http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/RSS.ashxSolar Group PagesWed, 18 Nov 2009 07:22:52 +0100http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=1http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=1Q3 / 2009 STRO NGER TOGE THER2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=2http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=22009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=3http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=3FINANCIAL HIGHLIGHTS Consolidated Q3 2009 Financial and operating data from the income statement (€ million) Revenue Earnings before interest, tax and amortisation (EBITA) Earnings before interest and tax (EBIT) Financials, net Earnings before tax (EBT) Net profit for the period Earnings per share in € per share outstanding (EPS) Earnings per share excluding amortisation in € per share outstanding Financial and operating data from the balance sheet (€ million) Total assets Net investments in property, plant and equipment Share capital outstanding Equity Interest-bearing liabilities Interest-bearing liabilities, net Financial and operating data from cash flow (€ million) Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Financial ratios (% unless otherwise stated) Revenue growth Organic growth Earnings before interest, tax, depreciation and amortisation (EBITDA) Earnings before interest, tax and amortisation (EBITA) Earnings before interest and tax (EBIT) Operating margin Gearing (interest-bearing liabilities, net/EBITDA), no. of times Return on equity (ROE) Return on equity (ROE) excl. amortisation Return on invested capital (ROIC) Return on invested capital (ROIC) excl. amortisation Adjusted market capitalisation/operating profit or loss (EV/EBITA) Equity ratio Intrinsic value in € per share outstanding Share price in € Share price/intrinsic value Share price in DKK Employees Average number of employees (FTE) 2008 Q1-Q3 2009 2008 Year 2008 333.7 9.6 7.8 (1.3) 6.5 4.5 0.67 0.94 349.4 1,051.5 1,087.7 1,500.3 18.4 24.7 48.6 65.0 16.7 19.7 43.5 58.3 (2.4) (3.6) (5.9) (12.9) 14.3 16.1 37.6 45.4 10.0 9.9 26.5 31.0 1.48 1.47 3.88 4.55 1.73 2.22 4.62 5.53 600.7 1.2 90.2 210.0 168.8 167.3 564.1 0.4 90.0 221.2 161.6 157.0 600.7 6.1 90.2 210.0 168.8 167.3 564.1 6.4 90.0 221.2 161.6 157.0 604.1 11.2 90.1 205.0 232.3 229.0 32.0 (4.3) (3.0) 19.1 (0.6) (9.0) 93.9 (13.5) (21.8) 31.4 (6.6) (38.8) 44.3 (74.7) 11.8 (4.5) (14.1) 3.7 2.9 2.3 1.3 3.3 8.7 12.2 5.4 7.3 10.8 35.0 31.3 36.9 1.18 274 4.0 4.7 5.9 5.3 4.8 2.9 1.9 18.2 21.2 11.8 13.6 6.4 39.2 32.9 46.4 1.41 346 (3.3) (12.9) 3.2 2.3 1.9 0.9 3.7 6.4 9.6 4.0 5.8 12.6 35.0 31.3 36.9 1.18 274 10.0 7.3 5.1 4.5 4.0 2.4 2.1 15.7 18.7 10.3 12.1 7.3 39.2 32.9 46.4 1.41 346 9.7 5.0 4.9 4.3 3.9 2.1 3.1 14.3 17.4 8.7 10.2 6.2 33.9 30.5 25.6 0.84 191 3,109 2,942 3,215 2,878 3,010 Solar A/S Quarterly report Q3 2009 / Financial highlights /12009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=4http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=4OUTLINE Q3 and Q1-Q3 2009 Q3 revenue amounted to € 333.7m against € 349.4m in Q3 2008, equalling revenue growth of -4.5%. Total Q1-Q3 revenue was € 1,051.5m against € 1,087.7m in the corresponding period in 2008, equalling revenue growth of -3.3%. Of revenue, organic growth was -14.1% in Q3 and -12.9% for the first nine months of the year. In Q3, EBITA was € 9.6m against € 18.4m in Q3 2008, while EBITA for the first nine months totalled € 24.7m against € 48.6m in the corresponding period in 2008. EBT for Q3 amounted to € 6.5m, and net profit for the period was € 4.5m, while the results for the first nine months were EBT of € 16.1m and net profit of € 9.9m. Earnings per share outstanding for the first nine months of the year were € 1.47 against € 3.88 in the corresponding period in 2008. Restructuring costs affected earnings negatively by € 1.3m in Q3, totalling € 4.1m for the first nine months of the year.Revenue and earnings matched expectations. Interest-bearing debts was reduced from € 229.0m at the end of 2008 to € 167.3m as at 30 September 2009, as positive cash flow from operating activities increased to € 93.9m in the first nine months of 2009 compared with € 31.4m in the corresponding period in 2008. We presented the last phases of the integration plan for Solar Nederland B.V. and Vegro B.V. in company announcement no. 20 of 28 October 2009. As stated, synergies are expected to exceed previous announcements considerably with annual savings of approximately € 5.2m in 2010 and € 6.9m in 2011. Also, our company announcement no. 21 of 3 November 2009 stated that Solar Suomi Oy has entered into negotiations about the divestment of its business activities to Ahlsell Oy. Net revenue in € million Expectations for 2009 Solar adjusts its expectations for revenue to between € 1,400m and € 1,420m against previous announcements of € 1,365m to € 1,430m. EBITA is adjusted to between € 32m and € 36m, up from € 30m to € 38m. We expect to expense approximately € 5.1m under special items in Q4 2009 in connection with the integration plan for Solar Nederland B.V. and Vegro B.V., cf. company announcement no. 20. Moreover, the sale of activities in Solar Suomi Oy is expected to result in costs of approximately € 1.5m which we also expect to expense under special items in Q4 2009, cf. company announcement no. 21. Expectations for 2010 We expect revenue between € 1,360m and € 1,400m and EBITA between € 46m and € 53m in 2010. Of EBITA, € 3m represent expected Solar 8000 implementation costs. Net working capital is expected to total 15% of revenue at the end of 2010. The impact of the financial crisis means that figures stated for revenue, gross profit and bad debts in 2010 are somewhat uncertain. Solar aims at creating continued growth through value-adding acquisitions, and the coming years are expected to provide such opportunities. Solar evaluates its capital structure on an ongoing basis to ensure that it has the financial means necessary to implement its strategy without being dependent on financing and support from its banks. The authorisation granted in its articles of association to issue new B shares in conjunction with Solar’s treasury shares provides Solar with the opportunity to strengthen its balance sheet. Solar has retained Carnegie Bank A/S as its financial advisor. EBITA in € million 420 390 360 330 300 Q1 20 0 8 /2 20 15 10 5 0 Q2 20 0 9 Q3 Q4 Q1 2008 Q2 2009 Q3 Q4 Solar A/S Quarterly report Q3 2009 / Outline2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=5http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=5GROUP REPORT Q3 2009 Q3 revenue was down € 15.7m to € 333.7m, equating a decrease in revenue of 4.5%. The drop in organic growth in Q3 was 14.1%. EBITA was down € 8.8m to € 9.6m or 2.9% of revenue. Freight costs as a percentage of revenue matched Q3 2008 levels. Restructuring costs related to the reductions in staff and external operating costs impacted EBITA negatively with a 0.4% decrease totalling € 1.3m. As such, we are starting to see a positive effect on earnings of the restructuring implemented in 2008 and 2009. EBT amounted to € 6.5m, and net profit for the period was € 4.5m against € 14.3m and € 10.0m, respectively, in Q3 2008. Revenue and profit were on par with expectations. Q1-Q3 2009 Revenue Revenue dropped 3.3% or € 36.2m to € 1,051.5m in Q1-Q3, and we saw negative organic growth of 12.9%. Thus, revenue for the first nine months of 2009 matched expectations. Earnings before interest, tax and amortisation (EBITA) EBITA totalled € 24.7m, i.e. 2.3% of revenue, and was affected negatively by freight costs as a percentage of revenue of 0.2% compared with the corresponding period in 2008. Restructuring costs related to staff reductions and external operating costs affected net profit negatively by € 4.1m or 0.4%. Financials Financials, net, amounted to € -3.6m against € -5.9m in Q1Q3 2008 and were positively impacted by foreign exchange gains on NOK in particular of € 2.8m. Earnings before tax (EBT) and net profit EBT in Q1-Q3 2009 was € 16.1m against € 37.6m in Q1-Q3 2008, while net profit was € 9.9m against € 26.5m last year. Net profit met expectations. The effect of cost savings and staff reductions implemented has increased gradually over the year and is expected to be more marked in Q4 2009. However, full measurable impact of the most recently implemented restructuring measures will not be seen until the end of 2010. Earnings per share Earnings per share in Q1-Q3 totalled € 1.47. Organic growth in % EBITA in % of revenue 10 5 0 -5 -10 -15 Q1 20 0 8 Q2 20 0 9 Q3 Q4 6 4 2 0 Q1 2008 Q2 2009 /3 Q3 Q4 Solar A/S Quarterly report Q3 2009 / Group report2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=6http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=6GROUP REPORT Investments On 1 October 2009, Solar commissioned the extension to the administration building that was started in 2008. Group net investments in property, plant and equipment totalled € 6.1m in Q1-Q3, and € 5.3m of these have gone to this extension. Several other planned investments throughout 2009 have been cancelled. In Q2, Solar made a € 5.4m agreement for the supply of further automation equipment for the central warehouse in Vejen, Denmark, and this investment falls due in H1 2010. Solar’s IT strategy was redefined in 2008 when a decision was made to implement group standardised processes and move part of the group’s in house-developed ERP system to SAP (project Solar 8000) over the next three years. Investments in Q1-Q3 amounted to € 7.2m, bringing investments so far to € 11.9m of expected total investments of up to € 40m. Cash flow In 2009, special attention has been given to reducing working capital and interest-bearing liabilities and, thus, it is satisfactory to see that cash flow for operating activities in Q1-Q3 totalled € 93.9m against € 31.4m in the same period in 2008. Moreover, working capital was down € 55.0m to € 227.2m in this period of 2009. Cash flow from investing activities dropped to € -13.5m compared with € -6.6m in Q1-Q3 2008. Cash flow from financing activities was € -21.8m against € -38.8m for Q1-Q3 2008. Of this, dividend distributed to the company’s shareholders was € 13.5m against € 17.6m in 2008. This positive cash flow development led to a reduction in net interest-bearing liabilities from € 229.0m to € 167.3m and results directly from a targeted effort. In addition, Solar has undrawn credit facilities of € 174m as at 30 September 2009. Solar has no covenants to its main bankers. As gearing calculated on the basis of EBITDA for the last 12 months totalled 3.2 times, it does not meet Solar’s financial targets for 2009 of gearing between 1.5 and 2.5. However, we do expect activities implemented to produce continued positive development of cash flow, which, in combination with the expected increased revenue in 2010, should result in gearing in line with Solar’s announced financial targets by the end of 2010. Key risks Annual Report 2008 describes the commercial and financial risks related to Solar’s activities. The key risk remains that the group, like other international companies, is affected by both global trends and local conditions in the markets where it operates. STRATEGIC MEASURES The current recession has convinced us to focus work within the framework of the company programme New Solar 2010 on fewer cross-functional activities within the three focus areas Growth, Efficiency and People. Solar evaluates its capital structure on an ongoing basis to ensure that it has the financial means necessary to implement its strategy without being dependent on financing and support from its banks. The authorisation granted in its articles of association to issue new B shares in conjunction with Solar’s treasury shares provides Solar with the opportunity to strengthen its balance sheet. Solar has retained Carnegie Bank A/S as its financial advisor. Growth Both during the financial crisis and in the following recession, Solar has continued to produce positive results and strong cash flow, thus confirming the strength of Solar’s business model. We aim at continuing to create growth through value-adding acquisitions, and the next few years are expected to offer new opportunities in this area. The purpose of acquisitions is to strengthen our market position in existing markets and expand our geographical cover and product range in particular, as this will allow Solar to benefit further from expected future investments in energy-efficient solutions, an expected major growth area in the years ahead. Solar’s Blue Energy concept, launched at the end of 2008, lets contractors gain a share of the considerable investments to be made when energy-efficient components and solutions are to be installed i2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=7http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=7As requirements for the construction of new energy-efficient buildings will be tightened over the coming years, we will see a rising demand for innovative design and integration of renewable energy in technical installations. The group’s first knowledge centre, Solar Explorium, was opened by the Danish Minister for Climate and Energy Connie Hedegaard on 1 October 2009. The centre is an extension to the existing Danish headquarters in Vejen, and the use of currently available energy-efficient components has meant that this extension meets requirements for construction and renovation that will not become effective until 2015. Together with our training facility Solar School, Solar Explorium is expected to be a powerful tool when it comes to ensuring the crucial competence development among our customers necessary for these to live up to future climate and energyrelated official requirements and market-related wants. Efficiency In line with recent announcements, restructuring still takes centre stage throughout Solar, as we aim to increase efficiency and simplify structures. Also, our strong focus on optimising working capital is paying off, as results meet the ambitious targets set for 2009. The Solar 8000 project is our business development project leading to group standardised processes underpinned by a standard IT system (SAP). The project is on schedule, and the first and most extensive phase will be implemented by the end of 2011. A parallel Value Realisation (VR) project will run to realise the winnings of the project. This VR project encompasses initiatives to be implemented in a series of processes over the next few years, starting at the beginning of 2010. Moreover, Solar 8000’s introduction of standardised processes is underpinned by the continued Lean implementation. People Work on the establishment of a Solar Academy to be opened in 2010 continues. The academy will focus on competence development of management and specialist functions within sales, Lean, etc. STATUS ON DEVELOPMENT IN THE INDIVIDUAL SUBSIDIARIES Solar Danmark A/S Activity levels for contractors within new construction are still dropping, and only current orders are placed. Contractors have dismissed many employees, and competition for the few projects offered is very hard. Activity levels are expected to drop further but not to the extent seen so far. Revenue with industry customers continued to be significantly affected by the markedly lower activity level within Danish industry in Q3. Certainly, activity levels seem to have stabilised, although they remain low. Also, many of the business development activities launched over the last few years to reduce dependence on new construction show satisfactory development, and many continue to contribute positively to growth. The replacement of a major transport supplier will take effect in early 2010. Solar Danmark’s new administrative extension, which also houses our new knowledge centre Solar Explorium, was officially opened on 1 October 2009. Already, many of our customers have expressed their interest in visiting the knowledge centre. The extension is a low energy class 1 building, meaning that it lives up to requirements that will not become legally effective until 2015. Lean implementation is on plan, continuing to increase efficiency, quality and employee satisfaction. Solar A/S Quarterly report Q3 2009 / Group report /52009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=8http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=8GROUP REPORT Solar Sverige AB Also in Sweden, activity levels for contractors within new construction are still dropping, and only current orders are placed. However, the significant Stockholm region has seen rising activity in 2009. Even though Sweden also sees fierce competition for the few projects offered, we have been able to pretty much maintain our market position within the electrical area and even expand activities within hws, owing to the new branches opened in 2008 and Q1 2009. At the moment, the competitive position in the market means that we are not planning further branch establishments, but we will look at the possibilities of geographical expansion regularly. Activity levels within industry seem unchanged compared to Q2. Our efforts to improve hws earnings will continue as planned. At the beginning of October, the Alvesta division was transferred to the group’s IT system SGS (Solar Group Systems) as planned and without interruptions. SGS constitutes a clear improvement in Alvesta compared to the previous system. In addition, the Alvesta brand will no longer be used, and the hws division will be marketed under the name Solar Sverige AB in future. Financial highlights for the group’s subsidiaries € million Q1-Q3 2009 Revenue EBITA Equity Total assets Organic growth EBITA % Q1-Q3 2008 Revenue EBITA Equity Total assets Organic growth EBITA % * Under the cost method /6 Our decision to change transport supplier for both the electrical and hws areas in southern Sweden will take effect in the first half of 2010. Lean implementation continues to produce very satisfactory results. Solar Norge AS In Norway, activity levels for contractors within new construction are also still dropping. However, there is an underlying need for new housing in Norway, and the renovation of commercial buildings and housing results in the market showing weak signs of recovery. Revenue with industry customers continued to be significantly affected by the markedly lower activity level within Norwegian industry in Q3. At present, activity levels seem to have stabilised, although they remain low. Our activities within utilities, offshore and telecommunications partly compensate for the otherwise waning activity level in the market. In addition, the significant efficiency improvements resulting from the restructuring plan implemented in 2008 continue to produce results. Solar A/S parent company* Solar Sverige AB Solar Norge AS Solar Solar Nederland B.V. Deutschland GmbH 268.5 18.2 248.2 414.2 (19.0%) 6.8% 188.0 7.0 31.1 120.1 (5.6%) 3.7% 153.0 7.4 41.3 82.6 (7.5%) 4.8% 272.8 (2.6) 52.6 151.1 (23.1%) (1.0%) 109.2 (2.5) 45.4 58.8 (3.0%) (2.3%) 332.5 28.3 239.0 371.1 8.0% 8.5% 226.2 10.1 35.5 136.1 9.0% 4.5% 182.8 6.3 39.6 95.0 16.3% 3.4% 165.4 6.2 21.0 73.8 3.0% 3.7% 112.6 (0.5) 48.9 65.1 5.2% (0.4%) ** Any adjustment resulting from the translation from cost method to equity method is included under eliminations Solar A/S Quarterly report Q3 2009 / Group report2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=9http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=9Work on optimising the logistics concepts to reduce high freight costs is on schedule. Moreover, Lean implementation is progressing satisfactorily. Solar Nederland B.V. The impact of the recession in the Netherlands and Solar Nederland B.V. is severe, with industry affected in the autumn of 2008, and new construction following suit in 2009. Our earnings performance was impacted negatively by our large stake in the sale of electrical articles to industry as sales to industry reached an all-time low this year. The market is not showing any clear signs of improvement with considerable price competition on the few projects offered resulting in a continued decline of gross profit in Solar Nederland B.V. Furthermore, results in Solar Nederland B.V were affected negatively by € 0.6m due to an error in the unhedged pension obligation statement back in 2006. Vegro B.V., the hws enterprise acquired in Q4 2008, is doing well despite the difficult market terms. The process of integrating Solar Nederland B.V. and Vegro is proceeding according to plan and will generate greater future positive synergies than expected and announced in the autumn of 2008. At present, expectations are raised to € 5.2m in 2010 and € 6.9m in 2011 compared to previous expectations of € 3-4m, while the implementation costs of the plan are expected to total € 5.1m instead of the original estimate of € 5.0-6.0m In addition to this integration process, we focus intensively on making any necessary adjustments to the current market situation and reducing net working capital, which was at a very high level in Vegro at the acquisition date. We expect earnings to improve in 2010, although the integration process, which should be completed at the time of implementation of Solar 8000 in Q4 2010, combined with the current slump will continue to impact the enterprise’s performance. Solar Deutschland GmbH Market development remains negatively impacted by reduced activity levels in the market. Growth continues in the branches in Magdeburg, Hameln and Uelzen, which we opened in H2 2008, but still, these new branches affected EBITA negatively by € 1.0m in Q1-Q3 Solar Suomi Oy Solar Polska Sp. z o.o. P/F Solar Føroyar Aurora Group Eliminations** Solar Group 11.3 (1.5) 1.6 6.1 (25.3%) (13.3%) 16.1 (0.7) 7.5 14.3 (17.0%) (4.3%) 2.9 0.3 2.0 2.9 (40.4%) 10.3% 35.2 (0.9) 3.9 28.7 (5.6%) (2.6%) (5.5) (223.6) (278.1) 1,051.5 24.7 210.0 600.7 (12.9%) 2.3% 15.2 (1.3) 3.8 8.1 (8.5%) (8.6%) 17.0 (0.6) 10.5 14.6 (3.3%) (3.5%) 4.8 0.8 2.5 3.8 14.3% 16.7% 39.8 (0.7) 1.8 29.1 (6.2%) (1.8%) (8.6) (181.4) (232.6) 1,087.7 48.6 221.2 564.1 7.3% 4.5% Solar A/S Quarterly report Q3 2009 / Group report /72009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=10http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=10GROUP REPORT 2009. This negative impact is expected to ease off in 2010, and these branches are expected to contribute positively to earnings from 2011. As work distribution introduced in Q3 has proved less effective than expected, this scheme will be discontinued as from November and further restructuring realised. Solar Polska Sp. z o.o. Work on integrating Eltomont Sp. z o.o., the enterprise acquired in the autumn of 2008, should be completed by the end of 2009, when it will also move to the same IT platform (Axapta) as Solar Polska Sp. z o.o. Industry is hard hit by the general low European levels of activity, and no noticeable improvement of the market situation was seen in Q3. However, the downward trend within new construction activity seems to be improving slightly, and we expect this to continue in future quarters. P/F Solar Føroyar Solar Føroyar recorded a significant drop in activity levels in Q3, and no upturn is in sight for the remainder of the year. Aurora Group Goods at the two warehouses in Norway and Finland have now been transferred to a third-party logistics solution in Jönköping, Sweden, and the resulting service improvements in all of the Aurora Group’s markets have been well received by our customers. Q3 saw a weak upward trend in sales compared to previous quarters, but it remains to be seen if this positive development will continue. Solar Suomi Oy If the divestment of business activities described in company announcement no. 21 is completed, the central warehouse, which we are currently looking for a buyer for, will be the enterprise’s only asset. EXPECTATIONS FOR 2009 In Q3, we have watched credit insurance companies continue to cancel many customers’ insurance policies. There are some signs of stabilisation of industry activities in most countries, but we still expect Q4 2009 to prove challenging with low activity levels across the board. As such, we will continue to focus on reducing interest-bearing liabilities, with the aim of lowering working capital to 16% of revenue by the end of 2009. Investments made will mainly relate to the Solar 8000 project. Solar will adjust its expectations for revenue to between € 1,400m and € 1,420m compared with the previously announced € 1,365m to € 1,430m. EBITA is adjusted to between € 32m and € 36m compared to previous announcements of € 30m and € 38m. We expect to expense approximately € 5.1m under special items in Q4 2009 in connection with the integration plan for Solar Nederland B.V. and Vegro B.V., cf. company announcement no. 20. Moreover, the sale of activities in Solar Suomi Oy is expected to result in costs of approximately € 1.5m, which are also expected to be expensed under special items in Q4 2009, cf. company announcement no. 21. Focus areas in 2009 remain: • profit management • reducing staff costs and other costs • limiting investments • reducing net working capital and interest-bearing debt /8 Solar A/S Quarterly report Q3 2009 / Group report2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=11http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=11EXPECTATIONS FOR 2010 It remains difficult to assess the duration of the crisis, and we expect that we will not see overall positive organic growth in the group until the end of 2010. While renewable energy, lighting, security, communication, offshore and utilities as well as infrastructure are also expected to show relatively high growth rates in 2010, our more traditional and large product areas related to construction such as installation equipment and cables are expected to continue their drop. We do expect sales of industry components to improve slightly in 2010. The market for energy optimisation in existing buildings, including lighting projects, and renovations and upgrades of public buildings in particular, are expected to produce positive growth. We expect 2010 revenue of between € 1,360m and € 1,400m and EBITA between € 46m and € 53m. We will continue to focus on lowering working capital in 2010 with the aim of reducing it to maximum 15% of revenue by the end of 2010. In relation to 2009, the above expectations mean organic growth of around 0% and negative organic growth of up to 5% at worst. Thus, the described expected earnings improvements will only be attributable to restructuring measures implemented in 2008 and 2009 and business activities planned for 2010. 2010 expectations for EBITA include expected Solar 8000 implementation costs of € 3m. In 2010, we will focus on increasing earnings and cash flow through: • profit management • supplier consolidation • acquisitions and business development • increased efficiency, including Solar 8000 implementation • reduced net working capital and interest-bearing debt 2010 expectations for revenue, gross profit and bad debts remain somewhat uncertain. STRATEGY UPDATE Solar has begun to prepare our strategy towards 2015, and we expect to announce this in Q1 2010. While we assume flat or slightly increasing market growth in the first part of the strategy period, the long-term market forecast is difficult to determine. Thus, we aim at ensuring strengthened earnings over the period through increased efficiency in all processes (using the current Solar 8000 business development project as our framework), both internally and in relation to our suppliers and customers. The resulting strengthened earnings combined with high solvency and low financial gearing will ensure Solar’s freedom to invest in select business areas and realise acquisitions designed to create growth exceeding market growth in general. The last phase of the strategy plan focuses on revenue growth well above the standard market level, operating profit at a higher level than that realised in 2005 - 2008, continually reduced net working capital and, consequently, ROIC at a new and higher level than previously seen by the company. Solar A/S Quarterly report Q3 2009 / Group report /92009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=12http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=12GROUP REPORT SOLAR’S SHARES Solar’s share capital is composed of nominally € 12.1m A shares and nominally € 85.7m B shares. As at 30 September 2009, the following shareholders had registered ownership shares or voting rights of 5% or more of the total share capital: Shares 17.0% 10.6% 7.8% Votes 59.9% 5.0% 3.7% Share price development (index) 150 140 130 120 110 100 90 80 70 1/1 2009 M id C ap S ola r 30/9 2009 The Fund of 20th December, Kolding ATP, Hillerød Solar A/S, Kolding Share price development As at 30 September 2009, the price of Solar’s B share was DKK 274 against DKK 191 in early 2009. Financial calendar 2010 10 February – 10 March 10 March 16 April 22 April – 20 May 20 May 22 July – 19 August 19 August 15 October – 12 November 12 November IR quiet period Annual report 2009 Annual general meeting IR quiet period Quarterly report Q1 2010 IR quiet period Quarterly report Q2 2010 IR quiet period Quarterly report Q3 2010 Announcements 2009 excl. insider announcements Date 03.11 28.10 26.08 21.08 20.05 27.04 17.04 17.04 31.03 26.03 12.03 12.03 27.02 No. 21 20 18 15 12 11 10 9 7 6 3 2 1 Announcement Solar Suomi Oy has entered into negotiations about the divestment of its business activities The merger of Solar Nederland B.V. and Vegro B.V. produces greater synergies than expected Financial calendar 2010 for Solar A/S Quarterly report Q2 2009 Quarterly report Q1 2009 Corporate Business Development Director leaves position with Solar Updated Articles of association Course of Annual General Meeting of Solar A/S Notice of Annual General Meeting Issue of options to management employees in Solar A/S Options for management employees in Solar A/S Annual Report 2008 Results for 2008 and expectations for 2009 The presentation of Annual Report 2009 will be transmitted online from NASDAQ OMX Copenhagen A/S on 10 March 2010 at 11:00 CET and will be available at www.solar.eu. Distribution of share capital as at 30 September 2009 in % Distribution of votes as at 30 September 2009 in % The Fund of 20th December, 17.0% ATP, 10.6% Supervisory and executive boards incl. related parties, 3.5% Other Danish shareholders, 35.5% Foreign shareholders, 3.4% Non-registered shareholders, 22.2% Treasury shares, 7.8% The Fund of 20th December, 59.9% ATP, 5.0% Supervisory and executive boards incl. related parties, 2.5% Other Danish shareholders, 16.8% Foreign shareholders, 1.6% Non-registered shareholders, 10.5% Treasury shares, 3.7% /10 Solar A/S Quarterly report Q3 2009 / Group report2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=13http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=13MANAGEMENT’S STATEMENT Today, the supervisory and executive boards discussed and approved Solar A/S’ Q3 2009 quarterly report. The quarterly report, which has not been audited or reviewed by the company’s auditor, is presented in accordance with IAS 34 ”Interim Financial Reporting” as approved by the EU and additional Danish disclosure requirements for quarterly reports of listed companies. It is our opinion that the quarterly report gives a true and fair view of the group’s assets, equity and liabilities and financial position as at 30 September 2009 and of the results of the group’s activities and cash flow for Q3 2009. Furthermore, it is our opinion that the group report contains a true statement of the development in the group’s activities and financial situation, the result for the period and of the group’s financial position as a whole and a description of the most significant risks and uncertainties the group is faced with. Kolding, 18 November 2009 Executive Board Flemming H. Tomdrup CEO Supervisory Board Jens Borum (Chairman) Peter Falkenham (Vice chairman) Kent Arentoft Niels Borum Remy Cramer Bent H. Frisk Preben Jessen Aase Kofoed Jens Peter Toft Solar A/S Quarterly report Q3 2009 / Management’s statement /112009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=14http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=14INCOME STATEMENT Consolidated Q3 Q1-Q3 2009 2008 Year 2008 € million Revenue Cost of sales Gross profit External operating costs Staff costs Loss on trade receivables Earnings before interest, tax, depreciation and amortisation (EBITDA) Depreciation on property, plant and equipment Earnings before interest, tax and amortisation (EBITA) Amortisation of intangibles Earnings before interest and tax (EBIT) Financial income Financial expenses Earnings before tax (EBT) Corporation tax Net profit for the period Other income and costs recognised: Foreign currency translation adjustment at the beginning of the period Foreign currency translation adjustment relating to foreign subsidiaries Value adjustment of hedging instruments before tax Tax on value adjustments Other income and costs recognised, after tax Total income for the period 2009 333.7 (265.9) 67.8 (15.5) (39.2) (0.6) 12.5 (2.9) 9.6 (1.8) 7.8 1.4 (2.7) 6.5 (2.0) 4.5 2008 349.4 1,051.5 1,087.7 1,500.3 (276.5) (834.2) (859.3) (1,188.4) 72.9 (13.5) (37.9) (0.9) 20.6 (2.2) 18.4 (1.7) 16.7 1.1 (3.5) 14.3 (4.3) 10.0 217.3 (48.5) (132.3) (2.9) 33.6 (8.9) 24.7 (5.0) 19.7 6.5 (10.1) 16.1 (6.2) 9.9 228.4 (45.9) (125.1) (2.4) 55.0 (6.4) 48.6 (5.1) 43.5 3.2 (9.1) 37.6 (11.1) 26.5 311.9 (64.4) (170.5) (2.8) 74.2 (9.2) 65.0 (6.7) 58.3 5.5 (18.4) 45.4 (14.4) 31.0 0.1 4.8 (1.3) 0.4 4.0 8.5 0.0 (2.7) (2.3) 0.7 (4.3) 5.7 0.2 7.3 0.1 1.0 8.6 18.5 0.0 (2.2) (0.7) 0.0 (2.9) 23.6 0.2 (14.5) (10.9) 1.6 (23.6) 7.4 Earnings per share in € per share outstanding (EPS) Diluted earnings per share in € per share outstanding (EPS-D) 0.67 0.67 1.48 1.48 1.47 1.47 3.88 3.88 4.55 4.55 /12 Solar A/S Quarterly report Q3 2009 / Accounts2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=15http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=15BALANCE SHEET Consolidated As at 30 Sept. Year-end € million ASSETS Intangibles Property, plant and equipment Investments Non-current assets Inventories Trade receivables Corporation tax receivable Other receivables and prepayments Cash and cash equivalents Current assets Total assets 2009 2008 2008 50.2 176.8 1.0 228.0 140.8 211.7 9.6 9.1 1.5 372.7 600.7 44.2 126.1 0.9 171.2 146.1 227.0 8.9 6.3 4.6 392.9 564.1 45.7 174.4 0.9 221.0 162.0 202.6 6.8 8.4 3.3 383.1 604.1 EQUITY AND LIABILITIES Share capital Reserves Retained earnings Proposed dividends Equity Interest-bearing liabilities Other liabilities Provision for pension obligations Deferred income tax allocation Other provisions Non-current liabilities Interest-bearing liabilities Trade payables Corporation tax payable Other payables and prepayments Current liabilities Liabilities Total equity and liabilities 97.8 (15.3) 127.5 0.0 210.0 136.7 0.2 4.0 20.0 1.0 161.9 32.1 125.3 6.7 64.7 228.8 390.7 600.7 97.6 (0.7) 124.3 0.0 221.2 70.8 0.0 3.8 14.4 0.0 89.0 90.8 108.5 12.7 41.9 253.9 342.9 564.1 97.8 (23.9) 117.6 13.5 205.0 141.4 0.2 3.7 20.7 1.5 167.5 90.9 82.4 1.4 56.9 231.6 399.1 604.1 Solar A/S Quarterly report Q3 2009 / Accounts /132009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=16http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=16CASH FLOW STATEMENT Consolidated Q3 Q1-Q3 2009 9.9 13.9 (0.6) 3.6 6.2 (6.4) (4.2) 22.4 26.4 (1.5) 46.6 93.9 (7.2) (6.1) (0.2) 0.0 (13.5) 0.0 (8.3) (13.5) 0.0 0.0 (21.8) 58.6 (87.6) 0.0 (1.6) (30.6) 2008 26.5 11.5 (0.1) 5.9 11.1 (5.4) (9.4) 40.1 8.6 (29.0) 11.7 31.4 0.0 (6.4) (0.2) 0.0 (6.6) 0.0 (6.6) (17.6) (14.0) (0.6) (38.8) (14.0) (69.6) 0.0 (2.6) (86.2) Year 2008 31.0 15.9 0.8 12.9 14.4 (8.3) (21.4) 45.3 8.0 11.6 (20.6) 44.3 (4.7) (11.2) (0.2) (58.6) (74.7) 54.5 (11.3) (17.6) (13.8) 0.0 11.8 (18.6) (69.6) (1.0) 1.6 (87.6) € million Net profit for the period Depreciation and amortisation Change in provisions and other adjustments Financials, net Corporation tax Financials, net, paid Corporation tax paid Cash flow before change in working capital Change in inventories Change in receivables Change in non-interest bearing liabilities Cash flow from operating activities Net investments in intangibles Net investments in property, plant and equipment Net investments in other investments Acquisition of subsidiaries Cash flow from investing activities Incurrence of non-current interest-bearing liabilities Repayment on non-current interest-bearing liabilities Dividends distributed Purchase and sale of treasury shares Other items Cash flow from financing activities Total cash flow Cash at the beginning of the period Taken over in connection with the acquisition of subsidiaries Foreign currency translation adjustment Cash at the end of the period Cash at the end of the period Cash and cash equivalents Current interest-bearing liabilities Cash at the end of the period 2009 4.5 4.7 0.1 1.3 2.0 (2.1) (1.6) 8.9 10.9 (3.1) 15.3 32.0 (3.1) (1.2) 0.0 0.0 (4.3) 0.0 (3.0) 0.0 0.0 0.0 (3.0) 24.7 (54.3) 0.0 (1.0) (30.6) 2008 10.0 3.9 (0.1) 2.4 4.3 (1.9) (2.4) 16.2 9.3 (0.7) (5.7) 19.1 0.0 (0.4) (0.2) 0.0 (0.6) 0.0 (2.7) 0.0 (4.0) (2.3) (9.0) 9.5 (92.9) 0.0 (2.8) (86.2) 1.5 (32.1) (30.6) 4.6 (90.8) (86.2) 1.5 (32.1) (30.6) 4.6 (90.8) (86.2) 3.3 (90.9) (87.6) /14 Solar A/S Quarterly report Q3 2009 / Accounts2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=17http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=17STATEMENT OF CHANGES IN EQUITY – Consolidated Q3 Q1-Q3 2009 2008 Year 2008 € million STATEMENT OF CHANGES IN EQUITY Equity at the beginning of the period Foreign currency translation adjustment at the beginning of the period Foreign currency translation adjustment relating to foreign subsidiaries Value adjustment of hedging instruments before tax Tax on value adjustments Net income recognised directly in equity Net profit for the period Comprehensive income for the period Distribution of dividend Purchase of treasury shares Other movements Equity at the end of the period specified as follows: Share capital Reserves Retained earnings Proposed dividends Equity at the end of the period 2009 2008 201.5 0.1 4.8 (1.3) 0.4 4.0 4.5 8.5 0.0 0.0 0.0 210.0 219.5 0.0 (2.7) (2.3) 0.7 (4.3) 10.0 5.7 0.0 (4.0) (4.0) 221.2 205.0 0.2 7.3 0.1 1.0 8.6 9.9 18.5 (13.5) 0.0 (13.5) 210.0 229.0 0.0 (2.2) (0.7) 0.0 (2.9) 26.5 23.6 (17.6) (13.8) (31.4) 221.2 229.0 0.2 (14.5) (10.9) 1.6 (23.6) 31.0 7.4 (17.6) (13.8) (31.4) 205.0 97.8 (15.3) 127.5 0.0 210.0 97.6 (0.7) 124.3 0.0 221.2 97.8 (15.3) 127.5 0.0 210.0 97.6 (0.7) 124.3 0.0 221.2 97.8 (23.9) 117.6 13.5 205.0 Solar A/S Quarterly report Q3 2009 / Accounts /152009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=18http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=18NOTES Consolidated Q3 Q1-Q3 2009 2008 Year 2008 € million TREASURY SHARES Holding at the beginning of the period, number of shares Acquisitions in the period Disposals in the period Holding at the end of the period in number of shares Holding at the end of the period in % Acquisition costs at the beginning of the period Acquisitions in the period Disposals in the period Foreign currency translation adjustment in the period Acquisition costs at the end of the period Nominal value at the end of the period Market value at the end of the period 2009 2008 568,220 486,445 568,220 323,420 323,420 0 81,775 0 244,800 244,800 0 0 0 0 0 568,220 568,220 568,220 568,220 568,220 7.8 30.1 0.0 0.0 0.0 30.1 7.6 20.9 7.8 26.2 4.0 0.0 (0.1) 30.1 7.6 26.4 7.8 30.1 0.0 0.0 0.0 30.1 7.6 20.9 7.8 16.2 14.0 0.0 (0.1) 30.1 7.6 26.4 7.8 16.2 13.8 0.0 0.1 30.1 7.7 14.6 The holding of treasury shares is maintained as a cash reserve for any future enterprise acquisitions, for hedging of the company’s share option plan or a reduction of the share capital. In compliance with authority granted by the Annual General Meeting, Solar can acquire up to 10% treasury shares until the annual general meeting in 2010. All treasury shares are held by the parent company. /16 Solar A/S Quarterly report Q3 2009 / Notes2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=19http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=19Acquisition of subsidiaries Q1-Q3 2009 No subsidiaries have been acquired or divested in the period. Q1-Q3 2008 No subsidiaries have been acquired or divested in the period. 2008 As at 6 October 2008, Solar Polska Sp. z o.o. acquired 100% of the share capital and voting rights in the Polish enterprise Eltomont Sp. z o.o. The price of the acquisition of 100% of the shares was € 2.6m. Enterprise value was € 2.8m at normalised working capital. The acquired enterprise is included in Solar’s 2008 financial statements with revenue of € 2.4m and EBITA of € 0.1m. If the enterprise had been owned throughout the financial year, the enterprise would have been included in Solar’s financial statements with revenue of € 8.2m and EBITA of € 0.3m. As at 15 October 2008, Solar Nederland B.V. acquired 100% of the share capital and voting rights in the Dutch enterprise Vegro B.V. The price of the acquisition of 100% of the shares was € 56.0m. Enterprise value was € 93.0m at normalised working capital. The acquired enterprise is included in Solar’s 2008 financial statements with revenue of € 53.1m and EBITA of € 2.8m. If the enterprise had been owned throughout the financial year, the enterprise would have been included in Solar’s financial statements with revenue of € 224.3m and normalised EBITA, adjusted for sales costs, of € 8.1m. Reference is made to note 28 in Annual Report 2008 for further details concerning these acquisitions. Solar A/S Quarterly report Q3 2009 / Notes /172009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=20http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=20QUARTERLY FIGURES Consolidated Q1 2009 Financial and operating data from the income statement (€ million) Revenue Earnings before interest, tax and amortisation (EBITA) Earnings before interest and tax (EBIT) Financials, net Earnings before tax (EBT) Net profit for the period Earnings per share in € per share outstanding (EPS) Earnings per share less amortisation in € per share outstanding Financial and operating data from the balance sheet (€ million) Total assets Net investments in property, plant and equipment Share capital outstanding Equity Interest-bearing liabilities Interest-bearing liabilities, net Financial and operating data from cash flow (€ million) Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Financial ratios (% unless otherwise stated) Revenue growth Organic growth Earnings before interest, tax, depreciation and amortisation (EBITDA) Earnings before interest, tax and amortisation (EBITA) Earnings before interest and tax (EBIT) Operating margin Return on equity (ROE) Return on equity (ROE) excl. amortisation Return on invested capital (ROIC) Return on invested capital (ROIC) excl. amortisation Adjusted market capitalisation/operating profit or loss (EV/EBITA) Equity ratio Intrinsic value in € per share outstanding Share price in € Share price/intrinsic value Share price in DKK Employees Average number of employees (FTE) 2008 373.2 7.6 6.0 (0.9) 5.1 2.9 0.43 0.67 360.8 15.3 13.6 (1.8) 11.8 8.3 1.20 1.44 617.1 2.2 90.1 210.2 196.9 194.1 562.2 3.0 92.4 231.9 150.1 144.3 39.5 (3.4) (2.7) 11.3 (3.0) (6.6) 3.4 (7.1) 2.8 2.0 1.6 0.8 5.6 8.7 3.2 4.8 11.3 34.1 31.3 22.2 0.71 166 13.0 6.7 4.8 4.2 3.8 2.3 14.4 17.4 9.7 11.5 9.1 41.2 33.6 59.7 1.77 445 3,352 2,786 /18 Solar A/S Quarterly report Q3 2009 / Quarterly figures2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=21http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=21Q2 2009 2008 2009 Q3 2008 2008 Q4 2007 344.6 7.5 5.9 (1.4) 4.5 2.5 0.37 0.61 377.5 14.9 13.2 (1.7) 11.5 8.2 1.20 1.45 333.7 9.6 7.8 (1.3) 6.5 4.5 0.67 0.94 349.4 18.4 16.7 (2.4) 14.3 10.0 1.48 1.73 412.6 16.4 14.8 (7.0) 7.8 4.5 0.67 0.91 378.3 23.2 21.5 (2.4) 19.1 14.1 2.03 2.27 600.9 2.7 90.1 201.5 198.9 191.4 573.6 3.0 91.1 219.5 170.0 166.4 600.7 1.2 90.2 210.0 168.8 167.3 564.1 0.4 90.0 221.2 161.6 157.0 604.1 4.8 90.1 205.0 232.3 229.0 542.8 3.8 93.3 229.0 151.7 147.0 22.4 (5.8) (16.1) 1.0 (3.0) (23.2) 32.0 (4.3) (3.0) 19.1 (0.6) (9.0) 12.9 (68.1) 50.6 35.1 (3.8) (5.3) (8.7) (17.2) 3.0 2.2 1.7 0.7 4.9 8.0 3.1 4.8 12.7 33.5 30.0 28.2 0.94 210 13.2 10.4 4.5 3.9 3.5 2.2 14.5 17.5 9.3 11.0 8.5 38.3 32.3 49.8 1.54 372 (4.5) (14.1) 3.7 2.9 2.3 1.3 8.7 12.2 5.4 7.3 10.8 35.0 31.3 36.9 1.18 274 4.0 4.7 5.9 5.3 4.8 2.9 18.2 21.2 11.8 13.6 6.4 39.2 32.9 46.4 1.41 346 9.1 (1.3) 4.7 4.0 3.6 1.1 8.4 11.5 7.4 9.3 6.1 33.9 30.5 25.6 0.84 191 23.1 10.2 6.6 6.1 5.7 3.7 25.3 28.4 16.1 17.8 7.2 42.2 32.9 74.3 2.26 554 3,184 2,861 3,109 2,942 3,461 2,764 Solar A/S Quarterly report Q3 2009 / Quarterly figures /192009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=22http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=22ACCOUNTING POLICIES ACCOUNTING POLICIES Solar A/S’ quarterly report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as approved by the EU and additional Danish disclosure requirements for quarterly reports of listed companies. Except from the below, the accounting policies remain unchanged from Annual Report 2008, which contains a full description of accounting policies on pages 43-47. Key items in the accounts are based on annual contracts, etc. A prudent assessment of the current year’s activities was undertaken during the preparation of the quarterly report. In the quarterly report, corporation tax has been calculated on the basis of pre-tax profits at the expected average tax rate. No calculation of taxable income for the period has been made. No audit or review of the quarterly report has been conducted. Change to accounting policies As from 1 January 2009, Solar A/S has implemented IFRS 8 “Operating Segments”, resulting in changes to the information presented only and not to recognition and measurement. Comparative figures have been restated. IFRS 8 requires that the group’s segment reporting is based on internal operating segments where activities are monitored within products/services, geographic areas, large customers or large subsidiaries. Operating segments are the segments reflected in management reporting which top operational management use for resource allocation and performance control. Solar A/S’ operating segments are made up of strategic business units operating in different geographic locations; each business unit operating independently from the others. Solar A/S has nine reportable segments: Solar A/S (parent incl. Solar Danmark A/S), Solar Sverige AB, Solar Norge AS, Solar Nederland B.V., Solar Deutschland GmbH, Solar Suomi Oy, Solar Polska Sp. z o.o., P/F Solar Føroyar and Aurora Group Danmark A/S. Q3 2009 quarterly report of Solar A/S, CVR no. 15 90 84 16, was published in Danish and English on 18 november 2009 via NASDAQ OMX Copenhagen. In the event of any discrepancy between the Danish and English versions, the Danish version shall prevail. Copyright: Solar, November 2009 Design and layout: Bysted A/S Text: Solar A/S Photo: Scanpix Print: Arco Grafisk/Multiservice Kolding /20 Solar A/S Quarterly report Q3 2009 / Accounting policies2009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=23http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=232009-11-18T07:22:52+01:00http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=24http://ipaper.ipapercms.dk/solargroup/solar/Q32009report/Q32009UK/?Page=24Solar A/S Haderslevvej 25 DK - 6000 Kolding Phone: +45 76 30 42 00 CVR. no. 15 90 84 16 www.solar.eu2009-11-18T07:22:52+01:00