No. 3 2017 Annual Report 2016 LEI: 21380031XTLI
Post# of 301275
LEI: 21380031XTLI9X5MTY9
Revenue and EBITA for 2016 were on par with our expectations. The Board of Directors will propose 2016 dividends distribution of DKK 12 per share at the annual general meeting, equal to a payout ratio of 70%. Audio webcast and teleconference today at 14:00 CET.
CEO Anders Wilhjelm says: "We are pleased with our organic growth in Q4 and the continued positive development in net working capital. 2016 EBITA was, as expected, impacted by costs from growth initiatives and non-recurring costs, as we want to invest in future growth and operational excellence. In Solar, we remain focused on productivity improvement and digitalisation - both in relation to our customers and to Solar. With more than half of our business being online, digitalisation is the norm in Solar. We embrace it and focus our activities and solutions on improving customer experience, simplifying and facilitating customer routines, and reducing waste and inefficiency."
| Financial highlights (DKK million)* | Q4 2016 | Q4 2015 | 2016 | 2015 |
| Revenue | 3,010 | 2,819 | 11,072 | 10,587 |
| EBITA | 102 | 99 | 278 | 296 |
| Earnings before tax | 79 | 66 | 188 | 201 |
| Cash flow from operating activities | 437 | 524 | 219 | 331 |
| Financial ratios (%) | ||||
| Organic growth adj. for number of working days | 4.3 | 1.5 | 1.8 | 5.2 |
| EBITA margin | 3.4 | 3.5 | 2.5 | 2.8 |
| Net working capital, period-end/revenue (LTM) | 9.0 | 9.3 | 9.0 | 9.3 |
| Net working capital, average/revenue (LTM)** | 10.7 | 11.8 | 10.7 | 11.8 |
| Gearing (NIBD/EBITDA), no. of times | 0.1 | -0.5 | 0.1 | -0.5 |
| Return on invested capital (ROIC) | 7.5 | 8.5 | 7.5 | 8.5 |
| * Due to our divestment of the assets of Solar Deutschland GmbH, 2015 and 2016 figures in this announcement relate to our continuing operations. ** Calculated as an average of the past four quarters' inventories, trade receivables and trade payables. | ||||
2016 Revenue
- Organic growth fell to 1.8% from 5.2% in 2015 adjusted for the number of working days. However, organic growth in Q4 rose to 4.3% from 1.5% in Q4 2015 adjusted for the number of working days.
2016 EBITA
- Operational EBITA ended at DKK 302m.
- Growth initiatives in innovation and development of approximately DKK 20m, and non-recurring costs of approximately DKK 15m, as well as positive one-off amounting to DKK 11m.
- EBITA net these effects ended at DKK 278m, which was on par with expectations.
- Compared to 2015, the increase in both external operating costs and staff costs was mainly related to the acquisitions of MAG45 and EBS, innovation and development as well as non-recurring costs of which DKK 6m in restructuring costs was included in Q4.
- In addition, MAG45's strategy of identifying growth opportunities was brought forward, which means that costs relating to recruitment and restructuring were also brought forward.
- However, we also saw a positive net impact of DKK 5m from the change in pension obligations in Q4 compared to a positive net impact of DKK 9m in 2015.
Dividends distribution
- At the annual general meeting, the Board of Directors will propose dividends distribution of DKK 12.00 per share, up from DKK 10.00 distributed in 2016.
2017 outlook
- We expect a revenue of approximately DKK 11.4bn, equal to an organic growth of approximately 3%.
- We expect an operational EBITA of approximately DKK 345m, but also expect to spend approximately DKK 25m on innovation and business developments and approximately DKK 20m on structural changes.
- Consequently, we expect EBITA of approximately DKK 300m.
| DKK million | Guidance 2017 | Actual 2016 |
| Operational EBITA | 345 | 302 |
| Innovation and business development | -25 | -20 |
| Non-recurring costs | -20 | -15 |
| Positive one-offs | 0 | 11 |
| EBITA | 300 | 278 |
- The return from investments made in BIMobject, Viva Labs, Minuba and GenieBelt will be reported separately.
Audio webcast and teleconference today The presentation of Annual Report 2016 will be made in English on 10 February 2017 at 14:00 CET. The presentation will be transmitted as an audio webcast and accessible via www.solar.eu. 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
Anders Wilhjelm
Contacts: CEO Anders Wilhjelm - 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
Enclosures: Annual Report 2016, pages 1-130 + Q4 2016 Quarterly information, pages 1-10. Please see Annual Report 2016 for comments on Q4 2016.
Facts about Solar Solar Group is a leading European 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 approximately DKK 11.1bn in 2016 and has some 3,000 employees. Solar has been listed on Nasdaq Copenhagen since 1953, and operates under the short designation SOLAR B. For more information, please visit www.solar.eu .
Disclaimer This announcement was published in English and Danish today via Nasdaq Copenhagen. In the event of any inconsistency between the two versions, the English version shall prevail.
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