Earnings Release • Aug 25, 2016
Earnings Release
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EBIT Q1
Work has begun on the restructuring programme. The cost of the programme will amount to in all approximately SEK 45 million, with estimated annual cost savings of SEK 45 million and full impact realised within about two years.
| 2016/17 | 2015/16 | 2015/16 | |
|---|---|---|---|
| May–Jul | May–Jul | May-Apr | |
| 3 mths | 3 mths | 12 mths | |
| Net sales, SEK m. | 1,645.9 | 1,563.1 | 6,112.5 |
| Growth, % | 5.3 | 12.1 | 3.9 |
| Operating profit, SEK m. | 133.0 | 117.5 | 344.1 |
| Operating margin, % | 8.1 | 7.5 | 5.6 |
| Profit after tax, SEK million | 99.5 | 80.7 | 207.2 |
| Earnings per share, SEK | 1.91 | 1.55 | 3.98 |
| Operating cash flow per share, SEK | 2.19 | 0.94 | 3.25 |
In the first quarter, organic growth topped over 7 percent, while profit improved, compared with a year earlier. Work on the restructuring programme, launched at the end of the previous quarter, has begun. The annual cost saving from the programme as a whole is calculated at SEK 45 million, with full impact emerging inside two years. At the same time, actions to increase profit are under way in production, purchasing, sales and logistics. The goal is clear: Systemair will return to an operating margin of more than 10 percent, while maintaining growth.
The market as a whole performed positively in the first quarter. The Nordic market remains buoyant, as do several markets in Western Europe. The USA and Middle East showed strong growth. In Eastern Europe, growth remained weak, above all as a result of developments in the Russian market.
The restructuring programme has begun in the parts of the Group and negotiations have started with the trade unions. The programme is focused on the air conditioning segment, acquired in recent years, and selected loss-making units in various countries. The programme consists of capacity adjustments and review of product ranges. The cost of the programme will amount to in all approximately SEK 45 million, with estimated annual cost savings of SEK 45 million and full impact realised within two years. The cost in the first quarter was just SEK 1 million, due to that negotiations with the trade unions are ongoing.
Quite recently, we concluded the acquisition of the Czech company 2VV, a leading manufacturer of industrial and residential air handling units, as well as air curtains. The acquisition gives us a strong position in the region and opportunities for product and manufacturing synergies within our units in Europe.
Our largest current investment is in a new factory in Turkey that will give us a larger production facility to a lower cost. Despite the unsettled political situation in Turkey, we nevertheless regard the investment as strategically important. In Skinnskatteberg a major investment in machinery, intended to improve productivity in sheet metal forming, is in progress.
We are continuing to receive large and exciting orders, especially from the Middle East region. Growth is buoyant in several of our markets, although we would have liked to see stronger growth in parts of Western Europe and recovery in Russia. The political situation gives rise to concern in several markets. We will probably have to get used to fluctuating rates of growth and sharp ups and downs in the market. In particular, we are closely monitoring developments in Turkey and the UK.
One of Systemair's strengths is our global presence. On that basis, we can utilise our resources and our market presence to identify and develop the applications and opportunities that emerge. 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 first quarter of 2016/17 totalled SEK 1,645.9 million (1,563.1), up 5.3 percent from the same period last year.
Adjusted for both foreign exchange effects and acquisitions, net sales grew 7.4 percent. Growth in acquired operations was 1.0 percent, while foreign exchange effects reduced sales by 3.1 percent during the period.
During the first quarter, sales in the Nordic region were 1 percent higher than in the same period last year. The Danish and Finnish markets performed strongly during the quarter. In Norwegian kroner, the Norwegian market also showed good growth. Adjusted for foreign exchange effects and acquisitions, sales rose by 4 percent.
Sales in the West European market grew 8 percent during the quarter, compared with the corresponding period in the preceding year. Foreign exchange effects and acquisitions had marginal impact on sales. The market in Western Europe remains fragmented. Several markets in the region performed well during the period, including Germany, the UK and Italy, while sales in France and the Netherlands declined.
Sales in Eastern Europe and the CIS fell 19 percent during the quarter. Adjusted for the effects of foreign exchange and acquisitions, sales declined 14 percent. In Russia, decreased by 38 percent during the period, stated in Swedish kronor; of which the rouble accounted for 13 percent of the decline. During the period, the Russian market accounted for 5 percent of Systemair's total sales, compared with 8 percent in the previous year.
Sales in the North and South America region during the quarter were 14 percent higher than in the same period in the preceding year. The American market grew strongly during the quarter, with one major project in particular – for classroom air handling units – being behind the increase. Adjusted for foreign exchange effects and acquisitions, sales rose by 13 percent.
Sales in Other markets rose by 34 percent compared with the same period in the preceding year. Adjusted for foreign exchange effects and acquisitions, sales rose by 41 percent. Sales in the region around Turkey and the United Arab Emirates above all increased sharply during the quarter.
| 2016/17 | 2015/16 | |||
|---|---|---|---|---|
| May–Jul | May–Jul | Sales – | Of which, | |
| 3 mths | 3 mths | change | organic | |
| Nordic Region | 328.5 | 325.5 | 1% | 4% |
| Western Europe | 675.8 | 626.6 | 8% | 8% |
| Eastern Europe & CIS | 226.6 | 280.0 | -19% | -14% |
| North and South America | 168.6 | 147.8 | 14% | 13% |
| Other markets | 246.4 | 183.2 | 34% | 41% |
| Total | 1,645.9 | 1,563.1 | 5% | 7% |
(Sales figures are based on geographical domicile of customers.)
Net sales
Systemair AB Interim report Q1 2016/17 3(13)
The gross profit for the first quarter amounted to SEK 573.2 million (536.2), an increase of 6.9 percent over the same period in the preceding year. The gross margin rose to 34.8 percent (34.3).
Operating profit for the first quarter amounted to SEK 133.0 million (117.5), an increase of 13.3 percent over the same period last year. The operating margin was 8.1 percent (7.5).
Selling and administration expenses for the quarter totalled SEK 425.2 million (414.1), a rise of SEK 11.1 million. Costs arising from company acquisitions accounted for SEK 10.3 million of costs in the quarter. As a result, selling and administration expenses for comparable units rose by SEK 0.8 million.
Selling expenses were charged with SEK 2.9 million (3.3) for anticipated and confirmed impairment losses on trade receivables. No acquisition-related costs were charged to profit for the quarter (-). Restructuring costs relating to the SEK 45 million programme launched in the preceding quarter totalled SEK 1 million in the period.
Net financial items for the first quarter totalled SEK 2.3 million (-6.0). The effects of foreign exchange on long-term receivables, loans and bank balances was SEK
8.2 million (-1.2) net. Interest expense for the quarter totalled SEK -5.9 million (-5.8).
Estimated tax for the quarter totalled SEK -35.8 million (-30.8), corresponding to an effective tax rate of 26.4 percent based on profit after net financial items.
Investments for the quarter, excluding divestments, totalled SEK 27.7 million (44.8), including SEK 24.7 million (35.1) in new construction and machinery. Investments consisted primarily of capacity and replacement investments at a number of factories. Acquisitions and formerly withheld additional purchase considerations totalled SEK 0.3 million (1.4) for the quarter. Depreciation of non-current assets amounted to SEK 44.0 million (44.0).
The average number of employees in the Group was 4,603 (4,432). At the end of the period, Systemair had 4,834 employees (4,622), 212 more than one year previous. New employees were recruited chiefly at Systemair in Turkey (50), Germany (46) and Sweden (25). Personnel cutbacks were made at Menerga in Germany (-44), Russia (-28) and India (-14). Companies acquired have added 128 employees, of which 78 at Traydus in Brazil, 15 at Menerga in Poland, 12 at Menerga in Belgium, 16 at Alitis in Belarus and 7 at Kolektor in Slovenia.
Cash flow from operating activities before changes in working capital totalled SEK 150.1 million (130.2) for the quarter. Changes in working capital, mainly consisting of an increase in trade receivables, had negative impact of SEK -36.0 million (-81.5) on cash flow. The cash flow
from financing operations totalled SEK -37.6 million (28.6) net. At the end of the period, the Group's net indebtedness was SEK 1,345.3 million (1,295.9). The consolidated equity/assets ratio was 45.0 percent (44.9) at the end of the period.
In August 2016, Systemair acquired the Czech corporate group 2VV, a leading manufacturer of air handling units for industrial and residential use and air curtains for commercial applications. The company, which has 189 employees, is based in Pardubice, 120 km east of Prague. The acquisition opens up opportunities for Systemair to benefit from product and manufacturing synergies in Europe. In 2015, the company reported sales of around EUR 18 million. The former owners will continue to work within the business.
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 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 totalled SEK 23.9 million. Operating profit was negative, at SEK -30.6 million. The company had 43 employees. 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 4,800 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 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 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 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 1.00 p.m. on 25 August 2016.
This interim report has not been reviewed by the Company's auditor.
Skinnskatteberg, 25 August 2016 Systemair AB (publ)
Board of Directors
Interim report Q1 2016/17 1.00 p.m., 25 August 2016
Interim report Q2 2016/17 8.00 a.m., 24 November 2016
Interim report Q3 2016/17 8.00 a.m., 23 February 2017
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
President and CEO Roland Kasper Telephone: +46 (0)222-440 13, +46 (0)730 94 40 13 E-mail: [email protected]
Chairman of the Board Gerald Engström
Telephone: +46 (0)222-440 01, +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]
Co. Reg. No. 556160-4108 SE-739 30 Skinnskatteberg, Sweden Tel. +46 (0)222-440 00 [email protected] www.systemair.com.
Systemair has received an order for production of air handling units, of a value of approx. EUR 6 million, from MAC Hamburg for two new ships. Systemair in the Netherlands will deliver 88 air handling units made of stainless steel with special components and integrated controls for each ship.
Systemair AB Interim report Q1 2016/17 6(13)
| Group | Parent Company | |||||
|---|---|---|---|---|---|---|
| SEK m. | 2016/17 May–Jul 3 mths |
2015/16 May–Jul 3 mths |
2015/16 Aug–Jul trailing 12 |
2015/16 May-Apr 12 mths |
2016/17 May–Jul 3 mths |
2015/16 May–Jul 3 mths |
| Net sales | 1,645.9 | 1,563.1 | 6,195.3 | 6,112.5 | 23.9 | 23.2 |
| Cost of goods sold | -1,072.7 | -1,026.9 | -4,056.2 | -4,010.4 | - | - |
| Gross profit | 573.2 | 536.2 | 2,139.1 | 2,102.1 | 23.9 | 23.2 |
| Other operating income | 21.4 | 18.1 | 69.8 | 80.3 | 1.4 | 0.4 |
| Selling expenses | -342.9 | -334.7 | -1,407.9 | -1,399.8 | -9.9 | -14.4 |
| Administration expenses | -82.3 | -79.4 | -340.0 | -337.1 | -21.8 | -14.8 |
| Other operating expenses | -36.4 | -22.7 | -101.3 | -101.4 | -24.2 | -7.7 |
| Operating profit | 133.0 | 117.5 | 359.7 | 344.1 | -30.6 | -13.3 |
| Net financial items | 2.3 | -6.0 | -28.6 | -36.8 | 217.4 | 555.6 |
| Profit after financial items | 135.3 | 111.5 | 331.1 | 307.3 | 186.8 | 542.3 |
| Appropriations | - | - | - | - | -1.9 | 16.0 |
| Tax on profit for the period | -35.8 | -30.8 | -105.2 | -100.1 | 6.1 | -2.4 |
| Profit for the period 1 | 99.5 | 80.7 | 225.9 | 207.2 | 191.0 | 555.9 |
| Earnings per share, SEK 2 | 1.91 | 1.55 | 4.35 | 3.98 | - | - |
| Profit for the period Other comprehensive income Items that have been, or may later be, transferred to profit for the year: |
99.5 | 80.7 | 225.9 | 207.2 | 191.0 | 555.9 |
|---|---|---|---|---|---|---|
| Translation difference Impact of tax |
72.9 -0.2 |
0.9 -0.1 |
-13.7 0.3 |
-85.9 0.5 |
0.9 -0.2 |
-0.1 0.0 |
| 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 | 72.7 | 0.8 | -5.2 | -77.2 | 0.7 | -0.1 |
| Total comprehensive income for the period1 | 172.2 | 81.5 | 220.7 | 130.0 | 191.7 | 555.8 |
1) Attributable in entirety to Parent Company shareholders.
2) No dilution effect arises since the options programme in operation has been arranged by Färna Invest.
| Group | Parent Company | ||||
|---|---|---|---|---|---|
| SEK m. | 31/07/2016 | 31/07/2015 | 30/04/2016 | 31/07/2016 | 31/07/2015 |
| ASSETS | |||||
| Goodwill | 645.7 | 619.7 | 621.8 | 0.4 | 0.5 |
| Other intangible assets | 188.4 | 221.8 | 189.3 | 3.7 | 3.9 |
| Property, plant and equipment | 1,306.5 | 1,291.6 | 1,273.6 | 11.1 | 3.4 |
| Financial and other non-current assets | 174.7 | 179.1 | 180.5 | 2,178.7 | 2,073.3 |
| Total non-current assets | 2,315.3 | 2,312.2 | 2,265.2 | 2,193.9 | 2,081.1 |
| Inventory | 1,132.8 | 1,030.4 | 1,105.1 | - | - |
| Current receivables | 1,387.1 | 1,256.8 | 1,255.2 | 1,327.7 | 1,247.5 |
| Cash and cash equivalents | 236.6 | 214.6 | 176.9 | - | - |
| Total current assets | 2,756.5 | 2,501.8 | 2,537.2 | 1,327.7 | 1,247.5 |
| TOTAL ASSETS | 5,071.8 | 4,814.0 | 4,802.4 | 3,521.6 | 3,328.6 |
| EQUITY AND LIABILITIES | |||||
| Equity | 2,280.4 | 2,163.7 | 2,108.2 | 2,041.2 | 1,982.2 |
| Untaxed reserves | - | - | - | 7.6 | 22.3 |
| Non-current liabilities, non-interest-bearing | 222.0 | 242.1 | 238.7 | - | - |
| Non-current liabilities, interest-bearing | 268.3 | 280.6 | 196.7 | 312.7 | 287.1 |
| Total non-current liabilities | 490.3 | 522.7 | 435.4 | 312.7 | 287.1 |
| Current liabilities, interest-bearing | 1,258.1 | 1,154.5 | 1,309.0 | 1,104.5 | 990.0 |
| Current liabilities, non-interest-bearing | 1,043.0 | 973.1 | 949.8 | 55.6 | 47.0 |
| Total current liabilities | 2,301.1 | 2,127.6 | 2,258.8 | 1,160.1 | 1,037.0 |
| TOTAL EQUITY AND LIABILITIES | 5,071.8 | 4,814.0 | 4,802.4 | 3,521.6 | 3,328.6 |
| 2016/17 | 2015/16 | 2015/16 | |
|---|---|---|---|
| May–Jul | May–Jul | May-Apr | |
| SEK m. | 3 mths | 3 mths | 12 mths |
| Operating profit | 133.0 | 117.5 | 344.1 |
| Adjustment for non-cash items | 46.3 | 39.5 | 143.8 |
| Financial items | -5.6 | -4.7 | -18.9 |
| Income tax paid | -23.6 | -22.1 | -138.8 |
| Cash flow from operating activities before changes in working capital | 150.1 | 130.2 | 330.2 |
| Changes in working capital | -36.0 | -81.5 | -161.3 |
| Cash flow from operating activities | 114.1 | 48.7 | 168.9 |
| Cash flow from investing activities | -26.2 | -43.8 | -212.1 |
| Cash flow from financing activities | -37.6 | 28.6 | 53.5 |
| Cash flow for the period | 50.3 | 33.5 | 10.3 |
| Cash and cash equivalents at start of period | 176.9 | 187.8 | 187.8 |
| Translation differences, cash and cash equivalents | 9.4 | -6.7 | -21.2 |
| Cash and cash equivalents at close of period | 236.6 | 214.6 | 176.9 |
| 2016/17 2015/16 May–Jul May–Jul |
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 |
| Comprehensive income | 172.2 | 172.2 | 81.5 | 81.5 | 130.0 | 130.0 |
| Amount at end of period | 2,280.4 | 2,280.4 | 2,163.7 | 2,163.7 | 2,108.2 | 2,108.2 |
| 2016/17 | 2015/16 | |
|---|---|---|
| May–Jul | May–Jul | |
| SEK m. | 3 mths | 3 mths |
| Europe | ||
| Net sales, external | 1,293.8 | 1,265.2 |
| Net sales, intra-Group | 50.4 | 39.3 |
| Operating profit | 133.5 | 108.6 |
| Operating margin, % | 10.3 | 8.6 |
| Assets | 2,453.2 | 2,343.1 |
| Investments | 16.7 | 32.0 |
| Depreciation/Amortisation | 37.4 | 38.1 |
| Rest of World | ||
| Net sales, external | 352.1 | 297.9 |
| Net sales, intra-Group | 5.3 | 7.2 |
| Operating profit | 30.1 | 22.2 |
| Operating margin, % | 8.5 | 7.5 |
| Assets | 801.9 | 723.0 |
| Investments | 4.4 | 10.4 |
| Depreciation/Amortisation | 5.7 | 5.2 |
| Group-wide | ||
| Net sales, intra-Group | 23.9 | 23.2 |
| Operating profit | -30.6 | -13.3 |
| Assets | 3,527.3 | 3,334.2 |
| Investments | 5.1 | 1.4 |
| Depreciation/Amortisation | 0.9 | 0.7 |
| Eliminations | ||
| Net sales, intra-Group | -79.6 | -69.7 |
| Assets | -1,710.6 | -1,586.3 |
| Total | ||
| Net sales, external | 1,645.9 | 1,563.1 |
| Operating profit | 133.0 | 117.5 |
| Operating margin, % | 8.1 | 7.5 |
| Assets | 5,071.8 | 4,814.0 |
| Investments | 26.2 | 43.8 |
| Depreciation/Amortisation | 44.0 | 44.0 |
| 2016/17 | 2015/16 | 2015/16 | ||
|---|---|---|---|---|
| May–Jul | May–Jul | May-Apr | ||
| 3 mths | 3 mths | 12 mths | ||
| Net sales | SEK m. | 1,645.9 | 1,563.1 | 6,112.5 |
| Growth | % | 5.3 | 12.1 | 3.9 |
| Operating profit | SEK m. | 133.0 | 117.5 | 344.1 |
| Operating margin | % | 8.1 | 7.5 | 5.6 |
| Profit after net fin. items | SEK m. | 135.3 | 111.5 | 307.3 |
| Profit margin | % | 8.2 | 7.1 | 5.0 |
| Return on capital employed | % | 10.1 | 12.4 | 10.2 |
| Return on equity | % | 10.6 | 13.0 | 9.8 |
| Equity/assets ratio | % | 45.0 | 44.9 | 43.9 |
| Investments | SEK m. | 26.2 | 43.8 | 212.1 |
| Depreciation/Amortisation | SEK m. | 44.0 | 44.0 | 178.2 |
| Per share ratios | ||||
| Earnings per share | SEK | 1.91 | 1.55 | 3.98 |
| Equity per share | SEK | 43.85 | 41.61 | 40.54 |
| Operating cash flow per share | SEK | 2.19 | 0.94 | 3.25 |
| No. of shares at end of period | No. | 52,000,000 | 52,000,000 | 52,000,000 |
| 2016/17 | 2015/16 | 2014/15 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| May–Jul | Feb–Apr | Nov–Jan | Aug–Oct | May–Jul | Feb–Apr | Nov–Jan | Aug–Oct | May–Jul | ||
| Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Net sales | SEK m. | 1,645.9 | 1,508.7 | 1,416.3 | 1,624.4 | 1,563.1 | 1,502.4 | 1,431.6 | 1,554.5 | 1,393.8 |
| Growth | % | 5.3 | 0.4 | -1.1 | 4.5 | 12.1 | 19.4 | 10.3 | 9.9 | 5.2 |
| Gross margin | % | 34.8 | 34.1 | 33.7 | 35.4 | 34.3 | 33.5 | 33.6 | 36.6 | 33.8 |
| Operating profit | SEK m. | 133.0 | 62.2 | 30.1 | 134.3 | 117.5 | 55.1 | 54.1 | 156.3 | 111.4 |
| Operating margin | % | 8.1 | 4.1 | 2.1 | 7.3 | 7.5 | 3.7 | 3.8 | 10.1 | 8.0 |
| Return on capital | ||||||||||
| employed | % | 10.1 | 10.2 | 9.3 | 10.5 | 12.4 | 12.5 | 19.8 | 18.9 | 18.1 |
| Return on equity | % | 10.6 | 9.8 | 9.9 | 11.4 | 13.0 | 15.1 | 27.4 | 27.2 | 26.8 |
| Equity/assets ratio | % | 45.0 | 43.9 | 43.6 | 42.8 | 44.9 | 44.4 | 46.4 | 44.1 | 48.3 |
| Basic equity per share | SEK | 43.85 | 40.54 | 39.74 | 40.40 | 41.61 | 40.04 | 39.64 | 38.66 | 39.37 |
| Basic earnings per share | SEK | 1.91 | 0.53 | 0.25 | 1.65 | 1.55 | 0.56 | 0.84 | 2.24 | 2.31 |
| Cash flow from operating activities per share |
SEK | 2.19 | -0.77 | 0.74 | 2.34 | 0.94 | -0.25 | 1.49 | 1.71 | 1.69 |
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 policies and methods of calculation applied for the Group and Parent Company accord with those used in preparing the most recent Annual Report.
The total effect on cash flow from payment of a formerly withheld additional purchase consideration for prior years' acquisitions amounted to SEK 0.3 million. No acquisitions took place during the interim report period.
Transaction costs in the acquisition of subsidiaries totalled SEK 0 million.
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.
From the start of the 2016/17 financial year, Systemair is aggregating on the basis of the geographical segments Europe and Rest of the World. The market segment Europe accounts for the major share of Systemair's business. In all, 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 merged. 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 to be merged on the basis of their legal domicile and consolidation will take place according to the same principles as for the Group as a whole.
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, 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 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?
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