Solar — Earnings Release 2016

Apr 27, 2016

Solar Group revenue and EBITA for Q1 2016 exceeded our expectations slightly.
Our outlook for 2016 remains unchanged.

CEO Anders Wilhjelm says:
”Q1 revenue and EBITA exceeded our expectations slightly, and we are pleased to
see organic growth in Q1 despite headwinds in certain markets. We are also
pleased to see a continuous improvement of our working capital position. During
Q1, we have started to deliver on our digital promise. One example is the
launch of a new Solar Light website in Denmark. This new website focuses on
simplifying the work of electrical contractors, consulting engineers and
architects.”

Financial highlights (DKK million)* Q1 2016 Q1 2015 2015

Revenue 2,656 2,645 10,587

EBITA 52 60 296

Earnings before tax 28 40 201

Cash flow from operating activities -251 -183 331

Financial ratios (%)

Organic growth adj. for number of working days 1.2 5.8 5.2

EBITA margin 2.0 2.3 2.8

Net working capital, period-end/revenue (LTM) 11.6 12.7 9.3

Net working capital, average/revenue (LTM)** 11.6 12.4 11.8

• Due to our divestment of the assets of Solar Deutschland GmbH, 2015 and 2016
  figures in this announcement relate to our continuing operations.
  ** Calculated as an average of the past four quarters’ inventories, trade
  receivables and trade payables.

---

Q1 2016 revenue

-- Q1 revenue exceeded our expectations slightly.
-- Actual organic growth landed at 1.2% against 5.8% in Q1 2015 when we adjust
for the number of working days.

Q1 2016 EBITA

-- Q1 EBITA exceeded our expectations slightly.
-- Q1 results were negatively impacted by this year’s early timing of Easter
compared to Q1 2015.

2016 outlook

-- Our outlook for 2016 remains unchanged compared to Annual Report 2015.
-- The MAG45 acquisition’s impact on revenue is expected to be in the range of
DKK 310m but limited on EBITA.
-- We expect neither market growth nor organic revenue growth in 2016, and we
expect EBITA to remain at 2015 levels less the positive one-off of DKK 9m
from a change in pension plans in the Netherlands that we saw in 2015.
-- As previously announced, we plan to invest in our digital platforms to
strengthen the customer experience. This will have a negative impact on
2016 profitability, and our present outlook recognises this.

Audio webcast and teleconference today
The presentation of Quarterly Report Q1 2016 will be made in English on 27
April 2016 at 11:00 CET. The presentation will be transmitted as an audio
webcast and will be accessible via www.solar.eu. Participation will be possible
via a teleconference.

Teleconference call-in numbers:

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

Yours faithfully
Solar A/S

Anders Wilhjelm

Enclosure: Quarterly Report Q1 2016, pages 1-24.

Facts about Solar
Solar Group is a leading European sourcing and services company, operating
primarily within the electrical, heating and plumbing, and ventilation
technology sectors. Our core business centres on product sourcing, value-adding
services and optimisation of our customers’ businesses.

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

Solar Group is headquartered in Denmark, generated revenue of approximately DKK
10.6bn in 2015 and has some 3,000 employees. Solar has been listed on Nasdaq
Copenhagen since 1953, and operates under the short designation SOLAR B. For
more information, please visit www.solar.eu.

Disclaimer
This announcement was published in English and Danish today via Nasdaq
Copenhagen. In the event of any inconsistency between the two versions, the
English version shall prevail.