Quarterly Report Q Presentation by CEO Anders Wilhjelm and CFO Michael Jeppesen

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Miles Houston
7 years ago
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1 Presentation by CEO Anders Wilhjelm and CFO Michael Jeppesen

2 Agenda Agenda 1. The results we achieved in Q Capital structure - new share buy-back programme 3. Outlook CEO update priorities and EBS acquisition 5. Q&A 2

3 The results we achieved in Q Organic growth amounted to 3.8%, but adjusted for number of working days, organic growth was -1.8% versus 10.1% in Q Organic growth, adjusted for number of working days 12% 10% 8% 6% Q Q Revenue, DKK million 2,811 2,674 Revenue growth, % Adj. organic growth, % % 2% 0% -2% -4% Q1 Q2 Q3 Q4 FY

4 The results we achieved in Q Positive growth in Denmark and Norway could not offset negative growth in remaining markets Update on the installation segment: Continued low construction activity levels and adjusted organic growth at around -3%. In Solar Nederland, focus on more profitable products led to lower revenue. Growth would have been positive, if adjusted for this and the loss of customers due to Conelgro s integration. Underperformance in one region in Sweden led to a decline, which the other regions could not offset. Update on the industry segment: A slowdown was reflected in the industry sector. Adjusted organic growth at around 0%. If adjusted for the negative trend in the offshore market, industry sector growth would have been above 3%. DKK million Q Revenue Q Adj. org. growth Denmark % Sweden % Norway % Benelux % Other markets % Eliminations -16 Group 2, % 4

5 The results we achieved in Q EBITA amounted to DKK 57m in Q up from DKK 48m in Q EBITA margin 3% Q Q Revenue, DKK million 2,811 2,674 2% 1% 1,8% 0,0% 0,0% -0,4% 0,5% 0,0% 0,1% 2,0% Revenue growth, % Adj. organic growth, % Gross profit, DKK million % Q COGS Oth. income EOC Staff Debt. Depr. Q Gross profit margin EBITA, DKK million EBITA margin

6 The results we achieved in H EBITA amounted to DKK 109m in H and was on par with our expectations EBITA margin 3% H H Revenue, DKK million 5,467 5,319 2% 1% 2,0% -0,2% 0,0% -0,4% 0,3% 0,2% 0,1% 2,0% Revenue growth, % Adj. organic growth, % Gross profit, DKK million 1,134 1,110 0% Q COGS Oth. income EOC Staff Debt. Depr. Q Gross profit margin EBITA, DKK million EBITA margin

7 The results we achieved in Q Cash flow at DKK -125m in Q2 impacted by dividend distribution of DKK 77m, share buy-back of DKK 14m and repayment of loan of DKK 46m Cash flow DKK million 350 Cash flow, operating activities DKK million Q12016 Oper. act. Inv. act. Fin. act. Other Q Net profit Depr. & amort. Tax & adj. Inv. Rec. Liab. Oper. act. 7

8 The results we achieved in Q Continued improvement of net working capital and gearing below target Net working capital average (NWC) DKK million ,0% Net interest-bearing debt (NIBD) 900 DKK million No. of times1, ,5% ,0 0,8 0, ,0% 300 0,4 0, , ,5% ,2-0, Q115 Q215 Q315 Q415 Q116 Q216 NWC NWC/Revenue LTM 11,0% ,6 Q115 Q215 Q315 Q415 Q116 Q216 NIBD NIBD/EBITDA LTM 8

9 Capital structure A new share buy-back programme will be launched shortly Solar s Board of Directors assesses the company s capital and share structure regularly to ensure that this is appropriate for both the shareholders and the company. The Board of Directors has decided to launch a new buy-back programme of DKK 150m structured as an auction process. 9

10 Outlook 2016 Our outlook for 2016 remains unchanged Our outlook for 2016 remains unchanged compared to that mentioned in the quarterly report for Q The impact of the MAG45 acquisition on revenue is expected to be in the range of DKK 310m but limited on EBITA. The Euro Business School (EBS) acquisition does not change Solar s overall outlook. We expect neither market growth nor organic revenue growth in 2016, and we expect EBITA to remain at 2015 levels less the positive one-off of DKK 9m from a change in pension plans in the Netherlands that we saw in As previously announced, we plan to invest in our digital platforms to strengthen customer experience. This will have a negative impact on 2016 profitability, and our present outlook recognises this. 10

11 CEO update Status on 2016 priorities Maintain focus on short-term strategy; profitable growth Strengthen digital front-end Strengthen industrial offer Continue transformational process (sourcing and services) Pursue growth opportunities inside and outside current business scope MAG45 growth plan 11

12 CEO update Comments on EBS acquisition Business rationale Solar s value proposition states: We work with our customers to improve their employees skills and productivity Expanding our training activities - Solar School - is fully in line with our ambition to increase our service offering and broadening our client base Training is a service already being offered to our customers in most markets today, but approach and setup is not aligned and the full potential not exploited What EBS brings to the table A strong foundation for expanding Solar s activities in this area Management team Learning systems Proven business Client portfolio both within and outside Solar s existing business Structure EBS and Solar School will be combined and renamed Scandinavian Technology Institute, and driven as a cross-country business line 12

13 Questions & answers Q & A Solar is a leading European sourcing and services company, operating primarily within the electrical, heating and plumbing, and ventilation technology sectors. Our core business centres on product sourcing, value-adding services and optimisation of our customers businesses. 13

Solar Equity story. Our three value drivers are growth, EBITA margin and net working capital

Solar Equity story. Our three value drivers are growth, EBITA margin and net working capital Solar Equity story Our three value drivers are growth, EBITA margin and net working capital Investor presentation - agenda 1 The results we achieved in Q4 2015 and FY 2015 2 Outlook 2016 and dividends