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No. 1 2019 Annual Report 2018

1 2019    ·    7. February, 2019

LEI: 21380031XTLI9X5MTY92

Our core business delivered growth and EBITA above the 2017 level. Also our related business delivered growth, but did, however, dilute earnings. The Board of Directors will propose 2018 dividends distribution of DKK 14 per share at the Annual General Meeting.

CEO Jens Andersen says:
“In 2018, we had to adjust our expectations. However, our core business delivered the best EBITA since 2010. Furthermore, our guidance for 2019 confirms that we expect continuous improvement of our business in order to reach our 2020 financial targets. Digitalisation, the green transition and urbanisation benefit our business and we aim to provide best in class solutions to ensure sustainable and responsible use of resources. In 2019, Solar will celebrate its 100th anniversary. For all these years, Solar has been adapting to change and challenging the industry and we will keep doing just that.”

Financial highlights
(DKK million)*
Q4 2018 Q4 2017

Revenue 3,009 2,967 11,098 11,061
EBITA 109 90 327 310
Earnings before tax 54 -50 237 176
Cash flow from operating activities 327 279 224 7
Financial ratios (%)
Organic growth adj. for number of working days 2.5 7.1 2.2 7.0
EBITA margin 3.6 3.0 2.9 2.8
Net working capital, period-end/revenue (LTM) 9.8 9.7 9.8 9.7
Gearing (NIBD/EBITDA), no. of times 1.2 1.3 1.2 1.3
* Due to the divestments of our Austrian and Belgian business activities, GFI GmbH and Claessen ELGB NV, and the planned divestment of our Norwegian training business, STI, 2017 and 2018 figures in this announcement relate to our continuing operations.

2018 Revenue

  • In 2018, adjusted organic growth amounted to 2.2% (7.0%).
  • Related business saw adjusted organic growth of more than 28%, while adjusted organic growth in core business amounted to 1.1%.

2018 EBITA

  • EBITA from core business amounted to DKK 348m (DKK 340m), while related business diluted EBITA by DKK -21m (DKK -30m).
  • Despite salary inflation, total costs were reduced by DKK 53m. Of this, approx. DKK 33m can be explained by the development in exchange rates.MAG45 increased costs by a total of DKK 25m to support growth. Our cost containment programme thereby delivered savings of DKK 45m.

Dividends distribution

  • At the Annual General Meeting, the Board of Directors will propose dividends distribution of DKK 14.00 per share, up from DKK 10.00 distributed in 2018.

2019 outlook

  • For 2019, we expect revenue of approx. DKK 11.35bn corresponding to organic growth of approx. 2% and EBITA of approx. DKK 365m.
  • For core business, we expect a revenue of approx. DKK 10.7bn corresponding to an organic growth of approx. 1.5% and EBITA of approx. DKK 370m.
  • For the related business, we expect a revenue of approx. DKK 650m corresponding to an organic growth of approx. 15% and EBITA of approx. DKK -5m.
Guidance 2019
DKK million
Core business Related business Solar Group
Revenue 10,700 650 11,350
EBITA 370 -5 365

Financial targets

  • Due to the required implementation of IFRS 16, Leases as at 1 January 2019, we performed a technical recalculation of our financial targets for 2020, which are stated in the Annual Report.

Audio webcast and teleconference today
The presentation of Annual Report 2018 will be made in English on 7 February 2019 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be available at Participation will be possible via a teleconference.

Teleconference call-in numbers:

DK: tel. +45 354 455 83
UK: tel. +44 203 194 0544
US: tel. +1 855 269 2604

Yours faithfully,
Solar A/S

Jens Andersen

CEO Jens Andersen - tel. +45 79 30 02 01

CFO Michael H. Jeppesen - tel. +45 79 30 02 62

Director, Stakeholder Relations Charlotte Risskov Kræfting - tel. +45 40 34 29 08

Enclosure: Annual Report 2018, pages 1-146, including Q4 2018 quarterly information.

Facts about Solar
Solar Group is a leading sourcing and services company. Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses.

Being a sourcing and services company, we focus on each individual customer. We always strive to understand our customers’ unique and genuine needs in order to provide relevant, personal and value-adding services, turning our customers into winners.

Solar Group is headquartered in Denmark, generated revenue of more than DKK 11bn in 2018 and has approx. 3,000 employees. Solar is listed on Nasdaq Copenhagen and operates under the short designation SOLAR B. For more information, please visit

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.



Charlotte Risskov KræftingDirector, Stakeholder Relations