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No. 18 2019 Quarterly Report Q3 2019

18 2019    ·    31. October, 2019

Q3 revenue exceeded our expectations and Q3 EBITA was on par with our expectations. We reconfirm our EBITA guidance for 2019.

CEO Jens Andersen says:
"In Q3, core business exceeded our expectations and delivered adjusted organic growth of 6.8%. We saw positive adjusted organic growth in all entities. EBITA from core business was up by more than 12% driven by improvements in Solar Norge and Solar Nederland. Consequently, we increase our EBITA guidance for core business by DKK 10m to DKK 380m.

We keep focusing on energy-efficient solutions to drive the green transition. Our green and digital approach combined with our TCO mindset underpin a responsible use of resources in all aspects.

In our related business, MAG45 results were unsatisfactory and we have initiated a strategic review of MAG45.”

Financial highlights
(DKK million)*
Q3 2019Q3 2018Q1-Q3
Earnings before tax-27047183
Cash flow from operating activities144-23-5-103

Financial ratios (%)
Organic growth adj. for number of working days6.3-
EBITA margin3.
Net working capital, period-end/revenue (LTM)12.611.812.611.8
Gearing (NIBD/EBITDA), no. of times2.
* Due to the divestments of our Austrian and Belgian business activities, GFI GmbH and Claessen ELGB NV, in 2018, and the divestment of our Norwegian training business, STI, in Q1 2019, 2018 and 2019 figures in this announcement relate to our continuing operations.

Q3 2019 Revenue

  • Revenue exceeded our expectations.
  • Adjusted organic growth amounted to 6.3% (-0.3%).

Q3 2019 EBITA

  • EBITA was on par with our expectations.
  • EBITA from core business was up at DKK 111m (DKK 99m) driven by improvements in Solar Norge and Solar Nederland.
  • EBITA from related business was unchanged at DKK -6m (DKK -6m). MAG45 results were unsatisfactory in Q3 due to lower-than-expected revenue. The result in Q3 is affected by restructuring costs of approx. DKK 2m.

BIMobject AB valuation

  •  Based on the share price on 30 September 2019, the BIMobject value amounted to DKK 129m. Thus, Solar identified a need for write-down of DKK 70m in Q3 2019. In Q3 2018, we reversed the write-down of DKK 15m on BIMobject originally recognised in Q2 2018.

2019 outlook

  • Our group revenue guidance has been changed from at least DKK 11.6bn to approx. DKK 11.75bn with an organic growth of approx. 5% and we reconfirm our group EBITA guidance of approx. DKK 365m.
  • For core business, we increase the revenue guidance from at least DKK 10.950bn to approx. DKK 11.2bn corresponding to organic growth of approx. 5% and we increase the EBITA guidance from approx. DKK 370m to approx. DKK 380m. The increase is mainly driven by a slightly higher growth than expected.
  • For related business, we have revised our revenue guidance from DKK 650m to approx. DKK 550m and organic growth around 0% and we have revised our EBITA guidance from DKK -5m to approx. DKK -15m due to decreasing growth.
Guidance 2019
DKK million
Related businessSolar
Former revenue guidance10,95065011,600
Current revenue guidance11,20055011,750
Former EBITA guidance370-5365
Adjustment 10-100
Current EBITA guidance380-15365

Audio webcast and teleconference today
The presentation of Quarterly Report Q3 2019 will be made in English on 31 October 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: Quarterly Report Q3 2019, pages 1-33.

Facts about Solar
Solar is a leading European sourcing and services company mainly within electrical, heating and plumbing, ventilation and climate and 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 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