Systemair Ab · OMXSTO:SYSR
Systemair Ab — Investor Day (January 2023)
97 slides from Systemair Ab's investor day presentation, Jan 17, 2023
Slide 1: Welcome to Capital Markets Day 2023
Welcome to CAPITAL MARKETS DAY 2023
Slide 2: Capital Markets Day 2023
Capital Markets Day 2023 Skinnskatteberg January 17
Slide 3: Agenda | Welcome and Introduction
Agenda | Welcome and Introduction Roland Kasper Lee Morgan CEO Global Sustainability Manager Ralf Bergne Anders Ulff Product Area Director CFO Controls Tobias Sagström Janni Weber Product Area Director Vice President M&A Residential Ventilation Capital Markets Day 2023
Slide 4: Agenda | Capital Markets Day
Agenda | Capital Markets Day 1. Welcome and introduction of Systemair participants 2. Product presentations Residential Ventilation (Tobias Sagström) Automation and Control System (Ralf Bergne) 3. Fika, mingle and phone break 4. Presentations and Q&A Including 2 breaks 5. Bus returns to Stockholm at
Slide 5: Capital Markets Day 2023
Capital Markets Day 2023 Skinnskatteberg January 17
Slide 6: Agenda | Presentations
Agenda | Presentations • Systemair Roland Kasper • Sustainability Lee Morgan • Financial Development Anders Ulff Break with coffee • Operational Excellence Roland Kasper • Continued Growth Janni Weber Short break • Profit Improvement Roland Kasper • Strategic Focus Roland Kasper • Q&A Capital Market
Slide 7: Systemair
Systemair Roland Kasper, CEO
Slide 8: Established 1974 at HQ in Skinnskatteberg, Sweden
Established at HQ in Skinnskatteberg, Sweden 1974 Turnover NASDAQ Annual net sales in mill. OMX Nordic Exchange EUR 960 2007 Number of countries Countries Number of Countries 21 with own sales employees exported to companies 52 Own prod. facilities, 6,800 135 total book value of SEK 1.4 bn. Capital
Slide 9: Systemair | Organisation
Systemair | Organisation CEO CFO VP VP GSC VP Sales Marketing, Logistic, VP M&A Reporting ESG, HR, IT Corporate Dev to CEO Products Sourcing, Tech IT Market Area Products Manufacturing Corporate Market Area Europe and Development North America Sustainability Africa Marketing & R&D Market Area Commun
Slide 10: Systemair | Standards & Values
Systemair | Standards & Values Prioritise Simplify Trust • Take initiative • Straight Way • Clear Communication • Factual Decisions • Systematic Approach • Product Reliability • Chosen strategy • Standardized • Collective Products Responsibility Capital Markets Day 2023
Slide 11: Systemair | Brands
Systemair | Brands The Systemair brand Fantech develops, designs Frico is our brand for our Menerga is a leading spans over all our high- and markets ventilation air borne heating products. producer of AHU´s for quality ventilation solutions in North And is represented via swimming pool and products
Slide 12: Systemair | Markets
Systemair | Markets Other markets 14% North America Western Europe Eastern Europe & 11% 45% Nordic region 18% the CIS 12% Eastern Europé and CIS 15 % (17) Capital Markets Day 2023
Slide 13: Systemair | Products
Systemair | Products 29% 23% 10% 10% Air Handling Units Fans Air Distribution Residential Systems 10% 10% 8% Fire Safety Solutions Air Conditioners Airborn heating Capital Markets Day 2023
Slide 14: We create better air. Everyday. Worldwide.
We create better air. Everyday. Worldwide. COMMERCIAL INDUSTRIAL RESIDENTIAL INFRASTRUCTURE & TRANSPORT HEALTHCARE EDUCATION HOSPITALITY AND DATA CENTRE ENTERTAINMENT Capital Markets Day 2023
Slide 15: Events 2021/22 | M&A and partnerships
Events 2021/22 | M&A and partnerships SagiCofim S.P.A. Systemair to divest AC Business • Air filters for e.g., healthcare, the • Systemair and Panasonic have signed an agreement pharmaceutical industry, marine applications in which Panasonic intends to acquire the • Air distribution products Commerc
Slide 16: Events | Investments
Events | Investments Pardubice, Czech Republic Tillsonburg, Canada 2021/22 2021/22 New Factory for capacity increase, mainly AHU New factory for Recutech, production of production and Metal Production integration counterflow HR and home for new Rotor manufacturing. Maribor, Slovenia 2021/22 Ukmerge,
Slide 17: Sustainability
Sustainability Lee Morgan, Global Sustainability Manager
Slide 18: What we sell makes a difference!
What we sell makes a difference! We create better air. Everyday. Worldwide. Capital Markets Day 2023
Slide 19: Reducing buildings energy demand and CO2 emissions
Reducing buildings energy demand & CO2 emissions, while improving indoor air quality kWh IAQ CO2 Capital Markets Day 2023
Slide 20: Improving the health of both the planet and people
Lungbild överdrivet, Improving the health (Som eld för FSP), kan man byta mot of both the planet ngt annat symboliskt? and people Capital Markets Day 2023
Slide 21: Energy Recovery | What makes a difference for energy efficiency
Energy Recovery | What really makes a difference for energy efficiency • Ventilation that recovers the heat and cold in buildings – Circularity in its purest form • Our products contributed to near 2 TWh in energy savings for buildings last year – equivalent to roughly 500 000 tons CO2 emission avoi
Slide 22: EU Taxonomy | Energy efficiency equipment for buildings
EU Taxonomy | Energy efficiency equipment for buildings • Systemair is present in the economic activity called: 3.5. Manufacture of energy efficiency equipment for buildings • In Systemair’s previous financial year (2021/22) a taxonomy- eligible turnover of 42% was reported • For 2022/23 taxonomy-al
Slide 23: Our sustainability work is more than products!
Our sustainability work is more than products! Complete ESG agenda Capital Markets Day 2023
Slide 24: Sustainability | at Systemair
Sustainability | at Systemair Central and natural part of our business Our solutions reduce the energy demand from the world's buildings, while providing a healthy indoor air quality We take responsibility …improve our own …providing a sustainable in our value chain… environmental impact... workplac
Slide 25: We contribute to 10 of the SDGs
We contribute to 10 of the sustainable development goals (SDGs) Read more how we contribute to them on group.systemair.com Capital Markets Day 2023
Slide 26: Sustainability | proving that you make a difference
Sustainability | proving that you make a difference Medium High Risk Risk Low Medium Risk Risk Updated internal process in Ambitious plan in development for We have committed to Science Based progress for Human Rights Due further improving equality and Targets, to have our targets approved Diligence
Slide 27: Financial development
Financial development Stable, profitable growth Anders Ulff, CFO
Slide 28: Sales Development over 25 years
Sales Development | over 25 years 12,000 Green Deal – Double the rate of energy renovations 10,000 until 2030 – 35 million buildings 8,000 MSEK 6,000 4,000 2,000 0 Net Sales Consensus Capital Markets Day 2023
Slide 29: Financial Targets
Financial Targets >10% >30% Growth Growth,% Financial Equity/assets ratio,% position 14.0 47.9 45.5 13.1 42.5 41.7 43.4 Average annual growth in Equity/Asset ratio sales over a business cycle 10% 30% 6.4 7.1 - 4.4 17/18 18/19 19/20 20/21 21/22 Goal Goal 17/18 18/19 19/20 20/21 21/22 >10% ~40% Profit
Slide 30: Organic growth | Development R12 %
Organic growth | Development R12 % 25.0 • Stable long-term underlying organic growth. 5.3% in average over ten years 20.0 • Identified organic growth initiatives included 15.0 in local strategy meetings and budget process 10.0 • Focus on Residential, Healthcare, Schools & % 5.0 Service • Renovations
Slide 31: Profit | Adjusted EBIT and EBIT margin, R12
Profit | Adjusted EBIT and EBIT margin, R12 • Profitability over volume 1000 12% • AC Restructuring and divestment completed. 900 Improves EBIT margin by 0.4 pp 10% 800 • Lost margin in Russia 700 8.6% 8% • Organic growth initiatives on standard 600 products – economies of scale MSEK 500 6% • Centra
Slide 32: Systemair AC Divestment | Financial impact
Systemair AC Divestment | Financial impact • Enterprise value SEK 1100 M on a cash- and debt free basis • The preliminary capital gain amounts to appr SEK 450 M • Will be reported as Other operating income in the Operating profit at closing • Systemair AC will be classified as an Asset held for sale
Slide 33: Systemair AC Divestment | Pro forma figures
Systemair AC Divestment | Pro forma figures Rolling 12 months (Nov 2021 – Oct 2022) SEK million Systemair Systemair excl AC Change % External sales 10,825 10,044 -7% Adj. EBIT % 8.6% 9.0% Net debts/EBITDA 2.05 1.34 Capital Markets Day 2023
Slide 34: Status Russia | Impairment in Q2
Status Russia | Impairment in Q2 • Internal deliveries stopped 4th March -22 • Sales have gradually decreased since 2014 • Systemair will exit from Russia. Different alternatives are being evaluated • No major volume impact on individual factories within the group • By March 2023, 130 employees in 1
Slide 35: Capex and depreciations | R12
Capex and depreciations | R12 Buildings SI, CA &CZ Buildings TR, DE &FR 500 450 400 350 274 300 MSEK 250 200 150 100 50 0 Capex excl acq Depreciations Capital Markets Day 2023
Slide 36: Working capital | R12
Working capital | R12 35% • NOWC increased to SEK 3477 M (2 402) • Price impact 30% • Increased safety stocks, mainly 25% components • Actions and targets set on company level 20% • Mid-term target level NOWC/Sales <29% 15% • NOWC included in bonus scheme 10% Trade Receivables/R12 Sales Inventories/
Slide 37: Welcome to Capital Markets Day
Welcome to CAPITAL MARKETS DAY 2023
Slide 38: Operational Excellence
Operational Excellence Focus on Profitability Roland Kasper, CEO
Slide 39: Production facilities | 19 countries
Production facilities | 19 countries » Today, we own properties with a surface area 320,000 m2, with a total book value of SEK 1.4 bn « The ownership gives us a possibility to lower the energy consumption and create a better working environment by: • influencing the design for the best working envir
Slide 40: Operations strategy
Operations strategy Continuously Keep regional Implement Lean Produce key Increase level of optimize our factory set up Manufacturing components in automation/ factory and when justified principles deeper house – digitalisation in logistical by market – SPM! competiveness all our processes footprint
Slide 41: Operational Efficiency
Operational Efficiency • Internal efficiency • Ongoing Logisticial review for Europe • Manufacturing footprint – where to produce what • Reviewing multiple locations for optimized outcome • Menerga in focus for operational efficiency improvements • Extensive projects ongoing Capital Markets Day 2023
Slide 42: Operations on same Platform
12 Operations on same Platform Capital Markets Day 2023
Slide 43: Systemair Product Range
Systemair Product Range Type of Products Manufacturing Strategy BPR – Basic Product Range Produced to stock • Fans, Heating, Fire safety, ADP, Residential Platforms- Configured Products Configured to order • AHU – Geniox / Access Customized products Engineered to order • Car Park ventilation, Menerg
Slide 44: Systemair Production Model – SPM
Systemair Production Model – SPM 2.0 2.0 Combined with Digitalization SPM 2.0 Manufacturing Execution System RS production punch Quality Monitor bottlenecks machines Continuous improvements Reduce downtime Increase of 3,0 working hours Reduction of our leadtimes Increase capacity per day and work ce
Slide 45: Recutech | Counterflow Heat Exchangers
Recutech | Counterflow Heat Exchangers • 2017 - Acquisition of Recutech • The first production measuring • 2017 – Introduction of Plastic 100% of the heat exchangers Heat exhangers for leakage • 2019 – Largest producer of • By 2023 integration of Lautner aluminium counterflow heat HR wheels in produ
Slide 46: Measured Manufacturing Performance
Measured Manufacturing Performance Strong focus on margin development to support 10% EBIT target. Production footprint under review, continued actions on low performing parts of our business. • Reduction of our leadtimes • Productivity improvements • Product cost focus (value added / material /cost
Slide 47: Continued growth
Continued growth Janni Weber, Vice President M&A
Slide 48: Trends | Shaping the future of our industry
Trends | Shaping the future of our industry Mega trends Industry trends Circular economy Industry players are expected to take wider responsibility of their Shifting demographics Sustainability offerings and operations, making circularity both a business opportunity and a “ticket to play”. Supply ch
Slide 49: Drivers | Creating strong tailwind for our business
Drivers | Creating strong tailwind for our business Governments’ climate actions Converting fossil fuel powered heating sources • Green Deal (EU) • Fluctuating prices of fossil fuels • Fit for 55 (EU) • Geopolitical uncertainties • Inflation Reduction Act (US) • 10-point plan to reduce EU dependency
Slide 50: Indoor Air Quality focus
Indoor Air Quality focus Increased awareness of Indoor Air Quality’s impact on health and productivity.
Slide 51: Good indoor air enables our children to learn more, better
Good indoor air enables our children to learn more, better
Slide 52: … and us to be more productive at work
… and us to be more productive at work
Slide 53: Market | Solid underlying market growth
Market | Solid underlying market growth European construction market Global HVAC market Global HVAC Equipment market Construction market drives the HVAC …which is positively impacted by …and provides strong tailwinds for our market… legislations on climate change and focus core business and further
Slide 54: Market | Balanced positioning of Systemair
Market | Balanced positioning of Systemair Construction market - Buildings Europe We have strong position in the renovation market • Comprehensive product range 50% • Standard products in stock near customers 51% • Air handling units developed for renovation projects • Diversified customer base sinc
Slide 55: Market | Selected growth opportunities
Market | Selected growth opportunities Residential Public buildings e.g Healthcare Data center energy Replace, Retrofit ventilation w/wo school ventilation HVAC product efficient product and update heat pump product product solutions solutions solutions installed product solutions base Capital Marke
Slide 56: Growth opportunities | Residential
Growth opportunities | Residential • From ventilation product sales to solutions sales • Vast experience in residential ventilation • Increased focus on investing in competence and resources Residential ventilation w/wo • Continue to increase manufacturing capacity heat pump product solutions • Sele
Slide 57: Growth opportunities | Heat Pump focus vs AC business divestiture
Growth opportunities | Heat Pump focus vs AC business divestiture • For our Residential Ventilation and light commercial AHU range, standalone and integrated heat pump solutions will be part of our core offering in future, focusing on sizes up to ~80kW Residential ventilation w/wo heat pump product
Slide 58: Growth opportunities | Healthcare
Growth opportunities | Healthcare • Comprehensive product range to create solutions • Vast experience in supplying to Hospital projects Healthcare • The addition of SagiCofim’s range of hospital filtration HVAC product solutions complete our offering solutions • Systemair annual sales to Healthcare
Slide 59: Growth opportunities | Healthcare
Growth opportunities | Healthcare SagiCofim and Systemair – Creating a complete product offering for Hospitals Healthcare HVAC product solutions Capital Markets Day 2023
Slide 60: Growth opportunities | Service
Growth opportunities | Service • Scaling successful business from selected Group companies to more markets • Profitability Stability Growth • Create transparency in performance management • Stabilize local service organizations in selected markets Replace, Retrofit • Build Group common framework
Slide 61: Welcome to Capital Markets Day
Welcome to CAPITAL MARKETS DAY 2023
Slide 62: Profit Improvement
Profit Improvement Roland Kasper, CEO
Slide 63: Follow up | margin improvement
Follow up | margin improvement as per CMD Sep 2019 10.0 6.3 EBIT 18/19 IT & AHU casing Pricing & Manufacturing Menerga & AC TOTAL platform margin focus efficiency Factories Capital Markets Day 2023
Slide 64: Follow up | to achieve the 10% target
Follow up | to achieve the 10% target Technical Platforms Pricing and Margin Focus AHU, Controls and Fans Proactive Pricing, Margin Focus Bringing platforms to same modular Pricing in Projects based on customer needs and framework, for European factories incl added value, trainings, pricing methodol
Slide 65: Continued focus | to achieve the >10% target
Continued focus | to achieve the >10% target Technical Platforms Organic growth activities AHU, Controls and Fans Targeted efforts within selected areas Common strategy for control board, Five areas (Residential, Public buildings, Healthcare, wiring and cabling methodology, sensors Data centres, Ser
Slide 66: Strategic Focus
Strategic Focus Roland Kasper, CEO
Slide 67: Strategy | Updated
Strategy | Updated Strategic enablers Financial targets Develop people and strong relations >10% Growth Average annual growth in sales over a business cycle Attractive offer built on standardization >10% Profitability Average operating profit margin over a business cycle Efficient business setup wit
Slide 68: Develop people and strong relations
Develop people and strong relations • Being an attractive employer with an inclusive Prioritize corporate culture • Believing in an entrepreneurial drive and developing strong capabilities Simplify • Building strong relations and partnerships based on expertise and trust Trust Capital Markets Day 20
Slide 69: Attractive offer built on standardization
Attractive offer built on standardization • Maintaining an attractive offer with a broad range of quality products based on standardized platforms • Providing the most energy-efficient product solutions improving indoor air quality • Enabling connected solutions and enhancing the user experience thr
Slide 70: Efficient business setup with continuous improvement
Efficient business setup with continuous improvement • Profiting on economies of scale through efficient operations and supply chain • Evolving through efficient product development with standardization as a guiding principle • Prioritizing strong local sales presence, common processes, agility and
Slide 71: Sustainable and future-proof business
Sustainable and future-proof business • Forward-looking and improving the circularity and carbon footprint of our products kWh • Growing the service business ensuring sustainability throughout IAQ CO2 the product’s life cycle • Safeguarding a responsible business through sustainable and long-term de
Slide 72: Strong position benefiting from structural growth
Strong position benefiting from structural growth • Leveraging our multi-brand strategy with Systemair as the main brand • Maintaining resilience and growth with a global and diversified customer base • Profitable growth through organic investments and an active acquisition agenda Capital Markets Da
Slide 73: Create better air | Everyday. Worldwide.
Create better air | Everyday. Worldwide. Strategic enablers Financial targets Develop people and strong relations >10% Growth Average annual growth in sales over a business cycle Attractive offer built on standardization >10% Profitability Average operating profit margin over a business cycle Effici
Slide 74: Thank you, welcome with questions!
Thank you, welcome with questions! Capital Markets Day 2023
Slide 75: This is Systemair | Residential Ventilation
This is Systemair Residential Ventilation Tobias Sagström, Commercial Product Manager Residential Ventilation
Slide 76: Product portfolio
Product portfolio • Rotary units • Supporting system • Controls, accessories, • Counterflow units spareparts etc… • Heat pumps Capital Markets Day 2023
Slide 77: Systemair offer
Systemair offer Focus on (Energy and IAQ) • One family houses • Terraced houses • Apartments • Light commercial applications • Residential building developers - modules Single units or complete system sales New built and renovation Capital Markets Day 2023
Slide 78: Productrange
Productrange 40 BPR models 25 LPR models Capital Markets Day 2023
Slide 79: Heat pump solutions
Heat pump solutions Capital Markets Day 2023
Slide 80: Heat pump | SAVE unit
Heat pump | SAVE unit • Ventilation • Heat pump + Tap water tank • Outdoor unit Capital Markets Day 2023
Slide 81: All In One | Genius
All In One | Genius • Ventilation • Heat pump module • Distribution of hot water - Tap water - Air heating/ cooling Capital Markets Day 2023
Slide 82: Future | Heat pump and SAVE unit
Future | Heat pump and SAVE unit Solar Panels • Complete Outdoor installation with R290 (Propane), low GWP (3) • Only water connection to house, no refrigerants indoors • Connection to solar panels possible Capital Markets Day 2023
Slide 83: Unit Controls
Unit Controls Capital Markets Day 2023
Slide 84: Control platform | Strategy forward
Control platform | Strategy forward CONNECT CLOUD SAVE CONNECT USB-C WIFI Capital Markets Day 2023
Slide 85: SAVE | CONNECT 2.0
SAVE | CONNECT 2.0 SAVE Device CONNECT End-user Integration open API • Amazon Alexa • One Account – multiple units CONNECT CLOUD • Google Home, … • E-purchases from Systemair • Open API for 3rd prties 3rd party Systems integrations Professional Systemair • BMS Users • Technical Support • Contacts to
Slide 86: Systemair | HOME
Systemair | HOME (Filter portal Germany and Sweden) End-user • Filter sales from Systemair Capital Markets Day 2023
Slide 87: Summary | Residential Ventilation
Summary | Residential Ventilation Best Product range for new build Direct Filter sales and renovation! Eurovent / passive house Connectivity (API) certfication Complete system sales Building management system Capital Markets Day 2023
Slide 88: Thank you, welcome with questions!
Thank you, welcome with questions! Capital Markets Day 2023
Slide 89: This is Systemair | Automation and Control System
This is Systemair Automation and Control System Ralf Bergne , Product Area Director Control Systems
Slide 90: Systemair Control platform | In-house
Systemair Control platform | In-house Systemair Access common platform designed and developed for commercial ventilation applications • Shorten time to market • In-house competence for optimal product fit • Unique Platform ownership (hardware and software) • Enhanced HVAC functionality • Create outs
Slide 91: Control platform | Commercial air-handling units
Control platform | Commercial air-handling units; Geniox and Topvex portfoilo Systemair Access common platform designed and developed for commercial ventilation applications • Small footprint • Plug & Play • Systemair “in-house” developed all-in-one configurable software • Support wide range of devi
Slide 92: Control platform | Commercial air-handling units
Control platform | Commercial air-handling units; Geniox and Topvex portfoilo Systemair Access common platform designed and developed for commercial ventilation applications Easy to install, configure and operate Broad suite of ventilation functionality Energy efficient operation User friend
Slide 93: Control platform | Industrial applications
Control platform | Industrial applications • Siemens Climatix designed for light and industrial HVAC applications • Menerga in-house developed software for energy efficient ventilation operation and easy usability • Functional software applications built on validated application libraries for flexib
Slide 94: Control platform | Data Centre Cooling Range
Control platform | Data Centre Cooling Range • Siemens Climatix designed for light and industrial HVAC applications • Data Centre Cooling in-house developed software for energy efficient operation and easy usability • Functional applications built on validated application libraries for flexibility a
Slide 95: Control platform | Strategy forward
Control platform | Strategy forward Technologies Digitalization Harmonized development Application software • Control cabinets • Enabler and differentier for increased competivness, • Wiring and cabling methodology addressing innovation and product uniqueness • Common portfolio for peripheral contro
Slide 96: Control platform | Business Benefits
Control platform | Business Benefits A Complete Offering Market values with Systemair Control platforms • Strengthens our commercial product offering • Meeting market requirements • Increased serviceability for project and market specific requirements • Shorten time to market • In-house competence c
Slide 97: Thank you, welcome with questions!
Thank you, welcome with questions! Capital Markets Day 2023