In 2009, Solar realised revenue of € 1,431m (€ 1,500m) and EBITA of € 36m (€
65m), corresponding to the upper guidance for 2009 (guidance 2009: revenue of
between € 1,400m and € 1,420m and EBITA of between € 32m and € 36m). Net
working capital was reduced to 15.1% (18.8%) of revenue, thus clearly
surpassing the group's target of 16% at year-end 2009.
For the year 2009, the following highlight can be stated:
- Interest-bearing debt, net, was reduced to € 103m (€ 229m)
- Cash flow from operating activities rose to € 118m (€ 44m)
- Organic revenue growth amounted to -12.1% (5%)
- Special items related to the divestment of activities in Solar Suomi Oy and
the integration of Vegro B.V. totalled € 7.0m
- Earnings before tax were € 17m (€ 45m)
- Net profit for the year after tax amounted to € 10m (€ 31m)
- Dividend is proposed at DKK 4.25 (DKK 15.00) per share
2009 profit was adversely affected by restructuring costs of € 6.9m, equating to
a negative effect on EBITA of 0.5%.
In Q4 2009, Solar realised revenue of € 380m (€ 413m), corresponding to organic
growth of -10.1% (-1.3%). EBITA was € 11m (€ 16m), corresponding to 3.0% of
revenue. Q4 results were adversely affected by restructuring costs of € 2.8m,
i.e. a negative effect on EBITA of 0.7%.
In early 2010, activity levels were kept low by the very cold weather affecting
Northern Europe. However, despite expectations of a weak Q1 in 2010, we maintain
our expectations for revenue of € 1,360m to € 1,400m and EBITA of € 46m to €
53m.
Solar Group Strategy "# 1 in Technical Wholesale"
Solar has prepared a refreshed strategy for the period 2010-2015. This Group
strategy is designed to ensure improved financial performance and continued
advancement of the group's position as a technical wholesaler in a challenging
market, where expectations for market growth in the first half of the strategy
period are limited.
The refreshed strategy includes the following initiatives:
- To outperform the market as the number 1 technical wholesaler by further
expanding our product range and knowledge base within electrical, heating,
plumbing and ventilation products in our four key markets Denmark, the
Netherlands, Sweden and Norway. This will be underpinned by Solar Consulting's
technical training and management services to the market.
- To capture organic growth opportunities, the group will increase its focus on
the climate and energy segments as well as on facility management and utility by
expanding the product and service offers aimed at these segments.
- To upgrade the group's business model to also encompass a business model for
emerging markets. One model will be directed at consolidating our key markets
and the other at emerging markets. The latter will focus on outstanding
logistics and market-driven product demand.
- To enhance efficiency and profitability in all markets by capitalising on the
introduction of standardised processes supported by a new, common Group SAP IT
platform. Combined with the group's performance improvement project, this will
significantly increase profitability within sales, supply chain and product
management.
- To continue strengthening our leadership and specialist competences as well
as defining new ways of working across countries and functions. This is
supported
by the introduction of Solar Business Academy. Enhanced focus will be placed on
employer branding to attract new employees with competences complementing those
already available.
Solar Group is committed to incorporating progressive market opportunities into
the strategy, so that financial objectives are reached. Solar's organisation is
fully mobilised to implement the refreshed strategy with the goal of operating a
profitable organisation and obtaining the position as the number 1 technical
wholesaler.
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| | Financial objectives | Financial objectives |
| | 2010-2012 | 2013-2015 |
--------------------------------------------------------------------------------
| Growth** | 0-3% p.a. on average | 1.5-2.5 x GDP growth * |
| | + | + |
| | growth by acquisitions | growth by acquisitions |
--------------------------------------------------------------------------------
| EBITA margin** | 4-5% | 5.5-6.5% |
--------------------------------------------------------------------------------
| ROIC** | 12-14% | 16-18% |
--------------------------------------------------------------------------------
| Equity ratio | 35-40% | 35-40% |
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| Net working capital | 13-14% | 12-13% |
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| Gearing | 1.5-2.5 | 1.5-2.5 |
--------------------------------------------------------------------------------
| Dividend (payout | 35-45% of earnings after | 35-45% of earnings after |
| ratio) | tax | tax |
--------------------------------------------------------------------------------
* Average GDP growth rate in the markets Solar operates in today.
** Average for the periods 2010-2012 and 2013-15, respectively.
An English presentation of Annual Report 2009 will be transmitted online today
at 11:00 CET and is available from www.solar.eu.
Yours faithfully,
SOLAR A/S
Flemming H. Tomdrup
Enclosure: Annual Report 2009 pages 1-68 + cover
