No. 1 2023 Annual Report 2022

In 2022, we achieved a record high EBITDA of DKK 1,175m. This was an increase of DKK 264m or 29%, which exceeded our expectations.

CEO Jens Andersen says:
"In 2022, we achieved strong growth rates and improved earnings across all our segments. We delivered an EBITDA of DKK 1,175m. This is an EBITDA increase of 29% and, thus, an all-time high EBITDA margin of 8.5%. This was achieved in a year with unusual market conditions including challenging supply chains and a substantial increase in inflation.

We reduced our Scope 1 & 2 emissions by a total of 23% in 2022. This supports our ambition of reaching Net-Zero by 2030. In addition, we have raised our ambitions further to now also comprising Scope 3 emissions, for which we have requested SBTi to validate a 25% reduction by 2030 compared to 2020.

I am impressed by the high level of dedication and commitment shown by our employees during the year and would like to extend my gratitude to them all. They are the reason for this year’s strong results.”

2022 revenue

• Adjusted organic growth increased to 12.9% (5.9%) and revenue rose to DKK 13.9bn (DKK 12.4bn). Although growth was supported by price increases, we continued to see growth in volume.

2022 EBITDA

• EBITDA increased by DKK 264m to DKK 1,175m compared to 2021.
• All markets achieved substantial improvements in EBITDA, with Solar Nederland and Solar Sverige making a significant contribution.

Dividend distribution

• At the Annual General Meeting, the Board of Directors will propose dividend distribution of DKK 45.00 per share, corresponding to a payout ratio of 50%.

2023 outlook

• We expect revenue of approx. DKK 13,700m equal to an organic growth of approx. 0%.
• We expect an EBITDA of approx. DKK 900m.

See the assumptions on page 8 in Annual Report 2022.

Audio webcast and teleconference today

The presentation of Annual Report 2022 will be made in English on 9 February 2023 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be available at www.solar.eu. Participation will be possible via teleconference.

Teleconference call-in numbers:

DK: tel. +45 787 684 90
UK: tel. +44 203 769 6819
US: tel. +1 646 787 0157  Pin: 392423

Contacts

CEO Jens Andersen - tel. +45 79 30 02 01
CFO Michael H. Jeppesen - tel. +45 79 30 02 62
IR Director Dennis Callesen - tel. +45 29 92 18 11

Enclosure: Annual Report 2022, pages 1-147, including Q4 2022 quarterly information.

Facts about Solar

Solar is a leading European sourcing and services company mainly within electrical, heating & plumbing and climate & energy solutions. Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses.

We facilitate efficiency improvement and provide digital tools that turn our customers into winners. We drive the green transition and provide best-in-class solutions to ensure sustainable use of resources.

Solar Group is headquartered in Denmark, generated revenue of approx. DKK 13.9bn in 2022 and has approx. 3,000 employees. Solar is listed on Nasdaq Copenhagen and operates under the short designation SOLAR B. For more information, please visit www.solar.eu.

Disclaimer

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

Attachments

• No. 1 2023 Annual Report 2022
• SOLA-2022-12-31-en