Quarterly Report • Mar 15, 2018
Quarterly Report
Open in ViewerOpens in native device viewer
| 2017/18 | 2016/17 | 2017/18 | 2016/17 | |
|---|---|---|---|---|
| Nov–Jan | Nov–Jan | May–Jan | May–Jan | |
| 3 mths | 3 mths | 9 mths | 9 mths | |
| Net sales, SEK m. | 1,773.3 | 1,715.4 | 5,474.1 | 5,130.4 |
| Growth, % | 3.4 | 21.1 | 6.7 | 11.4 |
| Operating profit, SEK m | 67.7 | 105.1 | 344.5 | 391.3 |
| Operating margin, % | 3.8 | 6.1 | 6.3 | 7.6 |
| Profit after tax, SEK m | 41.6 | 50.8 | 218.6 | 265.5 |
| Earnings per share, SEK | 0.80 | 0.98 | 4.20 | 5.11 |
| Operating cash flow per share, SEK | 1.28 | 4.01 | 4.62 | 9.42 |
Over the third quarter, organic growth amounted to 4.0 percent. Growth was good in most of Western Europe, Slovakia, Canada and Russia. Profits for the quarter were somewhat a disappointment and impacted by larger project deliveries with low margins and non-recurring items in connection with continued restructuring. Non-recurring items for the quarter totalled SEK 21 million. Adjusted operating profit totalled SEK 88 million, as against SEK 105 million in the same quarter last year.
The market performed relatively well in many countries during the quarter. Deliveries to several major projects were carried out during the period. In the Nordic market, growth was good in Sweden and Finland, while market conditions were tougher in Norway and Denmark. In Norway, we see slightly lower demand for residential ventilation products. In Western Europe, all markets showed a positive trend, except for the Netherlands. In Eastern Europe, Russia for example continues to perform well, while within the Other markets region the trend remains uneven, since sales are in large part dominated by major project deliveries.
In February, Systemair acquired Syneco GmbH. The company sells and services Menerga's products in the Swiss market. The sales company, which is headquartered in Solothurn, is today focused on the French/Italian part of the market. Following the acquisition, Syneco will be integrated into Menerga, Switzerland. The company has sales of around SEK 50 million and 16 employees.
In Hyderabad, India, we have moved into a new, modern leased production facility. The factory will manufacture air distribution products for the southern parts of India. At Systemair in Germany, a new building incorporating office and common areas is under construction. The development will enable continued expansion of our German operations. We are also doing investments in other production facilities within the group in machinery as part of a programme for production of nextgeneration of air handling units.
Growth remains strong in several of our major markets. Systemair is currently engaged in a restructuring phase and a number of actions are in progress to turn around results in some of the Group's companies.
The ventilation market is more and more heading in the direction of energy-efficient system solutions, and new opportunities are emerging. We are carrying out major investments in IT, digitalisation and system solutions, which will provide our customers with simpler access to our products, and will create good opportunities for future profitable growth.
We will also continue to make acquisitions and invest in production equipment, product development and marketing in order to maintain our growth.
Roland Kasper President and CEO
Group sales for the third quarter of the 2017/18 financial year totalled SEK 1,773.3 million (1,715.4), up 3.4 percent from the same period in the preceding year.
Adjusted for both foreign exchange effects and acquisitions, net sales grew 4.0 percent. Growth in acquired operations was 0.9 percent, while foreign exchange effects reduced sales by 1.5 percent during the period.
During the third quarter, sales in the Nordic region fell by 2 percent from the same period in the preceding year. The Swedish and Finnish markets reported good growth during the quarter, while the Norwegian and Danish markets declined. Adjusted for the effects of foreign exchange and acquisitions, sales declined 1 percent.
During the quarter, sales in the West European market were 13 percent higher than in the corresponding period in the preceding year. Adjusted for foreign exchange effects and acquisitions, sales rose by 10 percent. Several markets in the region performed well during the period, including Germany, the UK and Italy, while sales declined in the Netherlands.
Sales in Eastern Europe and the CIS rose by 8 percent
during the quarter. Adjusted for foreign exchange effects and acquisitions, the increase was 7 percent. Sales in Russia continue to develop strongly and have now risen for five consecutive quarters. During the period, the Russian market accounted for 6 percent of Systemair's total sales, compared with 5 percent in the previous year.
Sales in the North and South America region were largely unchanged during the quarter, compared with the same period in the preceding year counted in SEK. The sales development was however positive in local currencies especially the Canadian market continued to show positive growth during the quarter. Organic growth in the region remains strong. Adjusted for foreign exchange effects and acquisitions, sales rose by 9 percent.
Sales in Other markets declined 16 percent during the quarter, compared with the same period in the preceding year. Adjusted for the effects of foreign exchange and acquisitions, sales were down 9 percent. Sales in Turkey and Qatar grew during the quarter, but fell away in the Middle East, where the sales figures for the preceding year included delivery of a major project. Sales in South Africa also fell, after adjustment for acquisitions.
| 2017/18 | 2016/17 | 2017/18 | 2016/17 | |||||
|---|---|---|---|---|---|---|---|---|
| Nov–Jan | Nov–Jan | Sales – | Of which, | May–Jan | May–Jan | Sales – | Of which, | |
| 3 mths | 3 mths | change | organic | 9 mths | 9 mths | change | organic | |
| Nordic region | 435.0 | 444.5 | -2% | -1% | 1,274.9 | 1,213.7 | 5% | 4% |
| Western Europe | 735.4 | 649.2 | 13% | 10% | 2,242.0 | 2,019.2 | 11% | 5% |
| Eastern Europe & the CIS North and South |
274.3 | 253.9 | 8% | 7% | 863.9 | 736.5 | 17% | 11% |
| America | 123.9 | 124.0 | 0% | 9% | 462.5 | 440.9 | 5% | 8% |
| Other markets | 204.7 | 243.8 | -16% | -9% | 630.8 | 720.1 | -12% | -7% |
| Total | 1,773.3 | 1,715.4 | 3% | 4% | 5,474.1 | 5,130.4 | 7% | 4% |
(Sales figures are based on geographical domicile of customers.)
Net sales per quarter compared with
Systemair AB Interim report Q3 2017/18 3(14)
The gross profit for the third quarter amounted to SEK 585.4 million (578.4), an increase of 1.2 percent over the same period in the preceding year. However, the gross margin narrowed to 33.0 percent (33.7). The main factor underlying the lower gross margin was a smaller number of major project orders with a low margin that were delivered during the quarter. In addition, a change in the product mix, especially in Norway, had a negative impact, as did insufficient volumes at some of the Group's factories.
Operating profit for the third quarter totalled SEK 67.7 million (105.1), down 35.6 percent from the same period in the preceding year. The Company's operating margin was 3.8 percent (6.1). The lower operating margin is partly attributable to a poorer gross margin. The operating profit was also dominated by nonrecurring items, totalling SEK 20.6 million in the quarter and comprising restructuring costs in, above all, Belgium, Sweden and Germany, as well as relocation of production from Austria to Slovenia. Future reduction and restructuring measures are evaluated at several of the Group's facilities.
Selling and administration expenses for the quarter totalled SEK 519.3 million (496.8), a rise of SEK 22.5
million, or 4.5 percent. Company acquisitions accounted for SEK 7.6 million of the quarter's costs. As a result, selling and administration expenses for comparable units rose by SEK 14.9 million, or 3.0 percent.
Selling expenses were charged with SEK 3.3 million (8.0) for anticipated and confirmed impairment losses on trade receivables. During the quarter, acquisition-related costs totalled SEK 0.1 million (-).
Net financial items for the third quarter ended up at SEK -14.9 million (-29.9). The effects of foreign exchange on long-term receivables, loans and bank balances was SEK -8.1 million (-25.7) net. Interest expenses for the quarter totalled SEK -7.2 million (-6.2).
The tax expense for the quarter is estimated at SEK -11.2 million (-24.4), corresponding to an effective tax rate of 21.2 percent, based on profit after net financial items.
Tax for the period was affected by a writedown of deferred tax assets related to previously capitalised tax losses totalling SEK -17.3 million. Another factor was revenue recognition of tax-loss carry-forwards arising from the acquisition of companies with losses amounting to SEK 25.7 million from previous business activities.
In May 2017, Systemair AB completed the acquisition of FRIVENT Luft- & Wärmetechnik GmbH, Austria. FRIVENT is based in St. Johann, in Tyrol, Austria. The company sells products for commercial and industrial use to a value of around EUR 7 million per year in Austria, Germany, the Czech Republic and Russia. It makes air handling units, heat recovery systems and roof-mounted units for niche applications. During autumn 2017, work on relocating production to Systemair's factory in Slovenia began. Frivent has been consolidated as of 1 May, inclusive.
In June 2017, Systemair's South African subsidiary
Operating margin per quarter, relative to the same period in previous years
acquired the assets of the South African company Viking Air Conditioning, a market-leading manufacturer of air handing units with integrated cooling. Viking is based in Spartan, Johannesburg, South Africa. The company produces and sells customised air handling units with integrated cooling for commercial use, to a value of around SEK 40 million annually in South Africa and neighbouring countries. Viking has been selling highquality air handling units with and without integrated cooling for more than 25 years. The products are stocked by the leading supermarket chain in the region, among other resellers. The company has 45 employees in leased premises of 3,000 m2 . Viking has been consolidated as of 1 June, inclusive.
In September, the French subsidiary Frico S.A.S. acquired the operations of French company Hora S.A.S. The company operates as a reseller of electric ceiling heaters and has sales of around EUR 1.2 million. The acquisition includes 3 employed salespersons and agreements with approximately 15 agents.
If the above-mentioned acquisition had been consolidated as of the start of the financial year, it would not have had any material impact on the Group's sales and operating profit. Note 1 in this report contains an acquisition analysis and the effects of the acquisitions on the Group's cash and cash equivalents.
Investments for the quarter, excluding divestments, totalled SEK 122.9 million (89.9), including SEK 116.0 million (81.2) in new construction and machinery. The investments consisted in large part of investments in buildings and machinery in the factories in Germany and Turkey. Acquisitions and formerly withheld additional purchase considerations totalled SEK 0.1 million (5.1) for the quarter. Depreciation of non-current assets amounted to SEK 52.2 million (47.8).
The average number of employees in the Group was 5,184 (4,772). At the end of the period, Systemair had 5,454 employees (5,115), 339 more than one year previous. New employees were recruited chiefly at Systemair in Sweden (46), Germany (40), Menerga Germany (34), Lithuania (33), Slovakia (33), India (31) and the Czech Republic (30). Personnel cutbacks were made in China (-27) and France (-16). Acquired companies added 89 employees to the Group, of whom 32 at Frivent in Austria and 45 at Viking in South Africa.
Cash flow from operating activities before changes in working capital totalled SEK 49.7 million (78.8) for the quarter. Changes in working capital, mainly consisting of a decrease in accounts receivable, had a positive impact of SEK 16.8 million (+129.8) on cash flow. Cash flow from financing operations totalled SEK +35.4 million (-122.9) net. At the end of the period, the Group's net indebtedness was SEK 1,649.7 million (1,304.1). The consolidated equity/assets ratio was 43.9 percent (45.5) at the end of the period.
In February 2018, Systemair acquired Syneco GmbH, Switzerland. The company sells and services Menerga's products in the Swiss market. The sales company, which is headquartered in Solothurn, is today focused on the French/Italian part of the market. Following the acquisition, Syneco will be integrated into Menerga, Switzerland. The company has sales of around SEK 50 million and 16 employees.
Systemair is exposed to operational and financial risks in its business. Operational risks include the international nature of the operations, tough competition and the sensitivity of the construction industry to the business cycle. The financial risks that Systemair has identified in its business consist of foreign exchange risk, borrowing and interest rate risk, as well as credit risk and liquidity risk. The material risks and uncertainties affecting Systemair are described in more detail in the Company's
The Topvex series comprises a range of Swedish-manufactured compact units sold largely to new construction projects, but also to the renovation sector, as it is specially designed for simple delivery and installation in existing premises even where space is limited. The unit features energy-efficient EC fans and achieves efficiency of around 90 percent in heat recovery. Two major deliveries are in progress, to Scotland and Belarus, where we are supplying 28 Topvex units to a care home in Glasgow and the same number to Futuris Business Center in Minsk.
2016/17 Annual Report. No significant change occurred in the risk situation during the period.
Systemair's significant transactions with related parties concern ebmpapst AB and ebmpapst Mulfingen GmbH & Co. KG. Transactions with related parties are described in detail in Note 37 to the Accounts in the Annual Report for the 2016/17 financial year. During the period, no change worthy of mention occurred in the scale of these transactions.
The Parent Company's net sales for the financial year totalled SEK 80.6 million (72.3). Operating profit totalled SEK -63.6 million (-59.6). The company had 49 employees (44). The core business of the Parent Company is that of intra-Group services.
Systemair is a leading ventilation company with operations in 50 countries in Europe, North America, South America, the Middle East, Asia and Africa. The company had sales of approximately SEK 6.9 billion in the 2016/17 financial year and approximately 5,500 employees. Systemair has reported an operating profit every year since 1974, when the company was founded. During the past 10 years, the Company's growth rate has averaged about 10 percent.
Systemair has well-established operations in growth markets. The Group's products are marketed under the Systemair, Frico, Fantech and Menerga brands. Systemair shares have been quoted on the Mid Cap List of the Nasdaq OMX Nordic Exchange in Stockholm since October 2007. The Group comprises about 70 companies.
The Company established operations in 1974 with a product concept, the circular duct fan, a design that considerably simplified the process of installation. We adopted the motto "the direct route", which has been developed from a product concept into a business philosophy. Our product range has expanded strongly to extend over a broad range of fans, air handling units, products for air distribution, air conditioning, air curtains and heating products.
Operating from the core values of simplicity and reliability, our business concept is to develop, manufacture and market high-quality ventilation products. On the basis of our business concept and with our customers in focus, our aim is to be seen as a company to rely on, with the emphasis on delivery reliability, availability and quality.
Availability is an important parameter in terms of our competitiveness, and we ensure effective control of our flow of goods, with owned production units, centralised warehouse facilities and an efficient ERP system. With modern production plants and our own sales companies around the world, we reach out directly to our customers.
The business model supports stability and development, and today we are a leading producer and supplier of ventilation products with our own production and own sales companies.
The following strategies create major strengths and competitive advantages that help us to achieve our goals.
The information in this Interim report is information that Systemair is required to disclose with the Swedish Securities Markets Act (lagen om värdepappersmarknaden) and/or the Swedish Financial Instruments Trading Act (lagen om handel med finansiella instrument). This information has been submitted for publication at 8.00 a.m. on 15 March 2018.
This information has not been reviewed by the Company's auditors.
Year-end report Q4 2017/18 14 June 2018 8.00 a.m.
Interim report Q1 2018/19 30 August 2018 1.00 p.m.
President and CEO Roland Kasper Telephone: +46 (0)222-440 13, +46 (0)730 94 40 13 E-mail: [email protected] CFO Anders Ulff Telephone: +46 (0)222-440 09, +46 (0)70 577 40 09 E-mail: [email protected]
Systemair AB (publ) Co. Reg. No. 556160-4108 SE-739 30 Skinnskatteberg, Sweden Telephone: +46 (0)222-440 00 [email protected] www.systemair.com
| Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | 2017/18 Nov–Jan 3 mths |
2016/17 Nov–Jan 3 mths |
2017/18 May–Jan 9 mths |
2016/17 May–Jan 9 mths |
2017/18 Feb–Jan trl 12 |
2016/17 May-Apr 12 mths |
2017/18 May–Jan 9 mths |
2016/17 May–Jan 9 mths |
|
| Net sales | 1,773.3 | 1,715.4 | 5,474.1 | 5,130.4 | 7,207.3 | 6,863.6 | 80.6 | 72.3 | |
| Cost of goods sold | -1,187.9 | -1,137.0 | -3,650.3 | -3,355.4 | -4,797.3 | -4,502.4 | - | - | |
| Gross profit | 585.4 | 578.4 | 1,823.8 | 1,775.0 | 2,410.0 | 2,361.2 | 80.6 | 72.3 | |
| Other operating income | 34.3 | 39.5 | 86.2 | 85.7 | 120.1 | 119.6 | 1.1 | 2.3 | |
| Selling expenses | -420.7 | -401.8 | -1,199,2 | -1,117,2 | -1,630,1 | -1,548.1 | -39.8 | -31.4 | |
| Administration expenses | -98.6 | -95.0 | -264.3 | -264.0 | -365.4 | -365.1 | -64.2 | -60.5 | |
| Other operating expenses | -32.7 | -16.0 | -102.0 | -88.2 | -142.4 | -128.6 | -41.3 | -42.3 | |
| Operating profit/loss | 67.7 | 105.1 | 344.5 | 391.3 | 392.2 | 439.0 | -63.6 | -59.6 | |
| Net financial items | -14.9 | -29.9 | -42.1 | -24.4 | -46.5 | -28.8 | 243.2 | 237.5 | |
| Profit/loss after financial items | 52.8 | 75.2 | 302.4 | 366.9 | 345.7 | 410.2 | 179.6 | 177.9 | |
| Appropriations | - | - | - | - | - | - | 0.2 | -3.5 | |
| Tax on profit for the period | -11.2 | -24.4 | -83.8 | -101.4 | -98.4 | -116.0 | 10.8 | 8.7 | |
| Profit for the period1 | 41.6 | 50.8 | 218.6 | 265.5 | 247.3 | 294.2 | 190.6 | 183.1 | |
| Earnings per share, SEK2 | 0.80 | 0.98 | 4.20 | 5.11 | 4.76 | 5.66 | - | - |
| Profit for the period Other comprehensive income Items that have been, or may later be, transferred to profit for the year: |
41.6 | 50.8 | 218.6 | 265.5 | 247.3 | 294.2 | 190.6 | 183.1 |
|---|---|---|---|---|---|---|---|---|
| Translation difference | -13.7 | -96.9 | -34.0 | 42.8 | 8.0 | 84.8 | - | - |
| Impact of tax | -0.3 | 0.0 | 0.0 | -0.4 | -0.1 | -0.5 | - | - |
| Items that cannot be transferred to profit for the year: |
||||||||
| Revaluation of defined-benefit pensions, net after tax |
- | - | - | - | -1.4 | -1.4 | - | - |
| Other comprehensive income | -14.0 | -96.9 | -34.0 | 42.4 | 6.5 | 82.9 | - | - |
| Total comprehensive income for the period1 |
27.6 | -46.1 | 184.6 | 307.9 | 253.8 | 377.1 | 190.6 | 183.1 |
1) Profit for the period is attributable in its entirety to the Parent Company's shareholders.
2) No dilution effect arises since the options programme that expired in October 2017 was arranged by Färna Invest.
| Group | Parent Company | ||||
|---|---|---|---|---|---|
| SEK m | 31/01/2018 | 31/01/2017 | 30/04/2017 | 31/01/2018 | 31/01/2017 |
| ASSETS | |||||
| Goodwill | 724.4 | 676.4 | 691.4 | 0.1 | 0.3 |
| Other intangible assets | 185.1 | 196.1 | 193.3 | 18.6 | 4.0 |
| Property, plant and equipment | 1,601.4 | 1,377.8 | 1,413.4 | 32.8 | 17.9 |
| Financial and other assets | 222.1 | 202.1 | 200.6 | 2,584.9 | 2,308.2 |
| Total non-current assets | 2,733.0 | 2,452.4 | 2,498.7 | 2,636.4 | 2,330.4 |
| Inventory | 1,241.4 | 1,132.3 | 1,170.4 | - | - |
| Current receivables | 1,439.9 | 1,283.8 | 1,450.3 | 1,288.0 | 1,120.0 |
| Cash and cash equivalents | 194.9 | 212.9 | 241.8 | - | - |
| Total current assets | 2,876.2 | 2,629.0 | 2,862.5 | 1,288.0 | 1,120.0 |
| TOTAL ASSETS | 5,609.2 | 5,081.4 | 5,361.2 | 3,924.4 | 3,450.4 |
| EQUITY AND LIABILITIES | |||||
| Equity | 2,461.9 | 2,312.1 | 2,381.3 | 2,029.1 | 1,928.6 |
| Untaxed reserves | - | - | - | 5.3 | 5.7 |
| Non-current liabilities, non-interest-bearing | 230.1 | 235.2 | 259.1 | - | - |
| Non-current liabilities, interest-bearing | 389.2 | 372.1 | 319.3 | 649.5 | 526.2 |
| Total non-current liabilities | 619.3 | 607.3 | 578.4 | 649.5 | 526.2 |
| Current liabilities, interest-bearing | 1,394.8 | 1,086.0 | 1,236.1 | 1,215.1 | 936.8 |
| Current liabilities, non-interest-bearing | 1,133.2 | 1,076.0 | 1,165.4 | 25.4 | 53.1 |
| Total current liabilities | 2,528.0 | 2,162.0 | 2,401.5 | 1,240.5 | 989.9 |
| TOTAL EQUITY AND LIABILITIES | 5,609.2 | 5,081.4 | 5,361.2 | 3,924.4 | 3,450.4 |
| 2017/18 Nov–Jan |
2016/17 Nov–Jan |
2017/18 May–Jan |
2016/17 May–Jan |
2016/17 May-Apr |
|
|---|---|---|---|---|---|
| SEK m | 3 mths | 3 mths | 9 mths | 9 mths | 12 mths |
| Operating profit/loss | 67.7 | 105.1 | 344.5 | 391.3 | 439.0 |
| Adjustment for non-cash items | 45.5 | 1.5 | 124.3 | 114.1 | 158.4 |
| Financial items | -6.6 | -4.3 | -16.3 | -15.6 | -22.4 |
| Income tax paid | -56.9 | -23.5 | -99.4 | -94.3 | -128.7 |
| Cash flow from operating activities before changes in working capital |
49.7 | 78.8 | 353.1 | 395.5 | 446.3 |
| Changes in working capital | 16.8 | 129.8 | -113.1 | 94.5 | 18.2 |
| Cash flow from operating activities | 66.5 | 208.6 | 240.0 | 490.0 | 464.5 |
| Cash flow from investing activities | -112.8 | -87.4 | -392.2 | -246.2 | -281.3 |
| Cash flow from financing activities | 35.4 | -122.9 | 114.7 | -215.8 | -134.5 |
| Cash flow for the period | -10.9 | -1.7 | -37.5 | 28.0 | 48.7 |
| Cash and cash equivalents at start of period | 208.3 | 229.5 | 241.8 | 176.9 | 176.9 |
| Translation differences, cash and cash equivalents | -2.5 | -14.9 | -9.4 | 8.0 | 16.2 |
| Cash and cash equivalents at close of period | 194.9 | 212.9 | 194.9 | 212.9 | 241.8 |
| 2017/18 May–Jan |
2016/17 May–Jan |
2016/17 May-Apr |
|||||
|---|---|---|---|---|---|---|---|
| SEK m | Equity attributable to Parent Company shareholders |
Total equity |
Equity attributable to Parent Company shareholders |
Total equity |
Equity attributable to Parent Company shareholders |
Total equity |
|
| Amount at beginning of year | 2,381.3 | 2,381.3 | 2,108.2 | 2,108.2 | 2,108.2 | 2,108.2 | |
| Dividend | -104.0 | -104.0 | -104.0 | -104.0 | -104.0 | -104.0 | |
| Comprehensive income | 184.6 | 184.6 | 307.9 | 307.9 | 377.1 | 377.1 | |
| Amount at end of period | 2,461.9 | 2,461.9 | 2,312.1 | 2,312.1 | 2,381.3 | 2,381.3 |
| 2017/18 Nov–Jan |
2016/17 Nov–Jan |
2017/18 May–Jan |
2016/17 May–Jan |
2016/17 May-Apr |
||
|---|---|---|---|---|---|---|
| 3 mths | 3 mths | 9 mths | 9 mths | 12 mths | ||
| Net sales | SEK m | 1,773.3 | 1,715.4 | 5,474.1 | 5,130.4 | 6,863.6 |
| Growth | % | 3.4 | 21.1 | 6.7 | 11.4 | 12.3 |
| Operating profit/loss | SEK m | 67.7 | 105.1 | 344.5 | 391.3 | 439.0 |
| Operating margin | % | 3.8 | 6.1 | 6.3 | 7.6 | 6.4 |
| Profit after net fin. items | SEK m | 52.8 | 75.2 | 302.4 | 366.9 | 410.2 |
| Profit margin | % | 3.0 | 4.4 | 5.5 | 7.2 | 6.0 |
| Return on capital employed | % | 9.3 | 11.9 | 9.3 | 11.9 | 12.0 |
| Return on equity | % | 10.2 | 12.9 | 10.2 | 12.9 | 12.6 |
| Equity/assets ratio | % | 43.9 | 45.5 | 43.9 | 45.5 | 44.6 |
| Investments | SEK m | 112.8 | 87.4 | 392.2 | 246.2 | 281.3 |
| Depreciation/Amortisation | SEK m | 52.2 | 47.8 | 149.8 | 137.7 | 186.7 |
| Per share ratios | ||||||
| Earnings per share | SEK | 0.80 | 0.98 | 4.20 | 5.11 | 5.66 |
| Equity per share | SEK | 47.34 | 44.46 | 47.34 | 44.46 | 45.79 |
| Operating cash flow per share | SEK | 1.28 | 4.01 | 4.62 | 9.42 | 8.93 |
| No. of shares at end of period | No. | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 |
| 2017/18 2016/17 |
2015/16 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Nov–Jan | Aug–Oct | May–Jul | Feb–Apr | Nov–Jan | Aug–Oct | May–Jul | Feb–Apr | Nov–Jan | ||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | ||
| Net sales | SEK m | 1,773.3 | 1,863.7 | 1,837.2 | 1,733.2 | 1,715.4 | 1,769.2 | 1,645.9 | 1,508.7 | 1,416.3 |
| Growth | % | 3.4 | 5.3 | 11.6 | 14.9 | 21.1 | 8.9 | 5.3 | 0.4 | -1.1 |
| Gross margin | % | 33.0 | 33.9 | 33.0 | 33.8 | 33.7 | 35.2 | 34.8 | 34.1 | 33.7 |
| Operating profit/loss | SEK m | 67.7 | 143.9 | 132.9 | 47.7 | 105.1 | 153.2 | 133.0 | 62.2 | 30.1 |
| Operating margin | % | 3.8 | 7.7 | 7.2 | 2.8 | 6.1 | 8.7 | 8.1 | 4.1 | 2.1 |
| Return on capital employed | % | 9.3 | 10.4 | 10.8 | 12.0 | 11.9 | 10.5 | 10.1 | 10.2 | 9.3 |
| Return on equity | % | 10.2 | 10.8 | 11.4 | 12.6 | 12.9 | 11.6 | 10.6 | 9.8 | 9.9 |
| Equity/assets ratio | % | 43.9 | 43.2 | 44.0 | 44.6 | 45.5 | 43.9 | 45.0 | 43.9 | 43.6 |
| Basic equity per share | SEK | 47.34 | 46.81 | 46.22 | 45.79 | 44.46 | 45.35 | 43.85 | 40.54 | 39.74 |
| Basic earnings per share | SEK | 0.80 | 1.95 | 1.45 | 0.55 | 0.98 | 2.22 | 1.91 | 0.53 | 0.25 |
| Cash flow from operating activities per share |
SEK | 1.28 | 1.92 | 1.42 | -0.49 | 4.01 | 3.22 | 2.19 | -0.77 | 0.74 |
Systemair applies International Financial Reporting Standards (IFRS). This interim report was prepared for the group in accordance with the Swedish Annual Accounts Act, the Swedish Financial Reporting Board's recommendation RFR 1 and IAS 34 Interim Financial Reporting, and for the Parent Company in accordance with the Swedish Annual Accounts Act and RFR 2. The accounting principles and methods of calculation applied for the group and Parent Company accord with those used in preparing the most recent Annual Report.
The price paid for the shares in Frivent, Austria, for the assets of Viking, South Africa, and for the operations of Hora, France, may provisionally be calculated as follows:
Total historical cost, less transaction costs SEK 69.2 million
| Identifiable net assets | Total |
|---|---|
| Goodwill | 50.4 |
| Brands and customer relationships | 14.7 |
| Machinery and equipment | 6.9 |
| Financial and other assets | 5.0 |
| Inventory | 9.8 |
| Current receivables | 2.6 |
| Other current assets | 1.6 |
| Cash and cash equivalents | 6.5 |
| Non-interest-bearing liabilities (incl. deferred tax liability) | -9.9 |
| Interest-bearing liabilities | -12.3 |
| Other operating liabilities | -6.1 |
| 69.2 |
Transaction costs in the acquisition of subsidiaries totalled SEK 0.6 million.
The total effect on cash flow from the acquisitions, including payment of a formerly withheld additional purchase consideration for prior years' acquisitions, amounted to SEK -66.0 million. A non-interest-bearing non-current liability relating to withheld purchase considerations for the above-mentioned acquisitions totals SEK 8.8 million.
Brands and customer relationships have been stated at the net present value of future payment flows. The useful life of these assets has been estimated at 5-10 years.
The goodwill upon acquisition is attributable to the strong market position of the companies acquired, synergies expected to arise after the acquisition and the company's estimated future earning capacity.
Systemair's financial instruments consist of derivatives, trade accounts receivable, cash and cash equivalents, availablefor-sale financial assets, trade accounts payable, accrued supplier costs and interest-bearing liabilities. Liabilities to credit institutions carry variable interest rates or, in certain cases, fixed rates for a short period. Derivatives are measured at fair value via the income statement on the basis of input data corresponding to level 2 as defined in IFRS 13. Available-forsale financial assets are measured at fair value on the basis of input data corresponding to level 1 as defined in IFRS 13. Other financial assets and liabilities are short-term. For that reason, the fair values of all financial instruments are considered to equate approximately to the carrying amounts. Systemair has not recognised any financial assets and liabilities net.
For segment reporting, Systemair aggregates into the geographical segments of Europe and Rest of the World. The market segment Europe accounts for the major share of Systemair's business. The Europe segment consists of a large number of markets. The legal entities within Europe work with each other in manufacturing and sales. The Company also judges that in every material respect similar economic conditions exist in the region, and so the legal entities within the region have been aggregated. Systemair further considers that accounting for the merged segments Europe and Rest of World presents a clearer picture. The Parent Company is accounted for via a separate segment, Group-wide. The subsidiaries are merged on the basis of their legal domicile and consolidation takes place according to the same principles as for the Group as a whole.
| 2017/18 | 2016/17 | 2017/18 | 2016/17 | |
|---|---|---|---|---|
| Nov–Jan | Nov–Jan | May–Jan | May–Jan | |
| SEK m | 3 mths | 3 mths | 9 mths | 9 mths |
| Europe | ||||
| Net sales, external | 1,474.6 | 1,374.1 | 4,450.3 | 4,104.5 |
| Net sales, intra-Group | 34.2 | 41.9 | 109.4 | 128.3 |
| Operating profit/loss | 101.5 | 78.6 | 381.5 | 376.4 |
| Operating margin, % | 6.9 | 5.7 | 8.6 | 9.2 |
| Assets | 2,943.5 | 2,499.4 | 2,943.5 | 2,499.4 |
| Investments | 89.9 | 72.4 | 275.5 | 102.2 |
| Depreciation/Amortisation | 45.1 | 41.0 | 128.8 | 117.6 |
| Rest of World | ||||
| Net sales, external | 298.7 | 341.3 | 1,023.8 | 1,025.9 |
| Net sales, intra-Group | 2.7 | 1.5 | 7.8 | 9.9 |
| Operating profit/loss | -4.1 | 27.3 | 34.4 | 74.2 |
| Operating margin, % | -1.4 | 8.0 | 3.4 | 7.2 |
| Assets | 773.5 | 790.5 | 773.5 | 790.5 |
| Investments | 12.8 | 4.2 | 20.6 | 11.1 |
| Depreciation/Amortisation | 5.9 | 5.9 | 17.2 | 17.3 |
| Group-wide | ||||
| Net sales, intra-Group | 26.6 | 25.1 | 80.4 | 72.3 |
| Operating profit/loss | -29.7 | -0.8 | -71.4 | -59.3 |
| Assets | 3,925.3 | 3,456.3 | 3,925.3 | 3,456.3 |
| Investments | 10.1 | 10.8 | 96.1 | 132.9 |
| Depreciation/Amortisation | 1.2 | 0.9 | 3.8 | 2.8 |
| Eliminations | ||||
| Net sales, intra-Group | -63.5 | -43.5 | -197.6 | -138.2 |
| Assets | -2,033.1 | -1,664.8 | -2,033.1 | -1,664.8 |
| Total | ||||
| Net sales, external | 1,773.3 | 1,715.4 | 5,474.1 | 5,130.4 |
| Operating profit/loss | 67.7 | 105.1 | 344.5 | 391.3 |
| Operating margin, % | 3.8 | 6.1 | 6.3 | 7.6 |
| Assets | 5,609.2 | 5,081.4 | 5,609.2 | 5,081.4 |
| Investments | 112.8 | 87.4 | 392.2 | 246.2 |
| Depreciation/Amortisation | 52.2 | 47.8 | 149.8 | 137.7 |
In its interim report, Systemair presents performance measures that supplement the financial ratios defined in IFRS; these are known as alternative performance measures (APMs). The Company is of the view that these APMs provide valuable information to investors and the Company's management, in that they enable evaluation of the Company's performance, trends, capacity to pay down debt and invest in new business opportunities, and that they reflect the Group's acquisition-intensive business model.
Because not all companies calculate financial performance measures in the same way, these are not always comparable. As a result, they should not be regarded as substitutes for performance measures as defined in IFRS. A number of definitions appear below, the majority of which are alternative performance measures.
Earnings before financial items and tax.
Growth is defined as the change in net sales, relative to net sales for the preceding period.
Change in sales by comparable units, adjusted for acquisitions and foreign currency effects.
Operating profit excluding restructuring costs.
Profit margin
Profit after financial items divided by net sales.
Profit after financial income, for the trailing 12 months (TTM), divided by average capital employed.
Total assets less non-interest-bearing liabilities.
Profit after tax before non-controlling interest, for the trailing 12 months (TTM), divided by average equity excluding non-controlling interest.
The number of employees at the end of the accounting period. New employees, appointments terminated, part-time employees and paid overtime are converted into full-time equivalents.
Profit for the period attributable to Parent Company shareholders, divided by the average number of shares during the period.
Cash flow from operating activities for the period, divided by the average number of shares during the period.
Adjusted equity divided by total assets.
Equity divided by the number of shares at the end of the period.
The Ecodesign Directive lays down minimum requirements for energy performance in products and outlaws the most energy- and resourceintensive products in the EU market.
Organisations that certify products in the ventilation industry in the markets in Europe, the Middle East, Asia and North America, on the basis of impartial third-party inspection.
Low-energy or passive houses that are built airtight and are subject to strict demands for effective ventilation and low energy consumption.
Uses of products in different types of building. For example, single-family homes, apartment blocks, hospitals, industrial buildings and tunnels.
In a building, the computerised system that controls and monitors functions such as those for the building's ventilation, lighting, electricity supply, fire safety and security.
An IT system that manages, for example, processes such as financial management, sales and service, logistics, distribution and production.
An IT system that handles control, organisation and administration of customers and customer relations in a business.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.