A) Your task is to analyse Solaris leverage, focusing on the relationship between debt and the value of the company attributable to shareholders, as well as on cash interest cover. Calculate and interpret the trends including possible reasons. [8 marks]

B) Due to the COVID pandemic, in recent months Solaris has suffered disruption to their earlier positive trend in sales and profitability. The company is therefore in need of additional external financing. Based on your analysis in part b) above, explain how these developments would impact the companys leverage. [5 marks]

C) Solaris decides to proceed with a global digital investor roadshow for a 9-year USD100 million green bond. Explain why this debt instrument may be a good funding option for Solaris and discuss the growth drivers for this field of finance. [7 marks]

2020 2019 33.9 50.7 25.2 25.5 15.0 18.9 Solaris Plc Income Statement at 31 March (EUR millions) Sales Cost of sales Gross profit Operating expenses Depreciation Operating profit Interest expenses Profit before tax Taxation 3.3 0.4 2.7 | 21.8 4.8 17.0 0.4 15.8 2.5 13.3 2.4 14.6 2.7 10.6 Net Income 2020 2019 2020 2019 Solaris Plc Statement of financial position at 31 March (EUR millions) 14.4 11.1 6.0 6.0 11.1 6.0 1.2 609.0 294.0 Cash and short-term investments Accounts receivable Inventories Other current assets Total current assets Land Plant and machinery 0.3 609.0 294.0 Trade payables and other current 16.8 liabilities 3.6 Total current liabilities 1.2 Non-current borrowings and bonds 0.3 Total non-current liabilities 21.9 Total liabilities 0.3 Share capital 413.7 Retained earnings 414.0 Total equity 435.9 Total liabilities and equity 21.9 620.1 300.0 0.3 120.0 120.0 738.9 21.0 15.9 739.2 141.0 135.9 Total non-current assets Total assets 761.1 761.1 435.9 2020 2019 33.9 50.7 25.2 25.5 15.0 18.9 Solaris Plc Income Statement at 31 March (EUR millions) Sales Cost of sales Gross profit Operating expenses Depreciation Operating profit Interest expenses Profit before tax Taxation 3.3 0.4 2.7 | 21.8 4.8 17.0 0.4 15.8 2.5 13.3 2.4 14.6 2.7 10.6 Net Income 2020 2019 2020 2019 Solaris Plc Statement of financial position at 31 March (EUR millions) 14.4 11.1 6.0 6.0 11.1 6.0 1.2 609.0 294.0 Cash and short-term investments Accounts receivable Inventories Other current assets Total current assets Land Plant and machinery 0.3 609.0 294.0 Trade payables and other current 16.8 liabilities 3.6 Total current liabilities 1.2 Non-current borrowings and bonds 0.3 Total non-current liabilities 21.9 Total liabilities 0.3 Share capital 413.7 Retained earnings 414.0 Total equity 435.9 Total liabilities and equity 21.9 620.1 300.0 0.3 120.0 120.0 738.9 21.0 15.9 739.2 141.0 135.9 Total non-current assets Total assets 761.1 761.1 435.9