No. 2 2022 Annual Report 2021
In 2021, we achieved a 43% increase in EBITDA, which slightly exceeded our expectations. At the Annual General Meeting, the Board of Directors will propose a 2021 dividend distribution of DKK 45 per share.
CEO Jens Andersen says:
"Our 2021 result reflects strong performance across all our segments driven by our strategic focus areas. This echoes in the 43% increase in EBITDA, which totalled DKK 911m, and our EBITDA margin of 7.4%.
With our strong financial performance in mind we propose a dividend payment of DKK 329m.
We have set an ambition to reach net zero in scope 1+2 already in 2030. As a part of our road to net zero we expect to introduce our Science Based Targets initiative targets within 2022.
In addition, I would like to thank my colleagues for their dedication and commitment to Solar. Every single one of you has made a difference and contributed to the results. This gives me great hope for the future and reinforces my firm belief in: Solar - Stronger Together.”
| Financial highlights (DKK million) | Q4 2021 | Q4 2020 | 2021 | 2020 |
| Revenue | 3,380 | 3,057 | 12,354 | 11,465 |
| EBITDA | 259 | 191 | 911 | 637 |
| EBITA | 212 | 145 | 727 | 455 |
| Earnings before tax | 184 | -7 | 622 | 300 |
| Cash flow from operating activities | 558 | 432 | 783 | 813 |
| Financial ratios (%) | ||||
| Organic growth adj. for number of working days | 7.1 | -2.1 | 5.9 | -2.0 |
| EBITDA margin | 7.7 | 6.2 | 7.4 | 5.6 |
| EBITA margin | 6.3 | 4.7 | 5.9 | 4.0 |
| Net working capital, end of period/revenue (LTM) | 10.2 | 9.7 | 10.2 | 9.7 |
| Gearing (NIBD/EBITDA), no. of times | 0.0 | 0.2 | 0.0 | 0.2 |
| Return on invested capital (ROIC) | 24.6 | 13.8 | 24.6 | 13.8 |
2021 revenue
- Adjusted organic growth amounted to 5.9% (-2.0%) due to strong performance in all main segments partly offset by our Better Business initiatives. Adjusted for the Better Business impact, organic growth was approx. 8%.
2021 EBITDA
- EBITDA increased by DKK 274m to DKK 911m compared to 2020.
- EBITDA was supported by an increase in our four strategic focus areas: Concepts, Industry, Climate & Energy and Trade and by positive one-off price effects combined with a solid growth level.
- EBITDA was impacted by non-recurring income of net DKK 112m. Adjusted for this EBITDA amounted to DKK 799m.
Dividend distribution
- At the Annual General Meeting, the Board of Directors will propose dividend distribution of DKK 45.00 per share, corresponding to a pay-out ratio of 62%.
- Furthermore, the Board of Directors asks for authorisation to decide on distribution of extraordinary dividend of up to DKK 50.00 per share.
2022 outlook
- We expect revenue of approx. DKK 12,750m equal to an organic growth of approx. 3%.
- Better Business initiatives are expected to reduce revenue by approx. DKK 200m adjusted for this the growth amounts to approx. 5%.
- We expect an EBITDA of approx. DKK 850m.
See the assumptions on page 9 in Annual Report 2021.
Audio webcast and teleconference today
The presentation of Annual Report 2021 will be made in English on 10 February 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 9271
US: tel. +1 631 913 1422 Pin: 4158 3571#
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
Enclosure: Annual Report 2021, pages 1-150, including Q4 2021 quarterly information.
Facts about Solar
Solar is a leading European sourcing and services company mainly within electrical, heating & plumbing and climate & 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.
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