Solar A/S
No. 13 2014 Quarterly Report Q2 2014

DGAP-News: Solar A/S

19.08.2014 / 17:08

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As at 24 April 2013, Solar A/S divested the subsidiary Aurora Group Danmark
A/S. The stated figures for 2013 and 2014 in this announcement, therefore,
relate to the continuing operations. 

Q2 revenue for the Solar Group matched our expectations, while EBITA was in the
low range of our expectations. Our expectations for revenue and EBITA for 2014
are changed. 

As the Board of Directors of Solar A/S has processed the quarterly report and
guidance earlier than planned, the publication of Quarterly Report Q2 2014 has
been moved forward. 

CEO Anders Wilhjelm says:
'Most of our enterprises generated negative growth in Q2, and we see a
historically weak Danish market, which is disappointing to us. It gives us an
unfavourable effect of our geographical mix. In spite of the dropping top line,
we still expect group EBITA to grow compared to 2013, however at a lower level
than earlier stated. In general, we do not see any vast changes to the group's
overall market conditions in 2015.' 



Select financial                 EUR million                  ~ DKK million       
 highlights                                                                     
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                           Q2     Q2      H1     H1     Q2      Q2     H1     H1
                         2014   2013    2014   2013   2014    2013   2014   2013
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Revenue                 361.2  383.9   739.6  759.4  2,695   2,863  5,519  5,663
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EBITA                    -2.1    2.3     0.8   -1.6    -16      17      6    -12
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Earnings before tax      -5.5   -2.1    -6.5   -9.9    -41     -16    -49    -74
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Cash flow from          -12.5    8.1   -34.0  -23.5    -93      60   -254   -175
 operating act                                                                  
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Select key figures                   %                            %             
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Organic growth           -3.5   -4.7     0.2   -7.6   -3.5    -4.7    0.2   -7.6
--------------------------------------------------------------------------------
EBITA margin             -0.6    0.6     0.1   -0.2   -0.6     0.6    0.1   -0.2
--------------------------------------------------------------------------------
Net working              13.0   14.0    13.0   14.0   13.0    14.0   13.0   14.0
 capital/rev.*                                                                  
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* Calculated as an average of the last four quarters' inventories, debtors and
creditors. 



Q2 2014 revenue:

  -- Group revenue matched our expectations
.
  -- Organic growth was -3.5% but was negatively affected by the placement of
     Easter compared with Q2 2013. When adjusted for the number of working days,
     organic growth was -2.3%.

Q2 2014 EBITA:

  -- Group EBITA was in the low range of our expectations.
  -- The result was negatively affected by the placement of Easter compared to
     Q2 2013.
  -- Furthermore, EBITA was affected by restructuring costs of EUR 1.5m and Solar
     8000 costs of EUR 1.0m. In Q2 2013, EBITA was affected by restructuring costs
     of EUR 0.7m and Solar 8000 costs of EUR 0.8m as well as profit from the
     divestment of Aurora Group of EUR 1.4m.

Net working capital:

  -- Net working capital was reduced to 13.7% of revenue, down from 14.1% in H1
     2013. When stated as an average of four quarters, net working capital was
     reduced to 13.0% of revenue from 14.0% in H1 2013.
  -- Efforts to reduce net working capital will continue. Stated as an average
     of four quarters, our target for 2014 is to get net working capital to 13%
     of revenue. We expect net working capital of 11% of revenue at year-end
     2014.

Expectations for 2014:

  -- Expectations for 2014 revenue have changed from revenue at EUR 1,465-1,510m
     to revenue around EUR 1,500m.
  -- Expectations for EBITA have been changed from EBITA at EUR 25-32m to EBITA
     around EUR 23m.
  -- Expectations for EBITA are negatively affected by a shifting of the
     geographical mix, in which Solar Danmark, in particular, are experiencing
     negative organic growth above group average.
  -- At the same time, we expect the changes in our customer and product mix,
     which affected gross profit negatively in several of our markets in H1, to
     continue.
  -- Expectations for 2014 EBITA include restructuring costs of approximately EUR
     2m and Solar 8000 implementation costs of approximately EUR 2m. Adjusted for
     these, normalised EBITA is expected at EUR 27m.
  -- As a consequence of our expectations for a continued weak market
     development we focus on improvement measures in several group enterprises
     with the purpose of adjusting the business to fit the market situation.



Q2 presentation - video webcast and teleconference
The presentation of Quarterly Report Q2 2014 will be transmitted online from
NASDAQ OMX Copenhagen Wednesday 20 August at 11.00 CET and will be accessible
via www.solar.eu. Teleconference numbers are available here: 

Participants from Denmark: tel. +45 32 72 80 18
Participants from the UK: tel. +44 145 255 5131
Participants from the USA: tel. +1 866 682 8490
International participants: tel. +44 (0) 145 255 5131


Yours faithfully

Solar A/S

Anders Wilhjelm



Attachment: Quarterly Report Q2 2014 pages 1-22



Facts about Solar
Solar A/S is a listed company and one of Northern Europe's leading sourcing and
services companies within electrical, heating, plumbing and ventilation
products. Solar offers products, knowledge and solutions. 

In 2013, the Solar Group, which is based in Denmark, generated revenue totalling
EUR 1,531.5m, equating DKK 11.4bn. The group currently has some 3,300 employees.
Solar is listed on NASDAQ OMX Copenhagen with the short designation SOLAR B and
has been listed since 1953. 

For more information, please visit: www.solar.eu.

Disclaimer
This announcement was published in Danish and English today via NASDAQ OMX
Copenhagen. In case of any discrepancy between the two versions, the Danish
version shall prevail.
News Source: NASDAQ OMX



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Language:    English       
Company:     Solar A/S     
 
 
             Denmark       
ISIN:        DK0010274844  
 
 
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