Annual / Quarterly Financial Statement • Jun 11, 2014
Annual / Quarterly Financial Statement
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*Includes a capital gain of SEK 246 million from the sale of the Company's shareholding in Lindab.
Net sales Q4
| 2013/14 | 2012/13 | 2013/14 | 2012/13 | |
|---|---|---|---|---|
| Feb–Apr 3 mths |
Feb–Apr 3 mths |
May-Apr 12 mths |
May-Apr 12 mths |
|
| Net sales, SEK m. | 1,258.6 | 1,123.7 | 5,295.8 | 4,551.0 |
| Growth, % | 12.0 | 8.6 | 16.4 | 13.9 |
| Operating profit, SEK m. | 24.6 | 36.0 | 316.9 | 365.2 |
| Operating margin, % | 2.0 | 3.2 | 6.0 | 8.0 |
| Profit after tax, SEK million | 267.2 | 23.8 | 438.7 | 241.0 |
| Earnings per share, SEK | 5.14 | 0.46 | 8.44 | 4.63 |
| Operating cash flow per share, SEK | -0.95 | 0.30 | 4.78 | 6.61 |
We recorded organic growth for the 17th successive quarter, although on this occasion it was a slim 2.4 percent. Profit was lower than anticipated, even if our fourth quarter normally is our weakest. Continued restructuring of Menerga's production and sales companies burdened earnings for the period. We sold the Company's shareholding in Lindab during the quarter, producing a capital gain of SEK 246 million, with the result that despite everything we recorded our strongest net result of all time.
Activity in the market was again weaker than expected in the fourth quarter. The Nordic market remains buoyant, and in Western Europe sales were strong during the quarter, especially in Germany and the Netherlands. Our sales were down in Eastern Europe, particularly Russia, but other countries performed more strongly. As far as we were concerned, the North American market remained weak.
An intensive effort is in progress on restructuring Menerga in Germany. We have also acquired Menerga's sales companies in Austria and Switzerland, as well as its sales offices in Hamburg, Berlin, Hanover and, most recently, Frankfurt. We have boosted our sales via existing Menerga companies, but also via our Systemair companies. We are training Systemair personnel in the expertise needed to sell Menerga's products. Results at Holland Heating, which we acquired in March 2013, were better than expected. Our Turkish subsidiary, Systemair HSK, also made performance-related progress.
We made substantial investments in machinery at our new air handling unit factory near Istanbul, Turkey. The business made positive progress. Sales were up and the increase is expected to continue at a healthy pace. Our new development centre in Germany, and the expanded production facilities, will provide major potential opportunities to be involved in major tunnel ventilation projects. In India, we inaugurated our new 12,000 m2 production facility, which includes modern office space
and production buildings. The facility will be LEED certified in the platinum category, a standard that is totally unique in India. In Malaysia, the building of of a new 16,000 m2 factory is under completion, and occupancy has already been taken up. Building is expected to be completed during July. Here, we will manufacture fans, products for air distribution and air handling units. The plan for the facility is also to serve as a distribution centre for South-East Asia.
With a global presence through our own sales companies in 45 countries and regular deliveries to well in excess of 100 countries, we believe we are set for continued growth. Despite volatile conditions in many markets, Systemair can again report organic growth, for the 17th successive quarter. Our profitability is sharply lower than last year, and out of line with our expectations. We are clear about the reasons for this and are focusing intensively on actions to improve profitability.
We have sold our shares in Lindab. The sale brought in a total of approximately SEK 650 million, with a capital gain of SEK 246 million. The deal firms up our balance sheet and equips us with even better opportunities for further expansion of Systemair. We remain of the persuasion that attractive candidates for acquisition are available. We are also continuing to invest in production facilities, product development and marketing. It is with confidence that we are entering the year ahead and expect continued organic growth, together with further improvement in profitability.
Gerald Engström (Chief Executive Officer)
Group sales for the fourth quarter of 2013/14 totalled SEK 1,258.6 million (1,123.7), 12.0 percent up on the same period last year.
Adjusted for both foreign exchange effects and acquisitions, net sales grew 2.4 percent. This is the 17th successive quarter of organic growth, despite a weak market. Growth in acquired operations was 10.0 percent, while foreign exchange effects reduced sales by 0.4 percent during the period.
Net sales for the full year May–April 2013/14 totalled SEK 5,295.8 million (4,551.0), up 16.4 percent on the same period last year. Adjusted for both foreign exchange effects and acquisitions, net sales grew 4.2 percent. Growth in acquired operations was 14.5 percent, while foreign exchange effects reduced sales by 2.3 percent during the period.
During the fourth quarter, sales in the Nordic region were up 13 percent on the same period in the preceding year. The Danish and Norwegian markets performed the best in the region during the quarter. The acquisitions of Reftec and Menerga, which deliver to the region, were factors in the increase. Adjusted for acquisitions and foreign exchange effects, growth was 11 percent for the region.
Sales in the West European market grew 37 percent during the quarter, compared with the corresponding period in the preceding year. Adjusted for the effects of foreign exchange and acquisitions, sales rose by 3 percent. Markets that performed well in the region include Germany and the Netherlands.
| 2013/14 Feb–Apr 3 mths |
2012/13 Feb–Apr 3 mths |
Sales – change |
Of which Organic* |
2013/14 May-Apr 12 mths |
2012/13 May-Apr 12 mths |
|
|---|---|---|---|---|---|---|
| Nordic region | 318.1 | 280.9 | 13% | 11% | 1,262.6 | 1,130.2 |
| Western Europe | 481.8 | 350.7 | 37% | 3% | 1,930.7 | 1,436.0 |
| Eastern Europe & CIS | 242.3 | 262.9 | -8% | -5% | 1,215.3 | 1,144.7 |
| North America | 80.2 | 88.4 | -9% | -8% | 347.0 | 365.5 |
| Other markets | 136.2 | 140.8 | -3% | 5% | 540.2 | 474.6 |
| Total | 1,258.6 | 1,123.7 | 12% | 2% | 5,295.8 | 4,551.0 |
*Change in sales adjusted for acquisitions and foreign exchange effects.
Sales in Eastern Europe and the CIS fell 8 percent during the quarter. Adjusted for acquisitions and foreign exchange effects, sales fell 5 percent. The Russian market contracted during the quarter, while markets such as Estonia, the Czech Republic and Slovenia performed well.
Sales in the North American market during the quarter were 9 percent lower than in the same period in the preceding year. Adjusted for the effects of foreign exchange and acquisitions, sales declined 8 percent.
Sales in Other markets declined 3 percent during the quarter compared to the same period the preceding year. Adjusted for the effects of foreign exchange and acquisitions, sales rose by 5 percent. In several of the countries in the region, the currency weakened. This had negative impact on the value of sales, as measured in the Swedish currency.
Gross profit in the fourth quarter totalled SEK 413.2 million (378.3), a rise of 9.2 percent over the figure for the corresponding period last year. The gross margin fell to 32.8 percent (33.7), mainly through acquisitions of companies with lower margins and lower utilisation of capacity at certain manufacturing units.
Operating profit for the fourth quarter totalled SEK 24.6 million (36.0), down 31.6 percent on the same period in the preceding year. The operating margin was 2.0 percent (3.2). The decline in operating margin is above all a consequence of recent company acquisitions with poorer profitability, along with associated restructuring costs.
Selling and administration expenses for the quarter totalled SEK 391.8 million (350.8), a rise of SEK 41.0 million. Selling and administration expenses at acquired companies accounted for SEK 38.8 million of the increase for the quarter.
Selling expenses were charged with SEK 12.1 million (12.7) for anticipated bad debts and impairment losses on trade receivables. During the quarter, costs related to acquisitions totalled SEK 0.8 million (5.5).
Net financial items for the fourth quarter totalled SEK 245.5 million (-5.3). Net financial items include the capital gain of SEK 245.6 million from the sale of Systemair's shareholding in Lindab AB (publ). The effect of foreign exchange on long-term receivables, loans and bank balances was SEK 6.3 million (1.6) net. Interest expense for the quarter totalled SEK -6.4 million (-7.7).
Operating margin per quarter, relative to the same period in previous years
Operating profit for the financial year from May 2013 to April 2014 totalled SEK 316.9 million (365.2). The operating margin was 6.0 percent (8.0).
Selling and administration expenses for the year totalled SEK 1,467.6 million (1,267.5), a rise of SEK 200.1 million. Selling expenses for the full year were charged with SEK 33.0 million (20.2) for anticipated bad debts and impairment losses on trade receivables. Company acquisitions added SEK 171.4 million (91.2) to selling and administration expenses for the year.
Net financial items for the financial year totalled SEK 191.3 million (-34.6), including the capital gain of SEK 245.6 million from the sale of the shareholding in Lindab and
interest costs of SEK -37.4 million (-30.7).
Estimated tax for the quarter totalled SEK -2.9 million (-6.9), corresponding to an effective tax rate of 1.1 percent (22.4) based on profit after net financial items. The low tax charge is due to the fact that the capital gain from the shareholding in Lindab is not taxable.
In May 2013, Systemair completed the acquisition of Menerga GmbH, Germany, a leading European producer of swimming pool ventilation units. The company also makes extra high-efficiency comfort and ventilation equipment. Under the agreement, Systemair immediately acquired 97 percent of the company's shares, with the remaining 3 percent to be acquired no later than in December 2014. Established in 1981, Menerga has its headquarters and production facilities in Mülheim an der Ruhr, just outside Düsseldorf. Sales in 2012 totalled EUR 56.7 million, 53 percent in Germany. The company currently employs approximately 380 people.
In May 2013, Systemair entered into an agreement to acquire Reftec AS, a supplier of commercial chillers and heat pumps to the Norwegian market. Reftec, founded in 2007, has its headquarters in Trondheim and a sales office in Oslo. The company has 11 employees. The company recorded sales of NOK 34 million in 2012 and sales growth of more than 30 percent. Reftec was formerly a reseller of Systemair refrigeration products in the Norwegian market.
In September 2013, Systemair finalised the acquisition of Menerga GmbH (Austria), the reseller of Menerga's products in that country. The company, with headquarters in Salzburg, has 10 employees and reported sales of SEK 20 million in 2012. The company both sells and services Menerga's products.
In January 2014, Systemair acquired Menerga's sales companies in Hamburg, Hanover and Berlin. The companies, which bring 10 employees to the Group, sell Menerga products to a value of around EUR 3.5 million annually.
Menerga AG, Switzerland, was acquired in February 2014. The company, which sells and services Menerga's products, reported sales of around SEK 50 million in 2013 and has 15 employees.
In April 2014, Systemair acquired Menerga Frankfurt GmbH. The company, which sells and services Menerga's products, reported sales of around EUR 4.7 million in 2013 and
currently has 13 employees.
Menerga, Germany, and Reftec, Norway, were consolidated as of 1 May 2013; Menerga Austria as of 1 September 2013; Menerga's three sales companies in northern Germany as of 1 January 2014; Menerga AG, Switzerland, as of 1 March 2014; and Menerga Frankfurt as of 30 April 2014. If the other companies acquired had been consolidated as of 1 May 2013, net sales for the period May 2013 through April 2014 would have totalled SEK approximately 5,359 million. Operating profit for that period would have been approximately SEK 314 million.
Note 1 in this report contains an acquisition analysis and an account of the effects of the acquisitions on the Group's cash and cash equivalents.
In August 2012, Systemair acquired 9,150,000 shares in Lindab AB (publ). The holding represented 11.6 percent of the shares and votes in Lindab. On 3 March 2014, a limited group of institutional investors acquired the entire shareholding, after which Systemair holds no shares in Lindab. The shares were sold at a price of SEK 72, corresponding to the 30-day volume-weighted average price. The sale resulted in a capital gain of SEK 245.6 million.
Investments for the quarter, excluding divestments, totalled SEK 66.3 million (103.2), including SEK 47.9 million (51.3) in new construction and machinery. The principal investments consisted of construction of a new production facility in Malaysia and other capacity and replacement investments in production equipment. Considerations paid for subsidiaries acquired totalled SEK 16.7 million (52.3) for the quarter. Depreciation of non-current assets amounted to SEK 39.7 million (30.9).
Total investments for the financial year amounted to SEK 501.3 million (696.9) excluding divestments. Gross investments in new construction and machinery totalled SEK 354.9 million (123.9), excluding divestments. Major investments were made in the production facilities in Malaysia, India and Italy, as well as a new development centre in Germany.
The total paid for acquisitions and in additional purchase considerations in the financial year was SEK 139.7 million (164.4). Depreciation and amortisation of non-current assets totalled SEK 154.7 million (116.6) for the year.
The average number of employees in the Group was 4,142 (3,394). At the end of the period, Systemair had 4,250
employees (3,649), 601 more than in the preceding year. New employees were recruited chiefly in Russia (54), Lithuania (50) and Germany (25). Through acquisitions, 442 employees joined the Group, including 381 at Menerga, Germany, 11 at Reftec, Norway, 9 at Menerga, Austria, and 23 at Menerga's German sales companies.
In January, a number of changes took place in Systemair's Group Management. Fredrik Andersson was appointed as new Vice President Marketing, to replace Svein Nilsen, who will retire over a period. CFO Glen Nilsson is also retiring, to be replaced by Anders Ulff, who has previously served as a member of Group Management. Following these changes, the new Group Management consists of Gerald Engström, Anders Ulff, Fredrik Andersson, Roland Kasper, Mats Lund and Kurt Maurer.
Cash flow from operating activities before changes in working capital totalled SEK 19.6 million (44.1) for the quarter. Changes in working capital, mainly consisting of an increase in inventory, had negative impact of SEK -69.2 million (-28.7) on cash flow. The cash flow from investing activities totalled SEK 589.0 million (-102.1) net, above all through the sale of the shareholding in Lindab, which generated a positive cash flow of SEK 652.2 million. Net cash flow from financing activities was SEK -565.2 million (100.0), due to the repayment of loans. At the end of the period, the Group's net indebtedness was SEK 969.7 million (1,238.1). The consolidated equity/assets ratio was 47.2 percent (40.7) at the end of the period.
In April 2007, the Board of Directors of Systemair adopted three financial targets and a dividend policy.
No significant events occurred after the end of the period.
Systemair is exposed to operational and financial risks in its business. Operational risk is inherent in 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, credit risk and liquidity risk. The material risks and uncertainty affecting Systemair are described in more detail in the Company's 2012/13 Annual Report. During the period, Systemair sold its shareholding in Lindab, thereby reducing its risk exposure during the period.
Systemair's significant transactions with related parties concern ebmpapst AB and ebmpapst Mulfingen GmbH & Co. KG. Transactions with related parties are described in detail in Note 37 to the accounts in the Annual Report for the 2012/13 financial year. During the period, no change worthy of mention occurred in the scale of these transactions.
The Parent Company's sales for the quarter totalled SEK 231.5 million (227.6). Its operating profit was SEK -19.2 million (1.3).
The average number of employees in the Parent Company was 422 (421).
The Board of Directors proposes that the Annual General Meeting, to be held on 28 August 2014, should approve a dividend of SEK 1.50 (1.50) per share, plus an extra dividend of SEK 1.50, making a total of SEK 3.00 per share. As a result, dividend payments will amount to SEK 156.0 million (78.0). The proposed dividend corresponds to 36 percent (32) of net consolidated profit.
The AGM held on 29 August 2013 resolved that the nominating committee shall consist of representatives from three of the biggest shareholders by votes, as well as the Chairman of the Board.
The nominating committee comprises Gerald Engström (Chair) as representative of Färna Invest AB, Gerhard Sturm as representative of ebmpapst AB, Björn Henriksson as representative of Nordea Fonder and Lars Hansson, Chairman of the Board.
The report for the first quarter of 2014/15 will be published at 1.00 p.m. on 28 August 2014.
The Company's Annual General Meeting will be held at 3 p.m. on 28 August 2014 at Systemair Expo, Skinnskatteberg, Sweden.
The Annual Report will be available in Week 32 on our website at www.systemair.com.
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. 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 year-end report is information which 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 will be submitted for publication at 8.00 a.m. on 11 June 2014.
This year-end report has been reviewed by the Company's auditors.
Skinnskatteberg, 11 June 2014 Systemair AB (publ)
Board of Directors
For further information, please contact: Gerald Engström, CEO, tel. +46-222-44001 or +46-70-519-0001, [email protected] Lars Hansson, Chairman, tel. +46-70-895-9002, [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. +46-222-44000 Fax +46-222-44099 [email protected] www.systemair.com.
Systemair is a leading ventilation company with operations in 45 countries in Europe, North America, South America, the Middle East, Asia and South Africa. The Company had sales of approximately SEK 5.3 billion in the 2013/14 financial year and approximately 4,200 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 year-end report for Systemair AB (publ) for the period 1 May 2013–30 April 2014. The preparation and fair presentation of the year-end 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 on this year-end report based on our review.
We conducted our review in accordance with the Standard on Review Engagements (SÖG) 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 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 year-end 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, 11 June 2014 Ernst & Young AB
Åsa Lundvall Authorised Public Accountant
| 2013/14 | 2012/13 | 2013/14 | 2012/13 | |
|---|---|---|---|---|
| Feb–Apr | Feb–Apr | May-Apr | May-Apr | |
| SEK m. | 3 mths | 3 mths | 12 mths | 12 mths |
| Net sales | 1,258.6 | 1,123.7 | 5,295.8 | 4,551.0 |
| Cost of goods sold | -845.4 | -745.4 | -3,508.7 | -2,923.6 |
| Gross profit | 413.2 | 378.3 | 1,787.1 | 1,627.4 |
| Other operating income | 18.6 | 21.6 | 76.0 | 61.5 |
| Selling expenses | -314.8 | -288.8 | -1,182.8 | -1,041.4 |
| Administration expenses | -77.0 | -62.0 | -284.8 | -226.1 |
| Other operating expenses | -15.4 | -13.1 | -78.6 | -56.2 |
| Operating profit | 24.6 | 36.0 | 316.9 | 365.2 |
| Net financial items | 245.5 | -5.3 | 191.3 | -34.6 |
| Profit after financial items | 270.1 | 30.7 | 508.2 | 330.6 |
| Tax on profit for the period | -2.9 | -6.9 | -69.5 | -89.6 |
| Profit for the period | 267.2 | 23.8 | 438.7 | 241.0 |
| Attributable to: | ||||
| Parent Company shareholders | 267.2 | 23.8 | 438.7 | 241.0 |
| Non-controlling interests | 0.0 | 0.0 | 0.0 | 0.0 |
| Earnings per share, SEK1 | 5.14 | 0.46 | 8.44 | 4.63 |
| Average number of shares1 | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 |
1 At present, Systemair does not have any option programme in operation and so no dilution effect is to be taken into account.
| 2013/14 | 2012/13 | 2013/14 | 2012/13 | |
|---|---|---|---|---|
| Feb–Apr | Feb–Apr | May-Apr | May-Apr | |
| 3 mths | 3 mths | 12 mths | 12 mths | |
| Profit for the period | 267.2 | 23.8 | 438.7 | 241.0 |
| Other comprehensive income, net of tax |
||||
| Items that has been or may later be transferred to profit for the period: |
||||
| Translation differences, foreign operations |
46.6 | -0.9 | 12.1 | -56.1 |
| Hedging of net assets in foreign operations, net of tax |
- | -0.2 | - | -0.6 |
| Financial assets available for sales; |
||||
| - change in fair value | 44.2 | 52.5 | 187.9 | 57.7 |
| - transferred to profit on sale | -245.6 | -245.6 | ||
| Items that may not be transferred to profit for the period: |
||||
| Change in defined-benefit | ||||
| pensions | -4.6 | -4.6 | ||
| Other comprehensive income, | -159.4 | 51.4 | -50.2 | 1.0 |
| net after tax | ||||
| Total comprehensive income for the period |
107.8 | 75.2 | 388.5 | 242.0 |
| Attributable to: | ||||
| Parent Company shareholders | 107.8 | 75.2 | 388.5 | 242.0 |
| SEK m. | 30/04/2014 | 30/04/2013 |
|---|---|---|
| ASSETS | ||
| Goodwill | 532.5 | 457.7 |
| Other intangible assets | 250.9 | 171.7 |
| Property, plant and equipment | 1,087.7 | 813.4 |
| Financial and other assets | 100.7 | 550.9 |
| Total non-current assets | 1,971.8 | 1,993.7 |
| Inventory | 920.7 | 790.0 |
| Current receivables | 967.6 | 992.6 |
| Cash and cash equivalents | 123.3 | 98.4 |
| Total current assets | 2,011.6 | 1,881.0 |
| TOTAL ASSETS | 3,983.4 | 3,874.7 |
| EQUITY AND LIABILITIES | ||
| Equity | 1,880.9 | 1,576.0 |
| Non-current liabilities, provisions | 213.9 | 154.5 |
| Non-current liabilities, interest-bearing | 285.6 | 586.3 |
| Total non-current liabilities | 499.5 | 740.8 |
| Current liabilities, interest-bearing | 755.3 | 724.0 |
| Current liabilities, non-interest-bearing | 847.7 | 833.9 |
| Total current liabilities | 1,603.0 | 1,557.9 |
| TOTAL EQUITY AND LIABILITIES | 3,983.4 | 3,874.7 |
| 2013/14 | 2012/13 | 2013/14 | 2012/13 | |
|---|---|---|---|---|
| Feb–Apr | Feb–Apr | May-Apr | May-Apr | |
| SEK m. | 3 mths | 3 mths | 12 mths | 12 mths |
| Operating profit | 24.6 | 36.0 | 316.9 | 365.2 |
| Adjustment for non-cash items | 28.7 | 33.3 | 152.9 | 147.3 |
| Financial items | -6.6 | -7.9 | -35.0 | -27.4 |
| Income tax paid | -27.1 | -17.3 | -90.8 | -76.9 |
| Cash flow from operating activities before | 19.6 | 44.1 | 344.0 | 408.2 |
| changes in working capital | ||||
| Changes in working capital | -69.2 | -28.7 | -95.2 | -64.3 |
| Cash flow from operating activities | -49.6 | 15.4 | 248.8 | 343.9 |
| Cash flow from investing activities | 589.0 | -102.1 | 174.4 | -692.5 |
| Cash flow from financing activities | -565.2 | 100.0 | -398.2 | 364.5 |
| Cash flow for the period | -25.8 | 13.3 | 25.0 | 15.9 |
| Cash and cash equivalents at start of period | 140.1 | 86.7 | 98.4 | 91.6 |
| Translation differences, cash and cash equivalents | 9.0 | -1.6 | -0.1 | -9.1 |
| Cash and cash equivalents at close of period | 123.3 | 98.4 | 123.3 | 98.4 |
| 2013/14 May-Apr |
2012/13 May-Apr |
|||||
|---|---|---|---|---|---|---|
| Equity | Equity | |||||
| attributable to | attributable to | |||||
| Parent | Parent | |||||
| Company | Non-controlling | Total | Company | Non-controlling | Total | |
| SEK m. | shareholders | interests | equity | shareholders | interests | equity |
| Amount at beginning of year | 1,576.0 | 0.0 | 1,576.0 | 1,399.0 | 0.1 | 1,399.1 |
| Impact of change in | ||||||
| accounting policy IAS 19R | ||||||
| (net) | -5.6 | - | -5.6 | - | - | - |
| Adjusted amount at beginning | ||||||
| of year | 1,570.4 | 0.0 | 1,570.4 | 1,399.0 | 0.1 | 1,399.1 |
| Dividend | -78.0 | - | -78.0 | -65.0 | - | -65.0 |
| Acquisitions of non-controlling | ||||||
| interests | - | - | - | - | -0.1 | -0.1 |
| Comprehensive income | 388.5 | - | 388.5 | 242.0 | - | 242.0 |
| Amount at end of period | 1,880.9 | 0.0 | 1,880.9 | 1,576.0 | 0.0 | 1,576.0 |
| 2013/14 | 2012/13 | 2013/14 | 2012/13 | |||
|---|---|---|---|---|---|---|
| Feb–Apr | Feb–Apr | May-Apr | May-Apr | |||
| 3 mths | 3 mths | 12 mths | 12 mths | |||
| Net sales | SEK m. | 1,258.6 | 1,123.7 | 5,295.8 | 4,551.0 | |
| Growth | % | 12.0 | 8.6 | 16.4 | 13.9 | |
| Operating profit | SEK m. | 24.6 | 36.0 | 316.9 | 365.2 | |
| Operating margin | % | 2.0 | 3.2 | 6.0 | 8.0 | |
| Profit after net fin. items | SEK m. | 270.1 | 30.7 | 508.2 | 330.6 | |
| Profit margin | % | 21.5 | 2.7 | 9.6 | 7.3 | |
| Return on capital employed | % | 17.7 | 13.8 | 17.7 | 13.8 | |
| Return on equity | % | 24.8 | 16.1 | 24.8 | 16.1 | |
| Equity/assets ratio | % | 47.2 | 40.7 | 47.2 | 40.7 | |
| Investments | SEK m. | 63.21 | 102.1 | 477.81 | 692.5 | |
| Depreciation/Amortisation | SEK m. | 39.7 | 30.9 | 154.7 | 116.6 | |
| Per share ratios | ||||||
| Earnings per share | SEK | 5.14 | 0.46 | 8.44 | 4.63 | |
| Equity per share | SEK | 36.17 | 30.31 | 36.17 | 30.31 | |
| Operating cash flow per share | SEK | -0.95 | 0.30 | 4.78 | 6.61 | |
| No. of shares at end of period | No. | 52,000,000 | 52,000,000 | 52,000,000 | 52,000,000 |
1 Excluding non-recurring items.
| 2013/14 | 2012/13 | 2011/12 | ||||||||||
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| Apr | Nov–Jan | Aug–Oct | May–Jul | Feb–Apr | Nov–Jan | Aug–Oct | May–Jul | Feb–Apr | ||||
| Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | ||||
| Net sales | SEK m. | 1,258.6 | 1,298.1 | 1,414.5 | 1,324.7 | 1,123.7 | 1,120.6 | 1,215.7 | 1,091.0 | 1,034.9 | ||
| Growth | % | 12.0 | 15.8 | 16.4 | 21.4 | 8.6 | 8.7 | 18.4 | 20.6 | 25.0 | ||
| Gross margin | % | 32.8 | 32.9 | 35.9 | 33.2 | 33.7 | 37.0 | 36.5 | 35.8 | 35.9 | ||
| Operating profit | SEK m. | 24.6 | 48.5 | 141.8 | 102.0 | 36.0 | 89.8 | 140.9 | 98.5 | 5.6 | ||
| Operating margin | % | 2.0 | 3.7 | 10.0 | 7.7 | 3.2 | 8.0 | 11.6 | 9.0 | 0.5 | ||
| Return on capital employed | % | 17.7 | 10.3 | 12.2 | 12.7 | 13.8 | 13.1 | 13.9 | 14.3 | 14.7 | ||
| Return on equity | % | 24.8 | 11.5 | 14.2 | 14.5 | 16.1 | 14.6 | 15.9 | 16.8 | 15.7 | ||
| Equity/assets ratio | % | 47.2 | 40.2 | 37.8 | 38.6 | 40.7 | 41.4 | 39.1 | 45.2 | 45.1 | ||
| Equity per share | SEK | 36.17 | 34.10 | 33.55 | 32.47 | 30.31 | 28.86 | 28.92 | 26.97 | 26.90 | ||
| Earnings per share | SEK | 5.14 | 0.38 | 1.78 | 1.14 | 0.46 | 1.06 | 1.71 | 1.40 | -0.09 |
| 2013/14 | 2012/13 | 2013/14 | 2012/13 | |
|---|---|---|---|---|
| Feb–Apr | Feb–Apr | May-Apr | May-Apr | |
| SEK m. | 3 mths | 3 mths | 12 mths | 12 mths |
| Net sales | 231.5 | 227.6 | 1,041.7 | 946.8 |
| Cost of goods sold | -181,6 | -173.0 | -801.6 | -716.9 |
| Gross profit | 49.9 | 54.6 | 240.1 | 229.9 |
| Other operating income | 12.2 | 20.6 | 46.1 | 47.7 |
| Selling expenses | -51.9 | -48.2 | -183.3 | -165.3 |
| Administration expenses | -22.3 | -17.5 | -70.0 | -62.3 |
| Other operating expenses | -7.1 | -8.2 | -20.9 | -15.5 |
| Operating profit | -19.2 | 1.3 | 12.0 | 34.5 |
| Net financial items | 247.8 | -12.5 | 494.7 | 148.2 |
| Profit after financial items | 228.6 | -11.2 | 506.7 | 182.7 |
| Appropriations1 | -17.9 | -44.4 | 3.4 | -20.7 |
| Pre-tax profit | 210.7 | -55.6 | 510.1 | 162.0 |
| Tax on profit for the period | 7.8 | 11.9 | -0.4 | -0.1 |
| Profit for the period | 218.5 | -43.7 | 509.7 | 161.9 |
1) Accelerated depreciation, tax allocation reserve and Group contributions.
2) The relatively low effective tax rate for the Parent Company arises because a large share of net financial items consists of tax-free income such as dividends from subsidiaries and a non-taxable capital gain on shares.
| SEK m. | 30/04/2014 | 30/04/2013 |
|---|---|---|
| ASSETS | ||
| Other intangible assets | 5.4 | 4.8 |
| Property, plant and equipment | 120.9 | 129.9 |
| Financial and other assets | 1,832.6 | 2,004.7 |
| Total non-current assets | 1,958.9 | 2,139.4 |
| Inventory | 174.4 | 127.8 |
| Current receivables | 720.3 | 571.8 |
| Cash and cash equivalents | - | - |
| Total current assets | 894.7 | 699.6 |
| TOTAL ASSETS | 2,853.6 | 2,839.0 |
| EQUITY AND LIABILITIES | ||
| Equity | 1,267.8 | 892.4 |
| Untaxed reserves | 35.9 | 63.3 |
| Non-current liabilities, provisions | 3.2 | 2.8 |
| Non-current liabilities, interest-bearing | 493.3 | 743.3 |
| Total non-current liabilities | 496.5 | 746.1 |
| Current liabilities, interest-bearing | 601.9 | 664.6 |
| Current liabilities, non-interest-bearing | 451,5 | 472.6 |
| Total current liabilities | 1,053.4 | 1,137.2 |
| TOTAL EQUITY AND LIABILITIES | 2,853.6 | 2,839.0 |
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, with the exception of application of IAS 19 Employee benefits amendments, and IAS 1 Presentation of Financial Statements. However, these have not had any major impact on the Group's financial reporting.
The price paid to acquire 100 percent of the shares outstanding in Menerga in Germany, Reftec in Norway, Menerga in Austria, Menerga in Switzerland and Menerga's sales companies in Germany may be provisionally allocated as follows:
Total historical cost, less transaction costs SEK 174.6 million
| Identifiable net assets | Total |
|---|---|
| Goodwill | 82.0 |
| Brands and customer relationships | 117.4 |
| Buildings and land | 32.9 |
| Machinery and equipment | 13.0 |
| Financial and other assets | 0.5 |
| Inventory | 55.7 |
| Other current assets | 82.1 |
| Cash and cash equivalents | 30.3 |
| Non-interest-bearing liabilities (incl. deferred tax liability) | -47.3 |
| Interest-bearing liabilities | -39.2 |
| Other operating liabilities | -152.8 |
| 174.6 |
Transaction costs in the acquisition of subsidiaries totalled SEK 6.0 million, the major share of which was charged to Q4 earnings in 2012/13.
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 -139.7 million.
Brands and customer relationships have been measured at the net present value of future payment flows. The useful life of these assets has been estimated at 5-10 years.
The goodwill upon acquisition is attributable to the strong market position of the companies acquired, synergy effects expected to arise after the acquisition and the company's estimated future earning capacity.
Systemair's financial instruments consist of derivatives, trade 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 recognised at fair value via the income statement, based on input data corresponding to level 2 in IFRS 7. Available-for-sale financial assets are recognised at fair value based on input data corresponding to level 1 in IFRS 7. 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.
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