Earnings Release • Feb 23, 2017
Earnings Release
Open in ViewerOpens in native device viewer
Net sales Q3
EBIT Q3
| 2016/17 | 2015/16 | 2016/17 | 2015/16 | |
|---|---|---|---|---|
| Nov–Jan | Nov–Jan | May–Jan | May–Jan | |
| 3 mths | 3 mths | 9 mths | 9 mths | |
| Net sales, SEK m. | 1,715.4 | 1,416.3 | 5,130.4 | 4,603.9 |
| Growth, % | 21.1 | -1.1 | 11.4 | 5.1 |
| Operating profit, SEK m. | 105.1 | 30.1 | 391.3 | 281.8 |
| Operating margin, % | 6.1 | 2.1 | 7.6 | 6.1 |
| Profit after tax, SEK m. | 50.8 | 13.0 | 265.5 | 179.5 |
| Earnings per share, SEK | 0.98 | 0.25 | 5.11 | 3.45 |
| Operating cash flow per share, SEK | 4.01 | 0.74 | 9.42 | 4.02 |
During the third quarter, organic growth reached 12.2 percent. Growth was healthy in many countries and especially good in Turkey, Norway, Denmark and France. Earnings continued to improve compared with the preceding year, partly explained by a calendar effect. Adjusted operating profit for the quarter was SEK 120 million, compared to SEK 40 million for the same quarter the preceding year. The restructuring costs for the quarter were SEK 15 million.
The market developed strongly in many countries during the third quarter. Price increases were implemented on an ongoing basis to offset increased raw material prices. During the quarter, deliveries were made to several major projects. The Nordic market remains buoyant, as do several markets in Western Europe. The Russian market had its first quarter of weak growth in a long time, although for the most recent nine-month period sales declined. In the Other markets region, Turkey, the Middle East and India achieved healthy growth.
The restructuring programme is under way in the parts of the Group affected. The programme focuses on the air conditioning segment, acquired in recent years, and specific lossmaking units in various countries. The programme consists of capacity adjustments and a review of the product range. The cost of the programme will rise to approximately SEK 45 million in total, with estimated annual cost savings of SEK 45 million and full impact within two years. The cost thus far is SEK 26 million, of which SEK 15 million arose in the third quarter. Activities to boost earnings in production, logistics and sales continue apace.
In August, we acquired the Czech company 2VV, a major local manufacturer of industrial and residential air handling units as well as air curtains. The acquisition creates opportunities for product and manufacturing synergies in our European units. Integration of the company is advancing as planned. Our acquisition of German air curtain maker TTL has also progressed as anticipated.
Our current investment project in Turkey, a new factory, will provide us with more production capacity at lower cost when it is completed in autumn 2017.
In Skinnskatteberg, we completed major investments in machinery intended to improve productivity in sheet metal forming. A new technical centre is under construction at the plant in Skinnskatteberg. This investment includes a state-of-the-art laboratory for sound and air-flow measurements, a prototype workshop, training facilities and offices. The official opening is scheduled for summer 2017.
Growth is strong in several of our major markets. The Russian market is showing positive signs, though sales today are less than half the level they were when the market peaked three years ago.
Leveraging our global presence, we can utilise our resources and our market presence to identify and adapt the applications and opportunities that emerge. Trends in urbanisation, combined with increased demand for energy-efficient solutions, provide good opportunities for future growth.
We will also continue to make acquisitions and invest in production equipment, product development and marketing in order to keep growing.
Roland Kasper President and CEO
Group sales for the third quarter of the 2016/17 financial year totalled SEK 1,715.4 million (1,416.3), up 21.1 percent from the same period the preceding year.
Adjusted for both foreign exchange effects and acquisitions, net sales grew 12.2 percent. Growth in acquired operations was 4.1 percent, while foreign exchange effects boosted sales 4.8 percent during the period.
During the third quarter, sales in the Nordic region increased 31 percent from the preceding year. All Nordic markets performed strongly during the quarter. In Norway, tunnel ventilation has seen positive development. Adjusted for foreign exchange effects and acquisitions, sales rose 22 percent.
During the quarter, sales in the Western European market were 15 percent stronger than in the corresponding period in the preceding year. Adjusted for foreign exchange effects and acquisitions, sales increased 6 percent. Several markets in the region performed well during the period, such as Belgium, France and the Netherlands.
Sales in Eastern Europe and the CIS increased 23 percent during the quarter. Adjusted for foreign exchange effects and acquisitions, sales increased 5 percent. During the period, the Russian market accounted for 5 percent of Systemair's total sales, compared with 6 percent in the preceding year.
Sales in the North and South America region rose 14 percent in the quarter compared to the same period the preceding year. The U.S. market advanced during the quarter, once again propelled by major projects related to classroom air handling units. Adjusted for foreign exchange effects and acquisitions, sales increased 5 percent.
Sales in Other markets increased 24 percent compared with the same period the preceding year. The Turkish market continued to perform very well during the quarter. Sales also increased in Malaysia, the Middle East and India.
| 2016/17 | 2015/16 | 2016/17 | 2015/16 | |||||
|---|---|---|---|---|---|---|---|---|
| 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 | 444.5 | 339.1 | 31% | 22% | 1,213.7 | 1,061.7 | 14% | 11% |
| Western Europe | 649.2 | 565.8 | 15% | 6% | 2,019.2 | 1,814.5 | 11% | 7% |
| Eastern Europe & the CIS |
253.9 | 206.4 | 23% | 5% | 736.5 | 737.4 | 0% | -5% |
| North and South America |
124.0 | 108.5 | 14% | 5% | 440.9 | 379.1 | 16% | 12% |
| Other markets | 243.8 | 196.5 | 24% | 24% | 720.1 | 611.2 | 18% | 19% |
| Total | 1,715.4 | 1,416.3 | 21% | 12% | 5,130.4 | 4,603.9 | 11% | 8% |
(Sales figures are based on the geographic domicile of customers.)
The gross profit for the third quarter amounted to SEK 578.4 million (477.7), up 21.1 percent from the same period the preceding year. The gross margin was 33.7 percent (33.7). On a full-year basis, the gross margin improved slightly, from 34.5 percent, to 34.6 percent.
The operating profit for the third quarter reached SEK 105.1 million (30.1), an increase of 249 percent from the same period the preceding year. The operating margin was 6.1 percent (2.1). Adjusted for the restructuring programme, the operating profit for the quarter was SEK 120.3 million and the operating margin 7.0 percent.
Selling and administration expenses for the quarter totalled SEK 496.8 million (440.0), up SEK 56.8 million. Companies acquired accounted for SEK 12.1 million of costs in the quarter, so selling and administration expenses for comparable units rose by SEK 44.7 million, or 10.2 percent.
Selling expenses were charged with SEK 8.0 million (1.1) for anticipated and confirmed impairment of trade receivables. No acquisition-related costs were charged to profit for the quarter (0.0). The restructuring programme, launched in the 2015/16 financial year and expected to cost a total of SEK 45 million, accounted for expenses of SEK 15.2 million in the quarter.
Net financial items for the third quarter ended at SEK -29.9 million (-4.7). The net effect of foreign exchange on non-current receivables, loans and bank balances was SEK -25.7 million (-0.3). This was mainly attributable to the depreciation of the Turkish lira and the appreciation of the Russian ruble. Interest expense for the quarter was SEK -6.2 million (-5.0).
The tax expense for the quarter is estimated at SEK -24.4 million (-12.4), corresponding to an effective tax rate of 32.5 percent based on profit after net financial items.
In August, Systemair acquired the Czech company group 2VV, a leading developer and manufacturer of air handling units for industrial and residential use. The company also produces air curtains for commercial applications in the region. The company has 189 employees and is based in Pardubice, 120 kilometres east of Prague. In 2015, the company reported sales of around EUR 18 million.
In September, Systemair acquired the assets of TTL Tar + Torluftschleier Lufttechnische Geräte GmbH, a German high-end manufacturer of air curtains for commercial use. TTL is located in Winterbach, west of Stuttgart, and has sales of around EUR 4 million. In addition to the company's assets, Systemair also took over 24 employees and TTL's 4,000 m2 leased factory and office building.
If the companies acquired had been consolidated starting 1 May 2016, net sales for the period under review would have been approximately SEK 5,205.3 million. The operating profit for that period would have totalled approximately SEK 395.2 million. Note 1 in this report contains an acquisition analysis and the effects of the acquisitions on the Group's cash and cash equivalents.
Operating margin per quarter, relative to the same period in previous years
Investments for the quarter, excluding divestments, totalled SEK 89.9 million (52.4), including SEK 81.2 million (42.5) in new construction and machinery. Investments consisted primarily of capacity and replacement investments at a number of factories. Acquisitions and additional purchase considerations previously withheld totalled SEK 5.1 million (5.9) for the quarter. Depreciation of property, plant and equipment equalled SEK 47.8 million (43.3).
The average number of employees in the Group was 4,772 (4,555). At the end of the period, Systemair had 5,115 employees (4,721), 394 more than one year previous. New hires have mostly been added at Systemair in Turkey (52), Sweden (31), Malaysia (22), Denmark (18), Germany (17), Canada (16), Norway (12) and Lithuania (10). Personnel cutbacks were made in Russia (-36), at Menerga in Germany (-13), and Brazil (-11). Through company acquisitions, 259 employees joined the Group, including 12 at Menerga, Poland, 189 at 2VV, Czech Republic, and 22 at TTL, Germany.
Cash flow from operating activities before changes in working capital totalled SEK 78.8 million (20.3) for the quarter. Changes in working capital, mainly consisting of a decrease in accounts receivable, had a positive impact of SEK 129.8 million (18.1) on cash flow. Cash flow from financing operations totalled SEK -122.9 million (-24.6) net. At the end of the period, net indebtedness was SEK 1,304.1 million (1,349.5). The consolidated equity/assets ratio was 45.5 percent (43.6) at the end of the period.
No significant events occurred after the end of the period.
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, and credit and liquidity risk. The material risks and uncertainties affecting Systemair are described in more detail in the company's 2015/16 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 36 to the accounts in the Annual Report for the 2015/16 financial year. During the period, no change worthy of mention occurred in the scale of these transactions.
Parent Company net sales for the financial year were SEK 72.3 million (66.0). Operating profit was SEK -59.6 million (-38.2). The company had 44 employees (42). The core business of the Parent Company is that of intra-Group services.
Systemair is a leading ventilation company with operations in 49 countries in Europe, North America, South America, the Middle East, Asia and Africa. The company had sales of approximately SEK 6.1 billion in the 2015/16 financial year and approximately 5,000 employees. Systemair has reported an operating profit every year since 1974, when the company was founded. During the past 15 years, the Company's growth rate has averaged about 12 percent.
Systemair has well-established operations in growth
Systemair has received an order worth about EUR 9.5 million for Istanbul's new airport. The airport is one of Turkey's largest construction projects ever. Systemair will deliver 531 air-conditioning systems and 5,630 fan convectors.
markets. The Group's products are marketed under the Systemair, Frico, VEAB, Fantech, Menerga and Holland Heating 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 over 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.
Development and expansion of Systemair's own sales organisation.
Good relationships with ventilation contractors, distributors and consultants.
The information in this Interim Report is information that Systemair is required to disclose in accordance 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 is to be submitted for publication at 8.00 a.m. on 23 February 2017.
This interim report has not been reviewed by the Company's auditors.
Skinnskatteberg, 23 February 2017 Systemair AB (publ)
Board of Directors
Year-end report Q4 2016/17 8:00 a.m., 8 June 2017 Interim report Q1 2017/18 1:00 p.m., 24 August 2017
Telephone: +46 (0)222-440 13, +46 (0)730-94 40 13 E-mail: [email protected]
Telephone: +46 (0)705-19 00 01 E-mail: [email protected]
Tel. +46 (0)222-440 09, +46 (0)70-577 40 09 E-mail: [email protected]
Corp. reg. no. 556160-4108 SE-739 30 Skinnskatteberg, Sweden Tel. +46-(0)222-44 000 [email protected] www.systemair.com.
| Company | Parent | |||||||
|---|---|---|---|---|---|---|---|---|
| SEK m. | 2016/17 Nov–Jan 3 mths |
2015/16 Nov–Jan 3 mths |
2016/17 May–Jan 9 mths |
2015/16 May–Jan 9 mths |
2016/17 Feb–Jan TTM |
2015/16 May–Apr 12 mths |
2016/17 May–Jan 9 mths |
2015/16 May–Jan 9 mths |
| Net sales | 1,715.4 | 1,416.3 | 5,130.4 | 4,603.9 | 6,639.0 | 6,112.5 | 72.3 | 66.0 |
| Cost of goods sold | -1,137.0 | -938.6 | -3,355.4 | -3,015.7 | -4,350.1 | -4,010.4 | - | - |
| Gross profit | 578.4 | 477.7 | 1,775.0 | 1,588.2 | 2,288.9 | 2,102.1 | 72.3 | 66.0 |
| Other operating income | 39.5 | 17.4 | 85.7 | 56.2 | 109.8 | 80.3 | 2.3 | 0.7 |
| Selling expenses | -401.8 | -352.6 | -1,117.2 | -1,035.6 | -1,481.4 | -1,399.8 | -31.4 | -39.3 |
| Administration expenses | -95.0 | -87.4 | -264.0 | -249.7 | -351.4 | -337.1 | -60.5 | -47.2 |
| Other operating expenses | -16.0 | -25.0 | -88.2 | -77.3 | -112.3 | -101.4 | -42.3 | -18.4 |
| Operating profit | 105.1 | 30.1 | 391.3 | 281.8 | 453.6 | 344.1 | -59.6 | -38.2 |
| Net financial items | -29.9 | -4.7 | -24.4 | -26.3 | -34.9 | -36.8 | 235.7 | 529.2 |
| Profit after financial items | 75.2 | 25.4 | 366.9 | 255.5 | 418.7 | 307.3 | 176.1 | 491.0 |
| Appropriations | - | - | - | - | - | - | -3.5 | 29.2 |
| Tax on profit for the period | -24.4 | -12.4 | -101.4 | -76.0 | -125.5 | -100.1 | 9.1 | -0.9 |
| Profit for the period 1) | 50.8 | 13.0 | 265.5 | 179.5 | 293.2 | 207.2 | 181.7 | 519.3 |
| Earnings per share, SEK 2) | 0.98 | 0.25 | 5.11 | 3.45 | 5.64 | 3.98 | - | - |
| Profit for the period Other comprehensive income Items that have been, or may later be, transferred to profit for the year: |
50.8 | 13.0 | 265.5 | 179.5 | 293.2 | 207.2 | 181.7 | 519.3 |
|---|---|---|---|---|---|---|---|---|
| Translation differences | -96.9 | -47.7 | 42.8 | -91.7 | 48.6 | -85.9 | 1.8 | -1.5 |
| Impact of tax | 0.0 | 0.0 | -0.4 | 0.3 | -0.2 | 0.5 | -0.4 | 0.3 |
| Items that cannot be transferred to profit for the year: |
||||||||
| Revaluation of defined-benefit pensions, net after tax |
- | - | - | - | 8.2 | 8.2 | - | - |
| Other comprehensive income | -96.9 | -47.7 | 42.4 | -91.4 | 56.6 | -77.2 | 1.4 | -1.2 |
| Total comprehensive income for the period 1) |
-46.1 | -34.7 | 307.9 | 88.1 | 349.8 | 130.0 | 183.1 | 518.1 |
1) The profit for the period is attributable in its entirety to Parent Company shareholders.
2) There is no dilution effect, because the options programme in operation has been arranged by Färna Invest.
| Group | Parent Company | ||||
|---|---|---|---|---|---|
| SEK m. | 31/01/2017 | 31/01/2016 | 30/04/2016 | 31/01/2017 | 31/01/2016 |
| ASSETS | |||||
| Goodwill | 676.4 | 624.8 | 621.8 | 0.3 | 0.4 |
| Other intangible assets | 196.1 | 194.4 | 189.3 | 4.0 | 2.6 |
| Property, plant and equipment | 1,377.8 | 1,284.2 | 1,273.6 | 17.9 | 7.5 |
| Financial and other assets | 202.1 | 182.1 | 180.5 | 2,308.2 | 2,134.0 |
| Total non-current assets | 2,452.4 | 2,285.5 | 2,265.2 | 2,330.4 | 2,144.5 |
| Inventory | 1,132.3 | 1,049.4 | 1,105.1 | - | - |
| Current receivables | 1,283.8 | 1,204.9 | 1,255.2 | 1,120.0 | 1,131.2 |
| Cash and cash equivalents | 212.9 | 198.6 | 176.9 | - | - |
| Total current assets | 2,629.0 | 2,452.9 | 2,537.2 | 1,120.0 | 1,131.2 |
| TOTAL ASSETS | 5,081.4 | 4,738.4 | 4,802.4 | 3,450.4 | 3,275.7 |
| EQUITY AND LIABILITIES | |||||
| Equity | 2,312.1 | 2,066.3 | 2,108.2 | 1,928.6 | 1,840.5 |
| Untaxed reserves | - | - | - | 5.7 | 9.1 |
| Non-current liabilities, non-interest-bearing | 235.2 | 252.3 | 238.7 | - | - |
| Non-current liabilities, interest-bearing | 372.1 | 229.5 | 196.7 | 526.2 | 315.8 |
| Total non-current liabilities | 607.3 | 481.8 | 435.4 | 526.2 | 315.8 |
| Current liabilities, interest-bearing | 1,086.0 | 1,245.9 | 1,309.0 | 936.8 | 1,076.6 |
| Current liabilities, non-interest-bearing | 1,076.0 | 944.4 | 949.8 | 53.1 | 33.7 |
| Total current liabilities | 2,162.0 | 2,190.3 | 2,258.8 | 989.9 | 1,110.3 |
| TOTAL EQUITY AND LIABILITIES | 5,081.4 | 4,738.4 | 4,802.4 | 3,450.4 | 3,275.7 |
| 2016/17 | 2015/16 | 2016/17 | 2015/16 | 2015/16 | |
|---|---|---|---|---|---|
| Nov–Jan | Nov–Jan | May–Jan | May–Jan | May–Apr | |
| SEK m. | 3 mths | 3 mths | 9 mths | 9 mths | 12 mths |
| Operating profit | 105.1 | 30.1 | 391.3 | 281.8 | 344.1 |
| Adjustment for non-cash items | 1.5 | 48.3 | 114.1 | 117.9 | 143.8 |
| Financial items | -4.3 | -4.4 | -15.6 | -14.2 | -18.9 |
| Income tax paid | -23.5 | -53.7 | -94.3 | -99.6 | -138.8 |
| Cash flow from operating activities before changes in working capital |
78.8 | 20.3 | 395.5 | 285.9 | 330.2 |
| Changes in working capital | 129.8 | 18.1 | 94.5 | -77.0 | -161.3 |
| Cash flow from operating activities | 208.6 | 38.4 | 490.0 | 208.9 | 168.9 |
| Cash flow from investing activities | -87.4 | -45.9 | -246.2 | -171.9 | -212.1 |
| Cash flow from financing activities | -122.9 | -24.6 | -215.8 | 0.7 | 53.5 |
| Cash flow for the period | -1.7 | -32.1 | 28.0 | 37.7 | 10.3 |
| Cash and cash equivalents at start of period | 229.5 | 242.3 | 176.9 | 187.8 | 187.8 |
| Translation differences, cash and cash equivalents | -14.9 | -11.6 | 8.0 | -26.9 | -21.2 |
| Cash and cash equivalents at close of period | 212.9 | 198.6 | 212.9 | 198.6 | 176.9 |
| 2016/17 May–Jan |
2015/16 May–Jan |
2015/16 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 | 2,108.2 | 2,108.2 | 2,082.2 | 2,082.2 | 2,082.2 | 2,082.2 | |
| Dividend | -104.0 | -104.0 | -104.0 | -104.0 | -104.0 | -104.0 | |
| Comprehensive income | 307.9 | 307.9 | 88.1 | 88.1 | 130.0 | 130.0 | |
| Amount at end of period | 2,312.1 | 2,312.1 | 2,066.3 | 2,066.3 | 2,108.2 | 2,108.2 |
| 2016/17 | 2015/16 | 2016/17 | 2015/16 | 2015/16 | ||
|---|---|---|---|---|---|---|
| Nov–Jan | Nov–Jan | May–Jan | May–Jan | May–Apr | ||
| 3 mths | 3 mths | 9 mths | 9 mths | 12 mths | ||
| Net sales | SEK m | 1,715.4 | 1,416.3 | 5,130.4 | 4,603.9 | 6,112.5 |
| Growth | % | 21.1 | -1.1 | 11.4 | 5.1 | 3.9 |
| Operating profit | SEK m | 105.1 | 30.1 | 391.3 | 281.8 | 344.1 |
| Operating margin | % | 6.1 | 2.1 | 7.6 | 6.1 | 5.6 |
| Profit after net fin. items | SEK m | 75.2 | 25.4 | 366.9 | 255.5 | 307.3 |
| Profit margin | % | 4.4 | 1.8 | 7.2 | 5.6 | 5.0 |
| Return on capital employed | % | 11.9 | 9.3 | 11.9 | 9.3 | 10.2 |
| Return on equity | % | 12.9 | 9.9 | 12.9 | 9.9 | 9.8 |
| Equity/assets ratio | % | 45.5 | 43.6 | 45.5 | 43.6 | 43.9 |
| Investments | SEK m | 87.4 | 45.9 | 246.2 | 171.9 | 212.1 |
| Depreciation/Amortisation | SEK m | 47.8 | 43.3 | 137.7 | 131.9 | 178.2 |
| Per share ratios | ||||||
| Earnings per share | SEK | 0.98 | 0.25 | 5.11 | 3.45 | 3.98 |
| Equity per share | SEK | 44.46 | 39.74 | 44.46 | 39.74 | 40.54 |
| Operating cash flow per share | SEK | 4.01 | 0.74 | 9.42 | 4.02 | 3.25 |
| No. of shares at end of period | no. | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 |
| 2016/17 | 2015/16 | 2014/15 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1,715.4 | 1,769.2 | 1,645.9 | 1,508.7 | 1,416.3 | 1,624.4 | 1,563.1 | 1,502.4 | 1,431.6 |
| Growth | % | 21.1 | 8.9 | 5.3 | 0.4 | -1.1 | 4.5 | 12.1 | 19.4 | 10.3 |
| Gross margin | % | 33.7 | 35.2 | 34.8 | 34.1 | 33.7 | 35.4 | 34.3 | 33.5 | 33.6 |
| Operating profit | SEK m | 105.1 | 153.2 | 133.0 | 62.2 | 30.1 | 134.3 | 117.5 | 55.1 | 54.1 |
| Operating margin | % | 6.1 | 8.7 | 8.1 | 4.1 | 2.1 | 7.3 | 7.5 | 3.7 | 3.8 |
| Return on capital | ||||||||||
| employed | % | 11.9 | 10.5 | 10.1 | 10.2 | 9.3 | 10.5 | 12.4 | 12.5 | 19.8 |
| Return on equity | % | 12.9 | 11.6 | 10.6 | 9.8 | 9.9 | 11.4 | 13.0 | 15.1 | 27.4 |
| Equity/assets ratio | % | 45.5 | 43.9 | 45.0 | 43.9 | 43.6 | 42.8 | 44.9 | 44.4 | 46.4 |
| Basic equity per share | SEK | 44.46 | 45.35 | 43.85 | 40.54 | 39.74 | 40.40 | 41.61 | 40.04 | 39.64 |
| Basic earnings per share | SEK | 0.98 | 2.22 | 1.91 | 0.53 | 0.25 | 1.65 | 1.55 | 0.56 | 0.84 |
| Cash flow from operating | ||||||||||
| activities per share | SEK | 4.01 | 3.22 | 2.19 | -0.77 | 0.74 | 2.34 | 0.94 | -0.25 | 1.49 |
Systemair applies International Financial Reporting Standards (IFRS) as adopted by the EU. 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 purchase consideration for the shares in the 2VV Group in the Czech Republic and for the assets of TTL in Germany may be divided as follows:
Total historical cost, less transaction costs SEK 123.4 million
| Identifiable net assets | Total |
|---|---|
| Goodwill | 34.7 |
| Brands and customer relationships | 27.4 |
| Buildings and land | 22.5 |
| Machinery and equipment | 40.4 |
| Financial and other current assets | 1.6 |
| Inventory | 33.4 |
| Current receivables | 23.3 |
| Other current assets | 9.1 |
| Cash and cash equivalents | 2.6 |
| Non-interest-bearing liabilities (incl. deferred tax liability) | -5.7 |
| Interest-bearing liabilities | -31.8 |
| Other operating liabilities | -34.1 |
| 123.4 |
Transaction costs in the acquisition of subsidiaries totalled SEK 0.1 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 -119.0 million. A non-interest-bearing non-current liability relating to the withheld purchase consideration for the above-mentioned acquisitions totals SEK 7.0 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, synergy effects expected to arise after the acquisition and the company's estimated future earning capacity.
Systemair's financial instruments consist of derivatives, trade receivables, cash and cash equivalents, available-for-sale financial assets, trade payables, accrued supplier costs and interest-bearing liabilities. Liabilities to credit institutions carry variable interest rates or, in certain cases, rates fixed for a short period. Derivatives are measured at fair value through profit or loss on the basis of input data corresponding to level 2 as defined in IFRS 13. Available-for-sale 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 or liabilities net.
Starting from the 2016/17 financial year, Systemair is aggregating the geographical segments Europe and Rest of the World. The market segment Europe accounts for the majority of Systemair's business. Overall, 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, so the legal entities within the region have been merged. Systemair further judges that accounting for the merged segments Europe and Rest of World presents a clearer picture. The Parent Company is reported as a separate segment, Group-wide. The subsidiaries are aggregated on the basis of their legal domicile, and consolidation is done according to the same principles as for the Group as a whole.
| 2016/17 | 2015/16 | 2016/17 | 2015/16 | |
|---|---|---|---|---|
| Nov–Jan | Nov–Jan | May–Jan | May–Jan | |
| SEK m. | 3 mths | 3 mths | 9 mths | 9 mths |
| Europe | ||||
| Net sales, external | 1,374.1 | 1,158.5 | 4,104.5 | 3,779.6 |
| Net sales, intra-Group | 41.9 | 34.4 | 128.3 | 112.8 |
| Operating profit | 78.6 | 35.3 | 376.4 | 281.9 |
| Operating margin, % | 5.7 | 3.0 | 9.2 | 7.5 |
| Assets | 2,499.4 | 2,322.5 | 2,499.4 | 2,322.5 |
| Investments | 72.4 | 37.4 | 102.2 | 107.9 |
| Depreciation/Amortisation | 41.0 | 37.3 | 117.6 | 114.0 |
| Rest of World | ||||
| Net sales, external | 341.3 | 257.9 | 1,025.9 | 824.3 |
| Net sales, intra-Group | 1.5 | 5.7 | 9.9 | 19.1 |
| Operating profit | 27.3 | 7.7 | 74.2 | 38.0 |
| Operating margin, % | 8.0 | 3.0 | 7.2 | 4.6 |
| Assets | 790.5 | 662.7 | 790.5 | 662.7 |
| Investments | 4.2 | 2.6 | 11.1 | 24.0 |
| Depreciation/Amortisation | 5.9 | 5.3 | 17.3 | 15.6 |
| Group-wide | ||||
| Net sales, intra-Group | 25.1 | 20.8 | 72.3 | 65.9 |
| Operating profit | -0.8 | -12.9 | -59.3 | -38.1 |
| Assets | 3,456.3 | 3,281.4 | 3,456.3 | 3,281.4 |
| Investments | 10.8 | 5.9 | 132.9 | 40.0 |
| Depreciation/Amortisation | 0.9 | 0.7 | 2.8 | 2.3 |
| Eliminations | ||||
| Net sales, intra-Group | -43.5 | -40.1 | -138.2 | -131.8 |
| Assets | -1,664.8 | -1,528.2 | -1,664.8 | -1,528.2 |
| Total | ||||
| Net sales, external | 1,715.4 | 1,416.4 | 5,130.4 | 4,603.9 |
| Operating profit | 105.1 | 30.1 | 391.3 | 281.8 |
| Operating margin, % | 6.1 | 2.1 | 7.6 | 6.1 |
| Assets | 5,081.4 | 4,738.4 | 5,081.4 | 4,738.4 |
| Investments | 87.4 | 45.9 | 246.2 | 171.9 |
| Depreciation/Amortisation | 47.8 | 43.3 | 137.7 | 131.9 |
In its interim report, Systemair presents key ratios 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, and 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 key ratios in the same way, these are not always comparable. As a result, they should not be regarded as substitutes for key ratios 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 divided by net sales.
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 prohibits 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.