Quarterly Report • Nov 26, 2015
Quarterly Report
Open in ViewerOpens in native device viewer
Net sales Q2
| 2015 | 2014 | 2015 | 2014 | |
|---|---|---|---|---|
| Aug–Oct | Aug–Oct | May–Oct | May–Oct | |
| 3 mths | 3 mths | 6 mths | 6 mths | |
| Net sales, SEK m | 1,624.4 | 1,554.5 | 3,187.5 | 2,948.3 |
| Growth, % | 4.5 | 9.9 | 8.1 | 7.6 |
| Operating profit, SEK m | 134.3 | 156.3 | 251.7 | 267.7 |
| Operating margin, % | 8.3 | 10.1 | 7.9 | 9.1 |
| Profit after tax, SEK m | 85.7 | 116.6 | 166.5 | 236.8 |
| Earnings per share, SEK | 1.65 | 2.24 | 3.20 | 4.55 |
| Operating cash flow per share, SEK | 2.34 | 1.73 | 3.28 | 3.40 |
This was my first quarter as CEO of Systemair. The second quarter is normally our strongest period, but a relatively weak market in several countries resulted in growth of 5 percent and lower profitability. Nevertheless, we can for the twenty-third consecutive quarter report organic growth, on this occasion of 3.6 percent. The operating margin was 8.3 percent, negatively affected by declining volumes in Russia. We are engaged in a number of activities and restructuring measures to boost earnings.
The market as a whole turned in a fragmented performance during the second quarter. The Nordic market remains stable, with growth in most countries in the region. In Western Europe, we noted rising volumes in several countries but our volumes declined in France. During the period, sales declined by 40 percent in Russia, and now represent 7 percent of the Group's total sales. In the Eastern Europe region we are still seeing an increase in several other countries, which is partly offsetting the losses in Russia. Asia is still demonstrating continued positive growth and many exciting projects are under way.
During the quarter, we acquired four companies, which will create opportunities for continued growth and enable us to expand our market presence. In Belarus, Alitis has built a strong platform for further expansion there. Menerga BV in Belgium complements our existing organisation with resources, know-how and customers. Systemair-Traydus, Brazil, brings local production of air handling units in South America, creating the potential for developing collaboration with our existing units in Peru and Chile. The acquisition of Kolektor, a maker of ventilation units in Slovenia, creates a strong platform for us as a supplier of ventilation units in the Balkans.
In Slovakia, we have concluded substantial investments at our factory for air distribution products. We have doubled production space and invested in modern machinery. In Norway and Denmark, we have expanded our ventilation unit factories and in France and the USA, we have modernised our machine parks.
Despite economic and political uncertainty, we can report organic growth for the twenty-third consecutive quarter. One of Systemair's strengths is our global presence. This enables us to utilise our resources and our market presence to identify and exploit the applications and opportunities that emerge. We have made many acquisitions in recent years, and intend to continue doing so. Certain consolidation and restructuring measures will be implemented in order to achieve our profitability goals. We will also continue to invest in production equipment, product development and marketing.
I look forward to contributing to Systemair's ongoing development, improved profitability and continued growth.
Roland Kasper President and CEO
Group sales for the second quarter of the 2015/16 financial year totalled SEK 1,624.4 million (1,554.5), an increase of 4.5 percent from the same period in the preceding year.
Adjusted for both foreign exchange effects and acquisitions, net sales grew by 3.6 percent. This is the twenty-third consecutive quarter of organic growth, despite a weak market. Growth in acquired operations was 1.6 percent, while foreign exchange effects reduced sales by 0.7 percent during the period.
During the second quarter, sales in the Nordic region were up 3 percent on the same period in the preceding year. Sales in the Norwegian and Finnish markets in particular are growing strongly. In the Danish market, sales declined. Adjusted for foreign exchange effects and acquisitions, sales increased by 5 percent in the region.
During the quarter, sales in the West European market were increased by 3 percent than in the corresponding period in the preceding year. Adjusted for the effects of foreign exchange and acquisitions, sales declined 3 percent. The market in Western Europe showed a fragmented picture. Several markets in the region performed well during the period, including Belgium, the Netherlands, Switzerland and the United Kingdom, while sales in France, Portugal and Spain declined.
Sales in Eastern Europe and the CIS fell by 16 percent during the quarter. Adjusted for the effects of foreign exchange and acquisitions, sales declined 5 percent. In Russia, sales fell back by 40 percent during the period. The Russian market accounted for 7 percent of Systemair's total sales in the first half-year, compared with 11 percent in the previous year.
Sales in North and South America during the quarter were 13 percent higher than in the same period in the preceding year. Both the American and the Canadian market performed weakly during the quarter, in the local currencies. Adjusted for foreign exchange effects and acquisitions, sales increased by 2 percent.
| 2015 Aug–Oct 3 mths |
2014 Aug–Oct 3 mths |
Sales – change |
Of which organic |
2015 May–Oct 6 mths |
2014 May–Oct 6 mths |
Sales – change |
Of which, organic |
|
|---|---|---|---|---|---|---|---|---|
| Nordic region | 397.0 | 385.7 | 3% | 5% | 722.5 | 666.4 | 8% | 8% |
| Western Europe | 622.1 | 606.4 | 3% | -3% | 1,248.7 | 1,131.2 | 10% | 0% |
| Eastern Europe & the CIS | 251.0 | 298.7 | -16% | -5% | 531.0 | 628.5 | -16% | -7% |
| North and South America | 122.8 | 109.0 | 13% | 2% | 270.5 | 218.5 | 24% | 7% |
| Other markets | 231.5 | 154.7 | 50% | 46% | 414.8 | 303.7 | 37% | 29% |
| Total | 1,624.4 | 1,554.5 | 5% | 4% | 3,187.5 | 2,948.3 | 8% | 4% |
1) Effective Q2 2015/16, the North and South America regions have been merged. Figures shown for comparison have been adjusted.
Sales in Other markets rose by 50 percent compared with the same period in the preceding year. Adjusted for foreign exchange effects and acquisitions, sales increased by 46 percent. Sales in India and Dubai in particular rose sharply during the quarter.
The gross profit for the second quarter was SEK 574.3 million (568.7), an increase of 1.0 percent over the same period in the preceding year. The gross margin fell to 35.4 percent (36.6) as a result mainly of acquisitions of companies with lower margins, but also lower volumes from the Skinnskatteberg and other factories.
Operating profit for the second quarter totalled SEK 134.3 million (156.3), down 14.1 percent on the same period in the preceding year. Systemair's operating margin was 8.3 percent (10.1).
Selling and administration expenses for the quarter totalled SEK 431.3 million (402.6), a rise of SEK 28.7 million, whereof acquired companies accounted for SEK 18.9 million of the increase for the quarter.
Selling expenses were charged with SEK 3.7 million (4.5) for anticipated and confirmed impairment losses on trade receivables. During the quarter, acquisition-related costs totalled SEK 0.6 million (0.1).
Net financial items ended the second quarter at SEK - 15.6 million (0.3). The effect of foreign exchange on longterm receivables, loans and bank balances was SEK -10.4 million (5.4) net. Interest expenses for the quarter totalled SEK -5.5 million (-5.1).
The tax expense for the quarter is estimated at SEK -33.0 million (-40.0), corresponding to an effective tax rate of 27.8 percent based on profit after net financial items.
Operating margin per quarter, relative to the same period in previous years
In September, Systemair acquired 75 percent of the shares in Brazilian company Traydus, a leading manufacturer of customised air handling units and fan convectors in Brazil. The company has 75 employees and is based in the outskirts of Sao Paulo. Traydus focuses on lean-energy solutions and is positioned in the highertechnology segment of Brazils ventilation industry. The acquisitions opens up opportunities for introducing a wider range of Systemair products from other factories in the Group. Systemair-Traydus and our existing companies in Chile and Peru will provide excellent opportunities for competing successfully for projects throughout South America. The acquisition initially comprises 75 percent of the company, with a binding undertaking to acquire the remaining 25 percent of the shares within a period of six years. As a result, Systemair will consolidate 100 percent of the company as of the beginning of September.
In October, the Company took over Alitis, Systemair's representative in Belarus and Kaliningrad. Alitis, which markets and sells Systemair's products, posted sales of EUR 5.5 in 2014. The total number of employees is 15, mostly based in Minsk.
In October, Systemair acquired the manufacturing of air handling units of Kolektor Koling d.o.o., Slovenia. It is estimated that the operation manufacturing air handling units that Systemair is taking over has sales of EUR 3 million. Systemair is taking over 7 employees and within six months will transfer manufacturing to Systemair's existing factory in Maribor.
In November, Systemair completed its acquisition of Menerga NV, a reseller of Menerga's products in Belgium. The company, which sells and services Menerga's products, reported sales of EUR 4.2 million in 2014. The company is located in Aarschot, north of Brussels. It has 13 employees. Menerga NV will continue to be managed as a separate company, with its current management and staff. It is a well-known, well-established company in the Belgian ventilation market, and through the acquisition, Systemair is strengthening its position on the market.
Investments for the quarter, excluding divestments, totalled SEK 84.1 million (64.0), including SEK 52.7 million (45.8) in new construction and machinery. Investments consisted primarily of completion of construction plus machinery purchases in Slovakia, as well as capacity and replacement investments at several factories. Acquisitions and formerly withheld additional purchase considerations totalled SEK 32.7 million (18.5) for the quarter. Depreciation of non-current assets amounted to SEK 44.6 million (41.8).
The average number of employees in the Group was 4,559 (4,257).
At the end of the period, Systemair had 4,699 employees (4,538), 161 more than for the previous year. New employees were recruited chiefly in Germany (45). Personnel cutbacks were made in Russia, Spain and Sweden. Companies acquired have added 138 employees, of which 74 come from Traydus in Brazil, 15 from Menerga in Norway, 14 from Lautner in Germany, 13 from Menerga, Belgium, 15 from Alitis in Belarus and 7 from Kolektor.
Cash flow from operating activities before changes in working capital totalled SEK 135.4 million (200.1) for the quarter. Changes in working capital, mainly consisting of an increase in trade accounts receivable, had an impact of SEK -13.6 million (-110.0) on cash flow. The cash flow from financing operations totalled SEK -3.3 million net (- 14.6). At the end of the period, the Group's net
indebtedness was SEK 1,345.7 million (1,150.1). The consolidated equity/assets ratio was 42.8 percent (44.1) at the end of the period.
On 1 May the business in the Parent Company Systemair AB was divided into two companies. The listed company Systemair AB has been streamlined into a holding company with group functions. The newly formed company Systemair Sverige AB is engaged in production and sales operations in Sweden.
In June 2015 Roland Kasper was appointed new CEO of Systemair AB, taking up his post at the AGM on 27 August 2015. Roland Kasper started at Systemair in 2007 and has been a member of group management since 2011. Gerald Engström was elected as Chairman of the Board at the Annual General Meeting.
In October, Mats Lund, Production Manager and Vice President Marketing for Asia, and member of Systemair's Group Management, informed the Company that he was to leave Systemair's employment on 31 December 2015. Håkan Lenjesson has been appointed as the new Vice President Marketing for Asia and will also serve as a member of Group Management. Håkan, 59, has been working for Systemair since December 2012 as Business Developer and Vice President Marketing for the Middle East. Håkan has a broad range of experience in the ventilation industry, having formerly worked at Munters in Saudi Arabia, Thailand and Australia. Following these changes, Group Management consists of Roland Kasper, Anders Ulff, Fredrik Andersson, Kurt Maurer, Olle Glassel and Håkan Lenjesson.
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 2014/15 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 2014/15 financial year. During the period, no change worthy of mention occurred in the scale of these transactions.
Parent Company net sales for the quarter totalled SEK 21.9 million (272.7). Operating profit totalled SEK -11.9 million (15.3). The company had 41 employees. The core business of the Parent Company following the division of the Swedish operation is that of intra-group services.
The interim report for the third quarter of 2015/16 will be published at 8.00 a.m. on 3 March 2016.
The report for the fourth quarter and full year 2015/16 will be published at 8.00 a.m. on 9 June 2016.
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 straight way", which has been developed from a product concept into a business philosophy. Our product range has grown strongly to span a broad range of fans, air handling units, products for air distribution, air curtains, heating products and refrigeration equipment.
Operating from the core values of simplicity and reliability, our business concept is to develop, manufacture and market high-quality ventilation products. Based on this business concept and with our customers in focus, we are to be seen as a reliable company, focusing 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 8.00 a.m. on 26 November 2015.
The undersigned affirm that this six-month report provides a true and fair survey of the Parent Company's and the
Group's operations, financial position and profits, as well as describing the material risks and uncertainty facing the Parent Company and the companies included in the Group.
For further information, please contact: President and CEO Roland Kasper, tel. +46 222-440 13, +46 730-94 40 13, [email protected] Chairman of the Board Gerald Engström tel. +46 222-440 01, +46 705-19 00 01, [email protected] Anders Ulff, CFO, tel. +46 222-440 09, or +46 70-577 40 09, [email protected]
Co. Reg. No. 556160-4108 SE-739 30 Skinnskatteberg, Sweden Tel. +46 (0)222-44000 [email protected] www.systemair.se
Skinnskatteberg, 25 November 2015 Systemair AB (publ)
Roland Kasper Gerald Engström Chief Executive Officer Chairman of the Board
Carina Andersson Hannu Paitula Board member Board member
Board member Board member
Åke Henningsson Ricky Sten Employee Representative Employee Representative
Per-Erik Sandlund Elisabeth Westberg
Systemair is a leading ventilation company with operations in 47 countries in Europe, North America, South America, the Middle East, Asia and South Africa. The Company had sales of approximately SEK 5.9 billion in the 2014/15 financial year and has approximately 4,700 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 13 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 OMX Nordic Exchange in Stockholm since October 2007. The Group comprises about 60 companies.
We have reviewed the condensed interim financial information (interim report) for Systemair AB (publ) as per 31 October 2015 and the six-month reporting period ending on that date. The preparation and fair presentation of the interim report in accordance with IAS 34 and the Annual Accounts Act are the responsibility of the Board of Directors and the Chief Executive Officer. Our responsibility is to express our opinion of this interim report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements: ISRE 2410 "Review of Interim Financial Information Performed by the Independent Auditors of the Entity". A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. The emphasis and scope of a review differ considerably from that of an audit in accordance with International Standards on Auditing Standards (ISA) and other generally accepted auditing practices in Sweden. The procedures performed in a review do not enable us to obtain a level of assurance to become aware of all significant matters that could have been identified in an audit. As our opinion is based on a review, the level of assurance is not as high as that of an opinion expressed based on an audit.
Based on our review, nothing has come to our attention that causes us to believe that the interim report was not, in all material respects, prepared for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act, and, for the Parent Company, in accordance with the Swedish Annual Accounts Act.
Stockholm, 25 November 2015 Ernst & Young AB
Åsa Lundvall Authorised Public Accountant
| 2015 Aug–Oct |
2014 Aug–Oct |
2015 May–Oct |
2014 May–Oct |
2014/15 Nov–Oct |
2014/15 May-Apr |
|
|---|---|---|---|---|---|---|
| SEK m. | 3 mths | 3 mths | 6 mths | 6 mths | trailing 12 | 12 mths |
| Net sales | 1,624.4 | 1,554.5 | 3,187.5 | 2,948.3 | 6,121.5 | 5,882.2 |
| Cost of goods sold | -1,050.1 | -985.8 | -2,077.0 | -1,908.1 | -4,026.6 | -3,857.6 |
| Gross profit | 574.3 | 568.7 | 1,110.5 | 1,040.2 | 2,094.9 | 2,024.6 |
| Other operating income | 20.8 | 5.8 | 38.9 | 30.5 | 101.1 | 92.7 |
| Selling expenses | -348.4 | -325.3 | -683.1 | -628.9 | -1,406.9 | -1,352.7 |
| Administration expenses | -82.9 | -77.3 | -162.3 | -143.8 | -332.4 | -313.9 |
| Other operating expenses | -29.5 | -15.6 | -52.3 | -30.3 | -95.8 | -73.9 |
| Operating profit | 134.3 | 156.3 | 251.7 | 267.7 | 360.9 | 376.8 |
| Net financial items | -15.6 | 0.3 | -21.5 | 1.6 | -19.6 | 3.6 |
| Profit after financial items | 118.7 | 156.6 | 230.2 | 269.3 | 341.3 | 380.4 |
| Tax on profit for the period | -33.0 | -40.0 | -63.7 | -32.5 | -101.9 | -70.6 |
| Profit for the period 1 | 85.7 | 116.6 | 166.5 | 236.8 | 239.4 | 309.8 |
| Earnings per share, SEK 2 | 1.65 | 2.24 | 3.20 | 4.55 | 4.60 | 5.96 |
| Average number of shares 2 | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 |
1 Attributable to Parent Company shareholders.
2No dilution effect arises since the option programme in operation has been arranged by Färna Invest AB.
| 2015 Aug–Oct 3 mths |
2014 Aug–Oct 3 mths |
2015 May–Oct 6 mths |
2014 May–Oct 6 mths |
2014/15 Nov–Oct trailing 12 |
2014/15 May-Apr 12 mths |
|
|---|---|---|---|---|---|---|
| Profit for the period | 85.7 | 116.6 | 166.5 | 236.8 | 239.4 | 309.8 |
| Other comprehensive income, net after tax |
||||||
| Items that have been, or may later be, transferred to profit for the year: |
||||||
| Translation differences, foreign operations, gross before tax Translation effects of long-term loans to subsidiaries with no |
-44.2 | 1.6 | -44.4 | 45.2 | -24.1 | 65.4 |
| settlement planned | -1.4 | 1.0 | -1.6 | 4.4 | -1.4 | 4.5 |
| Tax effects from long-term loans to subsidiaries with no settlement planned |
1.3 | -0.2 | 2.4 | -1.0 | 2.2 | -1.0 |
| Items that cannot be transferred to profit for the year: |
||||||
| Revaluation of defined-benefit pensions |
- | - | - | -21.4 | -21.4 | |
| Other comprehensive income, net after tax |
-44.3 | 2.4 | -43.6 | 48.6 | -44.7 | 47.5 |
| Total comprehensive income for the period1 |
41.4 | 119.0 | 122.9 | 285.4 | 194.7 | 357.3 |
1 Attributable in entirety to Parent Company shareholders.
| SEK m | 2015-10-31 | 2014-10-31 | 2015-04-30 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 642.2 | 586.1 | 613.7 |
| Other intangible assets | 205.4 | 241.7 | 225.8 |
| Property, plant and equipment | 1,294.1 | 1,189.3 | 1,288.3 |
| Financial and other assets | 175.2 | 162.4 | 180.0 |
| Total non-current assets | 2,316.9 | 2,179.5 | 2,307.8 |
| Inventory | 1,030.5 | 965.1 | 1,029.2 |
| Current receivables | 1,323.5 | 1,224.6 | 1,165.4 |
| Cash and cash equivalents | 242.3 | 188.7 | 187.8 |
| Total current assets | 2,596.3 | 2,378.4 | 2,382.4 |
| TOTAL ASSETS | 4,913.2 | 4,557.9 | 4,690.2 |
| EQUITY AND LIABILITIES | |||
| Equity | 2,101.1 | 2,010.4 | 2,082.2 |
| Non-current liabilities, non-interest-bearing | 252.6 | 211.2 | 260.5 |
| Non-current liabilities, interest-bearing | 251.9 | 262.2 | 245.9 |
| Total non-current liabilities | 504.5 | 473.4 | 506.4 |
| Current liabilities, interest-bearing | 1,262.8 | 1,027.8 | 1,140.3 |
| Current liabilities, non-interest-bearing | 1,044.8 | 1,046.3 | 961.3 |
| Total current liabilities | 2,307.6 | 2,074.1 | 2,101.6 |
| TOTAL EQUITY AND LIABILITIES | 4,913.2 | 4,557.9 | 4,690.2 |
| 2015 Aug–Oct |
2014 Aug–Oct |
2015 May–Oct |
2014 May–Oct |
2014/15 May-Apr |
|
|---|---|---|---|---|---|
| SEK m. | 3 mths | 3 mths | 6 mths | 6 mths | 12 mths |
| Operating profit | 134.3 | 156.3 | 251.7 | 267.7 | 376.8 |
| Adjustment for non-cash items | 30.0 | 74.9 | 69.5 | 107.3 | 199.5 |
| Financial items | -5.1 | -5.2 | -9.7 | -10.1 | -20.7 |
| Income tax paid | -23.8 | -25.9 | -45.9 | -27.9 | -121.5 |
| Cash flow from operating activities before | |||||
| changes in working capital | 135.4 | 200.1 | 265.6 | 337.0 | 434.1 |
| Changes in working capital | -13.6 | -110.0 | -95.1 | -160.2 | -192.8 |
| Cash flow from operating activities | 121.8 | 90.1 | 170.5 | 176.8 | 241.3 |
| Cash flow from investing activities | -82.2 | -62.3 | -126.0 | -147.0 | -297.0 |
| Cash flow from financing activities | -3.3 | -14.6 | 25.3 | 33.6 | 110.2 |
| Cash flow for the period | 36.3 | 13.2 | 69.8 | 63.4 | 54.5 |
| Cash and cash equivalents at start of period Translation differences, cash and cash |
214.6 | 179.0 | 187.8 | 123.3 | 123.3 |
| equivalents | -8.6 | -3.5 | -15.3 | 2.0 | 10.0 |
| Cash and cash equivalents at close of period | 242.3 | 188.7 | 242.3 | 188.7 | 187.8 |
| 2015 | 2014 | |||
|---|---|---|---|---|
| May–Oct | May–Oct | |||
| Equity | Equity | |||
| attributable to | attributable to | |||
| Parent | Parent | |||
| Company | Company | |||
| SEK m. | shareholders | Total equity | shareholders | Total equity |
| Amount at beginning of year | 2,082.2 | 2,082.2 | 1,880.9 | 1,880.9 |
| Dividend | -104.0 | -104.0 | -156.0 | -156.0 |
| Comprehensive income | 122.9 | 122.9 | 285.5 | 285.5 |
| Amount at end of period | 2,101.1 | 2,101.1 | 2,010.4 | 2,010.4 |
| 2015 | 2014 | 2015 | 2014 | 2014/15 | ||
|---|---|---|---|---|---|---|
| Aug–Oct | Aug–Oct | May–Oct | May–Oct | May-Apr | ||
| 3 mths | 3 mths | 6 mths | 6 mths | 12 mths | ||
| Net sales | SEK m | 1,624.4 | 1,554.5 | 3,187.5 | 2,948.3 | 5,882.2 |
| Growth | % | 4.5 | 9.9 | 8.1 | 7.6 | 11.1 |
| Operating profit | SEK m | 134.3 | 156.3 | 251.7 | 267.7 | 376.8 |
| Operating margin | % | 8.3 | 10.1 | 7.9 | 9.1 | 6.4 |
| Profit after net fin. items | SEK m | 118.7 | 156.6 | 230.2 | 269.3 | 380.4 |
| Profit margin | % | 7.3 | 10.1 | 7.2 | 9.1 | 6.5 |
| Return on capital employed | % | 10.5 | 18.9 | 10.5 | 18.9 | 12.5 |
| Return on equity | % | 11.4 | 27.2 | 11.4 | 27.2 | 15.1 |
| Equity/assets ratio | % | 42.8 | 44.1 | 42.8 | 44.1 | 44.4 |
| Investments | SEK m | 82.2 | 62.3 | 126.0 | 147.0 | 297.0 |
| Depreciation/Amortisation | SEK m | 44.6 | 41.8 | 88.6 | 81.7 | 171.1 |
| Per share ratios | ||||||
| Earnings per share | SEK | 1.65 | 2.24 | 3.20 | 4.55 | 5.96 |
| Equity per share | SEK | 40.40 | 38.66 | 40.40 | 38.66 | 40.04 |
| Operating cash flow per share | SEK | 2.34 | 1.73 | 3.28 | 3.40 | 4.64 |
| No. of shares at end of period | No. | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 |
| 2015/16 2014/15 |
2013/14 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Aug-Oct | May-Jul | Feb-Apr | Nov-Jan | Aug-Oct | May-Jul | Feb-Apr | Nov-Jan | Aug-Oct | ||
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | ||
| Net sales | SEK m | 1,624.4 | 1,563.1 | 1,502.4 | 1,431.6 | 1,554.5 | 1,393.8 | 1,258.6 | 1,298.1 | 1,414.5 |
| Growth | % | 4.5 | 12.1 | 19.4 | 10.3 | 9.9 | 5.2 | 12.0 | 15.8 | 16.4 |
| Gross margin | % | 35.4 | 34.3 | 33.5 | 33.6 | 36.6 | 33.8 | 32.8 | 32.9 | 35.9 |
| Operating profit | SEK m | 134.3 | 117.5 | 55.1 | 54.1 | 156.3 | 111.4 | 24.6 | 48.5 | 141.8 |
| Operating margin | % | 7.3 | 7.5 | 3.7 | 3.8 | 10.1 | 8.0 | 2.0 | 3.7 | 10.0 |
| Return on capital employed | % | 10.5 | 12.4 | 12.5 | 19.8 | 18.9 | 18.1 | 17.7 | 10.3 | 12.2 |
| Return on equity | % | 11.4 | 13.0 | 15.1 | 27.4 | 27.2 | 26.8 | 24.8 | 11.5 | 14.2 |
| Equity/assets ratio | % | 42.8 | 44.9 | 44.4 | 46.4 | 44.1 | 48.3 | 47.2 | 40.2 | 37.8 |
| Basic equity per share | SEK | 40.40 | 41.61 | 40.04 | 39.64 | 38.66 | 39.37 | 36.17 | 34.10 | 33.55 |
| Basic earnings per share | SEK | 1.65 | 1.55 | 0.56 | 0.84 | 2.24 | 2.31 | 5.14 | 0.38 | 1.78 |
| 2015 | 2014 | 2015 | 2014 | 2014/15 | |
|---|---|---|---|---|---|
| SEK m. | Aug–Oct 3 mths |
Aug–Oct 3 mths |
May–Oct 6 mths |
May–Oct 6 mths |
May-Apr 12 mths |
| Net sales 1 | 21.9 | 272.7 | 45.1 | 502.7 | 948.2 |
| Cost of goods sold | - | -190.4 | - | -356.3 | -680.0 |
| Gross profit | 21.9 | 82.3 | 45.1 | 146.4 | 268.2 |
| Other operating income | 0.0 | 10.2 | 0.4 | 22.1 | 44.9 |
| Selling expenses | -13.6 | -45.6 | -28.1 | -85.3 | -182.4 |
| Administration expenses | -15.3 | -18.8 | -30.1 | -33.9 | -74.4 |
| Other operating expenses | -4.9 | -12.8 | -12.6 | -24.9 | -53.4 |
| Operating profit | -11.9 | 15.3 | -25.3 | 24.4 | 2.9 |
| Net financial items | -29.5 | 3.5 | 526.1 | 318.3 | 318.9 |
| Profit after financial items | -41.4 | 18.8 | 500.8 | 342.7 | 321.8 |
| Appropriations 2 | 9.4 | 0.2 | 25.5 | 1.6 | -6.6 |
| Pre-tax profit | -32.0 | 19.0 | 526.3 | 344.3 | 315.2 |
| Tax on profit for the period | 0.4 | -4.4 | -2.0 | -7.9 | -3.9 |
| Profit for the period | -31.6 | 14.6 | 524.3 | 336.4 | 311.3 |
1 Systemair has split the Swedish operation into two companies as of the start of the financial year. The listed company Systemair AB will be streamlined into a holding company with corporate staff and group functions. The net sales of the current financial year thus solely consist of intra-group services.
2 Accelerated depreciation, tax allocation reserve and Group contributions.
| SEK m | 2015-10-31 | 2014-10-31 | 2015-04-30 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 0.5 | 0.6 | 0.5 |
| Other intangible assets | 3.2 | 5.1 | 5.4 |
| Property, plant and equipment | 5.0 | 120.2 | 113.9 |
| Financial and other assets | 2,120.3 | 1,928.0 | 2,016.7 |
| Total non-current assets | 2,129.0 | 2,053.9 | 2,136.5 |
| Inventory | - | 152.1 | 167.4 |
| Current receivables | 1,151.3 | 908.8 | 910.8 |
| Cash and cash equivalents | - | - | - |
| Total current assets | 1,151.3 | 1,060.9 | 1,078.2 |
| TOTAL ASSETS | 3,280.3 | 3,114.8 | 3,214.7 |
| EQUITY AND LIABILITIES | |||
| Equity | 1,845.5 | 1,451.3 | 1,426.4 |
| Untaxed reserves | 12.9 | 35.2 | 38.3 |
| Non-current liabilities, provisions | - | 3.2 | 3.2 |
| Non-current liabilities, interest-bearing | 282.1 | 316.3 | 353.6 |
| Total non-current liabilities | 282.1 | 319.5 | 356.8 |
| Current liabilities, interest-bearing | 1,094.8 | 879.4 | 974.2 |
| Current liabilities, non-interest-bearing | 45.0 | 429.4 | 419.0 |
| Total current liabilities | 1,139.8 | 1,308.8 | 1,393.2 |
| TOTAL EQUITY AND LIABILITIES | 3,280.3 | 3,114.8 | 3,214.7 |
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 to acquire the shares in Traydus of Brazil, Alitis of Belarus, Menerga of Belgium and for the business of Kolektor of Slovenia may be divided as follows:
Total historical cost, less transaction costs SEK 50.0 million
| Identifiable net assets | Total |
|---|---|
| Goodwill | 37.5 |
| Buildings and land | 5.3 |
| Machinery and equipment | 10.9 |
| Financial and other current assets | 0.1 |
| Inventory | 16.5 |
| Current receivables | 20.3 |
| Other current assets | 1.2 |
| Cash and cash equivalents | 12.1 |
| Non-interest-bearing liabilities (incl. deferred tax liability) | -15.1 |
| Interest-bearing liabilities | -8.8 |
| Other operating liabilities | -30.0 |
| 50.0 |
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 -34.0 million. Non-interest bearing long term liabilities regarding estimated additional purchase price for the acquisitions above amounts to SEK 11.7 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 for fair value through the income statement based on input data corresponding to level 2 in compliance with IFRS 13. Available-for-sale financial assets are recognised at fair value based on input data corresponding to level 1 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.
Earnings before financial items and tax.
Growth is defined as the change in net sales, relative to net sales for the preceding period.
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.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.