SOLAR EQUITY STORYWe believe in productivity improvement, digitalisation, the green transition and networked development

AGENDA

1. Future perspectives and megatrends

2. Our strategic sourcing and services approach

3. Investment proposition

4. Financial targets and strategic focus areas

5. Business update

6. The results we achieved in Q3 and Q1-Q3 2019

7. Outlook 2019

8. Appendix – facts about Solar

2

SOLAR - A DIGITAL AND GREEN SOURCING AND SERVICES COMPANY

• Solar believes in productivity improvement, digitalisation,

the green transition and networked development.

• We support our customers in developing energy-efficient

solutions, reducing waste and optimising logistics based

on strong digital platforms.

• More than DKK 6bn of our approx. DKK 11bn revenue

come from digital sales. Consequently, e-business and

digitalisation are central elements in our business.

• Our energy-efficient solutions match the green transition.

Especially the process of electrification will play an

important role in the future.

• Our productivity agenda and our well-established Fastbox

concept match the ongoing urbanisation.

3

Digitalisation, the green transition and

urbanisation play essential roles

HOW WE CREATE VALUE

OUR STRATEGIC SOURCING AND SERVICES APPROACH

4

5

INVESTMENT CASE

OUR INVESTMENT PROPOSITION

Reasons for investing in Solar:

* Technical recalculation due to implementation of IFRS 16, Leases.

** We maintain the lower part of the range as we want a higher degree of freedom

in order to have sufficient capital in the company for continued development of the business.

*** Changed due to our historical pay-out ratios.

Financial ratios 2020 financial targets*

Growth, core business Profitable growth above market level

Growth, related businessOrganic growth of at least

15% per year

EBITA margin, core business At least 4% in 2020 at the latest,

corresponding to ROIC of

at least 12% after tax

Equity interest 35-40%

Gearing (NIBD/EBITDA) 1.5**-3.0

Pay-out ratio At least 35%***

6

Our three strategic focus areas

Strategic suppliers:We pursue opportunities for growth within concept sales.

Industry focus: As industry sales is the most profitable of our key segments we will continue to focus on this business area.

Operational excellence:We will continue to invest in improved productivity in order to continuously grow the company and expand the services we offer to our customers.

FINANCIAL TARGETS

AND STRATEGIC FOCUS AREAS

We work dedicatedly on our three strategic focus areas

in order to achieve our 2020 financial targets

• Our green and digital approach combined with our TCO

mindset underpin a responsible use of resources in all

aspects.

• In Norway, our focus on electrification and renewable

energy has intensified over the past years. A successful

Sun Partner programme has developed into a Climate and

Energy Partner programme with a broader assortment.

• In Denmark, we have established a new customer centre

in the heart of Copenhagen, which is focused on

sustainable solutions for delivery, transport and packaging.

The centre serves the growing demand for our Fastbox

delivery service.

BUSINESS UPDATE ON SUSTAINABLE BUSINESS

7

We keep focusing on energy-efficient

solutions to drive the green transition

BUSINESS UPDATE ONOUR STRATEGIC FOCUS AREAS

Strategic suppliers:

• Without increasing the number of stock-keeping units, we

are constantly expanding the number of products we have

available, i.e. from our current 215,000 to an anticipated

500,000 over the next one to two years.

Industry focus:

• Our Scandinavian industry business is making good

progress. To further strengthen our market position within

infrastructure, we have hired a VP Infrastructure

Scandinavia with a strong track record from the industry.

• Strategic review of MAG45.

Operational excellence:

• Successful implementation of SAP eWM at our central

warehouse in Örebro in Sweden.

• Initiated implementation of AutoStore in Solar Nederland. 8

We expand the number of products and

increase efficiency at the same time

IN Q3, SOLAR AGAIN SAW SOLID GROWTH

9

Organic growth, adjusted for

no. of working daysSolar Group

-1%

0%

1%

2%

3%

4%

5%

6%

7%

Q1 Q2 Q3 Q4 FY

2019 2018

• Positive adjusted organic growth across all markets in core business.

• Organic growth in Solar Norge and Solar Nederland was particularly notable.

• Solar Sverige delivered organic growth of 4.6% thereby continuing the positive trend from Q2.

• Disappointing revenue performance in MAG45 with growth of -1.6%

Q3

2019

Q3

2018

Revenue, DKK m 2,777 2,539

Revenue growth, % 9.4 -2.2

Adj. organic growth, % 6.3 -0.3

Adjusted organic growth

increased to 6.3%

IN Q3, EBITA WAS UP BY DKK 12M

10

Q3 EBITA margin

development Solar Group

3,7% -0,5%0,1%

1,3%

0,4% 0,0% -1,2%

3,8%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

Q32018

COGS Oth.inc.

EOC Staff Debt. Depr. Q32019

• The EBITA increase was driven by improvements in Solar Norge and Solar Nederland.

• Change in product and customer mix in Solar Nederland affected gross profit margin at group level negatively by 0.4 percentage points.

• Implementation of IFRS 16, Leases had insignificant impact on EBITA level but impacted development in EOC and depreciation compared to Q3 2018.

Q3 EBITA margin increased

to 3.8%

Q3

2019

Q3

2018

Revenue, DKK m 2,777 2,539

Revenue growth, % 9.4 -2.2

Adj. organic growth, % 6.3 -0.3

Gross profit, DKK m 548 513

Gross profit margin 19.7 20.2

EBITA, DKK m 105 93

EBITA margin 3.8 3.7

Core business Related business

IN Q3, CORE BUSINESS INCREASED EBITA TO DKK 111M

11

Strong development in EBITA,

especially in Solar Norge

Solar Group

99 0 -4

10

3

3 111

80

85

90

95

100

105

110

115

Q3 2018 DK SE NO NL Othermarkets

Q3 2019

DKK million

Q3

2019

Q3

2018

Q3

2019

Q3

2018

Revenue, DKK m 2,642 2,402 135 137

EBITA, DKK m 111 99 -6 -6

Adj. organic growth, % 6.8 -1.4 -2.9 23.7

EBITA margin 4.2 4.1 -4.4 -4.4

Core business Related business

IN Q1-Q3, CORE BUSINESS INCREASED EBITA TO DKK 258M

12

Improved EBITA in Q1-Q3 for both core and

related business

Solar Group

218

234 245

150

170

190

210

230

250

Q1-Q3 2018 Core business Related business Q1-Q3 2019

DKK million

Q1-Q3

2019

Q1-Q3

2018

Q1-Q3

2019

Q1-Q3

2018

Revenue, DKK m 8,172 7,678 430 411

EBITA, DKK m 258 235 -13 -17

Adj. organic growth, % 5.9 0.9 3.3 27.4

EBITA margin 3.2 3.1 -3.0 -4.1

IN Q3, TOTAL CASH FLOW AT DKK 16M

13

Cash flow,

total

Cash flow,

operating activities

47

144 -40

-88

-2 61

0

50

100

150

200

250

Q2 2019 Oper. act. Inv. act. Fin. act. FX Q3 2019

DKK million

-22

140

21 -8-2

15 144

-40

-20

0

20

40

60

80

100

120

140

160

Net profit Depr.,amort. &impairm.

Tax & adj. Invent. Receiv. Liab. Operat.act.

DKK million

DEVELOPMENT IN NET WORKING CAPITAL (NWC) AND NET INTEREST-BEARING DEBT (NIBD)

14

The acquisition of business activities

impacted NWC negatively by approx. 0.2%

NIBD and gearing impacted by the

implementation of IFRS 16, Leases

7,0%

8,0%

9,0%

10,0%

11,0%

12,0%

13,0%

14,0%

1.050

1.100

1.150

1.200

1.250

1.300

1.350

1.400

Q118 Q218 Q318 Q418 Q119 Q219 Q319

NWC%DKK million

0,0

0,5

1,0

1,5

2,0

2,5

3,0

0

200

400

600

800

1.000

1.200

1.400

Q118 Q218 Q318 Q418 Q119 Q219 Q319

Gearing, no. of times

DKK million

GUIDANCE 2019

15

Reconfirmation of 2019 EBITA of DKK 365m Solar Group

• We reconfirm our market outlook for 2019.

• Our group revenue guidance has been changed from at least DKK 11.6bn to approx. DKK 11.75bn with an organic growth of approx. 5% and we reconfirm our group EBITA guidance of approx. DKK 365m.

• For core business, we increase the revenue guidance from at least DKK 10.95bn to approx. DKK 11.2bn corresponding to organic growth of approx. 5% and we increase the EBITA guidance from approx. DKK 370m to approx. DKK 380m. The increase is mainly driven by a slightly higher growth than expected.

• For related business, we have revised our revenue guidance from DKK 650m to approx. DKK 550m and organic growth around 0%, and we have revised our EBITA guidance from DKK -5m to approx. DKK -15m due to decreasing growth.

DKK million Core Related Group

2017, publ. 12.01.2018 309 -45 264

Divestments AT & BE 31 - 31

2017, continuing op. 340 -45 295

Overhead costs -10 - -10

EBITA loss SE & NO -50 - -50

Improvements 68 12 80

Divestment STI - 12 12

2018, continuing op. 348 -21 327

eWM roll-out costs -10 - -10

Acquisition SE, net -10 - -10

Expected improvements 52 6 58

2019, guidance 380 -15 365

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APPENDIX –

FACTS ABOUT SOLAR

Solar is a leading sourcing and

services company

Our core business centres on product sourcing,

value-adding services and optimisation of our

customers’ businesses

1919Founded in 1919

1953Listed on the stock

exchange since 1953

>DKK 11bn>DKK 11bn in revenue and

EBITA of DKK 327m in 2018

CustomersA lot of close customer

relationships in our markets

>50%E-business share

WarehousesStrategically placed

central warehouses

215,000Approximately 215,000

articles in stock

3,000Approx. 3,000 people

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SOLAR GROUP AT A GLANCE

WE DRAW ON 100 YEARS OF EXPERIENCE AND KNOWHOW

LightingInstallation Cables IndustryMarine &

Offshore

Heating, Water

& Sanitation

VentilationSecurityCommunication Renewable

energy

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SOLAR’S CORE BUSINESS AREAS

ELECTRICAL, HEATING AND PLUMBING, AND VENTILATION TECHNOLOGIES

SOLAR’S CORE BUSINESS

OPTIMAL SUPPLY TO OUR CUSTOMERS

● Day delivery● Night delivery● Delivery on worksite● Delivery at company

address● Pick-up● Fastbox*

● Order via e-business before 6PM and receive before 7 AM*

● We have a 97% delivery success rate

● We perform extensive quality control in our operation

Poland

Norway

Sweden

Denmark

The Netherlands

* Electrical, heating and plumbing components

We offer a flexible

distribution setupWe work while

you sleep

● With Solar Fastbox

● We make life easier for our customers

● Increase productivity

● Save time and transportation costs

● Make materials available at customer work site within an hour

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SOLAR FASTBOX CONCEPT

AT WORK SITE WITHIN AN HOUR

Customer channels

● Webshop● Mobile● Direct online connection

(EDI)● Direct sales● Drive-ins● Competence centres

Sales concepts

● Solar Plus● Solar Netto● Solar Light● Solar Cable● Solar Project● Solar Tools● Solar Heat

Solar services

● Inventory management● Logistics solutions● Delivery services● Equipment rental● Special handling● Technical support● Education and competence

training● Financing services

HOW WE SERVE OUR CUSTOMERS

EVERYTHING STARTS WITH THE CUSTOMER

Distribution of share capital and votes

based on the latest public information

Holdings of 5% or more of share capital Share capital Votes

The Fund of 20 December,

Vejen, Denmark16.9% 60.0%

RWC Asset Management LLP,

London, England15.8% 7.5%

Chr. Augustinus Fabrikker A/S,

Copenhagen, Denmark10.8% 5.1%

Nordea Funds Oy, Danish Branch,

Copenhagen, Denmark10.7% 5.1%

FIL Limited,

Pembroke, Bermuda5.3% 2.5%

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OWNERSHIP - SOLAR IS LISTED ON NASDAQ COPENHAGEN

AND HAS A MAJORITY OF LONG TERM INVESTORS