Solar — Annual Report 2025

Statements, not audited, part of Management review

Summary for the Solar Group

2021-2025

Income statement (DKK million)	2025	2024	2023	2022	2021
Revenue	12,171	12,223	13,031	13,863	12,354
Earnings before interest, tax, depreciation and amortisation (EBITDA)	501	646	871	1,175	911
Earnings before interest, tax and amortisation (EBITA)	241	400	648	978	727
Earnings before interest and tax (EBIT)	155	278	558	909	672
Financials, net	-71	-85	-90	-50	-48
Earnings before tax (EBT)	84	192	468	858	622
Net profit for the year	74	148	348	660	531

Balance sheet (DKK million)	2025	2024	2023	2022	2021
Non-current assets	2,486	1,900	1,893	1,564	1,415
Current assets	3,810	4,208	4,219	4,337	3,890
Balance sheet total	6,296	6,108	6,112	5,901	5,305
Total equity	1,996	1,874	1,982	1,931	1,952
Non-current liabilities	1,113	878	908	709	435
Current liabilities	3,187	3,356	3,222	3,261	2,918
Interest-bearing liabilities, net	1,625	1,232	1,157	1,074	-37
Invested capital	3,608	3,089	3,120	2,978	1,866
Net working capital, year-end	1,648	1,693	1,907	2,205	1,259
Net working capital, average	1,812	1,831	2,193	2,010	1,363

Cash flow (DKK million)	2025	2024	2023	2022	2021
Cash flow from operating activities	410	538	855	16	783
Cash flow from investing activities	-651	-265	-405	-259	-191
Cash flow from financing activities	-85	-255	-175	-82	-515
Net investments in intangible assets	-126	-154	-102	-59	-58
Net investments in property, plant and equipment	-214	-101	-169	-167	-125
Acquisition and divestment of subsidiaries and operations, net	-311	-10	-133	-34	0

Financial ratios (% unless otherwise stated)	2025	2024	2023	2022	2021
Revenue growth	-0.4	-6.2	-6.0	12.2	7.8
Organic growth	-1.4	-6.3	-3.3	12.9	6.4
Organic growth adjusted for number of working days	-0.9	-6.4	-2.6	12.9	5.9
Gross profit margin	20.4	20.6	22.5	23.4	22.4
EBITDA margin	4.1	5.3	6.7	8.5	7.4
EBITA margin	2.0	3.3	5.0	7.1	5.9
EBIT margin	1.3	2.3	4.3	6.6	5.4
Effective tax rate	12.6	22.7	25.6	23.1	14.6
Net working capital (year-end NWC)/revenue (LTM)	13.5	13.9	14.6	15.9	10.2
Net working capital (average NWC)/revenue (LTM)	14.9	15.0	16.8	14.5	11.0
Gearing (net interest-bearing liabilities/EBITDA), no. of times	3.2	1.9	1.3	0.9	0.0
Return on equity (ROE)	3.9	8.0	18.0	34.0	29.1
Return on invested capital (ROIC)	3.0	8.3	13.2	25.5	24.6
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)	13.1	8.4	7.0	5.7	7.8
Equity ratio	31.0	29.9	31.6	32.7	36.8

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Consolidated financial statements

Statements, not audited, part of Management review

Summary for the Solar Group

Employees 2025 2024 2023 2022 2021 Average number of employees (FTE's) 2,932 2,899 3,036 3,019 2,908

2021-2025 – continued

Share ratios (DKK unless otherwise stated)	2025	2024	2023	2022	2021	Definitions
Earnings per share outstanding (EPS)	10.02	20.68	47.51	90.37	72.72	Organic growth	Revenue growth adjusted for businesses acquired and sold off and any exchange rate
Intrinsic value per share outstanding	245.31	250.30	264.54	264.41	267.28		changes. No adjustments have been made for number of working days.
Cash flow from operating activities per share outstanding	55.49	73.67	117.07	2.19	107.23	Organic growth	Revenue growth adjusted for businesses acquired and sold off and any exchange rate
Share price	200.07	299.27	465.71	622.62	795.05	adjusted for number of working days	changes and number of working days.
Share price/intrinsic value	0.82	1.20	1.76	2.35	2.97
Ordinary dividend per share	-	15.00	30.00	45.00	45.00	Net working capital	Inventories and trade receivables less trade payables.
Extraordinary dividend per share	-	-	-	-	45.00	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
Total dividend in % of net profit for the year (payout ratio)	-	72.1	63.1	49.8	123.8		one-off effects, if any.
Price Earnings (P/E)	20.0	14.5	9.8	6.9	10.9

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

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Consolidated financial statements

Statement of comprehensive income

Statements, not audited, part of Management review

Statement of comprehensive income

2.1, 2.2 Revenue
		12,171	12,223
	Cost of sales	-9,692	-9,702
	Gross profit	2,479	2,521
	Other operating income	76	88
5.4	External operating costs	-394	-369
2.3	Staff costs	-1,649	-1,580
2.4	Loss on trade receivables	-11	-14
	Earnings before interest, tax, depreciation and amortisation (EBITDA)	501	646
2.5	Depreciation and write-down on property, plant and equipment	-260	-246
	Earnings before interest, tax and amortisation (EBITA)	241	400
2.5	Amortisation and impairment of intangible assets	-86	-122
	Earnings before interest and tax (EBIT)	155	278
3.4	Share of net profit from associates	0	-1
4.5	Financial income	51	63
4.6	Financial expenses	-122	-148
	Earnings before tax (EBT)	84	192
2.6	Income tax	-10	-44
2.7	Net profit for the year	74	148

	Attributable to:
	Shareholders of Solar A/S	74	151
	Non-controlling interests	0	-3
	Net profit for the year	74	148

4.3	Earnings in DKK per share outstanding (EPS) for the year	10.02	20.68
4.3	Diluted earnings in DKK per share outstanding (EPS-D) for the year	9.98	20.60

Income statement Other comprehensive income

DKK million	2025	2024
Net profit for the year	74	148
Other income and costs recognised:
Items that can be reclassified to the income statement
Foreign currency translation adjustments of foreign subsidiaries	33	-36
Fair value adjustments of hedging instruments before tax	5	0
Tax on fair value adjustments of hedging instruments	-1	0
Other income and costs recognised after tax	37	-36
Total comprehensive income for the year	111	112
Attributable to:
Shareholders of Solar A/S	111	115
Non-controlling interests	0	-3
Total comprehensive income for the year	111	112

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Consolidated financial statements

Balance sheet

Statements, not audited, part of Management review

Balance sheet

As at 31 December

Notes	DKK million	2025	2024
	Assets
3.1	Intangible assets	651	381
3.2	Property, plant and equipment	1,347	1,070
3.3	Right-of-use assets	427	408
2.6	Deferred tax assets	36	11
3.4	Investments in associates	3	3
	Other non-current assets	22	27
	Non-current assets	2,486	1,900

3.5	Inventories	1,871	1,888
3.6	Trade receivables	1,714	1,657
	Income tax receivable	11	20
3.7	Contract assets	5	4
	Other receivables	13	107
	Prepayments	63	73
	Cash at bank and in hand	133	459
	Current assets	3,810	4,208

	Total assets	6,296	6,108

Notes	DKK million	2025	2024
	Equity and liabilities
4.1	Share capital	801	736
	Reserves	-196	-234
	Retained earnings	1,345	1,216
	Proposed dividends for the financial year	0	110
	Equity attributable to shareholders of Solar A/S	1,950	1,828
	Non-controlling interests	46	46
	Total equity	1,996	1,874

4.4	Interest-bearing liabilities	664	425
	3.3, 4.4 Lease liabilities	290	284
3.8	Provision for pension obligations	0	0
2.6	Provision for deferred tax	148	157
3.9	Other provisions	11	12
	Non-current liabilities	1,113	878

4.4	Interest-bearing liabilities	650	841
	3.3, 4.4 Lease liabilities	154	141
	Trade payables	1,937	1,852
	Income tax payable	11	8
3.7	Contract liabilities	17	35
3.10	Other payables	387	462
	Prepayments	3	8
3.9	Other provisions	28	9
	Current liabilities	3,187	3,356
	Liabilities	4,300	4,234

	Total equity and liabilities	6,296	6,108

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Consolidated financial statements

Cash flow statement

Statements, not audited, part of Management review

Cash flow statement

Notes	DKK million	2025	2024
	Net profit or loss for the year	74	148
2.5	Depreciation, write-down, amortisation and impairment	346	368
	Changes to provisions and other adjustments	-64	-103
	Share of net profit from associates	0	1
	4.5, 4.6 Financials, net	71	85
	Income tax	11	44
4.5	Financial income, received	33	33
4.6	Financial expenses, settled	-97	-114
	Income tax, settled	-18	-69
	Cash flow before working capital changes	356	393

	Working capital changes
	Inventory changes	117	113
	Receivables changes	143	-64
	Non-interest-bearing liabilities changes	-206	96
	Cash flow from operating activities	410	538

	Investing activities
3.1	Purchase of intangible assets	-126	-154
	Purchase of property, plant and equipment	-420	-162
	Disposal of property, plant and equipment	206	61
5.6	Acquisition of businesses	-311	-10
	Cash flow from investing activities	-651	-265

Notes	DKK million	2025	2024
	Financing activities
	4.4, 4.6 Repayment of non-current interest-bearing debt	-111	-9
4.4	Raising of non-current interest-bearing liabilities	250	100
4.4	Change in current interest-bearing debt	-78	11
	3.3, 4.4 Instalment on lease liabilities	-156	-137
	Net proceeds from the issuance of shares	120	0
	Dividends paid to shareholders of Solar A/S	-110	-219
	Dividends paid to non-controlling interests	0	-1
	Cash flow from financing activities	-85	-255

	Total cash flow	-326	18
	Cash at bank and in hand at the beginning of the year	459	441
	Cash at bank and in hand at the end of the year	133	459

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Financial statements

Consolidated financial statements

Statement of changes in equity

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	Retained earnings	Proposed dividends	Equity attributable to shareholders of Solar A/S	Non-controlling interests	Total equity
2025
Equity as at 1 January	736	-13	-221	1,216	110	1,828	46	1,874
Foreign currency translation adjustments of foreign subsidiaries			33			33		33
Fair value adjustments of hedging instruments before tax		5				5		5
Tax on fair value adjustments		-1				-1		-1
Net income recognised in equity via other comprehensive income in the statement of comprehensive income	0	4	33	0	0	37	0	37
Net profit for the year				74	0	74	0	74
Comprehensive income	0	4	33	74	0	111	0	111
Distribution of dividends (DKK 15.00 per share)					-110	-110		-110
Issue of share capital	65			58		123		123
Transaction costs related to issue of share capital				-3		-3		-3
Share based payments			1			1		1
Transactions with the owners	65	0	1	55	-110	11	0	11
Equity as at 31 December	801	-9	-187	1,345	0	1,950	46	1,996

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

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Consolidated financial statements

Statements, not audited, part of Management review

Statement of changes in equity – continued

DKK million	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
2024
Equity as at 1 January	736	-13	-185	1,175	219	1,932	50	1,982

Foreign currency translation adjustments of foreign subsidiaries			-36			-36		-36
Fair value adjustments of hedging instruments before tax		0				0		0
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
Net profit for the year				41	110	151	-3	148
Comprehensive income	0	0	-36	41	110	115	-3	112
Distribution of dividends (DKK 30.00 per share)					-219	-219		-219
Distribution of dividends non-controlling interests						0	-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.

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Financial statements

Consolidated financial statements

Notes

Section 1 – Basis for preparation

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 1

Basis for preparation

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Consolidated financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 1 – Basis for preparation

1.1 General accounting policies

The consolidated financial statements of Solar A/S for 2025 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.

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 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.

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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-2025-12-31-1-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.

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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

Separate financial statements

Group companies overview

Statements and reports

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	Provision for pension obligation
Note 4.2	Treasury shares
Note 4.4	Financial instruments
Note 5.1	Share-based payment
Note 5.6	Acquisition of businesses

1.2 Significant accounting estimates and assessments

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:

Identification and measurement of assets, including goodwill and liabilities in relation to the acquisition of Sonepar Norge
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

Note 5.6 Acquisitions of businesses

1.3 Financial risks

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 16-19.

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Consolidated financial statements

Notes

Section 2 – Income statement

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

Section 2 Income statement

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Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 2 – Income statement

2.1 Revenue

DKK million	2025	2024
Sales of goods and services	11,897	12,076
Revenue from construction contracts	274	147
Total revenue	12,171	12,223

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 recognised 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.

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Consolidated financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.2 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 274m and DKK 245m, respectively, from construction contracts recognised over time are fully allocated to the Trade segment.

DKK million	Installation Industry		Trade	Total
2025
Revenue	6,748	4,171	1,252	12,171
Cost of sales	-5,505	-3,162	-1,025	-9,692
Gross profit	1,243	1,009	227	2,479
Direct costs	-299	-174	-41	-514
Earnings before indirect costs	944	835	186	1,965
Indirect costs	-467	-219	-51	-737
Segment profit	477	616	135	1,228
Non-allocated costs				-727
Earnings before interest, tax, depreciation and amortisation (EBITDA)				501
Depreciation and amortisation				-346
Earnings before interest and tax (EBIT)				155
Financials, net incl. share of net profit from associates and impairment on associates				-71
Earnings before tax (EBT)				84

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 and Solar Polaris are included in the operating segment Trade.

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Consolidated financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.2 Segment information – continued

Revenue and costs in the amount of DKK 147m and DKK 129m, respectively, from construction contracts recognised 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 or loss	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

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 192. The below allocation has been made based on the products' place of sale.

Revenue and costs in the amount of DKK 274m and DKK 245m, respectively, from construction contracts recognised over time are fully allocated to the Danish market.

DKK million	Revenue	Adjusted organic growth	EBITDA	EBITDA margin	Non-current assets
2025
Denmark	4,148	2.31	260	6.3	787
Sweden	2,215	1.8	124	5.6	611
Norway	1,841	-1.8	30	1.6	494
The Netherlands	2,632	-3.2	64	2.4	389
Poland	449	6.2	-1	-0.2	49
Other markets	886	-13.7	24	2.7	156
Solar Group	12,171	-0.9	501	4.1	2,486

¹⁾ Includes adjusted organic growth of Solar Danmark -1%, Solar Polaris 87%, Thermonova 38% and Højager -7%.

Revenue and costs in the amount of DKK 147m and DKK 129m, respectively, from construction contracts recognised 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

{116}------------------------------------------------

Financial statements

Consolidated financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.3 Staff costs

DKK million	2025	2024
Salaries and wages etc.	1,353	1,292
Pensions, defined contribution	123	118
Costs related to social security	171	165
Share-based payment	2	5
Total	1,649	1,580

Average number of employees (FTEs)	2,932	2,899

Number of employees at year-end (FTEs)	2,995	2,895

Remuneration of Board of Directors
Remuneration of Board of Directors	5	4

Remuneration of Executive Board
Salaries and wages etc.	15	17
Share-based payment	2	1
Total	17	18

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 months' remuneration.

{117}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

DKK million	2025	2024
Recognised losses	21	22
Received on trade receivables previously written off	-1	-3
	20	19
Change in write-down for bad and doubtful debtors	-9	-5
Total	11	14

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	2025	2024
Buildings	37	38
Plant, operating equipment, tools and equipment	59	56
Leasehold improvements	7	8
Tenancy, lease	118	105
Cars, lease	29	27
IT equipment, lease	9	10
Technical equipment, lease	1	2
Total depreciation and write-down on property, plant and equipment	260	246

Customer-related assets	7	7
Software	79	65
Impairment on intangible assets	0	50
Total amortisation and impairment of intangible assets	86	122

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

{118}------------------------------------------------

Consolidated financial statements

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

2.6 Income tax

DKK million	2025	2024
Current tax	43	31
Deferred tax	-18	10
Tax on profit for the year	25	41
Tax on taxable profit previous year	-15	3
Total	10	44
Statement of effective tax rate:
Danish income tax rate	22.0%	22.0%
Tax base change for non-capitalised loss in subsidiaries	3.5%	-2.4%
Non-taxable/deductible items in parent company	0.9%	0.8%
Non-taxable/deductible items and differing tax rates compared to Danish tax rate in foreign subsidiaries	4.3%	0.7%
Tax for previous years	-18.1%	1.6%
Effective tax rate	12.6%	22.7%
Income tax settled
Denmark	12	24
Sweden	1	-2
Norway	7	21
The Netherlands	-6	21
Poland	0	-2
Other countries	4	7
Total	18	69

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 2025 data.

{119}------------------------------------------------

Consolidated financial statements

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

2.6 Income tax – continued

DKK million	2025	2024
Provision for deferred tax
1/1	146	136
Foreign currency translation adjustments	2	-1
Acquired or divested businesses	-19	0
Recognised in other comprehensive income	1	0
Ordinary tax recognised in income statement	-18	10
Other items	0	1
Total 31/12	112	146

Specified as follows:
Deferred tax liabilities	148	157
Deferred tax assets	-36	-11
Total deferred tax, net	112	146

Further specified as follows:
Expected use within 1 year	-4	-4
Expected use after 1 year	116	150
Total, net	112	146

Not recognised in balance sheet:
Deferred tax assets	37	32

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. Nonrecognised 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 Solar Deutschland GmbH (activity divested in 2015) amounted to DKK 63m (DKK 77m) at the end of the period. Decrease in 2025 is due to utilisation of tax loss in Claessen ELGB NV, Belgium (activity divested in 2018).

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 typically within the next 3-5 years, 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.

{120}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

2.6 Income tax – continued

DKK million	2024	Foreign currency translation adjustments	Acquired or divested businesses	Recognised in other comprehensive income	Ordinary tax recognised in income statement	2025
Intangible assets	53	0	-3	0	0	50
Property, plant and equipment	73	0	0	0	-15	58
Inventories	-5	0	-5	0	2	-8
Receivables	-5	0	0	0	1	-4
Other items1	30	2	-11	1	-6	16
Total, net	146	2	-19	1	-18	112

DKK million	2023	Ordinary tax recognised in income statement	2024
Intangible assets	46	7	53
Property, plant and equipment	64	9	73
Inventories	-4	-1	-5
Receivables	-2	-3	-5
Other items1	32	-2	30
Total, net	136	10	146

¹⁾ Other items particularly cover loss balances utilised in jointly taxed entities and carry forward tax losses.

{121}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.7 Net profit for the year

DKK million	2025	2024
Proposed distribution of net profit for the year:
Proposed dividends, parent	0	110
Retained earnings	74	41
Net profit for the year	74	151

Ordinary dividends in DKK per share of DKK 1001	-	15.00

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.

{122}------------------------------------------------

Consolidated financial statements

Notes

Section 3 – Invested capital

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 3

Invested capital

{123}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

Section 3 – Invested capital

3.1 Intangible assets

DKK million	Goodwill	related assets	Software	Total
2025
Cost 1/1	122	288	660	1,070
Foreign currency translation adjustment	0	10	0	10
Acquired businesses	226	2	1	229
Additions during the year	0	0	125	125
Abandoned assets	0	0	-19	-19
Cost 31/12	348	300	767	1,415
Amortisation and impairment 1/1	47	257	385	689
Foreign currency translation adjustment	0	8	0	8
Amortisation during the year	0	7	79	86
Amortisation of abandoned assets	0	0	-19	-19
Amortisation and impairment 31/12	47	272	445	764
Carrying amount 31/12	301	28	322	651
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 unless goodwill has not yet been allocated to cash-generating units as at the end of the year and there are not indications of impairment. 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.

{124}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.1 Intangible assets – continued

DKK million	Goodwill	related assets	Software	Total
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	0	0	-323	-323
Cost 31/12	122	288	660	1,070
Amortisation and impairment 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	-

Customer-

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.

{125}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.1 Intangible assets – continued

Goodwill, customer-related assets and other intangible assets

Except for goodwill related to the acquisition of Sonepar Norge AS, 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.

Overall, impairment tests made are based on the budget for 2026 and strategy for 2024-2026 approved by the Executive Board and Board of Directors. A budget period of 5 (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 5 (6) years, risks of the material parameters have been assessed and recognised 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.

Sonepar Norge AS

The amount of goodwill related to the acquisition of Sonepar Norge AS has initially been measured

at DKK 226m, cf. note 5.6 Acquisition of businesses. As the measurement of goodwill is provisionally and has not been allocated to cashgenerating units the assessment of impairment has been performed by reviewing and updating the business case for the acquisition of Sonepar Norge AS. This review did not reveal any indication of impairment of goodwill.

Thermonova A/S

The carrying amount of goodwill of DKK 75m (DKK 75m) result from the acquisition of the Danish enterprise Thermonova A/S, which is considered a cash-generating 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 30% for 2026 and 45% in 2027, 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 2027 is decreasing to a range between 11.3% - 31.5%.

In 2024 the growth rate used in the impairment test were up to 87% and decreasing to 3.9% at the end of the budget period.

The estimated gross margin percentage in 2026 is also expected to be in the same range for 2027-2030 after taking the improvement in the gross margin percentage realised in 2025 into consideration.

Terminal value after 5 (6) years is determined while taking general expectations for growth into consideration. Expected growth is by considerations of realistic assumptions determined at 2% (2%). Of the total value approx. 82% (76%) is based on the terminal value.

The discount rate (WACC) used to calculate the recoverable amount is 9.5% (9.5%) to compensate for the risk. The development in Thermonova A/S is positive. However, as the company is immature, there is higher uncertainty related to Thermonova A/S than to Solar A/S in general. This is the reason for our choice of discount rate.

Due to the expected increase in EBITDA the impairment test shows in the most likely scenario no indications of a need for write-down of the goodwill.

If the WACC used is increased with 1 percentage point, this reduces Solar's share of the recovery amount with additional DKK 17m (DKK 14m), whereas a reduction with 1 percentage point in the WACC used will increase Solar's share of the recovery amount with DKK 22m (DKK 18m).

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

(Data shown in brackets relate to the corresponding period in 2024)

{126}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.2 Property, plant and equipment

Total	Assets under construction	Leasehold improvements	Plant, operating equipment, tools and equipment	Land and buildings	DKK million
					2025
2,013	117	71	606	1,219	Cost 1/1
21	6	1	7	7	Foreign currency translation adjustments
2	0	0	2	0	Acquired businesses
433	381	6	37	9	Additions during the year
-221	-13	-4	-87	-117	Disposals during the year
2,248	491	74	565	1,118	Cost 31/12
943	0	45	400	498	Write-down and depreciation 1/1
9	0	0	6	3	Foreign currency translation adjustments
103	0	7	59	37	Write-down and depreciation during the year
-154	0	-4	-86	-64	Write-down and depreciation of disposed assets
901	0	48	379	474	Write-down and depreciation 31/12
1,347	491	26	186	644	Carrying amount 31/12

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 2-10 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.

{127}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.2 Property, plant and equipment – continued Accounting policies

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 adjustments	-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
Write-down and 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

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.

{128}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.3 Leases

Right-of-use assets

DKK million	Tenancy	Cars	IT equipment	Technical equipment	Other equipment	Total
2025
Cost 1/1	650	124	46	9	0	829
Foreign currency translation adjustments	14	2	0	0	0	16
Acquired businesses	36	2	0	0	0	38
Additions during the year	113	35	2	2	0	152
Disposals during the year	-69	-27	0	0	0	-96
Cost 31/12	744	136	48	11	0	939
Write-down and depreciation 1/1	326	68	21	6	0	421
Foreign currency translation adjustments	7	1	0	0	0	8
Write-down and depreciation during the year	118	29	9	1	0	157
Write-down and depreciation of abandoned assets	-48	-26	0	0	0	-74
Write-down and depreciation 31/12	403	72	30	7	0	512
Carrying amount 31/12	341	64	18	4	0	427

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.

{129}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.3 Leases – continued

DKK million	Tenancy	Cars	IT equipment	Technical equipment	Other equipment	Total
2024
Cost 1/1	620	120	50	10	0	800
Foreign currency translation adjustments	-14	0	0	0	0	-14
Additions during the year	82	30	10	0	0	122
Disposals during the year	-38	-26	-14	-1	0	-79
Cost 31/12	650	124	46	9	0	829
Write-down and depreciation 1/1	264	66	25	5	0	360
Foreign currency translation adjustments	-5	0	0	0	0	-5
Write-down and depreciation during the year	105	27	10	2	0	144
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
Carrying amount 31/12	324	56	25	3	0	408

{130}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.3 Leases – continued

Short-term lease liabilities

DKK million	2025	2024
Maturity < 1 year	154	141
Short-term lease liabilities 31/12	154	141

Long-term lease liabilities

DKK million	2025	2024
Maturity > 1 year < 5 years, undiscounted	290	288
Maturity > 5 years, undiscounted	18	17
Long-term lease liabilities 31/12, undiscounted	308	305
Discounting on lease liabilities > 1 year < 5 years	-16	-19
Discounting on lease liabilities > 5 years	-2	-2
Long-term lease liabilities 31/12	290	284

Amounts recognised in the income statement
Depreciation of right-of-use assets	157	144
Interest expense on lease liabilities	17	15
Expense relating to short-term leases	1	2
Expense relating to leases of low-value items	2	2
Expense relating to variable lease payments not included in the measurement of lease liabilities	8	7
Total	185	170

Cash outflows for leases
Instalment on lease liabilities	-156	-137
Interest payments	-17	-15
Total cash outflows for leases	-173	-152

Future cash outflows not recognised as lease liabilities in the balance sheet amount to DKK 14m (DKK 4m) 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 61m (DKK 49m).

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.

{131}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.4 Investments in associates 1

Investments in associates, DKK million	2025	2024

Cost 1/1	9	9
Foreign currency translation adjustment	0	0
Additions during the year	0	0
Transferred to other investments	0	0
Disposals during the year	-1	0

Cost 31/12	8	9

Adjustments 1/1	-6	-5
Foreign currency translation adjustment	0	0
Profit from associates	0	-1
Impairment/reversal of impairment 2	0	0
Transferred to other investments	0	0
Disposals during the year	1	0

Value adjustments 31/12	-5	-6

Carrying amount 31/12	3	3

¹⁾ Associates include the following investments:

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.

^• Monterra where Solar owns 30.0%

^• Zolw where Solar owns 35.0%

{132}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.5 Inventories

DKK million	2025	2024
End products	1,871	1,888

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.

{133}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.6 Trade receivables 1

DKK million	2025	2024
Maturity statement, trade receivables
Not due	1,566	1,506
Past due for 1-30 day(s)	144	139
Past due for 31-90 days	20	19
Past due for 91+ days	4	21
	1,734	1,685
Write-down	-20	-28
Total	1,714	1,657

Write-down based on:
Age distribution	9	11
Individual assessment	11	17
Total	20	28

Write-down 1/1	28	33
Foreign currency translation adjustment	1	0
Write-down for the year	6	10
Acquired businesses	1	0
Losses realised during the year	-8	-11
Reversed for the year	-8	-4
Write-down 31/12	20	28

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 112m (DKK 103m).

Accounting policies

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 made, if this is lower.

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 days past invoicing.

As the vast majority of our group companies generally takes out insurance to hedge against loss to the extent possible, the writedown based on age distribution amounts to 0.5% (0.7%) 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 0.6% (1.0 %) of gross trade receivables. As the total write-down on trade receivables amounts to less than 1.2% (1.7%) 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 30 days (30 days).

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, 65% (64 %) of trade receivables is covered by insurance.

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

{134}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.7 Contract balances

DKK million		2025		2024
Significant changes in the contract balances	Contract assets	Contract liabilities	Contract assets	Contract liabilities
Contract balances at 1/1	4	35	0	0
Changes due to cash received, excluding amounts recognised as revenue during the period	2	-17	0	0
Increases as a result of changes in the measure of progress and deliveries	0	0	4	35
Decreases as a result of finalisation of construction contracts	-1	-1	0	0
Contract balances at 31/12	5	17	4	35

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.

{135}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.8 Provision for pension obligations

Most of the group's employees have pension plans; mainly defined contribution pension plans and, to a smaller degree, defined benefit pension plans.

The Solar Group's defined benefit plans are constituted by the as at 1st December 2025 acquired subsidiary Sonepar Norge AS. The majority of this obligation covers lifelong retirement pensions. The plans of Sonepar Norge AS are closed to new entrants and consists of 32 working persons and 35 retirees.

2025

DKK million	Present value of obligation	Fair value of plan assets	Obligation, net

1/1	0	0	0
Acquired enterprises	52	58	-6
Impact of asset cealing	0	-6	6
Current service costs (1 month)	0	0	0
Calculated interest expense/income (1 month)	0	0	0
Amounts recognised in income statement	0	0	0
Total 31/12	52	52	0

All assets are held by insurance company.

The group's expected payments to defined benefit pension plans in 2026 total DKK 5m (2025: DKK 0m).

Accounting policies

Obligations concerning the defined contribution plans are recognised in the income statement in the period that these are earned and any payments due are included under other payables.

Obligations related to defined benefit plans for present and former employees are determined systematically by an actuarial discount to net present value of the pension obligation. The present value is calculated on the basis of presumptions about future developments in, for example, inflation, pay level and life expectancy. The discount rate used is the effective interest rate on corporate bonds with high credit quality and with terms that correspond to that of the pension obligation.

The pension obligations less fair value of assets attached to the plan is recognised in the balance sheet under pension provisions. If the net amount is an asset, this is recognised under pension assets in the balance sheet to the extent that any surplus leads to a reduction in future contributions or repayment to the enterprise.

The costs of a defined benefit plan are recognised in the income statement and include service costs, net interest based on actuarial estimates and financial expectations. Differences between the development in retirement benefit assets and liabilities and realised amounts at year-end are designated as actuarial gains or losses and recognised in other comprehensive income.

The effect of a change in the present value as a consequence of changes to the pension agreements made is recognised in the income statement at the modification date.

{136}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.8 Provision for pension obligations – continued

The most significant actuarial assumptions.

DKK million	2025

Average actuarial assumptions:
Discount rate	4.3%
Salary increase rate	3.25%
Pension increase rate	2.7%

The table below shows the sensitivity of the pension obligations to changes in key assumptions for the statement of the obligation on the balance sheet date. In addition, the Solar Group is also exposed to general development in the market value of the assets.

DKK million	2025

Pension obligation	52
Sensitivity to discount rate:
Discount rate - 0.5 %	4
Discount rate + 0.5 %	-4

DKK million	2025

Pension obligations are expected to be payable as follows:
0 - 1 year	1
1 - 5 year(s)	6
5-10 years	14
Total 31/12	21

The expected duration of the obligations at year-end 2025 is expected at 16 years and are divided into active employees with an average age of 58 years and retired/inactive employees with an average age of 75 years.

{137}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

3.9 Other provisions

DKK million	2025	2024
Non-current
Other provisions	11	12
Total 31/12	11	12
Specification, non-current
1/1	12	11
Reversed during the year	-4	-2
Provisions of the year	3	3
Total 31/12	11	12

Current
Other provisions	28	9
Total 31/12	28	9

Specification, current
1/1	9	21
Reversed during the year	-9	-21
Acquired businesses	2	0
Provisions of the year	26	9
Total 31/12	28	9

3.10 Other payables

DKK million	2025	2024
Staff costs	195	205
Taxes and charges	100	144
Interest rate swaps	12	17
Other payables	80	96
Total	387	462

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

{138}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 4

Capital structure and financing costs

{139}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

Section 4 – Capital structure and financing costs

4.1 Share capital

DKK million	2025	2024
Share capital 1/1	736	736
Change in share capital	65	0
Share capital 31/12	801	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, 7,106,000 at DKK 100, 1 vote per share	711	646
Total	801	736

		Number of shares
	2025	2024	2025	2024
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
Issue of share capital	646,000	0	65	0
B shares outstanding 31/12	7,049,187	6,403,187	705	640

Total shares outstanding 31/12	7,949,187	7,303,187	795	730

{140}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

4.2 Treasury shares

Treasury shares (B shares)		Number of shares		Nominal value (DKK million)		Cost (DKK million)		Percentage of share capital
	2025	2024	2025	2024	2025	2024	2025	2024
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.

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

	2025	2024
Net profit for the year in DKK million	74	148

Average number of shares	7,444,953	7,360,000
Average number of treasury shares	-56,813	-56,813
Average number of shares outstanding	7,388,140	7,303,187
Dilution effect of share options and restricted share units	29,173	27,349
Diluted number of shares outstanding	7,417,313	7,330,536

Earnings per share in DKK per share outstanding for the year	10.02	20.68
Diluted earnings per share in DKK per share outstanding for the year	9.98	20.60

Accounting policies

Treasury shares

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

{141}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

4.4 Financial instruments

Financial assets and financial liabilities

DKK million	Interest rate	2025	2024
Debt to mortgage credit institutions	Fixed 1	176	187
Bank loans and overdrafts	Fixed 1	499	249
Lease liabilities	Calculated	444	425
Bank loans and overdrafts	Floating	638	830
Interest-bearing liabilities		1,757	1,691
Trade payables 2		1,937	1,852
Other payables etc.		387	462
Financial liabilities		4,081	4,005

Cash at bank and in hand		133	459
Trade receivables		1,714	1,657
Other receivables		92	204
Financial assets		1,939	2,320

Total, financial balance sheet items, net		2,142	1,685

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

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).

²⁾ Solar participates in supplier financing arrangement with one bank covering one supplier in the amount of DKK 61m (DKK 141m) that is fully paid to the suppliers. Although, Solar has obtained extended credit term of up to 90 days which is beyond the average credit terms from other supplies of 30 – 60 days the credit term is considered usual within the industry, thus, the liability towards the bank is presented as trade payables.

{142}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

4.4 Financial instruments – continued

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

DKK million	2025	2024
Interest bearing liabilities 1/1	1,691	1,597
Repayment of non-current interest-bearing debt	-111	-9
Raising of non-current interest-bearing liabilities	250	100
Change in current interest-bearing debt	-78	11
Installment on lease liabilities	-156	-137
Lease liability raised during the year, non-cash	152	122
Lease liability related to acquired businesses	38	0
Disposal of lease liabilities	-22	0
Foreign currency translation adjustment	-7	7
Interest bearing liabilities 31/12	1,757	1,691

Financial liabilities, maturity statement

DKK million	2025	2024
Maturity < 1 year
Debt to mortgage credit institutions	11	11
Lease liabilities	154	141
Bank loans and overdrafts	639	830
Current interest-bearing liabilities	804	982
Other financial liabilities	2,324	2,314
Current financial liabilities	3,128	3,296

Current financial assets	1,939	2,320

Net current financial liabilities	1,189	976

{143}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

4.4 Financial instruments – continued

Financial liabilities, maturity statement – continued

DKK million	2025	2024
Maturity 1-5 year(s)
Debt to mortgage credit institutions	43	47
Bank loans and overdrafts	499	249
Lease liabilities	273	268
Total	815	564

Maturity > 5 years
Debt to mortgage credit institutions	122	129
Lease liabilities	17	16
Total	139	145

Total non-current liabilities	954	709

Maturity, until year	2042	2042

The carrying amount of financial liabilities corresponds to fair value, see page 142. Of long-term bank loans and overdrafts DKK 400m (DKK 150m) is subject to covenants measured on gearing and solvency ratio on a quarterly basis. There is no indication that covenants cannot be met for the next 12 months.

DKK million	2025	2024
Interest-bearing liabilities and maturity statement for expected interest expense for the period
< 1 year	38	32
1-5 year(s)	54	56
> 5 years	29	35
Total	121	123

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.

{144}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

4.4 Financial instruments – continued

Interest rate sensitivity

DKK million	2025	2024
Effect of a 1% interest rate increase at the end of the year
Effect on equity	5	3
Of this, earnings impact is	-4	-3

Undrawn credit facilities 31/12	1,134	1,028

Financial liabilities, foreign currency risk exposure

	Current liabilities		Non-current liabilities
DKK million	2025	2024	2025	2024
EUR	41	124	93	101
DKK	548	705	571	324
NOK	5	0	0	0
PLN	30	12	0	0
SEK	26	0	0	0
Total	650	841	664	425

Interest rate in %	2.9-7.0	3.7-7.0	3.3-5.6	3.9-5.6

The group's businesses have raised loans in their respective functional currencies, while the parent company has also raised loans in Swedish kroner, Norwegian kroner and 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)

	Equity
DKK million	2025	2024	2025	2024
NOK	-7.5	5.1	41.9	50.6
SEK	5.9	8.0	57.3	51.2
PLN	-0.6	1.6	6.8	9.4
Total	-2.2	14.7	106.0	111.2

{145}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

4.4 Financial instruments – continued

Hedging activities

DKK million	2025	2024

Outstanding interest swaps made for hedging floating-rate loans
Principal amount	405	361
Interest rate in % for outstanding interest swaps	3.3-5.6	4.5-5.6
Fair value recognised as other payables under current liabilities	-12	-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

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

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.

{146}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

DKK million	2025	2024
Interest income	22	31
Foreign exchange gains	17	28
Fair value adjustments, other financial investments	1	2
Other financial income	11	2
Total	51	63

Financial income, received	33	33

4.5 Financial income 4.6 Financial expenses

DKK million	2025	2024
Interest expenses	80	99
Foreign exchange losses	20	31
Fair value adjustments, other financial investments	5	3
Interest on lease liabilities	17	15
Total	122	148

Financial expenses, settled	97	114

{147}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Section 5 – Other notes

Separate financial statements

Statements, not audited, part of Management review

Section 5 Other notes

{148}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

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 2025
Outstanding at the beginning of 2025	10,374	36,084	46,458
Granted in 2025	0	5,976	5,976
Adjustment due to dividends distribution	132	1,230	1,362
Exercised	-4,819	-9,064	-13,883
Outstanding at year-end 2025	5,687	34,226	39,913
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 dividends distribution	444	2,036	2,480
Exercised	-7,193	-11,775	-18,968
Outstanding at year-end 2024	10,374	36,084	46,458

DKK million		2025	2024
Market value recognised under other liabilities		7	9

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.

{149}------------------------------------------------

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

5.1 Share-based payment – continued

Specification of restricted share units

		Year of granting
No. of shares	2025	2024	2023	2022
Executive Board
Granted	0	0	6,719	5,353
Transferred on change to the Executive Board	0	0	-1,899	-1,792
Adjustment due to dividend distribution	0	0	867	1,258
Exercised	0	0	0	-4,819
Total	0	0	5,687	0

Others
Granted	5,976	14,945	7,930	5,757
Transferred on change to the Executive Board	0	0	1,899	1,792
Adjustment due to dividend distribution	334	1,818	1,324	1,515
Exercised	0	0	0	-9,064
Total	6,310	16,763	11,153	0

Price at time of granting	269.35	381.88	629.95	722.46

Vesting year	2028	2027	2026	2025

Performance share units

No. of performance share units at year-end 2025	Executive Board
Outstanding at the beginning of 2025	15,036
Granted in 2025	20,283
Adjustment due to dividend distribution	1,721
Exercised	0
Outstanding at year-end 2025	37,040
	2025
Price at time of granting	269.35

Vesting year No. of performance share units at year-end 2024	2028
Outstanding at the beginning of 2024	0
Granted in 2024	13,939
Adjustment due to dividends distribution	1,097
Exercised	0
Outstanding at year-end 2024	15,036
	2024
Price at time of granting	381.88

{150}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

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 management team in 2025 and 2024.

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 269.35 (381.88) based on the average price on Nasdaq Copenhagen the first 10 business days after publication of Annual Report 2024 (2023). The restricted shares vest three years after the time of granting, meaning that this grant of shares vests in 2028 (2027). At this point, the holder may exercise the restricted share granting.

The number of granted restricted shares was adjusted by +1,362 (+2,480) shares in 2025 (2024) 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 20,283 (15,036) performance shares (PSU) in 2025 (2024). The total market value of the grant was DKK 5.5m (DKK 5.3m) 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 +1,721 (+1,097) shares in 2025 (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	2025	2024
Collateral
Assets have been pledged as collateral for bank arrangements at a carrying amount of:
Land and buildings	465	418
Current assets	1	0
Total	466	418
Contracts for the construction of Logistics Centre, Kumla
Net obligation	43	339

{151}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

5.3 Related parties

Group and parent Solar A/S are subject to control by the Fonden af 20. December (registered as a commercial foundation in Denmark), which owns 17.8% (17.0%) of the shares and holds 59.2% (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 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 the Fonden af 20. December for the performance of administrative services at DKK 55,000 (DKK 55,000). Balances with the Fonden af 20 December total DKK 0 (DKK 0) on balance sheet date.

5.4 Auditors' fees

DKK million	2025	2024
Deloitte
Statutory audit	3	3
Other assurance engagements1	1	1
Tax consulting	0	0
Other services	0	0
Total	4	4

¹⁾ Other assurance engagements mainly consist of ESG assurance in 2024 and 2025.

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.

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

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

{152}------------------------------------------------

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

5.6 Acquisitions of businesses

On 1 December 2025, Solar A/S acquired 100% of the shares of Sonepar Norge AS, a trusted player in the market for B2B distribution of electrical material having a strong foothold in the installation segment and to a lesser extent in the industry segment. The combined business positions Solar Norge AS as one of the leading distributors offering efficient sourcing and services mainly within electrical, ventilation, and climate and energy solutions.

The entreprise value amounts to DKK 309m and the transaction is financed through a combination of one-third equity via an accelerated bookbuilding without pre-emption rights for existing shareholders and two-thirds debt financing provided by Danske Bank and Nordea.

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

For December 2025, Sonepar Norge AS delivered revenue of DKK 46m and an EBITDA at DKK -8m, of which DKK -7m can be attributed to integration costs. If Sonepar Norge had been included from 1 January to 31 December 2025 we estimate an impact on revenue of DKK 725m and EBITDA of DKK -18m.

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 which result in Solar being prepared to pay a premium.

The goodwill recognised will not be deductible for tax purposes. As Sonepar Norge AS was acquired late in the year the initial accounting for the business combination is provisionally, which includes identification and measurement of assets acquired and liabilities assumed as well as measurement and allocation of goodwill on cash-generating units.

Accounting policies

Newly acquired businesses are recognised in the consolidated financial statements from the date of acquisition. Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of assets transferred by the group, liabilities incurred by the group to the former owners of the acquiree and the equity interest issued by the group in exchange for control of the acquiree.

Acquisition-related costs are recognised in the period in which they are incurred. Identifiable assets, liabilities and contingent liabilities (net assets) relating to the enterprise acquired are recognised at fair value at the date of acquisition. Intangible assets are recognised if they are separately recognisable or originate in a contractual right. Deferred tax related to all temporary differentials except taxable temporary differentials on goodwill is recognised.

For business combinations, positive balances between the acquisition consideration of the enterprise on one side and the fair value of the assets, liabilities and contingent liabilities acquired on the other side, are recognised as goodwill under intangible assets. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period which cannot exceed 12 months from the acquisition date.

Comparative figures are not restated for newly acquired businesses.

Accounting estimates and assessments

Identification and measurement of assets, including goodwill and liabilities in relation to the acquisition of Sonepar Norge Management makes judgements when determining whether intangible assets acquired in a business combination are separately identifiable. This involves assessing if the asset meets the separability criterion, which means it can be separated from the acquired business and sold, transferred, licensed, rented, or exchanged independently.

The application of the acquisition method involves the use of significant estimates because the identifiable net assets of the acquiree are recognised at their fair value for which observable market prices are typically not available. This is particularly relevant for assets which require use of valuation techniques typically based on estimates of present value of future uncertain cash flows.

{153}------------------------------------------------

Financial statements

Consolidated financial statements

Notes

Section 4 – Capital structure and financing costs

Separate financial statements

Statements, not audited, part of Management review

5.6 Acquisitions of businesses

Fair value at the date of acquisition

DKK million	Sonepar
Software	1
Property, plant and equipment	2
Right of use assets	38
Other non-current assets	19
Inventories	76
Trade receivables	143
Other receivables and prepayments	10
Cash	2
Other non-current liabilities, non-interest-bearing	-27
Current liabilities	-179
Net assets	85
Goodwill	226
Total consideration	311
Cash acquired	-2
Acquisition price on net debt-free basis	309

On 1 March 2025, Solar acquired a branch in Poland, amounting to DKK 2m.

With the acquisition, Solar strengthen its position in Poland and expanded the team with 7 employees.

{154}------------------------------------------------

Separate financial statements

{155}------------------------------------------------

Consolidated financial statements

Separate financial statements

Statement of comprehensive income

Statements, not audited, part of Management review

Statement of comprehensive income

Notes	DKK million	2025	2024
2.1	Revenue	3,934	4,003
	Cost of sales	-3,078	-3,108
	Gross profit	856	895
	Other operating income	34	32
5.3	External operating costs	-44	-32
2.2	Staff costs	-563	-573
2.3	Loss on trade receivables	-2	-2
	Earnings before interest, tax, depreciation and amortisation (EBITDA)	281	320
2.4	Depreciation and write-down on property, plant and equipment	-90	-90
	Earnings before interest, tax and amortisation (EBITA)	191	230
2.4	Amortisation and impairment of intangible assets	-78	-68
	Earnings before interest and tax (EBIT)	113	162
	Profit from subsidiaries	6	76
4.4	Financial income	39	36
4.5	Financial expenses	-86	-102
	Earnings before tax (EBT)	72	172
2.5	Income tax	2	-21
2.6	Net profit for the year	74	151

Income statement Other comprehensive income

DKK million	2025	2024
Net profit for the year	74	151
Other income and costs recognised:
Items that can be reclassified to the income statement
Foreign currency translation adjustments of foreign subsidiaries	33	-36
Fair value adjustments of hedging instruments before tax, parent company	5	0
Tax on fair value adjustments of hedging instruments, parent company	-1	0
Other income and costs recognised after tax	37	-36

Total comprehensive income for the year	111	115

{156}------------------------------------------------

Consolidated financial statements

Separate financial statements

Balance sheet

Statements, not audited, part of Management review

Balance sheet

As at 31 December

Notes	DKK million	2025	2024
	Assets
3.1	Intangible assets	231	217
3.2	Property, plant and equipment	339	380
3.3	Right-of-use assets	90	100
3.4	Investments measured at equity value	2,355	2,226
3.4	Other non-current assets	19	22
	Non-current assets	3,034	2,945

3.5	Inventories	547	636
3.6	Trade receivables	544	554
	Receivables from subsidiaries	200	184
	Income tax receivable	8	6
	Other receivables	5	4
	Prepayments	20	27
	Cash at bank and in hand	6	343
	Current assets	1,330	1,754
	Total assets	4,364	4,699

Notes	DKK million	2025	2024
	Equity and liabilities
4.1	Share capital	801	736
	Reserves	-16	-66
	Retained earnings	1,165	1,048
	Proposed dividends for the financial year	0	110
	Total equity	1,950	1,828

4.3	Interest-bearing liabilities	664	425
	3.3, 4.3 Lease liabilities	61	70
2.5	Provision for deferred tax	78	89
	Non-current liabilities	803	584

4.3	Interest-bearing liabilities	606	829
	3.3, 4.3 Lease liabilities	33	33
	Trade payables	604	701
	Amounts owed to subsidiaries	245	562
3.8	Other payables	118	157
3.7	Other provisions	5	5
	Current liabilities	1,611	2,287

	Liabilities	2,414	2,871

	Total equity and liabilities	4,364	4,699

{157}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Cash flow statement

Statements, not audited, part of Management review

Cash flow statement

Notes	DKK million	2025	2024
	Net profit for the year	74	151
2.4	Depreciation, write-down and amortisation	168	158
	Changes to provisions and other adjustments	8	-8
	Profit from subsidiaries	-6	-76
	4.4, 4.5 Financials, net	47	66
	Income tax	-2	21
4.4	Financial income, received	32	31
4.5	Financial expenses, settled	-75	-96
	Income tax, settled	-12	-24
	Cash flow before working capital changes	234	223

	Working capital changes
	Inventory changes	91	-13
	Receivables changes	14	-28
	Non-interest-bearing liabilities changes	-136	9
	Cash flow from operating activities	203	191

Notes	DKK million	2025	2024
	Investing activities
3.1	Purchase of intangible assets	-92	-113
3.2	Purchase of property, plant and equipment	-17	-11
	Disposal of property, plant and equipment	6	0
	Changes to loans to subsidaries	-333	121
	Dividends from subsidiaries	36	7
	Acquistion of subsidiaries and activities	0	-10
	Capital increase subsidiaries	-128	-26
	Cash flow from investing activities	-528	-32

	Financing activities
4.3	Repayment of non-current interest-bearing debt	-11	-9
	Raising of non-current interest-bearing liabilities	250	100
	Change in current interest-bearing liabilities	-223	19
	Instalment on lease liabilities	-38	-37
	Net proceeds from issue of share capital	120	0
	Dividends paid to shareholders of Solar A/S	-110	-219
	Cash flow from financing activities	-12	-146

	Total cash flow	-337	13
	Cash at bank and in hand at the beginning of the year	343	330
	Cash at bank and in hand at the end of the year	6	343

{158}------------------------------------------------

Consolidated financial statements

Separate financial statements

Statement of changes in equity

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
2025
Equity as at 1 January	736	-13	-221	168	1,048	110	1,828
Foreign currency translation adjustments of foreign subsidiaries			33				33
Fair value adjustments of hedging instruments before tax		5					5
Tax on fair value adjustments		-1					-1
Net income recognised in equity via other comprehensive income in the statement of comprehensive income	0	4	33	0	0	0	37
Net profit for the year				12	62		74
Comprehensive income	0	4	33	12	62	0	111
Distribution of dividends (DKK 15.00 per share)						-110	-110
Issue of share capital	65				58		123
Transaction costs related to issue of share capital					-3		-3
Share based payments			1				1
Transactions with the owners	65	0	1	0	55	-110	11
Equity as at 31 December	801	-9	-187	180	1,165	0	1,950

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.

{159}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

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.

{160}------------------------------------------------

Financial statements

Notes

Section 1 – Basis for preparation

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 1

Basis for preparation

{161}------------------------------------------------

Consolidated financial statements

Separate financial statements

Section 1 – Basis for preparation

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 1 – Basis for preparation

The separate financial statements of the parent company for 2025 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.

A general description of accounting policies can be found in the consolidated financial statements on pages 110-112 note 1.1, Accounting policies.

Descriptions of accounting policies in notes

Descriptions of accounting policies in the notes form part of the overall description of accounting 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
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 4.2	Treasury shares
Note 4.3	Financial instruments

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

{162}------------------------------------------------

Financial statements

Separate financial statements

Notes

Section 2 – Income statement

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 2 Income statement

{163}------------------------------------------------

Consolidated financial statements

Separate financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 2 – Income statement

2.1 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.

Installation	Industry	Trade	Total

2,201	1,238	495	3,934
-1,752	-915	-411	-3,078
449	323	84	856
-105	-62	-22	-189
344	261	62	667
-144	-44	-18	-206
200	217	44	461
			-180

			281
			-168
			113
			-41
			72
	Earnings before interest, tax, depreciation and amortisation

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

{164}------------------------------------------------

Consolidated financial statements

Separate financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.2 Staff costs

DKK million	2025	2024
Salaries and wages etc.	501	512
Pensions, defined contribution	46	44
Costs related to social security	15	14
Share-based payment	1	3
Total	563	573

Average number of employees (FTEs)	808	812

Number of employees at year-end (FTEs)	786	820

Remuneration of Board of Directors
Remuneration of Board of Directors	5	4

Remuneration of Executive Board
Salaries and wages etc.	15	17
Share-based payment	2	1
Total	17	18

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 (12) months' remuneration.

2.3 Loss on trade receivables

DKK million	2025	2024
Recognised losses	5	6
Received on trade receivables previously written off	0	0
	5	6
Change in write-down for bad and doubtful debts	-3	-4
Total	2	2

Relevant accounting policies are described in note 3.6 trade receivables.

2.4 Depreciation, write-down and amortisation

DKK million	2025	2024
Buildings	23	22
Plant, operating equipment, tools and equipment	29	28
Leasehold improvements	1	2
Tenancy, lease	18	20
Cars, lease	10	8
IT equipment, lease	9	10
Total depreciation and write-down on property, plant and equipment	90	90

Customer-related assets	1	1
Software	77	64
Impairment of intangible assets	0	3
Total amortisation and impairment of intangible assets	78	68

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

{165}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.5 Income tax

DKK million	2025	2024
Current tax	27	13
Deferred tax	-12	10
Tax on profit or loss for the year	15	23
Tax on taxable profit previous year	-17	-2
Total	-2	21
Statement of effective tax rate:
Danish income tax rate	22.0%	22.0%
Profit/loss from subsidiaries	-1.7%	-9.5%
Impairment on / gain from sale of / reversal of impairment on associates	1.4%	0.1%
Non-taxable/deductible items in parent	0.0%	0.7%
Tax regarding previous year	-23.9%	-1.0%
Effective tax rate	-2.2%	12.3%

Accounting policies

{166}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.5 Income tax – continued

DKK million	2025	2024
Deferred tax 1/1	89	79
Ordinary tax recognised in income statement	-12	10
Recognised in other comprehensive income	1	0
Deferred tax 31/12	78	89
Specified as follows:
Deferred tax	78	89
Total deferred tax, net	78	89
Further specified as follows:
Expected use after 1 year	78	89
Total, net	78	89

Accounting policies

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 retaxation of losses in former foreign subsidiaries participating in joint taxation assessed as becoming current.

{167}------------------------------------------------

Consolidated financial statements

Separate financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

2.5 Income tax – continued

Specification by balance sheet items

DKK million	2024	Recognised in other comprehensive income	Ordinary tax recognised in income statement	2025
Intangible assets	47	0	-2	45
Property, plant and equipment	24	0	-10	14
Provisions for loss on receivables	-1	0	0	-1
Other items1	19	1	0	20
Total, net	89	1	-12	78

DKK million	2023	Ordinary tax recognised in income statement	2024
Intangible assets	38	9	47
Property, plant and equipment	24	0	24
Provisions for loss on receivables	-1	0	-1
Other items1	18	1	19
Total, net	79	10	89

¹⁾ Other items particularly cover loss balances utilised in jointly taxed entities.

2.6 Net profit for the year

DKK million	2025	2024
Proposed distribution of net profit for the year:
Proposed dividend	0	110
Reserves for development costs	12	36
Retained earnings	62	5
Net profit for the year	74	151

Ordinary dividend in DKK per share of DKK 1001	0	15.00

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.

{168}------------------------------------------------

Financial statements

Separate financial statements

Notes

Section 3 – Invested capital

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 3

Invested capital

{169}------------------------------------------------

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 3 – Invested capital

3.1 Intangible assets

573

	578
92	92
-18	-18
647	652
356	361
78	78
-18	-18
416	421
231	231
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.

{170}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.1 Intangible assets – continued Accounting policies

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	-

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.

{171}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

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
2025
Cost 1/1	488	252	14	5	759
Additions during the year	5	14	1	0	20
Disposals during the year	-27	-14	0	-3	-44
Cost 31/12	466	252	15	2	735
Write-down and depreciation 1/1	240	127	12	0	379
Write-down and depreciation during the year	23	29	1	0	53
Write-down and depreciation of abandoned assets	-22	-14	0	0	-36
Write-down and depreciation 31/12	241	142	13	0	396
Carrying amount 31/12	225	110	2	2	339

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.

{172}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.2 Property, plant and equipment – continued Accounting policies

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

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.

{173}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.3 Leases

Right-of-use assets

DKK million	Tenancy	Cars	IT equipment	Total
2025
Cost 1/1	135	39	47	221
Additions during the year	14	16	1	31
Disposals during the year	-18	-8	0	-26
Cost 31/12	131	47	48	226
Write-down and depreciation 1/1	78	23	20	121
Write-down and depreciation during the year	18	10	9	37
Write-down and depreciation of abandoned assets	-14	-8	0	-22
Write-down and depreciation 31/12	82	25	29	136
Carrying amount 31/12	49	22	19	90

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
Carrying amount 31/12	57	16	27	100

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.

{174}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.3 Leases – continued

Short-term lease liabilities

DKK million	2025	2024
Maturity < 1 year	33	33
Short-term lease liabilities 31/12	33	33

Long-term lease liabilities

DKK million	2025	2024
Maturity > 1 year < 5 years, undiscounted	64	73
Maturity > 5 years, undiscounted	0	1
Long-term lease liabilities 31/12, undiscounted	64	74
Discounting on lease liabilities > 1 year < 5 years	-3	-4
Long-term lease liabilities 31/12	61	70

Amounts recognised in the Income statement

DKK million	2025	2024
Depreciation of Right-of-use assets	37	38
Interest expense on lease liabilities	4	4
Expense relating to variable lease payments not included in the measurement of lease liabilities	2	2
Total	43	44

Cash outflows for leases
Instalment on lease liabilities	-38	-37
Interest payments	-4	-4
Total cash outflows for leases	-42	-41

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.

{175}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

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
2025
Cost 1/1	2,791	5	60	16	2,872
Additions during the year	128	0	0	0	128
Disposals during the year	0	0	0	-7	-7
Cost 31/12	2,919	5	60	9	2,993
Value adjustment 1/1	-565	-5	-46	-8	-624
Foreign currency translation adjustments	33	0	0	0	33
Dividends from subsidiaries	-36	0	0	0	-36
Profit from subsidiaries	6	0	0	0	6
Fair value adjustment recognised under financial income	0	0	4	0	4
Other adjustments	-2	0	0	0	-2
Value adjustment 31/12	-564	-5	-42	-8	-619
Carrying amount 31/12	2,355	0	18	1	2,374

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.

{176}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

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

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
Other adjustments	0	0	0	0	0
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

{177}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.5 Inventories

DKK million	2025	2024
End products	547	636

Recognised write-down	-2	-6

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.

{178}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.6 Trade receivables1

DKK million	2025	2024
Maturity statement, trade receivables
Not due	502	517
Past due for 1-30 day(s)	37	32
Past due for 31-90 days	5	6
Past due for 91+ days	2	4
	546	559
Write-down	-2	-5
Total	544	554

Write-down based on:
Age distribution	2	2
Individual assessment	1	3
Total	3	5

Write-down 1/1	5	10
Write-down for the year	1	1
Losses realised during the year	-2	-3
Reversed for the year	-2	-3
Write-down 31/12	2	5

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 112m (DKK 103m).

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.

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 0.4% (0.4%) 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 0.2% (0.5%) of gross trade receivables. As the total write-down on trade receivables amounts to 0.6% (0.9%) 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).

{179}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

3.7 Other provisions

DKK million	2025	2024
Current
Other provisions	5	5
Total 31/12	5	5

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

3.8 Other payables

DKK million	2025	2024
Staff costs	60	80
Taxes and charges	22	21
Interest rate swaps	12	17
Other payables and amounts payable	24	39
Total	118	157

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

{180}------------------------------------------------

Financial statements

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 4

Capital structure and financing costs

{181}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 4 – Capital structure and financing costs

4.1 Share capital

DKK million	2025	2024
Share capital 1/1	736	736
Change in share capital	65	0
Share capital 31/12	801	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, 7,106,000 at DKK 100, 1 vote per share	711	646
Total	801	736

		Number of shares
	2025	2024	2025	2024
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
Issue of share capital	646,000	0	65	0
B shares outstanding 31/12	7,049,187	6,403,187	705	640

Total shares outstanding 31/12	7,949,187	7,303,187	795	730

{182}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

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
	2025	2024	2025	2024	2025	2024	2025	2024
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.

Accounting policies

Treasury shares

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

{183}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

4.3 Financial instruments

Financial assets and financial liabilities

DKK million	Interest rate	2025	2024
Debt to mortgage credit institutions Fixed	1	176	187
Debt to bank and credit institutions Fixed	1	499	249
Lease liabilities	Calculated	94	103
Bank loans and overdrafts	Floating	595	818
Interest-bearing liabilities		1,364	1,357
Trade payables 2		604	701
Other payables		118	157
Financial liabilities		2,086	2,215

Cash at bank and in hand		6	343
Trade receivables		544	554
Other receivables		233	221
Financial assets		783	1,118

Total, financial balance sheet items, net		1,303	1,097

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

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).

{184}------------------------------------------------

ш

Financial statements

Consolidated financial statements

Separate financial statements

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

Group companies overview

Statements and reports

Statements, not audited, part of Management review

4.3 Financial instruments - continued

Financial liabilities, maturity statement

DKK million	2025	2024
Current interest-bearing liabilities
Maturity < 1 year
Debt to mortgage credit institutions	11	11
Lease liabilities	33	32
Bank loans and overdrafts	595	818
Current interest-bearing liabilities	639	861
Other financial liabilities	722	858
Financial liabilities	1,361	1,719

Current financial assets	783	1,118

Net current financial liabilities	578	601

Maturity 1-5 year(s)
Debt to mortgage credit institutions	43	47
Bank loans and overdrafts	499	249
Lease liabilities	61	70
Total	603	366

Maturity > 5 years
Debt to mortgage credit institutions	122	129
Lease liabilities	0	1
Total	122	130

Total non-current liabilities	725	496

Maturity, until year	2042	2042

DKK million	2025	2024
Interest-bearing liabilities and maturity statement for expected interest expense for the period
< 1 year	28	22
1-5 year(s)	41	41
> 5 years	27	33
Total	96	96
Interest rate sensitivity
DKK million	2025	2024

DKK million	2025	2024
Effect of a 1% interest rate increase at the end of the year
Effect on equity	4	2
Of this, earnings impact is	-5	-4

Undrawn credit facilities 31/12	1,067	945

Financial liabilities, foreign currency risk exposure

Distribution on currencies	Current liabilities Non-cur		current liabilities
DKK million	2025	2024	2025	2024
EUR	27	124	93	101
DKK	548	705	571	324
NOK	5	0	0	0
SEK	26	0	0	0
Total	606	829	664	425

Interest rate in %	2.9-5.7	3.7-5.6	3.3-5.6	3.9-5.6

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 and solvency ratio on a quarterly basis. There is no indication that covenants cannot be met for the next 12 months.

Hedging activities

The parent company has raised loans in Danish kroner, Swedish kroner, Norwegian 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.

{185}------------------------------------------------

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

4.3 Financial instruments – continued

DKK million	2025	2024
Outstanding interest swaps made for hedging floating-rate loans
Principal amount	405	361
Interest rate in % for outstanding swaps	3.3-5.6	4.5-5.6
Fair value	-12	-17

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

DKK million	2025	2024
Amounts recognised in other comprehensive income
Adjustment to fair value for the year	0	-5
Realised during the year, recognised as financial income/expenses	5	5
Total	5	0

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

DKK million	2025	2024
Interest bearing liabilities 1/1	1,357	1,256
Repayment of non-current interest-bearing debt	-11	-9
Raising of non-current interest-bearing liabilities	250	100
Change in current interest-bearing debt	-223	19
Installment on lease liabilities	-38	-37
Lease liability raised during the year, non-cash	31	29
Foreign currency translation adjustment	-2	-1
Interest bearing liabiities 31/12	1,364	1,357

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.

{186}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

DKK million	2025	2024
Interest income	11	16
Foreign exchange gains	6	3
Fair value adjustments on investments	1	2
Other financial income	21	15
Total	39	36

Financial income, received	32	31

4.4 Financial income 4.5 Financial expenses

DKK million	2025	2024
Interest expenses	67	84
Foreign exchange losses	6	3
Interest on lease liabilities	4	4
Fair value adjustments, other financial investments	5	3
Other financial expenses	4	8
Total	86	102

Financial expenses, settled	75	96

{187}------------------------------------------------

Financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Section 5 – Other notes

Statements, not audited, part of Management review

Section 5 Other notes

{188}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

Section 5 – Other notes

5.1 Contingent liabilities and other financial liabilities

DKK million	2025	2024
Collateral
Assets have been pledged as collateral for bank arrangements at a carrying amount of:
Land and buildings	220	243
Total	220	243

Mortgaging and guarantees
As security of subsidiaires' bank arrangements, guarantees have been issued for:
Total	88	105

As security of subsidiaries' liabilities, guarantees have been issued for:
Total	506	502

{189}------------------------------------------------

Financial statements

Consolidated financial statements

Separate financial statements

Notes

Section 4 – Capital structure and financing costs

Statements, not audited, part of Management review

5.2 Related parties 5.3 Auditors' fees

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 2024 and 2025.

DKK million	2025	2024

Sale of services to subsidiaries	173	173

Sale of goods to subsidiaries	133	147

Interest income subsidiaries	9	13

Interest expense subsidiaries	5	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 the Fonden af 20. December for the performance of administrative services at DKK 55,000 (DKK 55,000). Balances with the Fonden af 20. December total DKK 0 (DKK 0) on balance sheet date.

DKK million	2025	2024
Deloitte
Statutory audit	2	2
Other assurance engagements1	1	1
Total	3	3

{190}------------------------------------------------

Group companies overview

{191}------------------------------------------------

Statements, not audited, part of Management review

Group companies overview

Name	Reg. no.	Currency	Share capital	Country
Solar A/S	15908416	DKK	800,600,000	DK
Solar Sverige AB	5562410406	SEK	100,000,000	SE
Solar Norge AS	980672891	NOK	71,000,000	NO
Sonepar Norge AS	962218288	NOK	15,000,000	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	HRB 16642 KI	€	25,000	DE
SD of 16 March Gesellschaft für 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

Name	Reg. no.	Currency	Share capital	Country
Solar Invest A/S	73316111	DKK	500,000	DK
Solar Polaris A/S	38378171	DKK	5,000,000	DK
Højager Belysning A/S	74111416	DKK	1,450,500	DK
Letskog SIA	40203326011	EUR	2,801	LV
Dunduru Plavas SIA	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
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, 16.7%	41823194	DKK	59,726	DK

{192}------------------------------------------------

Statements and reports

{193}------------------------------------------------

Statements and reports

Statement by the Executive Board and the Board of Directors

Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review

Statement by the Executive Board and the Board of Directors

The Board of Directors and the Executive Board have today considered and approved the Annual Report of Solar A/S for the financial year 1 January – 31 December 2025.

The Annual Report is prepared in accordance with IFRS Accounting Standards as adopted by the EU and disclosure requirements for listed companies in Denmark.

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. December 2025 as well as of the results of their operations and the Group's cash flows for the year 1 January – 31 December 2025.

In our opinion, the Management review is prepared in accordance with relevant laws and 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 the financial position as a whole of the entities included in the consolidated financial statements, together with a description of the principal risks and uncertainties that the Group and the Parent face.

The Sustainability Statement is prepared in accordance with the European Sustainability Reporting Standards (ESRS) as required by the Danish Financial Statements Act as well as article 8 in the EU Taxonomy regulation.

Furthermore, in our opinion, the annual report of Solar A/S for the financial year 1 January – 31 December 2025, with the file name SOLA-2025-12-31-1-en.zip, is prepared, in all material respects, in accordance with the ESEF Regulation.

We recommend the Annual Report for adoption at the Annual General Meeting.

Vejen, 5 February 2026

EXECUTIVE BOARD

Jens E. Andersen Michael H. Jeppesen CEO CFO

BOARD OF DIRECTORS

Michael Troensegaard Andersen Jesper Dalsgaard Peter Bang Chair Vice-chair

Louise Knauer Baroudy Katrine Borum Morten Chrone

Denise Goldby Rune Jesper Nielsen Michael Kærgaard Ravn

{194}------------------------------------------------

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

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 01.01.2025 – 31.12.2025, 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 for listed entities in Denmark.

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 31.12.2025, and of the results of their operations and cash flows for the financial year 01.01.2025 – 31.12.2025 in accordance with IFRS Accounting Standards as adopted by the EU and additional requirements for listed entities in Denmark.

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), as applicable to audits of financial statements of public interest entities, and the additional ethical requirements applicable in Denmark to audits of financial statements of public interest entities. We we have also 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 5 years up to and including the financial year 2025.

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 01.01.2025 – 31.12.2025. 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 various IT setups. 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 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. In addition, we sample tested revenue transactions, including manual revenue journals and customer bonuses throughout 2025 to supporting documentation. We have focused our sample selecting on transactions outside the usual billing and revenue recognition process.

We also tested cut off on revenue recognized around the balance sheet data.

Statement on the management review

Management is responsible for Management's Review.

Our opinion on the consolidated statements and the separate 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 consolidated statements and the separate financial statements, our responsibility is to read Management's Review and, in doing so, consider whether Management's Review is materially inconsistent with the consolidated statements and the separate 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.

Based on the work we have performed, in our view, Management's Review is in accordance with the consolidated statements and the separate financial statements and has been prepared in accordance with the requirements

{195}------------------------------------------------

Statement by the Executive Board and the Board of Directors

Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review 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 for listed entities in Denmark, 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. We are responsible for the direction, supervision and review of the audit work performed for purposes 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.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with

{196}------------------------------------------------

Statement by the Executive Board and the Board of Directors

Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review 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.

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 01.01.2025 – 31.12.2025, with the file name SOLA-2025-12-31-1-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 01.01.2025 – 31.12.2025, with the file name SOLA-2025-12-31-1-en.zip, is prepared, in all material respects, in compliance with the ESEF Regulation.

Aarhus, 5 February 2026

Deloitte

Statsautoriseret Revisionspartnerselskab Business Registration No 33963556

Jakob Olesen

State Authorised Public Accountant mne34492

Jacob Tækker Nørgaard

State Authorised Public Accountant mne40049

{197}------------------------------------------------

Statement by the Executive Board and the Board of Directors

Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review

Independent auditor's limited assurance report on sustainability statements

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 40 – 99, for the financial year 1 January – 31 December 2025.

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 DMA methodology and proces on pages 52 and 53 and
compliance of the disclosures in section EU Taxonomy on pages 72-76 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

The comparative information included in the Sustainability statement of the Group for the financial year 2023 and previous years was not subject to an assurance engagement. 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 DMA methodology and proces 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 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
the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the circumstances.

{198}------------------------------------------------

Statement by the Executive Board and the Board of Directors

Independent auditor's limited assurance report on Sustainability statement

Statements, not audited, part of Management review

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 DMA methodology and proces on pages 52 and 53.

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 DMA methodology and proces on pages 52 and 53.

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, 5 February 2026

Deloitte

Statsautoriseret Revisionspartnerselskab CVR-nr. 33963556

Jakob Olesen

State Authorised Public Accountant mne34492

Jacob Tækker Nørgaard

State Authorised Public Accountant mne40049

{199}------------------------------------------------

Statements, not audited, part of Management review

{200}------------------------------------------------

Financial statements

Statements, not audited, part of Management review

Q4 2025

{201}------------------------------------------------

Statements, not audited, part of Management review

Quarterly figures

Consolidated

	Q1		Q2		Q3			Q4
Income statement (DKK million)	2025	2024	2025	2024	2025	2024	2025	2024
Revenue	3,223	3,030	3,018	3,100	2,815	2,860	3,115	3,233
Earnings before interest, tax, depreciation and amortisation (EBITDA)	74	88	112	137	110	202	205	219
Earnings before interest, tax and amortisation (EBITA)	10	26	45	77	47	143	139	154
Earnings before interest and tax (EBIT)	-11	10	24	56	27	125	115	87
Financials, net	-22	-16	-21	-22	-21	-24	-7	-23
Earnings before tax (EBT)	-33	-6	3	34	6	101	108	63
Net profit or loss for the quarter	-28	-6	-1	25	3	78	100	51

	Q1		Q2		Q3		Q4
Balance sheet (DKK million)	2025	2024	2025	2024	2025 2024	2025	2024
Non-current assets	2,015	1,877	2,061	1,880	2,114 1,879	2,486	1,900
Current assets	4,385	4,205	3,944	4,339	3,929 4,385	3,810	4,208
Balance sheet total	6,400	6,082	6,005	6,219	6,043 6,264	6,296	6,108
Total equity	1,786	1,726	1,754	1,770	1,767 1,831	1,996	1,874
Non-current liabilities	863	891	694	881	687 871	1,113	878
Current liabilities	3,751	3,465	3,557	3,568	3,589 3,562	3,187	3,356
Interest-bearing liabilities, net	1,519	1,450	1,670	1,334	1,739 1,646	1,625	1,232
Invested capital	3,289	3,157	3,410	3,085	3,493 3,460	3,608	3,089
Net working capital, end of period	1,867	1,876	1,865	1,720	1,869 2,036	1,648	1,693
Net working capital, average	1,829	2,075	1,865	1,939	1,824 1,885	1,812	1,831

{202}------------------------------------------------

Statements, not audited, part of Management review

Consolidated – continued

	Q1		Q2		Q3			Q4
Cash flows (DKK million)	2025	2024	2025	2024	2025	2024	2025	2024
Cash flow from operating activities	-88	7	4	202	64	-196	430	525
Cash flow from investing activities	-78	-57	-118	-70	-94	-82	-361	-56
Cash flow from financing activities	51	-57	-26	-85	16	165	-126	-278
Net investments in intangible assets	-26	-34	-31	-41	-24	-38	-45	-41
Net investments in property, plant and equipment	-50	-23	-87	-19	-70	-44	-7	-15
Acquisition and disposal of subsidiaries, net	-2	0	0	-10	0	0	-309	0

	Q1		Q2		Q3			Q4
Financial ratios (% unless otherwise stated)	2025	2024	2025	2024	2025	2024	2025	2024
Revenue growth	6.4	-17.1	-2.6	-4.6	-1.6	-3.5	-3.6	2.3
Organic growth	6.5	-17.1	-3.4	-5.0	-2.1	-3.8	-6.1	2.3
Organic growth adjusted for number of working days	6.5	-15.4	-1.2	-7.8	-2.1	-5.3	-6.1	3.0
Gross profit margin	20.4	20.7	20.3	20.4	19.8	20.7	21.0	20.8
EBITDA margin	2.3	2.9	3.7	4.4	3.9	7.1	6.6	6.8
EBITA margin	0.3	0.9	1.5	2.5	1.7	5.0	4.5	4.8
EBIT margin	-0.3	0.3	0.8	1.8	1.0	4.4	3.7	2.7
Net working capital (NWC end of period)/revenue (LTM)	15.0	15.1	15.1	14.0	15.2	16.8	13.5	13.9
Net working capital (NWC average)/revenue (LTM)	14.7	16.7	15.1	15.8	14.8	15.5	14.9	15.0
Gearing (interest-bearing liabilities,net/EBITDA), no. of times	2.4	2.1	2.8	2.2	3.4	2.7	3.2	1.9
Return on equity (ROE)	7.2	10.9	5.9	8.6	1.5	8.8	4.0	8.4
Return on invested capital (ROIC)	7.7	8.5	6.7	6.6	4.4	6.8	3.0	8.3
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA)	8.4	8.6	11.1	10.0	12.4	11.1	13.1	8.4
Equity ratio	27.2	27.6	28.5	27.7	28.5	28.5	31.0	29.9

{203}------------------------------------------------

Financial statements

Statements, not audited, part of Management review

Consolidated – continued

	Q1		Q2		Q3			Q4
Share ratios (DKK unless otherwise stated)	2025	2024	2025	2024	2025	2024	2025	2024
Earnings per share outstanding (EPS)	-3.70	-0.68	-0.14	3.70	0.41	10.68	12.96	6.98
Intrinsic value per share outstanding	238.39	229.63	234.01	235.92	235.79	244.28	245.31	250.3
Share price	241.44	331.37	310.17	325.27	202.13	354.55	200.07	299.27
Share price/intrinsic value	1.01	1.44	1.33	1.38	0.86	1.45	0.82	1.20

	Q1		Q2		Q3	Q4
Employees	2025	2024	2025	2024	2025 2024	2025	2024
Average number of employees (FTE's)	2,896	2,997	2,902	2,954	2,908 2,923	2,932	2,899

Definitions

Organic growth	Revenue growth adjusted for businesses 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 businesses 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".

{204}------------------------------------------------

Statements, not audited, part of Management review

Financial review

EBITDA amounted to DKK 205m in Q4

EBITDA amounted to DKK 205m, positively affected by DKK 74m from the gain on the sale of our warehouses in Sweden.

(Data shown in brackets relate to the corresponding period in 2024)

Q4 2025

Revenue

Revenue decreased to DKK 3.1bn (DKK 3.2bn), despite including December revenue from Sonepar Norge of DKK 46m. Adjusted organic growth amounted to -6.1% (3.0%).

Despite the launch of additional growth initiatives, the unexpected slowdown in Q2-Q3 continued into Q4. This resulted in negative growth, particularly for Industry and, to a lesser extent, for Installation.

Adjusted organic growth amounted to -2.4% (2.4%) for Installation, -5.5% (-1.1%) for Industry and -25.4% (20.4%) for Trade mainly because Solar Polaris' deliveries to a major solar project park as expected came to an end.

Gross profit

As outlined in our guidance, we expected the downward trend in gross profit margin to taper off in 2025. Although, the actual gross profit margin in Q1-Q3 did not support this assumption, we saw a gross profit margin improvement in Q4.

Gross profit margin at group level increased to 21.0% (20.8%) in Q4 2025. However, part of the gross margin improvement was related to Solar Polaris having lower revenue from deliveries to a major solar project park in Q4 2025 compared with Q4 2024. In addition, we received extraordinary supplier bonus at around same level as in Q4 2024. However, we continue to see pressure on sales prices and fewer cyclical inventory gains.

Other operating income

Other operating income amounted to DKK 74m (DKK 49m) in non-recurring income, primarily relating to the sale of our warehouse in Halmstad, Sweden. The Halmstad warehouse was vacated in 2025 in relation with the construction of our new logistics centre in Kumla, Sweden. In Q4 2024, non-recurring income related to the sale of our warehouse in Örebro, Sweden.

External operating costs and staff costs

The acquisition of Sonepar Norge was approved by the authorities in November 2025 and the integration is ahead of schedule. In Q4 2025, integration and acquisition costs of DKK 11m was included.

Adjusted for these non-recurring costs, external operating costs and staff costs amounted to 16.4% (15.4%) of revenue.

In addition, the recognised gain from the sale of our Halmstad warehouse reactivated bonus of DKK 10m not included in our latest EBITDA guidance.

We continuously initiate measures to optimise our operating model, and to mitigate the impact of cost inflation and market development.

Adjusted organic growth

Gross profit margin

EBITDA DKKm

2025 2024

{205}------------------------------------------------

Statements, not audited, part of Management review

EBITDA

EBITDA amounted to DKK 205m (DKK 219m) impacted by Sonepar Norge EBITDA of DKK -8m, which included integration costs of DKK 7m.

Additionally, the gain from the sale of our Halmstad warehouse in 2025 and Örebro warehouse in 2024 positively impacted EBITDA by DKK 74m (DKK 49m).

When adjusted for non-recurring items, EBITDA amounted to DKK 142m (DKK 170m). The EBITDA margin adjusted for non-recurring items was unchanged at 4.6%.

DKKm	Q4 2025	Q4 2024
EBITDA	205	219
Gain from sale of warehouses	-74	-49
EBITDA adj. non-recurring income	131	170
Integration & acquisition costs	11	-
EBITDA adj. non-recurring items	142	170

The results from the individual markets are shown on page 213.

Amortisation and impairment of intangible assets

Amortisation and impairment of intangible assets amounted to DKK 24m (DKK 67m). In 2024 an impairment loss related to Thermonova of DKK 47m was included.

Financials

Net financials amounted to DKK -7m (DKK -23m) and included DKK 4m in interest income from the Danish tax authorities in connection with the repayment of the taxable value of tax losses associated with divested activities in Belgium.

Earnings before tax

Earnings before tax amounted to DKK 108m (DKK 63m).

Income tax

Income tax amounted to DKK -8m (DKK -12m). Q4 2025 was positively impacted by DKK 17m in income tax from previous years related to repayment of the taxable value of tax losses from divested activities in Belgium.

Net profit

Net profit amounted to DKK 100m (DKK 51m).

Share capital

The Board of Directors regularly reviews the capital structure in relation to our gearing target and capital requirements.

As part of the financing of our acquisition of Sonepar Norge, in November, the Board of Directors resolved to utilise the authorisation in the Articles of Association to increase the share capital.

Following the capital increase, the share capital has a total nominal value of DKK 800.6m, comprising DKK 90.0m A shares and DKK 710.6m B shares, each with a nominal value of DKK 100.

Cash flows

Net working capital as an average of the previous four quarters amounted to 14.9% (15.0%) of revenue. Net working capital at the end of 2025 decreased to 13.5% (13.9%).

Cash flow from operating activities totalled DKK 430m (DKK 525m). Due to a temporary inventory increase, inventory changes amounted to DKK -76m (DKK 47m). We expect this to reverse in Q1 2026. Changes in receivables impacted cash flow by DKK 353m (DKK 292m) while changes in non-interest-bearing liabilities had a cash flow impact of DKK 13m (DKK 42m).

Total cash flow from investing activities amounted to DKK -361m (DKK -56m).

The purchase of intangible assets DKK -45m (DKK -41m) primarily relates to ongoing investments in the optimisation of our digital platforms.

The purchase of property, plant and equipment amounted to DKK -131m (DKK -76m). DKK -117m relates to the construction of our new logistics centre in Kumla, Sweden. Of the total Kumla investment, approx. DKK 125m remains outstanding.

The disposal of property, plant and equipment amounted to DKK 124m (DKK 61m), which primarily relates to sale of our warehouse in Halmstad, Sweden. In 2024, the sale of our warehouse in Örebro had a positive impact of DKK 61m.

The acquisition of businesses of DKK -309m (DKK 0m) relates to the acquisition of Sonepar Norge.

Cash flow from financing activities amounted to DKK -126m (DKK -278m). The raising of noncurrent interest-bearing liabilities of DKK 250m (DKK 100m) and the net proceeds of DKK 120m

from the issuance of new shares were primarily used to finance the acquisition of Sonepar Norge. In addition, changes in current interest-bearing liabilities were affected by DKK -453m (DKK -341m).

As a result, total cash flow amounted to DKK -57m (DKK 191m).

By the end of 2025, Solar had undrawn credit facilities of DKK 1,134m (DKK 1,028m).

Invested capital

Solar Group's invested capital totalled DKK 3,608m (DKK 3,089m) impacted by the acquisition of Sonepar Norge. ROIC calculated over the past 12 months amounted to 3.0% (8.3%).

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ш

Financial statements

Consolidated financial statements

Separate financial statements

Group companies overview

Statements and reports

Statements, not audited, part of Management review

Q4 2025

Our segments in Q4 2025

Installation

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

Installation revenue for Q4 amounted to DKK 1,820m (DKK 1,793m), which corresponds to overall adjusted organic growth of around -2.4% (2.4%) related to the electrical as well as the heating and plumbing business. Solar Danmark, Solar Sverige and Solar Polska saw positive growth while all other main markets posted negative growth.

Segment profit amounted to DKK 125m (DKK 154m), which corresponds to a segment profit margin of 6.9% (8.6%).

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 1,016m (DKK 1,068m). This corresponds to overall adjusted organic growth of around -5.5% (-1.1%). Solar Sverige and Solar Polska saw positive growth while other main markets posted negative growth.

Segment profit amounted to DKK 155m (DKK 173m). This corresponds to a segment profit margin of 15.3% (16.2%).

Trade

Our Trade segment covers special sales and other specialist areas. It also includes Solar Polaris and Høiager.

Revenue from Trade for Q4 amounted to DKK 279m (DKK 372m). This corresponds to overall adjusted organic growth of around -25.4% (20.4%) mainly because Solar Polaris' deliveries to a major solar project park as expected came to an end. When adjusted for Solar Polaris, organic growth amounted to approx. -8% (-7.4%).

Segment profit amounted to DKK 42m (DKK 36m), which corresponds to a segment profit margin of 15.1% (9.7%).

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 117m (DKK 144m) 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 212.

Segment revenue DKKm

Segment profit DKKm

	Revenue		Revenue Segment profit		Segment	Segment margin %
DKK million	2025	2024	2025	2024	2025	2024
Installation	1,820	1,793	125	154	6.9	8.6
Industry	1,016	1,068	155	173	15.3	16.2
Trade	279	372	42	36	15.1	9.7
Solar Group	3,115	3,233	322	363	10.3	11.2

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Statements, not audited, part of Management review

Statement of comprehensive income

	Q4
DKK million	2025	2024
Revenue	3,115	3,233
Cost of sales	-2,461	-2,562
Gross profit	654	671
Other operating income and costs	74	49
External operating costs	-98	-91
Staff costs	-424	-407
Loss on trade receivables	-1	-3
Earnings before interest, tax, depreciation and amortisation (EBITDA)	205	219
Depreciation and write-down on property, plant and equipment	-66	-65
Earnings before interest, tax and amortisation (EBITA)	139	154
Amortisation and impairment of intangible assets	-24	-67
Earnings before interest and tax (EBIT)	115	87
Share of net profit from associates	0	-1
Financial income	23	34
Financial expenses	-30	-57
Earnings before tax (EBT)	108	63
Income tax	-8	-12
Net profit for the period	100	51

Earnings in DKK per share outstanding (EPS)	12.96	6.98
Diluted earnings in DKK per share outstanding (EPS-D)	12.92	6.96

Attributable to:
Shareholders of Solar A/S	99	51
Non-controlling interests	1	0
Net profit for the period	100	51

Income statement Other comprehensive income

		Q4
DKK million	2025	2024
Net profit for the period	100	51
Other income and costs recognised:
Items that can be reclassified for the income statement
Foreign currency translation adjustment of foreign subsidiaries	7	-7
Fair value adjustment of hedging instruments before tax	2	0
Other income and costs recognised after tax	9	-7
Total comprehensive income for the period	109	44
Attributable to:
Shareholders of Solar A/S	108	44
Non-controlling interests	1	0
Total comprehensive income for the period	109	44

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Statements, not audited, part of Management review

Balance sheet

Consolidated

		31.12
DKK million	2025	2024
Assets
Intangible assets	651	381
Property, plant and equipment	1,347	1,070
Right-of-use assets	427	408
Deferred tax assets	36	11
Investments in associates	3	3
Other non-current assets	22	27
Non-current assets	2,486	1,900

Inventories	1,871	1,888
Trade receivables	1,714	1,657
Income tax receivable	11	20
Contract assets	5	4
Other receivables	13	107
Prepayments	63	73
Cash at bank and in hand	133	459
Current assets	3,810	4,208

Total assets	6,296	6,108

DKK million	2025	2024
Equity and liabilities
Share capital	801	736
Reserves	-196	-234
Retained earnings	1,345	1,216
Proposed dividend for the financial year	0	110
Equity attributable to shareholders of Solar A/S	1,950	1,828
Non-controlling interests	46	46
Total equity	1,996	1,874

Interest-bearing liabilities	664	425
Lease liabilities	290	284
Provision for deferred tax	148	157
Other provisions	11	12
Non-current liabilities	1,113	878

Interest-bearing liabilities	650	841
Lease liabilities	154	141
Trade payables	1,937	1,852
Income tax payable	11	8
Contract liabilities	17	35
Other payables	387	462
Prepayments	3	8
Other provisions	28	9
Current liabilities	3,187	3,356
Liabilities	4,300	4,234

Total equity and liabilities	6,296	6,108

31.12

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Statements, not audited, part of Management review

Cash flow statement

Consolidated

		Q4
DKK million	2025	2024
Net profit for the period	100	51
Depreciation, write-down and amortisation	90	132
Changes to provisions and other adjustments	-83	-53
Share of net profit from associates	0	1
Financials, net	7	23
Income tax	9	12
Financial income, received	19	16
Financial expenses, settled	-27	-39
Income tax, settled	25	1
Cash flow before working capital changes	140	144

Working capital changes
Inventory changes	-76	47
Receivables changes	353	292
Non-interest-bearing liabilities changes	13	42
Cash flow from operating activities	430	525

Investing activities
Purchase of intangible assets	-45	-41
Purchase of property, plant and equipment	-131	-76
Disposal of property, plant and equipment	124	61
Acquisition of subsidaries and activities	-309	0
Cash flow from investing activities	-361	-56

	Q4
DKK million	2025	2024
Financing activities
Repayment of non-current, interest-bearing debt	-3	-2
Raising of non-current interest-bearing liabilities	250	100
Change in current interest-bearing debt	-453	-341
Instalment on lease liabilities	-40	-34
Net proceeds from the issuance of shares (share issue)	120	0
Dividends paid to non-controlling interests	0	-1
Cash flow from financing activities	-126	-278
Total cash flow	-57	191
Cash at bank and in hand at the beginning of period	190	268
Cash at bank and in hand at the end of period	133	459

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Financial statements

Statements, not audited, part of Management review

Revenue

	Q4
DKK million	2025	2024
Sales of goods and services	3,086	3,139
Revenue from construction contracts	29	94
Total revenue	3,115	3,233

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Statements, not audited, part of Management review

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 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 29m and DKK 22m, respectively, from construction contracts recognised over time are fully allocated to the Trade segment.

Income statement (DKK million)	Installation	Industry	Trade	Total
Q4 2025
Revenue	1,820	1,016	279	3,115
Cost of sales	-1,486	-761	-214	-2,461
Gross profit	334	255	65	654
Direct costs	-84	-45	-10	-139
Earnings before indirect costs	250	210	55	515
Indirect costs	-125	-55	-13	-193
Segment profit	125	155	42	322
Non-allocated costs				-117
Earnings before interest, tax, depreciation and amortisation (EBITDA)				205
Depreciation and amortisation				-90
Earnings before interst and tax (EBIT)				115
Financials, net including share of net profit from associates and impairment on associates				-7
Earnings before tax (EBT)				108

Revenue and costs in the amount of DKK 94m and DKK 87m, respectively, from construction contracts recognised 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

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Financial statements

Statements, not audited, part of Management review