This is Solar

Statements, not audited, part of Management review

Summary for the Solar Group

2020-2024

Income statement (DKK million)	2024	2023	2022	2021	2020
Revenue	12,223	13,031	13,863	12,354	11,465
Earnings before interest, tax, depreciation and amortisation (EBITDA)	646	871	1,175	911	637
Earnings before interest, tax and amortisation (EBITA)	400	648	978	727	455
Earnings before interest and tax (EBIT)	278	558	909	672	248
Financials, net	-85	-90	-50	-48	-40
Earnings before tax (EBT)	192	468	858	622	300
Net profit for the year	148	348	660	531	222
Balance sheet (DKK million)	2024	2023	2022	2021	2020
Non-current assets	1,900	1,893	1,564	1,415	1,339
Current assets	4,208	4,219	4,337	3,890	3,268
Balance sheet total	6,108	6,112	5,901	5,305	4,607
Total equity	1,874	1,982	1,931	1,952	1,696
Non-current liabilities	878	908	709	435	498
Current liabilities	3,356	3,222	3,261	2,918	2,413
Interest-bearing liabilities, net	1,232	1,157	1,074	-37	128
Invested capital	3,089	3,120	2,978	1,866	1,760
Net working capital, year-end	1,693	1,907	2,205	1,259	1,109
Net working capital, average	1,831	2,193	2,010	1,363	1,322
Cash flow (DKK million)	2024	2023	2022	2021	2020
Cash flow from operating activities	538	855	16	783	813
Cash flow from investing activities	-265	-405	-259	-191	162
Cash flow from financing activities	-255	-175	-82	-515	-627
Net investments in intangible assets	-154	-102	-59	-58	-50
Net investments in property, plant and equipment	-101	-169	-167	-125	-25
Acquisition and divestment of subsidiaries and operations, net	-10	-133	-34	0	0

Financial ratios (% unless otherwise stated)	2024	2023	2022	2021	2020
Revenue growth	-6.2	-6.0	12.2	7.8	-1.8
Organic growth	-6.3	-3.3	12.9	6.4	-1.2
Organic growth adjusted for number of working days	-6.4	-2.6	12.9	5.9	-2.0
Gross profit margin	20.6	22.5	23.4	22.4	21.0
EBITDA margin	5.3	6.7	8.5	7.4	5.6
EBITA margin	3.3	5.0	7.1	5.9	4.0
EBIT margin	2.3	4.3	6.6	5.4	2.2
Effective tax rate	22.7	25.6	23.1	14.6	26.0
Net working capital (year-end NWC)/revenue	13.9	14.6	15.9	10.2	9.7
Net working capital (average NWC)/revenue		16.8	14.5	11.0	11.5
Gearing (net interest-bearing liabilities/EBITDA), no. of times	1.9	1.3	0.9	0.0	0.2
Return on equity (ROE)	8.0	18.0	34.0	29.1	13.5
Return on invested capital (ROIC)	8.3	13.2	25.5	24.6	13.8
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)	8.4	7.0	5.7	7.8	5.8
Equity ratio	29.9	31.6	32.7	36.8	36.8

Financial statements

Summary for the Solar Group Statement of comprehensive income Balance sheet Cash flow statement Statement of changes in equity
Notes

Separate financial statements

Statements, not audited, part of Management review

Summary for the Solar Group

2020-2024 – continued

Share ratios (DKK unless otherwise stated)	2024	2023	2022	2021	2020	Definitions
Earnings per share outstanding (EPS)	20.68	47.51	90.37	72.72	30.42
Intrinsic value per share outstanding	250.30	264.54	264.41	267.28	232.38
Cash flow from operating activities per share outstanding	73.67	117.07	2.19	107.23	111.40	Organic growth
Share price	299.27	465.71	622.62	795.05	353.70	adjusted for number of working days
Share price/intrinsic value	1.20	1.76	2.35	2.97	1.52
Ordinary dividend per share	15.00	30.00	45.00	45.00	28.00
Extraordinary dividend per share	-	-	-	45.00	15.00	Return on invested capital (ROIC)
Total dividend in % of net profit for the year (payout ratio)	72.1	63.1	49.8	123.8	141.1
Price Earnings (P/E)	14.5	9.8	6.9	10.9	11.6

Organic growth	Revenue growth adjusted for enterprises acquired and sold off and any exchange rate changes. No adjustments have been made for number of working days.
Organic growth adjusted for number of working days	Revenue growth adjusted for enterprises acquired and sold off and any exchange rate changes and number of working days.
Net working capital	Inventories and trade receivables less trade payables.
Return on invested capital (ROIC)	Return on invested capital calculated on the basis of EBIT exclusive impairment on goodwill less tax calculated using the effective tax rate adjusted for one-off effects, if any.

Employees	2024	2023	2022	2021	2020
Average number of employees (FTEs)	2,899	3,036	3,019	2,908	2,935

In all material aspects financial ratios are calculated in accordance with the Danish Finance Society's "Recommendations & Financial Ratios".

Consolidated financial statements Summary for the Solar Group

Statement of comprehensive income

Financial statements

Statements, not audited, part of Management review

Statement of comprehensive income

Notes	DKK million	2024	2023
	2.1, 2.2 Revenue	12,223	13,031
	Cost of sales	-9,702	-10,101
	Gross profit	2,521	2,930
	Other operating income	88	0
5.4	External operating costs	-369	-399
2.3	Staff costs	-1,580	-1,643
2.4	Loss on trade receivables	-14	-17
	Earnings before interest, tax, depreciation and amortisation (EBITDA)	646	871
2.5	Depreciation and write-down on property, plant and equipment	-246	-223
	Earnings before interest, tax and amortisation (EBITA)	400	648
2.5	Amortisation and impairment of intangible assets	-122	-90
	Earnings before interest and tax (EBIT)	278	558
3.4	Share of net profit from associates	-1	0
4.5	Financial income	63	65
4.6	Financial expenses	-148	-155
	Earnings before tax (EBT)	192	468
2.6	Income tax	-44	-120
2.7	Net profit for the year	148	348
	Attributable to:
	Shareholders of Solar A/S	151	347
	Non-controlling interests	-3	1
	Net profit for the year	148	348

4.3	Earnings in DKK per share outstanding (EPS) for the year	20.68	47.51
4.3	Diluted earnings in DKK per share outstanding (EPS-D) for the year	20.60	47.34

Income statement Other comprehensive income

DKK million	2024	2023
Net profit for the year	148	348

Other income and costs recognised:

Items that can be reclassified to the income statement
Foreign currency translation adjustments of foreign subsidiaries	-36	-13
Fair value adjustments of hedging instruments before tax		-5
Tax on fair value adjustments of hedging instruments	0	1
Other income and costs recognised after tax	-36	-17
Total comprehensive income for the year	112	331

Attributable to:
Shareholders of Solar A/S	115	330
Non-controlling interests	-3	1
Total comprehensive income for the year	112	331

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Financial statements

Balance sheet Cash flow statement Statement of changes in equity

Statements, not audited, part of Management review

Balance sheet

As at 31 December

Notes	DKK million	2024	2023	Notes	DKK million	2024	2023
	Assets				Equity and liabilities
3.1	Intangible assets	381	348	4.1	Share capital	736	736
3.2	Property, plant and equipment	1,070	1,066		Reserves	-234	-198
3.3	Right-of-use assets	408	440		Retained earnings	1,216	1,175
2.6	Deferred tax assets	11	7		Proposed dividends for the financial year	110	219
3.4	Investments in associates	3	4		Equity attributable to shareholders of Solar A/S	1,828	1,932
	Other non-current assets	27	28		Non-controlling interests	46	50
	Non-current assets	1,900	1,893		Total equity	1,874	1,982

3.5	Inventories	1,888	2,029	4.4	Interest-bearing liabilities	425	434
3.6	Trade receivables	1,657	1,648		3.3, 4.4 Lease liabilities	284	320
	Income tax receivable	20	25	2.6	Provision for deferred tax	157	143
3.7	Contract assets	4	0	3.8	Other provisions	12	11
	Other receivables	107	17		Non-current liabilities	878	908
	Prepayments	73	59
	Cash at bank and in hand	459	441	4.4	Interest-bearing liabilities	841	714
	Current assets	4,208	4,219		3.3, 4.4 Lease liabilities	141	130
					Trade payables	1,852	1,770
	Total assets	6,108	6,112		Income tax payable	8	54
				3.7	Contract liabilities	35	0
				3.9	Other payables	462	520
					Prepayments	8	13
				3.8	Other provisions	9	21
					Current liabilities	3,356	3,222
					Liabilities	4,234	4,130

					Total equity and liabilities	6,108	6,112

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income Balance sheet Cash flow statement

Financial statements

Statement of changes in equity Notes

Statements, not audited, part of Management review

Cash flow statement

Notes	DKK million	2024	2023
	Net profit for the year	148	348
2.5	Depreciation, write-down, amortisation and impairment	368	313
	Changes to provisions and other adjustments	-103	5
	Share of net profit from associates	1	0
	4.5, 4.6 Financials, net	85	90
	Income tax	44	120
4.5	Financial income, received	33	30
4.6	Financial expenses, settled	-114	-106
	Income tax, settled	-69	-138
	Cash flow before working capital changes	393	662

	Working capital changes
	Inventory changes	113	230
	Receivables changes	-64	182
	Non-interest-bearing liabilities changes	96	-219
	Cash flow from operating activities	538	855
	Investing activities
3.1	Purchase of intangible assets	-154	-102
	Purchase of property, plant and equipment	-162	-170
	Disposal of property, plant and equipment	61	1
	Acquisition of associates	0	-1
5.6	Acquisition of subsidiaries and activities	-10	-133
	Cash flow from investing activities	-265	-405

Notes	DKK million	2024	2023
	Financing activities
	4.4, 4.6 Repayment of non-current interest-bearing debt	-9	-9
4.4	Raising of non-current interest-bearing liabilities	100	150
4.4	Change in current interest-bearing debt	11	149
	3.3, 4.4 Instalment on lease liabilities	-137	-136
	Dividends paid to shareholders of Solar A/S	-219	-329
	Dividends paid to non-controlling interests	-1	0
	Cash flow from financing activities	-255	-175

	Total cash flow	18	275
	Cash at bank and in hand at the beginning of the year	441	166
	Cash at bank and in hand at the end of the year	459	441

1

Statement of changes in equity

Financial statements			Reserves for	Reserves for foreign currency			Equity attributable to
Consolidated financial statements			hedging	translation	Retained	Proposed	Shareholders	Non-controlling
Summary for the Solar Group	DKK million 2024	Share capital	transactions1	adjustments1	earnings	dividends	of Solar A/S	interests	Total equity
Statement of comprehensive income	Equity as at 1 January	736	-13	-185	1,175	219	1,932	50	1,982
Balance sheet
Cash flow statement	Foreign currency translation adjustments of foreign subsidiaries			-36			-36		-36
Statement of changes in equity	Fair value adjustments of hedging instruments before tax		0				0		0
Notes	Tax on fair value adjustments		0				0		0
	Net income recognised in equity via other comprehensive income in the statement of comprehensive income	0	0	-36	0	0	-36	0	-36
Separate financial statements	Net profit for the year				41	110	151	-3	148
Group companies overview	Comprehensive income	0	0	-36	41	110	115	-3	112
Statements and reports
Statements, not audited,	Distribution of dividends (DKK 30.00 per share)					-219	-219		-219
part of Management review	Distribution of dividends non-controlling interests							-1	-1
	Transactions with the owners	0	0	0	0	-219	-219	-1	-220
	Equity as at 31 December	736	-13	-221	1,216	110	1,828	46	1,874

1) Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income Balance sheet Cash flow statement

Statement of changes in equity Notes

Financial statements

Statements, not audited, part of Management review

Statement of changes in equity – continued

Share capital	Reserves for hedging transactions1	Reserves for foreign currency translation adjustments1	Retained earnings	Proposed dividends	Equity attributable to Shareholders of Solar A/S	Non-controlling interests	Total equity

736	-9	-172	1,047	329	1,931	0	1,931
		-13			-13		-13
	-5				-5		-5
	1				1		1
0	-4	-13	0	0	-17	0	-17
			128	219	347	1	348
0	-4	-13	128	219	330	1	331
				-329	-329		-329
					0	49	49
0	0	0	0	-329	-329	49	-280
736	-13	-185	1,175	219	1,932	50	1,982

1) Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.

Financial statements

Section 1 – Basis for preparation Section 2 – Income statement

Statements, not audited, part of Management review

Section 1 Summary for the Solar Group Statement of comprehensive income Balance sheet Cash flow statement

Statement of changes in equity

Notes
Section 1 Basis for preparation Section 2 – Income statement Section 3 – Invested capital

Statements, not audited, part of Management review

1.1 General accounting policies

The consolidated financial statements of Solar A/S for 2024 are presented in accordance with the International Financial Reporting Standards (IFRSs) as approved by the EU and additional Danish disclosure requirements for annual reports of listed companies and the IFRS executive order issued in accordance with the Danish Financial Statements Act.

Section 1 – Basis for preparation

The consolidated financial statements have been prepared using the historical cost formula with the exception of derivative financial instruments and investments in equity instruments, which are measured at fair value, as well as non-current assets and groups of assets held for sale, which are measured at the lowest value of the book value before changes in classification or fair value less sales costs.

The accounting policies described below have been applied consistently in the financial year and to the comparative figures.

Implementation of new financial reporting standards

IASB has issued a number of amendments and improvements to existing standards which have become effective in the period. These changes have no impact on Solar's accounting policies.

Presentation currency

The annual report is presented in Danish kroner rounded off to the nearest 1,000,000 Danish kroner. Danish kroner is the parent company's functional currency.

Translation of foreign currency items

A functional currency has been set for each reporting group entity. The functional currencies are the currencies used in the primary economic environments in which each individual reporting entity operates. Transactions in other currencies than the functional currency are considered transactions in foreign currencies.

Transactions in foreign currency are translated at first recognition to the functional currency at the exchange rate prevailing at the date of the transaction. Differences between the exchange rate prevailing on the date of the transaction and the exchange rate on the payment date are recognised in the income statement as items under financial income and expenses.

All monetary items in foreign currencies that have not been settled on the balance sheet date are translated into the functional currencies using the exchange rates on the balance sheet date. Any difference between the exchange rate prevailing on the date of the transaction and the balance sheet date exchange rate are recognised in the income statement as items under financial income and expenses.

When recognising entities with different functional currencies than Danish kroner in the consolidated financial statements, the income statements are translated at the exchange rate prevailing on the date of the transaction and balance sheet items are translated at the balance sheet date exchange rates. The average rate of exchange for the individual months is

used as exchange rate prevailing on the date of the transaction when this does not result in a considerably different presentation. Exchange rate differences, from translation of these entities' equity at the beginning of the year at the balance sheet date exchange rates and in connection with the translation of income statements from the exchange rate prevailing at the date of transaction to the balance sheet date exchange rates, are recognised directly in other comprehensive income as a separate reserve for foreign currency translation adjustments.

When translating investments in associates with a functional currency other than Danish kroner in the consolidated financial statement, the group's share of comprehensive income is translated at the average exchange rates and the share of equity, including goodwill, is translated at the exchange rate on the balance sheet date.

The exchange rate difference resulting from the translation of the share of foreign associates' equity at the beginning of the year at the exchange rate on the balance sheet date and the translation of the share of comprehensive income from the average exchange rates to the exchange rate prevailing on the balance sheet date is recognised in other comprehensive income and presented in a separate reserve for foreign currency translation adjustments under equity. The cumulative currency translation adjustment is recycled to the income statement upon disposal of the investment.

Consolidated financial statements

The consolidated financial statements include the financial statements of the parent company Solar A/S and subsidiaries in which Solar A/S has power over the investee, exposure to variable returns and the ability to use its power over the investee to affect the returns.

The consolidated financial statements have been prepared as an aggregation of the parent company and the individual subsidiaries' financial statements and in accordance with the group's accounting policies. Intercompany revenue, other intercompany operating items, intercompany balances, profit and loss from transactions between the consolidated entities as well as internal equity investments are eliminated.

Solar recognises non-controlling interests in an acquired entity either at fair value or at the non-controlling interest's proportionate share of the acquired entity's net identifiable assets. This decision is made on an acquisition-by-acquisition basis.

The accounting items of subsidiaries are included in full in the consolidated financial statements. Non-controlling interests' share in the results and equity of subsidiaries is included in the Group's profit/loss and equity but an allocation is shown separately in the consolidated income statement statement of other comprehensive income, balance sheet and statement of changes in equity respectively.

Solar A/S Annual Report 2024

Consolidated financial statements Summary for the Solar Group

Statement of comprehensive income Balance sheet

Cash flow statement Statement of changes in equity

Notes
Section 1 Basis for preparation Section 2 – Income statement Section 3 – Invested capital

Statements, not audited, part of Management review Entities over which the group has significant influence but not control over operational and financial decisions are classified as associates. Significant influence typically exists when the group directly or indirectly holds more than 20% of voting rights, but less than 50%. However, for each investment an individual assessment on the classification will be performed. The assessment will be based on our part of the voting rights and our representation on Board of Directors. If such an assessment concludes that we have insignificant influence then the investment is classified as other non-current assets.

The group's share of the associates' earnings after tax and the elimination of the proportional share of internal profit/loss is recognised in the income statement. The group's share of the associates' other comprehensive income is recognised in other comprehensive income.

When obtaining significant influence over an entity in which the group has previously held an interest accounted for as a financial asset, the fair value as of the date when the group obtained significant influence is deemed as cost under the equity method.

Statement of comprehensive income

Solar A/S presents the statement of comprehensive income in two statements. An income statement and a statement of comprehensive income that show the year's results and income that forms part of other comprehensive income. Other comprehensive income includes exchange rate adjustments,

adjustments of investments in associates and hedging transactions.

Cash flow statement

The cash flow statement shows cash flow distributed on operating, investing and financing activities for the year, changes in cash and cash equivalents, and cash at bank and in hand at the beginning and end of the year.

The effect of cash flow on the acquisition and divestment of entities is shown separately under cash flow from investing activities. Cash flow from acquired entities is recognised in the cash flow statement from the date of acquisition and cash flow from divested entities is recognised until the time of divestment.

Cash flow from operating activities is determined using the indirect method as earnings before tax adjusted for non-cash operating items, changes in working capital, interest received and paid, and income tax paid. Cash flow from investing activities includes payments in connection with the acquisition and sale of intangibles, property, plant and equipment and investments, and acquisition and divestment of entities. Cash flow from financing activities includes acquisition and sale of treasury shares, dividends distribution, incurrence or repayment of non-current and current interest-bearing liabilities and instalment on lease liabilities. Cash at bank and in hand includes cash holdings and deposits with banks.

Financial ratios

In general, financial ratios are calculated in

accordance with the "Recommendations and Ratios" of the Danish Finance Society.

Earnings per share (EPS) and diluted earnings per share (EPS-D) are determined in accordance with IAS 33.

Reporting under the ESEF regulation

The Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) has introduced a single electronic reporting format for the annual financial reports of issuers with securities listed on the EU-regulated markets.

The combination of XHTML format and iXBRL tags enables the annual financial reports to be read by both humans and machines, thus enhancing accessibility, analysis and comparability of the information included in the annual financial reports.

The Group's iXBRL tags have been prepared in accordance with the ESEF taxonomy, which is included in the ESEF Regulation and has been developed based on the IFRS taxonomy published by the IFRS Foundation.

The line items in the consolidated financial statements are tagged to elements in the ESEF taxonomy. For financial line items that are not directly defined in the ESEF taxonomy, an extension to the taxonomy has been created. Extensions are anchored to elements in the ESEF taxonomy, except for extensions that are subtotals.

Notes and accounting policies to the consolidated financial statements are block tagged to elements in the ESEF taxonomy included in Annex II of the Regulatory Technical Standards (RTS). If more than one element in the ESEF taxonomy corresponds to a disclosure, then the information has several tags known as multi tagging.

The annual report submitted to the Danish Financial Supervisory Authority (the Officially Appointed Mechanism) consists of the XHTML document together with the technical files, all of which are included in SOLA-2024-12-31-0-en.zip

Key definitions

XHTML (eXtensible HyperText Markup Language) is a text-based language used to structure and mark up content such as text, images and hyperlinks in documents that are displayed in a web browser. iXBRL tags (or Inline XBRL tags) are hidden metainformation embedded in the source code of an XHTML document that enables the conversion of XHTML-formatted information into a machine-readable XBRL data record using appropriate software.

A financial reporting taxonomy is an electronic dictionary of business reporting elements used to report business data. A taxonomy element is an element defined in a taxonomy that is used for the machine-readable labelling of information in an XBRL data record.

Financial statements

Section 1 – Basis for preparation

Separate financial statements

Statements, not audited, part of Management review

Description of accounting policies in notes Descriptions of accounting policies in the notes

form part of the overall description of accounting policies.

These descriptions are found in the following notes:

Note 2.1	Revenue
Note 2.2	Segment information
Note 2.6	Income tax
Note 2.7	Net profit for the year
Note 3.1	Intangible assets
Note 3.2	Property, plant and equipment
Note 3.3	Leases
Note 3.4	Associates
Note 3.5	Inventories
Note 3.6	Trade receivables
Note 3.7	Contract balances
Note 3.8	Other provisions
Note 4.1	Share capital
Note 4.4	Financial instruments
Note 5.1	Share-based payment

1.2 Significant accounting estimates and assessments 1.3 Financial risks

When preparing the annual report in accordance with generally applicable principles, management make estimates and assumptions that affect the reported assets and liabilities. Management base their estimates on historic experience and expectations for future events. Therefore, actual results may differ from these estimates.

The following estimates and accompanying assessments are deemed material for the preparation of the financial statements:

• Impairment test of goodwill and software

• Inventory write-down

• Write-down for loss on doubtful receivables • Deferred tax assets

These estimates and assessments are described in the following notes:

Note 2.6	Income tax
Note 3.1	Intangible assets

Note 3.5 Inventories

Note 3.6 Trade receivables

Results and equity are affected by a range of financial risks. All financial transactions are based on commercial activities, and no speculative transactions are made. Derivative financial instruments are solely used for hedging of financial risks.

The financial risks are described in the following notes:

Note 3.6 Trade receivables Note 4.4 Financial instruments

For description of Solar's other business related risks and our approach to risk management, see the management's review on pages 16-20.

Financial statements

Section 2 – Income statement

Statements, not audited, part of Management review Section 2

Income statement

Financial statements

Statements, not audited, part of Management review

Section 2 – Income statement

2.1 Revenue

DKK million	2024	2023
Sales of goods and services	12,076	13,031
Revenue from construction contracts	147	0
Total revenue	12,223	13,031

Accounting policies

Revenue

Revenue includes goods for resale recognised in the income statement if the transfer of control to the customer according to the agreed delivery terms takes place before the end of the year and if revenue can be determined reliably. Revenue is measured exclusive VAT and duties charged on behalf of a third party. All types of discounts allowed are recognised in revenue.

Revenue from construction contracts are recognized over time based on the stage of completion of the individual contract at the balance sheet date (the percentage of completion method).

If a sufficiently reliable estimation of the outcome of a construction contract cannot be made, revenue corresponding to the contract expenses incurred during the period will be included if these expenses are likely to be recovered.

Cost of sales

Cost of sales includes the year's purchases and change in inventory of goods for resale. This includes shrinkage and any write-down resulting from obsolescence.

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Separate financial statements Group companies overview Statements and reports Statements, not audited, part of Management review

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

2.2 Segment information

Solar's business segments are Installation, Industry and Trade and are based on the customers' affiliation with the segments. Installation covers installation of electrical, and heating and plumbing products, while Industry covers industry, offshore and marine, and utility and infrastructure. Trade covers special sales and other small areas. The three main segments have been identified without aggregation of operating segments. Segment income and costs include any items that are directly attributable to the individual segment and any items that can be reliably allocated to the individual segment. Non-allocated costs refer to income and costs related to joint group functions. Assets and liabilities are not included in segment reporting.

Revenue and costs in the amount of DKK 147m and DKK 129m, respectively, from construction contracts recognized over time are fully allocated to the Trade segment.

DKK million	Installation Industry		Trade	Total
2024
Revenue	6,722	4,336	1,165	12,223
Cost of sales	-5,466	-3,276	-960	-9,702
Gross profit	1,256	1,060	205	2,521
Direct costs	-272	-159	-38	-469
Earnings before indirect costs	984	901	167	2,052
Indirect costs	-439	-232	-47	-718
Segment profit	545	669	120	1,334
Non-allocated costs				-688
Earnings before interest, tax, depreciation and amortisation (EBITDA)				646
Depreciation and amortisation				-368
Earnings before interest and tax (EBIT)				278
Financials, net incl, share of net profit from associates and impairment on associates				-86
Earnings before tax (EBT)				192

Accounting policies

The reporting on business segments follows the structure of Solar's internal management reporting to chief operating decision makers, the group Executive Board. The group Executive Board uses business segmentation when allocating resources and following up on results.

Furthermore, Solar presents the geographical distribution of revenue and non-current assets divided on Denmark, Sweden, Norway, the Netherlands, Poland, and Other markets. The geographical distribution is based on the business units operating in these geographical areas.

MAG45 and Thermonova A/S are included in the operating segment Industry, while Højager Belysning and Solar Polaris are included in the operating segment Trade.

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

2.2 Segment information – continued

DKK million	Installation Industry		Trade	Total
2023
Revenue	7,293	4,522	1,216	13,031
Cost of sales	-5,764	-3,366	-971	-10,101
Gross profit	1,529	1,156	245	2,930
Direct costs	-270	-157	-38	-465
Earnings before indirect costs	1,259	999	207	2,465
Indirect costs	-465	-235	-54	-754
Segment profit	794	764	153	1,711
Non-allocated costs				-840
Earnings before interest, tax, depreciation and amortisation (EBITDA)				871
Depreciation and amortisation				-313
Earnings before interest and tax (EBIT)				558
Financials, net incl, share of net profit from associates and impairment on associates				-90
Earnings before tax (EBT)				468

Geographical information

Solar A/S primarily operates on the Danish, Swedish, Norwegian and Dutch markets. In the below table, Other markets covers the remaining markets, which can be seen in the companies overview available on page 183. The below allocation has been made based on the products' place of sale.

Revenue and costs in the amount of DKK 147m and DKK 129m, respectively, from construction contracts recognized over time are fully allocated to the Danish market.

DKK million	Revenue	Adjusted organic growth	EBITDA	EBITDA margin	Non-current assets
2024
Denmark	4,071	-1.8	289	7.1	835
Sweden	2,121	-12.0	123	5.8	291
Norway	1,841	-6.4	72	3.9	203
The Netherlands	2,740	-12.9	106	3.9	396
Poland	417	-2.2	2	0.5	50
Other markets	1,033	6.7	54	5.2	125
Solar Group	12,223	-6.4	646	5.3	1,900

Revenue	Adjusted organic growth	EBITDA	EBITDA margin	Non-current assets

4,138	-6.4	366	8.8	899
2,400	-2.8	155	6.5	214
2,010	2.4	135	6.7	225
3,119	-4.5	156	5.0	421
405	-8.9	9	2.2	48
959	15.2	50	5.2	86
13,031	-2.6	871	6.7	1,893

Statements, not audited, part of Management review

Summary for the Solar Group
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Section 3 – Invested capital

Statements, not audited, part of Management review

2.3 Staff costs

DKK million	2024	2023
Salaries and wages etc.	1,292	1,351
Pensions, defined contribution	118	115
Costs related to social security	165	167
Share-based payment	5	10
Total	1,580	1,643

Average number of employees (FTEs)	2,899	3,036

Number of employees at year-end (FTEs)	2,895	2,990

Remuneration of Board of Directors
Remuneration of Board of Directors	4	4
Remuneration of Executive Board
Salaries and wages etc.	17	23
Share-based payment	1	3
Total	18	26

Terms of notice for members of the Executive Board is 12 months. When stepping down, the members of the Executive Board are entitled to 12 (6) months' remuneration.

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

DKK million	2024	2023
Recognised losses	22	21
Received on trade receivables previously written off	-3	-1
	19	20
Change in write-down for bad and doubtful debts	-5	-3
Total	14	17

Relevant accounting policies are described in note 3.6, trade receivables.

2.4 Loss on trade receivables 2.5 Depreciation, write-down, amortisation and impairment

DKK million	2024	2023
Buildings	38	30
Plant, operating equipment, tools and equipment	56	51
Leasehold improvements	8	6
Tenancy, lease	105	99
Cars, lease	27	26
IT equipment, lease	10	9
Technical equipment, lease	2	2
Total depreciation and write-down on property, plant and equipment	246	223

Customer-related assets	7	7
Software	65	61
Impairment on intangible assets	50	22
Total amortisation and impairment of intangible assets	122	90

Relevant accounting policies are described in note 3.1, intangible assets, and note 3.2, property, plant and equipment, and note 3.3, Leases.

Statements, not audited, part of Management review

Financial statements

Section 3 – Invested capital Section 4 – Capital structure

and financing costs

Statements, not audited, part of Management review

2.6 Income tax

DKK million	2024	2023
Current tax	31	110
Deferred tax	10	10
Tax on profit for the year	41	120
Tax on taxable profit previous year	3	9
Adjustment of deferred tax for previous years	0	-9
Total	44	120
Statement of effective tax rate:
Danish income tax rate	22.0%	22.0%
Tax base change for non-capitalised loss in subsidiaries	-2.4%	0.0%
Non-taxable/deductible items in parent company	0.8%	2.2%
Non-taxable/deductible items and differing tax rates compared to Danish tax rate in foreign subsidiaries	0.7%	1.2%
Tax for previous years	1.6%	0.2%
Effective tax rate	22.7%	25.6%
Income tax settled
Denmark	24	36
Sweden	-2	23
Norway		31
The Netherlands	21	38
Poland	-2	5
Other countries	7	5
Total	69	138

Accounting policies

Tax for the year is recognised with the share attributable to results for the year in the income statement and with the share attributable to other recognised income and costs in the statement of comprehensive income. Tax consists of current tax and changes to deferred tax.

Current tax liabilities and current tax receivables are recognised in the balance sheet as calculated tax on the year's taxable income, adjusted for tax on previous year's taxable income and for tax paid on account.

Solar Group has applied the mandatory temporary relief from deferred tax accounting for global minimum taxes introduced by Pillar Two. Due to transitional safe harbour, exposure to Pillar Two was also analysed in all jurisdictions of Solar Group and there is no material top-up tax exposure based on financial year 2024 data.

Financial statements

Section 3 – Invested capital Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.6 Income tax – continued

DKK million	2024	2023
Provision for deferred tax
1/1	136	124
Foreign currency translation adjustments	-1	0
Acquired or divested enterprises	0	12
Recognised in other comprehensive income	0	-1
Ordinary tax recognised in income statement	10	1
Other items	1	0
Total 31/12	146	136
Specified as follows:
Deferred tax liabilities	157	143
Deferred tax assets	-11	-7
Total deferred tax, net	146	136
Further specified as follows:
Expected use within 1 year	-4	6
Expected use after 1 year	150	130
Total, net	146	136

Not recognised in balance sheet:
Deferred tax assets	32	29

Deferred tax assets not recognised in the balance sheet are the part of tax losses where it is not considered sufficiently certain that the tax losses can be realised within a short time frame. Non-recognised tax assets can in all material respects be attributed to tax losses in the Netherlands, where the non-recognised tax assets may be exercised with no maturity date.

In addition, deferred tax assets not recognised in the balance sheet of Claessen ELGB NV (activity divested in 2018) and Solar Deutschland GmbH (activity divested in 2015) amounted to DKK 77m (DKK 79m) at the end of the period.

Accounting policies

Deferred tax is measured in accordance with the balance sheet liability method of all temporary differentials between accounting and tax-related amounts and provisions. Deferred tax is recognised at the local tax rate that any temporary differentials are expected to be realised at based on the adopted or expected adopted tax legislation on the balance sheet date.

Deferred tax assets, including the tax value of tax loss allowed for carryforward, are measured at the value at which the asset is expected to be realised, either by elimination in tax of future earnings or by offsetting against deferred tax liabilities.

Deferred tax assets are assessed annually and only recognised to the extent that it is probable that they will be utilised.

Deferred tax is also recognised for the covering of the retaxation of losses in former foreign subsidiaries participating in joint taxation assessed as becoming current.

Accounting estimates and assessments

Deferred tax assets

Deferred tax assets are not recognised if it is not deemed sufficiently safe that these can reduce future taxable income. In this connection, management assess expected future taxable income.

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

2.6 Income tax – continued

DKK million	2023	Foreign currency translation adjustments	Acquired or divested enterprises	Recognised in other comprehensive income	Ordinary tax recognised in income statement	2024
Provision for deferred tax - continued
Property, plant and equipment	64	0	0	0	9	73
Inventories	-4	0	0	0	-1	-5
Receivables	-2	0	0	0	-3	-5
Other items1	78	0	0	0	5	83
Total, net	136	0	0	0	10	146

1) Other items particularly cover intangible assets and loss balances in jointly taxed entities.

Statements, not audited, part of Management review

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Separate financial statements Group companies overview Statements and reports Statements, not audited, part of Management review

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

2.7 Net profit for the year

DKK million	2024	2023
Proposed distribution of net profit for the year:
Proposed dividends, parent	110	219
Retained earnings	41	128
Net profit for the year	151	347

Ordinary dividends in DKK per share of DKK 1001	15.00	30.00

1) Calculations are based on proposed dividends.

Accounting policies

of adoption of the general meeting.

Dividends Proposed dividends are recognised as a liability at the time

Financial statements

Section 1 – Basis for preparation Section 2 – Income statement

Section 3 – Invested capital

Statements, not audited, part of Management review

Solar A/S Annual Report 2024

Section 3

Statement of comprehensive income Balance sheet Cash flow statement Statement of changes in equity Notes

Consolidated financial statements Summary for the Solar Group

Section 1 Basis for preparation Section 2 – Income statement
Section 3 Invested capital

Statements, not audited, part of Management review

Section 3 – Invested capital

3.1 Intangible assets

		Customer related		Total
DKK million	Goodwill	assets	Software
2024
Cost 1/1	122	291	828	1,241
Foreign currency translation adjustment	0	-3	1	-2
Additions during the year	0	0	154	154
Abandoned assets during the year	0	0	-323	-323
Cost 31/12	122	288	660	1,070
Amortisation 1/1	0	253	640	893
Foreign currency translation adjustment	0	-3	0	-3
Amortisation during the year	0	7	65	72
Impairments during the year	47	0	3	50
Amortisation of abandoned assets	0	0	-323	-323
Amortisation and impairment 31/12	47	257	385	689
Carrying amount 31/12	75	31	275	381
Remaining amortisation period in number of years	-	1-6	1-8	-

Accounting policies

Goodwill

Goodwill is initially recognised in the balance sheet as the positive balance between the acquisition consideration of an enterprise on one side and the fair value of the assets, liabilities and contingent liabilities acquired on the other side. In cases of measurement uncertainty, the goodwill amount can be adjusted until 12 months after the date of the acquisition. Goodwill is not amortised but an impairment test is done annually. The first impairment test is done by the end of the year of acquisition. Subsequently, goodwill is measured at this value less accumulated impairment losses. On acquisition, goodwill is assigned to the cashgenerating units that form the basis of the impairment test subsequently. The determination of cashgenerating units follows the managerial structure and management control.

Customer-related intangible assets

Customer-related intangible assets acquired in connection with business combinations are measured at cost less accumulated amortisation and impairment loss.

Customer-related intangible assets are amortised using the straight-line principle over the expected useful life. Typically, the amortisation period is 5-7 years.

Software

Software is measured at cost less accumulated amortisation and impairment. Cost includes both direct internal and external costs.

Software is amortised using the straight-line principle over 4-8 years. The basis of amortisation is reduced by any impairment.

Summary for the Solar Group Statement of comprehensive income Balance sheet

Thermonova A/S is a part of the Industry segment.

Financial statements

Statement of changes in equity
Notes
Section 1 Basis for preparation Section 2 – Income statement
Section 3 Invested capital

3.1 Intangible assets – continued

Goodwill	assets	Software
			Total

0	245	733	978
0	4	-1	3
122	42	0	164
0	0	102	102
0	0	-6	-6
122	291	828	1,241

0	222	583	805
0	4	0	4
0	7	61	68
0	20	2	22
0	0	-6	-6
0	253	640	893
122	38	188	348
			-
	-	1-7	1-8

Accounting policies

Impairment of intangible assets

The carrying amount of intangible assets other than goodwill is assessed annually to determine whether there is any indication of impairment.

When such an indication is present, the asset's recoverable amount is calculated, which is the highest of the asset's fair value less expected costs of disposal or value in use. Value in use is calculated as the present value of expected cash flow from the smallest cash-generating unit to which the asset belongs.

Impairment loss is recognised when the carrying amount of an asset exceeds the asset's recoverable amount. Impairment loss is recognised in the income statement.

Impairment loss relating to goodwill is not reversed. Impairment on other intangible assets are reversed to the extent that changes have been made to the assumptions and estimates that led to the write-down.

Accounting estimates and assessments

Impairment test for goodwill

In connection with the annual impairment test of goodwill, or when there is an indication of impairment, an estimate is made of how the parts of the business (cash-generating units), that goodwill is linked to, will be able to generate sufficient positive cash flow in future to support the value of goodwill and other net assets in the relevant part of the business.

Due to the nature of the business, estimates must be made of expected cash flow for many years ahead which, naturally, results in a certain level of uncertainty. This uncertainty is reflected in the discount rate determined. The impairment test and the very sensitive related aspects are described in more detail in the comments section.

Software

Software is evaluated annually for indicators of a need for impairment. If a need to perform impairment is identified, an impairment test for the software is performed.

The impairment test is made on the basis of different factors, including the software's future application, the present value of the expected cost saving as well as interest and risks.

3.1 Intangible assets – continued

Goodwill, customer-related assets and other intangible assets

Management has completed the impairment test of the carrying amount of goodwill. The impairment test was based on our SOLVE strategy, estimates and expectations as well as other assumptions approved by the Executive Board and the Board of Directors with the necessary adjustments under IAS 36.

When performing an impairment test of cash generating units, the recoverable amount (value in use), determined as the discounted value of the expected future cash flow, is compared to the carrying amounts of the individual cashgenerating units.

Overall, impairment tests made are based on the budget for 2025 and strategy for 2024-2026 approved by the Executive Board and Board of Directors. A budget period of 6 years has been applied to ensure that the entire impact from the different initiatives is included. This reduces also the dependency of the terminal value and thereby also part of the volatility. When preparing budgets and expectations for the next 6 years, risks of the material parameters have been assessed and recognized in future expected cash flow.

Management's final assessment of the impairment tests made is based on an assessment of probable changes to the basic assumptions and that these will result in that the carrying amount of cash generating units is exceeding the recoverable amount.

Thermonova A/S

The carrying amount of goodwill of DKK 122m result from the acquisition of the Danish enterprise Thermonova A/S, which is considered a cashgenerating unit for impairment test of goodwill. The impairment test is based on the expectations to the development in future cash flows for the three areas: Denmark, other countries where Solar operates and other international areas (mainly UK).

The growth rate used in the impairment test is 87% for 2025 and 74% in 2026, since Thermonova A/S only is in the initial phase of establishing in other Solar countries and Thermonova International. The growth rate used in impairment tests for the years succeeding 2026 is decreasing to a range between 3.9% - 16.6%.

The estimated gross margin percentage in 2025 is also expected to be in the same range for 2026- 2030. Terminal value after 6 years is determined while taking general expectations for growth into consideration. Expected growth is by considerations of realistic assumptions determined at 2%. Of the total value approx. 76% is based on the terminal value.

The discount rate (WACC) used to calculate the recoverable amount is 9.5% to compensate for the risk. The development of Thermonova A/S is positive, but the uncertainties are higher than Solar A/S in general, as they are more premature which is the reason for the chosen discount rate.

Despite the expected increase in EBITDA, this will result in the carrying amount of the cash generating units exceeding the recoverable amount.

In the most likely scenario, the impairment tests completed shows indications of a need for write-down of the goodwill, amounting to DKK 47m out of the DKK 122m in total carrying amount of goodwill. The recovery amount of the cash generating units is DKK 124m for Solar's share.

If the WACC used is increased with 1 percentage point, this reduces Solar's share of the recovery amount with additional DKK 14m, whereas a reduction with 1 percentage point in the WACC used will increase Solar's share of the recovery amount with DKK 18m.

Financial statements

Summary for the Solar Group Statement of comprehensive income Balance sheet Cash flow statement Statement of changes in equity Notes

Section 1 – Basis for preparation Section 2 – Income statement

Statements, not audited, part of Management review

Consolidated financial statements

Financial statements

Section 1 – Basis for preparation Section 2 – Income statement

Statements, not audited, part of Management review

3.2 Property, plant and equipment

DKK million	Land and buildings	Plant, operating equipment, tools and equipment	Leasehold improvements	Assets under construction	Total
2024
Cost 1/1	1,249	562	59	125	1,995
Foreign currency translation adjustment	-10	-7	-1	0	-18
Additions during the year	91	66	13	128	298
Disposals during the year	-111	-15	0	-136	-262
Cost 31/12	1,219	606	71	117	2,013

Write-down and depreciation 1/1	527	365	37	0	929
Foreign currency translation adjustments	-4	-7	0	0	-11
Depreciation during the year	38	56	8	0	102
Write-down and depreciation of disposed assets	-63	-14	0	0	-77
Write-down and depreciation 31/12	498	400	45	0	943
Carrying amount 31/12	721	206	26	117	1,070

Accounting policies

Property, plant and equipment

Land and buildings as well as other plant, operating equipment, and tools and equipment are measured at cost less accumulated depreciation and write-down.

Cost includes the purchase price and costs directly attributable to the acquisition until the time when the asset is ready for use. Cost of a combined asset is disaggregated into separate components which are depreciated separately if the useful lives of the individual components differ.

Subsequent expenditure, for example in connection with the replacement of components of property, plant or equipment, is recognised in the carrying amount of the relevant asset when it is probable that the incurrence will result in future economic benefits for the group.The replaced components cease to be recognised in the balance sheet and the carrying amount is transferred to the income statement. All other general repair and maintenance costs are recognised in the income statement when these are incurred.

Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives which are:

• Buildings 40 years

• Technical installations 20 years

• Plant, operating equipment, and tools and equipment 2-5 years

There are a few differences from the mentioned depreciation periods in which useful life is estimated as shorter. Leasehold improvements are depreciated over the lease term, however, maximum 5 years.

Land is not depreciated.

Summary for the Solar Group
Statement of comprehensive income

Statements, not audited, part of Management review

3.2 Property, plant and equipment – continued

Financial statements Consolidated financial statements	DKK million	Land and buildings	Plant, operating equipment, tools and equipment	Leasehold improvements	Assets under construction	Total
Summary for the Solar Group	2023
Statement of comprehensive income	Cost 1/1	1,208	561	57	7	1,833
Balance sheet	Foreign currency translation adjustment	-5	-3	-1	0	-9
Cash flow statement	Acquired enterprises	24	0	0	0	24
Statement of changes in equity	Additions during the year	23	21	8	134	186
Notes	Disposals during the year	-1	-17	-5	-16	-39
Section 1 – Basis for preparation	Cost 31/12	1,249	562	59	125	1,995
Section 2 – Income statement	Write-down and depreciation 1/1	501	333	36	0	870
Section 3 – Invested capital Section 4 – Capital structure	Foreign currency translation adjustments	-3	-2	-1	0	-6
and financing costs Section 5 – Other notes	Write-down and depreciation during the year	30	51	6	0	87
	Write-down and depreciation of abandoned assets	-1	-17	-4	0	-22
Separate financial statements	Write-down and depreciation 31/12	527	365	37	0	929
Group companies overview
Statements and reports	Carrying amount 31/12	722	197	22	125	1,066

Accounting policies

The basis of depreciation is determined in consideration of the asset's residual value and reduced by any impairment. Residual value is determined at the time of acquisition and reassessed annually. If residual value exceeds the asset's carrying amount, depreciation will cease.

By changing the depreciation period or residual value, the effect of future depreciation is recognised as a change to accounting estimates.

Impairment of property, plant and equipment

The carrying amount of property, plant and equipment is assessed annually to determine whether there is any indication of impairment.

Impairment loss is recognised when the carrying amount of an asset exceeds the asset's recoverable amount. Impairment loss is recognised in the income statement. Write-down on property, plant and equipment is reversed to the extent that changes have been made to the assumptions and estimates that led to the write-down.

3.3 Leases

Right-of-use assets

Consolidated financial statements	DKK million	Tenancy	Cars	IT equipment	Technical equipment	Other equipment	Total
Summary for the Solar Group	2024
Statement of comprehensive income	Cost 1/1	620	120	50	10	0	800
Balance sheet	Foreign currency translation adjustment	-14	0	0	0	0	-14
Cash flow statement	Additions during the year	82	30	10	0	0	122
Statement of changes in equity	Disposals during the year	-38	-26	-14	-1	0	-79
Notes	Cost 31/12	650	124	46	9	0	829
Section 1 – Basis for preparation
Section 2 – Income statement	Write-down and depreciation 1/1	264	66	25	5	0	360
Section 3 – Invested capital	Foreign currency translation adjustments	-5	0	0	0	0	-5
Section 4 – Capital structure and financing costs	Write-down and depreciation during the year	105	27	10	2	0	144
Section 5 – Other notes	Write-down and depreciation of abandoned assets	-38	-25	-14	-1	0	-78
	Write-down and depreciation 31/12	326	68	21	6	0	421
Separate financial statements
Group companies overview	Carrying amount 31/12	324	56	25	3	0	408

Accounting policies

Right-of-use assets

Right-of-use assets are lease assets arising from a lease agreement. Lease assets are initially measured at cost consisting of the amount of the initial measurement of the lease liability with addition of lease payments made to the lessor at or before the commencement date less any lease incentives received. Five different types of leases have been identified:

Tenancy
Cars
IT equipment
Technical equipment

• Other equipment

The lease assets are depreciated on a straight-line basis over the lease term.

The carrying amount of the right-of-use asset can be adjusted due to modifications to the lease agreement or in special cases reassessment of the lease term.

Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the income statement. Short-term leases are leases with a term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture of a value below DKK 37,000.

Statements, not audited, part of Management review

3.3 Leases – continued

DKK million	Tenancy	Cars	IT equipment	Technical equipment	Other equipment	Total
2023
Cost 1/1	514	104	23	8	1	650
Foreign currency translation adjustment	-6	1	0	0	0	-5
Additions during the year	140	31	27	3	0	201
Disposals during the year	-28	-16	0	-1	-1	-46
Cost 31/12	620	120	50	10	0	800

Write-down and depreciation 1/1	192	54	16	4	1	267
Foreign currency translation adjustments	0	0	0	0	0	0
Write-down and depreciation during the year	99	26	9	2	0	136
Write-down and depreciation of abandoned assets	-27	-14	0	-1	-1	-43
Write-down and depreciation 31/12	264	66	25	5	0	360
Carrying amount 31/12	356	54	25	5	0	440

Statements, not audited, part of Management review

Section 1 – Basis for preparation Section 2 – Income statement

Statements, not audited, part of Management review

Solar A/S Annual Report 2024

3.3 Leases – continued

Short-term lease liabilities

DKK million	2024	2023
Maturity < 1 year	141	130
Short-term lease liabilities 31/12	141	130

Long-term lease liabilities

DKK million	2024	2023
Maturity > 1 year < 5 years, undiscounted	288	312
Maturity > 5 years, undiscounted	17	28
Long-term lease liabilities 31/12, undiscounted	305	340
Discounting on lease liabilities > 1 year < 5 years	-19	-18
Discounting on lease liabilities > 5 years	-2	-2
Long-term lease liabilities 31/12	284	320
Amounts recognised in the income statement
Depreciation of right-of-use assets	144	136
Interest expense on lease liabilities	15	12
Expense relating to short-term leases	2	3
Expense relating to leases of low-value items	2	2
Expense relating to variable lease payments not included in the measurement of lease liabilities	7	7
Total	170	160
Cash outflows for leases
Instalment on lease liabilities	-137	-136
Interest payments	-15	-12
Total cash outflows for leases	-152	-148

Future cash outflows not recognised as lease liabilities in the balance sheet amount to DKK 4m (DKK 0m) regarding signed but not yet started lease contracts on rent of premises. Extension options regarding lease contracts on rent of premises, which are not recognised in the balance sheet amount to DKK 49m (DKK 43m).

Accounting policies

Lease liabilities

Lease liabilities arise from a lease agreement. Lease liabilities are initially measured at the present value of the lease payments during the non-cancellable lease period with addition of periods covered by an option to extend the lease if exercise of the option is considered reasonably certain on inception of the lease.

At initial recognition, each contract is assessed individually to assess the likelihood of exercising a potential extension option in the contract. The option to extend the contract period will be included in measuring the lease liability if it is reasonably certain that Solar will exercise the option. When calculating the net present value, a discount rate corresponding to Solar's incremental borrowing rate has been used.

The lease liability will be remeasured when changes occur due to modifications to the contract (extension, termination etc.), indexation or in special cases reassessment of the lease term.

Financial statements

Section 1 – Basis for preparation Section 2 – Income statement

Statements, not audited, part of Management review

3.4 Investments in associates1

Investments in associates, DKK million	2024	2023

Cost 1/1	9	21
Foreign currency translation adjustment	0	-1
Additions during the year	0	1
Disposals during the year	0	-12

Cost 31/12	9	9

Adjustments 1/1	-5	-17
Foreign currency translation adjustment	0	0
Profit from associates	-1	0
Disposals during the year	0	12

Value adjustment 31/12	-6	-5

Carrying amount 31/12	3	4

1) Associates include the following investments:

• Monterra where Solar owns 30.0% • Zolw where Solar owns 35.0%

• Edison Data AS in the course of formation where Solar owns 25.0%

Accounting policies

Investment in associates

Investments in associates are accounted for by using the equity method of accounting, by which the investments are measured at the proportional share of the entities' equity determined according to the group's accounting policies reduced by the proportional share of unrealised gains on transaction between the group and the associates and increased by goodwill determined as of the date when the investment became an associate.

Investments in associates are tested for impairment when there is an indication of impairment.

Associates with a negative equity are accounted for at DKK 0. If the group has a legal or actual obligation to cover the negative balance of the associate, this obligation is recognised under liabilities.

Statements, not audited, part of Management review

3.5 Inventories

DKK million	2024	2023
End products	1,888	2,029

Recognised write-down	-9	9

Accounting policies

Inventories are measured at cost according to the FIFO method or at net realisable value, if this is lower.

Cost of inventories includes purchase price with addition of delivery costs.

The net realisable value of inventories is determined as selling price less costs incurred to make the sale and is determined in consideration of marketability, obsolescence and development of expected selling price.

Accounting estimates and assessments

Write-down of inventories

Write-down of inventories is made due to the obsolescence of products.

Management specifically assess inventories, including the products' turnover rate, current economic trends and product development when deciding whether the write-down is sufficient.

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income Balance sheet Cash flow statement Statement of changes in equity Notes Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

Statements, not audited, part of Management review

3.6 Trade receivables 1

DKK million	2024	2023
Maturity statement, trade receivables
Not due	1,506	1,481
Past due for 1-30 day(s)	139	165
Past due for 31-90 days	19	24
Past due for 91+ days	21	11
	1,685	1,681
Write-down	-28	-33
Total	1,657	1,648
Write-down based on:
Age distribution	11	13
Individual assessment	17	20
Total	28	33

Write-down 1/1	33	36
Foreign currency translation adjustment	0	0
Write-down for the year	10	17
Losses realised during the year	-11	-11
Reversed for the year	-4	-9
Write-down 31/12	28	33

1) A factoring arrangement on non-recourse conditions is established with a few major customers. As a result trade receivables is reduced with approx. DKK 103m (DKK 113m).

made, if this is lower.

trade receivables

and the days past invoicing.

by more than 30 days (30 days).

Trade receivables are measured at fair value at acquisition and at amortised cost subsequently. Based on an individual assessment of the loss risk, including a statistical based model, write-down to amortised cost less expected credit losses is

Accounting estimates and assessments

Write-down for meeting of loss on doubtful

The IFRS 9 simplified approach is applied to measure expected credit losses, which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics

As the vast majority of our group companies generally takes out insurance to hedge against loss to the extent possible, the write-down based on age distribution amounts to less than 0.7% (0.8%) of gross trade receivables. Individual assessment of write-down is performed by management specifically analysing trade receivables, including the customers' credit rating and current economic trends to ensure that write-down is sufficient. Write-down based on individual assessment amounts to 1.0% (1.2%) of gross trade receivables. As the total write-down on trade receivables amounts to less than 1.7% (2%) of gross trade receivables, no maturity statement of the write-down is included. However, the majority of the provision relates to receivables overdue Financial risks

Credit risk

Solar is subject to credit risks in respect of trade receivables and cash at bank. No credit risk is deemed to exist in respect of cash as the counterparts are banks with good credit ratings.

As a result of customer diversification, trade receivables are distributed so that there is no significant concentration of risk. Credit granting to customers is regarded as a natural and important element in Solar's business operations. Solar conducts efficient credit management at all times. The vast majority of our group companies generally takes out insurance to hedge against loss to the extent possible. As a result, 64% (70%) of trade receivables is covered by insurance.

Loss due to credit granting is considered a normal business risk and, therefore, will occur.

Solar A/S Annual Report 2024

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

3.7 Contract balances

DKK million		2024		2023
Significant changes in the contract balances	Contract assets	Contract liabilities	Contract assets	Contract liabilities
Contract balances at 1/1	0	0	0	0
Changes due to cash received, excluding amounts recognized as revenue during the period	0	0	0	0
Increases as a result of changes in the measure of progress and deliveries	4	35	0	0
Contract balances at 31/12	4	35	0	0

Accounting policies

When the outcome of a construction contract can be reliably estimated, the construction contract is measured at the selling price of the work performed up until the balance sheet date (percentage of completion method) less the on account invoicing and write-down for expected credit losses.

The selling price is measured on the basis of the stage of completion at the balance sheet date and the total expected revenue on the individual construction contract.

The stage of completion of the individual project is usually calculated as the proportion of actually consumed resources compared to the total estimated consumption of resources. For individual projects where the consumption of resources cannot be used as a basis, the proportion of the finalised sub-activities compared to the total project is used.

The individual ongoing construction contract is included in the balance sheet under contract assets or contract liabilities, depending on whether the net value is a receivable or a liability.

Statements, not audited, part of Management review

3.8 Other provisions

Financial statements	DKK million	2024	2023
	Non-current
Consolidated financial statements	Other provisions	12	11
Summary for the Solar Group	Total 31/12	12	11
Statement of comprehensive income
Balance sheet	Specification, non-current
Cash flow statement	1/1	11	9
Statement of changes in equity	Reversed during the year	-2	0
Notes	Provisions of the year	3	2
Section 1 – Basis for preparation	Total 31/12	12	11
Section 2 – Income statement
Section 3 – Invested capital	Current
	Other provisions	9	21
Section 4 – Capital structure and financing costs	Total 31/12	9	21
Section 5 – Other notes
	Specification, current
	1/1	21	17
Separate financial statements	Reversed during the year	-21	-11
Group companies overview	Provisions of the year	9	15
Statements and reports	Total 31/12	9	21

Statements, not audited, part of Management review

3.9 Other payables

Financial statements

Consolidated financial statements
Summary for the Solar Group
Statement of comprehensive income

Section 3 – Invested capital Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

DKK million	2024	2023
Staff costs	205	260
Taxes and charges	144	137
Interest rate swaps	17	17
Other payables	96	106
Total	462	520

Relevant accounting policies for derivative financial instruments are described in note 4.4 Financial instruments.

Financial statements

Section 1 – Basis for preparation Section 2 – Income statement

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 4 Capital structure and financing costs

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income Balance sheet

Financial statements

Notes
Section 1 Basis for preparation Section 2 – Income statement Section 3 – Invested capital
Section 4 Capital structure and financing costs

Statements, not audited, part of Management review

Solar A/S Annual Report 2024

Section 4 – Capital structure and financing costs

4.1 Share capital

DKK million	2024	2023
Share capital 1/1	736	736
Change in share capital	0	0
Share capital 31/12	736	736
Share capital is fully paid in and divided into the following classes:
A shares, 900,000 at DKK 100, 10 votes per share	90	90
B shares, 6,460,000 at DKK 100, 1 vote per share	646	646
Total	736	736

		Number of shares		Nominal value
	2024	2023	2024	2023
A shares outstanding 31/12	900,000	900,000	90	90

B shares outstanding
Outstanding 1/1	6,403,187	6,403,187	640	640
Divestment of treasury shares	0	0	0	0
B shares outstanding 31/12	6,403,187	6,403,187	640	640

Total shares outstanding 31/12	7,303,187	7,303,187	730	730

4.2 Treasury shares

Treasury shares (B shares)	Nominal value Number of shares (DKK million)		Cost (DKK million)		Percentage of share capital
	2024	2023	2024	2023	2024	2023	2024	2023
Holding 1/1	56,813	56,813	6	6	22	22	0.7%	0.7%
Divestment	0	0	0	0	0	0	0.0%	0.0%
Holding 31/12	56,813	56,813	6	6	22	22	0.7%	0.7%

All treasury shares are held by the parent company in order to cover the Executive Board's incentive schemes.

Treasury shares

Acquisition and disposal sums related to treasury shares are recognised directly in transactions with the owners.

Financial statements

Section 1 – Basis for preparation Section 2 – Income statement

Statements, not audited, part of Management review

4.3 Earnings per share in DKK per share outstanding for the year

	2024	2023
Net profit for the year in DKK million	148	348

Average number of shares	7,360,000	7,360,000
Average number of treasury shares	-56,813	-56,813
Average number of shares outstanding	7,303,187	7,303,187
Dilution effect of restricted share units	27,349	26,021
Diluted number of shares outstanding	7,330,536	7,329,208

Earnings per share in DKK per share outstanding for the year	20.68	47.51
Diluted earnings per share in DKK per share outstanding for the year	20.60	47.34

Summary for the Solar Group Statement of comprehensive income

Financial statements

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital

Statements, not audited, part of Management review

4.4 Financial instruments

Financial assets and financial liabilities

DKK million	Interest rate	2024	2023
Debt to mortgage credit institutions	Fixed 1	187	195
Bank loans and overdrafts	Fixed 1	249	250
Lease liabilities	Calculated	425	450
Bank loans and overdrafts	Floating	830	702
Interest-bearing liabilities		1,691	1,597
Trade payables 2		1,852	1,770
Other payables etc.		462	520
Financial liabilities		4,005	3,887
Cash at bank and in hand		459	441
		1,657
Trade receivables
Other receivables		204	1,648 101

1) Interest swaps have been used to hedge floating-rate loans, converting these loans to fixed-rate loans. 2) Solar participates in supplier financing arrangement with a few suppliers. As a result trade payables are increased with approx. DKK 141m (DKK 140m).

Fair value of Solar's respective interest-bearing liabilities is seen as fair value measurement at level 2. Mortgage loans are valued based on underlying securities, while bank debt is calculated based on models for discounting to net present value. Non-observable market data is primarily made up of credit risks, which are seen as insignificant in Solar's case.

The fair value of Solar's interest rate instrument is measured as fair value measurement at level 2, since fair value can be determined directly based on the actual forward rates and instalments on the balance sheet date. Outstanding interest rate swaps for hedging of floating-rate loans expire over the period until 2037 (2037).

Accounting policies

Financial liabilities

Debt to bank and credit institutions is recognised initially at fair value that corresponds to the proceeds received net of transaction costs incurred.

In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest method, meaning that the difference between the proceeds and the nominal value is recognised in the income statement under financials for the term of the loan. For information on lease liabilities, see note 3.3.

Fair value measurement

The group uses the fair value concept for recognition of certain financial instruments and in connection with some disclosure requirements. Fair value is defined as the price that can be secured when selling an asset or that must be paid to transfer a liability in a standard transaction between market participants (exit price).

Fair value is a marked-based and not enterprise-specific valuation. The enterprise uses the assumptions that market participants would use when pricing an asset or liability based on existing market conditions, including assumptions relating to risks.

As far as possible, fair value measurement is based on market value in active markets (level 1) or alternatively on values derived from observable market information (level 2). If such observable information is not available or cannot be used without significant modifications, recognised valuation methods and fair estimates are used as the basis of fair values (level 3).

4.4 Financial instruments – continued

Financial statements

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income Balance sheet Cash flow statement

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital

Statements, not audited, part of Management review

Interest bearing liabilities 1/1 1,597 Repayment of non-current interest-bearing debt -9 Raising of non-current interest-bearing liabilities 100 Change in current interest-bearing debt 11 Instalment on lease liabilities -137 Lease liability raised during the year, non-cash 122 Foreign currency translation adjustment 7	DKK million	2024	2023
			1,240
			-9
			150
			149
			-136
			195
			8

Interest bearing liabilities 31/12 1,691 1,597

Reconciliation of development in interest-bearing debt to financing activities in the cash flow statement:

Financial liabilities, maturity statement

DKK million	2024	2023
Maturity < 1 year
Debt to mortgage credit institutions	11	11
Lease liabilities	141	130
Bank loans and overdrafts	830	703
Current interest-bearing liabilities	982	844
Other financial liabilities	2,314	2,290
Current financial liabilities	3,296	3,134
Current financial assets	2,320	2,190
Net current financial liabilities	976	944

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

4.4 Financial instruments – continued

Financial liabilities, maturity statement – continued

DKK million	2024	2023
Maturity 1-5 year(s)
Debt to mortgage credit institutions	47	45
Bank loans and overdrafts	249	250
Lease liabilities	268	294
Total	564	589

Maturity > 5 years
Debt to mortgage credit institutions	129	139
Lease liabilities	16	26
Total	145	165

Total non-current liabilities	709	754

Maturity, until year	2042	2042

The carrying amount of financial liabilities corresponds to fair value, see page 135. Of long-term bank loans and overdrafts DKK 150m is subject to covenants measured on gearing on a quarterly basis. There is

no indication that covenants cannot be met for the next 12 months.

Separate financial statements

Statements, not audited, part of Management review

Solar A/S Annual Report 2024

DKK million	2024	2023
Interest-bearing liabilities and maturity statement for expected interest expense for the period
< 1 year	32	31
1-5 year(s)	56	54
> 5 years	35	42
Total	123	127

Accounting policies

Liquidity risks

Solar has an objective of substantial self-financing to minimise dependence on lenders and thus gain greater freedom of action. Financing is primarily controlled centrally based on the individual subsidiary's operating and investment cash requirements. Solar ensures that there are always sufficient and flexible cash reserves and diversification of maturities of both non-current and current credit facilities.

Financial statements

Section 1 – Basis for preparation Section 2 – Income statement

Statements, not audited, part of Management review

4.4 Financial instruments – continued

Interest rate sensitivity

DKK million	2024	2023
Effect of a 1% interest rate increase at the end of the year
Effect on equity	3	3
Of this, earnings impact is	-3	-5

Undrawn credit facilities 31/12	1,028	955

Financial liabilities, foreign currency risk exposure

		Current liabilities		Non-current liabilities
DKK million	2024	2023	2024	2023
EUR	124	147	101	106
DKK	705	564	324	328
NOK	0	0	0	0
PLN	12	3	0	0
SEK	0	0	0	0
Total	841	714	425	434

Interest rate in %	3.7-7.0	4.3-6.9	3.9-5.6	4.3-5.6

The group's enterprises have raised loans in their respective functional currencies, while the parent company has also raised loans in euro.

Financial risks – continued

Interest rate risk

Solar monitors and adjusts interest-bearing liabilities on an ongoing basis. Loans are only raised in the functional currencies of the countries where Solar operates. Of total interest-bearing liabilities, Solar endeavours to ensure that a maximum of half is based on variable payment of interest determined in accordance with current money market rates. The remaining interest-bearing liabilities are fixed-rate. Solar Group has no significant noncurrent interest-bearing assets.

As a result of Solar's policies, a certain interest rate risk exists.

Currency risk

Solar is exposed to currency risks in the form of translation risks since a substantial proportion of activity derives from foreign subsidiaries which has other currencies than DKK as functional currency. The functional currencies applied in the group are euro, Danish kroner, Swedish kroner, Norwegian kroner and, to a lesser extent, Polish zloty, Swiss Franc, US dollar and British pound. Solar has a number of investments in foreign subsidiaries, where the translation of equity into Danish kroner depends on exchange rates. Investments in subsidiaries are not hedged as such investments are regarded as long-term and because hedging is seen as unlikely to create any long-term value.

The individual subsidiaries are not significantly affected by exchange rate fluctuations since revenue and costs in subsidiaries are mainly in the same currencies.

Effect from translation of foreign subsidiaries when the exchange rate increases by 10% (average for the year and at year end)

	Profit of the year			Equity
DKK million	2024	2023	2024	2023
NOK	5.1	9.0	50.6	50.1
SEK	8.0	10.8	51.2	48.0
PLN	1.6	0.2	9.4	8.3
Total	14.7	20.0	111.2	106.4

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

4.4 Financial instruments – continued

Hedging activities

DKK million	2024	2023

Outstanding interest swaps made for hedging floating-rate loans
Principal amount	361	367
Interest rate in % for outstanding interest swaps	4.5-5.6	4.5-5.6
Fair value recognised as other payables under current liabilities	-17	-17

Maturity for interest swaps follows the maturity for debt to mortgage credit institutions as stated on previous page.

Amounts recognised in other comprehensive income

Total	0	-5
Realised during the year, recognised as financial income/expenses	5	5
Adjustment to fair value for the year	-5	-10

Accounting policies

Derivatives

Derivatives are only used to hedge financial risks in the form of interest rate and currency risks.

Any non-effective part of the financial instrument in question is recognised in the income statement. Derivatives are recognised under other receivables or other payables.

Separate financial statements

Statements, not audited, part of Management review

Consolidated financial statements
Summary for the Solar Group
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity

Statements, not audited, part of Management review

4.5 Financial income 4.6 Financial expenses

DKK million	2024	2023	DKK million	2024	2023
Interest income	31	26	Interest expenses	99	94
Foreign exchange gains	28	35	Foreign exchange losses	31	41
Fair value adjustments, other financial investments	2	0	Fair value adjustments, other financial investments	3	8
Other financial income	2	4	Interest on lease liabilities	15	12
Total	63	65	Total	148	155

Financial income, received	33	30	Financial expenses, settled	114	106

Financial statements

Section 5 – Other notes

Statements, not audited, part of Management review

Solar A/S Annual Report 2024

Section 5

Financial statements

Summary for the Solar Group

Statements, not audited, part of Management review

Section 5 – Other notes

5.1 Share-based payment

Restricted share units

	Executive Board	Others	Total
No. of restricted share units at year-end 2024
Outstanding at the beginning of 2024	23,212	24,789	48,001
Granted in 2024	0	14,945	14,945
Transferred on change to the Executive Board	-6,089	6,089	0
Adjustment due to dividend distribution	444	2,036	2,480
Exercised	-7,193	-11,775	-18,968
Outstanding at year-end 2024	10,374	36,084	46,458
Outstanding at the beginning of 2023 Granted in 2023	22,361 6,719	18,457 7,930	40,818 14,649

Adjustment due to dividend distribution	1,719	1,818	3,537
Exercised	-7,587	-3,416	-11,003
Outstanding at year-end 2023	23,212	24,789	48,001
DKK million		2024	2023
Market value recognised under other liabilities		9	14

Accounting policies

Restricted share units and performance share units are measured at fair value at the grant date and are recognised in the income statement under staff costs over the period when the final right to the restricted share units and performance share units is vested. The set-off to this is recognised under other payables, as the company has a past practice that allows employees to choose cash settlement. This liability is regularly adjusted to fair value and for the performance share units an estimated probability for succeeding in fulfilling the targets set is taken into consideration.

The fair value of the granted restricted share units and performance share units is estimated using the market price of the company's shares at balance sheet date.

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

5.1 Share-based payment – continued

Specification of restricted share units

2024 0	2023 6,719	2022	2021


		5,353	6,595
0	-1,899	-1,792	-2,398
0	735	1,258	2,996
0	0	0	-7,193
0	5,555	4,819	0

14,945	7,930	5,757	6,442
0	1,899	1,792	2,398
1,181	1,065	1,515	2,935
0	0	0	-11,775
16,126	10,894	9,064	0
381.88	629.95	722.46	456.39
2027	2026	2025	2024

Performance share units
-------------------------	--

Executive Board
0
13,939
1,097
0
15,036
2024
381.88
2027

Statements, not audited, part of Management review

Statements, not audited, part of Management review

5.1 Share-based payment – continued

In accordance with Solar's remuneration policy and general guidelines for incentive-based remuneration, the Board of Directors decided to grant restricted shares to the Executive Board in 2023 and management team in 2024 and 2023.

Restricted shares are granted for no consideration and provide the holder with a right and an obligation to receive B shares at a nominal value of DKK 100. The price at the time of granting is fixed at DKK 381.88 (629.95) based on the average price on Nasdaq Copenhagen the first 10 business days after publication of Annual Report 2023 (2022). The restricted shares vest three years after the time of granting, meaning that this grant of shares vests in 2027 (2026). At this point, the holder may exercise the restricted share granting.

The number of granted restricted shares was adjusted by +2,480 (+3,537) shares in 2024 (2023) due to dividend distribution.

Based on the amended remuneration policy, the Board of Directors approved a new long-term incentive program (LTIP) for the members of the Executive Board. The members of the Executive Board was granted a total of 15,036 performance shares (PSU) in 2024. The total market value of the grant was DKK 5.7m at the time of granting.

The LTIP is forward-looking, and grants of PSUs are therefore not based on previous performance of Solar or the participant; instead vesting is dependent on the participant's continued employment with Solar and for 75 % of the PSUs

the achievement of certain forward-looking performance targets within (a) Solution Sales, (b) EBITDA margin and (c) CO2 reduction.

The PSUs vest after the expiry of a three-year lock-up period and simultaneously be converted into B-shares in Solar, subject to the fulfilment of the performance targets.

If the performance targets are only partly achieved, the participants will receive a proportion of the B-shares. If specified minimum targets are not met the vesting can lapse.

The number of performance restricted shares was adjusted by +1,097 shares in 2024 due to dividend distribution.

General information on Solar's incentive scheme is available on our website: https://www.solar.eu/ investor/policies.

5.2 Contingent liabilities and other financial liabilities

DKK million	2024	2023
Collateral
Assets have been pledged as collateral for bank arrangements at a carrying amount of:
Land and buildings	418	447
Total	418	447
Contracts for the construction of Logistics Centre, Kumla
Net obligation	339	0

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Separate financial statements Group companies overview Statements and reports Statements, not audited, part of Management review

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

1) Other assurance engagements mainly consist of ESG assurance in 2023 and 2024.

5.3 Related parties

Group and parent Solar A/S are subject to control by Fonden af 20. December (registered as a commercial foundation in Denmark), which owns 17.0% of the shares and holds 60.5% of the voting rights. The remaining shares are owned by a widely combined group of shareholders.

Other related parties include associates, the company's Board of Directors and Executive

5.4 Auditors' fees

DKK million	2024	2023
Deloitte
Statutory audit	3	3
Other assurance engagements1	1	1
Total	4	4

Board. There have been no transactions in the financial year with members of the Board of Directors and Executive Board other than those which appear from note 2.3 and note 5.1.

Solar invoices Fonden af 20. December for the performance of administrative services at DKK 55,000. Balances with Fonden af 20. December

total 0 on balance sheet date.

5.5 New financial reporting standards

IASB has issued two new standards: IFRS 18 Presentation and Disclosure in Financial Statements and IFRS 19 Subsidiaries without Public Accountability: Disclosures. IFRS 18 and IFRS 19 are effective from annual reporting periods beginning on or after 1 January 2027.

IFRS 18 Presentation and Disclosure in Financial Statements replaces IAS 1. IFRS 18 entails changes in the presentation of primarily the income statement and disclosures on management-defined performance measures (MPMs) in the notes to the financial statements. Solar is currently assessing the impact on the presentation of the income statement and disclosures of management-defined performance measurement.

IFRS 19 Solar does not expect that IFRS 19 or the amendments to existing standards will have impact on Solar's accounting policies.

Furthermore, IASB has issued amendments to existing standards (IAS 21, IFRS 7 and IFRS 9) that are effective from 1 January 2025 or 1 January 2026.

Consolidated financial statements Summary for the Solar Group Statement of comprehensive income

Separate financial statements Group companies overview Statements and reports Statements, not audited, part of Management review

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

5.6 Acquisitions of subsidiaries and activities

2023

On 7 December 2023, Solar A/S acquired 100% of the shares of Dunduru Plavas SIA in Latvia. The acquisition price is made up of a fixed amount of DKK 22m. The acquisition had an insignificant impact on Solar's 2023 revenue and EBITDA. If the acquisition had occurred on

Fair value at the date of acquisition:

DKK million	ThermoNova A/S	Dunduru Plavas SIA
Customer-related intangible assets	42	-
Property, plant and equipment	1	24
Inventories	19	3
Trade receivables	12	-
Cash	53	1
Provision for deferred tax	-9	-3
Other non-current liabilities, non-interest-bearing	-1	-
Current liabilities	-16	-2
Net assets	101	23
Non-controlling interest of acquired new assets	-49	-
Acquired net assets	52	23
Goodwill	122	-
Total consideration	174	23
Cash acquired	-53	-1
Deferred consideration	-10	-
Acquisition price on net debt-free basis	111	22

as part of external operating costs in the income

statement.

1 January 2023 the impact on Solar's full year 2023 revenue and EBITDA would have been insignificant as well. Transaction costs related to the acquisition totalled DKK 1m. These have been recognised On 1 March 2023, Solar A/S acquired 42.5% of the shares of ThermoNova A/S, a Danish manufacturer of high-capacity heat pumps.

The acquisition price is made up of a fixed amount of DKK 111m and a variable amount of DKK 10m.

The variable amount is related to the required expansion of the production capacity.

Simultaneous Solar A/S subscribed new issued shares for DKK 50m in ThermoNova A/S. In total Solar A/S owns 51% of the shares.

The acquisition had an insignificant impact on Solar's 2023 revenue and EBITDA. If the acquisition had occurred on 1 January 2023 the impact on Solar's full year 2023 revenue and EBITDA would have been insignificant as well.

Transaction costs related to the acquisition totalled DKK 5m. These have been recognised as part of external operating costs in the income statement.

The fair value of the customer related assets is based on the multi-period excess earningsmethod (MEEM). The fair value has been calculated as the net present value (NPV) of the future net cash-flow derived from the sale to the customers minus a fair return on the assets used to generate the sale. An interest rate of 10% has been applied.

The main factors leading to the recognition of goodwill are:

• the presence of certain intangible assets, such as the assembled workforce and knowhow, which do not qualify for separate recognition • expected synergies within sale which result in Solar being prepared to pay a premium.

The goodwill recognised is not deductible for tax purposes.

For the non-controlling interests in ThermoNova A/S, the group decided to recognise the noncontrolling interests at its proportionate share of the acquired net identifiable assets. See page 104 for Solar's accounting policies for business combinations.

Separate financial statements

147

Financial statements

Separate financial statements

Statement of comprehensive income Balance sheet
- Cash flow statement

Financial statements

Statement of changes in equity
Notes
Group companies overview
Statements and reports
Statements, not audited, part of Management review

Statement of comprehensive income

Notes	DKK million	2024	2023
2.1	Revenue	4,003	4,155
	Cost of sales	-3,108	-3,128
	Gross profit	895	1,027
	Other operating income	32	31
5.3	External operating costs	-32	-58
2.2	Staff costs	-573	-603
2.3	Loss on trade receivables	-2	-6
	Earnings before interest, tax, depreciation and amortisation (EBITDA)	320	391
2.4	Depreciation and write-down on property, plant and equipment	-90	-81
	Earnings before interest, tax and amortisation (EBITA)	230	310
2.4	Amortisation and impairment of intangible assets	-68	-64
	Earnings before interest and tax (EBIT)	162	246
	Profit from subsidiaries	76	215
	Share of net profit from associates	0	0
4.4	Financial income	36	42
4.5	Financial expenses	-102	-105
	Earnings before tax (EBT)	172	398
2.5	Income tax	-21	-51
2.6	Net profit for the year	151	347

Income statement Other comprehensive income

DKK million	2024	2023
Net profit for the year	151	347

Other income and costs recognised:
Items that can be reclassified to the income statement
Foreign currency translation adjustments of foreign subsidiaries	-36	-13
Fair value adjustments of hedging instruments before tax, parent company	0	-5
Tax on fair value adjustments of hedging instruments, parent company	0	1
Other income and costs recognised after tax	-36	-17

Total comprehensive income for the year	115	330

Balance sheet

Financial statements

Statements, not audited, part of Management review

Balance sheet

As at 31 December

Notes	DKK million	2024	2023	Notes	DKK million	2024	2023
	Assets				Equity and liabilities
3.1	Intangible assets	217	172	4.1	Share capital	736	736
3.2	Property, plant and equipment	380	422		Reserves	-66	-66
3.3	Right-of-use assets	100	110		Retained earnings	1,048	1,043
3.4	Investments measured at equity value	2,226	2,168		Proposed dividends for the financial year	110	219
3.4	Other non-current assets	22	24		Total equity	1,828	1,932
	Non-current assets	2,945	2,896
				4.3	Interest-bearing liabilities	425	434
3.5	Inventories	636	623		3.3, 4.3 Lease liabilities	70	80
3.6	Trade receivables	554	520	2.5	Provision for deferred tax	89	79
	Receivables from subsidiaries	184	264		Non-current liabilities	584	593
	Income tax receivable	6	0
	Other receivables	4	3	4.3	Interest-bearing liabilities	829	710
	Prepayments	27	32		3.3, 4.3 Lease liabilities	33	32
	Cash at bank and in hand	343	330		Trade payables	701	651
	Current assets	1,754	1,772		Amounts owed to subsidiaries	562	522
					Income tax payable	0	6
	Total assets	4,699	4,668	3.8	Other payables	157	210
					Prepayments	0	9
				3.7	Other provisions	5	3
					Current liabilities	2,287	2,143

					Liabilities	2,871	2,736

					Total equity and liabilities	4,699	4,668

Financial statements

Cash flow statement Statement of changes in equity Notes

Statements, not audited, part of Management review

Cash flow statement

Notes	DKK million	2024	2023	Notes	DKK million	2024	2023
	Net profit for the year	151	347		Investing activities
2.4	Depreciation, write-down and amortisation	158	145	3.1	Purchase of intangible assets	-113	-88
	Changes to provisions and other adjustments	-8	6		Purchase of property, plant and equipment	-11	-17
	Profit from subsidiaries	-76	-215		Disposal of property, plant and equipment	0	1
	4.4, 4.5 Financials, net	66	63		Changes to loans to subsidaries	121	159
	Income tax	21	51		Dividends from subsidiaries	7	7
4.4	Financial income, received	31	36		Acquistion of subsidiaries and activities	-10	-164
4.5	Financial expenses, settled	-96	-90		Capital increase subsidiaries	-26	0
	Income tax, settled	-24	-36		Cash flow from investing activities	-32	-102
	Cash flow before working capital changes	223	307
					Financing activities
	Working capital changes			4.3	Repayment of non-current interest-bearing debt	-9	-9
	Inventory changes	-13	202		Raising of non-current interest-bearing liabilities	100	150
	Receivables changes	-28	12		Change in current interest-bearing liabilities	19	176
	Non-interest-bearing liabilities changes	9	-151		Instalment on lease liabilities	-37	-36
	Cash flow from operating activities	191	370		Dividends paid to shareholders of Solar A/S	-219	-329
					Cash flow from financing activities	-146	-48

Total cash flow	13	220
Cash at bank and in hand at the beginning of the year	330	110
Cash at bank and in hand at the end of the year	343	330

Consolidated financial statements

Financial statements

Statement of changes in equity Notes

Statements, not audited, part of Management review

Statement of changes in equity

DKK million	Share capital	Reserves for hedging transactions1	Reserves for foreign currency translation adjustments1	Reserves for development costs1	Retained earnings	Proposed dividends	Total equity
2024
Equity as at 1 January	736	-13	-185	132	1,043	219	1,932
Foreign currency translation adjustments of foreign subsidiaries			-36				-36
Fair value adjustments of hedging instruments before tax		0					0
Tax on fair value adjustments		0					0
Net income recognised in equity via other comprehensive income in the statement of comprehensive income	0	0	-36	0	0	0	-36
Net profit for the year				36	5	110	151
Comprehensive income	0	0	-36	36	5	110	115
Distribution of dividends (DKK 30.00 per share)						-219	-219
Transactions with the owners	0	0	0	0	0	-219	-219
Equity as at 31 December	736	-13	-221	168	1,048	110	1,828

1) Reserves for hedging transactions, reserves for foreign currency translation adjustments and reserves for development costs are recognised in the balance sheet as a total amount under reserves.

	Consolidated financial statements

Statement of changes in equity Notes

Statements, not audited, part of Management review

Statement of changes in equity

Share capital	Reserves for hedging transactions1	Reserves for foreign currency translation adjustments1	Reserves for development costs1	Retained earnings	Proposed dividends	Total equity

736	-9	-172	111	936	329	1,931
		-13				-13
	-5					-5
	1					1
0	-4	-13	0	0	0	-17
			21	107	219	347
0	-4	-13	21	107	219	330
					-329	-329
0	0	0	0	0	-329	-329
736	-13	-185	132	1,043	219	1,932

1) Reserves for hedging transactions, reserves for foreign currency translation adjustments and reserves for development costs are recognised in the balance sheet as a total amount under reserves.

Financial statements

Statements, not audited, part of Management review

Section 1 Basis for preparation

Financial statements

Notes

Section 1 Basis for preparation
- Section 2 Income statement
- Section 3 Invested capital

Group companies overview

Statements, not audited, part of Management review

The separate financial statements of the parent company for 2024 are presented in accordance with the International Financial Reporting Standards (IFRSs) as approved by the EU and additional Danish disclosure requirements for annual reports of listed companies and the IFRS executive order issued in accordance with the Danish Financial Statements Act.

Section 1 – Basis for preparation

A general description of accounting policies can be found in the consolidated financial statements on pages 104-106 note 1.1, Accounting policies.

policies. Parent-specific descriptions are found in the following notes:

Note 2.5 Income tax Note 2.6 Net profit for the year
Note 3.1 Intangible assets
Note 3.2 Property, plant and equipment

Descriptions of accounting policies in notes Descriptions of accounting policies in the notes form part of the overall description of accounting

Note 3.3 Leases
Note 3.4 Investments measured at equity
value and other non-current assets
Note 3.5 Inventories
Note 3.6 Trade receivables
Note 3.7 Other provisions
Note 4.1 Share capital
Note 4.3 Financial instruments
Note 5.1 Contingent liabilities and other financial liabilities

1.1 General accounting policies 1.2 Significant accounting estimates and assessments

The following estimates and accompanying assessments are deemed material for the preparation of the financial statements:

Impairment test of software
Inventory write-down
Write-down for loss on doubtful receivables

These estimates and assessments are described in the following notes:

Note 3.1 Intangible assets Note 3.5 Inventories Note 3.6 Trade receivables

Financial statements

Section 2 – Income statement Section 3 – Invested capital

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 2 Income statement

Financial statements

Section 2 – Income statement Section 3 – Invested capital

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 2 – Income statement

2.1 Segment information

DKK million	Installation	Industry	Trade	Total
2024
Revenue	2,121	1,325	557	4,003
Cost of sales	-1,657	-975	-476	-3,108
Gross profit	464	350	81	895
Direct costs	-97	-61	-22	-180
Earnings before indirect costs	367	289	59	715
Indirect costs	-142	-46	-17	-205
Segment profit	225	243	42	510
Non-allocated costs				-190
Earnings before interest, tax, depreciation and amortisation (EBITDA)				320
Depreciation and amortisation				-158
Earnings before interest and tax (EBIT)				162
Financials, net incl. share of net profit from associates and impairment on associates and profit from subsidiaries				10
Earnings before tax (EBT)				172

DKK million	Installation	Industry	Trade	Total
2023
Revenue	2,171	1,443	541	4,155
Cost of sales	-1,640	-1,028	-460	-3,128
Gross profit	531	415	81	1,027
Direct costs	-101	-62	-19	-182
Earnings before indirect costs	430	353	62	845
Indirect costs	-155	-51	-18	-224
Segment profit	275	302	44	621
Non-allocated costs				-230
Earnings before interest, tax, depreciation and amortisation (EBITDA)				391
Depreciation and amortisation				-145
Earnings before interest and tax (EBIT)				246
Financials, net incl. share of net profit from associates and impairment on associates and profit from subsidiaries				152
Earnings before tax (EBT)				398

Financial statements

Section 2 – Income statement Section 3 – Invested capital

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.2 Staff costs

DKK million	2024	2023
Salaries and wages etc.	512	538
Pensions, defined contribution	44	43
Costs related to social security	14	14
Share-based payment	3	8
Total	573	603

Average number of employees (FTEs)	812	861

Number of employees at year-end (FTEs)	820	834
Remuneration of Board of Directors
Remuneration of Board of Directors	4	4
Remuneration of Executive Board
Salaries and wages etc.	17	23
Share-based payment	1	3
Total	18	26

Terms of notice for members of the Executive Board is 12 months. When stepping down, the members of the Executive Board are entitled to 12 (6) months' remuneration.

2.3 Loss on trade receivables

DKK million	2024	2023
Recognised losses	6	4
Received on trade receivables previously written off	0	0
	6	4
Change in write-down for bad and doubtful debts	-4	2
Total	2	6

Relevant accounting policies are described in note 3.6 trade receivables.

2.4 Depreciation, write-down and amortisation

DKK million	2024	2023
Buildings	22	16
Plant, operating equipment, tools and equipment	28	26
Leasehold improvements	2	2
Tenancy, lease	20	19
Cars, lease	8	9
IT equipment, lease	10	9
Total depreciation and write-down on property, plant and equipment	90	81
Customer-related assets	1	1
Software	64	61
Impairment of intangible assets	3	2
Total amortisation and impairment of intangible assets	68	64

Relevant accounting policies are described in note 3.1, intangible assets, and note 3.2, property, plant and equipment and note 3.3, leases.

2.5 Income tax

DKK million	2024	2023
Current tax	13	40
Deferred tax	10	11
Tax on profit or loss for the year	23	51
Tax on taxable profit previous year	-2	9
Change in deferred tax previous year	0	-9
Total	21	51
Statement of effective tax rate:
Danish income tax rate	22.0%	22.0%
Profit/loss from subsidiaries	-9.5%	-11.9%
Impairment on / gain from sale of / reversal of impairment on associates	0.1%	0.3%
Non-taxable/deductible items in parent	0.7%	2.2%
Tax regarding prevoius year	-1.0%	0.2%
Effective tax rate	12.3%	12.8%

Accounting policies

Balance sheet

Financial statements

Separate financial statements Statement of comprehensive income

Section 2 – Income statement Section 3 – Invested capital

Section 4 – Capital structure and financing costs

Group companies overview

Statements, not audited, part of Management review

Section 2 – Income statement Section 3 – Invested capital

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.5 Income tax – continued

DKK million	2024	2023
Deferred tax 1/1	79	78
Recognised in other comprehensive income	0	-1
Ordinary tax recognised in income statement	10	2
Deferred tax 31/12	89	79

Specified as follows:
Deferred tax	89	79
Total deferred tax, net	89	79

Further specified as follows:
Expected use after 1 year	89	79
Total, net	89	79

Specification by balance sheet items

DKK million	2023	Ordinary tax recognised in income statement	2024
Property, plant and equipment	24	0	24
Provisions for loss on receivables	-1	0	-1
Other items1	56	10	66
Total, net	79	10	89

1) Other items particularly cover intangible assets and loss balances in jointly taxed entities.

Accounting policies

Deferred tax assets are assessed annually and only recognised to the extent that it is probable that they will be utilised.

Deferred tax is also recognised for the covering of retaxation of losses in former foreign subsidiaries participating in joint taxation assessed as becoming current.

Separate financial statements
-------------------------------	--	--	--

Balance sheet
Cash flow statement

Financial statements

Statement of changes in equity
Notes

Section 1 – Basis for preparation

Section 2 Income statement Section 3 – Invested capital
-

Statements, not audited, part of Management review

2.6 Net profit for the year

DKK million	2024	2023
Proposed distribution of net profit for the year:
Proposed dividend	110	219
Reserves for development costs	36	21
Retained earnings	5	107
Net profit for the year	151	347

Ordinary dividend in DKK per share of DKK 1001	15.00	30.00

1) Calculations are based on proposed dividends.

Accounting policies

Dividends Proposed dividends are recognised as a liability at the time of adoption of the general meeting.

Financial statements

Section 3 – Invested capital

Statements, not audited, part of Management review Section 3

Invested capital

Solar A/S Annual Report 2024

Consolidated financial statements
-----------------------------------	--	--

Group companies overview

Statements, not audited, part of Management review

Section 3 – Invested capital

3.1 Intangible assets

DKK million	Customer-related assets	Software	Total
2024
Cost 1/1	5	783	788
Additions during the year	0	113	113
Disposals during the year	0	-323	-323
Cost 31/12	5	573	578
Amortisation and impairment 1/1	4	612	616
Amortisation during the year	1	64	65
Impairment during the year	0	3	3
Amortisation of abandoned assets	0	-323	-323
Amortisation and impairment 31/12	5	356	361
Carrying amount 31/12	0	217	217
Remaining amortisation period in number of years	1	1-8	-

Accounting policies

Customer-related intangible assets

Customer-related intangible assets acquired in connection with business combinations are measured at cost less accumulated amortisation and impairment loss.

Customer-related intangible assets are amortised using the straight-line principle over the expected useful life. Typically, the amortisation period is 5-7 years.

Software

Software is measured at cost less accumulated amortisation and impairment. Cost includes both direct internal and external costs. Software is amortised using the straight-line principle over 4-8 years. The basis of amortisation is reduced by any impairment.

Financial statements

Group companies overview

Statements, not audited, part of Management review

3.1 Intangible assets – continued

DKK million	Customer-related assets	Software	Total
2023
Cost 1/1	5	701	706
Additions during the year	0	88	88
Disposals during the year	0	-6	-6
Cost 31/12	5	783	788
Amortisation and impairment 1/1	3	555	558
Amortisation during the year	1	61	62
Impairment during the year	0	2	2
Amortisation of abandoned assets	0	-6	-6
Amortisation and impairment 31/12	4	612	616
Carrying amount 31/12	1	171	172
Remaining amortisation period in number of years	2	1-8	-

Accounting policies

Impairment of intangible assets

The carrying amount of intangible assets is assessed annually to determine whether there is any indication of impairment.

Impairment loss is recognised when the carrying amount of an asset exceeds the asset's recoverable amount. Impairment loss is recognised in the income statement.

Impairment loss on intangible assets is reversed if changes have been made to the assumptions and estimates that led to the impairment loss.

Accounting estimates and assessments

Software

Software is evaluated annually for indicators of a need for impairment. If a need to perform impairment is identified, an impairment test for the software is performed.

The impairment test is made on the basis of different factors, including the software's future application, the present value of the expected cost saving as well as interest and risks.

Group companies overview

Statements, not audited, part of Management review

Solar A/S Annual Report 2024

3.2 Property, plant and equipment

DKK million	Land and buildings	Plant, operating equipment, tools and equipment	Leasehold improvements	Assets under construction	Total
2024
Cost 1/1	486	250	14	6	756
Additions during the year	2	10	0	5	17
Disposals during the year	0	-8	0	-6	-14
Cost 31/12	488	252	14	5	759
Write-down and depreciation 1/1	218	106	10	0	334
Write-down and depreciation during the year	22	28	2	0	52
Write-down and depreciation of abandoned assets	0	-7	0	0	-7
Write-down and depreciation 31/12	240	127	12	0	379
Carrying amount 31/12	248	125	2	5	380

Accounting policies

Property, plant and equipment

Land and buildings as well as other plant, operating equipment, and tools and equipment are measured at cost less accumulated depreciation and write-down.

Subsequent expenditure, for example in connection with the replacement of components of property, plant or equipment, is recognised in the carrying amount of the relevant asset when it is probable that the incurrence will result in future economic benefits for the group. The replaced components cease to be recognised in the balance sheet and the carrying amount is transferred to the income statement. All other general repair and maintenance costs are recognised in the income statement when these are incurred.

Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives which are:

• Buildings 40 years

• Technical installations 20 years

• Plant, operating equipment, and tools and equipment 2-5 years

There are a few differences from the mentioned depreciation periods in which useful life is estimated as shorter. Leasehold improvements are depreciated over the lease term, however, maximum 5 years.

Land is not depreciated.

Statements, not audited, part of Management review

3.2 Property, plant and equipment – continued

DKK million	Land and buildings	Plant, operating equipment, tools and equipment	Leasehold improvements	Assets under construction	Total
2023
Cost 1/1	481	254	14	3	752
Additions during the year	6	8	0	3	17
Disposals during the year	-1	-12	0	0	-13
Cost 31/12	486	250	14	6	756
Write-down and depreciation 1/1	203	91	8	0	302
Write-down and depreciation during the year	16	26	2	0	44
Write-down and depreciation of abandoned assets	-1	-11	0	0	-12
Write-down and depreciation 31/12	218	106	10	0	334
Carrying amount 31/12	268	144	4	6	422

Accounting policies

By changing the depreciation period or residual value, the effect of future depreciation is recognised as a change to accounting estimates.

Impairment of property, plant and equipment

The carrying amount of property, plant and equipment is assessed annually to determine whether there is any indication of impairment.

Impairment loss is recognised when the carrying amount of an asset exceeds the asset's recoverable amount. Impairment loss is recognised in the income statement.

Write-down on property, plant and equipment is reversed to the extent that changes have been made to the assumptions and estimates that led to the write-down.

Separate financial statements Statement of comprehensive income

Group companies overview Statements and reports Statements, not audited, part of Management review

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

3.3 Leases

Right-of-use assets

DKK million	Tenancy	Cars	IT equipment	Total
2024
Cost 1/1	132	40	51	223
Additions during the year	9	10	10	29
Disposals during the year	-6	-11	-14	-31
Cost 31/12	135	39	47	221
Write-down and depreciation 1/1	64	25	24	113
Write-down and depreciation during the year	20	8	10	38
Write-down and depreciation of abandoned assets	-6	-10	-14	-30
Write-down and depreciation 31/12	78	23	20	121

DKK million	Tenancy	Cars	IT equipment	Total
2023
Cost 1/1	98	34	24	156
Additions during the year	34	10	27	71
Disposals during the year	0	-4	0	-4
Cost 31/12	132	40	51	223
Write-down and depreciation 1/1	45	20	15	80
Write-down and depreciation during the year	19	9	9	37
Write-down and depreciation of abandoned assets	0	-4	0	-4
Write-down and depreciation 31/12	64	25	24	113
Carrying amount 31/12	68	15	27	110

Accounting policies

Right-of-use assets

Right-of-use assets are lease assets arising from a lease agreement. Lease assets are initially measured at cost consisting of the amount of the initial measurement of the lease liability with addition of lease payments made to the lessor at or before the commencement date less any lease incentives received. Three different types of leases have been identified:

• Tenancy • Cars • IT equipment

The lease assets are depreciated on a straight-line basis over the lease term. The carrying amount of the right-of-use asset can be adjusted due to modifications to the lease agreement or in special cases reassessment of the lease term.

Financial statements

Group companies overview

Statements, not audited, part of Management review

3.3 Leases – continued

Short-term lease liabilities

DKK million	2024	2023
Maturity < 1 year	33	32
Short-term lease liabilities 31/12	33	32

Long-term lease liabilities

DKK million	2024	2023
Maturity > 1 year < 5 years, undiscounted	73	78
Maturity > 5 years, undiscounted	1	7
Long-term lease liabilities 31/12, undiscounted	74	85
Discounting on lease liabilities > 1 year < 5 years	-4	-5
Long-term lease liabilities 31/12	70	80

Amounts recognised in the Profit & Loss statement

DKK million	2024	2023
Depreciation of Right-of-use assets	38	36
Interest expense on lease liabilities	4	2
Expense relating to variable lease payments not included in the measurement of lease liabilities	2	2
Total	44	40

Cash outflows for leases
Instalment on lease liabilities	-37	-36
Interest payments	-4	-2
Total cash outflows for leases	-41	-38

Accounting policies

Lease liabilities

The lease liability will be remeasured when changes occur due to modifications to the contract (extension, termination etc.), indexation or in special cases reassessment of the lease term.

Financial statements

Statements, not audited, part of Management review

3.4 Investments measured at equity value and other non-current assets

DKK million	Investment measured at equity value	Investments in associates	Other investments	Other recievables	Total
2024
Cost 1/1	2,765	5	60	17	2,847
Additions during the year	26	0	0	0	26
Disposals during the year	0	0	0	-1	-1
Cost 31/12	2,791	5	60	16	2,872
Value adjustment 1/1	-597	-5	-45	-8	-655
Foreign currency translation adjustments	-36	0	0	0	-36
Dividends from subsidiaries	-8	0	0	0	-8
Profit from subsidiaries	76	0	0	0	76
Fair value adjustment recognised under financial expenses	0	0	-3	0	-3
Fair value adjustment recognised under financial income	0	0	2	0	2
Value adjustment 31/12	-565	-5	-46	-8	-624
Carrying amount 31/12	2,226	0	14	8	2,248

An amount of DKK 47m have been impaired relating to goodwill in the subsidiary Thermonova which is included in Profit from subsidiaries.

Accounting policies

Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the parent company's share of the post-acquisition profits or losses of the subsidiary in profit or loss statement, and the parent company's share of movements in other comprehensive income of the investee in other comprehensive income.

Dividends received or receivable from subsidiaries are recognised as a reduction in the carrying amount of the investment.

Unrealised gains on transactions between the parent company and its subsidiaries are eliminated to the extent of the parent company's interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the parent company.

The carrying amount of equity-accounted investments is tested for impairment.

Other investments are measured at fair value.

3.4 Investments measured at equity value and other non-current assets – continued

Financial statements	DKK million	Investment measured at equity value	Investments in associates	Other investments	Other recievables	Total
Consolidated financial statements	2023
	Cost 1/1	2,591	16	60	15	2,682
Separate financial statements	Additions during the year	174	0	0	2	176
Statement of comprehensive income	Transferred from Other receivables to other investments	0	0	0	0	0
Balance sheet	Disposals during the year	0	-11	0	0	-11
Cash flow statement	Cost 31/12	2,765	5	60	17	2,847
Statement of changes in equity
Notes	Value adjustment 1/1	-791	-16	-37	-8	-852
Section 1 – Basis for preparation	Foreign currency translation adjustments	-14	0	0	0	-14
Section 2 – Income statement	Dividends from subsidiaries	-7	0	0	0	-7
Section 3 – Invested capital	Profit from subsidiaries	215	0	0	0	215
Section 4 – Capital structure Fair value adjustment recognised under and financing costs financial expenses		0	0	-8	0	-8
Section 5 – Other notes	Other adjustments	0	11	0	0	11
	Value adjustment 31/12	-597	-5	-45	-8	-655
Group companies overview
Statements and reports	Carrying amount 31/12	2,168	0	15	9	2,192

Statements, not audited,

part of Management review

At the acquisition of Thermonova as at 1 March 2023, DKK 122m was allocated to goodwill.

3.5 Inventories

DKK million	2024	2023
End products	636	623

Recognised write-down	-6	1

Financial statements

Statements, not audited, part of Management review

	The main reasons for the recognised write-downs is an increase in write-down articles.

Accounting policies

Inventories are measured at cost according to the FIFO method or at net realisable value, if this is lower.

Cost of inventories includes purchase price with addition of delivery costs.

Accounting estimates and assessments

Write-down of inventories

Write-down of inventories is made due to the obsolescence of products.

Management specifically assess inventories, including the products' turnover rate, current economic trends and product development when deciding whether the write-down is sufficient.

Separate financial statements Statement of comprehensive income

Group companies overview Statements and reports Statements, not audited, part of Management review

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

3.6 Trade receivables1

DKK million	2024	2023
Maturity statement, trade receivables
Not due	517	488
Past due for 1-30 day(s)	32	33
Past due for 31-90 days	6	6
Past due for 91+ days	4	3
	559	530
Write-down	-5	-10
Total	554	520

Write-down based on:
Age distribution	2	3
Individual assessment	3	7
Total	5	10

Write-down 1/1	10	8
Write-down for the year	1	6
Losses realised during the year	-3	-1
Reversed for the year	-3	-3
Write-down 31/12	5	10

1) A factoring arrangement on non-recourse conditions is established with a few major customers. As a result trade receivables is reduced with approx. DKK 103m (DKK 93m).

We refer to the consolidated accounts, note 3.6, trade receivables, for information on credit risk.

Accounting policies

Accounting estimates and assessments

Write-down for meeting of loss on doubtful trade receivables The IFRS 9 simplified approach is applied to measure expected credit losses, which uses a lifetime expected loss allowance for all trade receivables.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the day past invoicing.

Individual assessment of write-down is performed by management specifically analysing trade receivables, including the customers' credit rating and current economic trends to ensure that write-down is sufficient. Write-down based on individual assessment amounts to 0.5% (1.3%) of gross trade receivables. As the total write-down on trade receivables amounts to 0.9% (2%) of gross trade receivables, no maturity statement of the write-down is included. However, the majority of the provision relates to receivables overdue by more than 31 days (31 days).

Solar A/S Annual Report 2024 171

3.7 Other provisions

DKK million	2024	2023
Current
Other provisions	5	3
Total 31/12	5	3

Specification, current
1/1	3	2
Reversed during the year	-3	-2
Provisions of the year	5	3
Total 31/12	5	3

3.8 Other payables

DKK million	2024	2023
Staff costs	80	109
Taxes and charges	21	30
Interest rate swaps	17	17
Other payables and amounts payable	39	54
Total	157	210

Accounting policies for hedging instruments are described in note 4.3 Financial instruments.

Statements, not audited, part of Management review

Financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review Section 4

Capital structure and financing costs

Financial statements

Statements, not audited, part of Management review

Section 4 – Capital structure and financing costs

4.1 Share capital

DKK million	2024	2023
Share capital 1/1	736	736
Change in share capital	0	0
Share capital 31/12	736	736

Share capital is fully paid in and divided into the following classes:
A shares, 900,000 at DKK 100, 10 votes per share	90	90
B shares, 6,460,000 at DKK 100, 1 vote per share	646	646
Total	736	736

		Number of shares		Nominal value (DKK million)
	2024	2023	2024	2023
A shares outstanding 31/12	900,000	900,000	90	90

B shares outstanding
Outstanding 1/1	6,403,187	6,403,187	640	640
Divestment of treasury shares	0	0	0	0
B shares outstanding 31/12	6,403,187	6,403,187	640	640

Total shares outstanding 31/12	7,303,187	7,303,187	730	730

Consolidated financial statements

Group companies overview

Statements, not audited, part of Management review

Section 4 – Capital structure and financing costs

4.2 Treasury shares

Treasury shares (B shares)	Number of shares			Nominal value (DKK million)		Cost (DKK million)		Percentage of share capital
	2024	2023	2024	2023	2024	2023	2024	2023
Holding 1/1	56,813	56,813	6	6	22	22	0.7%	0.7%
Divestment	0	0	0	0	0	0	0.0%	0.0%
Holding 31/12	56,813	56,813	6	6	22	22	0.7%	0.7%

All treasury shares are held by the parent company in order to cover the Executive Board's incentive schemes.

Treasury shares

Acquisition and disposal sums related to treasury shares are recognised directly in transactions with the owners.

Financial statements

Statements, not audited, part of Management review

4.3 Financial instruments

Financial assets and financial liabilities

DKK million	Interest rate	2024	2023
Debt to mortgage credit institutions	Fixed 1	187	195
Bank loans and overdrafts	Fixed 1	249	250
Lease liabilities	Calculated	103	112
Bank loans and overdrafts	Floating	818	699
Interest-bearing liabilities		1,357	1,256
Trade payables 2		701	651
Other payables		157	210
Financial liabilities		2,215	2,117
Cash at bank and in hand		343	330
Trade receivables		554	520
Other receivables		221	299
		1,118	1,149

1) Interest swaps have been used to hedge floating-rate loans, converting these loans to fixed-rate loans.

2) Solar participates in supplier financing arrangement with a few suppliers. As a result trade payables are increased with approx. DKK 141m (DKK 140m).

Accounting policies

Financial liabilities

Debt to bank and credit institutions is recognised initially at fair value that corresponds to the proceeds received net of transaction costs incurred.

Fair value measurement

Fair value is a market-based and not enterprise-specific valuation. The enterprise uses the assumptions that market participants would use when pricing an asset or liability based on existing market conditions, including assumptions relating to risks.

As far as possible, fair value measurement is based on market value in active markets (level 1) or alternatively on values derived from observable market information (level 2).

If such observable information is not available or cannot be used without significant modifications, recognised valuation methods and fair estimates are used as the basis of fair values (level 3).

Separate financial statements Statement of comprehensive income

Group companies overview Statements and reports Statements, not audited, part of Management review

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

4.3 Financial instruments – continued

Financial liabilities, maturity statement

DKK million	2024	2023
Current interest-bearing liabilities
Maturity < 1 year
Debt to mortgage credit institutions	11	11
Lease liabilities	32	31
Bank loans and overdrafts	818	699
Current interest-bearing liabilities	861	741
Other financial liabilities	858	861
Financial liabilities	1,719	1,602
Current financial assets	1,118	1,149
Net current financial liabilities	601	453
Maturity 1-5 year(s)
Debt to mortgage credit institutions	47	45
Bank loans and overdrafts	249	250
Lease liabilities	70	74
Total	366	369

Maturity > 5 years
Debt to mortgage credit institutions	129	139
Lease liabilities	1	7
Total	130	146

Total non-current liabilities	496	515
Maturity, until year	2042	2042

The carrying amount of financial liabilities corresponds to fair value.

Of long-term bank loans and overdrafts DKK 150m is subject to covenants measured on gearing on a quarterly basis. There is no indication that covenants cannot be met for the next 12 months.

DKK million	2024	2023
Interest-bearing liabilities and maturity statement for expected interest expense for the period
< 1 year	22	23
1-5 year(s)	41	41
> 5 years	33	40
Total	96	104

Interest rate sensitivity

DKK million	2024	2023
Effect of a 1% interest rate increase at the end of the year
Effect on equity	2	3
Of this, earnings impact is	-4	-5

Undrawn credit facilities 31/12	945	863

Financial liabilities, foreign currency risk exposure

Distribution on currencies	Current liabilities			Non-current liabilities
DKK million	2024	2023	2024	2023
EUR	124	147	101	106
DKK	705	563	324	328
SEK	0	0	0	0
Total	829	710	425	434

Interest rate in %	3.7-5.6	4.3-5.7	3.9-5.6	4.3-5.6

The parent company has raised loans in Danish kroner and euro. We refer to the consolidated accounts, note 4.4, Financial instruments ,for more information on liquidity risk, interest rate and currency risk management.

Separate financial statements
-------------------------------	--	--	--

Statement of comprehensive income
Balance sheet
Cash flow statement

Financial statements

Statement of changes in equity
Notes
Section 1 Basis for preparation
Section 2 Income statement
Section 3 Invested capital
Section 4 Capital structure and financing costs
- Section 5 Other notes

Group companies overview

Statements, not audited, part of Management review

4.3 Financial instruments – continued

Hedging activities

DKK million	2024	2023
Outstanding interest swaps made for hedging floating-rate loans
Principal amount	361	367
Interest rate in % for outstanding swaps	4.5-5.6	4.5-5.6
Fair value	-17	-17

Maturity for interest swaps follows the maturity for debt to mortgage credit institutions as stated on previous page.

DKK million	2024	2023
Amounts recognised in other comprehensive income
Adjustment to fair value for the year	-5	-10
Realised during the year, recognised as financial income/expenses	5	5
Total	0	-5

Reconciliation of development in interest-bearing debt to financing activities in the cash flow statement

DKK million	2024	2023
Interest-bearing liabilities 1/1	1,256	905
Repayment of non-current interest-bearing debt	-9	-9
Raising of non-current interest-bearing liabilities	100	150
Change in current interest-bearing debt	19	176
Instalment on lease liabilities	-37	-36
Lease liability raised during the year, non-cash	29	71
Foreign currency translation adjustment	-1	-1
Interest-bearing liabilities 31/12	1,357	1,256

Accounting policies

Derivatives

Derivatives are only used to hedge financial risks in the form of interest rate and currency risks.

Derivatives are recognised at fair value. Both realised and unrealised gains and losses are recognised in the income statement unless the derivatives are part of hedging of future transactions. Value adjustments of derivatives for hedging of future transactions are recognised directly in other comprehensive income. Any non-effective part of the financial instrument in question is recognised in the income statement. Derivatives are recognised under other receivables or other payables.

Financial statements

Group companies overview

Statements, not audited, part of Management review

DKK million	2024	2023
Interest income	16	15
Foreign exchange gains	3	6
Fair value adjustments on investments	2	0
Other financial income	15	21
Total	36	42

Financial income, received	31	36

4.4 Financial income 4.5 Financial expenses

DKK million	2024	2023
Interest expenses	84	82
Foreign exchange losses	3	7
Interest on lease liabilities	4	2
Fair value adjustments, other financial investments	3	8
Other financial expenses	8	6
Total	102	105

Financial expenses, settled	96	90

Financial statements

Section 5 – Other notes

Statements, not audited, part of Management review

Section 5

Group companies overview

Statements, not audited, part of Management review

Section 5 – Other notes

5.1 Contingent liabilities and other financial liabilities

DKK million	2024	2023
Collateral
Assets have been pledged as collateral for bank arrangements at a carrying amount of:
Land and buildings	243	262
Total	243	262

Mortgaging and guarantees
As security of subsidiaries' bank arrangements, guarantees have been issued for:
Total	105	92

As security of subsidiaries' liabilites, guarantees have been issued for:
Total	502	561

Separate financial statements Statement of comprehensive income

Group companies overview Statements and reports Statements, not audited, part of Management review

Section 1 – Basis for preparation Section 2 – Income statement Section 3 – Invested capital Section 4 – Capital structure and financing costs Section 5 – Other notes

Other related parties include subsidiaries, associates, the company's Board of Directors and Executive Board. There have been no transactions in the financial year with members of the Board of Directors and Executive Board other than those which appear from note 2.2.

The parent company has had the following significant transactions with related parties: 1) Other assurance engagements mainly consist of ESG assurance in 2023 and 2024.

DKK million	2024	2023

Sale of services to subsidiaries	173	169

Sale of goods to subsidiaries	147	150

Interest income from subsidiaries	13	17

Interest expense from subsidiaries	6	6

On the balance sheet date, the usual product balances derived from these transactions exist. These appear from the parent company's balance sheet.

Solar also invoices Fonden af 20. December for the performance of administrative services at DKK 55,000 (DKK 55,000). Balances with Fonden af 20. December total 0 on balance sheet date.

5.2 Related parties 5.3 Auditors' fees

DKK million	2024	2023
Deloitte
Statutory audit	2	2
Other assurance engagements1	1	1
Total	3	3

Group companies overview

Consolidated financial statements Separate financial statements

Group companies overview

Statements, not audited, part of Management review

Group companies overview

Name	Reg. no.	Currency	Share capital	Country
Solar A/S	15908416	DKK	736,000,000	DK
Solar Sverige AB	5562410406	SEK	100,000,000	SE
Solar Norge AS	980672891	NOK	70,000,000	NO
Solar Nederland B.V.	09013687	€	67,000,500	NL
Eltechna B.V.	23066336	€	18,151	NL
MAG45 Holding B.V.	17213145	€	28,544	NL
MAG45 B.V.	17168649	€	18,000	NL
MAG45 Sp.z.oo	277409	PLN	50,000	PL
MAG45 GmbH	32297	€	25,000	DE
MAG45 Ltd	311859	€	152	IE
MAG45 (UK) Ltd	4092664	£	301	UK
MAG45 S.a.r.l.	CHE-265.557.148	CHF	20,000	CH
MAG45 INC	35-2568242	\$	1,457	USA
MAG45 S.R.O	27697690	CZK	200,000	CZ
MAG45 Iss Co. Ltd	91320594693364287L	\$	80,000	CN
MAG45 Ltd	39740334	EUR	1	HK
MAG45 Pte Ltd.	201709959H	SG\$	100,000	SG
MAG45 Kft	09-09-029346	HUF	3,000,000	HU
MAG45 Srl	10053890967	€	20,000	IT
MAG45 Sarl	919450692	€	100,000	FR
Solar Polska Sp.z.oo	0000003924	PLN	65,050,000	PL
P/F Solar Føroyar	P/F 104	DKK	12,000,000	FO
SD of 16 March GmbH	HRB 516 NM	€	51,400,000	DE
SD of 17 March Gesellschaft für Vermögensverwaltung mbH SD of 16 March Gesellschaft für	HRB 16642 KI	€	25,000	DE
Vermögensverwaltung mbH	HRB 16638 KI	€	2,556,500	DE
SD of 16 March Immobilienverwaltung GmbH	HRB 16616 KI	€	25,000	DE

Companies fully owned by Solar A/S Companies fully owned by Solar A/S – continued

73316111	DKK	500,000	DK
38378171	DKK	5,000,000	DK
74111416	DKK	1,450,500	DK
40203326011	EUR	2,801	LV
41503039257	EUR	426,800	LV

Companies, where Solar's equity interest is less than 100%

Subsidiaries, where Solar's equity interest is more than 50%

Name	Reg. no.	Currency	Share capital	Country
Thermonova A/S, 51.00%	38132369	DKK	468,687	DK

Companies, where Solar's equity interest is less than 50%

Name	Reg. no.	Currency	Share capital	Country
Associates
Monterra AB, 30.00%	559103-4847	SEK	50,000	SE
Zolw AS, 35.00%	925 003 328	NOK	48,000	NO
Edison Data AS, 20.00%	928 651 150	NOK	1,800,000	NO
Other financial investments
LetsBuild Holding SA, 8.07%	0656.613.388	EUR	30,457,207	BE
Minuba ApS, 19.98%	33259336	DKK	100,771	DK
SiteHub ApS, 20.00%	41823194	DKK	50,000	DK

Statements and reports

185

Financial statements

Statement by the Executive Board and the Board of Directors

Financial statements	The Board of Directors and the Executive Board	together with a description of the principal risks	Vejen, 6 February 2025
Consolidated financial statements	have today considered and approved the Annual Report of Solar A/S for the financial year 1	and uncertainties that the Group and the Parent face.
Separate financial statements	January – 31 December 2024.		EXECUTIVE BOARD
Group companies overview	The Annual Report is prepared in accordance with	The Sustainability Statement is prepared in accordance with the European Sustainability
Statements and reports	IFRS Accounting Standards as adopted by the EU and disclosure requirements for listed companies	Reporting Standards (ESRS) as required by the Danish Financial Statements Act as well as article	Jens E. Andersen	Michael H. Jeppesen
Statement by the Executive Board and the Board of Directors	in Denmark.	8 in the EU Taxonomy regulation.	CEO	CFO
Independent auditor's report	In our opinion, the consolidated financial statements and the separate financial statements	Furthermore, in our opinion, the annual report of Solar A/S for the financial year 1 January
Independent auditor's limited assurance report on Sustainability statement	for the parent company give a true and fair view of the Group's and the Parent's financial position at 31. December 2024 as well as of the results of	– 31 December 2024, with the file name SOLA-2024-12-31-0-en.zip, is prepared, in all material respects, in accordance with the ESEF	BOARD OF DIRECTORS
Statements, not audited, part of Management review	their operations and the Group's cash flows for the year 1 January – 31 December 2024. In our opinion, the Management review is prepared in accordance with relevant laws and	Regulation. We recommend the Annual Report for adoption at the Annual General Meeting.	Michael Troensegaard Andersen Chair	Jesper Dalsgaard Vice-chair	Peter Bang
	regulations and contains a fair review of the development of the Group's and the Parent's business and financial matters, the results for the year and of the Parent's financial position and		Katrine Borum	Morten Chrone	Denise Goldby
	the financial position as a whole of the entities included in the consolidated financial statements,		Louise Knauer	Rune Jesper Nielsen	Michael Kærgaard Ravn

Statement by the Executive Board and the Board of Directors

Statements and reports

Independent auditor's report

Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review

Independent auditor's report

To the shareholders of Solar A/S

Report on the consolidated financial statements and the separate financial statements Opinion We have audited the consolidated financial statements and the separate financial statements of for the financial year 01.01.2024 – 31.12.2024, which comprise the income statement, statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and notes, including material accounting policy information, for the Group as well as for the Parent. The consolidated financial statements and the separate financial statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.

In our opinion, the consolidated financial statements and the separate financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2024, and of the results of their operations and cash flows for the financial year 01.01.2024 – 31.12.2024 in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.

Our opinion is consistent with our audit book comments issued to the Audit Committee and the Board of Directors.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the "Auditor's responsibilities for the audit of the consolidated financial statements and the separate financial statements" section of this auditor's report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, we have not provided any prohibited non-audit services as referred to in Article 5(1) of Regulation (EU) No 537/2014.

We were appointed auditors of for the first time on 19.03.2021 for the financial year 2021. We have been reappointed annually by decision of the general meeting for a total contiguous engagement period of 4 years up to and including the financial year 2024.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements and the separate financial statements for the financial year 01.01.2024 – 31.12.2024. These matters were addressed in the context of our audit of the consolidated financial

statements and the separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Recognition of revenue

Recognition of revenue is complex due to the volume of transactions and the variety of revenue streams within the different segments. We focused on this area due to the large number of transactions involved and because recognition of revenue involves accounting policy decisions and judgements made by Management, originating from different customer behavior, market conditions and customer agreements. Further, the number of transactions and extent of revenue streams require various IT setups to ensure correct revenue recognition, which are complex and involve an inherent risk to the revenue recognition process. Reference is made to note 2.1 in the consolidated financial statements.

How the identified key audit matter was addressed in our audit

We assessed and tested the design, implementation, and operating effectiveness of relevant internal controls, including test of relevant IT controls, for the different revenue streams primarily relating to 3-way-match of revenue and authorization for manual revenue journals.

In addition, we sample tested revenue transactions, including manual revenue journals and customer bonuses throughout 2024 to underlying documentation. We have focused

our sample selection on transactions which were considered unusual by nature or were generated outside the normal billing and revenue recognition process.

We also tested cut-off on revenue recognized around the balance sheet date and performed retrospective reviews of returned goods and sample test on credit notes to test the accuracy and completeness of revenue recognition for the year.

Statement on the management commentary

Management is responsible for Management's Review.

Our opinion on the Financial Statements does not cover Management's Review, and we do not as part of the audit express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements, our responsibility is to read Management's Review and, in doing so, consider whether Management's Review is materially inconsistent with the Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Moreover, we considered whether Management's Review includes the disclosures required by the Danish Financial Statements Act. This does not include the requirements in paragraph 99a related to the sustainability statement covered by the separate auditor's limited assurance report hereon.

Consolidated financial statements Separate financial statements Group companies overview

Statements and reports

Statement by the Executive Board and the Board of Directors

Independent auditor's report

Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review

Based on the work we have performed, in our view, Management's Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act except for the requirements in paragraph 99a related to the sustainability statement, cf. above. We did not identify any material misstatement in Management's Review.

Management's responsibilities for the consolidated financial statements and the separate financial statements

Management is responsible for the preparation of consolidated financial statements and separate financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of consolidated financial statements and separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements and the separate financial statements, Management is responsible for assessing the Group's and the Parent's ability to continue as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going concern basis of accounting in preparing the consolidated financial statements and the separate financial statements unless Management either intends to liquidate the Group

or the Entity or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the consolidated financial statements and the separate financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and these separate financial statements.

As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements and the separate financial

statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
Conclude on the appropriateness of Management's use of the going concern basis of accounting in preparing the consolidated financial statements and the separate financial statements, and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements and

the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Entity to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements and the separate financial statements, including the disclosures in the notes, and whether the consolidated financial statements and the separate financial statements represent the underlying transactions and events in a manner that gives a true and fair view.
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements and the separate financial statements to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Consolidated financial statements Separate financial statements Group companies overview

Statements and reports

Statement by the Executive Board and the Board of Directors

Independent auditor's report

Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and, where applicable, safeguards put in place and measures taken to eliminate threats.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements and the separate financial statements of the current period and are therefore the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on compliance with the ESEF Regulation

As part of our audit of the consolidated financial statements and the separate financial statements of we performed procedures to express an opinion on whether the annual report for the financial year 01.01.2024 – 31.12.2024, with the file name SOLA-2024-12-31-0-en.zip, is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815

on the European Single Electronic Format (ESEF Regulation), which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the consolidated financial statements including notes.

Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes:

The preparing of the annual report in XHTML format;
The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for financial information required to be tagged using judgement where necessary;
Ensuring consistency between iXBRL tagged data and the consolidated financial statements presented in human readable format; and
For such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation.

Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the

auditor's judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error. The procedures include:

Testing whether the annual report is prepared in XHTML format;
Obtaining an understanding of the company's iXBRL tagging process and of internal control over the tagging process;
Evaluating the completeness of the iXBRL tagging of the consolidated financial statements including notes;

- Evaluating the appropriateness of the company's use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified;

Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and
Reconciling the iXBRL tagged data with the audited consolidated financial statements.

In our opinion, the annual report of Solar A/S for the financial year 01.01.2024 – 31.12.2024, with the file name SOLA-2024-12-31-0-en.zip, is prepared, in all material respects, in compliance with the ESEF Regulation.

Aarhus, 6 February 2025

Deloitte

Statsautoriseret Revisionspartnerselskab Business Registration No 33963556

Henrik Vedel

State Authorised Public Accountant Identification No (MNE) mne10052

Jakob Olesen

State Authorised Public Accountant Identification No (MNE) mne34492

Consolidated financial statements

Statement by the Executive Board and the Board of Directors

Statements and reports

Independent auditor's report
Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review

To the stakeholders of Solar A/S

Limited assurance conclusion

We have conducted a limited assurance engagement on the sustainability statement of Solar A/S ("Group") included in the Management's Review (the "sustainability statement"), pages 39 – 93, for the financial year 1 January – 31 December 2024.

sustainability statement

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the sustainability statement is not prepared, in all material respects, in accordance with the Danish Financial Statements Act section 99 a, including:

compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the sustainability statement (the "Process") is in accordance with the description set out in the Methodology and process on pages 53 and 54 and
compliance of the disclosures in section EU Taxonomy Reporting within the environmental section of the sustainability statement with Article 8 of EU Regulation 2020/852 (the "Taxonomy Regulation").

Basis for conclusion

We conducted our limited assurance engagement in accordance with ISAE 3000 (Revised),

Assurance engagements other than audits or reviews of historical financial information, and additional requirements applicable in Denmark.

The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the "Auditor's responsibilities for the assurance engagement" section of our report.

Our independence and quality management

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

Deloitte Statsautoriseret Revisionspartnerselskab applies International Standard on Quality Management 1, ISQM1, which requires the firm to design, implement and operate a system of quality management including policies or procedures

regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Other matter

Independent auditor's limited assurance report on

The comparative information included in the Sustainability statement of the Group was not subject to an assurance engagement on sustainability information prepared in accordance with the Danish Financial Statements Act section 99 a. Our conclusion is not modified in respect of this matter.

Inherent limitations in preparing the sustainability statement

In reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.

Management's responsibilities for the sustainability statement

Management is responsible for designing and implementing a process to identify the information reported in the sustainability statement in accordance with the ESRS and for disclosing this Process in Methodology and process of the sustainability statement. This responsibility includes:

understanding the context in which the Group's activities and business relationships take place and developing an understanding of its affected stakeholders;

the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group's financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;
the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and
making assumptions that are reasonable in the circumstances.

Management is further responsible for the preparation of the sustainability statement, in accordance with the Danish Financial Statements Act section 99a, including:

compliance with the ESRS;
preparing the disclosures in EU Taxonomy Reporting within the environmental section of the sustainability statement, in compliance with Article 8 of the Taxonomy Regulation;
designing, implementing and maintaining such internal control that management determines is necessary to enable the preparation of the sustainability statement that is free from material misstatement, whether due to fraud or error; and

Statement by the Executive Board and the Board of Directors

Statements and reports

Independent auditor's report

Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review

the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the circumstances.

Auditor's responsibilities for the assurance engagement

Our objectives are to plan and perform the assurance engagement to obtain limited assurance about whether the sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the sustainability statement as a whole.

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement.

Our responsibilities in respect of the Process include:

Obtaining an understanding of the Process but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process;
Considering whether the information identified addresses the applicable disclosure requirements of the ESRS, and

Designing and performing procedures to evaluate whether the Process is consistent with the Group's description of its Process, as disclosed in the section Methodology and process on pages 53 and 54.

Our other responsibilities in respect of the sustainability statement include:

Identifying disclosures where material misstatements are likely to arise, whether due to fraud or error; and
Designing and performing procedures responsive to disclosures in the sustainability statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Summary of the work performed

A limited assurance engagement involves performing procedures to obtain evidence about the sustainability statement.

The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the sustainability statement.

In conducting our limited assurance engagement, with respect to the Process, we:

Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management; and reviewing the Group's internal documentation of its Process; and
Evaluated whether the evidence obtained from our procedures about the Process implemented by the Group's was consistent with the description of the Process set out in section Double materiality assessment introduction on pages 44-52.

In conducting our limited assurance engagement, with respect to the sustainability statement, we:

Obtained an understanding of the Group's reporting processes relevant to the preparation of its sustainability statement including the consolidation processes by obtaining an understanding of the Group's control environment, processes and information systems relevant to the preparation of the Sustainability Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness;
Evaluated whether material information identified by the Process is included in the sustainability statement;
Evaluated whether the structure and the presentation of the sustainability statement are in accordance with the ESRS;
Performed inquiries of relevant personnel and analytical procedures on selected information in the sustainability statement;
Performed substantive assurance procedures on selected information in the sustainability statement;
Evaluated methods, assumptions and data for developing material estimates and forwardlooking information and how these methods were applied;
Obtained an understanding of the process to identify taxonomy-eligible and taxonomyaligned economic activities and the corresponding disclosures in the sustainability statement and management's review

Aarhus, 6 February 2025

Deloitte

Statsautoriseret Revisionspartnerselskab CVR-nr. 33963556

Henrik Vedel

State Authorised Public Accountant mne10052

Søren Marquart Alsen

State Authorised Public Accountant mne40040

Statements, not audited, part of Management review

Consolidated financial statements Separate financial statements

Statements, not audited, part of Management review

Q4 2024

Consolidated financial statements Separate financial statements Group companies overview Statements and reports

Solar A/S Annual Report 2024

Q4 2024

Consolidated

Quarterly figures

	Q1			Q2		Q3		Q4
Income statement (DKK million)	2024	2023	2024	2023	2024	2023	2024	2023
Revenue	3,030	3,656	3,100	3,250	2,860	2,965	3,233	3,160
Earnings before interest, tax, depreciation and amortisation (EBITDA)	88	280	137	214	202	187	219	190
Earnings before interest, tax and amortisation (EBITA)	26	226	77	159	143	132	154	131
Earnings before interest and tax (EBIT)	10	209	56	121	125	114	87	114
Financials, net	-16	-20	-22	-20	-24	-21	-23	-29
Earnings before tax (EBT)	-6	189	34	101	101	93	63	85
Net profit or loss for the quarter	-6	145	25	77	78	71	51	55

Statements, not audited, part of Management review

Q1		Q2		Q3	Q4
2024	2023	2024	2023	2024 2023	2024	2023
1,877	1,756	1,880	1,761	1,879 1,809	1,900	1,893
4,205	4,858	4,339	4,556	4,385 4,456	4,208	4,219
6,082	6,614	6,219	6,317	6,264 6,265	6,108	6,112
1,726	1,759	1,770	1,810	1,831 1,910	1,874	1,982
891	737	881	894	871 877	878	908
3,465	4,118	3,568	3,613	3,562 3,478	3,356	3,222
1,450	1,530	1,334	1,558	1,646 1,480	1,232	1,157
3,157	3,263	3,085	3,342	3,460 3,366	3,089	3,120
1,876	2,347	1,720	2,265	2,036 2,253	1,693	1,907
2,075	2,149	1,939	2,251	1,885 2,268	1,831	2,193

Consolidated – continued

	Q1			Q2		Q3		Q4
Cash flows (DKK million)	2024	2023	2024	2023	2024	2023	2024	2023
Cash flow from operating activities	7	101	202	78	-196	190	525	486
Cash flow from investing activities	-57	-162	-70	-54	-82	-102	-56	-87
Cash flow from financing activities	-57	171	-85	-38	165	-109	-278	-199
Net investments in intangible assets	-34	-20	-41	-25	-38	-26	-41	-31
Net investments in property, plant and equipment	-23	-30	-19	-29	-44	-76	-15	-34
Acquisition and disposal of subsidiaries, net	0	-111	-10	0	0	0	0	-22

Consolidated financial statements Separate financial statements Group companies overview Statements and reports

Financial statements

Statements, not audited, part of Management review

	Q1		Q2			Q3		Q4
Financial ratios (% unless otherwise stated)	2024	2023	2024	2023	2024	2023	2024	2023
Revenue growth	-17.1	5.6	-4.6	-5.8	-3.5	-9.2	2.3	-14.2
Organic growth	-17.1	8.3	-5.0	-2.2	-3.8	-6.2	2.3	-12.5
Organic growth adjusted for number of working days	-15.4	6.7	-7.8	-1.0	-5.3	-4.7	3.0	-11.1
Gross profit margin	20.7	23.2	20.4	22.7	20.7	21.5	20.8	22.4
EBITDA margin	2.9	7.7	4.4	6.6	7.1	6.3	6.8	6.0
EBITA margin	0.9	6.2	2.5	4.9	5.0	4.5	4.8	4.1
EBIT margin	0.3	5.7	1.8	3.7	4.4	3.8	2.7	3.6
Net working capital (NWC end of period)/revenue	15.1	16.7	14.0	16.3	16.8	16.6	13.9	14.6
Net working capital (NWC average)/revenue	16.7	15.3	15.8	16.2	15.5	16.7	15.0	16.8
Gearing (interest-bearing liabilities,net/EBITDA), no. of times	2.1	1.3	2.2	1.4	2.7	1.5	1.9	1.3
Return on equity (ROE)	10.9	35.0	8.6	32.7	8.8	25.5	8.4	18.3
Return on invested capital (ROIC)	8.5	23.2	6.6	20.5	6.8	16.9	8.3	13.2
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)	8.6	5.7	10.0	5.7	11.1	6.2	8.4	7.0
Equity ratio	27.6	25.9	27.7	27.9	28.5	29.7	29.9	31.6

Consolidated – continued

		Q1		Q2		Q3		Q4
Share ratios (DKK unless otherwise stated)	2024	2023	2024	2023	2024	2023	2024	2023
Earnings per share outstanding (EPS)	-0.68	19.85	3.70	10.54	10.68	9.72	6.98	7.39
Intrinsic value per share outstanding	229.63	234.14	235.92	241.13	244.28	254.82	250.3	264.54
Share price	331.37	553.54	325.27	506.42	354.55	476.27	299.27	465.71
Share price/intrinsic value	1.44	2.36	1.38	2.10	1.45	1.87	1.20	1.76

Statements, not audited, part of Management review

Financial statements

Consolidated financial statements Separate financial statements Group companies overview Statements and reports

Consolidated financial statements Separate financial statements Group companies overview Statements and reports

	Q1		Q2		Q3			Q4
Employees	2024	2023	2024	2023	2024	2023	2024	2023
Average number of employees (FTE's)	2,997	3,042	2,954	3,058	2,923	3,049	2,899	3,036

Definitions
Organic growth	Revenue growth adjusted for enterprises acquired and sold off and any exchange rate changes. No adjustments have been made for number of working days.
Organic growth adjusted for number of working days	Revenue growth adjusted for enterprises acquired and sold off and any exchange rate changes and number of working days.
Net working capital	Inventories and trade receivables less trade payables.
ROIC	Return on invested capital calculated on the basis of EBIT exclusive impairment on goodwill less tax calculated using the effective tax rate adjusted for one-off effects, if any.

In all material aspects financial ratios are calculated in accordance with the Danish Finance Society's "Recommendations & Financial Ratios".

Statements, not audited, part of Management review

Q4 2024
- Additional ESG data points

Q4 EBITDA amounted to DKK 219m

EBITDA increased to DKK 219m, positively affected by DKK 49m from the proceeds of the sale of

(Data shown in brackets relate to the corresponding period in 2023)

our warehouse in Örebro.

Financial review

Q4 2024 Revenue

Our guidance for 2024 assumed that all segments would show negative growth, with recovery gaining ground by the end of the year. However, recovery was slower and was less robust than expected. Consequently, revenue was below expectations.

Revenue amounted to DKK 3.2bn (DKK 3.2bn). Adjusted organic growth increased to 3.0% (-11.1%). When adjusted for Solar Polaris' deliveries to a major solar park project, adjusted organic growth amounted to around 0%.

Revenue from Climate & Energy, a strategic focus area, amounted to around DKK 423m (DKK 256m). Q4 posted an increase in residential sales, confirming the long-term potential of heat pumps.

The Installation segment returned to positive adjusted organic growth of approx. 2%. Apart from Solar Sverige, all main markets saw positive growth.

The Industry segment delivered adjusted organic growth of approx. -1%, with Solar Norge delivering double-digit positive growth.

The Trade segment delivered adjusted organic growth of approx. 20%, positively affected by Solar Polaris' deliveries to a major solar park project. When adjusted for Solar Polaris' deliveries, organic growth amounted to approx. -7%.

It remains our assessment that we maintained our market share within the Installation and Industry segments in all material respects.

Gross profit

Moreover, improvements to our delivery service increased freight costs.

Gross profit margin at group level amounted to 20.8% (22.4%). The decline in gross profit margin, adjusted for one-off supplier bonus in 2024 and one-off price effects in 2023, amounted to 2.5 percentage points.

Other operating income

Other operating income of DKK 49m is accounted for by non-recurring income from the sale of our warehouse in Örebro. An announcement of the sale of the two warehouses in Sweden, prior to the finalisation of our new logistics centre in Kumla, was made in the 2023 Annual Report.

Gross profit margin

EBITDA DKKm

Consolidated financial statements Separate financial statements Group companies overview Statements and reports

Statements, not audited, part of Management review

Consolidated financial statements Separate financial statements

External operating costs and staff costs

We actively initiate measures to mitigate the impact of cost inflation and the expected slowdown in the market. These measures proved effective and in Q4 2024, external operating and staff costs declined by DKK 18m to 15.4% (16.3%) of revenue.

EBITDA

EBITDA of DKK 219m (DKK 190m) was above our expectations. Adjusted for non-recurring income in Q4 2024, the underlying EBITDA margin amounted to 4.6% (6.2%).

The results from the individual markets are given on pages 204-205.

Amortisation and impairment of intangible assets

Amortisation and impairment of intangible assets amounted to DKK 67m (DKK 17m). The slower-than-anticipated growth in sales was the main factor behind the impairment loss on Thermonova of DKK 47m in 2024. However, we remain confident in the potential of highcapacity Thermonova heat pumps.

Earnings before tax

Earnings before tax amounted to DKK 63m (DKK 85m).

Income tax

Income tax amounted to DKK 12m (DKK 30m).

Net profit

Net profit amounted to DKK 51m (DKK 55m).

Cash flows

Net working capital as an average of the previous four quarters amounted to 15.0% (16.8%) of revenue. Net working capital at the end of 2024 decreased to 13.9% (14.6%).

Cash flow from operating activities totalled DKK 525m (DKK 486m). We succeeded in reducing inventories, which resulted in a cash flow impact of DKK 47m (DKK 171m). Changes in receivables impacted cash flow by DKK 292m (DKK 298m). Changes in non-interest-bearing liabilities had a cash flow impact of DKK 42m (DKK -129m).

Total cash flow from investing activities amounted to DKK -56m (DKK -87m). The sale of our warehouse in Örebro had a positive impact of DKK 61m. In 2023, DKK -22m related to the acquisition of additional land in Latvia.

Cash flow from financing activities amounted to DKK -278m (DKK -199m) due to a change in current interest-bearing liabilities and the raising of non-current interest-bearing liabilities of DKK 100m.

As a result, total cash flow amounted to DKK 191m (DKK 200m).

Net interest-bearing liabilities amounted to DKK 1,232m (DKK 1,157m).

At the end of 2024, Solar had undrawn credit facilities of DKK 1,028m (DKK 955m).

Invested capital

Solar Group's invested capital totalled DKK 3,089m (DKK 3,120m). ROIC amounted to 8.3% (13.2%). Activities with a Solar equity interest of less than 50% and activities attributable to non-controlling interests are not included in the ROIC calculation. Invested capital includes operating assets and liabilities only.

Installation

posted positive growth.

margin of 8.6% (9.8%).

Our Installation segment covers the installation of electrical, heating and plumbing products.

Installation revenue for Q4 amounted to DKK 1,793m (DKK 1,764m), which corresponds to overall adjusted organic growth of around 2% (-11%) related to the electrical as well as the heating and plumbing business. Solar Sverige saw negative growth while all other main markets

Segment profit amounted to DKK 154m (DKK 173m), which corresponds to a segment profit

Installation

154

173

Industry

Q4 2024

Trade

Statements, not audited, part of Management review

Financial statements

Q4 2024

Additional ESG data points

Our segments Q4 2024

Industry

This segment covers the industry, offshore and marine industries as well as utilities and infrastructure. Industry also includes MAG45 and Thermonova.

Industry revenue for Q4 amounted to DKK 1,068m (DKK 1,096m). This corresponds to overall adjusted organic growth of around -1% (-4%). Solar Norge saw positive growth while other main markets posted negative growth. Installation 1,793

Segment profit amounted to DKK 173m (DKK 186m). This corresponds to a segment profit margin of 16.2% (17.0%). Industry Trade 1,068 372 Q4 2024

Trade

Our Trade segment covers special sales and other niche areas. It also includes Solar Polaris and Højager Belysning.

Revenue from Trade for Q4 amounted to DKK 372m (DKK 300m). This corresponds to overall adjusted organic growth of around 20% (-30%) which was positively affected by Solar Polaris' deliveries to a major solar park project. When adjusted for Solar Polaris' deliveries, organic growth amounted to approx. -7%.

Segment profit amounted to DKK 36m (DKK 42m), which corresponds to a segment profit margin of 9.7% (14.0%).

Segment profit includes items that are directly attributable to the individual segment and items that can be reliably allocated to the individual segment.

Segment profit does not include nonallocated costs of DKK 144m (DKK 211m) in Q4, which cover income and costs related to joint group functions and to costs that cannot be reliably allocated to the individual segment.

Detailed segment information is given on page 204.

Consolidated financial statements Separate financial statements Group companies overview Statements and reports

Statements, not audited, part of Management review

Financial statements

Consolidated financial statements Separate financial statements Group companies overview Statements and reports

	Q4
DKK million	2024	2023
Revenue	3,233	3,160
Cost of sales	-2,562	-2,451
Gross profit	671	709
Other operating income and costs	49	-1
External operating costs	-91	-101
Staff costs	-407	-415
Loss on trade receivables	-3	-2
Earnings before interest, tax, depreciation and amortisation (EBITDA)	219	190
Depreciation and write-down on property, plant and equipment	-65	-59
Earnings before interest, tax and amortisation (EBITA)	154	131
Amortisation and impairment of intangible assets	-67	-17
Earnings before interest and tax (EBIT)	87	114
Share of net profit from associates	-1	0
Financial income	34	22
Financial expenses	-57	-51
Earnings before tax (EBT)	63	85
Income tax	-12	-30
Net profit for the period	51	55
Earnings in DKK per share outstanding (EPS)	10.13	7.39
Diluted earnings in DKK per share outstanding (EPS-D)	10.10	7.37
Attributable to:
Shareholders of Solar A/S	51	54
Non-controlling interests	0	1
Net profit for the period	51	55

Income statement Other comprehensive income

DKK million	2024	2023
Net profit for the period	51	55

Other income and costs recognised:

Items that can be reclassified for the income statement
Foreign currency translation adjustment of foreign subsidiaries	-7	23
Fair value adjustment of hedging instruments before tax	0	-8
Tax on fair value adjustments of hedging instruments	0	2
Other income and costs recognised after tax	-7	17
Total comprehensive income for the period	44	72

Attributable to:
Shareholders of Solar A/S	44	71
Non-controlling interests	0	1
Total comprehensive income for the period	44	72

Statements, not audited, part of Management review

Financial statements

Consolidated financial statements Separate financial statements Group companies overview Statements and reports

Balance sheet

Consolidated

	31.12			31.12
DKK million	2024	2023	DKK million	2024	2023
Assets			Equity and liabilities
Intangible assets	381	348	Share capital	736	736
Property, plant and equipment	1,070	1,066	Reserves	-234	-198
Right-of-use assets	408	440	Retained earnings	1,216	1,175
Deferred tax assets	11	7	Proposed dividend for the financial year	110	219
Investments in associates	3	4	Equity attributable to shareholders of Solar A/S	1,828	1,932
Other non-current assets	27	28	Non-controlling interests	46	50
Non-current assets	1,900	1,893	Total equity	1,874	1,982

Inventories	1,888	2,029	Interest-bearing liabilities	425	434
Trade receivables	1,657	1,648	Lease liabilities	284	320
Income tax receivable	20	25	Provision for deferred tax	157	143
Receivables from construction contracts	4	0	Other provisions	12	11
Other receivables	107	17	Non-current liabilities	878	908
Prepayments	73	59
Cash at bank and in hand	459	441	Interest-bearing liabilities	841	714
Current assets	4,208	4,219	Lease liabilities	141	130
			Trade payables	1,852	1,770
Total assets	6,108	6,112	Income tax payable	8	54
			Payables from construction contracts	35	0
			Other payables	462	520
			Prepayments	8	13
			Other provisions	9	21
			Current liabilities	3,356	3,222

Total equity and liabilities 6,108 6,112

Statements, not audited, part of Management review

Financial statements

Cash flow statement

Consolidated

	Q4
DKK million	2024	2023
Net profit for the period from continuing operations	51	55
Depreciation, write-down and amortisation	132	76
Changes to provisions and other adjustments	-53	8
Share of net profit from associates	1	0
Financials, net	23	29
Income tax	12	30
Financial income, received	16	15
Financial expenses, settled	-39	-37
Income tax, settled	1	-30
Cash flow before working capital changes	144	146
Working capital changes
Inventory changes	47	171
Receivables changes	292	298
Non-interest-bearing liabilities changes	42	-129
Cash flow from operating activities	525	486
Investing activities
Purchase of intangible assets	-41	-31
Purchase of property, plant and equipment	-76	-34
Disposal of property, plant and equipment	61	0
Acquisition of subsidaries and activities
	0	-22

		Q4
DKK million	2024	2023
Financing activities
Repayment of non-current, interest-bearing debt	-2	-2
Raising of non-current interest-bearing liabilities	100	0
Change in current interest-bearing debt	-341	-160
Instalment on lease liabilities	-34	-37
Dividends paid to non-controlling interests	-1	0
Cash flow from financing activities	-278	-199
Total cash flow	191	200

Cash at bank and in hand at the beginning of period	268	241
Cash at bank and in hand at the end of period	459	441

Revenue

Financial statements

Consolidated financial statements

Statements, not audited, part of Management review

Consolidated financial statements Separate financial statements Group companies overview Statements and reports

As additional material activities started in Q4 2024 a new specification of revenue is included.

		Q4
DKK million	2024	2023
Sales of goods and services	3,139	3,160
Revenue from construction contracts	94	0
Total revenue	3,233	3,160

Consolidated financial statements
Separate financial statements
Group companies overview
Statements and reports

Statements, not audited, part of Management review

Q4 2024
Additional ESG data points

Segment information

Segment income and costs include any items that are directly attributable to the individual segment and any items that can be reliably allocated to the individual segment. Non-allocated costs refer to income and costs related to joint group functions. Assets and liabilities are not included in segment reporting.

Revenue and costs in the amount of DKK 94m and DKK 87m, respectively, from construction contracts recognized over time are fully allocated to the Trade segment.

Income statement (DKK million)	Installation	Industry	Trade	Total
Q4 2024
Revenue	1,793	1,068	372	3,233
Cost of sales	-1,453	-794	-315	-2,562
Gross profit	340	274	57	671
Direct costs	-72	-41	-10	-123
Earnings before indirect costs	268	233	47	548
Indirect costs	-114	-60	-11	-185
Segment profit	154	173	36	363
Non-allocated costs				-144
Earnings before interest, tax, depreciation and amortisation (EBITDA)				219
Depreciation and amortisation				-132
Earnings before interst and tax (EBIT)				87
Financials, net including share of net profit from associates and impairment on associates				-24
Earnings before tax (EBT)				63

Income statement (DKK million)	Installation	Industry	Trade	Total
Q4 2023
Revenue	1,764	1,096	300	3,160
Cost of sales	-1,406	-809	-236	-2,451
Gross profit	358	287	64	709
Direct costs	-69	-44	-9	-122
Earnings before indirect costs	289	243	55	587
Indirect costs	-116	-57	-13	-186
Segment profit	173	186	42	401
Non-allocated costs				-211
Earnings before interest, tax, depreciation and amortisation (EBITDA)				190
Depreciation and amortisation				-76
Earnings before interst and tax (EBIT)				114
Financials, net including share of net profit from associates and impairment on associates				-29
Earnings before tax (EBT)				85

Segment information – continued

Geographical information

Revenue and costs in the amount of DKK 94m and DKK 87m, respectively, from construction contracts recognized over time are fully allocated to the Danish market.

				Q4						Q4
Statements, not audited, part of Management review	DKK million	Revenue	Adjusted organic growth	EBITDA	EBITDA margin	Non-current assets	DKK million	Revenue	Adjusted organic growth	EBITDA	EBITDA margin	Non-current assets
	2024						2023
Q4 2024	Denmark	1,087	8.2	91	8.4	835	Denmark	1,020	-9.2	97	9.5	899
Additional ESG data points	Sweden	567	-3.6	67	11.8	291	Sweden	599	-9.6	35	5.8	214
	Norway	487	7.3	22	4.5	203	Norway	464	-13.8	25	5.4	225
	The Netherlands	729	-1.9	29	4.0	396	The Netherlands	732	-18.4	20	2.7	421
	Poland	113	7.9	1	0.9	50	Poland	103	-5.6	2	1.9	48
	Other markets	250	1.6	9	3.6	125	Other markets	242	8.1	11	4.5	86
	Solar Group	3,233	3.0	219	6.8	1,900	Solar Group	3,160	-11.1	190	6.0	1,893

Statements, not audited, part of Management review

Consolidated financial statements Separate financial statements

Additional ESG data points

Statements, not audited, part of Management review

Financial statements