1. korrektur | 29. januar 2008 VISION, MISSION AND VALUES In 2006, Solar introduced both an updated vision and mission in the g
FINANCIAL HIGHLIGHTS Consolidated 2008 Financial and operating data of income statement (€ million) Revenue Earnings before int
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 simplif
Herring shoals may consist of thousands of herrings that instinctively react as one organism, for example altering the shoal’s
CONTENTS Financial targets Growth Earnings before interest, tax and amortisation (EBITA) Return on invested capital (ROIC) Equi
FINANCIAL TARGETS We have assessed the group’s financial targets and have added targets for gearing as monitoring of both equit
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. a
MANAGEMENT’S REVIEW Growth: Continuing focus on broad product range and E-business In 2008, Solar continued its development tow
Efficiency: Solar strengthens joint support functions Joint IT and finance functions create economies of scale. While Solar mai
• It provides specific input on employee training requirements for use at both local and group level. • It ensures that employe
Solar Academy Our internal training scheme maintained focus on different strategy-driven development activities in 2008 as: • A
GROWTH: Integrated contractors and wholesalers are the winners of tomorrow GROWTH NEW SOLAR 2010 EFFICIENCY PEOPLE As integrate
When swans migrate south through Europe, they always fly in a V formation with the strongest individual at the front, charting
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 re
Cash flow The year’s cash flow from operating activities declined by € 10.3m to € 44.3m as a result of weak performance that wa
EXPECTATIONS FOR 2009 The long period of high organic growth recorded ended in 2008. A general slowdown worsened from spring on
EFFICIENCY: Finance with an ear for language GROWTH NEW SOLAR 2010 EFFICIENCY PEOPLE While placing a number of finance-related
Anthills are inhabited by millions of ants that have always proved fascinating because of their ability to communicate, solve p
SHAREHOLDER INFORMATION Solar’s shares Solar’s share capital is composed of nominally € 12.1m A shares and nominally € 85.7m B
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 D
Announcements 2008 excl. insider announcements Date 18.11 15.10 06.10 30.09 No. 53 52 51 50 Announcement Quarterly report Q3 20
CORPORATE GOVERNANCE Solar considers the stock exchange’s recommendations for corporate governance a valuable tool for exercisi
SUPERVISORY BOARD Jens Borum Aase Kofoed Carsten H. Ørssleff Bent H. Frisk Remy Cramer Preben Jessen Kent Arentoft Peter Falken
GROUP MANAGEMENT Executive Board Flemming H. Tomdrup (born 1952, joined Solar in 2006) Chief Executive Officer Chairman of the
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
GROUP ENTERPRISES Solar A/S Reg. no. 15908416 Share capital DKK 728,240,700 Solar Danmark A/S, Denmark Reg. no. 15908416 Part o
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 me
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 whi
SOLAR SUOMI OY Major challenge in Finland Solar Suomi ended 2008 with its second annual negative result and finds itself in a d
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 c
AURORA GROUP Aurora Group affected by weakened retail sector The Aurora Group is a wholesaler within consumer electronics compo
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 Staf
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) € milli
statement of changes In equIty 1 January - 31 December Parent company Reserves for foreign currency translation adjustment € mi
1 Accounting policies The annual report of Solar A/S for 2008 is presented in accordance with the International Financial Repor
notes 1 Accounting policies (continued) Translation adjustments of balances regarded as part of the total net investment in ent
1 Accounting policies (continued) Software Software is measured at cost less accumulated amortisation and writedown. Cost inclu
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 liabiliti
notes 2 Commercial and financial risks Due to the nature of Solar’s business, results and equity can be affected by a range of
2 Commercial and financial risks (continued) Distribution of net assets on currencies EUR DKK NOK SEK PLN 2008 30% 27% 23% 16%
notes Maturity statement as at 31 December 2008, group € million Mortgage credit institutions Credit institutions Employee bond
3 Accounting estimates and assessments When preparing the annual report in accordance with generally applicable principles, man
notes 6 Staff costs (continued) Both programmes make it possible to make payment as a cash settlement. Management Executive emp
11 Corporation tax Group € million Current tax Deferred tax Tax on net profit for the year Reduction of Danish corporation tax
notes 14 Intangible assets Group Software Goodbeing will developed Parent company SoftCustomerware related being assets develop
14 Intangible assets (continued) Goodwill As at 31 December 2008, management has completed an impairment test of the carrying a
notes 15 Property, plant and equipment Group Plant, operating equipment, Land and and tools and Leasehold buildings equipment i
15 Property, plant and equipment (continued) Parent company Plant, operating equipment, Land and and tools and Leasehold buildi
notes 16 Investments Group € million 2008 Cost as at 1/1 2008 Foreign currency translation adjustment Additions in the year Dis
17 Inventories Group € million Goods for resale Recognised write-down 18 Write-down of trade receivables Group € million Write-
notes 21 Interest-bearing liabilities Parent company 2008 2007 € million 22 Provision for pension obligations (contimued) Paren
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 € mil
notes 24 Other provisions Group € million Non-current Sundry Specification, non-current provisions: As at 1/1 Foreign currency
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 So
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, w
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 befor
This annual report is published by: Solar A/S, Haderslevvej 25, DK - 6000 Kolding CVR no. 15 90 84 16 Copyright: Solar, March 2
Solar A/S Haderslevvej 25 DK - 6000 Kolding Phone: +45 76 30 42 00 www.solar.eu
Page 1:
Annual Report 2008
Page 2:
1. korrektur | 29. januar 2008 VISION, MISSION AND VALUES In 20
Page 3:
FINANCIAL HIGHLIGHTS Consolidated 2008 Financial and operating
Page 4:
REVIEW Solar’s activities Solar is one of Northern Europe’s lea
Page 5:
SOLAR STAYS THE COURSE Judging by the media coverage, the world
Page 6:
Herring shoals may consist of thousands of herrings that instin
Page 7:
CONTENTS Financial targets Growth Earnings before interest, tax
Page 8:
FINANCIAL TARGETS We have assessed the group’s financial target
Page 9:
Organic growth in % EBITA in % 18 15 12 9 6 3 0 6 5 4 3 2 20 0
Page 10:
MANAGEMENT’S REVIEW Growth: Continuing focus on broad product r
Page 11:
Efficiency: Solar strengthens joint support functions Joint IT
Page 12:
• It provides specific input on employee training requirements
Page 13:
Solar Academy Our internal training scheme maintained focus on
Page 14:
GROWTH: Integrated contractors and wholesalers are the winners
Page 15:
When swans migrate south through Europe, they always fly in a V
Page 16:
FINANCIAL REVIEW Revenue was up 9.7% at € 1,500m in 2008. EBITA
Page 17:
Development in EBITA in € million and in % of revenue over the
Page 18:
Cash flow The year’s cash flow from operating activities declin
Page 19:
EXPECTATIONS FOR 2009 The long period of high organic growth re
Page 20:
EFFICIENCY: Finance with an ear for language GROWTH NEW SOLAR 2
Page 21:
Anthills are inhabited by millions of ants that have always pro
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
Page 24:
Announcements 2008 excl. insider announcements Date 18.11 15.10
Page 25:
CORPORATE GOVERNANCE Solar considers the stock exchange’s recom
Page 26:
SUPERVISORY BOARD Jens Borum Aase Kofoed Carsten H. Ørssleff Be
Page 27:
GROUP MANAGEMENT Executive Board Flemming H. Tomdrup (born 1952
Page 28:
PEOPLE: Yellow post-its highlighted Solar’s competence needs GR
Page 29:
Ladybirds are easily recognised by their distinctive red wing-c
Page 30:
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 expa
Page 33:
SOLAR NORGE AS Solar Norge launches restructuring plan Solar No
Page 34:
SOLAR NEDERLAND B.V. Solar’s new big brother Not only was the a
Page 35:
SOLAR DEUTSCHLAND GMBH New employees to strengthen market posit
Page 36:
SOLAR SUOMI OY Major challenge in Finland Solar Suomi ended 200
Page 37:
SOLAR POLSKA SP. Z O.O. Acquisition equals growth The Polish ma
Page 38:
P/F SOLAR FØROYAR Revenue under pressure – but satisfactory res
Page 39:
AURORA GROUP Aurora Group affected by weakened retail sector Th
Page 40:
BLUE ENERGY: Solar helping climate Solar now teams up with a gr
Page 41:
When a bear goes into hibernation in winter, when the lack of f
Page 42:
Income statement 1 January - 31 December Note € million 2008 4
Page 43:
Balance sheet as at 31 December Note € million 2008 ASSETS 14 I
Page 44:
cash flow statement 1 January - 31 December Note € million 2008
Page 45:
statement of changes In equIty 1 January - 31 December Group Re
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statement of changes In equIty 1 January - 31 December Parent c
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1 Accounting policies The annual report of Solar A/S for 2008 i
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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 c
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notes 2 Commercial and financial risks Due to the nature of Sol
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2 Commercial and financial risks (continued) Distribution of ne
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notes Maturity statement as at 31 December 2008, group € millio
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3 Accounting estimates and assessments When preparing the annua
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notes 6 Staff costs (continued) Both programmes make it possibl
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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 develo
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14 Intangible assets (continued) Goodwill As at 31 December 200
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notes 15 Property, plant and equipment Group Plant, operating e
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15 Property, plant and equipment (continued) Parent company Pla
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notes 16 Investments Group € million 2008 Cost as at 1/1 2008 F
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17 Inventories Group € million Goods for resale Recognised writ
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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
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notes 24 Other provisions Group € million Non-current Sundry Sp
Page 67:
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
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management’s statement The group’s executive and supervisory bo
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auditor’s report To the shareholders of Solar A/S We have audit
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ADDRESSES Solar A/S Haderslevvej 25 DK - 6000 Kolding Phone: +4
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QUARTERLY FIGURES Consolidated Q1 2008 Financial and operating
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This annual report is published by: Solar A/S, Haderslevvej 25,
Page 74:
Solar A/S Haderslevvej 25 DK - 6000 Kol
Solar Group
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