Solar A/S
LEI:
21380031XTLI9X5MTY92
Industrivej Vest 43, DK-6600 Vejen, Denmark
Tel. +45 79 30 00 00
CVR no. 15 90 84 16
www.solar.eu
STRONG Q3 AS BASIS FOR
ADJUSTMENT OF 2022 GUIDANCE
Q3 was characterised by improved earnings and strong organic growth. On that basis
and our expectations to Q4, we adjust 2022 guidance to a revenue of DKK 13,700m and
an EBITDA of DKK 1,170m up from a revenue of DKK 13,450m and an EBITDA of DKK
1,100m.The EBITDA guidance includes DKK 225m in one-off effects.
CEO Jens Andersen says:
"Q3 was another strong quarter delivering high organic growth and improved
earnings. Our strategic focus area Climate & Energy supported the strong
performance by delivering an organic growth of slightly more than 100% in Q3.
We expect Climate & Energy to reach a 2022 revenue of approximately DKK 1.2bn
with solid earnings.
We have successfully diversified our business during the last years thereby
making us less dependent on new construction. The annual revenue from project
sales, which is mainly related to new construction, is expected to be around DKK
2bn with slightly lower earnings than average in our Installation segment.
Based on our strong Q3 performance and our Q4 expectations, we adjust 2022
guidance to a revenue of DKK 13,700m and an EBITDA of DKK 1,170m.”
Q3 key financial messages
• Adjusted organic growth amounted to 14.0% up from 8.8% with Climate & Energy
delivering adjusted organic growth of 103%.
• EBITDA increased by DKK 64m to DKK 301m
• One-off price effects resulted in an impact of approx. DKK 65m on gross profit
compared to DKK 50m in Q3 2021.
Financial highlights (DKK million)
Q3
2022
Q3
2021
Q1-
Q3
2022
Q1-Q3
2021
Revenue
3,266
2,872
10,179
8,974
EBITDA
301
237
849
652
Cash flow from operating activities
-14
-38
-226
225
Financial ratios (%)
Organic growth adj. for number of working days
14.0
8.8
13.3
5.4
EBITDA margin
9.2
8.3
8.3
7.3
Net working capital, end of period/revenue (LTM)
16.1
13.0
16.1
13.0
Gearing (NIBD/EBITDA), no. of times
1.1
0.5
1.1
0.5
Return on invested capital (ROIC)
25.3
23.6
25.3
23.6
3 November 2022
Announcement no. 17 2022
1
1
Solar A/S
LEI: 21380031XTLI9X5MTY92
Industrivej Vest 43, DK-6600 Vejen, Denmark
Tel. +45 79 30 00 00
CVR no. 15 90 84 16
www.solar.eu
3 November 2022
Announcement no. 17 2022
Guidance 2022
(DKK million)
Adjusted guidance
Latest guidance
Revenue
13,700
13,450
EBITDA
1,170
1,100
Revenue guidance
We now expect revenue at DKK 13,700m, corresponding to an organic growth of
approx. 12%. The Better Business project is an integral part of our strategic focuses in
the Core+ strategy and is expected to reduce revenue by DKK 200m compared to 2021.
Adjusted for this, we expect organic growth of approx. 14%.
EBITDA guidance
We expect EBITDA to amount to DKK 1,170m, up by DKK 70m of which DKK 25m can
be attributed to additional one-off price effects.
General assumption
The guidance for 2022 assumes that the Russian invasion of Ukraine, and sanctions
imposed by the European Union and other international bodies, will not have any
significant knock-on effects e.g. leading to a significant drop in market activities.
Audio webcast and teleconference today
The presentation of Quarterly Report Q3 2022 will be made in English on 3 November
2022 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be
available at www.solar.eu. Participation will be possible via teleconference.
Teleconference call-in numbers:
DK: tel. +45 787 232 50
UK: tel. +44 333 300 9265
US: tel. +1 646 722 4957
Contacts
CEO Jens Andersen - tel. +45 79 30 02 01
CFO Michael H. Jeppesen - tel. +45 79 30 02 62
IR Director Dennis Callesen - tel. +45 29 92 18 11
2
2
Solar A/S
LEI: 21380031XTLI9X5MTY92
Industrivej Vest 43, DK-6600 Vejen, Denmark
Tel. +45 79 30 00 00
CVR no. 15 90 84 16
www.solar.eu
3 November 2022
Announcement no. 17 2022
FACTS ABOUT SOLAR
Solar is a leading European sourcing and services company mainly within electrical,
heating and plumbing, ventilation and climate and energy solutions. Our core business
centres on product sourcing, value-adding services and optimisation of our customers’
businesses.
We facilitate efficiency improvement and provide digital tools that turn our customers
into winners. We drive the green transition and provide best in class solutions to ensure
sustainable use of resources.
Solar Group is headquartered in Denmark, generated revenue of approx. DKK 12.4bn in
2021 and has approx. 2,900 employees. Solar is listed on Nasdaq Copenhagen and
operates under the short designation SOLAR B. For more information, please visit
www.solar.eu.
Disclaimer
This announcement was published in Danish and English today via Nasdaq
Copenhagen. In the event of any inconsistency between the two versions, the Danish
version shall prevail.
3
Q3
2022
CVR no. 15908416
LEI 21380031XTLI9X5MTY92
MANAGEMENT REVIEW
3 Who we are
4 Financial highlights
5 Business update
7 Financial review
10 Our segments
12 Guidance
13 Shareholder information
CONTENTS
FINANCIAL STATEMENTS
15 Statement of comprehensive income
16 Balance sheet
17 Cash flow statement
18 Statement of changes in equity
20 Notes
26 Quarterly figures
29 Statement by the Executive Board and
the Board of Directors
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.
2
MANAGEMENT REVIEW
SOLAR Q3 2022
WHO WE ARE
We are a leading European sourcing and services company.
Product groups
Product brands
Denmark Sweden
Poland
Norway
The Netherlands Other
1
33% 21%
4%
16%
23% 3%
Installation Industry
2021 share of revenue 2021 share of revenue2021 share of revenue
Trade
Electrical
Concepts
Other brands
Heating & Plumbing
Climate & Energy
60%
22%
74%
20%
6%
78%
8%32%
OUR PRODUCTSOUR SEGMENTSOUR MARKETS
1
Including eliminations
We engage with our customers to understand their business and tailor our solutions
– making us stronger together.
3
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
MANAGEMENT REVIEW
SOLAR Q3 2022
Q3 FINANCIAL MESSAGES
• Adjusted organic growth was up at 14.0% from 8.8%,
with one of our strategic focus areas, Climate & Energy,
delivering revenue of approx. DKK 300m corresponding
to adjusted organic growth of 103%.
• EBITDA margin increased by 0.9 percentage points to
9.2%. EBITDA of DKK 301m (DKK 237m) was supported by
positive developments in all markets.
• Return on invested capital (ROIC) increased to 25.3%
from 23.6%.
• EBITDA guidance for 2022 is adjusted to DKK 1,170m.
This is an increase of DKK 70m of which DKK 25m can be
attributed to additional one-o price eects. Revenue
guidance for 2022 is adjusted by DKK 250m to a total of
DKK 13,700m which corresponds to organic growth of
approx. 12%.
Consolidated (DKK million)
Q3
2022
Q3
2021
Q1-Q3
2022
Q1-Q3
2021
Year
2021
Revenue 3,266 2,872 10,179 8,974 12,354
Earnings before interest, tax, depreciation and amortisation (EBITDA)
301 237 849 652 911
Earnings before interest, tax and amortisation (EBITA) 250 192 704 515 727
Earnings before interest and tax (EBIT) 231 179 655 475 672
Earnings before tax (EBT) 225 159 635 438 622
Net profit for the period 176 124 491 372 531
Balance sheet total 5,937 5,117 5,937 5,117 5,305
Equity 1,764 1,784 1,764 1,784 1,952
Interest-bearing liabilities, net 1,205 450 1,205 450 -37
Cash flow from operating activities -14 -38 -226 225 783
Net investments in property, plant and equipment -25 -51 -145 -90 -125
Employees
Number of employees (FTE's), end of period 3,042 2,897 3,042 2,897 2,936
Average number of employees (FTE's) 2,992 2,890 2,992 2,890 2,908
Financial ratios (% unless otherwise stated)
Organic growth adjusted for number of working days 14.0 8.8 13.3 5.4 5.9
Gross profit margin 24.1 23.0 23.3 22.3 22.4
EBITDA margin 9.2 8.3 8.3 7. 3 7.4
EBITA margin 7.7 6.7 6.9 5.7 5.9
Net working capital (end of period NWC)/revenue (LTM) 16.1 13.0 16.1 13.0 10.2
Gearing (net interest-bearing liabilities/EBITDA), no. of times 1.1 0.5 1.1 0.5 0.0
Return on equity (ROE) 38.6 19.7 38.6 19.7 29.1
Equity ratio 29.7 34.9 29.7 34.9 36.8
Share ratios (DKK)
Earnings per share outstanding (EPS) 24.10 16.98 67. 2 3 50.94 72.72
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
FINANCIAL HIGHLIGHTS
4
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
Heating
& plumbing
Lighting
BUSINESS UPDATE INDUSTRY
CREATING VALUE FOR
OUR INDUSTRY
CUSTOMERS
Our more than 20,000 Industry customers span a
variety of sub-segments, ranging from food production
to infrastructure. However, they all have one thing in
common; they rely on our insight and ability to deliver
the right products at the right time.
Deep industry insight
As specialists, we have a profound understanding
and insight into providing the right products,
solutions and support as well as the necessary lo-
gistics. To deliver this special combination, we are
organised cross-border across our four customer
sub-segments - OEM (Original Equipment Manufac-
turer), MRO (Maintenance, Repair & Operations),
Infrastructure and Oshore & Marine.
Expanding green products
Solar is committed to drive the green transition
and to support our customers thereby. We have
more than 260,000 products in stock, ranging
from lighting and tools to more specialised spare
parts that ensure our customers can run a smooth
production in a sustainable way.
As part of the green transition, we have added
high-capacity heat pumps to our industry product
assortment. The heat pumps are constructed for
larger buildings such as production facilities, oces
and warehouses and will contribute to the reduc-
tion of carbon emissions.
Tailored services
Aside from delivering an outstanding logistical set-
up, our services are a key dierentiator in the Indus-
try segment. With our customised stock solutions
– vending machines, Kanban, control system, Kitbox
and flawless connection between a customer’s ERP
system and Solar’s sales portal – we help our cus-
tomers to realise savings and become more ecient
– both in their production and their projects.
By combining these stand-alone services, we are
able to provide a full-service setup, which we call
Total Cost of Ownership (TCO). TCO is a holistic way
of looking at a business, where the focus is on the
total cost of a customer’s purchases thereby cre-
ating transparency. We do our utmost to create an
optimal flow of materials with fewer suppliers, less
inventory and increased profitability.
Trade
8%
Industry
Installation
60%
32%
2021
SEGMENTS
SHARE OF REVENUE
Electrical
material
ToolsCableVentilation
Renewable
energy
Data and
security
EV
chargers
Products
Services
Logistic
solutions
Special
handling
Inventory
management
5
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
SOLAR'S LOGISTICS
SERVICES STREAMLINE
ELECTRICITY
DISTRIBUTION NETWORKS
Many electricity distribution companies have merged into
major entities that cover extensive geographical areas. Their
traditional business structure with their own installers and
warehouses can be made more ecient by collaborating with
a strong logistics partner like Solar.
Electricity distribution companies are responsible
for the electricity network and, via their service
companies, for the operation of the network and
the design of new electricity installations. Instead
of using their own installers and stock, and pur-
chasing directly from manufacturers, more com-
panies have begun to outsource their installation
work to external contractors.
By collaborating with a strong logistics partner
like Solar, installers can purchase the necessary
products on behalf of the electricity distribution
companies for both new installations and daily
operations. All products can be delivered directly
to the project site.
Well-functioning web shop and ecient workflows
On behalf of the electricity distribution compa-
nies, Cerius and Radius, Nexel is responsible for
expanding, monitoring, operating and maintaining
the electricity network on Zealand and the islands.
Nexel uses external contractors, who order
materials from Solar’s web shop on a daily basis.
Contractors can only buy products from the
web shop’s predefined ranges on behalf of the
distribution company. However, they can opt for
combined delivery and specify a delivery address.
If ordered before 6 pm, items are delivered to the
warehouse or directly to the site before 7 am the
following day.
Solar takes care of the logistics so that Nexel and
its contractors can focus on their core services.
Steen Hansen, who heads up Partnerships and
Materials, Electricity Systems for Nexel says:
"We’re highly satisfied with Solar’s web shop. We
appreciate the flexibility, which means that we
can decide ourselves whether deliveries should be
made to stores or directly to the project site.
Should we lack a particular item for a project,
Solar Fastbox is a good solution for sourcing
ANDEL A.M.B.A., DENMARK
Andel A.m.b.a. is one of Denmark’s leading
energy and fibre network groups.
The Andel group owns a number of compa-
nies, including the electricity distribution
companies, Cerius and Radius, which supply
Zealand and the islands with electricity. Nexel
is the service company that operates, main-
tains, plans and installs the electricity network
– from cable cabinets, cables in the road to
transformer stations.
By collaborating with a
strong logistics partner like
Solar, installers can purchase
the necessary products.
several items within 1-2 hours. Our contractors
appreciate the service making the whole
workflow easy and smooth.
We enjoy a good ongoing dialogue with Solar
about the status of their web shop to ensure
that the necessary items are in stock or that an
alternative can be sourced. Previously, it was the
responsibility of one of Nexel’s project managers
to reserve items at the main warehouse. Now, this
can be done by the contractors.
This means that Nexel saves a great deal of stock
handling and that some goods no longer need to
be collected from the warehouse. Contractors can
therefore be sure that the necessary – and correct
- items will arrive on time as they are now part of
the process."
6
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
Q3 adjusted organic growth was
up at 14.0% (8.8%), while gross
profit margin increased to 24.1%
(23.0%). Q3 EBITDA of DKK 301m
(DKK 237m) was supported by
positive developments in all
markets.
Q3 2022
Revenue
Revenue increased to DKK 3.3bn (DKK 2.9bn).
Adjusted organic growth level was up at 14.0%
(8.8%) with one of our strategic focus areas,
Climate & Energy, delivering adjusted organic
growth of 103% corresponding to a total revenue
of approx. DKK 300m.
Although growth was supported by price
increases, we continued to see growth in volume.
The Installation, Industry and Trade segments
posted double-digit adjusted organic growth, see
page 20.
Gross profit
Gross profit margin increased to 24.1% (23.0%),
which combined with revenue growth, resulted in
a gross profit increase of DKK 126m. One-o price
eects resulted in a positive impact of approx.
DKK 65m (DKK 50m) on gross profit. Adjusted for
price eects the gross profit margin increased by
1.4 percentage points.
External operating costs and sta costs
In total, external operating costs and sta costs
were unchanged at 14.6% of revenue. Rising
prices, including energy prices, had a negative
eect on cost development. Increased costs were
also driven by strong performance.
Depreciation
Depreciation and write-down on property, plant
and equipment increased to DKK 51m (DKK 45m)
as we began to see the eect from the expansion
and upgrade of Warehouse Vejen.
EBITDA
We succeeded in increasing EBITDA by DKK 64m.
This was driven by our four strategic focus areas,
Concepts, Industry, Climate & Energy and Trade,
positive one-os and a strong growth level.
The EBITDA margin was up at 9.2% (8.3%) as
EBITDA increased to DKK 301m (DKK 237m) and
slightly exceeded our expectations.
The results of the individual markets are given on
page 22.
Financials
Net financials amounted to DKK -6m (DKK -20m).
A negative fair value adjustment of DKK 19m was
applied in Q3 2021.
Earnings before tax
Earnings before tax were up at DKK 225m (DKK
159m).
Net profit
Net profit came to DKK 176m (DKK 124m).
Q3 EBITDA INCREASED
BY 27% TO DKK 301M
(Figures in brackets are figures from the corresponding period in 2021)
FINANCIAL REVIEW
GROSS PROFIT MARGIN
%
EBITDA
DKKm
Q2Q1 Q3
21
22
23
24
25
2022 2021
Q4
Q2Q1 Q3 Q4
0
50
100
150
200
250
300
350
2022 2021
24.1
301
7
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
FINANCIAL REVIEW
Q1Q3 2022
Revenue
In Q1-Q3, adjusted organic growth at group level
increased to 13.3% (5.4%) and revenue was up at
DKK 10.2bn (DKK 9.0bn). Although growth was
supported by price increases, we continued to
see growth in volume.
One of our strategic focus areas, Climate & Energy,
delivered revenue of DKK 0.8bn corresponding to
adjusted organic growth of 67%.
Gross profit
Gross profit increased by DKK 377m with
continuous improvement in the gross profit
margin, which increased to 23.3% (22.3%).
One-o price eects resulted in a positive
impact of approx. DKK 145m (DKK 80m) on gross
profit, corresponding to a gross profit margin
improvement of approx. 1.4 percentage points
(0.9 percentage points).
Other income
Other income amounted to DKK 1m (DKK 7m). By
way of comparison, in Q1-Q3 2021, other income
mainly related to profits from the disposal of a
property in Denmark of DKK 3m and one-o
compensation of DKK 3m.
Solar Nederland has signed an agreement
concerning the sale of its warehouse located
in Duiven. Finalisation of the transaction and
transfer of the property to the purchaser is
subject to the usual conditions, including
vacating the building and clearing the premises.
This is expected before the end of Q1 2024. The
financial eect of the sale is an expected capital
gain of approx. DKK 35m that will be recognised
in the income statement when the transaction is
finalised.
External operating costs and sta costs
In total, external operating costs and sta costs
were down at 14.8% (14.9%) of revenue.
Rising prices, including energy prices, had a
negative eect on cost development. Increased
costs were also driven by strong performance.
EBITDA
EBITDA increased by DKK 197m to DKK 849m
corresponding to an EBITDA margin of 8.3%
(7.3%) of revenue. All markets saw substantial
improvement in EBITDA, with Solar Nederland
and Solar Sverige making a significant
contribution.
The results of the individual markets are shown
on page 23.
Financials
Net financials amounted to DKK -19m (DKK -37m).
In Q1-Q3 2021, net financials were negatively
aected by DKK 14m due to the early redemption
of an interest swap and positively aected by
DKK 13m from interest compensation related to
a ruling by the Danish tax authorities. In addition,
net financials were negatively aected by DKK
19m due to a fair value adjustment.
Earnings before tax
Earnings before tax were up at DKK 635m (DKK
438m).
Income tax
Income tax amounted to DKK -144m (DKK -66m).
In Q2 2021, we received a ruling from the Danish
tax authorities, which approved a reduction in
Danish taxable income in 2012. This resulted in a
tax income of approx. DKK 19m.
Net profit
Net profit increased to DKK 491m (DKK 372m).
Cash flows
Net working capital calculated as an average of
the previous four quarters amounted to 13.1%
(11.0%) of revenue. Net working capital at the
end of Q3 2022 was 16.1% (13.0%).
In Q1-Q3, cash flow from operating activities
totalled DKK -226m (DKK 225m).
Changes in receivables had a DKK -571m (DKK
-450m) impact on cash flow, which was aected
by the increased growth level in Q1-Q3 2022
and normal seasonal fluctuations. Changes in
inventories and non-interest-bearing liabilities
had an impact of DKK -366m (DKK -174m) and
DKK -47m (DKK 231m), respectively.
The general inventory level was aected by price
increases and by the decision to increase our
inventory level to ensure delivery performance
during a period of potential goods shortage. Part
of the inventory increase also supports delivery
of our strategic focus area, Climate & Energy,
particularly in Solar Nederland.
Total cash flow from investing activities
amounted to DKK -221m (DKK -138m). DKK -117m
relates to the investment in the expansion and
upgrade of our warehouse in Denmark, cf. page
10 of the 2021 Annual Report. In addition, the
acquisition of Højager Belysning A/S had an
impact of DKK -34m, cf. page 24 of this report.
Cash flow from financing activities amounted
to DKK 70m (DKK -265m), mainly aected by
ordinary and extraordinary dividend distributions
totalling DKK 658m (DKK 314m) and by the
change in current interest-bearing debt of
DKK 820m (DKK 210m).
Consequently, cash flow totalled DKK -377m
(DKK -178m).
Net interest-bearing liabilities amounted to
DKK 1,205m (DKK 450m).
NIBD IN DKK MILLION
-187
-658
-5
-142
10
-34
200
0
-200
-400
-600
-800
-1,000
-1,200
-1,400
37
31.12.2021
-226
Operating activities
CAPEX
Other investments
Dividends
Oth. fin. activities
Leasing & misc.
Assumed on acquisition
30.09.2022
-1,205
8
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
FINANCIAL REVIEW
As at 30 September 2022, gearing was 1.1 (0.5)
times EBITDA. Calculated as an average, gearing
amounted to 0.7 (0.4) times EBITDA. If adjusted
for one-o impact, gearing amounted to 1.3
times EBITDA. Our gearing target is between
1.5-3.0 times EBITDA. The Board of Directors
continually assesses the capital structure in
relation to our target and the need for capital.
As at 30 September 2022, Solar had available
credit facilities of DKK 1,454m.
Invested capital
Invested capital for the Solar Group totalled
DKK 2,923m (DKK 2,185m). ROIC amounted to
25.3% (23.6%). Activities with a Solar equity
interest of less than 50% are not included in the
ROIC calculation. Invested capital only includes
operating assets and liabilities.
KEY RISKS AND MIGITATION
Like other international companies, Solar
is aected by both global trends and local
conditions in the markets where we operate.
The Russian invasion of Ukraine and sanctions
imposed by the European Union and other
international bodies may also aect markets
outside Russia and Ukraine.
Solar does not have any business activity in
Russia or Ukraine, but there is a potential risk
from knock-on eects e.g. leading to a significant
drop in market activities. We are monitoring the
situation closely and will adopt the necessary
initiatives to limit these impacts, preserve
business continuity and protect earnings.
No additional material risks have been identified
but we continue to monitor the situation closely.
The commercial and financial risks relating to
our activities are detailed in Solar’s 2021 Annual
Report.
9
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
TRADE
Our Trade segment covers special sales and other
small areas. It also includes Solar Polaris.
In Q3, revenue from Trade amounted to DKK
271m (DKK 242m) corresponding to overall
adjusted organic growth of around 9% (28%).
The DIY sub-segment returned to growth.
Segment profit amounted to DKK 36m (DKK 47m)
corresponding to a segment profit margin of
13.3% (19.4%) negatively aected by a decline in
gross profit margin.
ALL SEGMENTS DELIVERED
STRONG GROWTH IN Q3
(Data shown in brackets relate to the corresponding period in 2021)
Segment profit includes any items that are directly
attributable to the individual segment and any
items that can be reliably allocated to the individual
segment.
Segment profit does not include non-allocated costs
of DKK 182m (DKK 152m) in Q3, which refer to income
and costs related to joint group functions and to
costs, which cannot be reliably allocated to the
individual segment.
Detailed segment information is given on page 20.
OUR SEGMENTS
INSTALLATION
Our Installation segment covers the installation
of electrical, heating and plumbing products.
In Q3, Installation revenue increased to DKK
1,883m (DKK 1,677m) corresponding to overall
adjusted organic growth of around 13% (4%)
related primarily to the electrical business. Apart
from Solar Polska, all markets saw growth in the
segment.
Segment profit increased to DKK 251m (DKK
185m) corresponding to a segment profit margin
of 13.3% (11.0%) positively aected by increased
gross profit margin.
INDUSTRY
This segment covers industry, oshore and
marine industries as well as utilities and
infrastructure. Industry also includes MAG45.
In Q3, Industry revenue increased to DKK 1,112m
(DKK 953m). This corresponds to overall adjusted
organic growth of around 17% (13%) related
primarily to OEM, Utilities, Marine & Oshore,
although MRO also saw solid growth. Solar
Sverige and Solar Polska posted growth above
20%.
Segment profit increased to DKK 196m (DKK
157m). This corresponds to a segment profit
margin of 17.6% (16.5%).
Q3
2022
Q3
2022
Installation
Installation
1,883
251
Industry
Industry
Trade
Trade
271
36
1,112
196
SEGMENT REVENUE
DKKm
SEGMENT PROFIT
DKKm
OVERVIEW BUSINESS SEGMENTS
Q3
Revenue Segment profit Segment margin %
DKK million 2022 2021 2022 2021 2022 2021
Installation
1,883 1,677 251 185 13.3 11.0
Industry 1,112 953 196 157 17.6 16.5
Trade
271 242 36 47 13.3 19.4
Solar Group 3,266 2,872 483 389 14.8 13.5
10
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
TRADE
In Q1-Q3, revenue from Trade increased to DKK
856m (DKK 741m) corresponding to unchanged
overall adjusted organic growth of around 13%.
Segment profit amounted to DKK 116m (DKK
135m) corresponding to a segment profit margin
of 13.6% (18.2%).
SEGMENT PROFIT INCREASED
BY DKK 303M IN Q1Q3
(Data shown in brackets relate to the corresponding period in 2021)
Segment profit includes any items that are directly
attributable to the individual segment and any
items that can be reliably allocated to the individual
segment.
Segment profit does not include non-allocated costs
of DKK 609m (DKK 503m) in Q1-Q3, which refer to
income and costs related to joint group functions and
to costs, which cannot be reliably allocated to the
individual segment.
Detailed segment information is given on page 21.
OUR SEGMENTS
INSTALLATION
In Q1-Q3, Installation revenue increased to DKK
5,946m (DKK 5,376m) corresponding to overall
adjusted organic growth of around 11% (3%)
related primarily to the electrical business. All
markets saw growth in Installation, with Solar
Nederland, Solar Danmark and Solar Norge
posting double-digit growth.
Segment profit increased to DKK 751m (DKK
569m) corresponding to a segment profit margin
of 12.6% (10.6%) positively aected by increased
gross profit margin.
INDUSTRY
In Q1-Q3, Industry revenue increased to DKK
3,377m (DKK 2,857m). This corresponds to overall
adjusted organic growth of around 18% (8%)
related primarily to OEM, Utilities, Marine &
Oshore, with MRO also seeing solid growth.
We posted growth above 15% in all markets
comprising Industry, with Solar Polska and Solar
Norge making a substantial contribution.
Segment profit increased to DKK 591m (DKK
451m). This corresponds to a segment profit
margin of 17.5% (15.8%).
Q1-Q3 Q1-Q3
2022 2022
Installation
Installation
5,946
751
Industry
Industry
Trade
Trade
856
116
3,377
591
SEGMENT REVENUE
DKKm
SEGMENT PROFIT
DKKm
OVERVIEW BUSINESS SEGMENTS
Q1-Q3
Revenue Segment profit Segment margin %
DKK million 2022 2021 2022 2021 2022 2021
Installation
5,946 5,376 751 569 12.6 10.6
Industry 3,377 2,857 591 451 17. 5 15.8
Trade
856 741 116 135 13.6 18.2
Solar Group 10,179 8,974 1,458 1,155 14.3 12.9
11
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
EBITDA GUIDANCE ADJUSTED
TO AN EBITDA OF DKK 1,170M
Solar adjusts its EBITDA guidance
for 2022 by DKK 70m to DKK
1,170m driven by increased
growth. Revenue guidance for
2022 was adjusted by DKK 250m
to a total of DKK 13,700m.
GENERAL ASSUMPTIONS
The guidance for 2022 assumes that the Russian
invasion of Ukraine and sanctions imposed by the
European Union and other international bodies
will not have any significant knock-on eects, e.g.
leading to a significant drop in market activities.
Loss on trade receivables is assumed to be ap-
proximately at the same level as in 2021.
MARKET OUTLOOK FOR SOLAR’S
SEGMENTS
Overall, we expect the markets to show growth
rates in all countries throughout the rest of 2022.
Installation
With electrification as one of the important
megatrends, we expect the installation market
to continue to show growth in 2022 compared to
2021.
Industry
The guidance is based on the assumption that
sales to all industry sub-segments will continue to
deliver solid growth rates.
Trade
In 2022, we also expect solid growth for special
sales, the Trade segment's primary activity.
FINANCIAL OUTLOOK 2022
Revenue guidance
We adjust revenue guidance from DKK 13,450m to
DKK 13,700m, corresponding to organic growth
of approx. 12% compared to the previous approx.
9%.
Our Better Business project is an integral part
of the Core+ strategy and is expected to reduce
revenue by approx. DKK 200m compared to 2021.
This will mainly aect Installation and Trade,
primarily in Solar Sverige, and to a lesser extent
in Solar Nederland. Adjusted for this, we expect
organic growth of approx. 14%.
EBITDA guidance
Based on slightly increased growth, we adjust our
EBITDA guidance from approx. DKK 1,100m to ap-
prox. DKK 1,170m. This is an increase of DKK 70m
of which DKK 25m can be attributed to additional
one-o price eects. In total one-o price eects
are now expected to amount to DKK 225m.
* including one-o income of DKK 112m
GUIDANCE 2022
1200
1100
1000
900
800
700
600
500
400
300
2019
2020
2021*
One-os 2021
Improvement
Guidance 2022 Feb
One-os 2022
Add. Improvement
Guidance 2022 Aug
538
911
-112
51
637
850
200
50
1100
Add. One-os 2022
Guidance 2022 Nov
25
45
1300
1400
Add. Improvement
1170
EBITDA
DKKm
12
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
SHARE AND WEBCAST
INFORMATION
Solar’s share capital is divided
into nominal value DKK 90 million
A shares and nominal value DKK
646 million B shares.
Holdings of 5%
or more of share capital
Share
capital
in %
Votes
in %
The Fund of 20th December,
Vejen, Denmark 17.0% 60.5%
Nordea Funds Ltd., Helsinki,
Finland 10.4% 5.0%
DISTRIBUTION OF SHARE CAPITAL
AND VOTES BASED ON THE LATEST
PUBLIC INFORMATION
FINANCIAL CALENDAR 2023
9 February Annual Report 2022
17 March Annual General Meeting
3 April - 4 May IR quiet period
4 May 2023 Quarterly Report Q1
3 July - 10 August IR quiet period
10 August 2023 Quarterly Reprt Q2
2 October - 2 November IR quiet period
2 November 2023 Quarterly Report Q3
The A shares are not listed. The B shares are
listed on Nasdaq Copenhagen under the ID code
DK0010274844, and are designated SOLAR B, and
form part of the MidCap index and MidCap on
Nasdaq Nordic.
The share capital includes 900,000 A shares and
6,460,000 B shares. Solar’s portfolio of treasury
shares totals 56,813 B shares or 0.8% of share
capital.
A shares have 10 votes per share amount of DKK
100, while B shares have 1 vote per share amount
of DKK 100.
TOTAL SHAREHOLDER RETURN
The total shareholder return of the Solar B share
during the holding period 1 January 2022 - 30
September 2022 was -26.0% including the DKK
45.00 ordinary dividend and DKK 45.00 extraordi-
nary divident that was paid out in March and May
2022, respectively.
AUDIO WEBCAST
The presentation of the Quarterly Report Q3 2022
will be conducted in English on 3 November 2022
at 11:00 CET. The presentation will be transmitted
as an audio webcast and will be available at:
SHAREHOLDER INFORMATION
WWW.SOLAR.EU
13
MANAGEMENT REVIEW
WHO WE ARE FINANCIAL HIGHLIGHTS BUSINESS UPDATE FINANCIAL REVIEW OUR SEGMENTS GUIDANCE 2022 SHAREHOLDER INFORMATION
SOLAR Q3 2022
Solar A/S
CVR no. 15 90 84 16
CONSOLIDATED
FINANCIAL
STATEMENTS
Q3 2022
14
STATEMENT OF COMPREHENSIVE INCOME
Income statement
Q3 Q1-Q3 Year
DKK million 2022 2021 2022 2021 2021
Revenue 3,266 2,872 10,179 8,974 12,354
Cost of sales -2,480 -2,212 -7,803 -6,975 -9,581
Gross profit 786 660 2,376 1,999 2,773
Other operating income and costs 0 1 1 7 7
External operating costs -89 -69 -276 -212 -297
Sta costs -389 -351 -1,230 -1,127 -1,552
Loss on trade receivables -7 -4 -22 -15 -20
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
Depreciation and write-down on property, plant and
equipment
-51 -45 -145 -137 -184
Earnings before interest, tax and amortisation (EBITA) 250 192 704 515 727
Amortisation and impairment of intangible assets -19 -13 -49 -40 -55
Earnings before interest and tax (EBIT) 231 179 655 475 672
Share of net profit from associates 0 0 -1 0 -2
Financial income 15 10 37 32 41
Financial expenses -21 -30 -56 -69 -89
Earnings before tax (EBT) 225 159 635 438 622
Income tax -49 -35 -144 -66 -91
Net profit for the period 176 124 491 372 531
Earnings in DKK per share outstanding (EPS) 24.10 16.98 67.23 50.94 72.72
Diluted earnings in DKK per share outstanding (EPS-D) 24.03 16.93 67.01 50.82 72.50
Other comprehensive income
Q3 Q1-Q3 Year
DKK million 2022 2021 2022 2021 2021
Net profit for the period 176 124 491 372 531
Other income and costs recognised:
Items that can be reclassified for the income statement
Foreign currency translation adjustments of foreign
subsidiaries
-20 -3 -48 8 14
Fair value adjustments of hedging instruments before tax 10 3 35 26 29
Tax on fair value adjustments of hedging instruments
-2 -1 -8 -6 -6
Other income and costs recognised aer tax -12 -1 -21 28 37
Total comprehensive income for the period
15
FINANCIAL STATEMENTS
SOLAR Q3 2022
30.09 31.12
DKK million 2022 2021 2021
ASSETS
Intangible assets 176 159 159
Property, plant and equipment 961 865 885
Right-of-use assets 341 307 300
Deferred tax asset 12 3 13
Investments in associates 4 5 5
Other non-current assets 51 54 53
Non-current assets 1,545 1,393 1,415
Inventories 2,184 1,708 1,855
Trade receivables 2,031 1,721 1,502
Income tax receivable 3 14 0
Other receivables 10 9 6
Prepayments 50 46 46
Cash at bank and in hand 114 226 481
Current assets 4,392 3,724 3,890
Total assets 5,937 5,117 5,305
30.09 31.12
DKK million 2022 2021 2021
EQUITY AND LIABILITIES
Share capital 736 736 736
Reserves -179 -167 -158
Retained earnings 1,207 1,215 1,045
Proposed dividends for the financial year 0 0 329
Equity 1,764 1,784 1,952
Interest-bearing liabilities 114 122 120
Lease liabilities 242 207 203
Provision for pension obligations 0 1 0
Provision for deferred tax 125 104 101
Other provisions 10 12 11
Non-current liabilities 491 446 435
Interest-bearing liabilities 857 243 19
Lease liabilities 106 104 102
Trade payables 2,029 1,861 2,098
Income tax payable 107 75 33
Other payables 564 591 644
Prepayments 3 3 1
Other provisions 16 10 21
Current liabilities 3,682 2,887 2,918
Liabilities 4,173 3,333 3,353
Total equity and liabilities 5,937 5,117 5,305
BALANCE SHEET
16
FINANCIAL STATEMENTS
SOLAR Q3 2022
CASH FLOW STATEMENT
Q3 Q1-Q3 Year
DKK million 2022 2021 2022 2021 2021
Net profit for the period 176 124 491 372 531
Depreciation, write-down and amortisation 70 58 194 177 239
Changes to provisions and other adjustments -6 4 -18 2 11
Share of net profit from associates 0 0 1 0 2
Financials, net 6 20 19 37 48
Income tax 49 35 144 66 91
Financial income, received 3 16 9 19 23
Financial expenses, settled -9 -8 -23 -41 -50
Income tax, settled -10 12 -59 -14 -81
Cash flow before working capital changes 279 261 758 618 814
Working capital changes
Inventory changes -207 -198 -366 -174 -319
Receivables changes -76 -17 -571 -450 -229
Non-interest-bearing liabilities changes -10 -84 -47 231 517
Cash flow from operating activities -14 -38 -226 225 783
Q3 Q1-Q3 Year
DKK million 2022 2021 2022 2021 2021
Investing activities
Purchase of intangible assets -12 -14 -42 -42 -58
Purchase of property, plant and equipment -25 -51 -145 -108 -143
Disposal of property, plant and equipment 0 0 0 18 18
Aquisition of subsidiaries and activities 0 0 -34 0 0
Acquisition of associates 0 0 0 -3 -5
Other financial investments 0 0 0 -3 -3
Cash flow from investing activities -37 -65 -221 -138 -191
Financing activities
Repayment of non-current interest-bearing debt -2 -55 -6 -77 -79
Change in current interest-bearing debt 97 161 820 210 -9
Instalment on lease liabilities -29 -29 -86 -86 -115
Dividends distributed 0 0 -658 -314 -314
Sale of treasury shares 0 0 0 2 2
Cash flow from financing activities 66 77 70 -265 -515
Total cash flow 15 -26 -377 -178 77
Cash at bank and in hand at the beginning of period 99 252 481 404 404
Assumed on aquisition of subsidaries 0 0 10 0 0
Cash at bank and in hand at the end of period 114 226 114 226 481
Cash at bank and in hand at the end of the period
Cash at bank and in hand 114 226 114 226 481
Cash at bank and in hand at the end of the period 114 226 114 226 481
17
FINANCIAL STATEMENTS
SOLAR Q3 2022
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 Total
2022
Equity as at 1 January 736 -37 -121 1,045 329 1,952
Foreign currency translation adjustments of foreign subsidiaries -48 -48
Fair value adjustments of hedging instruments before tax 35 35
Tax on fair value adjustments -8 -8
Net income recognised in equity via other comprehensive income in the statement of comprehensive income 0 27 -48 0 0 -21
Net profit for the period 491 491
Comprehensive income 0 27 -48 491 0 470
Distribution of dividends (DKK 45.00 per share) -329 -329
Distribution of extraordinary dividends (DKK 45.00 per share) -329 -329
Transactions with the owners 0 0 0 -329 -329 -658
Equity as at 30 September 736 -10 -169 1,207 0 1,764
18
FINANCIAL STATEMENTS
SOLAR Q3 2022
– continued
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 Total
2021
Equity as at 1 January 736 -60 -135 951 204 1,696
Foreign currency translation adjustments of foreign subsidiaries 8 8
Fair value adjustments of hedging instruments before tax 26 26
Tax on fair value adjustments -6 -6
Net income recognised in equity via other comprehensive income in the statement of comprehensive income 0 20 8 0 0 28
Net profit for the period 372 372
Comprehensive income 0 20 8 372 0 400
Distribution of dividends (DKK 28.00 per share) -204 -204
Distribution of extraordinary dividends (DKK 15.00 per share) -110 -110
Sale of treasury shares 2 2
Transactions with the owners 0 0 0 -108 -204 -312
Equity as at 30 September 736 -40 -127 1,215 0 1,784
1. Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.
19
FINANCIAL STATEMENTS
SOLAR Q3 2022
NOTES
Segment information
Solar’s business segments are Installation, Industry and Trade and are based on the customers’ aliation with
the segments. Installation covers installation of electrical, and heating and plumbing products, while Industry
covers industry, oshore 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 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.
DKK million Installation Industry Trade Total
Q3 2022
Revenue 1,883 1,112 271 3,266
Cost of sales -1,440 -827 -213 -2,480
Gross profit 443 285 58 786
Direct costs -67 -33 -8 -108
Earnings before indirect costs 376 252 50 678
Indirect costs -125 -56 -14 -195
Segment profit 251 196 36 483
Non-allocated costs -182
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 301
Depreciation and amortisation -70
Earnings before interst and tax (EBIT) 231
Financials, net incl. share of net profit from
associates and impairment on associates -6
Earnings before tax (EBT) 225
DKK million Installation Industry Trade Total
Q3 2021
Revenue 1,677 953 242 2,872
Cost of sales -1,318 -718 -176 -2,212
Gross profit 359 235 66 660
Direct costs -62 -27 -7 -96
Earnings before indirect costs 297 208 59 564
Indirect costs -112 -51 -12 -175
Segment profit 185 157 47 389
Non-allocated costs -152
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 237
Depreciation and amortisation -58
Earnings before interst and tax (EBIT) 179
Financials, net incl. share of net profit from
associates and impairment on associates -20
Earnings before tax (EBT) 159
20
FINANCIAL STATEMENTS
SOLAR Q3 2022
Segment information – continued
DKK million Installation Industry Trade Total
Q1-Q3 2022
Revenue 5,946 3,377 856 10,179
Cost of sales -4,614 -2,515 -674 -7,80 3
Gross profit 1,332 862 182 2,376
Direct costs -203 -98 -27 -328
Earnings before indirect costs 1,129 764 155 2,048
Indirect costs -378 -173 -39 -590
Segment profit or loss 751 591 116 1,458
Non-allocated costs -609
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 849
Depreciation and amortisation -194
Earnings before interst and tax (EBIT) 655
Financials, net -20
Earnings before tax (EBT) 635
DKK million Installation Industry Trade Total
Q1-Q3 2021
Revenue 5,376 2,857 741 8,974
Cost of sales -4,266 -2,164 -545 -6,975
Gross profit 1,110 693 196 1,999
Direct costs -183 -87 -24 -294
Earnings before indirect costs 927 606 172 1,705
Indirect costs -358 -155 -37 -550
Segment profit or loss 569 451 135 1,155
Non-allocated costs -503
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 652
Depreciation and amortisation -177
Earnings before interst and tax (EBIT) 475
Financials, net -37
Earnings before tax (EBT) 438
NOTES
21
FINANCIAL STATEMENTS
SOLAR Q3 2022
Geographical information
Other markets covers the remaining markets, which can be seen in the group companies overview available
on page 132 of Annual Report 2021 or on www.solar.eu. The below allocation has been made based on the
products’ place of sale.
Segment information – continued
NOTES
Q3
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
2022
Sweden 608 7.3 66 10.9 172
Norway 549 16.5 45 8.2 217
The Netherlands 749 18.2 52 6.9 325
Poland 121 2.5 6 5.0 36
Several markets (MAG45) 194 18.2 9 4.6 50
Other markets 27 12.2 0 0.0 31
Eliminations -95 - 0 0.0 -1,440
Solar Group 3,266 14.0 301 9.2 1,545
Q3
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
2021
Denmark 970 10.0 109 11.2 1,800
Sweden 589 8.4 43 7.3 213
Norway 462 6.4 44 9.5 179
The Netherlands 635 1.2 27 4.3 343
Poland 125 46.6 6 4.8 28
Several markets (MAG45) 164 22.9 8 4.9 46
Other markets 14 2.0 0 0.0 4
Eliminations -87 - 0 0.0 -1,220
Solar Group 2,872 8.8 237 8.3 1,393
22
FINANCIAL STATEMENTS
SOLAR Q3 2022
Segment information – continued
NOTES
Q1-Q3
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
2022
Denmark 3,374 12.3 331 9.8 2,154
Sweden 2,035 9.3 167 8.2 172
Norway 1,653 15.3 136 8.2 217
The Netherlands 2,398 15.5 167 7.0 325
Poland 372 15.8 18 4.8 36
Several markets (MAG45) 568 17.9 26 4.6 50
Other markets 75 11.0 4 5.3 31
Eliminations -296 - 0 0.0 -1,440
Solar Group 10,179 13.3 849 8.3 1,545
Q1-Q3
DKK million Revenue
Adjusted
organic
growth % EBITDA
EBITDA
margin %
Non-current
assets
2021
Denmark 2,977 10.3 294 9.9 1,800
Sweden 1,918 3.8 110 5.7 213
Norway 1,401 2.8 117 8.4 179
The Netherlands 2,075 -3.1 93 4.5 343
Poland 329 34.3 14 4.3 28
Several markets (MAG45) 482 16.6 21 4.4 46
Other markets 44 7. 0 3 6.8 4
Eliminations -252 - 0 0.0 -1,220
Solar Group 8,974 5.4 652 7. 3 1,393
23
FINANCIAL STATEMENTS
SOLAR Q3 2022
NOTES
Acquisition of business activities
On 1 March 2022, Solar acquired the shares in the lighting company Højager Belysning A/S in Denmark.
Total acquisition price of 100% of the Højager Belysning shares amounted to DKK 34m, equal to an
enterprise value of DKK 25m.
With the acquisition, Solar takes a strong position with the B2G market in Denmark, as Højager Belysning
A/S is a leading supplier within sales of light sources and lighting for the public sector with Staten og
Kommunernes Indkøbsservice A/S (in short: SKI) and the regions being their customers. Højager Belysning
A/S has 28 dedicated employees.
24
FINANCIAL STATEMENTS
SOLAR Q3 2022
NOTES
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 eect of new IAS/IFRS standards implemented during the period, the accounting policies re-
main unchanged from the Annual Report 2021, which contains a full description of these on pages 57-59 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
No additional standards have become eective in the period, only amendments and improvements to existing
standards. 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 30 September 2022 and to be implemented in coming accounting peri-
ods are not expected to have significant impact on Solar's accounting policies.
25
FINANCIAL STATEMENTS
SOLAR Q3 2022
Consolidated
QUARTERLY FIGURES
Q1 Q2 Q3 Q4
Income statement (DKK million) 2022 2021 2022 2021 2022 2021 2021 2020
Revenue
3,462 3,004 3,451 3,098 3,266 2,872 3,380 3,057
Earnings before interest, tax, depreciation and amortisation (EBITDA)
281 204 267 211 301 237 259 191
Earnings before interest, tax and amortisation (EBITA)
236 157 218 166 250 192 212 145
Earnings before interest and tax (EBIT)
222 143 202 153 231 179 197 -14
Financials, net
-5 -20 -8 3 -6 -20 -11 -16
Earnings before tax (EBT)
217 123 193 156 225 159 184 -7
Net profit or loss for the quarter
168 100 147 148 176 124 159 -32
Balance sheet (DKK million)
Non-current assets
1,487 1,342 1,557 1,385 1,545 1,393 1,415 1,339
Current assets
4,088 3,500 4,122 3,569 4,392 3,724 3,890 3,268
Balance sheet total
5,575 4,842 5,679 4,954 5,937 5,117 5,305 4,607
Equity
1,808 1,619 1,600 1,661 1,764 1,784 1,952 1,696
Non-current liabilities
453 498 506 457 491 446 435 498
Current liabilities
3,314 2,725 3,573 2,836 3,682 2,887 2,918 2,413
Interest-bearing liabilities, net
617 461 1,122 329 1,205 450 -37 128
Invested capital
2,377 2,011 2,675 1,921 2,923 2,185 1,866 1,760
Net working capital, end of period
1,791 1,344 1,856 1,280 2,186 1,568 1,259 1,109
Net working capital, average
1,475 1,300 1,619 1,274 1,773 1,325 1,363 1,322
26
FINANCIAL STATEMENTS
SOLAR Q3 2022
QUARTERLY FIGURES
Consolidated – continued
Q1 Q2 Q3 Q4
Cash flows (DKK million) 2022 2021 2022 2021 2022 2021 2021 2020
Cash flow from operating activities
-202 -88 -10 351 -14 -38 558 432
Cash flow from investing activities
-109 -10 -75 -63 -37 -65 -53 213
Cash flow from financing activities
-37 -71 41 -271 66 77 -250 -397
Net investments in intangible assets
-16 -13 -14 -15 -12 -14 -16 -14
Net investments in property, plant and equipment
-59 8 -61 -47 -25 -51 -35 -9
Acquisition and divestment of subsidiaries and operations, net
-34 0 0 0 0 0 0 0
Financial ratios (% unless otherwise stated)
Revenue growth
15.2 -1.3 11.4 12.9 13.7 9.7 10.6 -0.6
Organic growth
15.4 -2.2 11.7 10.6 14.0 8.8 9.1 0.0
Organic growth adjusted for number of working days
13.6 -0.6 12.4 8.6 14.0 8.8 7.1 -2.1
Gross profit margin
23.1 21.9 22.9 22.0 24.1 23.0 22.9 21.5
EBITDA margin
8.1 6.8 7.7 6.8 9.2 8.3 7.7 6.2
EBITA margin
6.8 5.2 6.3 5.4 7.7 6.7 6.3 4.7
EBIT margin 6.4 4.8 5.9 4.9 7.1 6.2 5.8 -0.5
Net working capital (end of period NWC)/revenue (LTM)
14.0 11.8 14.1 10.9 16.1 13.0 10.2 9.7
Net working capital (average NWC )/revenue (LTM)
11.5 11.4 12.3 10.8 13.1 11.0 11.0 11.5
Gearing (interest-bearing liabilities,net/EBITDA), no. of times
0.6 0.7 1.1 0.4 1.1 0.5 0.0 0.2
Return on equity (ROE)
31.9 17.6 35.1 18.2 38.6 19.7 28.4 13.1
Return on invested capital (ROIC)
26.5 16.6 25.5 21.0 25.3 23.6 24.6 13.8
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)
7.5 7.6 6.3 7.0 5.2 7.6 7. 8 5.8
Equity ratio
32.4 33.4 28.2 33.5 29.7 34.9 36.8 36.8
27
FINANCIAL STATEMENTS
SOLAR Q3 2022
QUARTERLY FIGURES
Consolidated – continued
Q1 Q2 Q3 Q4
Share ratios (DKK unless otherwise stated) 2022 2021 2022 2021 2022 2021 2021 2020
Earnings per share outstanding (EPS)
23.00 13.70 20.13 20.27 24.10 16.98 21.77 -4.38
Intrinsic value per share outstanding
247.56 221.68 219.08 227.43 241.54 244.28 267. 28 232.38
Share price
749.19 480.82 597.09 541.47 492.34 632.86 795.05 353.70
Share price/intrinsic value
3.03 2.17 2.73 2.38 2.04 2.59 2.97 1.52
Employees
Number of employees (FTE's), end of period
2,996 2,901 2,995 2,899 3,042 2,897 2,936 2,864
Average number of employees (FTE's)
2,932 2,897 2,956 2,889 2,992 2,890 2,908 2,935
Definitions
Organic growth Revenue growth adjusted for enterprises acquired and sold o and any exchange rate changes. No adjustments have been made for number of working days.
Net working capital Inventories and trade receivables less trade payables.
ROIC Return on invested capital calculated on the basis of operating profit or loss less tax calculated using the eective tax rate.
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
28
FINANCIAL STATEMENTS
SOLAR Q3 2022
STATEMENT BY THE EXECUTIVE BOARD
AND THE BOARD OF DIRECTORS
EXECUTIVE BOARD
BOARD OF DIRECTORS
29
FINANCIAL STATEMENTS
SOLAR Q3 2022
