This document summarizes a presentation given at an ABC Breakfast Club meeting about Solar's stock policies. It provides an overview of Solar's operations in 7 European countries and 4 Aurora countries. It then outlines Solar's refreshed strategy, business areas, and how it delivers products to different customer sectors. The remainder of the document defines roles and responsibilities, classification processes, product life cycles, key performance indicators, and guidelines around purchasing, returns, and drive-in stock management to optimize inventory levels.

1. ABC BREAKFAST CLUB SOLAR: OPRET POLITIKKER FOR IND- OG UDFASNING AFHOLDT D. 09. NOVEMBER 2010 KUNDECASE: SOLAR

2. PÅDENNE ABC BREAKFAST CLUB INVITEREDE VI: ESBEN JANSEN, CORPORATE SUPPLY CHAIN COORDINATOR FRA Her erderespræsentation Mvh ABC Softwork

3. ABC Breakfast Club- IndkøbsoptimeringSolar stock policy

4. 2008-05-13 Solar A/S- Company presentation

5. Solar in short 2009 Solar is one of Northern Europe’s leading technical wholesalers Listed on NASDAQ OMX Copenhagen EUR € 1,431m m revenue - 3,175 people 7 countries - 12 central warehouses - 156 Drive-Ins Electrical, heating, plumbing and ventilation components and solutions

6. Solar in 7 European countries Solar Norge ASHeadquarters located in Gardermoen.One central warehouse.Three regions and twenty-five drive-ins.CED Jan Willy Fjellvær. Solar Polska Sp. z o.o.Headquarters located in Lodz.One central warehouse.Five regions and seventeen drive-ins.CED Dariusz Targosz. Solar Sverige ABHeadquarters located in Gothenburg.Three central warehouses.Four regions and fourty-five drive-ins. CED Kjell Svensson. Solar Danmark A/SHeadquarters located in Vejen. One central warehouse.Three regions and twelve drive-ins.CED Søren Larsen. Solar Deutschland GmbHHeadquarters located in Neumünster.One central warehouse.Six regions and twenty drive-ins. CED Jens Andersen. P/F Solar FøroyarOne warehouse and one sales office located in Thorshavn. Manager Finn Jørgensen. Solar Nederland BVHeadquarters located in AlkmaarThree central warehouses.Six regions and nineteen drive-ins.CED Frans Soulier.

7. Aurora in 4 European countries Headquarters located in Ballerup, Denmark. One central warehouse. Four national companies. CED Pauli Joensen. Aurora Group Danmark A/S,Denmark Aurora Group Norge AS, Norway Aurora Group Sverige AB, Sweden Aurora Group Finland Oy, Finland

8. Solar's 2009 revenue in € million The Faroes 3.9 Aurora 50.5 The Netherlands 371.1 Poland 22.5 Denmark 355.7 Finland 15.4 Germany 147.4 Sweden 262.2 Norway 210.4

10. Solar delivers products and solutions to customers within: Utility and Infrastructure Marine and Offshore Residential and Commercial Buildings Industry Public Sector

12. Late order cut-off on e-orders.

13. Orders are executed the same day.

14. Flexible distribution setup.

16. 2008-05-13 Solar A/S- Indkøbsoptimering via Stock Policy

17. Stock policy

19. Definition of responsibility split.

21. Supply Chain owns the logistical part of the contract whereas Market Department owns the commercial part.

24. Monthly sales forecast figures for the first 6 month must be available. The numbers must have been registered and documented by the market and sales departments.

26. Sales figures in 3 month or more of the last 9 month

28. Sales figures in less than 3 of the last 9 months

29. A “storage date” older than 9 months

31. “Campaign” or “seasonal” articles without sales for 12 months will be discontinued.

33. Forecast

34. Phase out

35. Backorder

36. Replace of existing product

37. New product

38. First purchase

39. Replace of existing product

40. Product information (Data, purchase history)

41. Validation

42. Phase out

43. New product

44. Forecast

45. Campaign

46. Season times + Items

47. Replenishment

48. Service degree outbound

49. PLC

50. Phase out

51. Remove from Inventory

52. BackorderThe model indicates the communication flow needed to ensure an optimized inventory

54. Meetings should as a minimum be conducted at least once per month. Example

55. Roles and responsibilities (Headlines) It is important to state that the purchase department must not argue why an article should be discontinued, but that product management is responsible for determining why an article should be kept in stock even though the article does not have "life". Product management is responsible for determining which articles must be carried in stock, and the purchase department is responsible for maintaining a healthy and optimised stock.

56. Classification Month 2 Month 1 Month 3 Month 4 Month 5 The double ABC code is calculated on a monthly basis, using 3 months' ongoing data – this means that there will always be one new month's data together with two known months' data. Double ABC classification Classification per business area (HWS, ventilation, electrical products) When moving into a new business area, classification should be kept separate for that area until turnover to some extent equals the existing business area.

61. The purchase Department can recall articles that are not selling or is stock exceeding (Not for articles in a fixed assortment like Solar Plus etc).

64. Not buying more lines, but buying more focused

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