1. korrektur | 29. januar 2008 VISION, MISSION AND VALUES In 2006, Solar introduced both an updated vision and mission in the gr
FINANCIAL HIGHLIGHTS Consolidated 2008 Financial and operating data of income statement (€ million) Revenue Earnings before inte
REVIEW Solar’s activities Solar is one of Northern Europe’s leading technical wholesalers. Its business area is electrical, HWS
SOLAR STAYS THE COURSE Judging by the media coverage, the world economy changed abruptly in mid-2008. Even if this is a simplifi
Herring shoals may consist of thousands of herrings that instinctively react as one organism, for example altering the shoal’s f
CONTENTS Financial targets Growth Earnings before interest, tax and amortisation (EBITA) Return on invested capital (ROIC) Equit
FINANCIAL TARGETS We have assessed the group’s financial targets and have added targets for gearing as monitoring of both equity
Organic growth in % EBITA in % 18 15 12 9 6 3 0 6 5 4 3 2 20 0 4 2005 2006 2007 2008 2004 2005 2006 2007 2008 ROIC in % excl. am
MANAGEMENT’S REVIEW Growth: Continuing focus on broad product range and E-business In 2008, Solar continued its development towa
Efficiency: Solar strengthens joint support functions Joint IT and finance functions create economies of scale. While Solar main
• It provides specific input on employee training requirements for use at both local and group level. • It ensures that employee
Solar Academy Our internal training scheme maintained focus on different strategy-driven development activities in 2008 as: • Al
GROWTH: Integrated contractors and wholesalers are the winners of tomorrow GROWTH NEW SOLAR 2010 EFFICIENCY PEOPLE As integrated
When swans migrate south through Europe, they always fly in a V formation with the strongest individual at the front, charting t
FINANCIAL REVIEW Revenue was up 9.7% at € 1,500m in 2008. EBITA amounted to € 65.0m against € 77.3m in 2007 and earnings before
Development in EBITA in € million and in % of revenue over the past five years is as follows: EBITA in € million and in % of rev
Cash flow The year’s cash flow from operating activities declined by € 10.3m to € 44.3m as a result of weak performance that was
EXPECTATIONS FOR 2009 The long period of high organic growth recorded ended in 2008. A general slowdown worsened from spring onw
EFFICIENCY: Finance with an ear for language GROWTH NEW SOLAR 2010 EFFICIENCY PEOPLE While placing a number of finance-related t
Anthills are inhabited by millions of ants that have always proved fascinating because of their ability to communicate, solve pr
SHAREHOLDER INFORMATION Solar’s shares Solar’s share capital is composed of nominally € 12.1m A shares and nominally € 85.7m B s
Annual dividend paid out per share rose from € 0.69 in 2004 to € 2.55 in 2008. Overall return per share of a nominal value of DK
Announcements 2008 excl. insider announcements Date 18.11 15.10 06.10 30.09 No. 53 52 51 50 Announcement Quarterly report Q3 200
CORPORATE GOVERNANCE Solar considers the stock exchange’s recommendations for corporate governance a valuable tool for exercisin
SUPERVISORY BOARD Jens Borum Aase Kofoed Carsten H. Ørssleff Bent H. Frisk Remy Cramer Preben Jessen Kent Arentoft Peter Falkenh
GROUP MANAGEMENT Executive Board Flemming H. Tomdrup (born 1952, joined Solar in 2006) Chief Executive Officer Chairman of the s
PEOPLE: Yellow post-its highlighted Solar’s competence needs GROWTH NEW SOLAR 2010 EFFICIENCY PEOPLE What are we able to do now
Ladybirds are easily recognised by their distinctive red wing-cases with black spots. But if you take a closer look, there are a
GROUP ENTERPRISES Solar A/S Reg. no. 15908416 Share capital DKK 728,240,700 Solar Danmark A/S, Denmark Reg. no. 15908416 Part of
SOLAR DANMARK A/S Strong position in a declining market Solar’s strategy of offering a broad product range affected performance
SOLAR SVERIGE AB Integration and expansion Integration and expansion were key words for Solar Sverige in 2008, as Alvesta V.V.S.
SOLAR NORGE AS Solar Norge launches restructuring plan Solar Norge’s revenue has more than doubled over the past three years mea
SOLAR NEDERLAND B.V. Solar’s new big brother Not only was the acquisition of the Dutch HWS wholesaler Vegro B.V. the largest in
SOLAR DEUTSCHLAND GMBH New employees to strengthen market position Germany has also seen a dampening of private investments whic
SOLAR SUOMI OY Major challenge in Finland Solar Suomi ended 2008 with its second annual negative result and finds itself in a di
SOLAR POLSKA SP. Z O.O. Acquisition equals growth The Polish market was characterised by a high activity level in the beginning
P/F SOLAR FØROYAR Revenue under pressure – but satisfactory results In the second half year of 2008, the positive development ch
AURORA GROUP Aurora Group affected by weakened retail sector The Aurora Group is a wholesaler within consumer electronics compon
BLUE ENERGY: Solar helping climate Solar now teams up with a group of strategic suppliers to focus on energy-efficient products
When a bear goes into hibernation in winter, when the lack of food calls for a minimum level of activity, its body consumes far
Income statement 1 January - 31 December Note € million 2008 4 Revenue Cost of sales Gross profit External operating costs Staff
Balance sheet as at 31 December Note € million 2008 ASSETS 14 Intangible assets 15 Property, plant and equipment 16 Investments
cash flow statement 1 January - 31 December Note € million 2008 Net profit for the year Depreciation and amortisation Change in
statement of changes In equIty 1 January - 31 December Group Reserves for foreign currency translation adjustment (1.0) € millio
statement of changes In equIty 1 January - 31 December Parent company Reserves for foreign currency translation adjustment € mil
1 Accounting policies The annual report of Solar A/S for 2008 is presented in accordance with the International Financial Report
notes 1 Accounting policies (continued) Translation adjustments of balances regarded as part of the total net investment in ente
1 Accounting policies (continued) Software Software is measured at cost less accumulated amortisation and writedown. Cost includ
notes 1 Accounting policies (continued) Financial assets are no longer recognised when the right to receive cash flows from the
1 Accounting policies (continued) Debt to suppliers and other current liabilities Debt to suppliers and other current liabilitie
notes 2 Commercial and financial risks Due to the nature of Solar’s business, results and equity can be affected by a range of c
2 Commercial and financial risks (continued) Distribution of net assets on currencies EUR DKK NOK SEK PLN 2008 30% 27% 23% 16% 4
notes Maturity statement as at 31 December 2008, group € million Mortgage credit institutions Credit institutions Employee bonds
3 Accounting estimates and assessments When preparing the annual report in accordance with generally applicable principles, mana
notes 6 Staff costs (continued) Both programmes make it possible to make payment as a cash settlement. Management Executive empl
11 Corporation tax Group € million Current tax Deferred tax Tax on net profit for the year Reduction of Danish corporation tax r
notes 14 Intangible assets Group Software Goodbeing will developed Parent company SoftCustomerware related being assets develope
14 Intangible assets (continued) Goodwill As at 31 December 2008, management has completed an impairment test of the carrying am
notes 15 Property, plant and equipment Group Plant, operating equipment, Land and and tools and Leasehold buildings equipment im
15 Property, plant and equipment (continued) Parent company Plant, operating equipment, Land and and tools and Leasehold buildin
notes 16 Investments Group € million 2008 Cost as at 1/1 2008 Foreign currency translation adjustment Additions in the year Dist
17 Inventories Group € million Goods for resale Recognised write-down 18 Write-down of trade receivables Group € million Write-d
notes 21 Interest-bearing liabilities Parent company 2008 2007 € million 22 Provision for pension obligations (contimued) Parent
23 Provisions for deferred tax Parent company 2008 5.2 0.0 0.0 0.0 0.0 0.0 1.3 6.5 2007 5.1 0.0 0.0 0.0 (0.5) 0.0 0.6 5.2 € mill
notes 24 Other provisions Group € million Non-current Sundry Specification, non-current provisions: As at 1/1 Foreign currency t
28 Acquisition of subsidiaries (continued) As at 6 October 2008, Solar Polska Sp. z o.o. acquired 100% of the share capital and
notes 30 Related parties Group and parent company Solar A/S is subject to control by the Fund of 20th December (registered as a
management’s statement The group’s executive and supervisory boards have today discussed and approved Annual Report 2008 for Sol
auditor’s report To the shareholders of Solar A/S We have audited the annual report of Solar A/S for the financial year 2008, wh
ADDRESSES Solar A/S Haderslevvej 25 DK - 6000 Kolding Phone: +45 76 30 42 00 www.solar.eu Solar Deutschland GmbH Leineweberring
QUARTERLY FIGURES Consolidated Q1 2008 Financial and operating data for the income statement (€ million) Revenue Earnings before
This annual report is published by: Solar A/S, Haderslevvej 25, DK - 6000 Kolding CVR no. 15 90 84 16 Copyright: Solar, March 20
Solar A/S Haderslevvej 25 DK - 6000 Kolding Phone: +45 76 30 42 00 www.solar.eu
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Annual Report 2008
Page 2:
1. korrektur | 29. januar 2008 VISION, MISSION AND VALUES In 200
Page 3:
FINANCIAL HIGHLIGHTS Consolidated 2008 Financial and operating d
Page 4:
REVIEW Solar’s activities Solar is one of Northern Europe’s lead
Page 5:
SOLAR STAYS THE COURSE Judging by the media coverage, the world
Page 6:
Herring shoals may consist of thousands of herrings that instinc
Page 7:
CONTENTS Financial targets Growth Earnings before interest, tax
Page 8:
FINANCIAL TARGETS We have assessed the group’s financial targets
Page 9:
Organic growth in % EBITA in % 18 15 12 9 6 3 0 6 5 4 3 2 20 0 4
Page 10:
MANAGEMENT’S REVIEW Growth: Continuing focus on broad product ra
Page 11:
Efficiency: Solar strengthens joint support functions Joint IT a
Page 12:
• It provides specific input on employee training requirements f
Page 13:
Solar Academy Our internal training scheme maintained focus on d
Page 14:
GROWTH: Integrated contractors and wholesalers are the winners o
Page 15:
When swans migrate south through Europe, they always fly in a V
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FINANCIAL REVIEW Revenue was up 9.7% at € 1,500m in 2008. EBITA
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Development in EBITA in € million and in % of revenue over the p
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Cash flow The year’s cash flow from operating activities decline
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EXPECTATIONS FOR 2009 The long period of high organic growth rec
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EFFICIENCY: Finance with an ear for language GROWTH NEW SOLAR 20
Page 21:
Anthills are inhabited by millions of ants that have always prov
Page 22:
SHAREHOLDER INFORMATION Solar’s shares Solar’s share capital is
Page 23:
Annual dividend paid out per share rose from € 0.69 in 2004 to €
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Announcements 2008 excl. insider announcements Date 18.11 15.10
Page 25:
CORPORATE GOVERNANCE Solar considers the stock exchange’s recomm
Page 26:
SUPERVISORY BOARD Jens Borum Aase Kofoed Carsten H. Ørssleff Ben
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GROUP MANAGEMENT Executive Board Flemming H. Tomdrup (born 1952,
Page 28:
PEOPLE: Yellow post-its highlighted Solar’s competence needs GRO
Page 29:
Ladybirds are easily recognised by their distinctive red wing-ca
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GROUP ENTERPRISES Solar A/S Reg. no. 15908416 Share capital DKK
Page 31:
SOLAR DANMARK A/S Strong position in a declining market Solar’s
Page 32:
SOLAR SVERIGE AB Integration and expansion Integration and expan
Page 33:
SOLAR NORGE AS Solar Norge launches restructuring plan Solar Nor
Page 34:
SOLAR NEDERLAND B.V. Solar’s new big brother Not only was the ac
Page 35:
SOLAR DEUTSCHLAND GMBH New employees to strengthen market positi
Page 36:
SOLAR SUOMI OY Major challenge in Finland Solar Suomi ended 2008
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SOLAR POLSKA SP. Z O.O. Acquisition equals growth The Polish mar
Page 38:
P/F SOLAR FØROYAR Revenue under pressure – but satisfactory resu
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AURORA GROUP Aurora Group affected by weakened retail sector The
Page 40:
BLUE ENERGY: Solar helping climate Solar now teams up with a gro
Page 41:
When a bear goes into hibernation in winter, when the lack of fo
Page 42:
Income statement 1 January - 31 December Note € million 2008 4 R
Page 43:
Balance sheet as at 31 December Note € million 2008 ASSETS 14 In
Page 44:
cash flow statement 1 January - 31 December Note € million 2008
Page 45:
statement of changes In equIty 1 January - 31 December Group Res
Page 46:
statement of changes In equIty 1 January - 31 December Parent co
Page 47:
1 Accounting policies The annual report of Solar A/S for 2008 is
Page 48:
notes 1 Accounting policies (continued) Translation adjustments
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1 Accounting policies (continued) Software Software is measured
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notes 1 Accounting policies (continued) Financial assets are no
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1 Accounting policies (continued) Debt to suppliers and other cu
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notes 2 Commercial and financial risks Due to the nature of Sola
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2 Commercial and financial risks (continued) Distribution of net
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notes Maturity statement as at 31 December 2008, group € million
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3 Accounting estimates and assessments When preparing the annual
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notes 6 Staff costs (continued) Both programmes make it possible
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11 Corporation tax Group € million Current tax Deferred tax Tax
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notes 14 Intangible assets Group Software Goodbeing will develop
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14 Intangible assets (continued) Goodwill As at 31 December 2008
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notes 15 Property, plant and equipment Group Plant, operating eq
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15 Property, plant and equipment (continued) Parent company Plan
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notes 16 Investments Group € million 2008 Cost as at 1/1 2008 Fo
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17 Inventories Group € million Goods for resale Recognised write
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notes 21 Interest-bearing liabilities Parent company 2008 2007 €
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23 Provisions for deferred tax Parent company 2008 5.2 0.0 0.0 0
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notes 24 Other provisions Group € million Non-current Sundry Spe
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28 Acquisition of subsidiaries (continued) As at 6 October 2008,
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notes 30 Related parties Group and parent company Solar A/S is s
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management’s statement The group’s executive and supervisory boa
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auditor’s report To the shareholders of Solar A/S We have audite
Page 71:
ADDRESSES Solar A/S Haderslevvej 25 DK - 6000 Kolding Phone: +45
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QUARTERLY FIGURES Consolidated Q1 2008 Financial and operating d
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This annual report is published by: Solar A/S, Haderslevvej 25,
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Solar A/S Haderslevvej 25 DK - 6000 Kol
Solar Group
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