
Trade receivables 1,896 1,922 1,648
Income tax receivable 54 22 25
Other receivables 26 15 17
Prepayments 72 59 59
Cash at bank and in hand 381 262 441
Current assets 4,339 4,556 4,219
Total assets 6,219 6,317 6,112
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
Statements
15Solar A/S
Q2 2024
Contents
Cash flow statement
Q2 H1 Year
DKK million 2024 2023 2024 2023 2023
Investing activities
Purchase of intangible assets -41 -25 -75 -45 -102
Purchase of property, plant and equipment -19 -30 -42 -60 -170
Disposal of property, plant and equipment 0 1 0 1 1
Acquisition of subsidaries and activities -10 0 -10 -111 -133
Acquisition of associates 0 0 0 -1 -1
Cash flow from investing activities -70 -54 -127 -216 -405
Financing activities
Repayment of non-current interest-bearing debt -3 -3 -5 -5 -9
Raising of non-current interest-bearing liabilities 0 150 0 150 150
Change in current interest-bearing debt -47 -154 151 381 149
Instalment on lease liabilities -35 -31 -69 -64 -136
Dividends paid to shareholders of Solar A/S 0 0 -219 -329 -329
Cash flow from financing activities -85 -38 -142 133 -175
Total cash flow 47 -14 -60 96 275
Cash at bank and in hand at the beginning of period 334 276 441 166 166
Cash at bank and in hand at the end of period 381 262 381 262 441
Consolidated
Q2 H1 Year
DKK million 2024 2023 2024 2023 2023
Net profit for the period 25 77 19 222 348
Depreciation, write-down and amortisation 81 93 159 164 313
Changes to provisions and other adjustments -6 -7 -6 -9 5
Financials, net 22 20 38 40 90
Income tax 9 24 9 68 120
Financial income, received 6 5 11 9 30
Financial expenses, settled -28 -24 -48 -42 -106
Income tax, settled -36 -51 -79 -94 -138
Cash flow before working capital changes 73 137 103 358 662
Working capital changes
Inventory changes -5 65 107 -57 230
Receivables changes -57 179 -279 -125 182
Non-interest-bearing liabilities changes 191 -303 278 3 -219
Cash flow from operating activities 202 78 209 179 855
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
Statements
16Solar A/S
Q2 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 -15 -15 -15
Fair value adjustments of hedging instruments before tax 4 4 4
Tax on fair value adjustments -1 -1 -1
Net income recognised in equity via other comprehensive income in the statement of
comprehensive income
Net profit or loss for the period 22 22 -3 19
Comprehensive income 0 3 -15 22 0 10 -3 7
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 30 June 736 -10 -200 1,197 0 1,723 47 1,770
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
Q2 Quarterly information
Statements
17Solar A/S
Q2 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 -63 -63 -63
Fair value adjustments of hedging instruments before tax 0 0
Tax on fair value adjustments 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 0 222
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
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.
– 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
Q2 Quarterly information
Statements
18Solar A/S
Q2 2024
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
Q2 Quarterly information
Statements
19Solar A/S
Q2 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
IASB has issued two new standards: IFRS 18
Presentation and Disclosure in Financial
Statements and IFRS 19 Subsidiaries
without Public Accountability: Disclosures.
IFRS 18 and IFRS 19 are effective from
annual reporting periods beginning on or
after 1 January 2027.
IFRS 18 Presentation and Disclosure in
Financial Statements replaces IAS 1. IFRS
18 entails changes in the presentation of
primarily the income statement and
disclosures on management-defined
performance measures (MPMs) in the notes
to the financial statements.
IFRS 19 Subsidiaries without Public
Accountability: Disclosures has no 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
Q2 Quarterly information
Statements
20Solar A/S
Q2 2024
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
Q2 Quarterly information
Statements
21Solar A/S
Q2 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. Segment income and costs include any items that are directly
DKK million Installation Industry Trade Tot al
Q2 2024
Revenue 1,707 1,130 263 3,100
Cost of sales -1,394 -862 -213 -2,469
Gross profit 313 268 50 631
Direct costs -69 -39 -10 -118
Earnings before indirect costs 244 229 40 513
Indirect costs -106 -56 -11 -173
Segment profit 138 173 29 340
Non-allocated costs -203
Earnings before interest, tax, depreciation and amortisation (EBITDA) 137
Depreciation and amortisation -81
Earnings before interst and tax (EBIT) 56
Financials, net incl. share of net profit from associates and
impairment on associates -22
Earnings before tax (EBT) 34
DKK million Installation Industry Trade Tot al
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 interst and tax (EBIT) 121
Financials, net incl. share of net profit from associates and
impairment on associates -20
Earnings before tax (EBT) 101
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 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
Q2 Quarterly information
Statements
22Solar A/S
Q2 2024
Contents
Income statement
02
2.1 Segment information - continued
DKK million Installation Industry Trade Tot al
H1 2024
Revenue 3,386 2,216 528 6,130
Cost of sales -2,762 -1,682 -429 -4,873
Gross profit 624 534 99 1,257
Direct costs -136 -80 -18 -234
Earnings before indirect costs 488 454 81 1,023
Indirect costs -219 -117 -23 -359
Segment profit or loss 269 337 58 664
Non-allocated costs -439
Earnings before interest, tax, depreciation and amortisation (EBITDA) 225
Depreciation and amortisation -159
Earnings before interst and tax (EBIT) 66
Financials, net -38
Earnings before tax (EBT) 28
DKK million Installation Industry Trade Tot al
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 or loss 464 407 83 954
Non-allocated costs -460
Earnings before interest, tax, depreciation and amortisation (EBITDA) 494
Depreciation and amortisation -164
Earnings before interst and tax (EBIT) 330
Financials, net -40
Earnings before tax (EBT) 290
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
Q2 Quarterly information
Statements
23Solar A/S
Q2 2024
Contents
Income statement
02
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
Q2 2024
Denmark 1,046 -1.5 75 7. 2 903
Sweden 527 -14.3 15 2.8 207
Norway 477 -8.8 18 3.8 211
The Netherlands 687 -15.0 18 2.6 414
Poland 101 -7.3 -1 -1.0 49
Other markets 262 8.3 12 4.6 96
Solar Group 3,100 -7.8 137 4.4 1,880
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
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 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
Q2 Quarterly information
Statements
24Solar A/S
Q2 2024
Contents
Income statement
02
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
H1 2024
Denmark 2,017 -6.2 110 5.5 903
Sweden 1,066 -16.9 32 3.0 207
Norway 914 -13.3 29 3.2 211
The Netherlands 1,413 -17. 9 28 2.0 414
Poland 199 -5.2 -1 -0.5 49
Other markets 521 8.5 27 5.2 96
Solar Group 6,130 -11.2 225 3.7 1,880
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
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
Q2 Quarterly information
Statements
25Solar A/S
Q2 2024
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
Q2 Quarterly information
Statements
26Solar A/S
Q2 2024
Contents
Invested capital
03
3.1 Acquisition of subsidiaries
H1 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 of DKK 10m.
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. 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 -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 on net debt-free basis 111
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
Q2 Quarterly information
Statements
Transaction costs related to the acquisition totalled
DKK 5m. These have been recognised as part of
external operating costs in the income statement.
27Solar A/S
Q2 2024
Contents
Quarterly figures
Consolidated
Q1 Q2 Q3 Q4
Income statement (DKK million) 2024 2023 2024 2023 2023 2022 2023 2022
Revenue
3,030 3,656 3,100 3,250 2,965 3,266 3,160 3,684
Earnings before interest, tax, depreciation and amortisation (EBITDA)
88 280 137 214 187 301 190 326
Earnings before interest, tax and amortisation (EBITA)
26 226 77 159 132 250 131 274
Earnings before interest and tax (EBIT)
10 209 56 121 114 231 114 254
Financials, net
-16 -20 -22 -20 -21 -6 -29 -31
Earnings before tax (EBT)
-6 189 34 101 93 225 85 223
Net profit or loss for the quarter
-6 145 25 77 71 176 55 169
Balance sheet (DKK million)
Non-current assets
1,877 1,756 1,880 1,761 1,809 1,545 1,893 1,564
Current assets
4,205 4,858 4,339 4,556 4,456 4,392 4,219 4,337
Balance sheet total
6,082 6,614 6,219 6,317 6,265 5,937 6,112 5,901
Total equity
1,726 1,759 1,770 1,810 1,910 1,764 1,982 1,931
Non-current liabilities
891 737 881 894 877 491 908 709
Current liabilities
3,465 4,118 3,568 3,613 3,478 3,682 3,222 3,261
Interest-bearing liabilities, net
1,450 1,530 1,334 1,558 1,480 1,205 1,157 1,074
Invested capital
3,157 3,263 3,085 3,342 3,366 2,923 3,120 2,978
Net working capital, end of period
1,876 2,347 1,720 2,265 2,253 2,186 1,907 2,205
Net working capital, average
2,075 2,149 1,939 2,251 2,268 1,773 2,193 2,010
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
Statements
29Solar A/S
Q2 2024
Contents
Quarterly figures
Q1 Q2 Q3 Q4
Cash flows (DKK million) 2024 2023 2024 2023 2023 2022 2023 2022
Cash flow from operating activities
7 101 202 78 190 -14 486 242
Cash flow from investing activities
-57 -162 -70 -54 -102 -37 -87 -38
Cash flow from financing activities
-57 171 -85 -38 -109 66 -199 -152
Net investments in intangible assets
-34 -20 -41 -25 -26 -12 -31 -17
Net investments in property, plant and equipment
-23 -30 -19 -29 -76 -25 -34 -22
Acquisition and divestment of subsidiaries and operations, net
0 -111 -10 0 0 0 -22 0
Financial ratios (% unless otherwise stated)
Revenue growth
-17.1 5.6 -4.6 -5.8 -9.2 13.7 -14.2 9.0
Organic growth
-17.1 8.3 -5.0 -2.2 -6.2 14.0 -12.5 10.9
Organic growth adjusted for nomber of working days
-15.4 6.7 -7. 8 -1.0 -4.7 14.0 -11.1 12.0
Gross profit margin
20.7 23.2 20.4 22.7 21.5 24.1 22.4 23.6
EBITDA margin
2.9 7.7 4.4 6.6 6.3 9.2 6.0 8.8
EBITA margin
0.9 6.2 2.5 4.9 4.5 7.7 4.1 7. 4
EBIT margin
0.3 5.7 1.8 3.7 3.8 7.1 3.6 6.9
Net working capital (end of period NWC)/revenue (LTM)
15.1 16.7 14.0 16.3 16.6 16.1 14.6 15.9
Net working capital (average NWC )/revenue (LTM)
16.7 15.3 15.8 16.2 16.7 13.1 16.8 14.5
Gearing (net interest-bearing liabilities/EBITDA), no. of times
2.1 1.3 2.2 1.4 1.5 1.1 1.3 0.9
Return on equity (ROE)
10.9 35.0 8.6 32.7 25.5 38.6 18.3 35.7
Return on invested capital (ROIC)
8.5 23.2 6.6 20.5 16.9 25.3 13.2 25.5
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)
8.6 5.7 10.0 5.7 6.2 5.2 7.0 5.7
Equity ratio
27.6 25.9 27.7 27. 9 29.7 29.7 31.6 32.7
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
Q2 Quarterly information
Statements
30Solar A/S
Q2 2024
Contents
Quarterly figures
Consolidated – Continued
Q1 Q2 Q3 Q4
Share ratios (DKK unless otherwise stated) 2024 2023 2024 2023 2023 2022 2023 2022
Earnings per share outstanding (EPS)
-0.68 19.85 3.70 10.54 9.72 24.10 7. 39 23.14
Intrinsic value per share outstanding
229.63 234.14 235.92 241.13 254.82 241.54 264.54 264.41
Share price
331.37 553.54 325.27 506.42 476.27 492.34 465.71 622.62
Share price/intrinsic value
1.44 2.36 1.38 2.10 1.87 2.04 1.76 2.35
Employees
Number of employees (FTE's), end of period
2,932 3,085 2,889 3,063 3,005 3,042 2,990 3,043
Average number of employees (FTE's)
2,997 3,042 2,954 3,058 3,049 2,992 3,036 3,019
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 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
Statements
31Solar A/S
Q2 2024
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
Statements
33Solar A/S
Q2 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 registered office Industrivej Vest 43 , 6600 Vejen
Principal place of business Europe
Description of nature of entity’s operations and principal activities Sourcing and services company
Name of parent entity Solar A/S
Name of ultimate parent of group Fund of 20th December