AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Systemair

Earnings Release Aug 28, 2014

2980_10-q_2014-08-28_1e9c587b-69e0-41a1-81a0-3911870cc865.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

Systemair ab INTERIM REPORT Q1 1 May – 31 July 2014

First quarter, May – July 2014

  • Net sales increased by 5 percent to SEK 1,394 million (1,325).
  • Operating profit (EBIT) totalled SEK 111 million (102).
  • The operating margin was 8.0 percent (7.7).
  • Profit after tax increased to SEK 120 million (59).
  • Earnings per share totalled SEK 2.31 (1.14).
  • Cash flow from operating activities totalled SEK 88 million (69).

Net sales Q1

EBIT Q1 SEK 111 m.

Significant events during the first quarter

  • In July, an agreement was signed to take over the assets and personnel of Airwell, a French manufacturer of air conditioning products for the commercial market.
  • Also in July, the Group acquired Menerga's sales company in the UK. The company sells and services Menerga's products.
2014 2013 2013/14
May–Jul May–Jul May-Apr
3 mths 3 mths 12 mths
Net sales, SEK m. 1,393.8 1,324.7 5,295.8
Growth, % 5.2 21.4 16.4
Operating profit, SEK m. 111.4 102.0 316.9
Operating margin, % 8.0 7.7 6.0
Profit after tax, SEK million 120.2 59.3 438.7
Earnings per share, SEK 2.31 1.14 8.44
Operating cash flow per share, SEK 1.69 1.33 4.78

Continued growth and improved profit d

In our year's first quarter, we rec operating margin of 8.0 percent, percent a year earlier. We are als report a continued organic growt percent. During the quarter we h intensively on newly acquired co are pleased to have been able, d relatively weak market, to increa margin and sales. corded an up from 7.7 so able to th, of 2 have worked ompanies. We despite a ase both

The market

As before, uncertainty prevails in the ma southern Europe and Russia. We are also political developments in Russia and Ukr cannot discern any dramatic impact on o the sanctions applied. Despite the uncer situation, we can confirm positive develo several countries in the Nordic region, W and Eastern Europe, as well as in the USA arket, especially in o monitoring raine. To date, we our business from tain market opments in Western Europe A.

Companies acquired

Systemair entered into an agreement to assets of Airwell, France, on 15 July. The includes brands, product rights, sales org leased production facilities in Tillières, ab kilometres west of Paris. The production over 36,000 m2 and employ 150 people sales organisation, the total number of e Annual sales for the company are estima million. Through the acquisition, Systema considerably more comprehensive produ conditioning for the commercial market. acquired valuably complements our Italia equipment factory that we purchased th also establish a very much larger market France and will benefit from advantages manufacturer. o take over the e acquisition ganisation and the bout 100 n facilities extend e. Including the employees is 207. ated at EUR 35 air gains a uct range in air The business an refrigeration hree years ago. We t presence in s by being a local

We also completed a complementary ac Menerga's UK sales company, which sel handling equipment. The company has 6 sales of around GBP 1.1 million. cquisition of ls and services air 6 employees and

Investments

IMOS-Systemair, our subsidiary in Slovak products for air distribution. The compan excellent results, and against that backg kia, manufactures ny has delivered round we have

started to extend and convertin same time, we are investing in and equipment and a modern p expansion is complete, we will efficient, modern premises at o manufacture and warehouse all for the European market. ng its premises. At the more efficient machinery paint shop. Once the have in all 15,000 m2 of ur disposal. The facility will l air distribution products

In Malaysia, we are nearing com m 2 factory, and occupancy has the facility, we will manufacture fans, air distribution products an plant will also act as centralised Asia. mpletion of a new 16,000 already been taken up. At e an expanded range of nd air handling units. The d warehouse for South-East

Altogether, these investments w solid base for further growth at general, our production facilities equipped. will piece together into a existing facilities. In s are both modern and well

Outlook

One of Systemair's strengths is have our own operations in 45 supply our products to well ove economic and political uncertain growth for the 18th consecutive profitability. We have used the advantage in making acquisition reasonable terms, although the requirement for restructuring. W acquisitions and investments in product development and mark that has proven effective over t factor in continuing to move us our global presence. We countries and regularly er 100 countries. Despite nty, we can report organic e quarter, and improved weaker economy to our ns of good companies on re may be a certain We are continuing to make production equipment, keting. This is a strategy the years and that will be a forward.

Gerald Engström CEO

Sales and markets

Group sales for the first quarter of 2014 1,393.8 million (1,324.7), up 5.2 percen period last year. /15 totalled SEK t from the same

Adjusted for both foreign exchange e acquisitions, net sales grew 1.8 percent. successive quarter of organic growth, de market. Growth in acquired operations w while foreign exchange effects reduced percent during the period. effects and This is the 18th espite a weak was 1.5 percent, sales by 1.9

Net sales per quarter compared with same period previous years h

Quarter Trailing 12 months

Geographic breakdown of Nordic region f Q1 sales

During the first quarter, sales in increased by 4 percent from the preceding year. Sales in Denma strongly, but sales in Norway al and foreign exchange effects di region to any material extent. the Nordic region e same period the rk in particular grew so increased. Acquisitions id not affect sales in the

Western Europe

Sales in the West European mar the quarter, compared with the the preceding year. Adjusted fo exchange and acquisitions, sale Several markets in the region p period, for example Spain, the U France and Italy declined during rket grew 7 percent during corresponding period in or the effects of foreign s declined 2 percent. erformed well during the UK and Germany. Sales in g the period.

Eastern Europe and CIS

Sales in Eastern Europe and the during the quarter. Sales in Russ local currency but declined on t kronor as a result of weakening Acquisitions had a positive effec in the region, while foreign exch negative impact of 1.3 percent. e CIS increased 7 percent sia were unchanged in ranslation into Swedish g of the Russian rouble. ct of 1.6 percent on sales hange effects had a

North America

Sales in the North American ma were 9 percent higher than in t preceding year. The American m for the rise. Acquisitions and for not affect sales in the region to arket during the quarter he same period in the market largely accounted reign exchange effects did any material extent.

2014 2013
May–Jul May–Jul Sales – O
Of which,
3 mths 3 mths change organic
Nordic region 280.6 268.9 4% 4%
Western Europe 524.8 492.7 7% -2%
Eastern Europe & CIS 329.9 308.4 7% 7%
North America 109.3 100.0 9% 9%
Other markets 149.2 154.7 -4% -3%
Total 1,393.8 1,324.7 5% 2%

Other markets

Sales in Other markets declined 4 percen quarter compared to the same period las for the effects of foreign exchange and declined 3 percent. nt during the st year. Adjusted acquisitions, sales

Sales by market 3 months 2014 (3 months 2013)

Results for the first quarter

The gross profit for the first quarter amo 471.6 million (439.2), an increase of 7.4 same period in the preceding year. The g increased to 33.8 percent (33.2). ounted to SEK 4 percent over the gross margin

Operating profit for the first quarter a 111.4 million (102.0), an increase of 9.2 same period in the preceding year. The o was 8.0 percent (7.7). amounted to SEK 2 percent over the operating margin

Selling and administration expenses totalled SEK 370.1 million (332.8), a rise million. Selling and administration expen companies accounted for SEK 18.1 millio for the quarter. for the quarter e of SEK 37.3 nses at acquired on of the increase

Selling expenses were charged with (5.9) for anticipated bad debts and impa trade receivables. During the quarter, ac costs totalled SEK 1.0 million (0.1). SEK 5.1 million airment losses on quisition-related

Net financial items for the first quart at SEK 1.3 million (-17.7). The effect of f on long-term receivables, loans and ban SEK 7.3 million net (-7.7). Interest expen totalled SEK -6.2 million (-10.4). er were in surplus, foreign exchange nk balances was nse for the quarter

Tax expense

Estimated tax for the quarter totalled SE (-25.0). The tax receipt is an effect of lo recognized as income, which were accru acquisition of companies with losses fro conducted previously. The acquired losse net tax receipt of SEK 37.7 million. Adjus K 7.5 million ss carry-forwards ued through the m operations es generated a sted for this tax

receipt, the effective tax rate fo percent (29.6) based on profit a or the quarter was 26.8 after financial items.

Operating profit per quarter, rel same period in previous years ative to the

Operating margin per quarte the same period in previous er, relative to years

Acquisitions and new ope erations

In July, Systemair reached an ag assets of Airwell, a French man conditioning products for the co acquisition includes brands, prod organisation and the leased pro Tillières, about 100 kilometres w production facilities extend ove 150 people. Including the sales number of employees is 207. A company are estimated at EUR provides Systemair with a comp conditioning products for the co greement to take over the ufacturer of air ommercial market. The duct rights, sales oduction facilities in west of Paris. The r 36,000 m2 and employ organisation, the total Annual sales for the 35 million. The acquisition prehensive range of air ommercial market.

Also in July, the Group acquired in the UK. The company, which Menerga's products, brings a to annual sales of around GBP 1.1 Menerga's sales company sells and services otal of 6 employees and million to the Group.

If the companies acquired had b May 2014, net sales for the per inclusive, would have totalled S been consolidated as of 1 riod May to July 2014, SEK approximately SEK

1,469 million. Operating profit for that p been approximately SEK 105 million. eriod would have

Note 1 in this report contains an acquisit the effects of the acquisitions on the Gro cash equivalents. tion analysis and oup's cash and

Investments, depreciation and a mortisation

Investments for the quarter, excluding d totalled SEK 92.1 million (205.3), includin million (87.9) in new construction and m investments were primarily in the produ Denmark and Malaysia. Acquisitions and considerations paid for operating subsidi 27.3 million (116.3) for the quarter. Dep current assets amounted to SEK 39.9 mi ivestments, ng SEK 32.3 machinery. The uction facilities in d additional iaries totalled SEK preciation of nonllion (37.2).

Personnel

The average number of employees in th 4,154 (3,841). At the end of the period, 4,490 employees (4,075), 415 more tha New employees were recruited chiefly i Lithuania (43) and Germany (24). Throug 261 employees joined the Group, includ France, 23 at Menerga's sales company Menerga, Austria, 18 at Menerga, Switze Menerga, UK. he Group was Systemair had an a year earlier. n Russia (73), gh acquisitions, ing 204 at Airwell, in Germany, 10 at erland, and 6 at

Cash flow and financial position

Cash flow from operating activities befo working capital totalled SEK 136.9 millio quarter. Changes in working capital, mai lower trade accounts payable and highe receivable, had an impact of SEK -49.0 m cash flow. The cash flow from financing totalled SEK 48.2 million (172.1) net. At period, the Group's net indebtedness wa million (1,455.7). The consolidated equit was 48.3 percent (38.6) at the end of th re changes in n (111.1) for the nly consisting of r trade accounts million (-42.0) on operations the end of the as SEK 991.7 ty/assets ratio he period.

Events after the close of the per iod

In August, Systemair entered into an agr acquire the Belgian sales company Cama specialises in sales of products for air co ventilation in the commercial market. It the company, based in Seneffe, 40 kilom Brussels, will report sales valued at EUR calendar year 2014. It has 22 employee includes a modern, 3,000 m2property co product display area and warehouse. reement to air, which onditioning and is estimated that metres south of 7 million for the s. The acquisition omprising offices, Through the acquisition, System considerably stronger presence expertise in commercial air cond available with Airwell, France, w which manufactures refrigeratio Systemair's existing sales comp mair establishes a in Belgium and acquires ditioning. Synergies are with Systemair AC, Italy, on equipment, and with pany in Belgium.

Material risks and uncerta ainty

Systemair is exposed to operati its business. Operational risk is i international nature of the oper and the sensitivity of the constr business cycle. The financial risk identified in its business consist borrowing and interest rate risk liquidity risk. The material risks Systemair are described in more 2013/14 Annual Report. No sig the risk situation during the per ional and financial risks in inherent in the rations, tough competition ruction industry to the ks that Systemair has t of foreign exchange risk, k, and credit risk and and uncertainty affecting e detail in the Company's nificant change occurred in iod.

Related party transaction ns

Systemair's significant transacti concern ebmpapst AB and ebm Co. KG. Transactions with relate detail in Note 35 to the account the 2013/14 financial year. Dur worthy of mention occurred in t transactions. ons with related parties papst Mulfingen GmbH & ed parties are described in ts in the Annual Report for ring the period, no change the scale of these

Parent Company

Parent Company sales for the q million (246.6) and the operatin million (9.9). uarter totalled SEK 230.0 ng profit was SEK 9.1

The average number of employ was 409 (428). yees in the Parent Company

Financial calendar

The Interim Report for the seco be published at 8.00 a.m. on 27 The interim report for the third be published at 8.00 a.m. on 5 M The report for the fourth quarte will be published at 8.00 a.m. o nd quarter of 2014/15 will 7 November 2014. quarter of 2014/2015 will March 2015. er and full year 2014/15 n 11 June 2015.

About Systemair

The Company established operations in product concept, the circular duct fan, a considerably simplified the process of in adopted the motto "the straight way", w developed from a product concept into a philosophy. Our product range has grow a broad range of fans, air handling units, distribution, air curtains, heating product equipment. 1974 with a design that stallation. We which has been a business wn strongly to span , products for air ts and refrigeration

Mission statement

Operating from the core values of simpli our business concept is to develop, man market high-quality ventilation products our business concept and with our custo aim is to be seen as a company to rely o emphasis on delivery reliability, availabil icity and reliability, ufacture and . On the basis of omers in focus, our on, with the lity and quality.

Business model

Availability is an important parameter in competitiveness, and we ensure effectiv flow of goods, with owned production u warehouse facilities and an efficient ERP modern production plants and our own s around the world, we reach out directly The business model supports stability an and today we are a leading producer an ventilation products with our own produ sales companies. terms of our ve control of our nits, centralised P system. With sales companies to our customers. nd development, d supplier of uction and own

Strategies

The following strategies create major str competitive advantages that help us to a rengths and achieve our goals.

  • Innovative product developmen product range focusing on ener handling products. nt and a broad rgy-efficient air
  • High product availability and fa efficient production, logistics an st delivery via an nd IT organisation.
  • Development and expansion of sales organisation. f Systemair's own
  • Good relationships with ventila distributors and consultants. tion contractors,
  • A highly diversified customer b vulnerability to fluctuations in t ase reduces our he economy.
  • Early presence in growth marke ets.
  • Strategy of acquisition and esta expand market shares. ablishment to

Miscellaneous

The information in this Interim R Systemair is required to disclose Swedish Securities Markets Act värdepappersmarknaden) and/o Instruments Trading Act (lagen instrument). This information is publication at 1.00 p.m. on 28 A Report is information that e in accordance with the (lagen om or the Swedish Financial om handel med finansiella to be submitted for August 2014.

This interim report has not b Company's auditor. been reviewed by the

Skinnskatteberg, 28 August 201 Systemair AB (publ) 14

Board of Directors

For further information, please c Gerald Engström, CEO, tel. +46- +46-70-519-0001, gerald.engs Lars Hansson, Chairman, tel. +4 [email protected] Anders Ulff, CFO, tel. +46-222-4 +46-70-577 40 09, anders.ulff@ contact: -222-44001 or [email protected] 46-70-895-9002, 440 09, or @sy7stemair.se

Systemair AB (publ)

Co. Reg. No. 556160-4108 SE-739 30 Skinnskatteberg, Sw Tel. +46-222-44000 Fax +46-222-44099 [email protected] www.systemair.com. weden

Systemair in Brief

Systemair is a leading ventilation co countries in Europe, North America, East, Asia and South Africa. The Com approximately SEK 5.3 billion in the approximately 4,500 employees. Sy operating profit every year since 19 founded. During the past 15 years, has averaged about 13 percent. ompany with operations in 45 South America, the Middle mpany had sales of 2013/14 financial year and ystemair has reported an 974, when the Company was the Company's growth rate

Systemair has well-established o The Group's products are marketed VEAB, Fantech, Menerga, Holland H Systemair shares have been quoted OMX Nordic Exchange in Stockholm Group comprises about 60 compani operations in growth markets. d under the Systemair, Frico, Heating and Airwell brands. d on the Mid Cap List of the m since October 2007. The ies.

Consolidated Income S Statement

2014 2013 2013/14 2013/14
M
May–Jul
May–Jul Aug–Jul May-Apr
SEK m. 3 mths 3 mths trailing 12 12 mths
Net sales 1
1,393.8
1,324.7 5,364.9 5,295.8
Cost of goods sold -922.2 -885.5 -3,545.4 -3,508.7
Gross profit 471.6 439.2 1,819.5 1,787.1
Other operating income 24.7 19.6 81.1 76.0
Selling expenses -303.6 -267.6 -1,218.8 -1,182.8
Administration expenses -66.5 -65.2 -286.1 -284.8
Other operating expenses -14.8 -24.0 -69.4 -78.6
Operating profit 111.4 102.0 326.3 316.9
Net financial items 1.3 -17.7 210.3 191.3
Profit after financial items 112.7 84.3 536.6 508.2
Tax on profit for the period 7.5 -25.0 -37.0 -69.5
Profit for the period 120.2 59.3 499.6 438.7
Attributable to:
Parent Company shareholders 120.2 59.3 499.6 438.7
Non-controlling interests 0.0 0.0 0.0 0.0
Earnings per share, SEK1 2.31 1.14 9.61 8.44
Average number of shares1 52,0
000,000
52,000,000 52,000,000 52,000,000

1 At present, Systemair does not have any opt tion programme in operation and so no dilution effect is to be e taken into account.

Consolidated Stateme ent of Comprehensive Income

2014
M
May–Jul
3 mths
2013
May–Jul
3 mths
2013/14
Aug–Jul
trailing 12
2013/14
May-Apr
12 mths
Profit for the period 120.2 59.3 499.6 438.7
Other comprehensive income,
net of tax
Items that have been, or may
later be, transferred to profit
for the year:
Translation differences, foreign
operations
46.2 -15.9 74.2 12.1
Hedging of net assets in foreign
operations, net of tax
- - - -
Financial assets available for
sale:
- change in fair value
- transferred to income
statement at sale
-
-
74.6 113.3
-245.6
187.9
-245.6
Items that cannot be
transferred to profit for the
year:
Change in defined-benefit
pensions
- -4.6 -4.6
Other comprehensive income,
net after tax
46.2 58.7 -62.7 -50.2
Total comprehensive income
for the period
166.4 118.0 436.9 388.5
Attributable to:
Parent Company shareholders
166.4 118.0 436.9 388.5
Non-controlling interests 0.0 0.0 0.0 0.0

Consolidated Balance Sheet

SEK m. 31/07/2014 31/07/20
013
30/04/2014
ASSETS
Goodwill 553.4 51
18.5
532.5
Other intangible assets 249.7 27
72.9
250.9
Property, plant and equipment 1,141.8 90
07.9
1,087.7
Financial and other assets 166.9 62
29.6
100.7
Total non-current assets 2,111.8 2,32
28.9
1,971.8
Inventory 930.0 82
29.7
920.7
Current receivables 1,014.3 1,08
81.3
967.6
Cash and cash equivalents 179.0 13
33.4
123.3
Total current assets 2,123.3 2,04
44.4
2,011.6
TOTAL ASSETS 4,235.1 4,37
73.3
3,983.4
EQUITY AND LIABILITIES
Equity 2,047.3 1,68
88.4
1,880.9
Non-current liabilities, provisions 197.1 18
83.1
213.9
Non-current liabilities, interest-bearing 315.8 71
10.5
285.6
Total non-current liabilities 512.9 89
93.6
499.5
Current liabilities, interest-bearing 818.5 84
47.8
755.3
Current liabilities, non-interest-bearing 856.4 94
43.5
847.7
Total current liabilities 1,674.9 1,79
91.3
1,603.0
TOTAL EQUITY AND LIABILITIES 4,235.1 4,37
73.3
3,983.4

Consolidated Cash Flow w Statement

2014 2013 2013/14
May–Jul May–Jul May-Apr
SEK m. 3 mths 3 mths 12 mths
Operating profit 111.4 102.0 316.9
Adjustment for non-cash items 32.4 36.8 152.9
Financial items -4.9 -7.5 -35.0
Income tax paid -2.0 -20.2 -90.8
Cash flow from operating activities bef
fore
136.9 111.1 344.0
changes in working capital
Changes in working capital -49.0 -42.0 -95.2
Cash flow from operating activities 87.9 69.1 248.8
Cash flow from investing activities -85.9 -203.5 174.4
Cash flow from financing activities 48.2 172.1 -398.2
Cash flow for the period 50.2 37.7 25.0
Cash and cash equivalents at start of pe
eriod
123.3 98.4 98.4
Translation differences, cash and cash e
equivalents
5.5 -2.7 -0.1
Cash and cash equivalents at close of p
period
179.0 133.4 123.3

Statement of Changes s in Equity – Group

2014 2013
May–Jul May–Jul
Equity Equity
attrib
butable to
attributable to
Parent Parent
Company Non-controlling Total Company Non-controlling Total
SEK m. sha
reholders
interests equity shareholders interests equity
Amount at beginning of year 1,880.9 0.0 1,880.9 1,576.0 0.0 1,576.0
Impact of change in
accounting policy IAS 19R
(net) - - - -5.6 - -5.6
Adjusted amount at beginning
of year 1,880.9 0.0 1,880.9 1,570.4 0.0 1,570.4
Comprehensive income 166.4 - 166.4 118.0 - 118.0
Amount at end of period 2,047.3 0.0 2,047.3 1,688.4 0.0 1,688.4

Key Ratios for the Gro oup

2014 2013 2013/14
May–Jul May–Jul May-Apr
3 mths 3 mths 12 mths
Net sales SEK m. 1,393.8 1,324.7 5,295.8
Growth % 5.2 21.4 16.4
Operating profit SEK m. 111.4 102.0 316.9
Operating margin % 8.0 7.7 6.0
Profit after net fin. items SEK m. 112.7 84.3 508.2
Profit margin % 8.1 6.4 9.6
Return on capital employed % 18.1 12.7 17.7
Return on equity % 26.8 14.5 24.8
Equity/assets ratio % 48.3 38.6 47.2
Investments SEK m. 85.9 203.5 477.8
Depreciation/Amortisation SEK m. 39.9 37.2 154.7
Per share ratios
Earnings per share SEK 2.31 1.14 8.44
Equity per share SEK 39.37 32.47 36.17
Operating cash flow per share SEK 1.69 1.33 4.78
No. of shares at end of period No. 52,000,000 52,000,000 52,000,000

Quarterly Key Ratios – Group

2014/
/15
2013/14 2012/13
May
y–Jul
Feb–Apr Nov–Jan Aug–Oct May–Jul F
Feb–Apr
Nov–Jan Aug–Oct May–Jul
Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Net sales SEK m. 1,39
93.8
1,258.6 1,298.1 1,414.5 1,324.7 1,123.7 1,120.6 1,215.7 1,091.0
Growth % 5.2 12.0 15.8 16.4 21.4 8.6 8.7 18.4 20.6
Gross margin % 3
33.8
32.8 32.9 35.9 33.2 33.7 37.0 36.5 35.8
Operating profit SEK m. 11
1.4
24.6 48.5 141.8 102.0 36.0 89.8 140.9 98.5
Operating margin % 8.0 2.0 3.7 10.0 7.7 3.2 8.0 11.6 9.0
Return on capital employed % 1
8.1
17.7 10.3 12.2 12.7 13.8 13.1 13.9 14.3
Return on equity % 2
26.8
24.8 11.5 14.2 14.5 16.1 14.6 15.9 16.8
Equity/assets ratio % 4
48.3
47.2 40.2 37.8 38.6 40.7 41.4 39.1 45.2
Equity per share SEK 39
9.37
36.17 34.10 33.55 32.47 30.31 28.86 28.92 26.97
Earnings per share SEK 2
2.31
5.14 0.38 1.78 1.14 0.46 1.06 1.71 1.40

Parent Company Incom me Statement

2014 2013 2013/14
May–Jul May–Jul May-Apr
SEK m. 3 mths 3 mths 12 mths
Net sales 230.0 246.6 1,041.7
Cost of goods sold -165.8 -184.3 -801.6
Gross profit 64.2 62.3 240.1
Other operating income 11.8 10.6 46.1
Selling expenses -39.7 -38.8 -183.3
Administration expenses -15.0 -14.2 -70.0
Other operating expenses -12.2 -10.0 -20.9
Operating profit 9.1 9.9 12.0
Net financial items 314.8 259.5 494.7
Profit after financial items 323.9 269.4 506.7
Appropriations1 1.4 7.4 3.4
Pre-tax profit 325.3 276.8 510.1
Tax on profit for the period -3.5 -2.9 -0.4
Profit for the period 321.8 273.9 509.7

1 Accelerated depreciation, tax allocation reserve an d Group contributions.

Parent Company Balan nce Sheet

SEK m. 31/07/2014 31/07/20
013
30/04/2014
ASSETS
Goodwill 0.8 - -
Other intangible assets 4.8 5.0 5.4
Property, plant and equipment 123.2 12
28.7
120.9
Financial and other assets 1,870.5 2,27
78.6
1,832.6
Total non-current assets 1,999.3 2,41
12.3
1,958.9
Inventory 158.4 15
58.9
174.4
Current receivables 911.8 68
89.4
720.3
Cash and cash equivalents - - -
Total current assets 1,070.2 84
48.3
894.7
TOTAL ASSETS 3,069.5 3,26
60.6
2,853.6
EQUITY AND LIABILITIES
Equity 1,591.8 1,23
39.1
1,267.8
Untaxed reserves 35.0 5
55.9
35.9
Non-current liabilities, provisions 3.2 2.6 3.2
Non-current liabilities, interest-bearing 352.1 74
47.5
493.3
Total non-current liabilities 355.3 75
50.1
496.5
Current liabilities, interest-bearing 686.7 79
95.2
601.9
Current liabilities, non-interest-bearing 400.7 42
20.3
451.5
Total current liabilities 1,087.4 1,21
15.5
1,053.4
TOTAL EQUITY AND LIABILITIES 3,069.5 3,26
60.6
2,853.6

General accounting policies and principles

Systemair applies International Financial accordance with the Swedish Annual Ac IAS 34 Interim Financial Reporting, and f RFR 2. The accounting policies and meth used in preparing the most recent Annua amendments, and IAS 1 Presentation of financial reporting. Reporting Standards (IFRS). This interim report was pr counts Act, the Swedish Financial Reporting Board's re for the Parent Company in accordance with the Swedis hods of calculation applied for the Group and Parent Co al Report, with the exception of application of IAS 19 E Financial Statements. These have not had any major im epared for the Group in ecommendation RFR 1 and h Annual Accounts Act and mpany accord with those Employee benefits mpact on the Group's

Note 1 – Acquisition analysis

The price paid to acquire 100 percent of was provisionally made up as follows: f the shares outstanding in Menerga, UK, and for the bu usiness in Airwell, France,

Total historical cost, less transaction cost ts SEK 32.7 million

Identifiable net assets Total
Goodwill 6.2
Brands and customer relationships 4.0
Machinery and equipment 21.6
Inventory 15.7
Other current assets 2.4
Cash and cash equivalents 5.5
Non-interest-bearing liabilities (incl. deferred
d tax liability)
-18.7
Other operating liabilities -4.0
32.7

Transaction costs in the acquisition of su ubsidiaries totalled SEK 1.0 million.

The total effect on cash flow from the ac consideration for prior years' acquisition cquisitions, including payment of a formerly withheld a s, amounted to SEK -27.3 million. additional purchase

Brands and customer relationships have of these assets has been estimated at 5 been measured at the net present value of future pay -10 years. yment flows. The useful life

The goodwill upon acquisition is attributa expected to arise after the acquisition an able to the strong market position of the companies ac nd the company's estimated future earning capacity. cquired, synergy effects

Note 2 – Financial instruments

Systemair's financial instruments consist for-sale financial assets, trade accounts institutions carry variable interest rates o fair value via the income statement, bas assets are recognised at fair value based liabilities are short term. For that reason, approximately to the carrying amounts. t of derivatives, trade accounts receivable, cash and ca payable, accrued supplier costs and interest-bearing lia or, in certain cases, fixed rates for a short period. Deriv sed on input data corresponding to level 2 in IFRS 7. Av d on input data corresponding to level 1 in IFRS 7. Othe , the fair values of all financial instruments are conside Systemair has not recognised any financial assets and ash equivalents, availableabilities. Liabilities to credit vatives are recognised at vailable-for-sale financial er financial assets and ered to equate liabilities net.

Definitions of key rati ios

Operating profit (EBIT)

Earnings before financial items and tax.

Growth

Growth is defined as the change in net s sales, relative to net sales for the preceding period.

Operating margin

Operating profit divided by net sales.

Profit margin

Profit after financial items divided by ne t sales.

Return on capital employed

Profit after financial income, for the trail ing 12 months (TTM), divided by average capital emplo oyed.

Capital employed

Total assets less non-interest-bearing lia abilities.

Return on equity

Profit after tax before non-controlling in non-controlling interest. terest, for the trailing 12 months (TTM), divided by ave erage equity excluding

Number of employees

The number of employees at the end of employees and paid overtime are conve the accounting period. New employees, appointments erted into full-time equivalents. s terminated, part-time

Earnings per share

Profit for the period attributable to Paren period. nt Company shareholders, divided by the average num mber of shares during the

Operating cash flow per share

Cash flow from operating activities for th he period, divided by the average number of shares du uring the period.

Equity/assets ratio

Adjusted equity divided by total assets.

Equity per share

Equity divided by the number of shares at the end of the period.

Talk to a Data Expert

Have a question? We'll get back to you promptly.